These international commercial terms (incoterms for short) define the responsibilities of sellers, shippers, and buyers. Set in place by the International Chamber of Commerce (ICC), DDP, DAP, and DAT are some of the most commonly used shipping terms.
Under DDP incoterms, shipping goods to the destination country is the seller’s responsibility. Delivered at Place (DAP), formerly known as Delivered Duty Unpaid (DDU), is an agreement where the seller takes on partial responsibility. Once the seller has delivered the goods, the risk transfers to the buyer. In contrast, DAT is where the buyer is responsible for paying customs duties and unloading the goods at their final destination.
Find out which incoterm best suits your sales contract as we delve into the difference between DDP, DAP, and DAT.