“Delivered at Place” (DAP) is an international trade term used in the Incoterms (International Commercial Terms) that defines the responsibilities and obligations of the buyer and seller in a transaction. Incoterms are standardized terms published by the International Chamber of Commerce (ICC) and are widely used in international contracts to avoid misunderstandings and disputes between trading partners.
In the Delivered at Place (DAP) Incoterm, the seller is responsible for delivering the goods to a named place of destination agreed upon by the buyer. The term specifies that the seller bears the risks and costs associated with transporting the goods to the agreed destination, including customs clearance for export, but excluding import customs duties and taxes.
Key characteristics of Delivered at Place (DAP):
1. **Delivery Point:**
– The seller is responsible for delivering the goods to a specified place of destination agreed upon by the buyer. This place is often a location such as a warehouse, port, or other point where the goods can be handed over to the buyer.
2. **Transportation and Costs:**
– The seller is responsible for arranging and paying for the transportation of the goods to the named destination. This includes the cost of freight, loading, and unloading. However, the buyer is responsible for any costs associated with import customs duties and taxes.
3. **Risk Transfer:**
– The risk of loss or damage to the goods transfers from the seller to the buyer at the point of delivery. This means that the seller is responsible for any loss or damage to the goods that may occur during transportation to the named destination.
4. **Customs Clearance:**
– The seller is responsible for clearing the goods for export and handling export customs formalities. However, the buyer is responsible for import customs clearance and paying any import duties or taxes imposed by the destination country.
5. **Delivery Documents:**
– The seller is obligated to provide the buyer with the necessary documents for taking delivery of the goods, which may include the commercial invoice, packing list, transport document (such as a bill of lading or air waybill), and any other required documents.
6. **Unloading at Destination:**
– The seller is responsible for unloading the goods at the named place of destination. This may involve the use of handling equipment or other means to ensure that the goods are delivered in accordance with the contract.
DAP is often used when the buyer wants the seller to handle most of the logistics and transportation aspects of the international shipment. It provides a clear division of responsibilities between the buyer and the seller and is suitable for various modes of transportation, including sea, air, road, and rail.
It’s important for parties involved in international trade to clearly specify the named place of destination and to understand their respective obligations under the DAP Incoterm to avoid misunderstandings and ensure a smooth and efficient international transaction.