DAP and DDP under Inco terms 2020
Delivered At Place (to a named place) Vs. Delivered Duty Paid (to a named place)
In this post, the difference between DAP and DDP are explained. How does DAP work under movement of goods from seller to buyer? Who shares risks and costs among seller and buyer under DAP terms? Who takes care of export and import customs clearance? Who is responsible for import taxes?
How to differentiate DAP and DDP under Incoterms 2020 rules designed by ICC?
The major difference between DDP and DAP is that under DDP, import customs clearance is undertaken by the seller whereas under DAP rules, the import customs clearance at destination country is under the liability of buyer.
Under DDP rules, the seller should be familiar with destination country’s import government regulations, taxes and duties as the seller is responsible to pay import taxes and duties against the goods moved. However under DAP rules, import customs clearance and taxes at import country are under the risk and cost of buyer.
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DAP – Delivered at Place (named Place)
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DDP – Delivered Duty Paid
(named Place)
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Costs
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Risks
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Costs
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Risks
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Warehouse services
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Seller
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Seller
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Warehouse services
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Seller
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Seller
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Marking and labeling
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Seller
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Seller
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Marking and labeling
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Seller
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Seller
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Packing of Goods
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Seller
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Seller
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Packing of Goods
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Seller
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Seller
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Loading at Seller’s premises
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Seller
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Seller
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Loading at Seller’s premises
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Seller
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Seller
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Transportation from Seller’s
premises to Load port
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Seller
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Seller
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Transportation from Seller’s
premises to Load port
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Seller
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Seller
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Unloading at Loading Port
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Seller
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Seller
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Unloading at Loading Port
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Seller
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Seller
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Loading to Vessel/Aircraft
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Seller
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Seller
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Loading to Vessel/Aircraft
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Seller
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Seller
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Export documentation
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Seller
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Seller
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Export documentation
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Seller
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Seller
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Export Customs Clearance
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Seller
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Seller
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Export Customs Clearance
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Seller
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Seller
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Export Taxes and duties (if any)
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Seller
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Seller
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Export Taxes and duties (if any)
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Seller
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Seller
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Handling at Load Port
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Seller
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Seller
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Handling at Load Port
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Seller
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Seller
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Main Carriage
(Ocean Freight/Airfreight)
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Seller
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Seller
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Main Carriage
(Ocean Freight/Airfreight)
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Seller
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Seller
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Import Customs Clearance
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Buyer
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Buyer
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Import Customs Clearance
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Seller
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Seller
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Import Documentation
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Buyer
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Buyer
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Import Documentation
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Seller
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Seller
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Import Taxes and Duties (if any)
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Buyer
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Buyer
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Import Taxes and Duties (if any)
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Seller
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Seller
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Transportation from destination
port to named place
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Seller
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Seller
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Transportation from destination
port to named place
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Seller
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Seller
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Unloading at named place
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Buyer
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Buyer
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Unloading at named place
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Buyer
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Buyer
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A detailed post about DAP and DDP separately is written in this website, you may click below to read:
DDP Delivered Duty Paid
DAP Delivered at Place
We believe, you have gone through the above posts about DAP and DDP which have been written in simple language to understand easily.
Learn practical problems and solutions in Exports and Imports
Click here to read latest Inco terms rules for delivery of goods
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How to open Letter of Credit, easily explained here
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