diff --git a/src/config.jl b/src/config.jl
index 3c6c97e3..f7b74c01 100644
--- a/src/config.jl
+++ b/src/config.jl
@@ -20,9 +20,43 @@ end
 
 Tag(::Nothing, ::Type{V}) where {V} = nothing
 
+# A tag `T1` provably nests a tag `T2` when `T2` appears inside `T1`'s type
+# structure: in the seeded value type `V1`, or captured by the function type `F1`
+# (closure/struct fields and type parameters). In that case `T1` was necessarily
+# created while `T2`'s derivative was already in progress, so `Dual{T1}` must be
+# composed outside `Dual{T2}` — independent of `tagcount`, whose values can be
+# baked in an arbitrary order by precompilation (see #714).
+function _containstag(@nospecialize(T), @nospecialize(target), seen::Base.IdSet{Any}, depth::Int)
+    T === target && return true
+    depth <= 0 && return false
+    if T isa Union
+        return _containstag(T.a, target, seen, depth - 1) ||
+               _containstag(T.b, target, seen, depth - 1)
+    elseif T isa UnionAll
+        return _containstag(Base.unwrap_unionall(T), target, seen, depth - 1)
+    end
+    T isa DataType || return false
+    T in seen && return false
+    push!(seen, T)
+    for p in T.parameters
+        p isa Type && _containstag(p, target, seen, depth - 1) && return true
+    end
+    if isconcretetype(T) && isstructtype(T)
+        for ft in fieldtypes(T)
+            ft isa Type && _containstag(ft, target, seen, depth - 1) && return true
+        end
+    end
+    return false
+end
+
+@generated function containstag(::Type{T1}, ::Type{T2}) where {T1,T2}
+    return _containstag(T1, T2, Base.IdSet{Any}(), 32) ? :(true) : :(false)
+end
 
 @inline function ≺(::Type{Tag{F1,V1}}, ::Type{Tag{F2,V2}}) where {F1,V1,F2,V2}
-    tagcount(Tag{F1,V1}) < tagcount(Tag{F2,V2})
+    containstag(Tag{F1,V1}, Tag{F2,V2}) && return false
+    containstag(Tag{F2,V2}, Tag{F1,V1}) && return true
+    return tagcount(Tag{F1,V1}) < tagcount(Tag{F2,V2})
 end
 
 struct InvalidTagException{E,O} <: Exception
diff --git a/test/ConfusionTest.jl b/test/ConfusionTest.jl
index 13c62ae9..13949451 100644
--- a/test/ConfusionTest.jl
+++ b/test/ConfusionTest.jl
@@ -72,5 +72,56 @@ end
     end
 end == 0.0
 
+# Nested differentiation must not depend on tagcount instantiation order (#714) #
+#-------------------------------------------------------------------------------#
+
+# containstag: nesting through the seeded value type V
+struct TagOrderOuterMarker end
+struct TagOrderInnerMarker end
+let Tag = ForwardDiff.Tag, Dual = ForwardDiff.Dual
+    Touter = Tag{TagOrderOuterMarker, Float64}
+    Tinner = Tag{TagOrderInnerMarker, Dual{Touter, Float64, 1}}
+    @test ForwardDiff.containstag(Tinner, Touter)
+    @test !ForwardDiff.containstag(Touter, Tinner)
+    # bake tagcounts in inverted order: containment must win regardless
+    ForwardDiff.tagcount(Tinner)
+    ForwardDiff.tagcount(Touter)
+    @test ForwardDiff.:(≺)(Touter, Tinner)
+    @test !ForwardDiff.:(≺)(Tinner, Touter)
+end
+
+# Second derivative with tagcount baked in inverted order, as precompilation can
+# do: the inner tag nests the outer through V, so ordering must not consult
+# tagcount at all.
+struct TagOrderInnerV end
+(::TagOrderInnerV)(y) = y^3
+struct TagOrderOuterV end
+(::TagOrderOuterV)(x) = ForwardDiff.derivative(TagOrderInnerV(), x)
+ForwardDiff.tagcount(ForwardDiff.Tag{TagOrderInnerV, ForwardDiff.Dual{ForwardDiff.Tag{TagOrderOuterV, Float64}, Float64, 1}})
+ForwardDiff.tagcount(ForwardDiff.Tag{TagOrderOuterV, Float64})
+@test ForwardDiff.derivative(TagOrderOuterV(), 2.0) ≈ 12.0
+
+# Same with the outer perturbation entering through a capture in F (both tags
+# have V === Float64): nesting is only visible through the callable's fields.
+struct TagOrderOuterF end
+struct TagOrderInnerF
+    x_dual::ForwardDiff.Dual{ForwardDiff.Tag{TagOrderOuterF, Float64}, Float64, 1}
+end
+(c::TagOrderInnerF)(y) = sin(c.x_dual * y)
+(::TagOrderOuterF)(x_dual::ForwardDiff.Dual{ForwardDiff.Tag{TagOrderOuterF, Float64}, Float64, 1}) =
+    ForwardDiff.derivative(TagOrderInnerF(x_dual), 1.0)
+ForwardDiff.tagcount(ForwardDiff.Tag{TagOrderInnerF, Float64})
+ForwardDiff.tagcount(ForwardDiff.Tag{TagOrderOuterF, Float64})
+@test ForwardDiff.derivative(TagOrderOuterF(), 0.5) ≈ cos(0.5) - 0.5 * sin(0.5)
+
+# Three-level nesting where the innermost derivative is seeded with a plain
+# Float64 while the outer perturbations enter through closure captures. A
+# depth-only fast path mis-orders this case; it must keep working.
+let
+    inner_deriv(d) = ForwardDiff.derivative(y -> y^2 * d, 1.0)
+    middle_grad(v) = ForwardDiff.gradient(u -> sum(inner_deriv(ui) * ui for ui in u), v)
+    outer_fn(x) = sum(middle_grad([x, 2x]))
+    @test ForwardDiff.derivative(outer_fn, 0.5) ≈ 12.0
+end
 
 end # module