DAP (Delivered at Place) is an Incoterms rule where the seller is responsible for delivering the goods to a specified destination, covering all transportation costs and assuming the risk until the goods are ready for unloading. The buyer is responsible for unloading the goods and handling any import duties, taxes, and customs clearance. DAP is often used for all modes of transportation.
DAP Incoterms
Introduction to DAP Incoterms
In the realm of international trade, Incoterms play a crucial role in defining the rights and obligations of buyers and sellers involved in the transportation and delivery of goods. Among the various Incoterms, Delivered at Place (DAP) stands out as a widely used term that governs the delivery of goods to a specified destination. In this section, we provide an overview of Incoterms, define DAP Incoterms, and highlight their importance in international trade.
What are Incoterms?
Incoterms, short for International Commercial Terms, are a set of standardized terms published by the International Chamber of Commerce (ICC) that outline the rights and responsibilities of buyers and sellers in international trade contracts. These terms define the delivery point, transfer of risk, and allocation of costs between parties involved in the sale of goods across borders.
Definition of DAP Incoterms
Delivered at Place (DAP) is an Incoterm that places the responsibility for delivering the goods on the seller, who must arrange transportation to the named destination and bear all risks and costs associated with delivering the goods to that destination. Under DAP terms, the seller is responsible for clearing the goods for export and import, paying for transportation to the agreed-upon destination, and assuming the risk of loss or damage until the goods are delivered to the buyer at the specified place.
Importance of DAP Incoterms in International Trade
DAP Incoterms play a significant role in facilitating international trade by providing clarity and certainty regarding the terms of delivery and the allocation of responsibilities between buyers and sellers. Some key reasons why DAP terms are important in international trade include:
Clear Allocation of Responsibilities: DAP terms clearly delineate the responsibilities of the buyer and the seller, ensuring that both parties understand their obligations regarding transportation, customs clearance, and risk transfer.
Flexibility in Delivery: DAP terms offer flexibility in terms of delivery location, allowing buyers to specify the destination where they want the goods to be delivered. This flexibility enables buyers to choose the most convenient location for receiving the goods, whether it be their own premises, a warehouse, or a designated port.
Reduced Administrative Burden: By assuming responsibility for transportation and import clearance, sellers under DAP terms help streamline the logistics process for buyers, reducing administrative burden and potential delays associated with customs procedures.
Risk Management: Under DAP terms, the seller bears the risk of loss or damage to the goods until they are delivered to the buyer at the specified place. This helps mitigate risk for buyers, providing them with greater confidence and security in international transactions.
Key Features of DAP Incoterms
Delivered at Place (DAP) Incoterms encompass several key features that govern the delivery, risk transfer, and responsibilities of both the buyer and the seller in international trade transactions. In this section, we delve into the fundamental aspects of DAP terms, including delivery obligation, risk transfer, and the roles of the buyer and the seller.
Delivery Obligation
Under DAP Incoterms, the seller bears the responsibility for delivering the goods to the agreed-upon destination specified by the buyer. This includes arranging and paying for transportation of the goods to the named place of destination, whether it be the buyer’s premises, a designated warehouse, or another location mutually agreed upon by both parties.
The seller’s delivery obligation under DAP terms extends to ensuring that the goods are made available for unloading at the specified destination, ready for the buyer to take possession. This may involve coordinating with freight forwarders, carriers, and other logistics providers to facilitate timely and efficient delivery of the goods to the buyer’s chosen location.
Risk Transfer
One of the distinguishing features of DAP Incoterms is the transfer of risk from the seller to the buyer at the point of delivery. Until the goods are delivered to the specified destination and made available for unloading, the seller assumes the risk of loss or damage to the goods during transit.
Once the goods are delivered at the designated place, the risk transfers from the seller to the buyer. From that point onward, the buyer assumes responsibility for any loss or damage to the goods, as well as for any subsequent transportation, handling, or storage of the goods.
Responsibilities of the Buyer and the Seller
DAP Incoterms delineate the respective responsibilities of the buyer and the seller in international trade transactions. While the seller is responsible for arranging and paying for transportation to the agreed-upon destination, as well as for clearing the goods for export and import, the buyer assumes responsibility for receiving the goods at the specified place and unloading them.
