DAP Incoterm Meaning Explained

The full form of DAP is “Delivered at Place” and the DAP Incoterms which means that it is the responsibility of the seller to not only deliver the goods but also unload the goods at the client’s address. Therefore, all the risks involved up to unloading are the seller’s while the unloading itself is done at the cost and risk of the buyer.

DAP Incoterm meaning explained

DAP can be carried out through any transport mode and so, involves more than one transport mode. Under DAP Incoterm, it’s a must that the seller and the buyer agree upon an unloading spot at the destination place which is clearly specified.

No reimbursement or remuneration for the unloading costs involved can be claimed by the seller unless any agreement specifying so is reached by the two parties. Under DAP Incoterm, the goods for export should be cleared by the seller where applicable. However, clearing goods for import, paying the import duties or carrying out customs formalities involved in the import of goods isn’t the seller’s responsibility.

DAP Incoterm Obligations

The Seller’s Obligations

  • The documentation, commercial invoicing, and the goods itself
  • Marking and packaging the goods for export
  • Managing the customs formalities and acquiring necessary export licenses
  • Delivery of the goods and the responsibility of the goods before their carriage are the seller’s
  • The charges incurred for loading
  • Cost of inspection before shipment
  • The transport of the goods
  • The delivery of the goods to the place of destination specified
  • Furnishing the proof of delivery

The Buyer’s Obligations

  • Paying for the goods acquired as per contract specifications
  • Unloading the goods after they arrive on the means of transportation
  • All the formalities and duties involved in importing
  • The cost involved in pre-shipment inspection for import clearance
  • Further transport and delivery to the final place of destination

Point to Note

The coverage for any damage that may be caused to the goods till they reach their designated port is to be borne by the seller. The seller can also opt for marine insurance if transport by sea/ocean is involved. With the risk and damage to goods being the seller’s liability till their delivery to the designated port, ensuring the goods is his responsibility too.

Some Frequently Asked Questions

Is Unloading included in DAP?

Yes, the unloading of goods is included in DAP and it’s the buyer’s responsibility to do so at the port of destination where the goods are delivered.

Who is to pay for the DAP freight?

As the carriage proceedings are his liability, the payment for the DAP freight is to be done by the seller till the country port of the importer.

How is DAP different from DAT?

The fundamental difference between the two is that under DAP, the unloading of the goods at the dock port is the buyer’s responsibility. On the other hand, under DAT, it’s the seller’s liability.

Is there any difference between DAP and CIF?

Yes, there is. The fundamental difference lies in the mode of transportation. In DAP, all modes of transportation are included while CIF includes only water and inland transport.

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