DIFFERENCE BETWEEN DDP AND DAP

December 31 2024
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Summary of the differences between DAP and DDP
Summary of the differences between DAP and DDP
DDP DAP
Concept Delivery Duty Paid (DDP): Delivery of goods cleared for import Delivered at Place (DAP): Delivered at Place
Main Content The seller bears all risks involved in bringing the goods to destination and is obliged to carry out customs procedures, clear the goods, pay taxes and fees incurred during the transportation process. The DAP rule requires the seller to clear the goods for export. However, The seller is not obliged to clear or pay any import fees.
Price – The only difference between DDP and DAP is the fee the seller has to pay. DDP includes import duties and taxes, insurance, etc., while DAP does not.
+ DDP and DAP freight rates are divided into two separate parts, for the seller and the buyer.
The seller bears: costs related to import-export procedures, fees for delivering documents to the buyer, hiring a shipping company, costs for inspecting goods,… until the goods are delivered to the location agreed upon in the contract.
The buyer bears: costs including the price of the goods, costs related to the shipment after receiving the goods, unloading costs (if the contract does not stipulate that the seller pays) from the time the goods are received at the location agreed upon in the contract.
Note Content DDP DAP
Alike Used for all separate modes of transport or can be used for multimodal transport
– Delivery location is agreed upon and clearly stated in the contract.
– DDP and DAP are both terms in Incoterms ( Terms in international trade ).
The seller delivers the goods and bears all risks during the delivery process and the delivery process is placed at the disposal of the buyer.
Distinctive
(For Sellers)
Customs procedures – Responsible for export and import customs procedures – Only responsible for export customs procedures
Taxes and fees – Responsible for all taxes, export and import fees – Only responsible for export taxes and fees.
Risk Extremely risky for sellers Risks for Sellers
Opportunity The seller or exporter wants more control over the goods ( exclusivity ) – Sellers want to take less risk in terms of import duties and taxes
DDP and DAP, which trade term should I choose
DDP and DAP, which trade term should I choose
DDP Trade Terms
DDP Trade Terms
Terms of Liability Buyer Seller
1. Payment obligations
– Just pay for the goods according to the contract. – Must provide goods, commercial invoices in accordance with the contract of sale and provide all other appropriate evidence of conformity under the contract as may be required by the contract.
2. Licenses and procedures
– If there is a regulation, the buyer must help the seller. Bear all risks and transportation costs to obtain import-export licenses or other official documents; in addition, must complete customs procedures.
3. Contract of carriage and insurance
a) Transport: There is no obligation on the seller to conclude a contract of transport.
b) Insurance: The seller is not obliged to enter into an insurance contract, however the seller may require the buyer to provide the necessary information to purchase insurance.
a) Transportation: Bear the cost of signing a transportation contract to transport goods to the agreed point.
b) Insurance: The seller has no obligation to the buyer to sign an insurance contract. However, if the buyer wishes, the seller must provide the necessary information to purchase insurance.
4. Delivery and receipt of goods
– Must receive the goods if the seller has delivered the goods as agreed. – Place the goods at the disposal of the buyer on the arriving means of transport ready for unloading at the agreed point.
5. Risk transfer
– Must bear all risks and losses once the goods have been delivered. – Bear all risks of loss or damage to the goods until they are delivered.
6. Fees
– All costs relating to the goods from the time they are delivered
– All unloading costs to receive the goods at the means of transport at the specified place (except in cases where the seller has borne them according to the contract)
– Costs incurred if the buyer fails to fulfill his obligations
– Unloading costs at destination and customs clearance costs
– Also includes all costs to complete import and export procedures of goods.
7. Delivery notice
Fully notify the seller of the location and time of delivery – Inform the buyer of the necessary information so that the buyer can take the usual measures necessary to receive the goods.
8. Proof of delivery – Accept proof of delivery provided by seller – Provide documents to the buyer to receive the goods (of course at their own expense)
9. Inspection – Packaging – Marking of goods
– No obligation to pay these fees The seller must pay the costs of inspection necessary for the goods to be delivered.
10. Other obligations and responsibilities
– Must promptly notify the seller of security information requirements.
– The buyer must reimburse the seller for all costs and fees incurred by the seller in obtaining or assisting in obtaining the documents.
– If required, the seller must promptly assist the buyer in obtaining, at the buyer’s request (at the buyer’s risk and expense), any documents and information, including security information, that the buyer needs for the carriage of the goods to the final destination from the named place.
* Special: The seller shall reimburse the buyer for all costs and expenses incurred by the buyer in obtaining documents and information.
DAP Trade Terms
DAP Trade Terms
Terms of Liability Buyer Seller
1. Payment obligations
– Just pay for the goods according to the contract. – Must provide goods, commercial invoices in accordance with the contract of sale and provide all other appropriate evidence of conformity under the contract as may be required by the contract.
2. Licenses and procedures If required, the buyer shall obtain at his own risk and expense any import license or other official documentation.
Customs procedures for importing goods
Assume all risks and expenses of obtaining any export documents or other official permits
Carry out all necessary customs procedures for exporting goods and transiting through countries before the goods are delivered.
3. Contract of carriage and insurance a) Transport: There is no obligation on the seller to conclude a contract of transport.
b) Insurance: The seller is not obliged to enter into an insurance contract, however the seller may require the buyer to provide the necessary information to purchase insurance.
a) Transportation: Bear the cost of signing a transportation contract to transport goods to the agreed point.
b) Insurance: The seller has no obligation to the buyer to sign an insurance contract. However, if the buyer wishes, the seller must provide the necessary information to purchase insurance.
4. Delivery and receipt of goods
– Must receive the goods if the seller has delivered the goods as agreed. – Place the goods at the disposal of the buyer on the arriving means of transport ready for unloading at the agreed point.
5. Risk transfer – Must bear all risks and losses once the goods have been delivered. – Bear all risks of loss or damage to the goods until they are delivered.
6. Fees – All costs relating to the goods from the time they are delivered
– All unloading costs to receive the goods at the means of transport at the specified place (except in cases where the seller has borne them according to the contract)
– Costs incurred if the buyer fails to fulfill his obligations
* Special: If applicable, all other taxes and duties as well as import customs clearance costs shall be borne by the buyer.
– Unloading costs at destination and customs clearance costs
– Also includes all costs to complete export procedures of goods.
7. Delivery notice
Fully notify the seller of the location and time of delivery. – Inform the buyer of the necessary information so that the buyer can take the usual measures necessary to receive the goods.
8. Proof of delivery – Accept proof of delivery provided by seller – Provide documents to the buyer to receive the goods (of course at their own expense)
9. Inspection – Packaging – Marking of goods – There is no obligation to pay these fees, except for mandatory assessment by the competent authority in the exporting country. The seller must pay the costs of inspection necessary for the goods to be delivered.
10. Other obligations and responsibilities
– Must promptly notify the seller of security information requirements.
– The buyer must reimburse the seller for all costs and fees incurred by the seller in obtaining or assisting in obtaining the documents.
– If required, the seller must promptly assist the buyer in obtaining, at the buyer’s request (at the buyer’s risk and expense), any documents and information, including security information, that the buyer needs for the carriage of the goods to the final destination from the named place.
* Special: The seller shall reimburse the buyer for all costs and expenses incurred by the buyer in obtaining documents and information.

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