Additionally, under DAP terms, the buyer is responsible for any costs incurred after the goods have been delivered, including import duties, taxes, and other charges associated with customs clearance and importation. The buyer must also bear the risk of loss or damage to the goods once they have been delivered and made available for unloading.
Understanding DAP Delivery Point
Delivered at Place (DAP) Incoterms specify the delivery point where the seller’s obligation to deliver the goods is fulfilled. Understanding the DAP delivery point is crucial for both buyers and sellers involved in international trade transactions. In this section, we define the DAP delivery point, discuss how it is determined, and explore the factors that can influence its selection.
Definition of DAP Delivery Point
The DAP delivery point is the specific location agreed upon by the buyer and the seller where the seller’s responsibility for delivering the goods is fulfilled. This could be the buyer’s premises, a designated warehouse, a port, or any other mutually agreed-upon destination. The DAP delivery point marks the point at which the seller completes their obligation to transport the goods and makes them available for the buyer to unload.
Determining the DAP Delivery Point
The determination of the DAP delivery point is typically outlined in the sales contract or purchase agreement between the buyer and the seller. Both parties must agree on the exact location where the goods will be delivered before finalizing the transaction. The choice of delivery point can vary depending on factors such as the nature of the goods, the buyer’s preferences, and logistical considerations.
Factors Affecting the DAP Delivery Point
Several factors can influence the selection of the DAP delivery point in international trade transactions. Some key factors to consider include:
Buyer’s Convenience: The DAP delivery point may be determined based on the buyer’s convenience and operational requirements. Buyers may specify a location that is easily accessible and suitable for receiving and unloading the goods, such as their own premises or a designated warehouse.
Transportation Logistics: The choice of DAP delivery point may also be influenced by transportation logistics, including the availability of transportation infrastructure, proximity to major transport routes, and ease of access for carriers. Sellers may opt for delivery points that offer efficient transportation links to minimize transit times and costs.
Legal and Regulatory Considerations: Legal and regulatory factors, such as import/export regulations, customs clearance requirements, and local laws governing the movement of goods, can impact the selection of the DAP delivery point. Sellers must ensure compliance with relevant regulations when determining the delivery point.
Risk Management: Sellers may consider risk management factors when selecting the DAP delivery point, such as the risk of damage or loss during transportation and the security of the chosen destination. Choosing a secure and reliable delivery point can help mitigate risks and ensure the safe delivery of the goods to the buyer.
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Documentation Required for DAP Incoterms
Under Delivered at Place (DAP) Incoterms, various documentation is essential to facilitate smooth and compliant international trade transactions. In this section, we outline the key documents required when conducting transactions under DAP terms, including the commercial invoice, packing list, bill of lading or airway bill, and certificate of origin.
Commercial Invoice
A commercial invoice is a crucial document in international trade transactions conducted under DAP Incoterms. It provides a detailed breakdown of the goods being shipped, including their description, quantity, value, and other relevant information. The commercial invoice serves as a legal document for customs clearance, import/export documentation, and payment processing. It is typically issued by the seller and presented to the buyer as part of the shipment documentation.
Packing List
A packing list accompanies the commercial invoice and provides additional details about the contents of the shipment. It lists each item included in the shipment, along with its quantity, dimensions, weight, and packaging type. The packing list helps facilitate the accurate and efficient handling of the goods during transportation, customs inspection, and delivery. Like the commercial invoice, the packing list is usually prepared by the seller and presented to the buyer as part of the shipment documentation.
Bill of Lading or Airway Bill
For shipments transported by sea or air, a bill of lading or airway bill is required under DAP Incoterms. A bill of lading is a document issued by the carrier or its agent, acknowledging receipt of the goods for shipment and outlining the terms of the transportation contract. It serves as a receipt for the goods, a contract of carriage, and a document of title, enabling the buyer to claim ownership of the goods upon arrival at the destination port. Similarly, an airway bill serves as a contract of carriage for air freight shipments, detailing the terms of transport and serving as a receipt for the goods.
Certificate of Origin
A certificate of origin may be required for certain shipments under DAP Incoterms, depending on the destination country’s import regulations and trade agreements. This document certifies the country of origin of the goods and may be necessary for customs clearance, preferential tariff treatment, and compliance with trade agreements. The certificate of origin is typically issued by the exporter or a relevant authority and must accompany the shipment to verify the origin of the goods.
