DAP (stands for Delivered At Place) is the term of the international trade under Incoterms 2010 framework. This rule may be used irrespective of the mode of transport selected and may also be used where more than one mode of transport is employed.
“Delivered at Place” means that the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport available for unloading at the named place of destination. The seller bears all risks involved in bringing the goods to the named place.
The parties are well advised to specify as clearly as possible the point within the agreed place of destination, as the risks to that point are for the account of the seller. The seller is advised to procure contracts of carriage that match this choice precisely. If the seller incurs costs under the contract of carriage related to unloading at the place of destination, then the seller is not entitled to recover such costs from the buyer unless otherwise agreed between the parties.
DAT requires the seller to clear the goods for export, where applicable. However, the seller has no obligation to clear the goods for import, pay any import duty or carry out any import customs formalities. If the parties wish the seller to clear the goods for import, pay any import duty and carry out any import customs formalities, the DDP term should be used.
- Insurance: The buyer has no obligation to contract for insurance but must pay the cost if it does.
- Inspection: The seller pays only if the inspection is mandatory by local authorities.