Which Incoterm Should You Choose for Door to Door Shipping?

Door to Door is not an Incoterm. It is the scope of service you hire a forwarder to handle. Any Incoterm can be shipped Door to Door; what matters is who hires the forwarder. If the seller handles delivery all the way to the warehouse, use DAP (the most common), DPU if the seller unloads the goods, or DDP if the seller also pays import duties. If the buyer hires the forwarder, use FCA and avoid EXW where possible.

Door to Door is a scope of service; an Incoterm is a sales obligation - choose the right Incoterm before hiring a forwarder.

Table of Contents

I. Is Door to Door an Incoterm?

II. Who hires the forwarder determines the Incoterm

III. Seller delivers to the warehouse: DAP, DDP, DPU

IV. Buyer hires Door to Door: EXW or FCA

V. Comparison table: DAP, DDP, DPU, FCA, EXW

VI. 5 things to check before finalizing the Incoterm

VII. FAQ

VIII. Conclusion

I. Is Door to Door an Incoterm?

No. This is the most common misconception when customers request a quote: "Please quote us on door to door terms." ICC's Incoterms® 2020 contains no rule called Door to Door. Writing "Door to Door" into a sales contract instead of a specific Incoterm creates room for disputes: no one knows where risk transfers, who handles customs clearance, or who pays the duties.

1. What is Door to Door

Door to Door is an end-to-end shipping service: the forwarder picks up cargo at the shipper's warehouse, handles export clearance, books the main freight (ocean or air), handles import clearance and delivers to the consignee's warehouse. It is a service contract between the cargo owner and the forwarder. It describes which stages the forwarder handles, not the obligations between seller and buyer.

2. What Incoterms cover - and what they don't

An Incoterm is an agreement between the seller and the buyer, incorporated into the international sales contract. According to the ICC, the 2020 edition has 11 rules, each answering three questions:

• Who pays transport costs, and up to which point.

• At which point risk passes from seller to buyer.

• Who handles export and import customs clearance.

Incoterms do not cover: the price of goods, payment timing, transfer of ownership, or which forwarder is hired. An Incoterm is also not a complete sales contract, only one part of it. Each rule must always be followed by a specific named place and the version, for example "DAP [street address, ward], Ho Chi Minh City, Incoterms® 2020".

II. Who hires the forwarder determines the Incoterm

This is the first question to ask, before discussing DAP or DDP. Door to Door means a single forwarder is responsible for the entire route, and that forwarder must be hired by one of the two parties.

Who hires the Door to Door forwarder	Suitable Incoterm group	Real-world example
Seller (exporter)	Group D: DAP, DPU, DDP	A Vietnamese factory sells to the US and delivers all the way to the customer's warehouse
Buyer (importer)	Group E/F: EXW, FCA	A Vietnamese company buys machinery from China and hires its own forwarder to collect at the factory

Using Group C (CPT, CIP, CFR, CIF) for Door to Door splits cost and risk: the seller pays freight to destination, but risk has already passed to the buyer at the start of the route (CPT/CIP: when goods are handed to the first carrier; CFR/CIF: when goods are loaded on board at the port of loading). Two parties are then involved in one shipment, yet neither controls the entire route. It is workable, but incidents are harder to manage.

Conclusion: Whichever party wants to choose the forwarder and control sailing schedules and costs should take on Door to Door responsibility and choose the matching Incoterm.

III. Seller delivers to the warehouse: DAP, DDP, DPU

All three Group D rules place the delivery point at destination. The seller bears freight and risk throughout the journey. The differences come down to two things: who unloads the goods and who handles import clearance and pays duties.

1. DAP – when to use it, risks

Under DAP (Delivered at Place), the seller delivers the goods on the arriving means of transport at the named place, not unloaded. The buyer unloads, handles import clearance, and pays duties and fees.

When to use: the seller wants to quote "delivered to the warehouse" but does not want to get involved in customs in the importing country. This is the safest and most common option for seller-arranged Door to Door.

