What is DAP Incoterm?

In DAP, short for Delivered at Place, the seller is responsible for moving the goods from the origin to their delivery at the place agreed with the buyer ready for unloading at the destination. Under DAP terms, the risk passes from the seller to the buyer from the point of destination mentioned in the contract of delivery. The seller must deliver the goods not unloaded at the place agreed and notify the buyer that the goods have arrived. The seller covers all legal export formalities at the time of exporting the goods but the buyer is the one responsible for customs clearance, duties, and taxes at the destination.

Who is responsible for paying extra expenses under DAP?

The short, unhelpful, but most accurate answer is that it depends. The ICC rules state that buyer bears all risk and loss of damage from the time the seller makes the goods available at the named place of destination within the agreed time. Usually, the delivery point is the buyer’s door after customs clearance. Therefore, the seller is responsible for anything that needs to be paid before the goods arrive at the agreed named place of destination. Likewise, the buyer will need to pay any extra expenses incurred after the goods arrive. As with any international business transaction, the exact terms of any individual contract may vary. This makes it important to check your individual scenario to determine who should be paying for any unexpected expenses.

How and when to use the DAP Incoterms (Delivered at Place)

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How and when to use the DAP Incoterms (Delivered at Place)

By Andrea Frosinini

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