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DAP - Delivered At Place

The Incoterm DAP stands for “Delivered At Place.” Under DAP, the seller is responsible for delivering the goods to a named destination (agreed-upon location) and covers all transportation costs and risks up to that point. The buyer is responsible for unloading the goods and handling import duties, taxes, and customs clearance at the destination.



Key Features of DAP:

1. Seller’s Responsibilities: The seller bears all costs and risks associated with transporting the goods to the agreed destination. This includes packaging, export duties, shipping, and any potential risks or damages during transit.
2. Buyer’s Responsibilities: The buyer is responsible for unloading the goods upon arrival and handling any import duties, taxes, and customs formalities. The buyer also assumes the risk for the goods once they have been delivered and are ready for unloading.
3. Named Place: The named destination can be any location agreed upon between the buyer and seller, such as a warehouse, distribution center, or factory. The key is that the seller delivers the goods ready for unloading at that place.



Example of DAP:

A furniture manufacturer in Italy sells and ships furniture to a retailer in New York under DAP terms. The manufacturer arranges for transportation to the retailer’s warehouse in New York, including paying for shipping and handling the export formalities. Once the goods arrive at the retailer’s warehouse, the retailer is responsible for unloading the furniture and paying any customs duties or taxes to U.S. authorities.



Significance of DAP:

1. Simplifies Delivery for Buyers: DAP is advantageous for buyers who prefer not to manage the complexities of international shipping logistics. The seller takes care of most of the transportation and shipping process, ensuring that the goods arrive at the specified location.
2. Balanced Risk and Cost Allocation: Under DAP, the seller assumes responsibility and risk until the goods arrive at the destination. This provides reassurance to the buyer that the seller will manage transportation risks until the goods are delivered.
3. Customs and Import Duties: DAP highlights the point at which responsibilities shift from seller to buyer. While the seller handles the transportation, the buyer takes over at the point of import, including customs clearance and paying any applicable import duties and taxes.
4. Flexibility: The flexibility of DAP allows for delivery to any agreed place, whether it’s a port, warehouse, or another location, making it suitable for a wide variety of industries and delivery scenarios.



In summary, DAP is significant because it provides clarity in international trade by defining a clear division of responsibilities. The seller manages all shipping and transport logistics, while the buyer handles unloading, customs, and import duties, making the trade process smoother and reducing risks for the buyer.

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