x Do you need to transfer goods under DAP terms?
x You don't understand what DAP is?
What responsibilities and obligations do relevant entities have? x Do you want to know exactly how to apply DAP conditions effectively and according to regulations?
The issues you are interested in and asked above related to what DAP conditions are are by Proship , thereby helping buyers and sellers to easily clearly define their roles. in the plan to deliver the goods to the exact location agreed in advance. Not only that, Proship also helps you learn more about how to apply the regulations in Incoterm 2010 on DAP effectively and properly to minimize any unnecessary obstacles and problems that arise.
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In Incoterm 2010, what is the concept of DAP?
What are DAP conditions?
Incoterms 2010 defines DAP (English abbreviation: Delivered at Place, meaning Delivered at destination) – the seller delivers when the goods are placed at the buyer's discretion on the arriving means of transport ready for unloading. at the destination location. Under DAP terms, risk passes from the seller to the buyer from the destination mentioned in the delivery contract.
Once the goods are ready for shipping, packaging needs to be done by the seller at his own expense so that the goods reach their final destination safely and promptly. All necessary legal formalities in the exporting country are completed by the seller at his own expense and risk to clear the goods for export.
And once the goods have arrived in the destination country, the buyer must complete customs clearance in the importing country. For example: Import license, documents required by customs, etc. including all customs duties and taxes. Under DAP terms, all shipping costs with any terminal charges are paid by the seller to the agreed destination. Of course, under DAP terms, the necessary loading and unloading costs at the final destination must be borne by the buyer.
Roles and obligations of the seller & buyer in DAP Incoterm 2010 conditions
Based on the regulations in Incoterm 2010, the seller and the buyer have the following responsibilities and obligations:
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A. OBLIGATIONS OF THE SELLER LATEST UPDATE PICTURES OF CONTAINER PROSHIP LOGISTICS TRACTOR 
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B. BUYER'S OBLIGATIONS |
| A1. General obligations of the seller | B1. General obligations of the buyer |
| The seller must provide the goods and the commercial invoice in accordance with the contract of sale and provide all appropriate documents that the contract may require. Any documents referred to in A1-A10 are can be documents or equivalent electronic messages if agreed by the parties or prescribed by custom. | The buyer must pay for the goods as stipulated in the contract of sale. Any documents referred to in sections B1 – B10 may be equivalent electronic documents or messages if agreed or collected by the parties. regulations. |
| A2. Licenses, security checks and other procedures | B2. Licensing, security checks and other procedures |
| Where applicable, the seller must obtain, at his own risk and expense, any export license or other official authorization and must carry out all customs formalities necessary for the export of the goods and their transport through water before delivery. | If so required, the buyer must, at his own risk and expense, obtain an import license or other official permit and carry out customs procedures to import the goods. |
| A3. Transport and insurance contracts | B3. Transport and insurance contracts |
| a) Contract of carriage The seller must, at his own expense, contract for the carriage of the goods to the named destination or to an agreed point, if any, at the named destination. If a specific destination cannot be agreed upon or cannot be decided according to custom, the seller may choose a location at the destination that best suits his purpose.
b) Insurance contract The seller has no obligation to the buyer to enter into an insurance contract. However, if the buyer requests and bears the risks and costs, if any, the seller must provide the buyer with the necessary information to purchase insurance. |
a) Contract of carriage The buyer has no obligation to the seller to enter into a contract of carriage.
