DAP — Delivered at Place

The meaning of it is that the delivery is completed for the supplier when the goods are delivered to the recipient and ready for unloading at the indicated destination. Supplier must pay all export duties and costs for the delivery of the goods to the specified destination, its unloading. Supplier pays export duty, packaging the goods and transportation of the cargo to the port, loads the goods on board, hires and pays the ship, provides the relevant documentation, and also pays for unloading from the ship and delivery to the final destination. Recipient unloads a vehicle on spot, insures the goods at will, pays import duty, relevant certificates, licenses, etc. DAP is used to transport goods by any means of transport.

Who covers the logistics charges?

Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller.

DAP

Specify the precise unloading spot at the named place of destination.

Seller’s Obligations

Goods, commercial invoice and documentation
Export packaging and marking
Export licenses and customs formalities
Pre-carriage and delivery
Loading charges
Cost of pre-shipment inspection
Main carriage
Delivery to named place of destination
Proof of delivery

Buyer’s Obligations

Payment for goods as specified in sales contract
Unloading from arriving means of transportation
Import formalities and duties
Cost of import clearance pre-shipment inspection
Onward carriage and delivery to buyer (depending on named place)

Bottom Line

The DAP Incoterm provides a clear allocation of responsibilities and risks between the buyer and seller, allowing for flexibility in terms of the location of delivery and any mode of transport. However, DAP does have some disadvantages, such as uncertainty regarding delivery time, the risk of damage during unloading, and potential disputes. It is important for both the buyer and seller to understand the obligations and risks associated with DAP before entering into a contract of sale to ensure a successful and smooth transaction.