Customs Broker, Freight Forwarding & Trade Compliance Services

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). Air Freight Carriers

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.

If you’re the seller under DDP or the buyer under DAP, you will need to be familiar with the Customs clearance, and duties and taxes of the importing country. For more than 160 countries around the world, taxes may include a value-added tax (VAT). At an estimated 20% to 30%, VAT could change dramatically impact your product pricing.

Find your Incoterms cost savings, as Matt Parrott explains the difference between DDP v. DAP Incoterms.

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