x You need to understand the concept of what DAP conditions are when participating in
transporting goods ? x Do you want to know more detailed information about DAP in transportation and delivery?
x You don't know how to use DAP to limit problems and disputes?
With practical experience and agility in updating the latest information on Incoterms 2020 related to DAP conditions, Proship will help individual sellers and buyers clearly understand all the issues you are concerned about. Thereby, the seller and the buyer during the process of transporting and delivering goods know clearly what work they need to do, thereby minimizing any unnecessary disputes that arise, helping the package arrive. buyers' hands more quickly.
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What are DAP conditions?
What are DAP conditions ? DAP (Delivery at Place) terms - "Delivery at destination" means that the seller will transfer the goods and risks to the buyer when the goods are placed at the buyer's disposal, on the means of transport. already at the destination mentioned in the contract, ready for unloading. This is also a rule that can be used effectively for many different modes of transport.
The seller is responsible for all risks and costs of bringing the goods to the delivery location agreed upon in the contract. The seller and buyer should consider indicating the most accurate delivery point, as detailed as possible, because:
- This is both a place for transferring risks and a place for transferring costs between the seller and the buyer
- The seller must make a transportation contract to hire a carrier to bring the goods to the delivery location, so it is best that this location is clear and specific.
Learn details about DAP Incoterms 2020 in transporting goods
After understanding the concept of DAP conditions, you must also understand that DAP in transportation also stipulates the obligations and roles of related parties, specifically:
Costs must be borne by the parties
Fees to be borne by the seller:
- Cost of export procedures
- All costs related to transporting the goods until delivery except costs borne by the seller such as import clearance costs
- Unloading costs if it is included in the contract of carriage
- The costs of delivering documents to the buyer.
Fees to be borne by the buyer:
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- Cost of import procedures: import tax, import license application, other costs if problems related to the license arise
- All costs related to the goods from the time of receipt
- Unloading costs if this cost is not included in the transportation contract signed by the seller
- Unloading costs if not included in the transport contract signed by the seller.
Seller's obligations:
- Sign a transportation contract to bring the goods to the specified destination
- Packing, marking and counting goods
- Carry out procedures for exporting goods
- Delivery accompanied by commercial invoice and other documents specified in the contract at the specified location and time
- Bear all risks and costs until the goods are delivered.
Buyer's obligations:
- Pay for goods according to the commercial invoice of the shipment
- Notify the seller about the time and location of readiness to receive goods
- Carry out import procedures for shipments
- Receive goods at the location and time as contracted
- Take all responsibility for the goods from receipt
- The buyer does not need to purchase insurance, but if the seller requires information necessary to purchase insurance, the buyer must bear the risk and expense of providing this information to the seller.
Cargo insurance in DAP Incoterms 2020
Neither party is obligated to purchase cargo insurance under DAP Incoterms 2020 conditions.
About the delivery of goods
Under the DAP Incoterms 2020 conditions, delivery of goods is considered complete when the seller delivers the goods to the named delivery point at the agreed time, ready for unloading from the means of transport. The buyer will handle unloading and is responsible from there.
How to effectively apply DAP Incoterms 2020 conditions according to regulations
In Incoterms 2020, DAP can be applied to any mode of transport. DAP in transportation is considered the ideal delivery condition for multimodal transportation. The seller does not need to carry out unloading (unless otherwise specified).
However, if the seller's transportation contract includes unloading the goods at the place of delivery, the seller may not be reimbursed by the buyer for that cost, so this must be clearly clarified in the contract to avoid unnecessary disputes. worth having later.
Incoterms 2020 DAP requires the seller to clear customs, carry out procedures and pay taxes and fees for export, but the seller does not need to fulfill this obligation at the import end. Therefore, if the buyer does not organize import customs clearance, the goods will be held at the port or inland terminal in the importing country.
Who bears the risk of any loss that may occur while the goods are held at port in the importing country? That's the buyer! To avoid this "scenario" from happening, the two sides should reach an agreement so that the seller clears import and transit customs as well as procedures and related costs at the import end. At this time, the two sides should use DDP instead. position.
Based on the knowledge and detailed information about DAP conditions, the seller and buyer in transporting goods need to consult to determine for sure what their main obligations are and what needs to be done. Hopefully through this, readers will also understand the concept of what DAP conditions are and how important their role is . Besides, if you need to hire a safe and economical sea container shipping service, quickly contact Proship via hotline 0909 344 247 for further support.
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