Cost & risk allocation (simplified)
| Term | Seller | Buyer |
|---|---|---|
| EXW | Minimal obligations; buyer arranges export/import | Transport, export & import, duties & taxes |
| CIF | Sea freight + insurance to destination | Import clearance, duties & taxes |
| DAP | Delivers to named place, uncleared | Import clearance, duties & taxes |
| DDP | Delivers duty paid incl. import clearance | Receives ready-for-unloading goods |
DDP implications
- Requires legal & tax capability in destination country
- Prefer fiscal representation / local entity to manage VAT
- Robust customs master data to avoid under/over-payments
- Clear pricing model: landed cost ownership by seller