DDP vs DAP: who pays customs on your gifts?

Short answer

DDP vs DAP comes down to who clears customs at the destination. Under DAP (Delivered at Place) the sender delivers to the address, but the person receiving the gift handles import clearance and pays the tariffs. Under DDP (Delivered Duty Paid) the sender handles and pays for them, so nothing is left at the door.

Written and reviewed by The Go Swag team.Last reviewed 6 October 2026.

At a glance

Rules last verified 6 October 2026

DAP: Recipient clears and pays import
DDP: Sender clears and pays import
Rules: Incoterms® 2020, published by the ICC

What to do.

Decide what the recipient should experience. If the answer is “nothing to pay, nothing to sign for but the parcel”, you need DDP.
Budget the import charges up front. Under DDP the duty and VAT are your cost, so price them into the programme before you send.
Check who can be the importer. Make sure the sender, or a partner acting for it, can clear the import in each destination.
Write the delivery term into the order. Name the rule and the version, for example DDP under Incoterms® 2020, so nobody has to guess.

Want gifts to arrive with nothing to pay? We ship DDP.Start your project

Contents

01The rule
02Side by side
03Gifts and swag
04Mistakes
05How we help

The rule, in plain English.

DAP and DDP are two of the Incoterms® rules, the standard delivery terms published by the International Chamber of Commerce. The current version, Incoterms® 2020, came into force on 1 January 2020.^{⁠[1]Source 1}

Both terms deliver to the same place: the goods are put at the receiver’s disposal at the agreed destination, ready to unload. The difference is import clearance. Under DAP the receiver carries it out and pays for it. Under DDP the sender carries out and pays for every customs formality, export and import.^{⁠[2]Source 2}

Who does what under each term.

The chip on each line shows who carries it under DAP. Under DDP, every one of them sits with the sender.

Checklist

DAP and DDP, task by task

Delivery to the agreed address. Both terms deliver to the destination, ready for unloading. Risk passes to the receiver there.^{⁠[2]Source 2}Sender, both
Export clearance at origin. The sender clears the goods for export under both terms.^{⁠[2]Source 2}Sender, both
Import clearance at the destination. Under DAP the receiver carries out and pays for it. Under DDP the sender does.^{⁠[2]Source 2}Receiver, DAP
Import tariffs. Under DAP the receiver is responsible for them. Under DDP the sender pays all export and import tariffs.^{⁠[3]Source 3}Receiver, DAP

Information, not advice. Rules last verified 6 October 2026.

What it means for branded gifts and swag.

A company gift is a commercial import. German customs says parcels from companies can’t be treated as gift shipments, even when they’re free. So the import charges are real, and someone has to pay them.^{⁠[4]Source 4}
Import VAT comes on top of duty. Goods imported into the EU are generally subject to VAT. For a gift to arrive with nothing to pay, the sender has to cover the VAT as well as the tariffs.^{⁠[5]Source 5}
Under DAP, the courier collects. With the receiver responsible for import clearance and tariffs, the person receiving your gift is the one asked to settle them before it’s handed over.^{⁠[2]Source 2}^{⁠[3]Source 3}

Edge cases worth knowing.

DPU is a third option. Under DPU (Delivered at Place Unloaded) the receiver is responsible for import tariffs and clearance, as under DAP.^{⁠[3]Source 3}

Common mistakes.

Assuming “delivered” means “paid”. DAP delivers to the door too. The difference is who clears the import and pays the tariffs.^{⁠[2]Source 2}
Sending gifts DAP by default. It suits a buyer who can handle the import. For a gift, it hands the bill to the person you’re thanking.^{⁠[3]Source 3}
Covering duty but not VAT. Paying the tariffs alone can still leave import VAT for the recipient.^{⁠[5]Source 5}
Choosing DDP where a foreign sender can’t clear. Check that the sender, or someone acting for it, can be the importer in that country.^{⁠[2]Source 2}

How Go Swag helps.

We ship international orders DDP: we handle customs and duties, so recipients have nothing to pay on arrival. Where a destination’s import rules call for a different arrangement, we handle that too. We deliver to 180+ countries, and the customs, duties and taxes are worked out up front, in your quote.

Customs concierge

Knight Frank · Felt laptop sleeve and its kraft box

From our work

From our work for Knight Frank: a grey felt laptop sleeve, delivered in a printed kraft box. This is the moment DDP is for: the gift arrives and there is nothing to pay.

Managed

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Worth knowing

A company gift doesn’t usually count as a gift at the US border. US rules say a parcel from a business abroad would ordinarily not contain a gift, and the gift exemption stops at $100 in value.

Source: Electronic Code of Federal Regulations (US), “19 CFR 10.152 and 10.153: Bona-fide gifts and conditions for exemption”, accessed 6 October 2026. ^{⁠[6]Source 6}

Questions about DDP and DAP.

What does DDP mean?

DDP stands for Delivered Duty Paid, an Incoterms® rule. The sender delivers to the agreed destination and carries out and pays for every customs formality, export and import, including the import tariffs.

What does delivered duty paid mean for the person receiving a gift?

That the import has already been dealt with. The sender has cleared customs and paid the tariffs, so the parcel is handed over without a charge. To make sure nothing at all is due, the sender covers the import VAT too.

Who pays customs on gifts?

Whoever the delivery term says. Under DAP, the receiver handles import clearance and tariffs, so the person receiving a gift is asked to pay. Under DDP, the sender pays before delivery.

Is DDP more expensive than DAP?

The duty and import VAT are set by the destination’s rules, whichever term you use; what changes is who pays them. Under DDP the sender carries the import costs, so they belong in the gifting budget rather than landing on the recipient.

This guide is general information, not legal or customs advice. Check the current Incoterms® rules and the destination’s import requirements before you agree delivery terms.

Sources

6 sources

01Incoterms® rules (opens in a new tab) · International Chamber of Commerce, accessed 6 October 2026.Back to reference 1
02DAP & DDP Incoterms® 2020 explained: Key differences (opens in a new tab) · ICC Academy (International Chamber of Commerce), accessed 6 October 2026.Back to reference 2
03Should tariffs be part of Incoterms® training? (opens in a new tab) · ICC Academy (International Chamber of Commerce), accessed 6 October 2026.Back to reference 3
04Gifts (opens in a new tab) · Zoll (German customs), accessed 6 October 2026.Back to reference 4
05Import process: shipments from a non-EU country (opens in a new tab) · Zoll (German customs), accessed 6 October 2026.Back to reference 5
0619 CFR 10.152 and 10.153: Bona-fide gifts and conditions for exemption (opens in a new tab) · Electronic Code of Federal Regulations (US), accessed 6 October 2026.Back to reference 6

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