The term „Incoterms“
Incoterms defines the rules of the game, respectively the payment and delivery modalities in international business. There are currently 11 different Incoterms, two of which are DDP and DAP. These are for e-commerce and that is for ECommerce-Fullfillment of great importance.
In the case of a DDP delivery (Delivered Duty Paid / Delivered duty paid), the seller must deliver the goods to a destination in the importing country at his own expense and risk and complete all the formalities involved, as well as bear all import duties in addition to all costs. One can say that the content of DDP corresponds to DAP plus customs and tax processing. The foreign customer no longer has to pay anything when receiving the goods. With this variant, the sender has the goods cleared by a partner, such as DPD, in the EU. After that, there are no further duties or VAT.
DAP stands for Delivery at Place. This means the seller is responsible for the delivery of the goods including transport costs to the destination. This does not include the costs of completing all the necessary import formalities. These are to be borne by the buyer.
For foreign customers, this means that if the VAT and / or customs are above the exemption limits, the recipient must pay at the front door upon receipt. If no one is present, a pick-up invitation will be left.