What does DAP Incoterms mean?
DAP Incoterms is an international delivery term that defines who is responsible for the delivery of goods during transport. Here you will find a short guide to what DAP Incoterms mean, how DAP differs from the similar DDP and why the term is important to know for you as a business.
DAP Incoterms – delivered at place
DAP is an abbreviation for "Delivered at Place". This International Commercial Terms states that the seller - i.e., the consignor - is responsible for the risks and costs relating to a product, until the transport arrives at the specified destination.
A company shipping goods to customers with DAP Incoterms as the agreed delivery clause, is responsible for the products throughout the transport. Ownership and responsibility are transferred to the buyer when the goods are to be unloaded at the final destination.
New guidelines in Incoterms 2020
The DAP clause was first introduced in Incoterms in 2010, when it replaced the previous DDU, DAF, DES and DEQ clauses.
Since 2019, there is a new and updated version of the framework - Incoterms 2020 - in which the guidelines for DAP have been revised and clarified. From previously only taking into account what applies to third-party logistics - for example through PostNord - the rules now also cover transport arranged by sellers under their own management.
Related reading: here you can find more comprehensive information on logistics.
DAP delivery terms do not include customs clearance
Selling companies exporting products with DAP delivery terms do not need to think about customs clearance of the goods in the country of destination. That responsibility and those costs fall to the buyer instead. For companies that export and import goods to and from abroad, this is important to know. In general, it can be said that the DAP delivery terms are more favourable for exporters than they are for importers.
An alternative to DAP is the similar delivery term DDP (Delivered Duty Paid) - which is also included in Incoterms 2020. In DDP Incoterms, the exporting company also bears the full responsibility and costs of customs clearance of the goods - both in the country of consignment and in the country of destination. This clause is more favourable to buyers, as it imposes more extensive obligations on sellers.
Use DAP shipping terms when shipping with PostNord
As an accepted international delivery term, DAP Incoterms can of course be used for exports (and imports) with PostNord as carrier. The risk and ownership remains with you, the supplier, as defined in the terms and conditions, but we make sure your products are delivered quickly, safely and securely.
If you are a PostNord business customer, you can use our smart business services - which you can find in PostNord Portal Business - to make your exports easier, cheaper and smoother. These include features such as Skicka Direkt Business, which allows you to buy shipping online, and our integration solutions which allow you to connect your e-commerce to our system and add automatic shipping purchases. Both domestic and international.
Don't have a business account in the portal? No problem - here you can easily create an account.
