Learning more about Incoterms®2010

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.
According to the
International Chamber of
Commerce (ICC), DAP means
that “the seller delivers when
the goods 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”.
As with the earlier
Incoterms it is advisable
for the contracting parties
to clearly specify the point
within the agreed place of
destination, since the risks to
that point are for the seller’s
account.
Accounting for the seller’s
risk, the seller would be
well advised to procure a
contract of carriage, which
is in accordance with the
specifications of the contract
of sale.
The seller is not entitled
to recover the costs that he
has incurred from the buyer
under the contract of carriage
with respect to the unloading
of the goods at the place of
destination, unless mutually
agreed with the buyer.
The final ICC “Guidance
Note” reminds us that under
DAP the seller must clear
the goods for export, where
applicable. The seller has no
obligation with respect to the
importation and its associate
actions.
In instances where it
is required that the seller
clear the goods for import
and undertake any import
formalities, then the Delivered
Duty Paid (DDP) term, the
seventh Incoterms, should be
used.
In next week’s issue we
will define Delivered at
Place (DAP) – The Seller’s
Obligations.