What is the difference between DDP and DTP?

1, Overview of DDP delivery methods
DDP, also known as Delivered Duty Paid, refers to the seller completing import customs clearance procedures at the designated destination and delivering goods that have not yet been unloaded from the delivery vehicle to the buyer, completing the delivery. The seller must bear all risks and costs associated with transporting the goods to the designated destination, including all taxes and fees that should be paid for import in the destination country when customs procedures are required (including the responsibility and risks of handling customs procedures, as well as paying handling fees, tariffs, taxes, and other fees).
Under the DDP delivery method, the seller bears relatively high responsibilities and risks. They are responsible for transporting the goods to the destination, completing all import procedures, and paying taxes. This delivery method is very convenient for the buyer, as they do not need to handle any import procedures or tax issues, and only need to receive the goods at the designated location. However, for the seller, the DDP delivery method means higher costs and more complex operational processes.
2, Overview of DTP delivery methods
DTP, also known as destination terminal paid delivery, is a relatively new delivery method. In this way, the seller is responsible for transporting the goods to the designated destination terminal (such as port, airport, or inland warehouse) and bears all risks and costs before the goods arrive at the terminal. Once the goods arrive at the terminal, the buyer is responsible for extracting the goods from the terminal and handling subsequent import procedures and paying taxes.
The characteristic of DTP delivery method is that the seller is only responsible for transporting the goods to the designated terminal, and is not responsible for handling import procedures and paying taxes. This delivery method reduces some of the responsibilities and risks for the seller compared to DDP. However, for the buyer, they need to handle the extraction of goods from the terminal and subsequent import procedures and tax issues, which increases the buyer's operational costs and risks.
3, The main differences between DDP and DTP
Different allocation of responsibilities and risks
Under the DDP delivery method, the seller bears greater responsibility and risk, as they are responsible for transporting the goods to the destination and completing all import procedures and tax payments. Under the DTP delivery method, the seller is only responsible for transporting the goods to the designated terminal, while the buyer needs to handle the subsequent import procedures and tax issues on their own. Therefore, in terms of responsibility and risk allocation, DDP has higher requirements for the seller, while DTP has higher requirements for the buyer.
Different cost components
Due to the DDP delivery method, the seller needs to bear more responsibility and risk, so its cost is usually higher. This includes transportation costs, insurance costs, tariffs and taxes, etc. Under the DTP delivery method, the seller is only responsible for transporting the goods to the designated terminal, so its cost is relatively low. But the buyer needs to bear the cost of extracting the goods from the terminal and handling import procedures and taxes on their own.
Applicable scenarios vary
The DDP delivery method is usually suitable for situations where the buyer is not familiar with import procedures and tax treatment, or is unwilling to bear related responsibilities and risks. The DTP delivery method is more suitable for situations where both buyers and sellers have a certain understanding of transportation and import processes, and are willing to share some of the responsibilities and risks. In addition, for some special commodities or markets, both buyers and sellers may choose the appropriate delivery method based on the specific situation.
In summary, DDP and DTP are two different delivery methods, with significant differences in responsibility and risk allocation, cost composition, and applicable scenarios. When choosing the delivery method, both parties should weigh and choose based on specific circumstances to ensure that their interests are maximized.