DAP shipping term (Delivered at Place of Destination): Delivery is completed by the seller when the goods are placed at the buyer’s disposal at the named place of destination on the arriving means of transportation ready to be unloaded.
DAP provisions on the obligations of buyers and sellers
Transfer of risk
The seller bears the risk before the goods are handed over to the buyer’s control, and the buyer bears the risk after the goods are handed over to his control.
Customs clearance formalities
- The seller, at its own risk and expense, to obtain a license to leave Japan or other official approval of the documents, and for the export of goods as well as the delivery of goods before the customs clearance of third-country cross-border transportation of all the customs formalities required.
- The buyer obtains the export license or other official approval documents at its own risk and expense, and handles all the related formalities required for the import of the goods.
Contract of carriage and insurance
- The seller is responsible for entering into a contract of carriage to deliver the goods to a specific place of delivery at the contracted destination, if the specific place of delivery is not specified. The seller may choose a suitable place of delivery within the specified place of destination.
- The seller has no obligation to the buyer to conclude a contract of insurance, but at the buyer’s request and at its risk and expense, the seller must provide the buyer with the information it needs for insurance.
If you don’t want to just read these text interpretations, you can click on the video below to help you understand more quickly about DAP shipping term：
The difference between DAP shipping term/DDP shipping
The delivery place is different
DAP shipping term destination delivery, will arrive on the means of transportation ready to unload the goods at the disposal of the buyer, that is, belongs to the seller delivery.
DDP , the exporter in the import and export of the destination specified by both parties for the completion of the import customs clearance procedures, and then hand over the goods to the importer.
Different risk parties
DAP shipping term is that the seller bears all the risks of transportation of goods to the designated place, while DDP is that the buyer bears all the risks of transportation of goods to the designated place.
Differences in payment
DAP shipping term is the goods arrive at the designated destination to the buyer before the disposal of all costs and expenses.
DDP is the goods arrived at the designated destination in the delivery of the means of transportation, taxed and handed over to the buyer before the disposal of all costs and expenses.
Does DAP shipping term include customs duty and what are the costs of DAP at the buyer’s expense?
DAP is a transaction where the seller’s offer includes delivery of the goods to the customer’s specified location, but does not cover customs clearance and duties.
DAP and Export Customs Clearance
Seller’s obligations
In DAP delivery method, the seller not only bears the transportation risk, but also needs to assist the buyer to complete the import customs clearance and other procedures. The seller needs to provide the buyer with the necessary documents for customs clearance of the goods, such as commercial invoice, bill of lading, packing list, import license, inspection and quarantine certificate.
Obligations of the buyer
The buyer needs to handle the relevant import customs clearance procedures in time after the arrival of the goods. The buyer needs to submit the declaration of imported goods to the Customs, pay the corresponding import duty and carry out other necessary procedures.
Risks for both partners
As the seller has already delivered the goods to the destination in the DAP shipping term method, non-compliance may occur during the customs clearance process. For example, the goods are detained by customs, overdue detention and other problems. Therefore, both cooperating parties need to pay high attention to the risks in the customs clearance operation and work out solutions in advance.
Xiongda logistics specialize in freight from China to USA, and can provide FCL and LCL shipping to USA,air cargo to USA.
We cooperate with MEARSK, MATSON, ZIM, EVERGREEN, MSC, COSCO, CMA, YML and other companies and got fair and transparent prices.
