Incoterms/delivery terms

International Commercial Terms (also known as Incoterms or delivery terms) are rules defining who pays customs duties and taxes (also shipping and insurance) for a cross-border purchase. Incoterms are generally determined by the seller, especially in transactions. AvaTax supports the following delivery terms:

CFR: Cost and Freight
CIF: Cost, Insurance, and Freight
CIP: Carrier and Insurance Paid to
CPT: Carriage Paid To
DAP: Delivered at Place
DDP: Delivered Duty Paid
DPU: Delivered at Place Unloaded
EXW: Ex Works
FAS: Free Alongside Ship
FCA: Free Carrier
FOB: Free on Board

For CDIT, most transactions will use DDP (Delivery customs duty Paid) and DAP (Delivered at Place).

DDP

DDP delivery terms match customer expectations for online retail. The DDP user experience is similar to buying domestically.

The seller pays the customs duties and taxes.
Customs duties and taxes are paid during online checkout.
This results in a better user experience.

DAP

DAP delivery terms can result in a poor user experience and more pain for E-Retailers:

The buyer pays customs duties and taxes.
Customs duties and taxes are paid at delivery when collected by the shipper.
This scenario is easiest for the seller.