Delivered At Place (DAP) is one of 11 Incoterms currently used in shipping and logistics. 

Here we delve into DAP and discuss what exactly is dictated through the Incoterm, and when it might be good for you to agree to this Incoterm with a buyer.

 

What does DAP mean?

DAP, or Delivered At Place, is an International Commercial Trade Term (Incoterm). This term is decided upon by both the buyer and the seller to determine the tasks and responsibilities of a shipment at different stages. 

 

What does the DAP Incoterm dictate?

The DAP Incoterm dictates that:

  1. If DAP is agreed upon, delivery of goods falls under the responsibility of the seller up to the point of unloading at the named place of destination. All risk is also with the seller up to this point.

  2. The method, or methods, of transportation, should be agreed upon by both parties.

  3. The seller is responsible for clearing goods for export. 

  4. The buyer is responsible for customs clearance on arrival at the destination country, as well as import duties and taxes.

Top Tip: When you agree upon the DAP Incoterm, be sure to specify the delivery point and expected transit time through to the agreed destination.

 

DAP Shipping Obligations

Understanding where obligations lie when using the DAP shipping term is key to a successful shipment that works for both parties.

 

Obligations of the buyer

If you are the buyer, you are obligated to:

  • Pay for goods in line with the agreed sales contract.

  • Handle import duties and taxes.

  • Pay for import customs clearance.

  • Unload the transport upon arrival at the named destination.

 

Obligations of the seller

If you are the seller, you are obligated to:

  • Manage pre-carriage and delivery to port/airport.

  • Raise all relevant documents including commercial invoices, packing list and any other specialist documents necessary.

  • Manage export licences, export packaging, and export marking.

  • Deal with origin customs formalities.

  • Manage and pay for freight on the agreed shipping term.

  • Pay for pre-shipment inspections.

  • Pay for loading charges.

  • Cover the carriage up to the named delivery point.

 

View the SEKO Guide to Incoterms

With over 30 years of expertise in Ecommerce Logistics and international shipping logistics, you can count on SEKO to help you make the right choice for shipping.

If you’d like to learn more about Incoterms currently in use, visit our full guide to Shipping Incoterms.