DAP – Delivery at (Place of Destination) - Incoterms 2020

Explained

In DAP, Delivery at Place, the sellers is responsible for moving the goods from origin until their delivery at the disposal place agreed with the buyer ready for unloading at destination. The seller bears the risk until delivery of goods to the named place and should get a contract of carriage that matches the contract of sale until the agreed delivery point. If there is an extra fee for unloading the goods, the seller cannot charge it to the buyer. This term can be used for any mode of transportation.

Doing Business

DAP, deliver from seller ends at destination place agreed, the seller is not required to unload the goods. it can be used for any mode of transportation. Seller pays for export customs, buyer pays for import customs clearance, duties, and taxes. Contrary to DAT, goods are delivered unloaded from the transport vehicle.

This term minimizes the risk of the seller to deliver goods to the first port of entry, unloaded. It is important for the seller and buyer to agree on the place of delivery as clearly as possible.

Examples

DAP Patagonia Clothing Warehouse, 222 Central Ave, Ventura, CA, USA - Incoterms® 2020

Seller and Buyer obligations

THE SELLER’S OBLIGATIONS	THE BUYER’S OBLIGATIONS
1. General The seller must deliver the goods, commercial invoice, and any evidence of conformity.	1. General The buyer must pay the price of goods as agreed.
2. Delivery Deliver the goods at the disposal of the buyer, unloaded. On the agreed date or period.	2. Taking Delivery The buyer takes the goods at the destination point.
3. Risks All risk of loss/damage until goods have been delivered.	3. Risks All risk of loss/damage from the time or end of the period agreed for delivery. If the buyer fails to clear import customs or notify time/period, the risk is under the buyer.
4. Carriage Contract carriage of goods until the place of destination.	4. Carriage No obligation to contract a carrier.
5. Insurance No obligation.	5. Insurance No obligation to insure the goods.
6. Delivery/transport document Provide documents that allow the buyer to take over the goods.	6. Delivery/transport document Accepts the proof of delivery
7. Export/Import clearance All export clearance expenses (license, security, inspection, etc). Assist with import clearance	7. Export/Import clearance Assist with export clearance. Pay for import clearance and formalities (licenses, security, official documentation).
8. Checking The seller must check, count, weight, mark, and package goods	8. Checking No obligation.
9. Allocation of cost Pay all the cost until delivery. Transport and loading. Unloading charges that are under the contract of carriage only. Transit costs. Cost of delivery/transport document. Duties and taxes for export. All costs related to providing assistance in obtaining documents to the buyer.	9. Allocation of cost Pay from the time goods delivered. Unloading. All costs for assistance. Pay duties and taxes for imports. Any additional cost if does not notify the shipment date or period.
10. Notices Give the notice to receive the goods.	10. Notices Time or period for receiving the goods and name the point of receiving the goods.

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