Lesson 5 / 11 · any mode of transport
DAP Delivered at Place
The seller carries the goods — and the risk — all the way to the named place in the buyer's country, ready to be unloaded. The buyer unloads, clears the goods for import and pays duties and taxes.
Reviewed by: pending — expert review by TermVisa's editor (retired VP, international transport) in progress · Last updated
Scenario
A truckload of mining spares from Johannesburg to a mine in Zambia (road, cross-border)
DAP Kitwe Incoterms® 2020
- Seller
- Mining-equipment supplier, Johannesburg, South Africa
- Buyer
- Copper mine, Kitwe, Zambia
- Transport
- Road — one truck, Johannesburg → Kitwe, crossing a third country in transit
The seller, a mining-equipment supplier in Johannesburg, South Africa, sells a full truckload of pump spares to the buyer, a copper mine in Kitwe, Zambia, under DAP Kitwe Incoterms® 2020, naming the mine's stores yard. Transport is by road: the seller's trucking company drives north, crosses a third country under a transit procedure, and enters Zambia, where the mine's clearing agent clears the goods. The mine's stores team unloads.
Illustrative scenario: companies are generic, and real contracts, carriers and countries add their own conditions.
The journey, stage by stage
Top bar: who pays for each stage. Bottom bar: who bears the risk of loss or damage. The red line marks where risk passes.
- Seller
- Buyer
- Depends on contract / carrier or port practice
- Point where risk passes
⚠ Risk passes when the truck arrives at the mine's stores yard, ready for unloading. Import clearance on the way is the buyer's job, even though the seller still carries the risk.
- Loading at the seller's premises — Seller: Seller loads the trailer
- Export clearance — Seller: Export declaration in South Africa
- Main carriage — Seller: Truck to the Zambian border, crossing a third country under transit — transit formalities are the seller's
- Import clearance, duties and taxes — Buyer: Zambian import clearance by the buyer's agent; duties and taxes: buyer
- On-carriage to the named place — Seller: Same truck continues to the mine
- Unloading at the destination — Buyer: Mine's team unloads
Who does what in this scenario
| Party | What they arrange / do | Who pays (them / what they pay) | Risk they carry | Key documents |
|---|---|---|---|---|
| Seller / exporter | Loads, books the truck to the mine, handles export and transit formalities and sends the documents the buyer's agent needs before the truck reaches the border. | Loading, export and transit formalities, all transport to the mine. | Until the truck arrives at the mine, ready for unloading. | Commercial invoice, packing list, origin certificate if a regional preference applies, road consignment note, transit documents. |
| Buyer / importer | Appoints the clearing agent, is importer, pays duties and taxes, unloads at the mine. | Import clearance, duties and taxes, unloading; waiting time if its paperwork holds the truck. | From arrival at the mine, ready for unloading. | Import declaration and release, delivery receipt. |
| Origin freight forwarder | Often a cross-border road forwarder that also arranges transit bonds and border agents for the seller. | Seller. | Its own errors. | Transit documents, booking. |
| Destination freight forwarder | Usually not needed; the buyer's clearing agent is the key player at destination. | — | — | — |
| Road carrier (trucking company) | Drives Johannesburg → Kitwe through two borders, presents transit documents and waits for release. | Seller; waiting time (truck demurrage) at borders or on site is passed on according to who caused the delay. | Liable for transit damage within legal and contractual limits. | Road consignment note, signed proof of delivery. |
| Cargo insurer | No obligation, but the seller carries the risk to the mine and should insure its own interest, including transit through the third country. The buyer insures from delivery. | Each for its own cover. | Per policy. | Seller's policy. |
| Customs broker (export) | Files the export declaration in South Africa for the seller. Most countries require one; value thresholds, exceptions and export-control checks vary — ask the broker. | Seller. | Answers to its client for filing errors; the exporter stays responsible to customs. | Export declaration and release (proof of export). |
| Customs broker (import) | Classifies the goods, files the import declaration in Zambia for the buyer as importer, pays duties and import taxes on its account and obtains release. | Buyer. | The buyer remains responsible to customs as importer; the broker answers to it for its own errors. | Import declaration, duty and tax receipts, release. |
| Banks (letters of credit) | Payment may be open account, advance payment or a documentary credit against the signed delivery note. | As negotiated. | Credit risk on the buyer. | Invoice, proof of delivery. |
| Terminals and ports | No port terminal. Border posts and the mine's receiving hours play that role: congestion and missed slots mean waiting charges. | — | — | — |
✗ Common mistakes
- Buyer's clearing agent not ready when the truck reaches the border: days of waiting charges.
- Forgetting that crossing a third country needs transit formalities — under DAP, the seller's job.
- Seller assuming its risk ends at the border because the buyer clears customs there.
- No one ready to unload heavy spares at the destination.
? What to ask before you sign
- The buyer (Seller) Who is your clearing agent, and when do they need our documents to pre-clear?
- The carrier (Seller) How many free hours do you allow at borders and on site, and what is the waiting rate?
- Your customs broker (Buyer) What duties and taxes will apply, and do the goods qualify for a regional preference?
- Your cargo insurer (Seller) Does my cover include transit through the third country until delivery?
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