What is DAP?
DAP or Delivered-at-Place is an international trade term used to describe a deal in which a seller agrees to pay all costs and suffer any potential losses of moving sold goods to a named location. Ultimately, the seller must bear all expenses for carriage and any terminal charges, up to the agreed destination point.
According to DAP Incoterms, when is risk transferred to the buyer from the seller?
Under DAP Incoterms, the seller has fulfilled his or her obligations when the goods are handed over to the buyer at the named place of destination. Under DAP terms, the risk is transferred from the seller to the buyer when the shipment reaches the destination mentioned in the contract of sale. The buyer is responsible only for unloading costs at the final destination.
Once the goods are ready for export from the country of origin, the seller must arrange proper packing and all necessary legal documents. The buyer must also deal with customs clearance in the importing country by providing import permits, proof of payment of all customs taxes and duties, and more.