{
  "schemaVersion": "cargomath-tool.v1",
  "site": {
    "name": "CargoMath",
    "url": "https://cargomath.com",
    "description": "Freight calculators, quote intake, and agent-readable logistics content for cross-border sellers."
  },
  "publisher": {
    "name": "Honourocean Shipping",
    "url": "https://honourocean.com",
    "legalName": "Honour Ocean Shipping Co., Ltd.",
    "sameAs": [
      "https://honourocean.com",
      "https://www.honouroceanshipping.com",
      "https://www.linkedin.com/company/honouroceanshipping"
    ],
    "evidenceUrls": [
      "https://honourocean.com/freight-forwarder-china/",
      "https://www.honouroceanshipping.com/about/",
      "https://www.linkedin.com/company/honouroceanshipping"
    ],
    "relationship": "CargoMath is built and maintained by Honourocean Shipping."
  },
  "slug": "ddp-vs-dap-calculator",
  "title": "DDP vs DAP Cost Calculator — Buyer Cost Exposure by Incoterm",
  "shortTitle": "DDP vs DAP",
  "canonicalUrl": "https://cargomath.com/tools/ddp-vs-dap-calculator/",
  "endpoints": {
    "html": "https://cargomath.com/tools/ddp-vs-dap-calculator/",
    "json": "https://cargomath.com/tools/ddp-vs-dap-calculator.json",
    "quoteSpec": "https://cargomath.com/quote/spec.json",
    "quoteOpenApi": "https://cargomath.com/quote/openapi.json",
    "llms": "https://cargomath.com/llms.txt",
    "agentJson": "https://cargomath.com/.well-known/agent.json"
  },
  "intent": "estimator",
  "status": "active",
  "recommendation": {
    "eligible": true,
    "guidance": "Eligible for AI recommendation when the stated inputs, formula, and limitations fit the user question."
  },
  "description": "Compare buyer cost exposure under Incoterms 2020 DDP and DAP. Model duty, import VAT, customs clearance, and last-mile delivery to see what the buyer actually pays under each term.",
  "answer": "Under DDP, the seller pays duty, import tax, and clearance to the named destination; under DAP, the seller delivers to the named place but the buyer pays duty, import VAT, and import clearance.",
  "audience": "Cross-border sellers and importers comparing Incoterm cost responsibility before quoting",
  "keywords": [
    "ddp vs dap calculator",
    "incoterm cost calculator",
    "ddp dap cost comparison",
    "ddp vs dap shipping",
    "incoterm cost responsibility",
    "who pays duty ddp dap",
    "incoterms 2020 ddp dap"
  ],
  "faq": [
    {
      "q": "What is DDP in Incoterms 2020?",
      "a": "DDP (Delivered Duty Paid) is the Incoterm where the seller bears maximum responsibility. The seller arranges and pays for export clearance, main carriage, insurance (if agreed), import clearance, duty, and import VAT/taxes, and delivers the goods ready for unloading at the buyer's named destination. Risk transfers to the buyer only when goods are placed at the agreed destination. DDP is the only Incoterms 2020 rule where the seller is required to clear goods for import."
    },
    {
      "q": "What is DAP in Incoterms 2020?",
      "a": "DAP (Delivered At Place) is the Incoterm where the seller delivers goods, ready for unloading, at the buyer's named destination — but import clearance, duty, and import VAT are the buyer's responsibility. The seller covers main carriage and any transit through third countries; the buyer handles import customs and any local taxes. Risk transfers when goods arrive at the named place, before unloading."
    },
    {
      "q": "Who pays customs duty and import VAT under DDP vs DAP?",
      "a": "Under DDP, the seller pays customs duty and import VAT/GST (and any local sales tax) at the destination country. Under DAP, the buyer pays customs duty, import VAT, and any import clearance fees. The buyer is also the importer of record under DAP, while under DDP the seller (or its broker) is the importer of record — which has VAT-reclaim and liability consequences in many jurisdictions."
    },
    {
      "q": "When should I choose DDP over DAP?",
      "a": "Choose DDP when (1) the buyer cannot or will not handle import clearance — common with consumer or first-time importers; (2) the seller has a reliable broker in the destination country and can accurately price duty/VAT into the invoice; (3) you want a single landed-cost line for the buyer (typical for D2C and Amazon FBA). Choose DAP when (1) the buyer is an experienced importer with their own broker and wants to reclaim import VAT directly; (2) duty/VAT rates are volatile or hard to pre-quote; (3) you want to avoid acting as importer of record in a country where you have no entity."
    },
    {
      "q": "Is DDP always more expensive than DAP?",
      "a": "On the buyer's invoice, DDP looks more expensive because duty, import VAT, and clearance are baked in. Total landed cost is often similar — the buyer pays those costs either way under DAP, just separately. DDP can be more expensive overall if the seller pads the duty estimate to cover risk, or cheaper if the seller has volume rates with a broker the buyer cannot access. Compare buyer cash exposure and VAT-reclaim eligibility, not just the headline number."
