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  • DAP - Delivery at the destination

DAP INCOTERMS - Delivery at the destination

This term can be used regardless of the chosen mode of transport, as well as when using more than one mode of transport.
DAP-Incoterms-2010-VINCULUM-Customs clearance Vladivostok-GC-IMPORT40 Factory or warehouse of the manufacturer or seller Delivery from the factory or warehouse to the departure terminal Placement of goods at the cargo terminal Placement of goods on board the vessel State border Sea transportation to the port of discharge Placement in a temporary storage warehouse at the port of arrival (unloading) Delivery of goods ready for unloading from the vehicle Cargo recipient's warehouse The area of expenses and responsibility of the seller whenDAP The area of expenses and responsibility of the buyer at DAP The moment of transition of risks at DAP !

Delivered at Place means that the seller delivers whenproductprovided at the disposal of 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 determine the point at the agreed destination most accurately, since the risks up to this point are borne by the seller. It is recommended that the seller provide contracts of carriage that accurately reflect this choice. If the seller under his contract of carriage bears the costs of unloading at the agreed destination, the seller has no right to demand from the buyer compensation for such costs, 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 perform customs formalities for importation, pay import duties or perform other customs formalities upon importation.

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

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

Find out what needs to be considered and taken into account when choosing a DAP. Close the list of actions with DAP
  • to clarify in detail the parameters and characteristics of cargo packages (including labeling), this is necessary for subsequent customs clearance of goods;
  • clearly coordinate with the seller and define in the contract the place of delivery of the goods;
  • to agree with the insurance company the terms of insurance, if necessary;
  • obtain permits if necessary;
  • pay customs fees for the import of 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 of DAP

A.1.The seller is obliged, in accordance with the contract of sale, to provide the buyer with the goods, a commercial invoice-invoice, 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 this is agreed by the parties or is customary.
V.1.The buyer is obliged to pay the price of the goods, as stipulated in the contract of sale.
Any document referred to in paragraphs B1-B10 may be in the form of an equivalent electronic record or other procedure, if this is agreed by the parties or is customary.

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

A.2.If necessary, the seller is obliged, at his own expense and at his own risk, to obtain an export license or other official permit and to perform all customs formalities necessary for the export of goods and their transportation through any country.
B.2.If necessary, the buyer is obliged to obtain, at his own expense and at his own risk, an import license or other official permit and perform all customs formalities necessary for the import of goods and their transportation through any country.

3.Contracts of carriage and insurance under DAP conditions

A.3.a) Contract of carriage
The seller is obliged, at his own expense, to conclude a contract for the carriage of the goods to the named destination or to an agreed point, if there is one at the named destination. If a certain point is not agreed upon or cannot be determined based on practice, the seller can choose the most suitable point for his purpose at the named destination.
b) Insurance contract
The seller has no obligation to the buyer to conclude an insurance contract. However, the seller is obliged to provide the buyer, at his request, at his risk and at his expense (if there are expenses), the information necessary for the buyer to obtain insurance.
B.3.a) Contract of carriage
The buyer has no obligation to the seller to conclude a contract of carriage.
b) Insurance contract
The buyer has no obligation to the seller to conclude an insurance contract. However, the buyer is obliged to provide the seller, at his request, with the information necessary for the conclusion of the insurance contract.

4.Delivery and acceptance of goods under DAP conditions

A.4.The seller is obliged to deliver the goods by placing them at the disposal of the buyer on the arriving vehicle, ready for unloading, at the agreed point, if any, at the named destination on the agreed date or period.
V.4.The buyer is obliged to accept delivery of the goods when it is carried out in accordance with paragraph A4.

