DAP requires fewer documentation from the vendor and is less expensive. DDP gives the seller more control over packing, delivery, and customs clearance. To reduce their losses, DDP allows sellers to include shipping, insurance, and logistics fees in the overall freight cost.
The Buyer is only responsible for unloading under DDP. Everything else is the Seller's responsibility, including packing, labelling, freight, Customs clearance, tariffs, and taxes. In contrast, under DAP, the buyer is responsible not just for unloading but also for Customs clearance, tariffs, and taxes.
The International Chamber of Commerce (ICC) has established a set of commercial words relevant to international commercial laws known as Incoterms.
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