由 lltx1822 Application of DAP and DDP in Cross-Border E-commerce: Differences in Modes and Practical Challenges
With the vigorous development of cross-border e-commerce, the two trade terms, DAP and DDP, are increasingly widely used in the field of cross-border e-commerce. However, there are differences in their application modes, and they face different practical challenges.
In terms of application modes, DAP is often used by some buyers with certain customs clearance capabilities in cross-border e-commerce. For example, some overseas cross-border e-commerce sellers who have certain customs clearance resources and experience may choose the DAP term when purchasing goods from China. Chinese cross-border e-commerce suppliers transport the goods to the overseas warehouses or ports designated by the buyers. After completing the delivery, the buyers handle the customs clearance procedures on their own, pick up the goods, and carry out subsequent sales. In this mode, cross-border e-commerce suppliers can focus on the supply of goods and international transportation, reducing investment in the import customs clearance link. DDP, on the other hand, is more suitable for consumers who hope to enjoy a convenient shopping experience in cross-border e-commerce. Some large cross-border e-commerce platforms adopt the DDP mode to enhance customer satisfaction. The platform or the seller assumes the responsibilities of import customs clearance and tax payment, delivering the goods directly to the consumers. Consumers do not need to worry about any customs clearance and tax issues, achieving a “one-stop” shopping experience.
However, both DAP and DDP face many challenges in cross-border e-commerce practice. For DAP, cross-border e-commerce suppliers may face the problem of being unable to timely understand the customs clearance progress after the goods are delivered, resulting in an inability to accurately grasp the time when the goods reach the consumers, affecting the customer experience. At the same time, if the buyer encounters problems during the customs clearance process, they may blame the supplier, triggering disputes. The challenges faced by DDP are even greater. First, there is the complexity of customs clearance and tax calculation. The customs policies and tax regulations of different countries vary widely. Cross-border e-commerce sellers or platforms need to accurately understand and calculate various taxes and fees, which places high demands on their professional capabilities and information collection capabilities. Once there are calculation errors or misunderstandings of policies, it may lead to additional cost expenditures. Second, under the DDP mode, sellers or platforms need to advance a large amount of funds for paying import taxes and fees, which puts great pressure on the capital flow. Especially for some small and medium-sized cross-border e-commerce enterprises, capital turnover may face difficulties. In addition, cross-border e-commerce involves a wide variety of goods, and the customs clearance requirements for some special goods (such as cosmetics and food) are more stringent, increasing the difficulty and risks of customs clearance.