DAP – Delivered at Place

The method by which Studmarc ships is commonly known as DAP or delivered at place. This refers to the responsibility of fees and obligations for a shipment at any point in its journey to the destination. This article aims to clear up any confusion and give you a better understanding of the processes involved when purchasing abroad under the DAP process.

What is DAP or delivered at place?

Delivered at place is a commonly used form of delivery service in both B2B and B2C commerce. The term refers to the agreement between the buyer and seller to deliver to a specified place, usually the business address given at the point of purchase. It also encapsulates the responsibilities and obligations of each party throughout the shipping process.

Seller’s obligations and responsibilities:

• To provide the goods, relevant documentation, and a commercial invoice
• Packaging and correct labelling
• Export licenses and customs documentation fulfilment
• Pre-delivery costs and fees
• Pre-shipment inspections
• Upfront carriage costs
• Specification of a destination address
• Proof of delivery

Buyer’s obligations and responsibilities:

• Payment of goods
• The unloading from the arriving method of transportation
• Import duties and fees
• Costs of import clearance

In summary, the seller claims responsibility for the goods until they reach the port of entry, at which point the responsibility changes to the buyer. The carriage fee from the port of entry to the business address is already covered in the initial delivery cost, so all that’s left are the import duties, taxes, and clearance fees.
The advantage of this for the buyer is that until the goods reach the port of entry, they have no obligations or responsibilities relating to them. This means that if the goods go missing, are seized, or are held up due to incorrect paperwork, it’s not incumbent on them to pay any fees or charges. This is especially useful if the business has no physical location at the point of origin.

How are duties and taxes paid?

When a shipment incurs duties or taxes, the local customs authority contacts either the buyer or the designated courier with information relating to them, including the total and due date for the payment.

For US customers there are three ways to directly pay the duties and taxes incurred:

Mail to Customs and Border Protection (CBP)
A check or money order can be sent directly to the CBP via mail.

CBP Outlet
The fee can be paid at a Customs and Border Protection outlet by cheque, cash, or credit card.

Automated Clearinghouse System (ACH)
The most efficient way is to set up an ACH account. This account allows the US CBP to withdraw funds from a set bank account automatically as the goods enter the country to prevent delays. There is also the option to manually pay the statements by transferring the funds to the account.

Other options
If there’s already an appointed freight broker for the business they can handle the import fees, otherwise one can be appointed.