Difference between EX Works and DAP incoterms | EX Works vs DAP (2024)

Ex Works is the incoterm in which seller deliverthegoods to buyer at their loading area, and buyer arrange everything staring fromloading the cargo at seller's premises to unloading at buyer's premises atdestination.

Seller bears the cost of warehousing, packingand keeps the goods at their loading area, buyer bears the cost of furtheractivities, which are loading at seller's premises, export clearance (withduties if required), primary transportation, origin and destination terminalhandling charges, freight, insurance, import clearance (with duties ifrequired), transportation to buyer's premises and unloading. At the time ofexport clearance, seller's provides required statutory documents andauthorizations.

Delivered at place or DAP is the incoterm whereseller delivers the goods at named place, till that point all risks are lieswith the seller and all risks & responsibilities transferred fromseller to buyer at that point.

Seller bears the cost for maximum activities,which are warehousing, packing, primary transportation, export clearance (withduties if required), terminal handling charges at origin, freight, destinationterminal handling charges and the transportation till the final place ofdelivery or named place. Buyer bears the cost of import clearance (with dutiesif required) and unloading at final place of delivery.

DAP belongs to D group and Ex Works belongs to Egroup of incoterms.
Under both incoterms, warehousing and packingaretaken care by seller, under both incoterms import clearance and unloading istaken care buyer.

Differences:

1. In Ex Works seller hands over the cargo tobuyer at seller's premises, but in DAP seller delivers the goods at named placeusually at buyer's country.

2. In Ex Works buyer does export clearance withthe help of seller (seller provides all necessary documents), in DAP sellerdoes export clearance.

3. In Ex Works buyer pays for the freight but inDAP seller pays for the freight.

4. In Ex Works risk is less for seller and highfor buyer but in DAP risk is high for seller and less for buyer.