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Incoterms: DAP And DDP Shipping
Incoterms: DAP And DDP Shipping
Updated over 10 months ago

When shipping internationally with some carriers you will have the option to set different import/export settings for that shipment. These are called Incoterms.

Below explains what each of the options are

DAP – Delivered At Place

This essentially means that the customer pays the duty tax, from DHL's website:

"The seller bears the responsibility and risks to deliver the goods to a named place. The goods are deemed to be delivered when they are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. Parties are advised to specify as clearly as possible the point within the agreed place of destination, because risks transfer at this point from seller to buyer. The seller is required to clear the goods for export and the importer is responsible for effecting customs clearance, and paying any customs duties."

DDP – Delivered Duty Paid

This essentially means that the shipper pays the duty tax, from DHL's website:

"The seller is responsible for delivering the goods to the named place in the country of importation, including all costs and risks in bringing the goods to import destination. This includes duties, taxes and customs formalities."

Our default setting will be DDP unless you have chosen otherwise.

Free Carrier / Free On Board

Costs, risks and responsibilities are split fairly equally between the buyer and the seller of goods.

"The goods are placed on board the vessel by the seller at the port of shipment specified in the sales contract. The risk of loss or damage is transferred to the buyer when the goods pass the ship's rail."

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