What is Delivered at Place (DAP)?

Delivered at Place (DAP) is an Incoterm defined by the International Chamber of Commerce (ICC). Under DAP terms, the seller is responsible for arranging transport and delivering goods to an agreed-upon destination. The seller bears all risks and costs until the goods arrive and are ready for unloading by the buyer.

Key Responsibilities Under DAP

Seller’s Responsibilities:

• Arrange transportation and delivery to the named place of destination.
• Cover all transportation costs and export clearance fees.
• Assume all risks until the goods reach the destination.
• Provide the necessary documents required for shipment and customs clearance.

Buyer’s Responsibilities:

• Handle the unloading of goods at the destination.
• Complete import customs clearance and pay import duties, taxes, and related charges.
• Bear risks and costs after the goods are delivered to the agreed destination.

Advantages of Using DAP

• Simplified logistics management for buyers, as sellers manage transport to the destination.
• Buyers do not need to arrange or pay for international shipping.
• Clear allocation of risks, reducing the potential for disputes.

Potential Challenges with DAP

• Buyers must clearly understand local import customs procedures, as they remain responsible for customs clearance.
• Potential delays or extra costs if the buyer is not prepared for unloading or import clearance upon delivery.

Best Practices for Using DAP

• Clearly specify the exact delivery location in the contract.
• Maintain open and regular communication between buyer and seller regarding shipment status.
• Buyers should familiarize themselves with local import customs regulations and prepare in advance to avoid delays.

Frequently Asked Questions (FAQs)

Q: Who pays import duties under DAP?
A: The buyer is responsible for paying import duties and handling customs clearance.

Q: Can DAP be used for any mode of transportation?
A: Yes, DAP is versatile and can be used for any mode of transport, including air, sea, road, and rail.

Q: When does risk transfer from seller to buyer under DAP?
A: Risk transfers when goods arrive at the agreed destination and are ready for unloading by the buyer.