DAP Incoterms 2020: Delivered at Place
Under DAP the seller delivers the goods to the named destination, ready for unloading, at its own cost and risk. The buyer unloads and handles import clearance, duties and taxes.
DAP Delivered at Place
Any mode of transport
| Step | DAP |
|---|---|
| Export packing and marking | Seller |
| Loading at the seller's premises | Seller |
| Export customs clearance | Seller |
| Transport to the port or terminal | Seller |
| Terminal charges and loading at origin | Seller |
| Main carriage (ocean or air freight) | Seller |
| Cargo insurance | Not required by the rule |
| Unloading at destination terminal | Seller |
| Transport to the named place | SellerRisk passes to the buyer here |
| Unloading at the named place | Buyer |
| Import clearance, duties and taxes | Buyer |
- DAP
- Risk passes: When the goods are at the named place of destination, on the arriving vehicle, ready for unloading.
- Costs: The seller pays all transport to the named place. The buyer pays unloading, import clearance, duties and taxes.
What does DAP mean?
DAP (Delivered at Place) means the seller delivers when the goods arrive at the named place of destination, on the arriving vehicle, ready for unloading. The seller pays the transport and bears the risk all the way there. The buyer unloads, clears import and pays duties and taxes. DAP works for any mode of transport.
Seller and buyer obligations under DAP
| Seller | Buyer |
|---|---|
| Arranges and pays all transport to the named place | Unloads the goods at the named place |
| Bears the risk until the goods arrive, ready for unloading | Clears import and pays duties, VAT or GST and import fees |
| Clears export and any transit through third countries | Pays costs caused by late import clearance, such as demurrage |
| Provides the documents the buyer needs to take the goods | Takes delivery when notified |
DAP example: delivery to the buyer's warehouse
A Spanish olive oil producer sells to a distributor in the UK "DAP Distributor's warehouse, Leeds, Incoterms® 2020". The producer books the truck from Jaén, pays the Channel crossing and the road to Leeds, and carries the risk. The distributor's customs broker files the UK import declaration and pays duty and VAT, and the distributor's staff unload the pallets.
DAP vs DDP vs DPU
| Rule | Who unloads | Who pays import duty and taxes |
|---|---|---|
| DAP | Buyer | Buyer |
| DPU | Seller | Buyer |
| DDP | Buyer | Seller |
DAP is often the best choice when a seller wants to offer door delivery but cannot or should not act as the importer in the buyer's country. Our guide to DAP vs DDP works through the duty and VAT on a real shipment and shows when each rule makes sense.
Watch out for
- Delays at import. If the goods wait at the border or port because the buyer has not cleared them, storage and demurrage fall on the buyer.
- Destination charges. Charges at the destination port or airport that are part of the seller's carriage contract stay with the seller unless the contract says otherwise. List them clearly in the quote.
- A precise place. Name the address, not just the city, because risk passes there.
Whatever the rule, the seller provides a commercial invoice that names the Incoterm and place, and usually a packing list. For quotes before the order, use a proforma invoice with the same rule written on it.
Features
- Who does each step under DAP
- Where risk passes, marked on the chart
- Compare DAP with DDP, DPU or any other rule
- Link to the Incoterms chooser
Frequently asked questions
Is there a DAP Incoterms 2022 or 2025?
No. Incoterms 2020 has applied since 1 January 2020 and is still the current edition, so DAP is defined by Incoterms 2020. Write "Incoterms 2020" after the named place in your contract.
What does DAP mean in shipping?
DAP means Delivered at Place. The seller delivers the goods to the named destination, ready for unloading, at its own cost and risk. The buyer unloads and handles import.
Who pays import duty under DAP?
The buyer pays import duties, taxes and clearance fees under DAP. Under DDP the seller pays them.
Who unloads under DAP?
The buyer. The seller's obligation ends when the goods are on the arriving vehicle, ready for unloading. Under DPU the seller unloads.
Does DAP include insurance?
No insurance is required by the rule. The seller bears the risk until delivery, so the seller usually insures the transport for its own protection.
What is the difference between DAP and DDP?
Under DAP the buyer clears import and pays duties and taxes. Under DDP the seller does, which means the seller acts as the importer.