Delivered-at-Place (DAP) - Definition
Delivered-at-Place (DAP) is an international trade term defined in the Incoterms published by the International Chamber of Commerce, where the seller takes full responsibility for transporting goods to a designated location. The seller bears all costs and risks until the goods reach that location, while the buyer is responsible for import duties and any further costs incurred after delivery.
Comparison with Other Trade Terms
| Delivered-at-Place (DAP) |
Cost, Insurance, Freight (CIF) |
| Seller bears the risk until goods are delivered. |
Seller bears risks and costs until the goods are loaded on the vessel. |
| Buyer is responsible for import clearance and duties. |
Seller covers costs to the destination port, including insurance. |
| Applicable for any mode of transport or combination of modes. |
Primarily used for maritime transport. |
How DAP Works
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Seller Responsibilities:
- Packing and transporting goods to agreed location.
- Paying for all costs related to delivery (freight, handling, etc.).
- Risk remains with the seller until goods are delivered.
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Buyer Responsibilities:
- Paying applicable import duties once the goods arrive.
- Assuming all responsibilities and risks after delivery.
graph TD;
A[Seller] -->|Bears Cost & Risk| B[Delivery Location]
B -->|Buyer Pays Import Duties| C[Import Duties]
C -->|Buyer Assumes Responsibility| D[Goods]
- Cost, Insurance, Freight (CIF): Seller arranges and pays for shipping and insurance costs, reaching only to the destination port.
- Free on Board (FOB): Seller’s responsibility ends once goods are loaded onto the ship.
Humorous Insights
- Why do ships never get lost? Because they navigate with ‘good sense’ rather than ‘bad routes.’
- Remember, under DAP, the seller handles the heavy lifting, not just the boxes but all the responsibilities! 📦😅
Fun Fact
Did you know that the DAP term was included in the 2010 revision of Incoterms? It’s like the upgrade for international selling; everyone was like, “Finally, a simpler way to understand responsibilities!”
FAQ
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Q: Does the seller cover costs for damages during transportation?
A: Yes, the seller shoulders all risks and costs until you’ve got your shiny new goods in your hands.
-
Q: Can DAP be used for all modes of transportation?
A: Absolutely! Whether by road, rail, air, or sea, DAP’s got your back!
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Q: What if the goods do not arrive?
A: Oh dear! In that case, the seller is responsible until delivery, so they better check their GPS! 🚚
Recommended Reading and Resources
Take the Plunge: Delivering Knowledge on DAP Quiz!
## What does DAP stand for?
- [x] Delivered-at-Place
- [ ] Delivered-at-Port
- [ ] Delivered-at-Package
- [ ] Delivered-at-Payment
> **Explanation:** DAP stands for Delivered-at-Place, meaning the seller covers everything up until the goods reach the buyer's chosen destination.
## Who is responsible for import duties under DAP?
- [ ] The seller
- [ ] Both the buyer and seller
- [x] The buyer
- [ ] The local post office
> **Explanation:** Under DAP terms, the buyer is responsible for paying any import duties upon the arrival of the goods.
## What is the main risk borne by the seller in a DAP agreement?
- [ ] Damage to the product at the destination
- [x] Risk during transportation and until delivery
- [ ] Political unrest
- [ ] Weather for the delivery vehicle
> **Explanation:** The main risk for the seller under DAP is managing all risks involved in getting the product to the specified location until it arrives.
## Under DAP, when does the buyer assume responsibility?
- [ ] As soon as payment is made
- [x] Once the goods have reached the specified location
- [ ] After the offloading occurs
- [ ] Once the seller has declared shipping
> **Explanation:** The buyer takes over risks and responsibilities after the goods have been delivered to the specified location, as per DAP terms.
## Which of the following is true about DAP?
- [ ] It's only used for air transport.
- [x] The seller pays all costs up to delivery.
- [ ] The buyer pays for transportation.
- [ ] The goods are delivered at the port only.
> **Explanation:** The beauty of DAP is all costs until delivery are borne by the seller, making it convenient for the buyer!
## What happens if a DAP delivery is delayed?
- [ ] The seller can add extra fees.
- [ ] The buyer can cancel the contract.
- [ ] The seller is exempt from any penalties.
- [x] The seller bears the consequences of delays.
> **Explanation:** The seller is responsible for ensuring that the goods arrive on time, hence they bear the burden of delays.
## In which revision of Incoterms was DAP introduced?
- [ ] 1990
- [ ] 2000
- [x] 2010
- [ ] 2020
> **Explanation:** DAP was officially introduced in the 2010 edition of Incoterms, improving clarity for international shipping.
## Can a seller refuse to deliver under DAP if import duties are not paid?
- [ ] Yes, they can withhold the shipment.
- [x] No, seller must deliver as per agreement.
- [ ] Yes, but only if the goods are too heavy.
- [ ] Of course, that's seller's prerogative!
> **Explanation:** Once an agreement is made, the seller must deliver regardless of the buyer's duties since they've agreed to every detail.
## Is DAP used to describe online shopping?
- [ ] Yes, every time.
- [x] No, it refers to international trade.
- [ ] Yes, when they arrive at your door.
- [ ] Only if using generic terms.
> **Explanation:** While similar in context, DAP specifically pertains to the formalities of international trade agreements.
## Which type of transportation is NOT applicable under DAP?
- [x] None! All modes are valid.
- [ ] Only air freight
- [ ] Only sea freight
- [ ] Only land freight
> **Explanation:** DAP applies to any mode of transport; the seller is responsible until goods are at the specified location—no exclusions here!
Thank you for gaining valuable insights on Delivered-at-Place (DAP) and turning your international shipping ventures from chaotic to crystal clear. Remember, in the world of trade, knowledge is as good as gold! Keep smiling and shipping! 🌍🚚😄
