Difference between EX Works and DAP incoterms | EX Works vs DAP

Ex Works is the incoterm in which seller deliver the goods to buyer at their loading area, and buyer arrange everything staring from loading the cargo at seller's premises to unloading at buyer's premises at destination.


Seller bears the cost of warehousing, packing and keeps the goods at their loading area, buyer bears the cost of further activities, which are loading at seller's premises, export clearance (with duties if required), primary transportation, origin and destination terminal handling charges, freight, insurance, import clearance (with duties if required), transportation to buyer's premises and unloading. At the time of export clearance, seller's provides required statutory documents and authorizations.

Delivered at place or DAP is the incoterm where seller delivers the goods at named place, till that point all risks are lies with the seller and all risks &  responsibilities transferred from seller to buyer at that point.

Seller bears the cost for maximum activities, which are warehousing, packing, primary transportation, export clearance (with duties if required), terminal handling charges at origin, freight, destination terminal handling charges and the transportation till the final place of delivery or named place. Buyer bears the cost of import clearance (with duties if required) and unloading at final place of delivery.

DAP belongs to D group and Ex Works belongs to E group of incoterms.
Under both incoterms, warehousing and packing are taken care by seller, under both incoterms import clearance and unloading is taken care buyer.



Differences:

1. In Ex Works seller hands over the cargo to buyer at seller's premises, but in DAP seller delivers the goods at named place usually at buyer's country.

2. In Ex Works buyer does export clearance with the help of seller (seller provides all necessary documents), in DAP seller does export clearance.

3. In Ex Works buyer pays for the freight but in DAP seller pays for the freight.

4. In Ex Works risk is less for seller and high for buyer but in DAP risk is high for seller and less for buyer.
 

Incoterms

EXW

DAP

Packaging charges

Seller

Seller

Loading charges

Buyer

Seller

Delivery to port/Place

Buyer

Seller

Export clearance, Duty & taxes

Buyer

Seller

Terminal handling (origin)

Buyer

Seller

Loading on carrier

Buyer

Seller

Freight cost (ocean/air/surface)

Buyer

Seller

Insurance charges

Buyer

Seller

Terminal handling (Destination)

Buyer

Seller

Delivery at destination

Buyer

Seller

Unloading at destination

Buyer

Buyer

Import clearance, Duty & taxes

Buyer

Buyer

 

Check below for all 11 incoterms:

EXW (Ex Works)

FCA (Free Carrier)

FAS (Free alongside ship)

FOB (Free on Board)

CFR (Cost and Freight)

CIF (Cost Insurance & Freight)

CPT (Carriage paid to)

CIP (Carriage & Insurance paid to)

DAP (Delivered at Place)

DPU (Delivered at place unloaded) – This is new incoterm introduced in 2020

DDP (Delivered duty paid)

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1 Comments

  1. Extremely useful information which you have shared here about export data This is a great way to enhance knowledge for us, and also beneficial for us. Thank you for sharing an article like this.

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