Delivered At Place Part II – Seller’s Obligations

Delivered at Place or DAP (named place of destination) Incoterms®2010 is the sixth of eleven Incoterms (it is always plural) for the class “Rules for any Mode or Modes of Transport”, which means that it can be used irrespective of the selected mode of transport, and can even be used for more than one mode of transport. The ICC’s Incoterms ®2010 identifies ten obligations that the seller may need to fulfil in terms of Ex Works: (1) general obligations of the seller; (2) licences, authorisations, security clearances and other formalities; (3) contract of carriage and insurance; (4) delivery; (5) transfer of risks; (6) allocation of costs; (7) notices to the buyer; (8) delivery document; (9) checking – packaging – marking; and (10) assistance with information and related costs. The general obligations of the seller are essentially the provision of goods and the commercial invoice in conformity with the contract, which implies that the documents stipulated in the contract of sale must be provided. In respect of the licences, authorisations, security clearances and formalities the seller must obtain these at his own risk and expense, and also needs to account for all export (customs) formalities. The seller must contract or procure the contract of carriage of the goods to the named place of destination or to the agreed point. If such point is not agreed, the seller may select it. With respect to the contract of insurance, the seller has no obligation to contract for this. As for the delivery to be effected, the seller has to deliver the goods by placing them at the disposal of the buyer on the arriving means of transport ready for unloading at the agreed point. Once the goods have been delivered then all risks are transferred from the seller to the buyer. As for the allocation of costs, the seller must pay all costs until the goods have been delivered – effectively all costs in accordance with the contract of carriage i.e. any charges for unloading etc. The seller must, where applicable, pay the cost for customs formalities necessary for export as well as all duties, taxes, and charges payable on export. The seller must give the buyer notice to enable the buyer to take delivery of the goods. As for delivery document, the seller must, at his expense, provide the buyer with a document enabling the buyer to take delivery of the goods. With respect to the checking – packaging – marking, the seller must pay those costs that are necessary for the delivery of the goods. The seller is also required to package the goods at his/her own expense, unless these types of goods are sold unpackaged. As for the assistance with information (including security-related information) and related costs, the buyer could request this from the seller, but it would be for the buyer’s account.