DAP Incoterm® (Delivery at Place)

DAP Meaning - Delivery at Place

Delivery at Place – What is DAP?

DAP, or, Delivery at Place is an Incoterm® defining the buyer and seller’s responsibilities when moving goods. In this case, the seller is responsible for moving the goods from the country of origin right through to the end destination, which includes responsibility for loading, transport and unloading.

With DAP, we’d recommend being very clear about the end destination place to avoid any confusion later on. DAP means that seller bears the risk of any issues with the goods until the agreed delivery point. If there are any extra fees for unloading the goods, the seller must incur these.

This term can be used for any mode of transportation.

Diagram: DAP – obligations from the seller and buyer, and where the transfer of risk between each party is transferred. Source: J Montezuma, Creative Commons BY-SA CC 4.0
Responsibility of the Buyer (versus Seller)
Relative Price

Transport Modes:

Rail, Sea, Air, Road

DAP Incoterm: Explained

DAP, or, Delivery at Place is an incoterm defining the buyer and seller’s responsibilities when moving goods. In this case, the seller is responsible for moving the goods from the country of origin right through to the end destination, which includes responsibility for loading, transport and unloading. With DAP, we’d recommend being very clear about the end destination place to avoid any confusion later on. DAP means that seller bears the risk of any issues with the goods until the agreed delivery point. If there are any extra fees for unloading the goods, the seller must incur these. This term can be used for any mode of transportation. How does DAP work? DAP requires the seller to load, ship and unload the goods at an agreed destination place (normally after the port or terminal where the goods arrive at the country of destination). DAP can be used for any mode of transportation, and the seller needs to pay for: import customs clearance duties taxes loading / unload costs Contrary to DAT, goods are delivered unloaded from the transport vehicle.

How does DAP work?

DAP requires the seller to load, ship and unload the goods at an agreed destination place (normally after the port or terminal where the goods arrive at the country of destination). DAP can be used for any mode of transportation, and the seller needs to pay for:

  • import customs clearance
  • duties
  • taxes
  • loading / unload costs

Contrary to DAT, goods are delivered unloaded from the transport vehicle.

Diagram: DAP  involves the seller delivering the goods up to the destination place, including transport from the terminal to the end place, at which point the liability of goods passes from seller to buyer. Source: J Montezuma, Creative Commons BY-SA CC 4.0

DAP: What are the critical issues?

Essentially, when goods are on board the means of transport, at the named place of destination and goods are ready to be unloaded at Buyer’s charge. Anyway, the Seller shall indeed inform the Buyer about the estimated date of arrival of the vessel in order to avoid delays and/or problems with unloading procedures.

Buyer and Seller Obligations of DAP

DAP Seller ObligationsDAP Buyer Obligations
1. Proof of delivery

The seller must deliver the goods, provide an invoice or equivalent and provide proof of delivery

1. Payment

The buyer must pay for the price of goods as agreed in the contract of sale

2. Licences

The seller must provide export licenses or local authorisations to ensure the goods can leave the country of origin

2. Licences

The buyer must get any export license and import permit for the export of goods

3. Shipping and insurance

Shipping and insurance is at the seller’s expense

3. Shipping and insurance

Contract of carriage – no obligation

Contract of insurance – no obligation

4. Delivery

The seller must deliver the goods and unload them at the agreed point and time

4. Taking delivery

Take delivery of the goods at the agreed place of destination

5. Transfer of risks

The seller is responsible for the goods until they reach the end destination place

5. Transfer of risks

The buyer must bear all risks of loss of or damage from the time the goods have been made available in the agreed place of delivery

6. Costs

The seller must pay for:

  • All transport and insurance costs
  • Export fees and taxes pre-shipment
  • Loading the goods place of origin
6. Costs

The buyer pays for all of the costs relating to the goods after they are available, including import customs duties and taxes, and unloading at place of destination

7. Notice to the buyer

The seller must notify the buyer that the goods have been delivered

7. Notice to the seller

The buyer must provide time of shipment and the place of destination

8. Proof of delivery

The seller must provide documentation which allows the buyer to pick up the goods

8. Proof of delivery, transport document or equivalent electronic message

At his own expense, a document that allows the buyer to pick up the goods

9. Checking – packaging – marking

The seller is responsible for paying for: checking the goods and quality / stock control, measuring / weighing or counting stock, and packaging the goods for shipment

9. Inspection

The buyer must pay for any pre-shipment inspections

10. Other

Assist obtaining additional information required by the seller

10. Other

Assist obtaining additional information required by the seller

Testimonials

Clothing produced in Patagonia was being shipped to buyers in California by ocean freight. The seller was responsible to loading and shipping the goods right to that warehouse in California, where the buyer would then unload the goods.
Emma C, Clothing.

Case Study

Clothing Supplier

A trade finance facility was required to allow for the import of 1 tonne of clothes from Patagonia to a California and DAP was used to ensure the FCL containing clothes were transported to the warehouse ready for the team to unload.

Get in touch with our finance experts. Enquire now.

First Name*

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Your Organisation*

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Briefly, what type of stock or trade are you looking to finance?

(Marketing Terms can be found here)


First Name*

Last Name*

Your Organisation*

How much trade finance are you seeking?*

Your Email*

Telephone Number*

Briefly, what type of stock or trade are you looking to finance?

(Marketing Terms can be found here)

Meet our writer

Written by our resident freight forwarding and shipping expert.

Andrea Frosinini

Incoterms® Index

Ex Works EXW
Free Carrier FCA
Carriage Paid To CPT
Carriage and Insurance Paid To CPT
Delivery at Terminal DAT
Delivery at Place DAP
Delivery Duty Paid DDP
Free Alongside Ship FAS
Free on Board FOB
Cost and Freight CFR
Delivery Duty Unpaid DDU
Cost Insurance and Freight CIF

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