ENTREPRENEURIAL OPERATIONS
SUPPLY CHAIN MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Delivered at Place (DAP)
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Delivered Duty Paid (DDP)
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Free Alongside Ship (FAS)
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Free on Board (FOB)
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Cost and Freight
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Detailed explanation-1: -DDP indicates that the seller (exporter) assumes all the risk and transportation costs. The seller must also clear the goods for export at the shipping port and import at the destination. Moreover, the seller must pay export and import duties for goods shipped under DDP.
Detailed explanation-2: -Under the DDP Incoterms®, the seller assumes all responsibilities and costs, including import clearance and payment of taxes and/or import duty (e.g. VAT, GST), for delivering the goods to the named place of destination.
Detailed explanation-3: -Under the Delivered Duty Paid (DDP) Incoterm rules, the seller assumes all responsibilities and costs for delivering the goods to the named place of destination. The seller must pay both export and import formalities, fees, duties and taxes.