How to differentiate DDP and DAP

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.

 

DAP – Delivered at Place (named Place)

 

DDP – Delivered Duty Paid

             (named Place)

 

Costs

Risks

 

 

Costs

Risks

Warehouse services

Seller

Seller

 

Warehouse services

Seller

Seller

Marking and labeling

Seller

Seller

 

Marking and labeling

Seller

Seller

Packing of Goods

Seller

Seller                                    

 

Packing of Goods

Seller

Seller                                    

Loading at Seller’s premises

Seller

Seller

 

Loading at Seller’s premises

Seller

Seller

Transportation from Seller’s

premises to Load port

Seller

Seller

 

Transportation from Seller’s

premises to Load port

Seller

Seller

Unloading at Loading Port

Seller

Seller

 

Unloading at Loading Port

Seller

Seller

Loading to Vessel/Aircraft

Seller

Seller

 

Loading to Vessel/Aircraft

Seller

Seller

Export documentation

Seller

Seller

 

Export documentation

Seller

Seller

Export Customs Clearance

Seller

Seller

 

Export Customs Clearance

Seller

Seller

Export Taxes and duties (if any)

Seller

Seller

 

Export Taxes and duties (if any)

Seller

Seller

Handling  at Load Port

Seller

Seller

 

Handling  at Load Port

Seller

Seller

Main Carriage

(Ocean Freight/Airfreight)

Seller

Seller

 

Main Carriage

(Ocean Freight/Airfreight)

Seller

Seller

Import Customs Clearance

Buyer

Buyer

 

Import Customs Clearance

Seller

Seller

Import Documentation

Buyer

Buyer

 

Import Documentation

Seller

Seller

Import Taxes and Duties (if any)

Buyer

Buyer

 

Import Taxes and Duties (if any)

Seller

Seller

Transportation from destination

port to named place

Seller

Seller

 

Transportation from destination

port to named place

Seller

Seller

Unloading at named place

Buyer

Buyer

 

Unloading at named place

Buyer

Buyer

 

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  

Banking rules related to Exports and Imports in India

How to open Letter of Credit, easily explained here

CIP and DAP under Inco terms, a comparison     DDP and CIP under Inco terms     Free Along Side Vs. Carriage and Insurance Paid     A comparative study between CIP terms and FOB terms     CIP and CFR under Inco terms     Compare CIP and EXW under Inco terms     Ex Works Vs. Carriage Paid To     Difference between EXW and FCA, Inco terms 2020       DAP delivery terms, who does import customs clearance?     Compare between DPU and DAP under Inco terms 2020     DDP and DPU under Inco terms 2020     DPU and FAS, a comparative study based on Inco terms 2020     DPU and FOB under Inco terms 2020     Difference between DPU and CFR, based on Inco terms 2020         CIF terms of delivery explained under Incoterms 2020     CFR terms of delivery, explained in simple language       Who is responsible for Import Customs clearance under DPU?


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