The difference of DAP and DDP terms

- Jun 08, 2020-

1. DAP is the local delivery, bai means that the seller has delivered the goods to the destination specified by the buyer by means of transportation du, and then the goods loaded on the transportation means (no need to be unloaded) are handed over to the buyer for disposal. delivery.

DDP means that the seller completes the import customs clearance procedures at the designated destination, and delivers the goods that have not been unloaded on the delivery vehicle to the buyer to complete the delivery.

2. The delivery place of DAP can be either a designated place on the border between the two countries, a ship on the port of destination, or a place on the imported mainland.

Under the delivery conditions of DDP, the seller delivered the goods at the designated destination after going through the export customs clearance procedure, which is actually the seller has shipped the goods into the importer's domestic market. If the seller has difficulty directly going through the import formalities, he can also ask the buyer to assist in the process. If the seller cannot directly or indirectly obtain an import license or go through import formalities, the DDP term should not be used.

3. The DAP seller has no obligation to enter into an insurance contract with the buyer, but because the risk of the entire transportation process is borne by the seller, the seller usually circumvents the risk of cargo transportation through insurance.

DDP poses a much greater risk to sellers and should be said to be the most risky trade clause.