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Incoterms: Delivered at Place

Posted in Incoterms - 8 Oct 2018, 9:48 AM

What is the similar thing between Delivered at Terminal or DAT with delivered at place or DAP? With DAP, the seller still delivers the goods from the first spot to the next or final, specified destination. However, the goods are at the buyer’s disposal once they arrive at the specified destination.

DAP in Details:

In short, all the risks of delivering the goods safely to the named or specified place belong to the seller. Another similar point between delivered at place or DAP with Delivered at Terminal or DAT is when the goods need to be placed at a terminal first before they are transported to the actual destination.

Just like with Delivered at Terminal or DAT, if the journey to transport the goods is that long, this means more than one mode of transportation are used. For example: the goods have to be transferred from one place by inland water until the boat reaches the port or terminal. From there, the goods are unloaded and moved into the second transportation, which is a ship that will take them to another island as the actual destination.

The specified place or destination should also be mutually agreed by all parties involved (the seller and the buyer.)

What makes DAP different is when it comes to the seller incurring the cost that is under the agreed carriage contract related to unloading goods at the specified destination or place. In this case, this matter should be discussed further between the seller and the buyer. The seller can either be responsible for recovering the costs from the buyer or not. In some cases, the seller and the buyer may split the costs fairly.

Seller’s obligations when it comes to using Delivered at Place or DAP policy:

Just like with Delivered to Terminal or DAT, the seller also has to goods for exports as long as the situation makes it applicable. The import-related issues, from clearing the goods to payment and other formalities, are the buyer’s responsibilities.

The seller’s other responsibilities include:

  1. Supplying the commercial invoice and documentation regarding the goods. Of course, this also means that they are fully in charge of the goods as long as it is still in their part of the
  2. Dealing with the export packaging, licenses, marking, and customs formalities.
  3. Ensuring that the goods are still intact when being transported to the terminal before they are later sent to the actual destination.
  4. Making sure that the pre-carriage and delivery go well.
  5. Loading the goods and ensuring the arrival and the condition of the main carriage.
  6. Be ready with proof of delivery.

Buyer’s obligations when it comes to using Delivered at Place or DAP policy:

These are the buyer’s list of obligations:

  1. As previously mentioned, dealing with import-related formalities and duties.
  2. Unloading the goods once the transportation arrives at the specified location or destination.
  3. Preparing the cost of the pre-shipment inspection.

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