由 lltx1822 In-Depth Analysis of DAP and DDP: Differences in Cost Composition and Cost Control
There are significant differences in cost composition and cost control between DAP and DDP, which directly affect the economic benefits and decision-making of both trading parties.
Under the DAP term, the seller’s costs are mainly concentrated on the links before the goods are delivered to the buyer. These include the production cost of the goods, domestic transportation costs, international transportation costs (such as sea, air, or land freight), insurance costs, and other related expenses for transporting the goods to the designated destination, such as loading and unloading fees and warehousing fees (before delivery). Since the seller is not responsible for import customs clearance and paying import taxes, these costs are excluded from the seller’s cost scope. For example, when a Chinese furniture enterprise exports furniture to the United States using the DAP term, its costs mainly cover raw material procurement, transportation from the domestic factory to the port, international sea freight, cargo transportation insurance premiums, and the cost of unloading the goods into the designated warehouse at the port of destination. This cost composition is relatively simple, allowing the seller to estimate costs more clearly and facilitating cost control and price calculation.
In contrast, the cost composition for the seller under the DDP term is more complex. In addition to all the costs in the DAP mode, the seller also needs to bear a series of costs generated during the import customs clearance process, such as import duties, value-added tax, consumption tax, and handling fees for import formalities (such as customs declaration fees and inspection and quarantine fees). Moreover, if problems occur during customs clearance, such as customs inspections of the goods and valuation adjustments, additional costs may be incurred. Taking the example of the Chinese furniture enterprise exporting to the United States again, when using the DDP term, in addition to the above-mentioned costs, the enterprise also needs to accurately calculate and pay the corresponding customs duties and value-added tax according to the regulations of the US Customs and may also need to pay the service fees of the customs clearance agent. These additional costs not only increase the seller’s capital investment but also make cost accounting more difficult, putting forward higher requirements for the seller’s financial planning and risk management capabilities.
In terms of cost control, DAP sellers can reduce transportation and insurance costs by optimizing logistics transportation plans and selecting appropriate insurance products. With clearly defined responsibility scopes, sellers can better control foreseeable costs. DDP sellers, on the other hand, need to control costs in multiple links, including understanding the tax policies of the importing country in advance, closely cooperating with customs clearance agents to reduce customs clearance costs, and rationally planning funds to cope with possible tax expenditures. At the same time, DDP sellers also need to establish a sound cost monitoring mechanism to promptly respond to possible cost fluctuations.