An Incoterms® rule, applicable to any form or forms of transport (air, ocean, ground, or multimodal), under which the seller is responsible for delivery of the goods, ready for unloading, at the named place of destination (often the buyer’s place of business). The seller generally assumes all risks and pays all charges associated with shipment up to the named place of destination.
The buyer/consignee takes responsibility for costs and risks when the goods are placed at buyer’s disposal ready for unloading at the named place of destination and is responsible for any import clearance formalities. Because of this, the contract of sale should very clearly specify not just the named port/place of destination, but the actual precise point at or within the named port/place of destination where delivery will occur (i.e. "Delivered at place, Terminal XX, port of Erie, Pa).
In 2010, DAP essentially replaced the Incoterms® 2000 rule "Delivery Duty Unpaid (DDU)". You may still hear DDU used informally to refer to DAP agreements.
When an Incoterms® rule is included in a contract of sale, it creates legal obligations for the buyer and seller, which can have costly implications. Therefore, it is important that traders read and understand the precise wording of the Incoterms® rules carefully and choose the rule to include in their sale contract thoughtfully. For additional information and resources on the Incoterms® rules, and to purchase the full text of the Incoterms® 2020 rules, visit the ICC website.
Learn more about the eleven existing Incoterms® rules and what they mean for your shipping business.
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