What is DAP (Delivered at Place)?

Delivered-at-Place (DAP) is an Incoterm used to describe a deal in which a seller agrees to pay all costs and suffer any potential losses of moving goods sold to a specific location. In delivered-at-place agreements, the buyer is responsible for paying import duties and any applicable taxes, including clearance and local taxes, once the shipment has arrived at the specified destination. The seller takes on all the risks and costs of delivering goods to an agreed-upon location. This means the seller is responsible for everything, including packaging, documentation, export approval, loading charges, and ultimate delivery.

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Key takeaways:

The seller generally assumes all risks and pays all charges associated with shipment up to the named place of destination.

The buyer takes responsibility for costs and risks when the goods are placed at buyer’s disposal ready for unloading at the named place of destination and is responsible for any import clearance formalities.

Unless otherwise agreed between both parties, the seller cannot request renumeration for unloading costs incurred under the contract of carriage.

Delivered-at-place incoterm is applicable for any mode or intermodal and is usually accompanied by the location where the buyer takes responsibility.

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Seller's obligations under the DAP Incoterm:

1.Goods, commercial invoice and documentation

2.Export packaging and marking

3.Export licenses and customs formalities

4.Pre-carriage and delivery

5.Loading charges

6.Cost of pre-shipment inspection

7.Main carriage

8.Delivery to named place of destination

9.Proof of delivery

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Buyer's obligations under the DPU Incoterm:

1.Payment for goods as specified in sales contract

2.Unloading from arriving means of transportation

3.Import formalities and duties

4.Cost of import clearance pre-shipment inspection

5.Onward carriage and delivery to buyer (depending on named place)

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The differences between DPU(Delivered at Place Unloaded) and DAP (Delivered at Place):

The Incoterm DPU is the only Incoterm in which the goods are delivered unloaded at the destination. In turn, the only difference between DPU and DAP is that while in DPU the goods are delivered unloaded and in DAP are delivered ready for unloading.

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Notes:

DAP incoterms does include insurance. The seller can pay for coverage for damage to goods till the designated port, and also take marine insurance if the goods are to be moved by ocean/sea. As the risk and damage to goods stays with the seller till the goods are delivered at the designated port, he is liable for the insurance of goods under DAP.