DAP vs DDP for China–USA Shipping: Who Handles Import Clearance and Costs?
DAP and DDP are Incoterms® rules that allocate certain delivery tasks, costs and risks between seller and buyer. They do not automatically tell you every freight charge, define product admissibility or guarantee customs release. Name the delivery place and use the agreed rule version in the sales contract and transport instructions.
DAP in plain language
Under DAP, the seller arranges delivery to the named place, ready for unloading; the buyer generally handles import clearance and associated duties and taxes. Confirm who books the customs broker, who supplies importer details and what happens if clearance or delivery is delayed.
DDP in plain language
Under DDP, the seller takes on the broader responsibility of arranging delivery and import formalities, including applicable import duties and taxes, to the named place. This can be complex where the seller cannot act as importer or meet local tax and customs requirements. Verify who will legally be importer of record and how charges are documented.
Ask what “door to door” actually includes
A quote may use “door-to-door” as a service description without defining the Incoterm or who is importer. Ask whether customs brokerage, duty and tax, residential delivery, liftgate, appointment, inside delivery and remote-area charges are included. Get exclusions and the delivery point in writing.
Remember importer responsibility
CBP says the importer remains responsible for compliance even when using a customs broker. A service arrangement should not obscure who provides accurate entry information or who answers customs questions. Do not agree to undervalue goods or misstate the importer.
Use the written contract
Specify the named destination, rule and version, cargo facts, payer for each item, customs role and process for exceptions. Consult a customs professional or trade counsel for complex transactions, especially when the buyer or seller’s ability to import is uncertain.
Before you request a quote
- Name the exact delivery place and Incoterms version
- Confirm who is importer of record
- Separate freight, brokerage, duties and taxes
- List door-delivery accessorials and exclusions
- Document how exceptions and customs holds are handled
Official references
- ICC Academy: DAP or DDP Incoterms 2020
- CBP: Do I need a customs broker?
- CBP: Foreign company exporting to U.S.