There’s no doubt about the fact that the rules surrounding international haulage are complex and can be very confusing. The Incoterms (International Commercial Terms) alone can make your head spin, but the good news is that Waller Transport is here to help.

Our extensive experience in pallet delivery gives us the knowledge required to guide others – something our customs services team helps our clients with every day! Here we look at one specific incoterm – DAP (Delivery at Place) and what it means for international shipments.

 

International Commercial Terms - Delivery at Place - Waller Transport Services

What Is Delivered at Place (DAP)?

Delivered at Place or DAP is an international trade term that describes an arrangement by which the seller pays all costs and risks potential losses involved in moving goods to a specific location. So, what does it mean in reality?

Well, should the delivery location be at a free trade zone or inland clearance depot, then DAP rules state that the goods are able to be delivered uncleared.

However, if the goods need to go through a clearance point prior to delivery, this complicates matters. As such, goods clearance may call for a close liaison between the buyer and the carrier, as when things don’t go to plan, delays and demurrage charge disputes.

What charges are included in DAP?

According to DAP rules, the buyer must pay for customs clearance, unloading fees and taxes.

Does DAP Include Duty?

Actually, yes. When the goods in question reach a specified destination, the buyer takes on both the responsibility and risk of unloading/clearing them for import. In a DAP shipping agreement, the buyer also must pay for import duties and any other local taxes or clearance.

 

International haulage - Delivery at Place - Waller Transport Services

What is DAT, and How is it Different to DAP & DDP?

DDP is another incoterm that stands for Delivered Duty Paid. It has a lot of similarities to DAP, however, it’s a shipping term that represents the maximum amount of responsibility for the seller, both in risk assumption and costs.

Like DAP, a seller in a DDP agreement will assume all the costs and risk involved in delivering the goods to specific location in the importation country. That said, in DDP, it’s the seller who also has to meet taxes and costs of import clearance.

DAT is a 3rd and relatively new incoterm that’s used to denote different goods shipment methods. Standing for ‘Delivered at Terminal’, responsibility for goods being imported is with the seller up until they’re unloaded at the terminal.

The difference is that it’s the buyer, who is then responsible for the final part of the journey and unloading of goods.

When Should the DDP Shipping Term be Used Instead of DAP?

When customs exist between the origin and destination countries, you’ll need to use DDP rather than DAP. However, should no customs be separating the countries of origin/destination e.g. between EU countries, there’s no need for import clearance, and as such, DAP is the suitable incoterm.

Also, if the seller is not able to carry out import clearance, DDP must not be used. Instead, DAP should be used.

Here to Demystify Customs Clearance Matters

These incoterms represent just a small part of the customs clearance process, so it’s understandable if you’re having trouble making sense of things. The good news is that the Waller Transport customs clearance team is ready to assist you and you can find lots of useful info on our Customs Clearance page on our website.

If you’d like to know more about this or anything else, visit our website today www.wallertransportservices.co.uk where you’ll find everything you could possibly need. Alternatively, you can call us on 01473 254717 to speak to us directly about your haulage needs

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