What makes me confusing is therere also some mysterious descriptions. I saw many people are using a term like static dispatch and dynamic dispatch. It doesnt matter whether it is static or dynamic.
For more than 160 countries around the world, taxes may include a value-added tax (VAT). 8 AFAIK, the term dispatch means just a method resolution and calling. A dispatch is a message or report that is sent, for example, by army officers or government officials to their headquarters. If you’re the seller under DDP or the buyer under DAP, you will need to be familiar with the Customs clearance, and duties and taxes of the importing country. Depending upon which Incoterms you and your supplier negotiate, will determine a which point you become responsible for certain risks and costs. Conversely, under DAP, the buyer is responsible for not only the unloading, but the Customs clearance, duties, and taxes as well. The Seller is responsible for everything else including packing, labeling, freight, Customs clearance, duties, and taxes. Under DDP, the Buyer is only responsible for unloading. Matt Parrott, Deringer’s Director of Transportation, provides insight regarding the differences between DDP (Delivered Duty Paid) and DAP (Delivered at Place). Knowing your Incoterms can help you more reliably project true shipping costs and establish your product pricing.
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