Risks:

1. Goods arrive but the buyer is slow to clear customs, leading to container demurrage and detention charges (DEM/DET). The contract should clearly state which party bears these costs.

2. A vague delivery address (e.g. "Ho Chi Minh City") makes it impossible to pinpoint where risk transfers.

2. DDP – when to use it, importer of record risk

Under DDP (Delivered Duty Paid), the seller bears almost everything: transport, import customs clearance, import duties and VAT in the buyer's country. It places the highest obligation on the seller of all 11 Incoterms.

When to use: the seller has a legal entity or a licensed import partner in the destination country, and the buyer needs a "delivered to warehouse, duties paid" price.

The biggest risk is the importer of record. Under DDP, the seller must handle import clearance. But in many countries, the party named on the import declaration and registered for tax must be a local legal entity. A foreign seller without one cannot do it. Import VAT paid by the seller on the buyer's behalf is also usually non-deductible, which inflates the price.

In Vietnam, the import declaration must be filed by an enterprise with a Vietnamese tax code: either the cargo owner or an entrusted import agent. A foreign seller wanting to ship DDP into Vietnam usually has to go through such an entrusted importer.

3. DPU – when the seller unloads

DPU (Delivered at Place Unloaded) replaced DAT in the 2020 edition. According to the ICC, the only difference from DAP is that the seller must unload the goods at the place of delivery. Import clearance and duties remain the buyer's responsibility.

When to use: specialized unloading equipment is needed that the buyer does not have, e.g. heavy machinery or project cargo requiring a crane. Risks: the seller bears the risk of damage during unloading, so the delivery site should be surveyed before quoting.

IV. Buyer hires Door to Door: EXW or FCA

This is a common scenario for Vietnamese importers: buying from an overseas supplier and hiring a local forwarder to handle Door to Door in order to control freight costs and schedules.

EXW (Ex Works): the seller simply makes the goods available at its premises. The buyer handles everything, including export clearance in the seller's country. The risk is that the buyer (or the forwarder's overseas agent) is often not eligible to be named on the export declaration abroad. The ICC notes that EXW is better suited to domestic trade; for international trade, FCA is usually more appropriate. In addition, under EXW the seller has no obligation to load the goods onto the truck, so risk during loading already lies with the buyer.

FCA (Free Carrier): the seller clears the goods for export in its own country and hands them over to the carrier nominated by the buyer, which can be at the seller's premises. If delivery takes place at the seller's premises, the seller is responsible for loading. The 2020 edition also allows, if both parties agree, the buyer to instruct the carrier to issue an on-board B/L to the seller, solving a common problem with L/C payments.

If you are buying FOB (Free On Board): your forwarder is only responsible from the port of loading. Trucking and export clearance at origin are still handled by the seller, so it is not true Door to Door. For containerized cargo, the ICC recommends FCA instead of FOB.

Recommendation: If you are the buyer and hiring Door to Door yourself, negotiate FCA [seller's factory address] instead of EXW. The cost difference is usually small (mainly export clearance fees at origin), but export formalities stay with the party that is able to handle them.

Related articles:
- The import documents required when choosing Door to Door service
- Why Door to Door quotes vary between forwarders? 

V. Comparison table: DAP, DDP, DPU, FCA, EXW

Criteria	EXW	FCA	DAP	DPU	DDP
Who usually hires Door to Door	Buyer	Buyer	Seller	Seller	Seller
Export clearance	Buyer	Seller	Seller	Seller	Seller
Main freight	Buyer	Buyer	Seller	Seller	Seller
Risk transfer point	At seller's premises, before loading	When handed to the buyer's carrier	At destination, on the vehicle, not unloaded	At destination, after unloading	At destination, not unloaded, import-cleared
Unloading at destination	Buyer	Buyer	Buyer	Seller	Buyer
Import clearance	Buyer	Buyer	Buyer	Buyer	Seller
Import duties, import VAT	Buyer	Buyer	Buyer	Buyer	Seller
Popularity for Door to Door	Low (switch to FCA)	High among importers	Highest among exporters	Medium, heavy cargo	Low, importer of record issues

How to read the table: from left to right, responsibility and risk gradually shift from buyer to seller. Door to Door does not change this table. Door to Door only determines whose forwarder carries out that part of the work.

