What is the meaning of DAP in a shipping agreement in Export Import Industry?

 

DAP means Delivered at Place (name of the destination goods or services needs to be delivered).

In the Export Import industry, the seller or the exporter and the buyer or the importer agree to certain mutual terms and conditions. The seller or the exporter is responsible for the goods or services he/she is transporting from the place of origin to a mutually agreed on destination. It is the buyer or the importers responsibility to handle the customs clearance including paying all duties and formalities of the destination country. Hence, the place of delivering the goods or services has to be agreed upon by both the parties.

The term DAP (Delivered at Place) is valid for both Air and Sea transport.

List of Seller or Indian Exporter responsibilities:

The list of obligations and responsibilities that the seller or the exporter must bear includes warehouse services, loading at point of origin, obtaining export and other licenses, obtaining other official authorizations, export packing and packaging, origin port charges, origin forwarder fees, origin inland freight, export customs clearance, ocean/air freight, destination port charges, delivery cartage to final destination.

List of Buyer or Indian Importer responsibilities:

The responsibility shifts from the seller to the buyer after the goods or services are delivered to the final destination. The list includes import customs clearance, import duties and taxes.