How to Choose Between DDP and DAP

Before determining which party will handle the payment of duty and tax, it’s important to understand the definitions of DDP and DAP, along with their advantages and disadvantages.

Before completing your sale to an international customer, it’s essential to clarify who will be responsible for managing duties and taxes.

What does DAP mean?

Delivered At Place (DAP): the duty and tax will be paid by the recipient when it arrives in the destination country

DAP

DAP is a cost-effective option for sellers, allowing you to offer more competitive pricing on your website and eCommerce platforms. However, it’s essential to clearly communicate to customers that they are responsible for paying any applicable duties and taxes upon delivery to prevent any issues.

Pros	Cons
More affordable for the seller	Customers may be shocked by customs fees
Easier costing computation for sellers	May lead to additional delays
	Customer may refuse to pay the import fee and cause additional return fee to shipper.

What does DDP mean?

Delivery Duty Prepaid (DDP): the duty and tax will be paid by the shipper. Spaceship will charge back the shipper when we receive the tax invoice from the appointed carrier. Typically, the cost will be issued in 3 to 4 weeks time after delivery.

DDP

DDP offers a significantly faster and more streamlined shipping experience for both the seller and the customer. Since import duties and taxes can only be precisely calculated once the shipment reaches customs, you’ll receive the final charges after delivery. Most express couriers apply an additional surcharge for DDP, which you can review in advance before choosing your carrier. To minimise DDP handling fees, consider using a standard shipping option like Spaceship Air.

Pros	Cons
Reduces risk of product abandonment, poor product reviews, customer complaints, and/or return-shipping fees	Couriers can take on customs clearance on your behalf—for a fee. This can be expensive, or be counted as a percentage of the product price
Ensures that your shipment will clear customs and make it to your buyer with better customer experience	More risk involved for the seller when clearance is delayed, storage is needed, or goods are damaged in transit

Be aware of de minimis value

Some countries establish a de minimis value—a tax-free threshold for imported parcels. Shipments valued above this threshold are subject to higher import taxes, which directly affects how many items and at what total value sellers can ship tax-free.

Be aware of the selected courier restrictions

Express companies such as FedEx, UPS, and DHL provide flexibility in using either DAP or DDP. However, when considering standard shipping options like Spaceship Air and Ninja Van, most destinations typically support only DDP.

Include DDP fee in your product price

If you choose to offer DDP, you can offset some of the costs by including a portion of tax in the price of a product, and another portion in your shipping fees. This distribution lessens the perceived added impact for customers. For more information, you can refer to the additional surcharge.

Set clear shipping terms

You could collect your DDP fee from the customers, but make sure to tell them why they’re paying more. You could include a note at checkout, on their purchase slip, or in a FAQ section to explain that the added fee ensures safe and timely parcel delivery.

As for DAP, please get your customers’ acknowledgment and consent for those extra fees before processing their orders. They may feel bad about paying extra, but knowing they’re doing business with an honest online seller is reassuring for them.

Last Updated: 2 Sep 2025