Advantages of DAP Incoterms
Delivered at Place (DAP) Incoterms offer several advantages for both buyers and sellers involved in international trade transactions. In this section, we highlight the key benefits of utilizing DAP terms, including a simplified shipping process, reduced risk for the buyer, and flexibility in negotiation.
Simplified Shipping Process
One of the primary advantages of DAP Incoterms is the simplified shipping process it offers. Under DAP terms, the seller assumes responsibility for arranging and paying for transportation to the agreed-upon destination specified by the buyer. This streamlines the logistics process for the buyer, as they do not need to coordinate transportation or logistics services. Instead, the seller takes on the task of arranging for the goods to be delivered directly to the buyer’s designated location, whether it be their premises, a warehouse, or another specified destination. This simplification of the shipping process helps save time and resources for the buyer, allowing them to focus on other aspects of their business operations.
Reduced Risk for the Buyer
DAP Incoterms also provide reduced risk for the buyer compared to other Incoterms. Since the seller is responsible for arranging transportation and assuming the risk of loss or damage to the goods during transit, the buyer has greater peace of mind knowing that the seller bears the risk until the goods are delivered to the specified destination. This reduced risk for the buyer helps minimize potential financial losses and uncertainties associated with international trade transactions. By shifting the burden of transportation and risk management to the seller, DAP terms offer buyers greater security and protection throughout the shipping process.
Flexibility in Negotiation
Another advantage of DAP Incoterms is the flexibility they offer in negotiation. DAP terms allow for flexibility in determining the specific delivery point and other terms of the agreement between the buyer and the seller. This flexibility enables both parties to tailor the terms of the transaction to their specific needs and preferences, accommodating factors such as transportation logistics, destination preferences, and risk management considerations. By allowing for negotiation and customization of the terms, DAP Incoterms facilitate mutually beneficial agreements that meet the unique requirements of both buyers and sellers.
Challenges and Risks Associated with DAP Incoterms
While Delivered at Place (DAP) Incoterms offer various advantages for international trade transactions, they also present certain challenges and risks that buyers and sellers should be aware of. In this section, we highlight some of the key challenges and risks associated with DAP terms, including lack of control over transportation, potential disputes over the delivery point, and customs clearance issues.
Lack of Control over Transportation
One of the primary challenges of DAP Incoterms is the lack of control over transportation for the buyer. Since the seller is responsible for arranging and paying for transportation to the agreed-upon destination, the buyer has limited influence or control over the shipping process. This lack of control can lead to uncertainties regarding the choice of carrier, transit times, and the condition of the goods during transportation. Buyers may experience delays or disruptions in delivery, which can impact their supply chain operations and customer satisfaction.
Potential Disputes over Delivery Point
Another challenge associated with DAP Incoterms is the potential for disputes over the delivery point. Determining the exact location where the goods will be delivered can sometimes be ambiguous or subject to interpretation. Disputes may arise between the buyer and the seller regarding the selection of the delivery point, leading to delays, additional costs, and strained business relationships. Clear communication and agreement on the delivery point are essential to avoid disputes and ensure smooth execution of transactions under DAP terms.
Customs Clearance Issues
DAP Incoterms may also pose challenges related to customs clearance, especially in cross-border trade transactions. Since the seller is responsible for clearing the goods for export and import, buyers may encounter issues with customs authorities if the necessary documentation is not provided or if there are discrepancies in the paperwork. Delays in customs clearance can result in additional costs, storage fees, and potential penalties for the buyer. It is essential for sellers to ensure compliance with customs regulations and provide accurate and complete documentation to facilitate smooth customs clearance processes.
Comparison with Other Incoterms
When it comes to international trade, choosing the right Incoterm is crucial for both buyers and sellers to clarify responsibilities, manage risks, and ensure smooth transactions. In this section, we’ll contrast Delivered at Place (DAP) with other similar Incoterms such as Delivered at Terminal (DAT), Delivered Duty Paid (DDP), and highlight the pros and cons of each term for buyers and sellers.
DAP vs. DAT
Delivered at Place (DAP) and Delivered at Terminal (DAT) are both Incoterms that involve the seller’s responsibility for delivering the goods to a specified location. However, the key difference lies in the delivery point:
- DAP: Under DAP terms, the seller is responsible for delivering the goods to a named place agreed upon by the buyer, which can be any location, including the buyer’s premises, a warehouse, or another designated destination.
