The main difference between DDP and DAP shipping to the Philippines is responsibility for import clearance and its costs. Under DDP, the seller handles these obligations, including applicable import duties and taxes. Under DAP, the buyer handles them. Both terms require the seller to arrange transport to an agreed destination.
Before accepting either offer, ask who will be named as the importer, which delivery address is covered, and what documents you will receive. This guide focuses on commercial shipments and the decisions to settle with your supplier before cargo leaves origin.
DDP vs DAP: responsibilities at a glance
DDP means Delivered Duty Paid; DAP means Delivered at Place. The comparison below summarizes the normal allocation under Incoterms® 2020. See ICC Academy's DAP and DDP explanation for the delivery and clearance principles behind these rules.
Responsibility | DDP | DAP |
Export and transit customs formalities | Seller | Seller |
Transport to the named destination | Seller | Seller |
Import clearance and its costs | Seller | Buyer |
Applicable import duties and taxes | Seller | Buyer |
Normal transfer of cargo risk | At the agreed destination, before unloading | At the agreed destination, before unloading |
Unloading at the delivery point | Buyer; check whether carriage already includes the cost | Buyer; check whether carriage already includes the cost |
Obligation to obtain cargo insurance | Neither party is required to insure for the other | Neither party is required to insure for the other |
This table is a starting point. Buyer failures to provide required assistance, clear goods under DAP, or give required notices can affect costs and risk before normal delivery. Record any agreed changes to the standard allocation explicitly.
Consult the DAP and DDP provisions in the ICC rules for any mode of transport for the detailed obligations, including assistance, unloading costs, insurance, and exceptions to normal risk transfer.
Name the delivery point precisely
Write the chosen rule, a specific delivery point, and the version in the sales agreement. For example, use “DAP [warehouse address and receiving bay], Valenzuela City, Philippines, Incoterms® 2020” with the actual address filled in. A quote saying only “DAP Manila” leaves too much room for disagreement.
Confirm truck access, receiving hours, unloading equipment, and the contact authorized to accept delivery. If the offer ends at a terminal, ask the forwarder to check the appropriate rule against how cargo is actually handed over. Port arrival is not automatically warehouse delivery.
As ICC's introduction to Incoterms® 2020 explains, these rules allocate delivery tasks, costs, and risk. They do not determine ownership transfer, payment terms, or every remedy for delay. Include those matters separately in the contract.
Confirm the Philippine importer before accepting DDP
A seller's promise to pay the import bill does not establish its ability to complete local formalities. ICC's guidance on national regulatory barriers highlights why destination-country requirements can make DDP difficult for foreign sellers. Where the seller cannot carry out those obligations, consider DAP with a buyer who can manage import clearance.
For Philippine shipments, the Bureau of Customs importation guidelines direct importers to obtain the appropriate accreditation before transacting with BOC. The AMO requirements distinguish regular and non-regular importer arrangements and separately list customs broker registration requirements.
If a provider mentions an “importer of record,” ask it to identify the actual entity that will appear as importer in the goods declaration. Confirm that entity's role, authority, and applicable registrations with the broker. Do not treat the phrase as proof that a compliant arrangement already exists.
Request the proposed importer's legal name and its relationship to the buyer and seller.
Confirm who appoints the customs broker, signs authorizations, and supplies accurate product and transaction details.
Ask who will obtain required permits and whether they cover the named entity and actual goods.
Agree who pays the assessment and who receives the declaration, assessment, payment records, and release documents.
Resolve any request to use your company's name before booking, including the responsibilities that come with that role.
A broker's role in processing clearance should not be confused with the identity of the importer. Do not assume a freight forwarder becomes the importer simply because it arranges transport or advances charges. Have the proposed arrangement checked before dispatch.
DDP does not remove product permits or customs checks
BOC's guidance on regulated and restricted goods explains that regulated imports need the applicable permissions from the responsible agency. Paying the supplier for DDP delivery does not waive those requirements or make prohibited goods importable.
Before committing to a shipment, ask for a product-by-product permit review. Record the document owner, application status, validity, and latest date needed. For cosmetics, use our Philippine cosmetics import guide to prepare the FDA questions for your shipment.
Keep the invoice, packing list, bill of lading or airway bill, and any applicable origin evidence and permits consistent. BOC's importation process includes document review, possible inspection, and assessment. Neither shipping term guarantees release without examination or a fixed clearance time.
Check what an “all-in” quotation actually covers
Use a written comparison before choosing between offers. Ask the supplier or forwarder to mark each item included, excluded, estimated, or chargeable only when triggered. Record the currency, validity, and supporting assumptions.
