CIF and DAP under Inco terms 2020

Distinguish between DAP and CIF under delivery rules

Delivered at Place  to a named place DAP and Cost, Insurance and Freight  at named place CIF are the two of eleven delivery rules for movement of goods under Incoterms 2020.

Let us discuss here the difference between both DAP and CIF delivery terms under Inco terms

First of all, CIF rule is meant for movement of goods on waterways, as it is known as Marine restricted mode of transport whereas DAP rule may be used for movement of goods by Air, Sea or Land.

Secondly, the named place under DAP is in buyer’s country whereas under CIF, the named destination may or may not be at buyer’s country.

Under DAP rules of delivery under Inco terms; the seller is responsible to arrange on carriage wherein CIF terms of delivery, the on carriage is under the risk and cost of Buyer.

Compared to CIF terms, more risk is undertaken by the seller under DAP terms. However, under CIF, the seller’s risk transfer to buyer when the goods are loaded to the Carrier in seller’s side, although the seller bears the costs to named location at buyer’s side.

Under DAP, the risks and costs moves equally till the end of movement of goods at buyer’s place where under CIF delivery rules; the seller discharges his risks when loading goods to the carrier at seller’s side  but costs up to the named destination contracted mutually between buyer and seller.

Another difference between CIF and DAP is that insurance on movement of goods are under the responsibility of seller under CIF delivery rules.  But under DAP delivery  rules, neither buyer nor seller is responsible to  arrange insurance as per  incoterms 2020 rules published by ICC, thereby either of the parties may arrange insurance as per their mutual understanding under  their contract of carriage.

You may read about CIF and DAP separately in this website, you may click below to read:

CIF  Cost Insurance and Freight

DAP  Delivered at Place

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