This term may be used irrespective of the chosen mode of transport and by using more than one mode of transport.
DAP-Incoterms-2010-VINCULUM- Customs clearance Vladivostok-GK-IMPORT40Factory or warehouse manufacturer or sellerDelivery from the factory or warehouse to the departure terminalPlacement of goods on the cargo terminalPlacing goods on boardState borderSea transportation to the port of dischargeAccommodation at the temporary storage at the port of arrival (unloading)Delivery of goods ready for unloading from the vehicleConsignee WarehouseSeller’s cost and responsibility area for DAPThe cost zone and the responsibility of the buyer when DAPMoment of risk transfer when DAP!

Delivered at Place (Delivery at destination) means that the seller delivers when product delivered to the buyer on the arrived vehicle, ready for unloading, at the agreed destination. The seller bears all risks associated with the delivery of the goods to the named place. It is recommended that the parties identify the point at the agreed destination as accurately as possible, since the seller carries risks up to this point. The seller is recommended to provide contracts of carriage in which such a choice is accurately reflected. If the seller, under his contract of carriage, bears the cost of unloading at the agreed destination, the seller is not entitled to demand compensation from the buyer for such expenses unless otherwise agreed by the parties.

DAP requires the seller to perform customs formalities for export, if applicable. However, the seller is not obliged to carry out customs formalities for importation, pay import duties or perform other customs formalities upon importation.

If the buyer wishes to entrust the seller with the fulfillment of customs formalities for import, the payment of any import duties and the implementation of other customs formalities for import, it is advisable to use the term DDP.

For the buyer DAP it is convenient because the exporter takes on organizational issues with the delivery of the goods. But all these costs, the seller will still include in the price of the goods.

Learn what you need to consider and take when choosing DAP. Close the list of actions for DAP
  • to clarify in detail the parameters and characteristics of the packages (including labeling), this is necessary for the subsequent customs clearance of goods;
  • clearly agree with the seller and define in the contract the place of delivery of the goods;
  • agree with the insurance company the terms of insurance, if necessary;
  • obtain permits, if necessary;
  • pay customs charges for importing goods;
  • to carry out customs clearance of goods;

This list is not complete and depends on the specific case.

 

1. General obligations of the seller and the buyer under the conditions DAP

A.1.The seller is obliged, in accordance with the contract of sale, to provide the buyer with the goods, the commercial invoiceinvoice, as well as any other proof of compliance of the goods with the terms of the contract of sale, which may be required under the terms of the contract.
Any document referred to in paragraphs A1-A10 may be replaced by an equivalent electronic record or procedure if agreed by the parties or is common.
V.1. The buyer must pay the price of the goods, as provided for in the contract of sale.
Any document referred to in paragraphs B1-B10 may be an equivalent electronic record or other procedure, if agreed by the parties or is common.

2.Licenses, permits, security controls and other formalities under the conditions DAP

A.2.If required, the seller must, at his own expense and risk, to obtain an export license or other official authorization and carry out all customs formalities necessary for the export of goods and their transport through any country.
V.2.If required, the buyer must obtain at his own expense and risk import license or other official authorization and carry out all customs formalities for the import of goods and its transportation through any country.

3. Contracts of carriage and insurance under conditions DAP

A.3.a) Contract of carriage
The seller must at his own expense for the carriage of the goods to the named destination or to the agreed point, if any, at the named place of destination. If a specific point is not agreed or can not be determined on the basis of practice, the seller may select the most appropriate for its target point at the named place of destination.
b) Contract of insurance
The seller no duty to the buyer under a contract of insurance. However, the seller must provide the buyer, at his request, at his risk and expense (if any costs) required customer information to obtain insurance.
V.3.a) Contract of carriage
The buyer has no obligation to the seller to conclude a contract of carriage.
b) Contract of insurance
The buyer has no obligation to the seller to conclude a contract of insurance. However, the buyer must provide the seller, at his request, the information necessary for the conclusion of the insurance contract.

4. Delivery and acceptance of goods under conditions DAP

A.4.The seller must deliver the goods by placing them at the disposal of the buyer on the arriving means of transport ready for unloading at the agreed point, if any, at the named place of destination on the date or period.
V.4.The buyer must take delivery of the goods when they have been delivered in accordance with paragraph A4.

