DAP (Delivered at Place)

DAP (Delivered at Place)

Incoterms, also known as international commercial terms, are set to eliminate or decrease confusions and conflicts between buyers and sellers in international trade and to facilitate the trade and commerce process globally. Incoterms were created by the International Chamber of Commerce (ICC) in 1936 and since then, they are updated on a regular basis to suit changing trade trends.
EXWFCACPTCIPDAPDPUDDPFASFOBCFRCIF
Free CarrierCarriage Paid ToCarriage Insurance Paid ToDelivered at PlaceDelivered at Place UnloadedDelivered Duty PaidFree Alongside ShipFree On BoardCost & FreightCost, Insurance & Freight
Charges/FeesEx Works
At a named place, the seller transfers the goods to the buyer; the buyer is responsible for all risks.1.) when seller loads goods to buyer’s carrier or 2.) when goods are at the buyer’s disposal & ready for unloading at a named placedwhen the goods are handed over to the seller’s nominated carrier at a named placewhen the goods are handed over to the seller’s nominated carrier at a named placewhen the goods are placed at the buyer’s disposal at a named place or agreed point within that placewhen the goods are delivered and unloaded at a named place or agreed point within that placewhen the goods are placed at the buyer’s disposal at a named place or agreed point within that placewhen goods are alongside the vessel nominated by the buyer at named portwhen goods are on board the vessel nominated by the buyer at named portwhen the goods are on board the vessel nominated by the seller at originwhen the goods are on board the vessel nominated by the seller at origin
Risks Transfer
Commercial InvoiceSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSeller
Packaging & QCSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSeller
Loading & DeliveryBuyerSellerSellerSellerSellerSellerSellerSellerSellerSellerSeller
Export Duty & TaxesBuyerSellerSellerSellerSellerSellerSellerSellerSellerSellerSeller
Origin Terminal HandlingBuyerBuyerSellerSellerSellerSellerSellerBuyerSellerSellerSeller
Cargo InsuranceNegotiableNegotiableNegotiableSellerNegotiableNegotiableNegotiableNegotiableNegotiableNegotiableSeller
Carriage ChargesBuyerBuyerSellerSellerSellerSellerSellerBuyerBuyerSellerSeller
Destination Terminal HandlingBuyerBuyerSellerSellerSellerSellerSellerBuyerBuyerBuyerBuyer
Delivery to DestinationBuyerBuyerSellerSellerSellerSellerSellerBuyerBuyerBuyerBuyer
Unloading at DestinationBuyerBuyerBuyerBuyerBuyerSellerBuyerBuyerBuyerBuyerBuyer
Import Duty & TaxesBuyerBuyerBuyerBuyerBuyerBuyerSellerBuyerBuyerBuyerBuyer
Incoterms 2020
DAP

DAP or ‘Delivered-at-Place’ is an international commerce phrase that refers to a deal in which the seller bears all expenses and responsibility for shipping from the country of origin to a specified destination.

The delivered-at-place incoterm applies to all modes of transportation, including intermodal, and is frequently followed by the location where the buyer takes responsibility, such as “DAP, Port of Shanghai.”

The seller is responsible for the majority of the shipping process under DAP, leaving the buyer with few responsibilities. This makes it one of the two most popular Incoterms, the other being Delivery Duty Paid (DDP), for sellers trying to stand out by providing excellent customer care to their customers.

The seller is fully responsible for all risks and costs from the country of origin to the agreed-upon destination, as well as appropriate packaging and all necessary paperwork, under the DAP Incoterm. When the shipment arrives at the specified location in the contract of sale, the buyer takes full responsibility and risk.

The buyer is also responsible for any expenses and risks associated with unloading at the specified location, as well as any further transit. The seller is in charge of customs clearance in the importing country, which includes supplying import licenses, proof of payment, and customs taxes and duties, among other things.

Seller’s Responsibility Under DAP

  • Goods delivery
  • Packaging and marking
  • Transportation in the country of origin
  • Transportation in the destination country
  • Customs handling fees and charges in the country of origin
  • Charges in the destination country
  • International freight

Buyer’s Responsibility Under DAP

  • Goods payment
  • Duties and taxes payment
  • Customs handling fees in the destination country

Insurance in DAP

Under the DAP Incoterm, neither party is required to provide cargo insurance.

However, most sellers exporting under DAP prefer to obtain insurance because of their major responsibility.

They may just cover the areas for which they are responsible. However, it is more probable that they provide insurance for the entire journey from beginning to end.

Make sure the insurance terms and conditions are included in the sales contract when arranging insurance under DAP.