Although both of these two incoterms have many common characteristics, there are some meaningful differences exist between DAP Incoterms 2010 and DDP Incoterms 2010.
Today I want to mention the differences between DAP Incoterms and DDP Incoterms according to latest ICC rules of international commercial terms.
Before going forward to the subject, first of all let me make the definitions of both trade terms according to current incoterms rules:
Secondly I would like to bring your attention to similarities of these two incoterms article by article as follows:
- Both DAP and DDP could be used with any mode of transport including multimodal carriage.
- Exporter must clear goods for export custom formalities under both incoterms.
- Exporter delivers goods to the importer not in his country but, in most cases, within a pre-determined place at the importer's country. As a result these two incoterms are known as sale on arrival incoterm.
- Under both incoterms importer must be unloading the goods from the arriving means of conveyance at the named place of destination.
Differences between DAT and DAP:
Import Custom Clearance
- Under DAP incoterms import custom clearence must be made by the importer. All import duties should be paid by the importer.
- Under DDP incoterms import custom clearence must be made by the exporter. All import duties should also be paid by the exporter.
Important Note: DDP represents the maximum obligation for the exporter.