DAP is one of the incoterms created to determine the authorities and responsibilities of exporters and importers. DAP incoterm is described in incoterms 2010 with all the details.
DAP Delivery Term
DAP / Delivered at Place (Specified Place of Delivery, term)
DAP Delivery term is the delivery very similar with CIP. The seller ie exporter company responsible for main shipment till the goods reach to the buyer facility. Avoid any confusion regarding the final destination, its better to mention on invoice and sales agreements as "DAP ... City"As a note, incoterms including 11 different delivery methods and DAP is the one of this in D group incoterms..
Delivery at Place
In the form of DAP delivery, the exporter company organize the shipment process in such a way as to deliver the cargo to an agreed place or the buyer's facility in the country of the buyer. Basicly, The exporter company ie "seller", have to ship the goods from his facility to the buyer's facility or any agreed delivery point in buyer's country.This process include an expense; inland transportation, customs clearence, port charges, shipment costs, port charges in destination port and also inland transportation in buyer's country. Basicly, the seller ie "exporter company" responsible to deliver the goods to the destination port or any agreed adress.
For example, if the delivery term in the contract or in the proforma invoice is given as DAP Berlin ABC Warehouse. The exporter company located in Istanbul city. The exporter company is responsible for the shipment processes and handle the insurance until the goods reach to London city, ABC warehouse. As a note: The customs clearence should be handle by the buyer ie importer company.
What is the Difference between CIP and DAP
CIP delivery term is very similar with DAP. The main difference is insurance responsibility.According to CIP delivery temr, the freight insurance should be handled by the seller ie "exporter" company. DAP delivery term dont include the "freight insurance" So, the exporter company responsible for the shipment process on the other hand, the buyer ie importer company should make the freight insurance.
DAP Delivery Term Insurance Obligation
In the form of DAP transport, insurance is the buyer's obligation. Buyer's insurance covering the inland transportation, international shipment and also inland transportation at destination country. The insurance obligation finish when the goods reach to detination point.DAP, "Delivered at Place" How to Calculate Price
When calculating the DAP price, the seller, ie the exporter company, adds the profit share on the cost of the product, the packaging cost, the factory loading, the internal transportation charge, the port costs (if its a sea shipment), the customs costs (in seller's country), the freight cost and also inland delivery. In this way DAP price is determined.DAP Price Account: Product cost + profit share + packaging costs + loading in factory + inland transportation + port charges + customs expenses + freight cost + inland port charges (if agreed) transportation at destination country
DAP Delivery Term: How it works
According to the DAP delivery method, the seller makes the shipment plan including all process and steps in DAP delivery term. ETA (estimated date of arrival) to be taken from the carrier before shipment and buyer (importer) company let know about this. If buyer company has any deadline, shipment alternatives and delivery time checked when exporter company prepare the proforma invoice or contract. The buyer should know about the delivery time to to prevent future problems.DAP delivery term using both ship and truck deliveries. The exporter ie "seller" company organize the truck or vessel shipment and handle the shipment organization till the goods reach to agreed delivery point. Delivery address could be the buyer's facility or any other point in buyer's country.
DAP delivery terms also using for some overseas shipments using both truck & vessel. In this scenerio; The truck or semi-trailer pick up the goods from the buyer's facility and carried with ro-ro ship to the destination port. The truck continue to the road when ro-ro ship unload the truck at destination port. Finally its reach to finall adress and unload the container to the buyer's facility.
DAP Delivery In the form of Buyer and Seller's Responsibilities
Seller (Exporter) responsibilities DAP delivery Term- The seller load the container in his own facilities,
- The seller should arrange the international shipment
- Organizes the inland transportation to reach container to harbour,
- Ensures that the cargo is loaded to the ship on time
- Complete the customs clearence
- International shipment costs belong to the seller.
- Inland transportation from destination port to agreed place in destination country
Buyer (Importer)
- The seller company should prepare the insurance covering all risks
- The buyer's responsibilities start when the goods reach to destination port/place
- Customs clearance at destination point (in buyer's contry)
DAP delivery term mostly using instead of CIP, when the buyer dont want to organize the shipment but need to make the freight insurance.
DAP "Delivered at place" Delivery and Distribution of Responsibility
The seller ie exporter company should prepare the documents including: invoce, packing list, certificate of origin. Exporter company also handle the customs clearence process in exporting country.
The seller ie exporter company handle the shipment process so they also managed the shipment with carrier company. As an advice, its better to send the Bill of lading draft to the buyer (importer) company and get their confirmation before the Bill of lading done.
The carrier company agent contact with the buyer (importer) company before the ship reach to destination port and let them know about the arrival date and details about the goods. The seller company also should send the original documents to the buyer company before the ship arrives to destination port. The buyer company responsible for all demuraggae costs or any other extra expense at destination port, because of their faulty or latency about the customs clearence.
The seller (Exporter) company should send their export documents including; "invoice, packing list, certificate of origin, bill of lading and any other agreed document" to the buyer by courier.
When both party agree on DAP delivery term, Delivery point should be clear and its better to mentioned on proforma invoice or sales agreement contract or purchase order form and both side confirm this document.
DAP Delivery Term : Responsibilities for Both Side
| details DAP | Costs | Risks |
| Packaging | Seller ie exporter | Seller ie exporter |
| Internal shipment (to the harbour) | Seller ie exporter | Seller ie exporter |
| Customs clearence | Seller ie exporter | Seller ie exporter |
| Port Loading (handling charges) | Seller ie exporter | Seller ie exporter |
| Shipment (main shipment charges) | Seller ie exporter | Seller ie exporter |
| Insurance | Buyer ie importer | Buyer ie importer |
| Port Unloading at destination (handling) | Seller ie exporter | Seller ie exporter |
| Customs clearence at destination | Buyer ie importer | Buyer ie importer |
| Internal shipment at destination ( (www.ihracat.co) | Seller/Buyer | Seller/Buyer |
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