Part of the Comprehensive Incoterms Guide
What Is DAP In Shipping?
For DAP (Delivered At Place) shipping, the seller takes on the responsibility of coordinating the entire shipment, from packing and transportation to the destination, ensuring it reaches the buyer’s specified location. However, it’s important to note that import customs clearance, duties, and taxes remain the buyer’s responsibility in this arrangement. This allows for a seamless and convenient experience for buyers, while still requiring them to manage the necessary customs and regulatory requirements associated with international shipments.
Where Is The Named Place For Handing Over Responsibility From The Seller To The Buyer?
The named place for handing over responsibility from the seller to the buyer in international trade is determined by the agreed-upon Incoterms, a set of standardized terms established by the International Chamber of Commerce (ICC). These terms define the obligations and responsibilities of the seller and the buyer during the various stages of a shipment’s journey.
In the case of DAP (Delivered At Place), the seller bears the responsibility and risk for the shipment until it reaches the named place within the importing country, often specified as the buyer’s preferred location, which can be their own warehouse, an Amazon Fulfillment Center (FBA warehouse), the forwarder’s warehouse, or any other mutually agreed-upon location. This means the seller is responsible for not only the transportation of the goods to this named place but also for any associated costs and risks up to that point.
However, it’s important to note that the named place for handing over responsibility in international transactions can vary depending on the specific Incoterms used. For example, in the case of FCA (Free Carrier), the named place can indeed be a terminal, such as a port, airport, or other transportation hub. In this scenario, the seller’s responsibility ends when they deliver the goods to the specified terminal, and from that point onward, it becomes the buyer’s responsibility.
To ensure a smooth and well-documented transaction, it is crucial for both parties to clearly define the named place for the transfer of responsibility in their contract and to understand the implications of the chosen Incoterms on their respective roles and obligations in the shipment process.
What Does The ICC Say?
Recommended for containerized freight.
Is This A Good Choice?
This is probably not a convenient arrangement, as the seller is usually in a much poorer position than the buyer for arranging tasks in the import country.
DAP Freight Tips And Tricks
- All tips and tricks for DAT also apply for DAP, excepting the first – responsible for unloading.
- For DAT the seller is responsible for unloading. For DAP the buyer is responsible for unloading.
- If the terminal is selected as the named place, DAP is exactly the same as DAT, excepting the seller pays for unloading.
DAP Cost and Prices
When shipping under the DAP incoterm, sellers are responsible for all costs with the delivery of goods to the final destination. This applies to sea and air freight, and ground transport.
Some additional charges that need to be considered are freight insurance, customs, duties, and taxes, and any costs associated with unloading cargo at the final destination.
DAP replaced DAF, DES, and DDU incoterms.
DAP Shipping Cost Calculator
You can use our freight rate calculator to help you decide how different incoterms will impact your freight cost. For example, when shipping EXW, you’ll be responsible for the added cost of getting your goods from your supplier to the seaport or airport. Simply choose container, box, or pallet shipping, enter your dimensions and weight, and you’ll get an instant estimate of freight shipping costs.
DAP vs DDP Incoterms
Incoterms can get confusing, especially when the letter terms are so similar. Take for example DAP and DDP. These incoterms are easy to mix up but they are distinct. With DDP, buyers are responsible for unloading and sellers are responsible for everything else including packing, labeling, transport, customs, duties, and taxes. When shipping under the DAP incoterm, buyers are responsible for unloading, as well as customs clearance, duties, and taxes.