What is DAP?
DAP stands for Delivered-at-place and essentially means that a seller has agreed to pay all the costs, including transportation costs, and is ready to incur any probable losses of moving cargo from origin to destination. The buyer’s responsibilities include carrying out all import formalities and paying for unloading, import duties, and clearance or local taxes after the shipment arrives at the destination port.
The Incoterm Delivered-at-Place applies to any mode of transportation or a combination of different modes of transportation. DAP is accompanied by the name of the point where the financial responsibilities transfer to the buyer, which is commonly the port of destination, e.g., ‘Delivered-at-place, Port of Jeddah.’
DAP was introduced very recently in the International Chamber of Commerce’s eighth publication of Incoterms in 2010. To understand it clearly, we can outline the responsibilities of both the seller and the buyer.