What is the DAP Incoterm?
DAP (Delivered At Place) is an Incoterm in which the seller is responsible for the transportation and delivery of goods to a prearranged destination.
What is the DAP Incoterm?
DAP (Delivered At Place) is a widely used Incoterm in international trade. But what does this Incoterm really mean?
With DAP, the seller agrees to deliver the goods to an agreed upon place, usually an agreed upon border crossing or other agreed upon point. The seller is responsible for exporting the goods and paying export duties and taxes. The buyer is responsible for import duties and taxes, unloading the goods and further distribution of the goods.
What are the pros and cons of the DAP Incoterm?
An advantage of DAP is that the seller has control over the export process and thus can ensure the smooth transit of the goods. The buyer, in turn, has control over the import process and can take delivery of the goods immediately upon arrival.
The risk with DAP lies mainly with the buyer, as he is responsible for the goods from the moment of arrival at the agreed place. So it is important to agree well in advance who is responsible for what aspects and who bears the risks.
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Frequently asked questions about the DAP Incoterm
What are the responsibilities of the salesperson at DAP?
Under DAP, the seller must deliver the goods to the agreed destination. This includes bearing all costs and risks up to the agreed place, such as transportation costs, customs duties and formalities. The seller must ensure that the goods are delivered on time and in good condition.
What are the buyer's responsibilities at DAP?
At DAP, the buyer bears further costs and risks after the goods are delivered to the agreed location. This may include transportation costs to the final destination, customs clearance fees and any local taxes. The buyer is responsible for arranging the unloading of the goods and transportation to the final destination.
Is the seller required to insure the goods with DAP?
No, the seller is not required to insure the goods with DAP. However, it is advisable to take out transport insurance to cover any damage or loss in transit. It is important to specify this point clearly in the trade agreement.
Does the seller have to clear the goods with DAP?
Under DAP, the seller is responsible for clearing the goods for export. However, the buyer is responsible for clearing the goods upon arrival at the destination, as well as any import formalities and fees.
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