|
Comparison Aspect |
FOB (Free On Board) |
DAP (Delivered At Place) |
|
Core Responsibility |
Seller is responsible for loading goods onto the vessel and bears risks/costs before shipment. |
Seller arranges transportation to the named destination but does not handle import clearance; buyer manages unloading and import duties. |
|
Risk Transfer |
Risk transfers to the buyer once goods are loaded onto the vessel at the port of shipment. |
Risk transfers when goods arrive at the destination and are placed at the buyer’s disposal. |
|
Cost Liability |
Buyer pays: - International freight - Insurance - Import customs and taxes. |
Seller pays: - Freight to the destination - Export customs fees. Buyer pays: - Unloading costs - Import taxes. |
|
Transport Arrangement |
Buyer arranges shipping and notifies the seller of details. |
Seller arranges transportation to the destination. |
|
Insurance |
Insurance is optional for the buyer. |
Insurance is typically arranged by the buyer (not required by the seller). |
|
Export Procedures |
Seller handles export clearance and provides documents (e.g., bill of lading). |
Seller handles export clearance and provides documents. |
|
Import Procedures |
Buyer manages import clearance and pays taxes. |
Buyer manages import clearance and pays taxes. |
|
Applicable Transport Mode |
Maritime or inland waterway transport. |
Any transport mode (e.g., sea, air, road). |
|
Typical Scenarios |
Used when buyers want control over logistics (e.g., buyer-designated freight forwarder). |
Chosen when sellers prefer to manage transportation to the destination but avoid import obligations (e.g., cross-border B2B transactions). |
