[PDF] KS Incoterms Changes FAQs - DDP to DAP

What are the advantages of using DAP vs DDP Incoterms?

• DDP Incoterms can be used for all transport modes. With DDP shipping, the seller has maximum responsibility and has to deliver the goods at the named place of destination in the buyer’s country. The greatest difference between DAP and DDP is that under DDP, the seller is also responsible for import duties and taxes.

What is the difference between DAP and DDP in terms of responsibility?

• The main difference between DDP and DAP is delivery to destination and who is responsible for import duty, taxes and security clearance. Under DDP, the seller assumes the maximum responsibility in costs and risk from the beginning to the end. Under DAP, the buyer bears the costs and taxes of import clearance.

What is the difference between DAP and DDP shipping?

• DAP and DDP shipping share many similarities. The critical distinction is that the seller lacks financial responsibility after the cargo arrives at the foreign location. While in a DDP agreement, the seller is responsible until the buyer receives the item; this is only true until it reaches the buyer's country in a DAP agreement.

Does the seller or buyer bear the risk and cost in a DDP arrangement?

• As with DAP, the seller in a DDP arrangement bears all of the operation’s risks and costs of shipping the products to a specified place in the country of import. But in a DDP contract, it is the seller, not the buyer, who also bears the import clearance costs and taxes.