DDP, DAP and DAT: Key Differences for Azerbaijan Importers

What are Incoterms?

Incoterms (International Commercial Terms) are standardized rules defining obligations between buyer and seller in international trade. They determine when the seller "delivers" goods to the buyer, and who pays transport, insurance, and customs costs.

DDP — Delivered Duty Paid

Under DDP, the seller takes on all obligations:

• Seller pays all transport costs
• Seller pays Azerbaijan import customs duty
• Seller pays VAT
• Buyer simply receives goods at their premises

Advantages for Azerbaijan importer:

• Minimum risk
• Price transparency — no additional customs on top of CIF
• No need to deal with customs process

Disadvantages:

• Overall price is higher as seller builds in costs
• Azerbaijani customs process managed by seller (accountability issue)

DAP — Delivered at Place

Under DAP:

• Seller delivers goods to the specified point in Azerbaijan
• Buyer (Azerbaijan importer) pays import customs duty
• Buyer pays VAT

When to choose DAP:

• When you know Azerbaijani customs procedures well
• When working with a licensed customs broker like Trazeroad
• When you want to manage customs costs yourself

Comparison Table

Recommendation for Azerbaijan Importers

For China imports: DAP is advantageous since Chinese sellers inflate DDP prices significantly.

For Turkey imports: Both DAP and DDP are viable.

For Europe imports: DAP is usually more favorable.