What is the difference between DAP terms and CPT terms

CPT and DAP under Inco terms 2020

Compare the delivery terms CPT and DAP

As you know, DAP means Delivered at Duty Paid at a named place agreed between buyer and seller when agreeing mutually as contract of carriage under Sale agreement. 

CPT means Carriage Paid To  a named place where seller and buyer agrees mutually under contract of carriage which is a part of Sale contract.

What is difference between both CPT and DAP?

Under CPT delivery rules, the seller transfers the cost of movement of goods to the buyer at the named location in Buyer’s country, in export import business.  But the risk under CPT transfers from seller to buyer immediately up on loading the goods to the carrier contracted by seller.  So the risk and cost equally do not move from seller to buyer under CPT terms, where costs and risks equally move from seller to buyer under DAP terms.

CPT delivery rules under Inco terms 2020 is ideal to use for movement of goods  from one warehouse to another,  movement of Less Container Load cargo (LCL),  movement of break bulk cargo etc. whereas DAP delivery rules are preferably used for movement of cargo from sellers place to buyer’s premises  either by Sea or by air. CPT modes are used widely used for the shipments by air also.  

You may click below  to read more information about CPT and DAP, where the information explained easily to understand.

DAP  Delivered at Place

CPT  Carriage Paid To

The above information is about the difference between DAP and CPT.  You may add more information based on your experience in handling  CPT and DAP delivery terms for movement of goods under INCOTERMS 2020 published by International Chamber of Commerce (ICC)

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