DAP – Delivered At Place (named place)
DAP means Delivered At Place. Under Incoterms 2020, the three letter word DAP followed by named place is one of the terms of delivery of goods designed by International Chamber of Commerce. The exporters and importers may mention detailed named place under their Sale contract by mentioning the year of Incoterms version to avoid disputes on delivery of goods. Inco Terms DAP is used for all modes of transport – Sea, Air and Land, as it is one of the delivery terms categorized as Omni Modal Inco terms.
Under Inco terms DAP, Sellers bears the responsibility of risks and costs for packaging the goods, pre carriage, export documentation, export customs clearance, port handling and loading charges and main carriage till delivery of cargo at named place agreed with buyer. However, the risks and cost of import customs clearance with import duty and taxes if any is with the buyer, under DAP terms. The buyer is also responsible for the risk and cost of unloading goods under DAP terms of delivery.
Under DAP terms, the risks and costs transfer from Seller to buyer when Seller arranges the goods available for unloading at the named place agreed.
The importer takes all risks and costs of import customs clearance and duties and unloading of cargo at destination named place under DAP terms.
Who arranges Insurance under DAP terms? Since DAP terms does not state about Insurance, either Buyer or Seller has to arrange insurance by agreeing mutually and incorporating in their sale contract.Click here to read about Ex-works, FOB,FCA,CPT,CIP,DAP,DPU,DDP,FAS,CFR and CIF under INCO TERMMS 2020
DAP – Delivered at Place (named Place)
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Costs
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Risks
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Warehouse services
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Seller
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Seller
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Marking and labeling
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Seller
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Seller
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Packing of Goods
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Seller
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Seller
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Loading at Seller’s premises
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Seller
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Seller
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Transportation from Seller’s premises to Load port
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Seller
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Seller
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Unloading at Loading Port
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Seller
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Seller
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Loading to Vessel/Aircraft
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Seller
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Seller
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Export documentation
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Seller
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Seller
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Export Customs Clearance
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Seller
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Seller
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Export Taxes and duties (if any)
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Seller
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Seller
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Handling at Load Port
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Seller
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Seller
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Main Carriage (Ocean Freight/Airfreight)
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Seller
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Seller
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Import Customs Clearance
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Buyer
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Buyer
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Import Documentation
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Buyer
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Buyer
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Import Taxes and Duties (if any)
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Buyer
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Buyer
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Transportation from destination port to named place
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Seller
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Seller
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Unloading at named place
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Buyer
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Buyer
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The above information is about Delivered At Place (DAP) delivlery rules for movement of goods under Incoterms 2020. You may share your experience in handling shipments under DAP below:
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