What is DAP (Delivered at Place)?

DAP sits one step short of DDP. In both, the seller brings the goods all the way to the buyer's door. The difference is who deals with customs on arrival: under DAP it is the buyer. For the full list of rules, see what are Incoterms.

This is a general explanation, not legal, tax or customs advice. Import rules differ by country, so check with a customs broker.

Why DAP matters

DAP gives the buyer a delivered price without making the seller handle import customs in a foreign country. That is the part sellers find hardest, so DAP is a common middle ground for door-to-door sales across borders.

The buyer still needs to be ready for import: a customs broker, the right documents and cash for duties and taxes. The seller needs to know exactly where the "named place" is, because that is where its responsibility ends.

Who does what under DAP

The seller

• Clears the goods for export.
• Arranges and pays the carriage to the named place.
• Carries all the risk of loss or damage until the goods are placed at the buyer's disposal at the named place.
• Supplies the commercial invoice, the transport document and the other documents the buyer needs to take the goods.
• Gives notice to the buyer of when the goods will arrive.

The buyer

• Takes delivery at the named place and unloads the goods. If the seller should unload, the rule is DPU.
• Clears the goods for import and pays the import duties and taxes.
• Carries the risk from the moment the goods are ready for unloading.

Neither side has to buy insurance under DAP. The seller may still want cover, because it carries the risk until arrival.

Where risk passes

Risk passes when the goods arrive at the named place on the delivering vehicle and are ready to be unloaded. Damage in transit is the seller's problem. Damage during unloading is the buyer's.

An example from product sales

Say a coatings supplier sells 10 pallets of resin to a buyer in another country on DAP, buyer's warehouse. Goods are $12,000. The seller adds export costs of $650 and road and sea freight of $1,550, so the DAP price is $14,200.

The buyer then pays its broker's clearance fee and the import duty and taxes on top, and the lorry is unloaded by the buyer's staff. Those costs are not in the seller's price, so the buyer should budget for them. A landed cost sheet shows the buyer's true cost.

DAP vs DDP vs FCA

• DAP: the seller delivers to the named place. The buyer clears import and pays duties.
• DDP: the same delivery, but the seller clears import and pays duties.
• FCA: the seller hands the goods to the buyer's carrier at a named place, usually in the seller's country. The buyer pays the main carriage.

Common mistakes with DAP

• Vague named place. Write the full address, not just a town.
• Forgetting import costs. The buyer pays duties and taxes, so say so on the quote.
• Assuming the seller unloads. Under DAP it does not.
• Naming a port when you mean the warehouse. If the named place is a port or terminal, the buyer pays for everything after it. Name the place where your responsibility should really end. If you only want to pay the sea freight and hand over risk at loading, a rule such as CIF may fit better.

Related terms

• Incoterms: the 11 rules DAP belongs to.
• DDP: DAP plus import clearance and duties.
• FCA: the seller hands over early, usually at its own premises or a nearby terminal.
• Landed cost: the full cost at the buyer's door.
• Commercial invoice: the document customs uses to value the goods.

How PromptLab handles it

Record DAP in the trade terms field on the sales order, which lists the 11 Incoterms 2020 rules. An account can store its preferred terms, which fill in each new order. Write the full delivery address in the order's note, and use the quote's named additional costs for delivery.

Frequently asked questions

What does DAP mean?

DAP means Delivered at Place. The seller delivers the goods to the named place, ready for unloading, and carries the risk until then.

Who pays import duty under DAP?

The buyer. Under DAP the buyer clears the goods for import and pays the duties and taxes.

What is the difference between DAP and DDP?

Both deliver to the buyer's named place. Under DDP the seller also clears import and pays duties and taxes. Under DAP the buyer does.

Who unloads the goods under DAP?

The buyer. The goods arrive ready for unloading. If the seller should unload, the rule is DPU.

Does DAP require insurance?

No. Neither party must insure the goods under DAP. The seller bears the risk until delivery, so many sellers insure the journey anyway.