DAP (Delivered At Place)

From Supply Chain Management Encyclopedia

Revision as of 09:52, 24 August 2011

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
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►

Examples [1]

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

Notes

• [1]

References

1. ↑ Incoterms® 2010: ICC rules for the use of domestic and international trade terms – ICC Publication No 715E