| Aspect of Comparison | EXW (Ex Works) | DDP (Delivered Duty Paid) |
| Main Responsibility | The seller only provides the goods at their factory or warehouse and has no involvement in transportation, insurance, or any related procedures. | The seller takes on the task of transporting the goods to the buyer's designated destination, such as their warehouse. They also bear all the costs and risks associated with the transportation, including import customs clearance and taxes. |
| Risk Transfer | Once the goods are handed over to the buyer at the factory or warehouse, the risk is immediately transferred to the buyer. | The risk is transferred to the buyer when the goods are delivered at the destination. |
| Cost Responsibility | The buyer is accountable for all costs, which cover transportation, insurance, and both export and import customs procedures and taxes. | The seller covers all costs, namely international freight, export and import customs fees, and all types of taxes, including tariffs and VAT. |
| Export Procedures | The seller is not obligated to handle export clearance; this is the responsibility of the buyer. | The seller must complete the export customs process and supply relevant documents like the bill of lading. |
| Import Procedures | The buyer has to manage import customs clearance and pay the applicable taxes on their own. | The seller is responsible for handling import customs clearance and paying all the associated duties and taxes. |
| Applicable Transport Modes | It can be used with any form of transportation, such as road, air, or sea. | It is also applicable to any mode of transportation, including sea, rail, or air. |
| Typical Usage Scenarios | This term is suitable when the buyer is familiar with the export - related processes or wants to have full control over the logistics, for example, in local sourcing situations. | It is often chosen when the seller is willing to take on the entire responsibility, including import clearance, or when the buyer lacks the ability to handle cross - border logistics, like in the B2C cross - border e - commerce model. |
Summary of Key Differences
Extent of Responsibility:
Points to Note
