Incoterms are the official International Chamber of Commerce (ICC) rules for the explanation of trade terms. Incoterms are adhered to by all major trading nations of the world, and it is the authoritative text for determining how costs and risks are allocated to the parties conducting international transactions. Incoterms facilitate the conduct of international business by defining the responsibilities of the involved participants.
This is the second article in our series investigating the basic meaning of all 11 Incoterms. (You can read here about our first Incoterm, FCA.) The Incoterm we’re discussing today is Delivered At Place (named place of destination), also known as DAP.
What Does the Delivered At Place (DAP) Trade Term Mean?
The Incoterm Delivered At Place means “the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination.” (International Chamber of Commerce)
When Can DAP Be Used?
DAP can be used for any mode of transport—air, courier, truck, rail, vessel or multi-modal shipments—or when there are multiple modes of transport. In Incoterms 2010, DAP replaced the terms DAF, DES and DDU.
Benefits and Considerations of DAP
- Under the Incoterms 2010 rules, the seller is responsible for all charges and risks in transit until the goods reach their agreed destination point. The buyer is then responsible for unloading the goods at the agreed delivery place. (Read more in our article, Variations in Using Incoterms 2010.)
- The seller bears all risks involved in bringing the goods to the named place and typically insures the shipment.
- Risk transfers from seller to buyer when the goods are available for unloading, so unloading is at the buyer’s risk. (See Incoterms Explained for more information.)
- The trade term should be named in the sales contract. For example, a U.S. exporter and their European customer might agree to, "Incoterms 2010 DAP Rotterdam, the Netherlands."
Learn More about Incoterms and DAP
There are myriad resources available to help you further understand the trade term DAP and all Incoterms. We have a robust archive of Incoterms-related articles on our International Trade Blog.
To get you started, we’ve chosen several of our most popular articles along with other industry resources:
- The Beginner's Introduction to Incoterms
- An Introduction to Incoterms—Part 2: Why Do Incoterms Matter?
- A Behind the Scenes Look at Incoterms
- Incoterms 2010 Freight and Associated Charges
- From EXW to DDP: Incoterms 2010 Plain and Simple
- Incoterms Lesson: The Danger of Using Ex Works for Your Exports
- Incoterms 2010 and the UCC: A Guide to International and Domestic Terms of Sale
- Incoterms 2010
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