Advantages of DAP terms for Buyer
This web post is one of the series of posts analyzing the merits and demerits for exporters and importers under each delivery terms under Incoterms 2020.
In this post we are kicking about the advantages of entering contract of carriage on DAP basis from the perspective of importer.
Let us state such merits for a buyer under DAP terms one by one below:
01.One of the advantages under DAP delivery terms for importer is that the risks involved in movement of goods for an Importer under import export business is low, as pre carriage, main carriage and on carriage is undertaken by the buyer.
02. The importer in export import trade is free from local transportation of goods at exporter’s country under DAP terms and he is free from acquiring knowledge and experience in movement of goods at buyer’s country. This is an merit for buyer when contract of carriage is on DAP basis.
03. Another advantage under DAP delivery rules for the importer is that the buyer under DAP terms of delivery does not want to be familiar with export customs clearance process as the seller takes care export formalities.
04. The importer in international business under DAP terms of delivery can ensure safety in unloading of goods at named destination place as he is under the responsibility to unload goods under DAP terms. This is a benefit for buyer when contract of movement of goods are on DAP basis.
05. One of the other advantages for importer under DAP terms of delivery is that the risk of damage and loss of goods during loading and unloading at intermediary location other than the final named destination is under the responsibility of exporter under DAP terms of delivery. So the buyer is free from such risks and costs under DAP delivery rules.
06. If the seller fails to appoint a good service provider for movement of goods, the seller himself is liable for any additional cost and risk as buyer is not responsible against such losses under DAP delivery terms. This is an advantage under DAP terms for buyer.
07. One of the other edge for importer under DAP terms of delivery is that the importer in an international trade under DAP terms takes care of unloading of goods at destination named place thereby he can ensure the safety of goods with maximum priority.
Hope we could dig out the major benefits under DAP for exporters.
If you are interested to add up more information about benefits of DAP to the sellers, share below under discussion forum: