Definition of DAP (Delivered at Place)
DAP (Delivered at Place) is an international trade term under the Incoterms® rules published by the International Chamber of Commerce (ICC). Under DAP terms, the seller is responsible for delivering the goods to a location specified by the buyer, typically the buyer’s warehouse or another agreed destination.
The seller bears all costs and risks involved in transporting the goods to the named place of destination—excluding import clearance and duties. Once the goods arrive, the seller must make them ready for unloading, but is not responsible for the actual unloading process. The buyer, on the other hand, is responsible for all activities and expenses related to import customs clearance.
DAP can be applied across all modes of transportation, including sea, land, and air freight. It is designed to fairly balance the responsibilities between buyers and sellers, ensuring safe and efficient delivery of goods.
Seller’s Responsibilities and Obligations
A. Transportation and Delivery:
The seller is responsible for arranging transport and delivering the goods to the designated location. Upon arrival, the seller must notify the buyer promptly.
B. Export and Transit Clearance:
The seller bears all risks and costs associated with obtaining export licenses or other official authorizations, as well as completing all customs formalities required for export and transit through other countries.
Buyer’s Responsibilities and Obligations
A. Receiving the Goods:
The buyer must take delivery of the goods at the named place upon arrival, and check whether they conform to the contractual agreement.
B. Import Clearance:
The buyer is responsible for obtaining import permits or other official approvals, handling all necessary customs procedures for importation, and paying any related duties and taxes.
C. Post-Delivery Risk and Costs:
Once the goods are delivered to the specified location, the buyer assumes all subsequent risks and costs. These may include transportation from the delivery point to the final place of use, as well as warehousing or other associated charges.
Caution for Certain Goods
It is not recommended to use DAP terms for high-value, flammable, explosive, fragile, or moisture-sensitive goods, as the risk exposure during transportation and handover is significantly higher.
