If you agree DDP but want VAT excluded, write that exclusion into the contract and the quote. Never rely on a verbal understanding.

Who pays import duties under DAP and DDP?

Under DAP the buyer pays import duties and taxes; under DDP the seller pays them, directly or through an agent in your country.

What is actually payable depends on the destination and the HS code:

• UAE: customs duty is generally 5% of the CIF value, collected by Dubai Customs or the relevant emirate's customs, plus 5% import VAT administered by the Federal Tax Authority. Some goods are exempt or charged at other rates.
• Iraq: since 1 January 2026 duties are calculated per item by HS code under Decision 957/2025 and declared through ASYCUDA World, and customs may value goods from the invoice or its own reference values. Since 10 July 2026 certificates of origin and commercial invoices must be verified electronically before a declaration is processed (Deloitte).
• Kenya and Tanzania: the East African Community Common External Tariff applies, plus national taxes and levies. Confirm current rates with the revenue authority before you agree a DDP price.

A seller who offers DDP must therefore know your HS codes and declared value. If a DDP price was calculated without them, it is a guess.

Why do “DDP all-in” quotes often turn out to be DAP?

Because the price covers transport but leaves out duty, VAT or destination charges, which are then billed to the buyer when the goods arrive.

The patterns we see most often in quotes from China to the Middle East and Africa:

• Duties “at actual cost” on arrival. The quote says DDP, but duty and VAT are invoiced separately after clearance, which in practice is DAP.
• Low freight, high destination charges. Ocean freight is quoted very low to win the booking, and the margin is recovered through destination fees marked “payable by consignee”.
• Under-declared value. The DDP price assumes a low customs value. If customs reassesses the goods, the extra duty and any penalty can fall on the consignee.
• “Door” means a warehouse. Delivery ends at the agent's warehouse in the city, and the last mile and unloading are extra.
• Storage and demurrage excluded. Any delay at the port is charged on top, even when the delay was in the agent's clearance.

This is not a niche problem. In the Nigerian Shippers' Council's complaints data for April–December 2025, “arbitrary charges” was the largest single category, at 13.3% of 142 complaints (NSC).

Who is the importer of record under DDP?

The importer of record is the party in whose name the goods are declared to customs, and under DDP someone in the destination country must legally take that role.

• UAE: the importer needs a trade licence that covers the goods and a customs client code. A foreign seller usually cannot import in its own name, so DDP is done through a local company's licence: yours, a forwarder's or an agent's.
• Iraq: only a locally registered importer of record can clear goods.

If your goods are declared in a third party's name, ask what that means for you. You may not be able to recover import VAT, your ownership documents may name someone else, and regulatory responsibility for the goods may sit with a company you do not control. If the value is under-declared, the problem can still reach the goods and their owner.

When should you choose DAP, and when DDP?

Choose DAP when you can import in your own name and want control of customs value and taxes; consider DDP only when you cannot import yourself and the importer of record is transparent and lawful.

How do you check what an “all-in” quote really includes?

Ask for the scope in writing and make each of these points explicit before you pay a deposit.

1. The rule and the named place: for example “DAP Buyer's warehouse, Al Quoz, Dubai, Incoterms® 2020”, not just “DAP Dubai”.
2. The importer of record: the full legal name that will appear on the declaration.
3. Duty and VAT: included or not, and calculated on which HS codes and which value.
4. Destination charges: terminal handling, delivery order, port fees, inspection and delivery to your door.
5. Free days and storage: how many days, from when, and the daily rate afterwards.
6. Unloading: who unloads at your premises.
7. Validity: how long the price holds and which surcharges can change.

At Nil Ocean the cost sheet in your case file shows, line by line, whether a charge is included, estimated or passed through at cost, and which side pays it under your Incoterm. A charge that was not on the sheet needs your approval before it is invoiced. For the full set of rules, see our Incoterms 2020 guide and the Incoterms tool.

This guide is general information, not legal, tax or customs advice. Rules and rates change; confirm the requirements for your shipment with your coordinator or the relevant authority.