Does the Incoterm DAP mean what we think it means, and will it work?

[PatrickSS]

I've always avoided Incoterms because I think they can be confusing.

E.g. we're shipping some expensive equipment to a lab in Turku, Finland. I think DAP terms would normally specify the PORT eg "DAP, Helsinki Airport", and we would hand over the goods there. Our contract doesn't mention the airport - it says we will deliver to Turku. We want to ship door-to-door by a route chosen by DHL, but we want the customer to pay any duty and VAT.

Q1: is DAP the correct term to put in the contract? Or, if it's wrong, will it still work?

Q2: according to DAP rules, who pays to move the goods from the airport to the lab in this example? Wikipedia says the customer does:

https://en.wikipedia.org/wiki/Incoterms#DAP_–_Delivered_At_Place_(named_place_of_destination)

All advice and comments are much appreciated! thx, Patrick

 

[Frank the Insurance guy]

I've always avoided Incoterms because I think they can be confusing.

Oh dear! If you are not using incoterms, you could be leaving yourself open to all sorts of issues and grey areas.

Incoterms are internationally understood with clear lines as to roles and responsibilities so that if something goes wrong there is no doubt about where each party stands.

Without using incoterms you are at the mercy of whatever you have agreed, which may or may not apply and be overriden by international conventions and agreements!

 

[MOIC]

Based on your post, If you're shipping door2door by DHL, then you should be using DDU (Delivered Duty Unpaid).

 

[DefinitelyMaybeUK]

you should be using DDU

DDU hasn't been in the drop down box on our DHL account for some time - DAP is the default and seems to work the same

 

[MOIC]

Technically DAP (Delivered At Port - the port should be specified), but if it’s door2door, then a ‘port’ isn’t the correct term if the supplier is arranging the shipment door2door.

Just my tuppence worth.

 

[PatrickSS]

Oh dear! If you are not using incoterms, you could be leaving yourself open to all sorts of issues and grey areas.

Incoterms are internationally understood with clear lines as to roles and responsibilities so that if something goes wrong there is no doubt about where each party stands.

Without using incoterms you are at the mercy of whatever you have agreed, which may or may not apply and be overriden by international conventions and agreements!

Oh dear! If you are not using incoterms, you could be leaving yourself open to all sorts of issues and grey areas.

Incoterms are internationally understood with clear lines as to roles and responsibilities so that if something goes wrong there is no doubt about where each party stands.

Without using incoterms you are at the mercy of whatever you have agreed, which may or may not apply and be overriden by international conventions and agreements!

Thank you for your message. All our customers assume that they will deliver door-to-door, but that they will pay duty and VAT. Is there an Incoterm for this? - there doesn't seem to be.

 

[MOIC]

If the supplier is paying for the shipping CIF can be used.

 

[PatrickSS]

DDU hasn't been in the drop down box on our DHL account for some time - DAP is the default and seems to work the same

Thank you MaybeUK and everyone. According to Wikipedia DDU is no longer an Incoterm. This is exactly why I hate Incoterms - everyone uses them for something that they DON'T specify, so everyone is confused. I will speak to DHL and see if they can shed light on this.

 

[PatrickSS]

If the supplier is paying for the shipping CIF can be used.

Thank you MaybeUK and everyone. According to Wikipedia DDU is no longer an Incoterm. This is exactly why I hate Incoterms - everyone uses them for something that they DON'T specify, so everyone is confused. I will speak to DHL and see if they can shed light on this.

Maybe I'm wrong. Maybe DAP is what I want - I think the seller does pay to ship the goods from the port to the final destination

 

[Import Expert]

Incoterms were updated in 2020. DAP (Delivered At Place) will suit your needs. Just specify where that 'Place' is - i.e. Port or the Lab in question. DDU mentioned above is not an official incoterm any more.