Incoterms Used in International Air Cargo and the Advantages of DAP Delivery
Incoterms, one of the most important building blocks of international trade, are commercial rules that clarify the responsibilities and cost-sharing between the buyer and the seller. Determining the correct delivery method is particularly important in air cargo shipments for ensuring a smooth process and preventing disputes between the parties. In this article, we will discuss the commonly encountered types of Incoterms in international air transportation and the advantages of the DAP delivery method that we prefer as Ship to More.
What are Incoterms?
Incoterms (International Commercial Terms) are a set of standard rules created by the International Chamber of Commerce (ICC) that define the commercial obligations of the seller and buyer. These rules determine the responsibilities for transportation, insurance, customs clearance, delivery points, and who will bear the costs. The most commonly used Incoterms in air freight are as follows:
Commonly Used Incoterms in Air Freight:
- EXW (Ex Works): The seller delivers the products at their own premises. The buyer is responsible for transportation and all customs procedures.
- FCA (Free Carrier): The seller delivers the goods to the designated carrier. Responsibility transfers to the buyer from the point of international transport.
- CPT (Carriage Paid To): The seller pays the transportation costs, but the risk transfers to the buyer upon delivery to the carrier.
- CIP (Carriage and Insurance Paid To): Similar to CPT, but insurance during transport is provided by the seller.
- DAP (Delivered At Place): The product is transported by the seller to the designated address in the buyer's country. Customs duties and fees are the responsibility of the buyer.
- DDP (Delivered Duty Paid): The seller delivers the product to the buyer by paying all costs and taxes.
Why Do We Prefer DAP?
As Ship to More, we use the DAP (Delivered At Place) delivery method for all our shipments. This method has many advantages for both the buyer and the seller:
Advantages of DAP Delivery:
1. Operational Ease for the Seller: The seller delivers the shipment to the customer's address but does not take on customs duties and import procedures. This protects the seller from the complex regulations in different countries.
2. Control and Transparency for the Buyer: The buyer manages the customs processes in their own country. This situation provides customs planning and tax advantages, especially for large buyer companies.
3. Flexible and Cost-Effective: Compared to DDP, DAP offers lower costs for the seller. At the same time, it provides more convenience for the buyer compared to EXW and FCA because the product is delivered directly to their address.
4. Micro Export Compliant: Shipments made under the ETGB are compatible with micro export procedures when using the DAP delivery method. This provides a significant advantage, especially for e-commerce companies.
5. Fast and Trackable Delivery: As Ship to More, we manage every stage of your shipments on your behalf, making the process transparently trackable with tracking numbers.
Secure DAP Shipping with Ship to More
We simplify your international deliveries by managing them with DAP Incoterms, providing both operational ease and cost advantages. Your product is picked up from your address, the necessary documents are arranged, and it is delivered to the buyer's doorstep. Only customs duties are the responsibility of the buyer.
With DAP, the most efficient solution in air cargo, you can also take your place in cross-border markets quickly and effectively with the assurance of Ship to More!