由 lltx1822 Comparison of Operational Processes of DAP and DDP: Differences in All Links from Shipment to Delivery
There are many differences in the operations of each link in the entire process from shipment to delivery between DAP and DDP, which reflect the different responsibility definitions and operational requirements of the two trade terms.
In the shipment link, the operations of DAP and DDP are basically similar. The seller needs to prepare the goods as stipulated in the contract, package them properly, and handle the export customs declaration procedures. The seller is required to provide necessary documents such as commercial invoices, packing lists, and customs declaration authorizations and declare the export of goods to the customs of the exporting country. For example, when a Chinese clothing enterprise exports clothing to France, whether using DAP or DDP, it needs to submit relevant documents to the customs after the goods are ready, complete the export customs declaration, and obtain the export release note.
After entering the transportation link, the differences between the two begin to emerge. Under the DAP term, the seller is responsible for transporting the goods to the designated destination, but the seller’s transportation responsibility terminates once the goods arrive at the destination. Taking sea transportation as an example, the seller only needs to transport the goods to the designated port in France and is responsible for unloading the goods from the ship and placing them at the designated location in the port. Under the DDP term, the seller is not only responsible for transporting the goods to the destination but also needs to ensure that the goods can successfully pass through the customs of the importing country and be delivered to the buyer after completing customs clearance procedures. This means that the seller needs to arrange the entire transportation of the goods from the exporting country to the importing country, including selecting appropriate transportation modes and routes, as well as handling various problems during the transportation process, such as goods transshipment and transit warehousing.
When the goods arrive at the destination, the operational differences between DAP and DDP become even more pronounced. Under the DAP mode, the seller completes the delivery obligation by placing the goods at the disposal of the buyer at the designated location. Subsequently, the buyer handles the import customs clearance, goods pickup, and other procedures on their own. The buyer needs to prepare relevant documents according to the regulations of the importing country, declare the import to the customs, pay customs duties and other taxes, and then pick up the goods. Under the DDP mode, the seller is responsible for handling the import customs clearance procedures, including filling in the import customs declaration form, submitting relevant goods documents (such as certificates of origin and quality inspection certificates), and paying import duties, value-added tax, and other taxes. Only after completing all customs clearance procedures and the goods are released by the customs can the seller deliver the goods to the buyer.
In addition, regarding the responsibilities after the goods are delivered, under the DAP term, the risks and responsibilities are transferred to the buyer once the goods are delivered. Under the DDP term, the seller only completes all obligations when the goods are delivered to the buyer. Before that, the seller bears all risks of loss or damage to the goods.