Keeping track of the different Incoterms can be a bit overwhelming. With this quick guide, we will explain what it means to trade on DAP shipping terms.
First of all, it is relevant to mention that within international commerce, a number of trading terms have been agreed upon and are recognized by most countries worldwide. These are also called Incoterms (short for International Commercial Terms).
More specifically, Incoterms determines costs, risks and responsibilities involved in any trade between a seller and a buyer. And as these are a recognised standard internationally, it means that we always know exactly who is responsible for what, and who needs to pay for each step of the transport process.
DAP or ‘Delivered at Place’ is an international trading term defining exactly when the ownership, risk and cost of a product is transferred from the seller to the buyer. For DAP specifically ownership is transferred to the buyer at the buyer’s address at destination.
DAP quick guide
In this video Transporteca's Founder and CEO, Morten Laerkholm, explains the basics of trading on DAP shipping terms.
In practice, this means that when you select DAP terms on Transporteca the price you see on the screen includes the transport from your address at origin to your buyer’s address at destination – except for customs clearance at destination. Therefore, the only responsibility a buyer has when trading on DAP shipping terms, is to arrange with a customs agent to take care of the import customs clearance.
For information on trading on CFR terms, see our CFR quick guide. To learn more about trading terms in general check our post on Incoterms, or contact us on chat, email or phone if you have any further questions.