EXW vs DAP – who pays for what?
EXW is Ex Works and DAP is Delivered at Place. We compare who pays for transport, customs clearance and duty, and where risk passes to the buyer.
Key differences
Under DAP, the seller also covers export clearance, transport to the port or terminal, loading for main carriage and the main freight. Under EXW, the buyer pays for this instead. The two rules also differ in the point at which risk passes to the buyer.
- Export clearance
- EXWBuyerDAPSeller
- Transport to the port or terminal
- EXWBuyerDAPSeller
- Loading for main carriage
- EXWBuyerDAPSeller
- Main carriage (freight)
- EXWBuyerDAPSeller
- Risk passes
- EXWAt the seller’s premises, before loadingDAPAt the place of destination, before unloading
Full cost breakdown
| Cost | EXW | DAP |
|---|---|---|
| Export clearance | Buyer | Seller |
| Transport to the port or terminal | Buyer | Seller |
| Loading for main carriage | Buyer | Seller |
| Main carriage (freight) | Buyer | Seller |
| Insurance | No obligation | No obligation |
| Unloading at destination | Buyer | Buyer |
| Import clearance | Buyer | Buyer |
| Import duty and VAT | Buyer | Buyer |
| Risk passes | At the seller’s premises (or another agreed place), when the goods are ready for collection – before loading. | At the place of destination, when the goods are ready for unloading from the arriving means of transport. |
| Mode of transport | Any mode of transport (sea, rail, air, road) | Any mode of transport (sea, rail, air, road) |
Notes
- EXW – export clearance: formally the buyer’s responsibility. In practice, the export declaration in China is filed by the supplier or a Chinese customs broker, because a foreign buyer is not registered with customs there.
- Unloading at destination: if unloading costs are included in the contract of carriage concluded by the seller, the seller pays them and cannot charge them to the buyer afterwards.
What to watch for when importing from China
EXW Ex Works
Once the goods are ready for collection, everything else is your responsibility – including loading and export clearance. In China, the export declaration is filed by a company registered with Chinese customs – usually the supplier or a Chinese customs broker – so you will need their help anyway. Agree in writing who loads the goods and who handles export clearance. If the goods are damaged during loading, the loss is yours.
More about EXW →DAP Delivered at Place
The supplier delivers the goods to the agreed address, but import clearance, duty and VAT are your responsibility. A “DAP Warsaw” price is therefore not the final price – add duty, VAT and the cost of customs clearance. State the exact address, because “DAP Poland” is not enough. Unloading is also your responsibility.
More about DAP →When to use EXW and when to use DAP?
- EXW – when you want to control transport right from the factory, and your freight forwarder arranges collection of the goods and export clearance in China.
- DAP – when the supplier is to deliver the goods to your address, and you want to keep customs clearance in your own hands. With a new supplier, it is a safer alternative to DDP.
Buying on EXW terms? You choose the forwarder
We organise transport from China – by rail, sea or air – together with customs clearance in Poland and cargo insurance. Send us your cargo details and we will prepare a quote tailored to your shipment.
Request a quoteFAQ
What is the main difference between EXW and DAP?
Under DAP, the seller also covers export clearance, transport to the port or terminal, loading for main carriage and the main freight. Under EXW, the buyer pays for this instead. The two rules also differ in the point at which risk passes to the buyer.
Where does risk pass to the buyer under EXW?
At the seller’s premises (or another agreed place), when the goods are ready for collection – before loading.
Where does risk pass to the buyer under DAP?
At the place of destination, when the goods are ready for unloading from the arriving means of transport.
Can EXW and DAP be used for rail freight from China?
Yes. EXW and DAP can be used with any mode of transport: sea (including containers), rail, air and road.
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Incoterms® is a registered trademark of the International Chamber of Commerce (ICC). This page is an independent, simplified summary of how costs and risks are divided – it is not affiliated with or approved by the ICC. When drafting contracts, use the official text of the Incoterms® 2020 rules published by the ICC.