DAP (Delivered At Place)

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Russian: DAP Поставка в место (...названное место назначения)


Contents

General Provisions

In accordance with rules of Incoterms® 2010,[1] the DAP (Delivered At Place) rule may be used irrespective of the mode of transport selected and may also be used where more than one mode of transport is employed. In DAP, the seller is responsible for their delivery to the named place of destination. The DAP rule means that the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. The seller bears all risks involved in bringing the goods to the named place.

The parties are well advised to specify as clearly as possible the point within the agreed place of destination, as the risks to that point are for the account of the seller. The seller is advised to procure contracts of carriage that match this choice precisely. If the seller incurs costs under its contract of carriage related to unloading at the place of destination, the seller is not entitled to recover such costs from the buyer unless otherwise agreed between the parties. The DAP term is ideal for multimodal transport. All forms of payment are used in DAP transactions.

The DAP rule requires the seller to clear the goods for export, where applicable. In DAP, the named place of destination is domestic to the buyer and is often the buyer’s place of business. The seller has no obligation to clear the goods for import, pay any import duty or carry out any import customs formalities. If the parties wish the seller to clear the goods for import, pay any import duty and carry out any import customs formalities, the DDP (Delivered Duty Paid) term should be used.


Table 1. Seller's/Buyer's Responsibilities Allocation for Carriage Arrangements, Transaction Costs, and Risk Transfer as Stated by the DAP rule of Incoterms® 2010
Facilities3.png

Facilities4.png

Papers1.jpg

Customs.jpg

Truck.png

Train.png

Delivery.png Craneto.jpg Onboard.png Ship.png

Plane.png

Truck.png

Train.png

Onboard.png Cranefrom2.png De.png

Conterm.png

Truck.png

Train.png

Customs.jpg

Papers1.jpg

Importer1.png

Importer.png

Seller (Exporter), Named Place, Seller's Facilities Export Documents, Formalities, and Duties (if any) Pre-carriage to Named Place, Not Unloaded Delivery at Named Place / Port, Unloaded Ready for Loading at Named Place / Port of Shipment Loaded on Bord of Ship or Vehicle Transport by Air, Rail, Road, Water, or Multimodal On Board Ship or Vessel, Not Unloaded Discharging (Unloading) at Named Place / Port of Destination Delivery at Named Place / Terminal Onward Carriage to Named Place, Not Unloaded Import Documents, Formalities, and Duties Buyer (Importer) - Named Place, Unloaded
Seller's/Buyer's Responsibilities Allocation for a Contract for the Carriage of Goods as Stated by the DAP Rule of Incoterms® 2010
Seller►►► Seller►►► Seller►►► Seller►►► Seller►►► Seller►►► Seller►►► Seller►►► Seller►►► Seller►►► Seller►►► ●●Buyer► ●●Buyer►
Seller's/Buyer's Responsibilities Allocation for Transaction Costs as Stated by the DAP Rule of Incoterms® 2010
Seller►►► Seller►►► Seller►►► Seller►►► Seller►►► Seller►►► Seller►►► Seller►►► Seller►►► Seller►►► Seller►►► ●●Buyer► ●●Buyer►
Seller's/Buyer's Transaction (Loss/Damage of Goods) Risk Transfer as Stated by the DAP Rule of Incoterms® 2010
Seller►►► Seller►►► Seller►►► Seller►►► Seller►►► Seller►►► Seller►►► Seller►►► Seller►►► Seller►►► Seller►►► ●●Buyer► ●●Buyer►


Summary on Buyer's and Seller's Responsibilities under DAP Rule in Incoterms® 2010