- DAT: In contrast, DAT terms require the seller to deliver the goods to a specified terminal, such as a port, terminal, or warehouse, where the goods are made available to the buyer for unloading.
Pros and Cons:
- DAP Pros: Offers flexibility in choosing the delivery location, reduces risk for the buyer, and simplifies logistics.
- DAP Cons: May lead to potential disputes over the delivery point and lack of control over transportation.
DAP vs. DDP
Delivered at Place (DAP) and Delivered Duty Paid (DDP) are both Incoterms that involve the seller assuming responsibility for delivering the goods to the buyer’s designated location. However, the key difference lies in the extent of the seller’s obligations regarding customs clearance and import duties:
- DAP: The seller is responsible for delivering the goods to the named place agreed upon by the buyer, but the buyer is responsible for customs clearance, import duties, and taxes.
- DDP: Under DDP terms, the seller is responsible for delivering the goods to the buyer’s designated location and handling all aspects of customs clearance, including payment of import duties and taxes.
Pros and Cons:
- DAP Pros: Provides flexibility in negotiation, reduces risk for the buyer, and simplifies shipping processes.
- DAP Cons: Requires the buyer to handle customs clearance and import duties, which can lead to additional costs and administrative burden.
Pros and Cons of Different Incoterms for Buyers and Sellers
For Buyers:
- Pros: Reduced risk and responsibility for transportation, clear delivery terms, and potential cost savings.
- Cons: Limited control over transportation, potential disputes over delivery point, and additional administrative burden for customs clearance and import duties.
For Sellers:
- Pros: Control over transportation and delivery, flexibility in negotiation, and reduced risk for disputes over delivery.
- Cons: Responsibility for transportation and risk until delivery, potential disputes over delivery point, and administrative burden for customs clearance under certain terms.
Best Practices for Using DAP Incoterms
To ensure smooth and successful international trade transactions under Delivered at Place (DAP) Incoterms, it’s essential to adhere to best practices that promote clarity, compliance, and efficiency. In this section, we outline key strategies for effectively utilizing DAP terms, including clear communication between parties, understanding local regulations, and partnering with reliable transportation and logistics providers.
Clear Communication Between Parties
Clear and effective communication between the buyer and the seller is paramount when utilizing DAP Incoterms. Both parties must have a thorough understanding of their respective roles, responsibilities, and expectations throughout the transaction process. This includes specifying the exact delivery location, agreeing on the terms of transportation, and establishing timelines for shipment and delivery.
Proactive communication is key to preventing misunderstandings and resolving any issues that may arise during the course of the transaction. By maintaining open lines of communication and addressing any concerns or changes promptly, buyers and sellers can ensure a smooth and transparent transaction process under DAP terms.
Understanding Local Regulations
Navigating local regulations and compliance requirements is crucial when operating under DAP Incoterms, especially in international trade. Sellers must be well-versed in the customs procedures, import/export regulations, and documentation requirements of the destination country or region. This includes understanding duty and tax implications, import restrictions, and licensing requirements that may impact the movement of goods.
Likewise, buyers must ensure compliance with local regulations governing the receipt and clearance of imported goods. This may involve obtaining necessary permits or certifications, coordinating with customs authorities, and adhering to any specific requirements for the type of goods being imported. By staying informed and proactive in addressing regulatory compliance, businesses can avoid delays and penalties that could jeopardize the success of DAP transactions.
Using Reliable Transportation and Logistics Partners
Partnering with reliable transportation and logistics providers is essential for ensuring the timely and secure delivery of goods under DAP terms. Sellers must carefully select carriers, freight forwarders, and other logistics partners with a proven track record of reliability, efficiency, and compliance with regulations.
By choosing reputable transportation and logistics partners, sellers can minimize the risk of transportation delays, damages, or disruptions that could impact the success of DAP transactions. Additionally, maintaining strong relationships with transportation providers enables sellers to leverage their expertise and resources to optimize shipping routes, reduce costs, and enhance the overall efficiency of the supply chain.
Future Trends and Developments
As international trade continues to evolve, several trends and developments are shaping the landscape of Delivered at Place (DAP) transactions. In this section, we explore potential changes in international trade regulations affecting DAP and emerging technologies impacting DAP logistics.
