Incoterms DAP: Delivered at Place
Named Place Required: Place of Destination
Specify the precise unloading spot at the named place of destination.
Under the Delivered At Place (DAP) Incoterms rules, the seller is responsible for delivery of the goods, ready for unloading, at the named place of destination.
The seller assumes all risks involved up to unloading. Unloading is at the buyer’s risk and cost.
DAP can apply to any—and more than one—mode of transport. The buyer and seller should specify and agree upon the precise unloading spot at the named place of destination.
Unless otherwise agreed between both parties, the seller cannot request renumeration for unloading costs incurred under the contract of carriage.
DAP rules require the seller to clear goods for export, where applicable, without any obligation to clear the goods for import, pay import duty or carry out import customs formalities.
DAP Shipping 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
- 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)
DAP requires the seller to deliver to a place named by a buyer, typically the buyer’s
premises. The buyer is responsible for unloading the means of transport. The seller has
to carry out any export formalities and the buyer has to carry out any import formalities.
Like with CPT and CIP the seller contracts for carriage and risk transfers only upon delivery
which now is at the buyer’s premises. The seller has no obligation to the buyer to insure
for its risk. This rule works well for transport of goods by land within the Europe/Central
Asia landmass but strikes potential problems once there is a change in mode of transport
along the way.
For example, if the shipment is by air and requires import clearance formalities in the
destination country these must be carried out by the buyer while the goods sit at the
airport. Once cleared the seller’s carrier (typically a freight forwarder) must then be
given whatever paperwork they require to move the cargo from the airport to its final
destination. The same situation exists for cross-ocean container shipments with the added
complication that the empty container must be returned by the seller at its own expense.
It should be noted too that the buyer should not be the consignee on any air waybill or bill
of lading, that should be the seller who has to arrange for its forwarder to take possession
of the goods from the airline or shipping company and arrange local inland transport
typically by truck.
If the goods are damaged or lost at any stage before the final destination then the seller
will be unable to deliver and may well be in breach of contract, with the additional
complication that the buyer will have already paid import duty and VAT/GST. If the buyer
is unable to import clear the goods expeditiously then it might find that it bears the risk
while the goods sit in customs control and is itself in breach of contract if the seller cannot
deliver as contracted.
Any excerpts quoted from the Incoterms® 2020 rules are the copyright of the International Chamber of
Commerce. Source: ICC website. The full text of the 2020 edition of the Incoterms rules is available at
https://2go. iccwbo.org/. The word “Incoterms” is a registered trademark of the International Chamber of Commerce.