5 Essential Notes About: DAP Incoterms (Delivered At Place)
DAP Incoterms means that the seller delivers the goods at the buyer disposal ready for unloading at the named place of destination. The seller is responsible and liable for any cost and risk up to the named place of delivery. The buyer must take the responsibility from that point onward.
1. Who is responsible for unloading the goods from arriving vehicle at the named place of destination?
– Under DAP Incoterms the buyer is responsible and pays for unloading the goods at the named place of destination. Under DAT Incoterms the seller is responsible and liable for unloading the goods at the named terminal.
2. When to use the DAP Incoterms?
– Under this term the seller must take most of the risk of the shipment. As a seller to secure a high potential it is recommended to use this term in the first contracts. As a buyer it is recommended to use this term when there is a high risk in purchasing from a new supplier.
3. Must the seller arrange the import custom formalities in the import country under DAP Incoterms?
– Under this term the seller arrange every step except the import custom formalities. The seller almost does every task in import country up to the named place of delivery except the custom clearance.
4. What is the diferences between DAT and DAP Incoterms?
– There is two main differences. One is that in DAT the goods must be delivered at named terminal while in DAP at the name place of destination not terminal. The second difference is the unloading charges. If the terminal is selected as the named place, DAP is exactly the same as DAT, excepting the seller pays for unloading. the
5. Why EXW Incoterms and D-terms are like each other in delivery?
– The seller transfer the risk by placing the goods at the buyer’s disposal under EXW and all D-terms. It is highly important that the both parties well specify the time and point for delivery in place of destination.
To read the full obligation of the seller and the buyer in DAP Incoterms read the book “ICC Guide to Incoterms 2010”
Other useful links:
Free On Board (FOB) Incoterms
Free Carrier (FCA) Incoterms
Ex Works (EXW) Incoterms
CPT Incoterms (Carriage Paid To)
CIP Incoterms (Carriage and Insurance Paid To)
CFR Incoterms (Cost and Freight)
CIF Incoterms (Cost, Insurance and Freight)
FAS Incoterms (Free Alongside Ship)
DAT Incoterms (Delivered At Terminal)
Incoterms: Shipping Guide Every Trader Must Know