Changes in International Trade Regulations Affecting DAP
Customs Automation and Digitalization: With advancements in technology, there is a growing trend towards customs automation and digitalization of trade processes. This includes the implementation of electronic customs declarations, digital documentation, and automated clearance procedures. Such initiatives aim to streamline customs processes, reduce administrative burdens, and enhance transparency in trade transactions, potentially benefiting DAP shipments by simplifying customs clearance procedures.
Trade Agreements and Tariff Policies: Changes in trade agreements and tariff policies between countries can have significant implications for DAP transactions. The renegotiation of trade agreements, imposition of tariffs, or changes in preferential trade arrangements may impact the cost, documentation requirements, and regulatory compliance associated with DAP shipments. Businesses engaged in DAP transactions must stay informed about evolving trade policies and adjust their strategies accordingly to remain competitive and compliant.
Emerging Technologies Impacting DAP Logistics
Blockchain Technology: Blockchain technology holds the potential to revolutionize DAP logistics by providing a secure, transparent, and tamper-proof system for recording and tracking shipment data. Through blockchain-based platforms, stakeholders in DAP transactions can securely exchange documentation, track the movement of goods in real-time, and ensure compliance with regulatory requirements. Blockchain technology can enhance transparency, reduce fraud, and streamline logistics processes in DAP transactions.
Internet of Things (IoT) and Sensor Technology: The Internet of Things (IoT) and sensor technology are increasingly being deployed in logistics operations to monitor and track the condition, location, and status of goods during transportation. IoT-enabled devices and sensors embedded in shipments can provide real-time data on temperature, humidity, shock, and other environmental factors, allowing for proactive monitoring and intervention to prevent damage or spoilage of goods. By leveraging IoT and sensor technology, businesses can enhance the reliability, visibility, and efficiency of DAP logistics operations.
Conclusion
In the ever-evolving landscape of international trade, Delivered at Place (DAP) Incoterms serve as a vital framework for facilitating seamless transactions between buyers and sellers across borders. As we’ve explored in this comprehensive guide, DAP offers advantages such as simplified shipping processes, reduced risk for buyers, and flexibility in negotiation, making it a preferred choice for many businesses engaged in global commerce.
However, it’s essential to recognize the challenges and risks associated with DAP transactions, including potential disputes over delivery points, lack of control over transportation, and customs clearance issues. By adhering to best practices such as clear communication, understanding local regulations, and partnering with reliable logistics providers, businesses can mitigate these risks and ensure the success of their DAP transactions.
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FAQs
What is DAP in Incoterms?
DAP (Delivered At Place) is an Incoterm where the seller is responsible for delivering goods to a specified destination. The seller covers all costs and risks until the goods are ready for unloading, but the buyer is responsible for import duties and taxes.
What does DAP mean in shipping?
In shipping, DAP means that the seller delivers the goods to the agreed destination, and the buyer is responsible for unloading, duties, taxes, and customs clearance.
Who pays duty in DAP Incoterm?
The buyer pays all import duties, taxes, and customs clearance costs under DAP terms.
What is the difference between DAP and DDP?
DAP (Delivered At Place) requires the buyer to handle import duties, taxes, and customs clearance, while DDP (Delivered Duty Paid) means the seller is responsible for all these costs, delivering the goods ready for unloading with all duties paid.
Who pays insurance for DAP?
The seller is not obligated to provide insurance under DAP terms. If insurance is needed, it is typically the buyer’s responsibility unless otherwise agreed upon.
Is DAP shipping door to door?
DAP can be door-to-door if the destination is specified as the buyer’s premises. However, the buyer is responsible for unloading the goods.
Is DAP shipping good?
DAP shipping is beneficial for buyers who want the seller to manage most of the logistics but still prefer control over import duties, taxes, and customs clearance.
What is the difference between DAP and FOB shipping terms?
Under DAP, the seller is responsible for the goods until they reach the buyer’s specified destination. In FOB (Free On Board), the seller’s responsibility ends when the goods are loaded onto the ship, and the buyer takes responsibility from that point.
What is the difference between DAP and CIF Incoterms?
In DAP, the seller delivers goods to a specified location, and the buyer handles unloading and import formalities. CIF (Cost, Insurance, and Freight) applies to sea freight, where the seller covers cost, insurance, and freight to the destination port, with the buyer taking responsibility once the goods are on board the ship.
Is DAP still an Incoterm?
Yes, DAP is one of the 11 current Incoterms as of the 2020 update.