Seller's Responsibilities (in brief) Buyer's Responsibilities (in brief)
Goods - Payment
  • Pay for the goods as provided in the sales contract.
Licenses, Security, and Customs Formalities
  • Obtain any import licenses or authorizations and handle all import formalities.
Carriage
  • Contract and pay for the carriage of the goods to the named place of destination.
  • Buyer has no obligation [2] to the seller for the contract of carriage.
Insurance
  • No obligation [2] to the buyer to secure a contract of insurance.
    • At the buyer’s request and cost, provide information to enable the buyer to obtain insurance.
  • Buyer has no obligation [1] to the seller for the contract of insurance.
Delivery - Taking Delivery
  • Make the goods available to the buyer, not unloaded from the arriving means of transport, at the named place of destination, within the agreed-upon time.
  • Take delivery of the goods at the named place of destination as provided in the contract.
Risk Transfer
  • Assume all risks of loss or damage to the goods until they have been made available to the buyer, not unloaded from the arriving means of transport, at the named place of destination, within the agreed-upon time.
  • Assume all risk of loss or damage from the time the goods have been made available for the buyer, at the named place of destination, within the agreed-upon time.
Costs
  • Pay all costs until the goods have been made available to the buyer, not unloaded from the arriving means of transport, at the named place of destination.
  • Pay all costs of loading and carriage to the named place of destination.
  • Pay all costs relating to export, including export customs formalities, duties, and taxes,
    • as well as costs required for transshipment through any country prior to delivery.
  • Pay for costs of unloading if unloading is included in the contract for main carriage.
  • Pay any additional costs after the goods have been made available at the named place of destination, within the agreed-upon time.
  • Pay for costs of unloading if unloading was not included in the seller’s original contract for carriage.
  • Pay all costs relating to import formalities, duties, fees, and taxes.
  • Pay costs of onward carriage.
Notice to the Buyer - Notice to Seller
  • Provide timely notice that enables the buyer to take possession of the goods at the named place of destination, within the agreed-upon time.
  • If, according to the sales contract, the buyer is entitled to specify a time and/or point of taking delivery at the named place of destination, to give seller sufficient notice.
Delivery and Transport Documents - Proof of Delivery
  • Provide the buyer with a document that will allow the buyer to claim the goods at the named place of destination.
  • Accept the seller’s delivery document [3] if it is in conformity with the sales contract.
Checking, Packing, Marking - Inspection(s)
  • Pay all costs associated with checking the quality and quantity of the goods to be in conformity with the sales contract.
  • Provide pre-shipment inspections as required for export formalities.
  • Package the goods, unless the goods are conventionally sold unpackaged.
  • Package the goods as the seller deems appropriate for transport, unless the buyer has given specific requirements prior to the finalization of the sales contract.
  • Provide marking appropriate to the packaging.
Other
  • Timely provide the buyer, at the buyer’s request and cost, assistance in securing information and documents, including security information, required by the buyer for import and transport of the goods from the named place of destination to the final destination.
  • Reimburse the buyer for buyer’s costs related to securing information and/or documentation, including security information the seller requires for export formalities, transport, security clearance, and transshipment to the named place of destination.
  • Timely advise the seller of any security-related data requirements.
  • Reimburse the seller for seller’s costs related to securing information and/or documentation, including security information, that the buyer requires for import formalities, security clearance, and transport of the goods to the final destination.
  • Timely provide the seller, at the seller’s request and cost, with any documents and/or information required for export, transport, and security clearance of the goods to the named place of destination.


Examples [1]

  • DAP, Iskandar Malaysia (IM), Terminal 1, Johor, Malaysia
  • DAP, Customs Warehouse, Port of Vladivostok, Russia

Notes

  • [1] The examples given hereto are to illustrate purposes concerning the syntax of Incoterms® 2010 rules and could conform with any real data occasionally only.
  • [2] According to Incoterms rules, seller and buyer have reciprocal responsibilities only. The "no obligation" term often used in the rules of Incoterms means that one party has not obligation to the other party. In this case (Art. B.3.А - Incoterms® 2010) the buyer has obligation neither to arrange nor to pay the contract on carriage. The "no obligation" term has the same understanding for the both parties in the case of insurance. However, the "no obligation" term being applied to the second party does not mean that the task performance is out of the first party’s interests (Articles А.3.В and B.3.B in Incoterms® 2010). So, for the case of the DAP rule, despite the fact that the buyer has not responsibility to the seller for the contract on carriage, it is clear, that the buyer has an interest to have such a contract on carriage that will deliver the goods to the buyer’s place of destination safely and in the time stipulated.
  • [3] Delivery document term used as the heading to article A8 (Incoterms® 2010) means a document used to prove that delivery has occurred. For many of the rules of Incoterms® 2010, the delivery document is a transport document or corresponding electronic record. Nevertheless [2], with EXW, FCA, FAS and FOB rules, the delivery document may simply be a receipt. A delivery document may also have other functions, for example as part of the mechanism for payment declaration: refers to comply with customs regulations and have met some of the requirements, including the notes, Enron, information or physical inspection of the obligation. Such requirements are particularly common in construction contracts with large contractors, government entities, and major corporations.

References

  1. ↑ Incoterms® 2010: ICC rules for the use of domestic and international trade terms – ICC Publication No 715E
  2. ↑ Financial terminology | http://financialterminology.info/2011/06/incoterms-2010-international-edition-b/
Retrieved from "http://scm.gsom.spbu.ru/DAP_(Delivered_At_Place)"
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