Read in
Table of contents
DAP (Delivered At Place) is one of the international Incoterms® used to determine the responsibilities between buyer and seller in international trade.
This Incoterm®, introduced by the ICC (International Chamber of Commerce), creates clear agreements on freight and delivery.
But what exactly does DAP mean, and how does it affect both the buyer and the seller?
What does DAP mean?
DAP stands for Delivered At Place, which means that the seller is responsible for delivering the goods to a specific location agreed upon by the parties. This could be a port, a warehouse or another destination.
The seller covers freight costs and bears all risk until the goods are made available at the agreed location.
NOTE: The seller is not responsible for unloading the goods. Under DAP, the seller's responsibility ends when the goods are ready for unloading at the destination — not after they've been unloaded.
The difference between DAP and DPU
Unlike DAP, where goods are delivered unloaded, DPU (Delivered At Place Unloaded) requires that the seller is responsible for unloading.
With DPU, the buyer only takes responsibility once the goods have been unloaded. With DAP, the buyer must arrange and pay for unloading themselves. The choice between the two comes down to who is better placed to handle unloading at the destination.
To understand how DAP compares to other Incoterms® such as FOB, CIF and DDP, check out our full guide to Incoterms® 2020.
Responsibility under DAP
With DAP, the seller is responsible for delivering the goods unloaded to the destination.
The seller is responsible for:
- Packaging of goods in accordance with agreed standards
- Managing export formalities in the country of origin
- Organising and paying for transport to the agreed destination
- All risks and costs until the goods are ready for unloading
NOTE: The seller makes the goods available at the destination — they are not required to unload them.
The buyer is responsible for:
- Unloading goods from the means of transport
- Paying import duties, customs duties and VAT in the destination country
- Managing any local distribution from the delivery point
Pros and cons of DAP for the seller
Pros:
- Greater control over transport means better visibility of the delivery process
- An opportunity to offer a more complete service to customers
Cons:
- Higher costs, as the seller is responsible for freight all the way to the destination
- Any delays during transport are the seller's risk to bear
Pros and cons of DAP for the buyer
Pros:
- The seller handles all transport right to the destination
- The buyer carries no risk for transport damage until the goods arrive
Cons:
- The buyer is responsible for customs clearance, which can be complex in certain countries.
- Unloading costs are an additional expense the buyer must account for
To sum up
DAP Incoterm® offers a clear division of responsibilities: the seller handles transport, while the buyer takes care of customs clearance and unloading.
Whether DAP is the right choice depends on what each party is best equipped to manage. Sellers can offer a more complete service by covering transport to the destination, while buyers need to be prepared to handle customs and local delivery on their end.
Get a full overview of responsibilities under all Incoterms® 2020..
FAQ
What are DAP Incoterms® customs duties?
Under DAP, the buyer is responsible for paying import duties, VAT and any other applicable taxes when the goods arrive in the destination country. While the seller covers transport to the delivery point, customs clearance and all related costs are the buyer's responsibility.
What does DDP Incoterms® mean?
DDP (Delivered Duty Paid) is an Incoterm®where the seller takes on full responsibility for transport, delivery and all associated costs — including customs duties and VAT — right to the buyer's door. This is the key difference from DAP, where those costs fall on the buyer.
What are DAP Incoterms® 2024?
There is no Incoterms® 2024 edition. The most current version is Incoterms® 2020, which followed Incoterms® 2010.
Under DAP Incoterm® 2020, the seller is responsible for transporting goods to an agreed destination. Once the goods arrive, risk and costs transfer to the buyer, who handles unloading and import processing — including customs duties and taxes.
What is the difference between DAP and DDP Incoterms®?
The key difference is that with DDP, the seller takes on all costs and responsibilities — including customs duties and VAT — until the goods are delivered to the buyer.
With DAP, the seller's responsibility ends at the destination, and the buyer handles customs clearance and import duties from that point.
What does DAP delivery mean?
DAP delivery means the seller delivers goods to an agreed location, where the buyer then takes over — covering unloading and any local costs such as customs duties, VAT and other applicable taxes. Delivery is considered complete when the goods are made available to the buyer at the destination, prior to unloading.
You must be logged in to post a comment.