What is DAP and DDU?

DAP and DDU are common shipping terms. But what do they mean?

DAP - Delivery at Place.
Under the Incoterm delivered at place (DAP), the supplier agrees to pay the transportation costs and bear all the risks connected with the shipping process up to a destination, which should be specified exactly. Example: “DAP Townsville Port” (seller is responsible for transportation costs and risks up to the Port of Townsville; buyer is responsible to pay the import duties and clearance taxes once the shipment has arrived at the Townsville Port).

DDU - Delivery Duty Unpaid.
Under this Incoterm, the supplier pays any transportation expenses to make the goods available at a named place of destination, excluding the import duty or tax in the country of destination (which have to be paid by the buyer). It should specify a location (example: “DDU Cairns, Australia”).

Difference between DAP and DDU.
The International Chamber of Commerce’s 8th publication introduced DAP in 2010 to replace, basically, the Delivery Duty Unpaid (DDU) term. While DDU may still be found in some trades, buyers and sellers shall use the DAP term in offers, contracts and purchase orders preferably.