DDP and DAP responsibilities
| Responsibility | DDP | DAP |
|---|---|---|
| Transport to the named destination | Seller | Seller |
| Import clearance formalities | Seller | Buyer |
| Applicable import duties and taxes | Seller | Buyer |
| Normal delivery point | On the arriving vehicle, ready for unloading | On the arriving vehicle, ready for unloading |
| Unloading at destination | Normally the buyer, unless separately agreed | Normally the buyer, unless separately agreed |
Transport to the named destination
- DDP
- Seller
- DAP
- Seller
Import clearance formalities
- DDP
- Seller
- DAP
- Buyer
Applicable import duties and taxes
- DDP
- Seller
- DAP
- Buyer
Normal delivery point
- DDP
- On the arriving vehicle, ready for unloading
- DAP
- On the arriving vehicle, ready for unloading
Unloading at destination
- DDP
- Normally the buyer, unless separately agreed
- DAP
- Normally the buyer, unless separately agreed
This summarises the standard allocation between seller and buyer. The complete contract and the stated Incoterms® edition determine the arrangement.
The named delivery point
“South Africa” does not explain whether a quoted journey ends at a port, a collection warehouse or your own premises.
Warehouse collection
Identify the collection location, release requirements, storage conditions and who takes the goods onward.
Delivery to an address
Specify the full address and postcode, access, receiving arrangements, unloading and additional delivery charges.
Port or airport arrival
Arrival is a transport milestone. Clearance, cargo release and inland movement may still remain.
Importer and agent roles
One company may hold several roles, but a tax-inclusive freight rate does not assign them automatically. Foreign importer arrangements require the relevant registration and local representation.
| Party | What to establish before shipment |
|---|---|
| Declared importer | The local or foreign entity registered for the actual import transaction. |
| Registered agent | The South African representative required for a foreign principal where applicable. |
| Customs clearing agent | The authorised party submitting the customs declaration. |
| 3PL or freight coordinator | The transport and handling services commissioned under its own agreement. |
Declared importer
- What to establish before shipment
- The local or foreign entity registered for the actual import transaction.
Registered agent
- What to establish before shipment
- The South African representative required for a foreign principal where applicable.
Customs clearing agent
- What to establish before shipment
- The authorised party submitting the customs declaration.
3PL or freight coordinator
- What to establish before shipment
- The transport and handling services commissioned under its own agreement.
Price structures and included charges
A fixed tax-inclusive quotation
Check the goods, value assumptions, included taxes, delivery point and exceptions to which the price applies.
Service charges plus actual taxes
Separate freight and handling from duty/VAT, disbursement fees and any later reassessment. Tax payment may be arranged without fixing the tax amount.
A DAP transport arrangement
Identify the buyer’s clearance and tax work, and distinguish it from the destination handling and delivery included in transport.
Freight prepaid or collect describes how freight is paid. It does not by itself establish DDP or DAP.
Customs and VAT records
A DDP label alone neither grants nor removes a right to deduct import VAT. The actual principal/importer, VAT status, business use and documentary requirements matter. Before choosing the arrangement, establish the required customs, release and tax-payment evidence. Where an agent imports for the principal and holds the customs entry, confirm the prescribed statement and tax-payment references.
An importer’s own import-VAT records and a local seller’s VAT invoice belong to different transaction structures. Do not assume a tax-inclusive freight invoice can replace either.
Before you approve the proposal
- Identify the seller, buyer, importer, customs representative and duty/VAT payer.
- Name the handover location and specify destination handling, release, storage, local delivery and unloading.
- State whether taxes are fixed within a defined scope or charged at actual cost, including advance-payment fees.
- Agree the treatment of inspection, additional documents, reassessment, address changes and unsuccessful delivery.
- Keep purchase, title and payment terms separate: Incoterms do not decide ownership or how and when the goods are paid for.
Reference library
Sources and reference material
01ICC: choosing an Incoterms® 2020 rulelibrary.iccwbo.org02ICC: sales and transport contractslibrary.iccwbo.org03SARS: importer and agent registrationsars.gov.za04SARS VAT404: import VAT recordssars.gov.zaReviewed 27 October 2026