We all know that there are many things to keep track of when you are dealing with international trade. Especially the International Commercial Terms seem to raise many questions from our customers. With the following quick guide we hope to explain how it works when you opt for Transporteca’s slightly modified shipping term: DAP including customs clearance.
Within global commerce, a number of international trading terms have been agreed upon, also known as the Incoterms. Most countries across the globe recognise these terms, which is to everyone’s advantage, as it means that if you have agreed on a specific trading term, you also know exactly who is responsible for paying for each part of the transport process.
In short, Incoterms help clarify exactly when the ownership, cost and risk of a product transfers from the seller to the buyer.
DAP – short for Delivered At Place – including customs clearance is an interpretation of the original DAP trading terms. For both, the ownership is transferred from the seller to the buyer at the address of the buyer at destination.
What sets DAP including customs clearance apart from the traditional DAP terms is that customs clearance at destination is included in the transport price Transporteca provides.
In practise, this means that when when you search for DAP including customs clearance on Transporteca, the price you see on the screen includes the complete transport from your address at origin to the customer’s address at destination, even including the import customs clearance in the destination country.
Quick guide to DAP including customs clearance
In this video Transporteca's Founder and CEO, Morten Laerkholm, explains our interpretation of the export trading term DAP: DAP including customs clearance, which is an available shipping option when you book transport on Transporteca.
So by selecting DAP including customs clearance, your customer does not need to arrange for the import customs clearance at destination, which would otherwise be the case when trading on regular DAP terms.
With that said, if there are any formalities required at destination from your customer, for example that they must be import registered, or that they must have a company registration number, we will still need to reach out to them to arrange those formalities.
If you want to know more about trading terms, check our our post on Intoterms. We are also available for any questions you might have on chat, email and phone.