5. Transfer of risks under DAP conditions

A.5.The seller bears all risks of loss or damage to the goods until the moment of its delivery in accordance with paragraph A4, except for the risks of loss or damage in the circumstances specified in paragraph B5.
V.5.The buyer bears all risks of loss or damage to the goods from the moment of its delivery in accordance with paragraph A4.
If:
a) the buyer does not fulfill his obligations in accordance with paragraph B2, he bears all the associated risks of loss or damage to the goods; or
b) the buyer does not fulfill his obligation to provide notice in accordance with paragraph B7, he bears all risks of loss or damage to the goods, starting from the agreed date or from the date when the agreed delivery period expired,
provided that the goods have been explicitly individualized as the goods that are the subject of the contract.

6.Cost allocation under DAP conditions

A.6.The seller is obliged to pay:
  • in addition to the expenses provided for in paragraph A3 (a), all expenses related to the goods up to the time of their 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 that relate to the seller under the contract of carriage;
  • if necessary, the costs associated with the performance of customs formalities levied upon export, payment of all duties, taxes and other charges levied upon the export of goods, as well as transportation costs through any country prior to delivery, as provided in paragraph A4.
V.6.The buyer is obliged to pay:
  • all expenses related to the product from the moment of its delivery, as provided in paragraph A4;
  • all unloading costs necessary to accept the goods from the arriving vehicle at the named destination, if such costs are not borne by the seller under the contract of carriage;
  • any additional costs incurred by the seller as a result of the buyer's failure to fulfill its obligations in accordance with paragraph B2 or failure to provide notice in accordance with paragraph B7, provided that the goods were explicitly individualized as goods that are the subject of the contract;
  • if necessary, the costs of customs formalities, as well as the payment of taxes, duties and other fees paid upon importation of goods.

7.Notification to the buyer and seller under DAP conditions

A.7.The seller is obliged to give the buyer a proper notice allowing the buyer to take the measures normally necessary to enable him to accept the goods.
V.7.Since the buyer is granted the right to determine the date within the agreed period and/or the point of acceptance of delivery at the named destination, he is obliged to give the seller proper notice of this.

8.Documentary proof of delivery under DAP conditions

A.8.The seller is obliged, at his own expense, to provide the buyer with a document allowing the buyer to accept delivery of the goods, as provided in paragraphs A4/ B4.
V.8.The buyer is obliged to accept the delivery document issued in accordance with paragraph A8.

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

A.9.The seller is obliged to bear all the costs associated with the inspection of the goods (quality control, measurement, weighing, counting) necessary for the delivery of the goods in accordance with paragraph A4, as well as the costs of inspecting the goods before shipment, which is prescribed by the authorities of the country of export.
The seller is obliged to ensure the packaging of the goods at his own expense, except in cases when it is usually customary in this branch of trade to ship the goods specified in the contract without packaging. The seller may pack the goods in such a way as is necessary for their transportation, unless the buyer notifies the seller of the specific packaging requirements prior to the conclusion of the contract.Markingthe packaged goods must be carried out properly.
V.9.The buyer is obliged to bear the costs of mandatory inspection of the goods before shipment, except in cases when such inspection is carried out by the order of the authorities of the country of export.

10. Assistance in obtaining information and related expenses under DAP conditions

A.10.If necessary, the seller is obliged to provide the buyer in a timely manner or assist him in obtaining, at the buyer's request, at his risk and at his expense, documents and information, including security information, which the buyer may need to import the goods and/ or transport them to the final destination.
The seller is obliged to reimburse the buyer for all costs and fees incurred by the buyer when receiving or providing assistance in obtaining documents and information, as provided in paragraph B10.
Q.10.The buyer is obliged to inform the seller in a timely manner about the requirements for security information so that the seller can act in accordance with paragraph A10.
The buyer is obliged to reimburse the seller for the costs and fees incurred by him for providing or assisting in obtaining documents and information, as provided for in paragraph A10.
If necessary, the buyer is obliged to provide the seller in a timely manner or assist the seller in obtaining, at the seller's request, at his risk and at his expense, documents and information, including security information, which the seller may need for transportation, export of goods and for its transportation through any country.
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