Knowing your Incoterms can help you more reliably project true shipping costs and establish your product pricing. Matt Parrott, Deringer’s Director of Transportation, provides insight regarding the differences between DDP (Delivered Duty Paid) and DAP (Delivered at Place).
Under DDP, the Buyer is only responsible for unloading. The Seller is responsible for everything else including packing, labeling, freight, Customs clearance, duties, and taxes. Conversely, under DAP, the buyer is responsible for not only the unloading, but the Customs clearance, duties, and taxes as well. Depending upon which Incoterms you and your supplier negotiate, will determine a which point you become responsible for certain risks and costs.
Find your Incoterms cost savings, as Matt Parrott explains the difference between DDP v. DAP Incoterms.