Who pays demurrage on DAP terms?
The buyer is typically responsible for any demurrage charges incurred during unloading or delays after the goods arrive at the destination.
What is DAP delivery duty unpaid?
DAP delivery duty unpaid means the seller delivers the goods to the specified location, but the buyer is responsible for duties, taxes, and customs clearance.
What are the rules for DAP Incoterm?
Under DAP, the seller delivers the goods to the agreed destination and covers all costs and risks until the goods are ready for unloading. The buyer is responsible for import duties, taxes, and unloading.
What is an example of a DAP Incoterm?
Example: A seller in China agrees to deliver machinery to a buyer in Germany. The seller arranges transportation to the buyer’s warehouse in Germany, but the buyer handles customs clearance, import duties, and unloading.
Does DAP include import clearance?
No, DAP does not include import clearance. The buyer is responsible for customs clearance and associated costs.
Who is responsible for insurance in DAP Incoterm?
The seller is not required to provide insurance under DAP terms. If insurance is needed, the buyer typically arranges it unless agreed otherwise.
What are the disadvantages of DAP Incoterm?
The main disadvantage for the seller is bearing the risk and cost until the goods reach the final destination. For the buyer, the responsibility for import clearance and associated risks can be a drawback.
What is the difference between FCA and DAP Incoterm?
In FCA (Free Carrier), the seller delivers goods to a carrier or a specified place, with the buyer taking responsibility from that point. In DAP, the seller is responsible for delivering the goods to the buyer’s specified location, with the buyer only responsible for unloading and import duties.
What is the difference between EXW and DAP?
EXW (Ex Works) places the most responsibility on the buyer, who must arrange pickup from the seller’s premises and handle all transport, risks, and costs. DAP requires the seller to deliver goods to the buyer’s specified location, with the buyer only responsible for unloading and import duties.
Who files ISF for DAP?
In the U.S., the buyer or the buyer’s representative typically files the Importer Security Filing (ISF) when goods are shipped under DAP terms.
What is the difference between DAP and FOB?
DAP requires the seller to deliver the goods to a specified destination, with the buyer handling unloading and duties. FOB is used for sea freight, where the seller’s responsibility ends once the goods are on board the ship.
What is the difference between CIF and DAP?
CIF is used for sea freight, with the seller covering costs, insurance, and freight to the destination port, while DAP can be used for all modes of transport, requiring the seller to deliver to a specified destination, with the buyer handling import formalities.
What are terms DAP vs DDP?
DAP means the seller delivers the goods ready for unloading at a specified destination, but the buyer handles import duties and taxes. DDP means the seller covers all costs, including duties and taxes, delivering the goods ready for unloading with no additional costs to the buyer.
What is the difference between DAP and CFR?
DAP applies to all transport modes and requires the seller to deliver to a specified destination. CFR (Cost and Freight) is used for sea freight, where the seller covers the cost and freight to the destination port, but the buyer assumes risk once the goods are on board the ship.
What is the difference between DAT and DAP Incoterm?
DAT (Delivered At Terminal) required delivery at a terminal with the buyer handling import duties and transport from the terminal. DAT was replaced by DPU (Delivered at Place Unloaded) in 2020. DAP requires the seller to deliver to a specified location, with the buyer responsible for unloading and duties.
What is DAP and CPT Incoterms?
DAP requires the seller to deliver to a specified destination with the buyer handling unloading and duties. CPT (Carriage Paid To) requires the seller to pay for transport to the destination, but the risk transfers to the buyer once the goods are handed to the first carrier.
What is DAP and CIP Incoterms?
DAP requires the seller to deliver to a specified destination, with the buyer responsible for unloading and duties. CIP (Carriage and Insurance Paid To) is similar to CPT, but the seller must also provide insurance.
Who is responsible for insurance under DAP Incoterms?
The seller is not obligated to provide insurance under DAP. If insurance is needed, it is typically arranged by the buyer.
What is a DAP transfer of ownership?
In DAP, the transfer of ownership and risk occurs when the goods are delivered to the specified destination and are ready for unloading by the buyer.
What is the difference between DES and DAP?
DES (Delivered Ex Ship) was an older Incoterm requiring delivery on board a ship at the destination port, with the buyer responsible for unloading. DES was replaced by DAP in 2010, which requires delivery at a named place, not necessarily on board a ship.