incoterms-dap

Incoterms DAP

The DAP rule (Delivered at Place) is one of the Incoterms rules widely used to define the responsibilities of sellers and buyers in international trade. This term explains the tasks, costs, and risks the sender and the consignee must bear during import and export.

Features of delivery on DAP terms

Under the DAP rule, the seller is responsible for delivering the goods to a named place of destination agreed upon with the buyer. The seller is responsible for all costs and risks associated with the delivery of the goods up to that point, including loading the goods onto the means of transport, export clearance, and transportation costs to the named place of destination.

Once the goods have arrived at the named place of destination, the buyer is responsible for unloading the goods and for all costs and risks associated with the further transport of the goods from that point onwards. This includes import clearance, payment of duties and taxes, and transport costs to the final destination.

dap incoterms

Seller’s requierements

Under DAP, the seller ensures that the goods are delivered to the buyer at the named place of destination.

Seller’s obligations

Under Incoterms DAP, the seller has several obligations that they must fulfill, including:

  1. Delivery of goods: The seller is responsible for delivering the goods to the named place of destination agreed upon with the buyer.
  2. Packaging: The seller is responsible for packaging the goods to protect them during transport.
  3. Export clearance: The seller is responsible for obtaining licenses or permits and completing required export formalities.
  4. Transport: The seller is responsible for arranging and paying for the transportation of the goods to the named place of destination.
  5. Documentation: The seller must provide the buyer with all necessary documents, such as the commercial invoice, bill of lading or transport document, and any other documents required for customs clearance.
  6. Notice of delivery: The seller must give the buyer sufficient information about the delivery of the goods to the named place of destination.
  7. Transfer of risk: The seller is responsible for the goods until they are delivered to the named place of destination. After that, the risk and responsibility for the goods pass to the buyer.

Buyer’s requirements

The buyer ensures that the goods are delivered to the final destination in compliance with the Incoterms DAP rules and that any issues with the goods are addressed on time.

Buyer’s obligations

Under Incoterms DAP, the buyer has several obligations that they must fulfill, including:

  1. Payment: The buyer must pay the price of the goods as agreed upon in the contract of sale.
  2. Import clearance: The buyer is responsible for obtaining any necessary import licenses or permits and completing any required import formalities.
  3. Transport: The buyer is responsible for arranging and paying for the transportation of the goods from the named place of destination to the final destination.
  4. Unloading: The buyer is responsible for unloading the goods from the means of transport at the named place of destination.
  5. Risk and responsibility: The buyer assumes the risk and responsibility for the goods once they are delivered to the named place of destination.
  6. Notice of delivery: The buyer must be ready to take delivery of the goods at the named place of destination and must give the seller sufficient information about the delivery.
  7. Cooperation: The buyer must cooperate with the seller in obtaining any necessary documents or information required for export and import formalities.
  8. Inspection of goods: The buyer must inspect the goods upon delivery to ensure they conform to the contract of sale. If there are any issues with the goods, the buyer must notify the seller within a reasonable time.

Under the DAP rule (Delivered at Place), the seller will be responsible for organizing most of the logistics and customs clearance in the country of export. At the same time, the recipient will be responsible for customs clearance for import and transportation to the desired location.

So that you don’t have to look for a carrier company, broker, or loaders and spend time and money on possible fines or delays at the border, PartnerTrade can do it for you. 

Established relationships with intermediaries worldwide allow us to offer optimal delivery and cargo storage prices.

FAQ

What is the advantage of DAP?

It is beneficial for the buyer to transport goods under DAP, as the seller is responsible for exporting the goods and incurs additional costs during the delivery procedure to the destination.

For what type of transportation can DAP be applied?

This condition can be used to ship, plane, truck, and train shipments.

What does the buyer have to do under DAP?

The buyer must agree with the seller on the destination and unloading, pay taxes, and import clearance. They must also pick up the goods from customs and bring them to the final delivery point.

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