DAP: Seller delivers goods to the destination (current standard); DDU: Outdated term with identical responsibilities to DAP but less aligned with modern trade rules.

Mar 21st,2025 457 Views

Comparison Aspect	DAP (Delivered At Place)	DDU (Delivered Duty Unpaid)
Incoterms® Status	Valid under Incoterms® 2010/2020 (replaces DDU).	Replaced by DAP in Incoterms® 2010 (outdated but still used in older contracts).
Core Responsibility	Seller delivers goods to the buyer’s specified destination (e.g., warehouse) and covers transport costs/risk until arrival.	Seller delivers goods to the buyer’s destination, covers transport costs/risk until arrival, but does not pay import duties/taxes.
Risk Transfer	Risk transfers to buyer when goods are ready for unloading at the destination.	Risk transfers to buyer upon delivery at the destination (same as DAP in practice).
Cost Liability	Seller pays: - All transport costs to the destination. Buyer pays: - Import duties/taxes - Unloading costs.	Seller pays: - All transport costs to the destination. Buyer pays: - Import duties/taxes - Unloading costs.
Customs Clearance	Buyer handles import clearance.	Buyer handles import clearance.
Unloading	Buyer responsible for unloading.	Buyer responsible for unloading.
Transport Mode	Any mode (e.g., sea, air, road).	Any mode (same as DAP).

Key Difference Summary

Term Validity:

DAP: Current and recommended for use in international contracts.
DDU: Obsolete but may still appear in legacy agreements.

Liability Scope:

Both terms require the seller to deliver goods to the destination and cover transport costs/risk until arrival.
DAP explicitly aligns with modern trade practices, while DDU lacks updates for newer logistics scenarios.

Practical Impact:

For new contracts, use DAP to ensure clarity and compliance with Incoterms® standards.
If encountering DDU in old agreements, treat it as equivalent to DAP but verify contract specifics.

Use Case Example

DAP: A German exporter ships machinery to a French customer’s factory, covering all transport costs but leaving import taxes to the buyer.
DDU (Historical): A U.S. supplier sends equipment to a Mexican warehouse, paying shipping costs but requiring the buyer to handle customs.

What is The Difference Between CIF and DDP?

What is The Difference Between DAP and DDP?

Shipping From China To America

Transport Route: Shipping From China To America

Transport Method: Sea Freight
Air Freight

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International Trade Terms

What is The Difference Between DAP and DDU?

Key Difference Summary

Term Validity:

Liability Scope:

Practical Impact:

Use Case Example