For a frozen food import from outside the European Union, DAP at a named cold store is usually the better term. Under DAP the seller delivers the goods ready for unloading at the named place and the buyer clears them for import. Under DDP the seller also becomes the importer of record and pays import duty and, unless agreed otherwise, import VAT. That last obligation is the problem.
Why DDP is harder than it looks
- The seller has to be able to act as importer of record in the destination country, which normally means a local VAT registration or an indirect customs representative willing to take the liability.
- The seller becomes responsible for import controls it cannot attend, including any sampling of the consignment.
- Import VAT recovery mechanics differ by Member State, so a DDP price that works in one country is wrong in the next.
- A dispute about classification lands on a party that has no relationship with the destination customs authority.
When DDP is nevertheless right
- The seller already has an established entity or a permanent customs representation in the destination country.
- The buyer is a small operator with no customs capability and accepts a higher price for that.
- The tender rules require a single landed figure and the seller has priced the compliance work honestly.
Getting DAP right
Name the exact place. “DAP Hamburg” is not a delivery term; “DAP consignee cold store, Hamburg, Incoterms 2020” is. Under DAP the buyer unloads, so agree who provides the forklift and what happens if the receiving window is missed. Add the temperature clause separately, because no Incoterms rule says anything about temperature.
Full detail: Incoterms 2020 for frozen food.