DAP (Delivered at Place) Arrival Point
- Author :
- TATA AIG Team
- ●
- Last Updated On :
- 03/12/2024
- ●
- 2 min read
DAP (Delivered at Place) is a vital incoterm introduced in 2000 to replace a few existing terms. Understanding DAP is crucial for anyone involved in international shipping and trade. Knowing the specific obligations of each party involved in a trade helps avoid misunderstandings, disputes and financial losses.
This blog will delve into the intricacies of DAP (Delivered at Place) Arrival Point. We will explore the DAP meaning in shipping, key responsibilities and the specific point of delivery under this Incoterm.
DAP Meaning in Shipping
Delivered at Place (DAP full form) is an international commercial term used in international trade to clarify the point where the seller’s responsibility ends and the buyer’s begins.
Under the DAP delivery terms, the seller is responsible for ensuring that the goods reach a designated location and are ready for unloading. Here is where the buyer takes over. The buyer must then cover any costs related to import duties, clearance and local taxes.
One of the key aspects of DAP is defining the arrival point, which must be clearly stated in the contract. This can be a port, airport, warehouse or any other agreed-upon location. DAP was introduced in 2000 to replace older incoterms like DAF, DES, DEQ and DDU, simplifying international trade.
Seller’s Obligations Under the Delivered at Place Incoterms
Rule | Title | Description |
---|---|---|
A1 | Goods and Documentation Rules | The seller is responsible for supplying the agreed goods along with a commercial invoice and any additional documentation required, such as certificates or regulatory paperwork. |
A2 | Delivery Guidelines | The seller must ensure that the goods are delivered to the specified destination as per the agreed terms. However, their obligation ends at delivery and they are not responsible for unloading the goods from the transport vehicle. |
A3 | Risk Transfer Guidelines | The risk of damage or loss remains with the seller until the goods reach the agreed destination. |
A4 | Transportation Arrangements | It is the seller’s duty to organise and cover the cost of transporting the goods to the named location. |
A5 | Insurance Requirements | The seller is not obligated to provide insurance coverage for the goods during transportation, even though the risk remains with them until delivery. If insurance is needed, it typically falls on the buyer to arrange this. |
A6 | Documentation for Goods Transfer | The seller must provide all relevant documentation that enables the buyer to claim and take control of the delivered goods without any unnecessary delays or complications. |
A7 | Export and Import Regulations | The seller is responsible for ensuring that the goods are cleared for export from the country of origin and for arranging any transit clearances if the goods pass through other countries on their way to the destination. |
A8 | Packaging and Marking Standards | The seller must properly package, label and check the goods to ensure they are suitable for transportation, following industry standards or any specific requirements laid out in the contract. |
A9 | Cost Allocation | All expenses related to transport, export duties and other logistical fees are the responsibility of the seller up until the goods are delivered to the buyer’s location. |
A10 | Notification | The seller is required to inform the buyer once the goods are delivered and provide any necessary information that will help the buyer receive and manage the goods upon arrival. |