What is DAP?
DAP stands for Delivered-at-place and essentially means that a seller has agreed to pay all the costs, including transportation costs, and is ready to incur any probable losses of moving cargo from origin to destination. The buyer’s responsibilities include carrying out all import formalities and paying for unloading, import duties, and clearance or local taxes after the shipment arrives at the destination port.
What is DDP?
DDP stands for Delivered Duty Paid. This Incoterm states that the seller is responsible for all costs and risks related to the goods’ movement from origin to destination port until the buyer receives them. This is the Incoterm that places maximum responsibility on the seller while the buyer is only responsible for receiving his cargo and unloading it.
Just like Delivered-at-place, DDP applies to all modes or a combination of modes of transportation. DDP must also be accompanied by the destination port’s name wherever mentioned within the agreement or other shipping documents.
DDP vs DAP
DDP shipping services vary only slightly from DAP shipping procedures. The significant distinction separating the two Incoterms is that DDP shipping services ensure the cargo arrives at the buyer’s physical location after the shipment is imported. By comparison, DAP shipping services are only responsible for ensuring the cargo arrives at the country’s drop-off location.
While DDU is usually the standard, some sellers use a DDP model.
How to make your customers happy
What are the consequences for foreign customers? If VAT and/or customs exceed the exemption limits, all duties must be paid on the doorstep upon receipt of the consignment. If the recipient is not present at the time of delivery or the outstanding amount cannot be paid, a collection invitation will be left for the consignment.
Please note: If you deliver your goods DAP and do not communicate this clearly when the order is placed in the online shop, the resulting customs duties may irritate your foreign customers.
