The term DAP stands for Delivered at Place. The letters DAP are followed by a place. DAP Chicago, for example, stands for Delivered at Place Chicago. DAP refers to when the dealer places the products at the purchaser’s disposal on the arrival mode of transport, ready for offloading at the specified destination. The seller assumes all risks associated with transporting the goods to the specified location.
Let’s use a quick example to illustrate DAP delivery words. You are a machine seller based in the United Arab Emirates, specifically in Dubai. The purchaser is based in Chicago.You are a products seller who has entered into an agreement with the buyer to sell the goods at a DAP Chicago cost of USD 5050. The selling price of goods in this case is USD 5050 DAP Chicago. You (the seller) arrange for the goods to be transported to the Dubai port, pay for all expenses in Dubai, like clearing customs, and pay for ocean freight or air freight up to Chicago.
A freight forwarder should be hired to customs clearance the cargo in Chicago and send the goods to the buyer’s doorstep. In other words, under the DAP terms of delivery, the seller is responsible for all delivery costs up to the buyer’s location in Chicago, with the exception of any importing country duty or fee.
DDP stands for “Delivery Duty Paid” or “Door To Door Cargo Dubai To PakistanDelivery Duty Paid.” In other terms, the sale price covers all costs up to the purchaser’s location, like duty or tax. DDP refers to when the seller places the goods at the buyer’s disposal, cleared for import on the arriving mode of transport and ready for unloading at the specified destination. The seller is responsible for all costs and risks associated with transporting the goods to their final destination, as well as the duty to clear the goods not just for export but even for import, to pay any duty imposed on both export and import, as well as to complete all customs formalities.
I’ll use a quick example to illustrate DDP terms of delivery. You’re a machinery vendor in the Dubai. The purchaser is based in Chicago. You are a goods seller who has entered into a deal with the buyer and agreed to sell the goods for USD 5250 DDP Chicago. The sale price of the products in this case is USD 5250 DDP Chicago. You (the seller) plan for the products to be transported to Dubai port, pay for all expenses in Dubai, including clearing customs, pay for sea or air freight up to Chicago, assign a freight forwarder to logistics clearance the Cargo Services In Dubai To Pakistan, and deliver the goods to the purchaser’s doorstep after paying any importing country tax or duty.In many other words, under the DDP terms of delivery, the vendor is obliged for all delivery costs up to the door step of the buyer’s location in Chicago, along with any duty or tax imposed by the importing country. Insurance must be negotiated by the vendor in DDP terms, as the DDP price covers the insurance costs as well.
Basically, the distinction is that under DDP, it is the seller’s necessary to report all tax procedures, clearance the goods, and pay any duties, while under DDP, it is the buyer’s responsibility. DAP, on the other hand, makes the buyer liable for any duty or taxation.