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Delivered at Place (DAP) – Incoterms® 2020 Rules [UPDATED 2025]
The Delivered at Place (DAP) rule under Incoterms 2020 applies to any shipping method, where the seller is responsible for delivering goods to a designated location. This is considered an extension of Delivered at Place Unloaded (DPU), with the distinction that under DAP, the buyer is responsible for unloading the goods.
Introduction to Delivered at Place (DAP)
The DAP Incoterm assigns the following responsibilities:
- The seller must deliver the goods to a specified location (usually the buyer’s site) and handle any export procedures.
- The buyer is responsible for unloading the goods and for completing any import procedures.
Similar to CPT and CIP, risk transfers from the seller to the buyer at the moment of delivery at the buyer’s site. The seller is not obligated to insure the goods for the buyer.
Key Changes and Updates in DAP Incoterms 2020
If goods are sent by air and require import formalities, the buyer must handle these while the goods are at the airport. Once cleared, the seller’s carrier must obtain proper documentation to move the shipment. This situation is similar for shipping with additional challenges, such as returning empty containers. The seller must also be the consignee on any transport documents.
DAP Seller and Buyer Responsibilities
A1 / B1: General Obligations
The seller must provide the goods as described in the sale contract and any necessary conformity evidence. The rules allow documents to exist in either paper or electronic format, although the latter is not explicitly defined.
A2: Delivery
Under DAP, the seller is tasked with delivering goods to the designated location without needing to unload them. Delivery does not have to happen at the buyer’s premises but can occur at any suitable site nominated by the buyer.
A9 / B9: Cost Allocation
The seller covers all costs until the goods are delivered, except for costs the buyer is responsible for, including unloading and import duties. If the seller requires documents for customs clearance, they must compensate costs incurred by the buyer.
DAP: Pros and Cons
Advantages
The DAP rule offers flexibility regarding the delivery location and suits both domestic and customs union trades, although it might be impractical for international shipping.
Disadvantages
In international shipping, the buyer is responsible for import clearance, which may lead to complications with customs delays. If the buyer encounters issues such as improper import permits, it can prevent the seller from fulfilling delivery obligations.
Is DAP Better Than CIP?
The differences between DAP and CIP typically favor neither party. The seller retains risk until delivery; thus, complications like loss or damage could lead to contract breaches.
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