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December 6, 2017 at 10:28 AM

DAP terms of shipping have been introduced in 2010.   Before 2010,  DDU had been used almost similar to the functions of DAP.  However, DDU is used even now among some traders.

 

What is DAP?

DAP means, Delivered in Place ( up to the named destination mentioned). In a DAP terms, the seller delivers goods up to the destination mentioned in the contract agreed mutually. 


The term DAP can be used in any mode of transport.

 

When does the risk pass from seller to buyer under DAP terms?

Under DAP terms, the risks pass from seller to buyer from the point of destination mentioned in the contract of delivery by seller.

 

Once goods are ready for shipment, the necessary packing is done by the seller at his on cost, so as to reach the material up to the final destination safely.  The materials are moved to customs location opted by the seller at exporting country at his own expenses under DAP.   All necessary legal formalities in exporting country are completed by the seller at his own costs and risks to move the goods to destination mentioned in DAP.  Apart from necessary customs clearance procedures and formalities at exporting country, the insurance up to the destination mentioned in DAP terms is arranged by the seller at his own costs and risks.  In a DAP terms, necessary carriage expenses with any terminal expenses are paid by seller up to the destination mentioned.  The necessary unloading cost at final destination has to be borne by the seller under DAP terms if specifically not mentioned in the contract. If unloading expenses cannot be met by seller, better terms of shipping can be DAT (Delivered at Terminal of place mentioned)

 

Once after the arrival of goods at destination mentioned in DAP terms, the customs clearance at importing country needs to be completed by the buyer at his own cost and risk.  Transportation from the point of destination mentioned in DAP terms to the final destination of the buyer, need to be undertaken by the seller at his own cost and risks.

 

So under DAP terms of shipping, the seller meets all expenses and risks to deliver the goods up to the destination mentioned in the contract.  From such point of location mentioned in DAP terms, the buyer undertakes all risks and responsibilities to reach the goods at his premises at his own expenses.