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What is DAP? Delivered at Place Incoterms 2020 definition & explanation

WHAT IS DAP INCOTERMS 2020

What is DAP? – DAP incoterms 2020 (Delivered at Place) is the latest version of DAP ICC’s Incoterms. Delivered at Place is belong to group Group D (Arrival) assumes that the seller is obliged to deliver the goods to a specific place or the port of destination. This group includes such Incoterms as DAP, DPU, and DDP.

What is DAP – Delivered at Place?

Delivered at Place means that the seller delivers the goods – and transfer risk – to the buyer:

  • When the goods are placed at the disposal of the buyer;
  • On the arriving means of transport ready for unloading;
  • At the named place of destination;
  • At the agreed point within that place, if any such point is agreed.

The seller bears all risks involved in bringing the goods to the named place of destination or to the agreed point within that place. In this Incoterms rule, therefore, delivery and arrival at destination are the same.

This rule may be used irrespective of the mode of transport selected and may also be used where more than one mode of transport is employed.

The parties are well advised to specify the destination place or point as clearly as possible and this for several reasons.

First, risk of loss or damage to the goods transfers to the buyer at that point of delivery/destination – and it is best for the seller and the buyer to clear about the point at which that critical transfer happens.

Secondly, the costs before that place or point of delivery/destination are for the account of the seller and the costs after that place or point are for the account of the buyer.

Thirdly, the seller must contract or arrange for the carriage of the goods to the agreed place or point of delivery/destination. If it fails to do so, the seller is in breach of its obligations under the Incoterms DAP rule and will be liable to the buyer for any ensuing loss. Thus, for example, the seller would be responsible for any additional costs levied by the carrier to the buyer for any additional on-carriage.

The seller is not required to unload the goods from the arriving means of transportation. However, if the seller incurs costs under its contract of carriage related to unloading at the place of delivery/destination, the seller is not entitled to recover such costs separately from the buyer unless otherwise agreed between the parties.

Incoterms 2020 DAP requires the seller to clear the goods for export, where applicable. However, the seller has no obligation to clear the goods for import or for post-delivery transit to clear the goods for import or for post-delivery transit through third countries, to pay any import duty or to carry out any import customs formalities.

As a result, if the buyer fails to organize import clearance, the goods will be held up at a port or inland terminal in the destination country. Who bears the risk of any loss that might occur while the goods are thus held up at the port of entry in the destination country? The answer is the buyer, delivery will not have occurred yet, ensuring that the risk of loss of or damage to the goods is with the buyer until transit to a named inland point can be resumed.

If, in order to avoid this scenario, the parties intend the seller to clear the goods for import, pay any import duty or tax and carry out any import customs formalities, the parties might consider using DDP.

DAP – Delivered at Place’s Cost and obligation

Blue: Cost/ Yellow: Risk/ Orange: Insurance

INCOTERMS 2020 DAP

Using DAP Incoterms 2020, the seller takes costs

  • All costs relating to the goods and their transport until delivery (expect for the costs incurred by the buyer);
  • Possible unloading costs;
  • Export clearance costs;
  • Costs of delivery of documents regarding transport.

Obligations of the seller

  • Seller provides commercial invoice and other required documents in paper or electronic form.
  • He delivers goods ready for unloading at a named place and within the specified period.
  • He takes responsibility for damage or loss of goods until they are delivered at the agreed point and time.
  • The seller’s obligation is contracting or organizing the transport of goods at the indicated destination at his own costs. If such a place is not specified, the seller can choose the point the best suits this purpose.
  • Seller operates according to all transport-related security requirements for transport to the destination.
  • The seller has to carry out and pay for all export and transit clearance, as well as assist the buyer with import clearance.
  • He has to count and weigh goods and, if required, pack the goods.
  • He provides the buyer with documents authorizing the buyer to take over the goods.
  • The seller is not obliged to make a contract of insurance.

The buyers takes cost

  • Costs related to the conclusion of the contract of carriage;
  • Any costs related to the goods from the moment of their delivery, and possible unloading costs;
  • Import clearance costs;
  • Possible costs incurred by the seller related to import formalities.

Obligations of the buyer

  • Buyer pays the price of the goods as provided in the contract of sale.
  • He takes up the delivery of the goods.
  • Buyer has to accept documenWhat is DAP? – DAP incoterms 2020 (Delivered at Place) is the latest version of DAP ICC’s Incoterms. Delivered at Place is belong to group Group D (Arrival) assumes that the seller is obliged to deliver the goods to a specific place or the port of destination. This group includes such Incoterms as DAP, DPU, and DDP.ts provided by the seller for being enabled to take up the goods.
  • He takes responsibility for damage or loss of goods from the time they have been delivered.
  • Buyer has to carry out and pay for import clearance, as well as assist the seller with export clearance.
  • Buyer informs the seller about the designated port/place of delivery, types of means of transport and date of delivery.
  • The buyer is not obliged to make a contract of insurance but must provide information for this purpose at the seller’s request.

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