Improper use of incoterms in your contracts can cost you money!
Our company had a transaction where we (our U.S. entity) purchased material from Japan on a “DAP Miami, Florida” basis.
The incoterm “DAP” means “delivered at place”.
As we have stressed before, it is critical that all incoterms be followed by the location at which buyer takes over. In this case, it looks like that was done.
Normally, this is very straightforward: the seller pays for all transportation and risk up to the agreed-upon location, which they have stated as “Miami, Florida”.
The problem was: there was no actual address agreed-upon, so the seller sent it to the warehouse of their logistics provider in Miami.
Afterwards, we instructed our supplier to change the Bill of Lading instructions to show our customs broker’s facility.
You can order a copies of Incoterms 2010 by the International Chamber of Commerce at
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