VI. 5 things to check before finalizing the Incoterm

Answer all 5 questions before signing the contract, especially question 1 on the importer of record - this is where DDP shipments most often fail.

1. Who is the importer of record? Identify the legal entity filing the import declaration at destination. If the seller cannot act as importer, rule out DDP from the start.

2. Who pays import duties and fees? This includes import duty, VAT and specialized inspection fees. For goods entering Vietnam, check the HS code, duty rate and whether the item is subject to specialized management in advance. If so, clearance may take longer.

3. Where exactly is the delivery point? State the exact address, not just the city name. For Group D rules, this is where risk transfers.

4. Are unloading costs included? Choose DAP or DPU based on the answer. For heavy or OOG cargo, also confirm who pays for forklifts and cranes at the warehouse.

5. Is the seller eligible to ship DDP to the destination country? Most countries do not formally prohibit DDP. The right question is whether the seller can register for import and tax there. If not, switch to DAP and let the buyer hire a local customs broker.

   
   

VII. Frequently Asked Questions (FAQ)

Is DDP always the best Incoterm for the buyer in a Door to Door shipment?

Not necessarily. DDP is convenient for the buyer but easily breaks down at the importer of record and import VAT stage. If the seller cannot legally act as importer, the shipment may get stuck at port. DAP plus a reputable customs broker at destination is usually safer.

Can I write "Door to Door" in a sales contract instead of an Incoterm?

It is not recommended. Door to Door has no legal definition of the risk transfer point or customs clearance obligations. Specify the Incoterm, the named place and the version, e.g. "DAP [warehouse address], Incoterms® 2020". Put the Door to Door scope in your contract with the forwarder.

What terms should I buy on when importing from China to Vietnam Door to Door?

If you want to control freight and schedules yourself, negotiate FCA at the supplier's factory and hire a Vietnamese forwarder to handle the entire route. If the supplier already has a forwarder with good rates, DAP to your warehouse also makes sense. You then only need to prepare import clearance and duties.

What is the difference between DAP and DPU?

Only the unloading. DAP: the seller delivers on the vehicle and the buyer unloads. DPU: delivery is complete only after the seller unloads, and the seller bears the risk during unloading.

VIII. Conclusion

Door to Door is a service; an Incoterm is a sales obligation. Don't use one in place of the other. To choose correctly, answer the question "who hires the forwarder":

• Seller handles the entire route: default to DAP. Move to DPU only when the seller actually needs to unload. Use DDP only after confirming the seller can legally act as importer of record at destination.

• Buyer handles the entire route: choose FCA, avoid EXW where possible.

Finalize the Incoterm first, then book Door to Door. Do it the other way round and the forwarder's quote will be wrong from the start.

From the shipper's warehouse to the consignee's warehouse, you work with a single point of contact. H-Cargo provides end-to-end documentation and door to door shipping. Contact: hcargovn.com | +84 287 301 3639

H-Cargo International Logistics provides door to door shipping in both directions. For importers buying FCA/EXW, we collect cargo at overseas factories through our agent network. For exporters selling DAP/DPU, we deliver to the buyer's warehouse. Customs declaration is handled by our in-house team, so you have one point of contact for the entire route. Before signing your contract, send us your proposed Incoterm so we can check for hidden costs.

Author: Navy Ngo - Marketing Specialist

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Legal references cited in this article: ICC Incoterms® 2020 rules; Law on Customs 2014 (provisions on customs declarants); Commercial Law 2005 (provisions on entrusted purchase and sale of goods). Please verify the validity of these documents at the time of application.