The Incoterm 2020 DAP (Delivery At Place), requires that the merchandise be delivered by the seller by the buyer. This delivery is normally made at the buyer’s premises. Therefore the buyer is responsible for unloading the means of transportation.
Besides, the seller must complete the export procedures, while the buyer must complete the import procedures.
As with CPT Y CIP in the use of the Incoterm 2020 DAP, the seller is forced to contract the transport and risk transfers, although only at the time of delivery. However, the seller is not forced to the buyer to insure his risk.
However, this incoterm works well for the transport of goods by land and within the continental mass of Europe/ Central Asia. There may be problems with a change in the mode of transportation during the transfer. That is if the shipment is made by air and requires import clearance procedures in the destination country. These procedures must be carried out by the buyer while the merchandise is at the airport.
Once the shipment is authorized, the seller’s carrier (usually a freight forwarder) must receive the necessary documents to move the merchandise from the airport to its final destination.
The same is true when it comes to container shipments across the ocean, though there is an additional problem. The seller is obliged to return the empty container and bear all costs.
It is also important to clarify that the buyer must not be the consignee on any air waybill of the transport invoice. That is the responsibility of the seller, who must make all the arrangements so that his transport agent takes possession of the merchandise of the airline or transport company.
That is the responsibility of the seller, who must make all the arrangements so that his transport agent takes possession of the merchandise of the airline or transport company. Also, you must be in charge of organizing ground transportation for which a truck is usually chosen. If the merchandise is damaged or lost at any stage before reaching its final destination, the seller will not be able to make the delivery. As a result, you could breach the contract, and face an additional problem with the buyer, who by then will have already paid the import duties, as well as VAT/GST. On the other hand, if the buyer cannot dispatch the merchandise quickly, there is a risk that the cargo will be under the protection of customs control. And if this happens, you would also be violating the contract in case the seller can not deliver the merchandise.