DAP delivery conditions: Implementation process

Article overview

DAP delivery conditions stipulate that the seller is responsible for delivering the goods to the agreed destination, including shipping costs and risks during transportation. This condition facilitates the buyer by reducing the burden of organizing transportation and ensuring the goods are delivered to the right location. The following content will clarify the process of implementing DAP delivery conditions in practice.

Regulations DAP delivery conditions
Regulations DAP delivery conditions

What are DAP delivery conditions? The role of DAP in international trade

DAP delivery conditions are international trade regulations according to Incoterms 2020, establishing the seller’s responsibility for delivering goods at the designated location. This method applies to all forms of transportation and specifies costs and risks between parties during the goods transfer process. DAP terms require agreement on delivery location and related legal obligations.

In international trade transactions, DAP plays an important role for the following reasons:

  • Clearly identify the transfer point of responsibility and risk between buyer and seller;
  • Delineate in detail the costs each party must bear during the delivery process;
  • Serve as a legal basis to resolve disputes arising during the transaction process;
  • Create a legal framework for import and export activities between countries;
  • Ensure consistency in implementing international sales contracts.

When applying DAP conditions, both parties need to clearly agree on the specific delivery location. This helps determine exactly when risks and costs are transferred from seller to buyer. The delivery location can be a seaport, airport, train station or any other location agreed upon by both parties.

Responsibilities of the parties under DAP conditions

Seller’s responsibility

Obligations regarding goods and documents:

  • Provide goods and commercial invoices in accordance with the sales contract;
  • Prepare full documents to prove the conformity of goods;
  • Inform the buyer about the delivery and provide all necessary information;
  • Provide proof of regular delivery.

Transportation and insurance obligations:

  • Sign a transportation contract and pay freight to the designated location;
  • Bear all risks of loss or damage to the goods until delivery;
  • There is no obligation to sign an insurance contract;
  • Inform buyers about shipping schedules and expected delivery times.

Export obligations and costs:

  • Carry out export procedures and pay related costs;
  • Pay for costs of quality inspection, packaging, and marking of goods;
  • Pay loading and unloading costs at the place of departure and along the transportation route;
  • Pay for storage and storage fees before delivery.

Buyer’s responsibility

Obligations to pay and receive goods:

  • Pay for goods as agreed in the contract;
  • Receive goods when the seller delivers them at the designated location;
  • Bear all risks regarding the goods from the time of receipt;
  • Accept proof of delivery provided by the seller.

Import obligations and costs:

  • Carry out import procedures and pay import taxes;
  • Pay for mandatory inspection costs before sending goods;
  • Pay unloading costs at destination;
  • Bear the costs incurred after receiving the goods.

Support and notification obligations:

  • Provide necessary information for the seller to export;
  • Notify the seller of the time and location of receipt of goods;
  • Support sellers in providing required documents;
  • Coordinate with sellers to ensure a smooth delivery process.
Responsibilities of the parties when delivering DAP goods
Responsibilities of the parties when delivering DAP goods

Delivery process according to DAP conditions

The delivery process under DAP conditions is carried out through the following steps:

Step 1: Sign the contract

  • Agreement on DAP delivery conditions;
  • Clearly identify the delivery location;
  • Specific regulations on delivery time;
  • Unify payment methods.

Step 2: Prepare goods and documents

  • Pack goods according to shipping standards;
  • Prepare export documents;
  • Check the quality of goods;
  • Mark and label according to regulations.

Step 3: Carry out shipping

  • Sign a transportation contract;
  • Loading and unloading goods onto vehicles;
  • Track the shipping journey;
  • Inform buyers about progress.

Step 4: Delivery of goods

  • Notify exact delivery time;
  • Check the condition of goods;
  • Transfer related documents;
  • Confirm delivery.

Advantages and disadvantages of DAP delivery terms

Advantage:

  • Clearly define the responsibilities and obligations of the parties;
  • Applicable to all modes of transport;
  • Buyers’ rights are well protected;
  • Minimize risks in international transactions;
  • Convenient for international payments;
  • Good control of the transportation process;
  • Suitable for many different types of goods.

Limit:

  • High costs for sellers;
  • Shipping risks are borne by the seller;
  • Complicated delivery procedures;
  • Difficult to determine exact delivery location;
  • Unforeseen costs may arise;
  • Requires experience in logistics management;
  • Exchange rate risk when making international payments.
Consulting services on DAP implementation process
Consulting services on DAP implementation process

Consulting on international trade issues at Long Phan

Long Phan provides professional consulting services on:

Contract consulting:

  • Drafting and reviewing DAP contracts;
  • Negotiate commercial terms;
  • Consulting on payment conditions;
  • Support for dispute resolution.

Import and export consulting:

  • Guidance on customs procedures;
  • Consulting on taxes and import-export fees;
  • Support in preparing import and export documents;
  • Optimize the delivery process.

Logistics consulting:

  • Choose the appropriate mode of transport;
  • Optimize shipping costs;
  • Supply chain management;
  • Supervise the transportation process.

Long Phan commits to supporting customers in consulting and implementing international trade transactions under DAP delivery conditions. Our team of experts is ready to answer all questions and accompany you in the process of negotiating and signing contracts. Contact the hotline immediately 0906735386 for detailed advice on DAP delivery conditions.