Certified Supply Chain Professional (CSCP) Practice Exam

What does DAP stand for in shipping terms?

1. Delivered at Terminal

2. Delivered at Place

3. Delivered Duty Paid

4. Free on Board

The correct answer is: Delivered at Place

In shipping terms, DAP stands for "Delivered at Place." This Incoterm means that the seller is responsible for delivering the goods to a designated location, but they do not have to unload the goods or clear them for import. Essentially, the risk and responsibility for the shipment transfer from the seller to the buyer once the goods are made available at the agreed location. Understanding the broader context of Incoterms is essential here, as they define the responsibilities of sellers and buyers in international trade. Delivered at Place indicates that the seller covers transportation costs and risks up until the goods reach the specified place, making it crucial for the buyer to be aware of where the delivery will occur and what costs might be incurred afterward, such as unloading or customs clearance. Other terms, like Delivered at Terminal or Delivered Duty Paid, indicate different responsibilities and points of transfer for the goods. For instance, Delivered Duty Paid includes the seller taking responsibility for tariffs and taxes, while Delivered at Terminal specifies that the delivery is complete when the goods arrive at a terminal, which is different from a broader delivery point implied in DAP.