The DAP or “Delivered at Place” Incoterm replaces the now outdated DDU Incoterm, or Delivery Duty Unpaid, which appeared in the previous Incoterms edition, Incoterms 2000. The DAP Incoterm means that the seller must make the goods available to the buyer at the buyer’s chosen location. However, the seller is not responsible for unloading the goods from carrier at the destination location, or for any customs duties costs, tariffs, or taxes that may apply during the delivery.
The buyer is therefore responsible for all risks involved with processing customs clearance for the goods to be imported, and all duties, taxes and other charges that may be added during this stage.
The DAP Incoterm is versatile as it can be used irrespective of the mode of transportation.
Delivery of goods and documents required
Packaging and wrapping
Inland transport in the country of origin
Customs at origin
Inland transport at the destination country
Payment of the goods
Customs on arrival (depending on arrival location)
Payment of fees
Exporting under the DAP Incoterm means taking responsibility of practically everything in the destination country. Before agreeing on the DAP Incoterm, as an exporter, make sure the destination country that is safe, is one that you’re familiar with, or that your freight forwarder has a destination agent in place there.
The DAP Incoterm may mean higher risks for the exporter. But by being responsible for the majority of the processes and fees, the exporter can obtain more competitive prices for the purchase of the goods and the ocean freight transportation by negotiating directly with the shipping line or freight forwarder.
As the buyer, the DAP Incoterm does not give you much control over the ocean freight and may not be the most competitive incoterm for you.
One advantage of buying under the DAP Incoterm is that it involves few responsibilities and risks for the importer.
If you’re still unclear about the DAP Incoterm and if it’s the best choice for your import or export, you may contact us. Our imports and exports agents will be glad to advice you on which incoterm best suits your shipping needs.