DAP Incoterms - A Complete Guide of Delivered at Place

July 17, 2024

What is DAP?

Incoterms DAP stands for “Delivered at Place”. In practice, many traders still use the DDU (Delivered Duty Unpaid) term and from 2010, it has been replaced by DAP.

DAP Incoterms Meaning:

• The seller arranges and delivers the goods to the designated place, handling all costs and risks during the process.
• After that, the buyer takes responsibility for unloading (the seller may assist) and cover import duties, customs clearance, and taxes.

Obligations

Seller Obligations:

• Documentation
• Packaging
• Export Approval
• Export Duties, taxes, customs clearance
• Delivery

Buyer Obligations:

• Unloading
• Import Duties and Taxes

When to Use Incoterms DAP

1. When seller is unfamiliarity with destination country's logistics

DAP shipping terms is a good choice when the seller specializes in international shipping but finds the destination country's customs procedures too complex, using DAP incoterms can leave customs responsibilities to the buyer.

2. When transporting by land within the European and Asian continents

DAP shipping terms is often chosen in European and Asian continents, especially in the European Union where goods can move freely between member states without customs checks.

3. When buyers are new importers

Under DAP shipping terms, the seller is responsible for the arrangement and delivery during the whole shipping process. This reduces the risk for new buyers which are inexperienced importers.

Incoterms DAP VS DDP

Pros and Cons of DAP Incoterms

Pros

• Applicable for Multi-Modal Transport
• Global Recognition and Acceptance
• Lower risk for the buyer
• Simplified customs clearance process

Cons

• Greater risk for the Seller
• Possible delays in delivery due to customs or other issues

Conclusion

Usually, importers choose DAP terms for easier logistics. If the exporter handles import shipping procedures and costs, providing a seamless experience for the buyer. However, exporters should inform buyers about the import duties and VAT during quotation to avoid future disputes over unexpected costs. Additionally, there are still risks during the responsibility transfer stage.

To make your shipment arrive at the destinations successfully, you need to pick up an shipping terms which is most proper for your business model and your trade role.

As a digital global logistics expert, YQN logistics has a knowledge base for different Incoterms and related case studies.

If you want more information about DAP (Delivered At Place), please contact our logistics experts at YQN (link to landing page or about us page). Manage your supply chain today!

---

YQN Operation Team

info@yqn.com