5. Transfer of risks under conditions DAP

A.5.Seller shall bear all loss or damage to the goods until it is delivered in accordance with paragraph A4, with the exception of the risks of loss or damage in the circumstances referred to in paragraph B5.
V.5.The buyer bears all risks of loss or damage to the goods from the moment of delivery in accordance with paragraph A4.
If:
a) the buyer does not fulfill his duties in accordance with paragraph B2, it bears all the related loss or damage risks; or
b) the buyer does not fulfill its obligation to provide notification in accordance with paragraph B7, he shall bear all risks of loss or damage to the goods from the agreed date or the date on which the agreed delivery period has expired,
provided that the goods were explicitly individualized as a commodity, which is the subject of the contract.

6 Allocation of costs under conditions DAP

A.6.The seller must pay:
  • in addition to the costs stipulated in paragraph A3 a), all expenses related to the goods until delivery in accordance with paragraph A4, except for expenses paid by the buyer, as provided for in paragraph B6;
  • any costs of unloading at the destination, which are attributed under the contract of carriage to the seller;
  • if necessary, the costs associated with the performance of customs formalities levied on export, the payment of all duties, taxes and other charges levied on the export of goods, as well as transportation costs through any country before delivery, as provided for in paragraph А4.
V.6.The buyer must pay:
  • all expenses related to the goods from the moment of delivery, as provided in paragraph А4;
  • all unloading expenses necessary for accepting the goods from the arriving means of transport at the named place of destination, if under the contract of carriage such expenses are not borne by the seller;
  • any additional costs incurred by the seller due to the buyer’s failure to fulfill obligations under paragraph B2 or failure to submit a notice in accordance with paragraph B7, provided that the product was explicitly individualized as a product subject to the contract;
  • if necessary, the costs of customs clearance, as well as the payment of taxes, duties and other fees paid when importing goods.

7.Notification to buyer and seller under conditions DAP

A.7.The seller must provide the buyer proper notice, allowing the buyer to take steps normally required in order that he may carry out acceptance of the goods.
V.7.Since the buyer have the right to set a date within the agreed period and / or the point of taking delivery at the named place of destination, he must account to the seller due notice thereof.

8.Documentary proof of delivery under conditions DAP

A.8.The seller must at his own expense provide the buyer with a document that allows the buyer to take delivery of the goods, as provided for in paragraphs A4 / B4.
V.8.The buyer must take delivery of the document issued in accordance with paragraph A8.

9.Checking, packaging, labeling and inspection of goods under conditions DAP

A.9.The seller must pay all costs associated with checking (checking quality, measuring, weighing, counting) which are necessary for the delivery of goods in accordance with paragraph A4, as well as the costs of inspection of goods before shipment, which is prescribed by the authorities of the exporting country.
The seller must, at his own expense, ensure the packing of the goods, unless it is customary in the industry to ship the goods specified in the contract in unpacked packaging. The seller may pack the goods in such a way as is necessary for his transportation, unless the buyer informs the seller about the specific packaging requirements before entering into the contract. Marking packaged goods must be properly implemented.
V.9.The buyer must pay the costs for the mandatory inspection of goods prior to shipment, except when such inspection is carried out by order of the authorities of the exporting country.

10. Assistance in obtaining information and related costs under the conditions DAP

A.10.If need be, the seller is obliged to provide the purchaser or to assist him in obtaining, at the request of the buyer, at his risk and expense, documents and information, including safety information, which may require the purchaser to import goods and / or transportation to the final destination.
The seller is obliged to compensate the buyer for all costs and charges incurred by the buyer in obtaining or providing assistance in obtaining documents and information as provided for in paragraph B10.
V.10.The buyer must notify the seller in a timely manner the requirements with regard to safety information, so that the seller could act in accordance with paragraph A10.
The buyer must reimburse the seller incurred by him costs and charges for providing or rendering assistance in obtaining documents and information as provided for in paragraph A10.
If required, the buyer is obliged to provide the seller or facilitate in the seller receiving, at the request of the seller, at his risk and expense, documents and information, including important safety information, which may require the seller to transport, export of goods and for their transport through any country.
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