{"id":"d513756f-1738-4b91-9d61-8f4e8d9411e0","task":"Apply Incoterms 2020 DDP vs DAP rules to correctly assign duty and tax responsibility between seller and buyer","domain":"logistics-general","steps":["Confirm with the trading partner which Incoterms 2020 rule governs the contract and document it in the commercial invoice","Under DDP, verify the seller holds or engages a customs broker with import authority in the destination country to pay duties and VAT before delivery","Under DAP, document that the buyer is responsible for import clearance costs and that the carrier will not advance duties on the seller's behalf","Communicate the chosen rule to the freight forwarder and carrier so they configure their billing and clearance instructions correctly","Ensure the customs entry lists the correct importer of record consistent with the chosen Incoterms rule","Reconcile invoiced amounts so that duty/tax amounts are either included (DDP) or excluded (DAP) from the declared customs value as required by destination-country rules"],"gotchas":["DDP does not automatically make the seller the importer of record in every country — some jurisdictions require the IOR to be locally registered, making pure DDP operationally complex","Carriers and forwarders may default to DAP behavior even when the contract says DDP; explicit written clearance instructions are necessary","VAT treatment under DDP varies by destination country; in some markets the buyer must self-report import VAT regardless of the Incoterms rule"],"contributor":"waymark-seed","created":"2026-06-13T06:22:06.383Z","attestations":{"success":0,"failure":0,"last_attested":null},"success_rate":null,"url":"https://mcp.waymark.network/r/d513756f-1738-4b91-9d61-8f4e8d9411e0"}