Incoterms: Delivered at Place (DAP)

Delivered at Place (DAP) is an Incoterms term that requires the seller to pay for all costs and assume responsibility for any risks that may come up during the shipment process. Once the goods reach the agreed destination, the buyers are in charge of all import duties and tax payments. If there is an extra charge from unloading, the seller cannot charge the buyer. DAP is mainly ideal for international/multimodal transport but can also be for any transport mode.

Seller and Buyer Obligations

Under DAP, both the seller and the buyer have certain obligations they must meet. Take a look at the chart below and see what they are:

Seller’s Obligations

General - Deliver the goods and commercial invoice.

Buyer’s Obligations

General - Pay the price of the goods as agreed.

Seller’s Obligations

Delivery - Deliver the goods at the agreed date and time. Has full responsibility until delivery.

Buyer’s Obligations

Delivery - Take the goods when they are delivered.

Seller’s Obligations

Risks - Responsible for all of the risks until goods are delivered.

Buyer’s Obligations

Risks - Responsible for all of the risks once the seller delivers the goods.

Seller’s Obligations

Carriage - Must contract carriage of goods to the destination and pay for the cost.

Buyer’s Obligations

Carriage - No obligation.

Seller’s Obligations

Insurance - No obligation. 

Buyer’s Obligations

Insurance - No obligation. 

Seller’s Obligations

Delivery/transport document - Must provide a transport document at own cost.

Buyer’s Obligations

Delivery/transport document - Must accept the document.

Seller’s Obligations

Export/Import clearance - Responsible for all export clearance expenses. Must pay for all formalities required. 

Buyer’s Obligations

Export/Import clearance - Must assist the seller and pay for all formalities if requested.

Seller’s Obligations

Checking - Must pay for all checking operations like weighing/counting the goods, packaging, etc.

Buyer’s Obligations

Checking - No obligation.

Seller’s Obligations

Allocation of cost - The seller must pay for all costs until goods are delivered. This includes transport costs, export taxes and duties, etc.

Buyer’s Obligations

Allocation of cost - Must pay from the time the goods are delivered. Must pay any additional charges from failing to notify the shipment time.

Seller’s Obligations

Notices - Must notify the buyer when goods have been delivered.

Buyer’s Obligations

Notices - Must notify the seller of the destination and time.

Things to Look Out for

Although DAP may sound pretty simple in theory, problems can arise during the process. Occasionally, customs clearance may need to have cleared before the physical delivery. If not, delays during this process will result in extra charges, detention, etc. Goods may also arrive without all of the necessary import/export documentation, and buyers can even delay tax payment and other duties.  

To avoid such problems, the sellers and buyers must be in constant, clear communication. Make sure to state the exact destination and time in the contract, agree on who will pay for which damages, and pick a customs broker beforehand. For sellers, let the buyers know when the goods will arrive and provide any necessary documentation before the arrival. 

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