What is the difference between DDU, DDP, and DAP?

1, Overview of DDU (Delivered Duty Unpaid)
DDU, also known as Delivered Duty Unpaid, refers to the seller handing over the goods to the buyer for disposal at the designated destination without handling import procedures or unloading the goods from the delivery vehicle, thus completing the delivery. The seller must bear all risks and costs of transporting the goods to the designated destination, but does not include any "taxes" that should be paid when importing 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 this delivery method, the buyer needs to bear the import taxes and customs clearance procedures on their own, which increases the buyer's responsibility and risk.
2, Overview of DDP (Delivered Duty Paid)
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 of transporting the goods to the designated destination, including all taxes and fees (including tariffs, taxes, and other fees, as well as the costs and risks of handling customs procedures) that should be paid at the destination when customs procedures are required. Under this delivery method, the seller assumes greater responsibility and risk, but provides the buyer with a more convenient and secure transaction experience.
3, Overview of DAP (Delivered At Place)
DAP, also known as delivery to destination, refers to the seller delivering the goods at the designated destination and bearing all risks and costs (except for import procedures and tariffs) of transporting the goods to the designated destination. The seller must bear all risks and costs of transporting the goods to the designated destination (excluding any "taxes" that should be paid for import in the destination country when customs procedures are required), as well as unloading fees (if both parties agree to be borne by the seller). The buyer must bear this "tax" and any costs and risks arising from their failure to timely handle the import customs clearance procedures for the goods. Under this delivery method, the seller bears certain transportation risks and costs, but the buyer still needs to handle import procedures and pay relevant taxes on their own.
4, The main differences between DDU, DDP, and DAP
Risk and cost bearing
Under DDU, the seller bears the risk and cost of transporting the goods to the destination, but is not responsible for import taxes and customs clearance procedures; Under DDP, the seller shall bear all risks and expenses, including import taxes and fees; Under DAP, the seller bears the risk and cost of transporting the goods to the destination, but does not include import taxes and unloading fees (as agreed by both parties). Therefore, from the perspective of risk and cost bearing, DDP has the highest requirements for the seller, followed by DDU, and DAP is relatively low.
Handling of customs clearance procedures
Under the DDU term, the buyer is responsible for handling import customs clearance procedures and paying relevant taxes and fees; Under the DDP term, the seller is responsible for handling import customs clearance procedures and paying relevant taxes and fees; Under DAP terms, although the seller bears transportation risks and costs, the buyer still needs to handle import procedures on their own. Therefore, from the perspective of customs clearance procedures, DDP provides the buyer with the greatest convenience, while DDU and DAP require the buyer to assume certain responsibilities.
In summary, DDU, DDP, and DAP each have their own characteristics in international trade, and their main differences lie in the assumption of risks and costs, as well as the handling of customs clearance procedures. When choosing appropriate trade terms, both buyers and sellers should weigh and choose based on specific circumstances and needs to ensure the smooth progress of the transaction and the protection of both parties' interests.