Item to confirm | Question to send with your quote request |
Delivery scope | Does the price reach our exact receiving point, and what access or waiting limits apply? |
Clearance services | Which broker and destination agent are involved, and which processing services are covered? |
Import taxes | Does the offer include applicable duty, import VAT, excise, and other assessed charges? |
Assessment changes | Is the amount fixed or an estimate, and who funds and bears any difference? |
Destination handling | Which terminal, CFS, release-document, inspection-movement, and handling charges are included? |
Delay costs | What free time applies, who receives notices, and how will responsibility for extra charges be decided? |
Unloading and insurance | What equipment and cover are arranged, and has either cost already been included? |
Records after release | Which declaration, assessment, payment, and delivery records will we receive? |
If an offer is labelled “DDP excluding VAT,” ask for clarification before accepting it: a tax exclusion changes the standard allocation. Reconcile the sales agreement with the forwarder's service quote so the same charge is not omitted from both or counted twice.
For the amounts behind the budget, read our import duties, taxes, and landed-cost guide. For container options and local handling questions, see the LCL vs FCL shipping comparison.
A shipment example: the same destination, different tasks
The following is a fictional planning example, not an Upturn client case or quotation. A Philippine distributor is ordering cartons of non-regulated warehouse supplies for delivery to a specified receiving bay in Valenzuela City. It asks the supplier for DAP and DDP offers using the same cargo and destination.
Reviewing the DAP offer
The distributor adds a separate clearance-and-tax budget to its comparison and gives its broker the draft documents before booking. It agrees with the supplier's destination agent how release will be confirmed and delivery scheduled. The receiving team reserves unloading equipment for the agreed arrival window.
Reviewing the DDP offer
The distributor asks the supplier to identify its proposed Philippine importer and clearance provider. It requests written confirmation of the tax scope and the documents available after release. If the supplier cannot explain the importer arrangement, the distributor pauses acceptance until that gap is resolved.
The decision is not simply which headline price is lower. In this example, compare the total buyer outlay, the work each party must perform, and the evidence supporting the clearance plan. Do not count a duty estimate twice when it is already included in the supplier's price.
Who pays if clearance or delivery is delayed?
Start with the cause, the named delivery point, and each party's obligations. ICC Academy's Incoterms questions and answers explains that a DAP buyer who fails to fulfil its import-clearance obligations must reimburse resulting additional seller costs. Seller-arranged transport therefore does not make every delay charge the seller's responsibility.
For any disputed charge, request the arrival and availability notices, the free-time terms, the clearance timeline, and the invoice. Separate carrier or terminal billing from who ultimately bears the cost under the sales agreement. If the parties disagree, assess the contract and facts before promising reimbursement.
Use our port congestion and customs clearance guide to organize the timeline and identify the unresolved step.
Before-booking checklist
Put the exact delivery point and Incoterms® 2020 rule in the agreed sales terms.
Identify the importer, broker, destination agent, and one escalation contact for each party.
Complete the product, permit, and importer-status review before dispatch.
Review draft shipping documents and resolve inconsistent names, quantities, descriptions, or values.
Confirm inclusions, exclusions, assessment differences, and how payments will be funded.
Agree delivery notices, receiving arrangements, unloading, and any cargo insurance.
Set a process for recording delay causes and approving additional work.
Request the final customs and delivery records needed to reconcile the purchase.
Our pre-shipment checklist can support the wider document review. Keep the signed scope and related email confirmations with your shipment file.
Frequently asked questions
Is DDP always better for a Philippine buyer?
No. Choose it only after checking the seller's clearance plan, written price scope, and access to records. A buyer with an established import operation may prefer DAP for direct coordination with its own broker. Compare actual offers and operational readiness.
Does “door-to-door” mean duties and taxes are included?
No. A delivery description alone does not settle the import-tax allocation. Ask for the agreed Incoterm, named destination, and an itemized scope before treating a door-to-door offer as duty-paid.
Can the buyer still be asked for documents under DDP?
Yes. The seller may request the buyer's assistance with clearance information or documents, at the seller's risk and cost. Clarify each request, especially if it names your business as importer. Assistance and the seller's contractual clearance responsibility are separate matters.
Does DDP include unloading or cargo insurance?
Neither is automatically included as a seller obligation. Check the unloading arrangement, any cost already covered by carriage, and the insurance policy separately. A seller bearing transit risk does not prove that a policy exists.
Review your shipping terms with Upturn
Send your supplier's quotation, proposed Incoterm, product details, origin, delivery address, and importer information when requesting a customs brokerage and clearance assessment. Include any available permits and draft shipping documents so the team can identify the questions to resolve before booking.
For the wider process, read our beginner's guide to importing into the Philippines, or request a quote with your shipment details.
Sources and review date
Last source review: September 22, 2026. This guide links to ICC materials on Incoterms® 2020 and Bureau of Customs guidance on importation, accreditation, and regulated goods. Confirm the current requirements and contract terms for your shipment before booking. The planning example is fictional; this guide does not replace shipment-specific customs or contract advice.
Announcement
Guide
Article
