Incoterm DAP explained

What is Incoterm DAP?
The versatile Incoterm DAP can be used for any transport modality. Thereby, this Incoterm can also be used if more than one modality is used during the transportation process. The seller pays and arranges the entire transport process and ensures that the goods are delivered to the buyer unloaded at the agreed destination.

Incoterm DAP meaning
The meaning of DAP is Delivered At Place. DAP can be applied at any time because the mode of transport does not matter. Thus, transportation can be by road, water, sports and air. However, it is very important that a clear agreement is made between seller and buyer about where the goods will be delivered because of the transfer of risk from seller to buyer.

DAP transport
One of the characteristics of transport with Incoterm DAP is that there are several possibilities when it comes to the agreed place of destination where the goods are delivered. Think for example of the buyer's own premises or company of the goods. A terminal or other location are also possible. It is important to put the point within the destination very clearly. After all, this is where the risk passes from seller to buyer. It is wise for the seller to take out insurance, as the carrier has limited liability for the goods based on certain conventions.

Incoterm DAP costs
With DAP, the seller is the one with the most obligations. For example, he arranges and pays for transportation to the agreed destination. The seller pays the costs until the goods are unloaded at the destination. The seller also bears all costs involved in exporting the goods. All import costs are borne by the buyer. The buyer is also responsible for unloading the goods and any further transportation of the goods.

Obligations of seller at DAP
The seller is responsible for damage and loss of the goods until the goods are delivered to the destination. However, the seller is not liable for unloading the goods. However, the seller must arrange everything related to the export of the goods. Think of export licenses, taxes and customs documents. It is advisable to take out insurance for damage or loss of the goods with DAP as the seller.

Buyer's obligations at DAP
The buyer is obliged to arrange and pay for the unloading of the goods. The buyer must also arrange the formalities associated with importing goods. These include import duties, import taxes and customs formalities. Any costs incurred during transportation, such as waiting costs due to late import fees, are paid by the buyer.

Incoterm DAP vs. DDP
Incoterm DAP and DDP are very similar in content. A lot of the terms drafted are the same or similar. As a result, these Incoterms are often confused with each other. Yet there is a major difference. With DAP, it is the buyer's responsibility to arrange and pay all customs formalities and taxes for importing goods. With DDP, the selling party is fully responsible for both exporting and importing goods. With both Incoterms, the risk of damage or loss of the goods shifts to the buyer from the moment the goods are ready to be unloaded by the buying party. In doing so, both Incoterms are applicable to any mode of transportation.

Sea freight or air freight shipments with customs obligation?
Global shipments and shipments within Europe to/from non-EU countries are subject to customs obligations. What measures do you need to take and what documents are required? With the knowledge and experience of our specialists in the Rotra customs department, we are able to provide solutions for all your customs obligations that fit your logistics process while you focus on your own core business. For more info contact us directly.