Analysis of the Advantages of DAP and DDP: Applicability Selection in Different Trade Scenarios
DAP and DDP each have their own advantages in different trade scenarios. Enterprises need to reasonably select trade terms according to their actual situations and market demands to maximize their interests.
DAP has obvious advantages in the following trade scenarios. For buyers who are familiar with the import customs clearance process and have their own customs clearance teams or reliable customs clearance agents, DAP is a good choice. For example, large multinational enterprises with branches in multiple countries around the world, which have rich import customs clearance experience and resources, can use the DAP term to take independent control of the customs clearance process, pick up the goods flexibly according to their own arrangements, and better connect subsequent production and sales activities. In addition, when the customs policies of the country where the goods’ destination is located are complex and changeable and the seller has difficulty accurately grasping them, choosing DAP can avoid customs clearance risks and additional costs caused by unfamiliarity with the policies. At the same time, for some small and medium-sized sellers, especially those lacking international logistics and customs clearance experience, DAP can reduce their responsibilities and pressures, enabling them to focus on the production and export transportation of goods and reducing operational risks.
DDP is suitable for different trade scenarios. When the buyer is new to international trade, has no knowledge of the import customs clearance process, or lacks relevant resources and capabilities, DDP provides great convenience for the buyer. The seller assumes all customs clearance and delivery responsibilities, and the buyer only needs to receive the goods after they arrive at the destination without having to worry about complex import procedures and tax payments, which greatly lowers the trade threshold for the buyer. For example, when some small retailers purchase goods from abroad, using the DDP term allows them to obtain the goods easily and quickly put them into market sales. In addition, in a highly competitive market environment, sellers may choose the DDP term to attract customers and enhance their competitiveness. By providing one-stop delivery services, sellers can meet customers’ personalized needs, improve customer satisfaction and loyalty, and thus stand out in the market. Moreover, when the value of the goods is high or the nature of the goods is special and requires professional customs clearance knowledge and skills, DDP can ensure the smooth customs clearance of the goods and reduce the risk of goods loss caused by customs clearance problems.