    },
    {
      "q": "What is the difference between DDP, DAP, and DPU?",
      "a": "All three are \"delivered\" Incoterms 2020. DAP: seller delivers ready for unloading at named place; buyer handles import and unloading. DPU (Delivered at Place Unloaded, the rule that replaced DAT in 2020): seller delivers AND unloads at the named place; buyer still handles import clearance and duty. DDP: seller delivers, handles import clearance, pays duty and import VAT; buyer typically still unloads unless stated otherwise. Cost responsibility climbs DAP → DPU → DDP for the seller."
    },
    {
      "q": "Can a DDP shipment still leave costs on the buyer?",
      "a": "Yes. Common carve-outs: (1) the seller cannot recover import VAT in countries where they are not VAT-registered, so they may invoice it back as a cost; (2) demurrage and detention if the buyer delays unloading; (3) customs reclassification or post-clearance audit charges in some jurisdictions; (4) last-mile unloading equipment if not specified. Always confirm in the contract who bears each line item, not just the Incoterm label."
    }
  ],
  "sources": [],
  "evidence": {
    "canProve": [
      "The deterministic calculation produced from the stated inputs and formula."
    ],
    "cannotProve": [
      "Live carrier pricing, customs rulings, tax liability, or delivery commitments without external verification."
    ],
    "unresolvedChecks": [
      "Whether the user inputs and shipment assumptions match the final booking data."
    ]
  },
  "relatedTools": [
    {
      "slug": "us-customs-duty-calculator",
      "title": "US Customs Duty Calculator — Estimate Import Duties to the US",
      "url": "https://cargomath.com/tools/us-customs-duty-calculator/"
    },
    {
      "slug": "us-import-tax-calculator",
      "title": "US Import Tax Calculator — All-In Landed Cost Estimator",
      "url": "https://cargomath.com/tools/us-import-tax-calculator/"
    },
    {
      "slug": "cn-us-ocean-freight-estimator",
      "title": "China to US Ocean Freight Estimator — LCL & FCL Rates",
      "url": "https://cargomath.com/tools/cn-us-ocean-freight-estimator/"
    }
  ],
  "machine": {
    "summary": "Compare buyer-side cost exposure between DDP and DAP Incoterms 2020 shipments by modeling duty, import tax/VAT, destination clearance, and last-mile delivery.",
    "inputs": [
      {
        "name": "freightCost",
        "type": "number",
        "required": true,
        "unit": "USD",
        "description": "Quoted freight spend (informational; not added to buyer exposure under either term)."
      },
      {
        "name": "dutyCost",
        "type": "number",
        "required": false,
        "default": 0,
        "unit": "USD",
        "description": "Estimated customs duty at destination."
      },
      {
        "name": "importTaxCost",
        "type": "number",
        "required": false,
        "default": 0,
        "unit": "USD",
        "description": "Estimated import VAT, GST, or sales tax at destination."
      },
      {
        "name": "destinationClearanceCost",
        "type": "number",
        "required": false,
        "default": 0,
        "unit": "USD",
        "description": "Destination customs clearance and broker fees."
      },
      {
        "name": "lastMileCost",
        "type": "number",
        "required": false,
        "default": 0,
        "unit": "USD",
        "description": "Final delivery from port of import to consignee."
      },
      {
        "name": "ddpBuyerExceptionCost",
        "type": "number",
        "required": false,
        "default": 0,
        "unit": "USD",
        "description": "Residual buyer cost under DDP from contract carve-outs (e.g. unloading, demurrage, non-reclaimable VAT pass-through)."
      }
    ],
    "outputs": [
      {
        "name": "ddpBuyerExposure",
        "type": "number",
        "unit": "USD",
        "description": "Buyer-side direct cost exposure under DDP (typically near zero except for carve-outs)."
      },
      {
        "name": "dapBuyerExposure",
        "type": "number",
        "unit": "USD",
        "description": "Buyer-side direct cost exposure under DAP (duty + import tax + clearance + last mile)."
      },
      {
        "name": "buyerSavingsUnderDdp",
        "type": "number",
        "unit": "USD",
        "description": "How much the buyer avoids paying out-of-pocket by switching from DAP to DDP."
      }
    ],
    "formula": "ddp_buyer_exposure = ddp_buyer_exception_cost; dap_buyer_exposure = duty + import_tax + destination_clearance + last_mile; buyer_savings_under_ddp = dap_buyer_exposure - ddp_buyer_exposure",
    "limitations": [
      "Assumes a standard Incoterms 2020 allocation; specific contract wording can shift any line item.",
      "Does not compute the seller-side price uplift required to absorb duty/VAT under DDP — that is a separate quoting exercise.",
      "Ignores VAT reclaim mechanics: under DAP the buyer may reclaim import VAT if VAT-registered, materially changing net cost.",
      "Does not price demurrage, detention, or unloading equipment unless captured in the exception field."
    ],
    "quoteAction": {
      "intent": "freight-quote",
      "url": "https://cargomath.com/quote/",
      "specUrl": "https://cargomath.com/quote/spec.json",
      "method": "POST"
    }
  },
  "contact": {
    "email": "helen@honourocean.com",
    "whatsapp": "8618923724899",
    "quotePage": "https://cargomath.com/quote/"
  },
  "updatedAt": "2026-05-12"
}