DAP: Delivered at Place

DAP Delivered at Place: The Doorstep Delivery

Introduced in 2010, the term DAP Delivered at Place reflects the rise of e-commerce and the demand for convenience in modern trade. Under the term, the seller delivers the goods, ready for unloading, at the named place. Imagine ordering a package online and finding it delivered right to your doorstep. That’s DAP. The seller delivers the goods, ready for unloading, at the named place. Introduced in 2010, DAP reflects the rise of e-commerce and the demand for convenience in modern trade.

Seller’s Obligations:

Deliver the goods, ready for unloading, at the named place of destination.

Pay for transport to the named place of destination.

Clear the goods for export.

Buyer’s Obligations:

Unload the goods.

Clear the goods for import, paying any customs duties.

DAP Delivered at Place Costs and Risks for buyer and seller

DAP instance:

The seller: An electrical standing desk manufacturer from China

The buyer: An online office furniture distributor in New York

Shipping incoterm: DAP for one 20″ FCL container of electrical standing desks

Under DAP, the seller delivers the goods when they are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. The seller bears all risks involved in bringing the goods to the named place.

Here’s how the costs would break down:

Product Cost: Agreed price for the standing desks is $70,000.
Local Logistics: Costs for delivering goods from the factory to the port in China (seller’s responsibility), let’s say $2,000.
Export Customs Clearance: Costs for the goods to be cleared for export by Chinese customs (seller’s responsibility), let’s say $1,000.
Freight Charges: Cost of shipping goods across the ocean to the destination port in New York, USA (seller’s responsibility under DAP), let’s say $5,000.
Import Customs Clearance: Duties and taxes for goods to be cleared by US customs (buyer’s responsibility under DAP), let’s say $7,000.
Local Logistics in the USA: Costs for delivering goods from the port to the buyer’s warehouse in New York (seller’s responsibility under DAP), let’s say $2,000.

So, the total cost to the seller (DAP price) is $70,000 (Product Cost) + $2,000 (Local Logistics) + $1,000 (Export Customs Clearance) + $5,000 (Freight Charges) + $2,000 (Local Logistics in the USA) = $80,000.

Shipping:

Under DAP, the seller has the obligation to arrange and pay for the carriage of the goods to the agreed destination, and the risk transfers from the seller to the buyer as soon as the goods are ready for unloading at the named place. The buyer is responsible for import clearance and any applicable local taxes or import duties.

Therefore, the total cost to the buyer is the DAP price ($80,000) plus the costs of Import Customs Clearance ($7,000). That is, $80,000 + $7,000 = $87,000. The buyer bears the risk and any additional costs occurring after the goods are ready for unloading at the named place of destination.

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