Meaning
International trade term defining the moment a seller completes delivery by placing battery goods at the disposal of the buyer on the arriving means of transport. The dap arrangement requires the seller to handle all costs and risks associated with moving the goods to a named destination. It includes the export clearance, the international freight, and the inland transport to the buyer’s warehouse.
This term is part of the Incoterms 2020 framework and is widely used for the door-to-door delivery of battery modules. The risk of loss transfers to the buyer only when the goods are ready for unloading at the final site. It does not include the cost of the import duties or the physical unloading process.
Delivery Point
Destination specified in the contract is the exact location where the seller’s responsibility ends. The dap term ensures that the battery manufacturer manages the complex logistics of moving dangerous goods across borders. This point can be a specific factory gate, a regional distribution center, or a construction site for a grid project.
The buyer must be ready to receive the goods and handle the unloading equipment. This clear definition of the handover location prevents disputes over who pays for local storage or detention. The seller must provide the buyer with any documents needed to take delivery.
Seller Risk
Management of the entire journey remains with the party sending the batteries until they reach the agreed spot. Under the dap agreement, the seller is responsible for any damage that occurs during ocean transit or road haulage. This includes the risk of a container fire or a vehicle accident that destroys the lithium cells.
The seller must choose reliable carriers who are certified to handle hazardous materials. This responsibility encourages the manufacturer to use high-quality packaging and secure loading techniques. If the shipment is lost, the seller must replace the goods or refund the payment.
Cost Allocation
Financial burden of the transport is factored into the initial price of the batteries. The dap term covers the sea freight, the port handling fees at the origin, and the truck delivery to the buyer. The buyer only pays the import taxes and the labor for the final offloading.
This structure is attractive to buyers who do not have their own logistics department or experience in handling international shipping. It allows the purchaser to know the total landed cost of the batteries before they arrive. The dap agreement is a common choice for high-value energy storage systems.