b) Insurance contract The buyer has no obligation to the seller to sign an insurance contract. However. If requested by the seller, the buyer must provide the seller with the necessary information to purchase insurance. |
| A4. Delivery | B4. Receive |
| The seller must deliver by placing the goods at the disposal of the buyer on the arriving means of transport and ready for unloading at the agreed point, if any, at the place of destination on the date or within the delivery period. it has come to an agreement. | The buyer must take delivery of the goods when they are delivered in accordance with section A4. |
| A5. Transfer risk | B5. Risky trip |
| The seller must bear all risks of loss or damage to the goods until they have been delivered in accordance with A4 except in the event of loss or damage in the circumstances specified in B5. | The buyer must bear all risks of loss or damage to the goods from the time they have been delivered in accordance with A4. Ifa) the buyer fails to fulfill his obligations under B2 then the buyer must bear all risks of loss or damage to the goods arising from the failure, or
b) the buyer fails to give notice in accordance with B7, the buyer bears all risks of loss of or damage to the goods from the agreed date or the expiry of the agreed period for delivery, provided that Goods have been clearly identified as contract goods. |
| A6. Cost division | B6. Cost division |
| The seller must pay: a) In addition to the costs arising from section A3a), all costs relating to the goods until they have been delivered in accordance with section A4; except for the costs paid by the buyer under section B6;
b) The cost of handling the goods at the destination must be borne by the seller according to the transport contract; and c) Customs formalities, if any, necessary for export as well as all taxes, fees and other charges payable upon export and the costs of transportation through any country prior to shipment. goods according to section A4. |
The buyer must pay a) All costs relating to the goods from the time they have been delivered in accordance with A4;
b) All unloading costs necessary to take delivery of the goods from the means of transport at the named place of destination, unless these costs are for the seller's account under the contract of carriage; c) Costs incurred if the buyer fails to fulfill his obligations under section B2 or fails to notify under section B7, provided that the goods have been clearly identified as contract goods; and d) If applicable, all customs clearance costs as well as taxes, fees and other costs must be paid when importing the goods. |
| A7. Notice to buyers | B7. Notify the seller |
| The seller must notify the buyer of the necessary information so that the buyer can apply the usual measures necessary to receive the goods. | The buyer must, having determined the time within the agreed period and/or the place of taking back the goods to the named destination, give the seller adequate notice thereof. |
| A8. Delivery documents | B8. Proof of delivery |
| The seller must bear the costs of providing the buyer with documents so that the buyer can receive the goods according to section A4/B4. | The buyer must accept the delivery documents provided by the seller in accordance with A8. |
| A9. Check – Packaging, packaging – Marking | B9. Check the goods |
| The seller must pay the costs of any checking (such as checking quality, weighing, measuring, counting) necessary to deliver the goods in accordance with A4, including the costs of any inspection before ship the goods as required by the competent authorities in the country of export. The seller must, at his own expense, pack the goods, unless it is customary for the particular industry for the goods to be shipped without pack. The seller may package the goods in accordance with the mode of transport, unless the buyer notifies the seller of specific packaging requirements before the contract is concluded. Packaging must be appropriately marked. | The buyer must pay the costs of mandatory pre-shipment inspections, except for inspections required by the competent authorities in the exporting country. |
| A10. Information support and related costs | B10. Support information and related costs |
| If so stipulated, the seller, at the buyer's request, at the buyer's risk and expense, must assist the buyer in obtaining documents and information including security information that the buyer needs to submit. export and/or transport to final destination. The seller must reimburse the buyer for all costs and charges incurred by the buyer in obtaining or assisting in obtaining documents and information. according to section B10. | The buyer must notify the seller in a timely manner of any security information requirements so that the seller can comply with A10. The buyer must reimburse the seller for all costs and charges incurred by the seller in obtaining or assisting in obtaining documents and communications in accordance with section A10. If so provided, at the seller's request, At the seller's risk and expense, the buyer must assist the seller in a timely manner to obtain or assist in obtaining documents and information including security information required by the seller for the purpose of transport and export. goods and transport to other countries. |
Notes when using DAP terms to transport goods
When using DAP terms, individual sellers and buyers need to be careful
First, let's analyze more about DAP (buyer warehouse) conditions. This is an agreement in which both parties want the seller to do everything to deliver the goods to the buyer's warehouse, except for two things: the seller does not carry out import customs procedures (ie does not pay import tax) and does not carry out import customs procedures. Loading and unloading of goods from the vehicle at the buyer's warehouse.
And when the goods arrive at the destination port or airport, the buyer must complete the necessary import customs procedures before the seller continues to transport the goods to the buyer's warehouse. If the buyer does not complete import customs clearance, problems will arise, causing the seller to have to pay storage fees or parking fees, etc. The buyer can even complain against the seller for not delivering the goods. warehouse on time as agreed in advance.
One thing that is clear here is that it is the buyer's fault for not clearing import customs but forcing the seller to pay an unnecessary fine. Thus, to avoid this conflict from arising, usually the two parties should choose the solution of "Let the seller do everything - including import customs clearance, so that the seller can be proactive in everything" . The buyer's job is to just wait for the goods to arrive at their factory and unload them. At that time, both parties will choose DDP terms and the seller will do everything to deliver the goods to the buyer's warehouse. Therefore, both the seller and the buyer need to pay close attention to come up with the most effective solution.
Thus, when carrying out the goods transfer process, sellers and buyers who are particularly interested in what their specific roles are can refer to them to clearly define them. What DAP conditions are and how to use it have been conveyed by Proship. You should rely on the above experience to successfully fulfill all your obligations. And for further support and advice on freight services by sea, rail, road, air, etc. for large volumes at good, competitive prices, please contact hotline 0909 344 247
Shipping contact hotline:
Ms Tien: 0909 986 247
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