Delivered At Place (DAP) is the practical workhorse term for cross-border trade when the seller is willing to manage transport to the destination, but the buyer still wants to control import customs and pay duties and taxes. If you use it correctly, it reduces friction. If you write it lazily, it creates disputes around unloading, demurrage, and delivery completion.
DAP means the seller pays and arranges transport to an agreed destination point. The seller carries risk up to that destination point. The buyer clears customs for import, pays import duties and taxes, and typically unloads the goods unless the contract states otherwise.
| Topic | Seller Under DAP | Buyer Under DAP |
|---|---|---|
| Export clearance | Handles export documentation and export customs when applicable | Provides data the seller needs for export filings |
| Main carriage | Books and pays transport to the named place of destination | Coordinates receiving window and site constraints |
| Delivery point | Delivers when goods are ready for unloading at the named place | Accepts delivery at the named place |
| Unloading | Not required unless contract adds unloading service | Unloads and bears unloading risk and cost |
| Import clearance | No obligation to clear import customs | Clears import customs and appoints broker |
| Import duties and VAT | No obligation | Pays duties, VAT, and other import taxes |
| Insurance | No obligation to insure unless contract requires it | Chooses whether to insure and at what level |
Risk transfers when the goods are placed at the buyer’s disposal on the arriving vehicle, ready for unloading, at the named place. If the named place is vague, risk transfer becomes a debate.
Write the named place like an address:
'DAP, Building 3, Dock 7, 21 Example Road, Rotterdam, Netherlands, Incoterms 2020.'
Do not write:
'DAP Netherlands' or 'DAP buyer warehouse' without a specific location and delivery logic.
Many buyers assume the seller is delivering to the door including unloading. DAP does not require unloading. If the site needs a forklift, crane, tail-lift, or booking slot, define it in the contract.
If the delivery point is a terminal, there may be handling charges. If it is a site, there may be waiting time and failed delivery fees. Spell out who pays accessorials and redelivery attempts.
Under DAP, import clearance is on the buyer. If the buyer is slow, cargo sits and demurrage starts. Your contract should allocate reimbursement and causation clearly.
If the buyer needs originals or specific certificates to clear customs, late documents can cause delays. Define a document delivery timeline and remedies for late or incorrect paperwork.
| Term | Delivery Point | Unloading | Import Duty and Taxes |
|---|---|---|---|
| DAP | Named place, ready for unloading | Buyer | Buyer |
| DPU | Named place, delivered after unloading | Seller | Buyer |
| DDP | Named place | Usually buyer unless agreed | Seller |
If you want DAP to behave like a predictable delivery term, add operational clauses that remove ambiguity.
Example wording:
'DAP, [full address], Incoterms 2020. Buyer is responsible for import clearance, duties, VAT, and unloading. Seller arranges transport to the named place and provides shipping documents within [X] days of departure.'
The buyer pays import duty and import taxes. If the seller pays duty, that is closer to DDP, not DAP.
No. DAP delivery is made ready for unloading on the arriving vehicle. If you want the seller to unload, use DPU or add unloading obligations explicitly.
Risk transfers when the goods are placed at the buyer’s disposal at the named place of destination, ready for unloading. The named place must be specific.
Import clearance is the buyer’s responsibility under DAP, so customs-driven delays are typically the buyer’s cost. Carriers may invoice whoever they can enforce against, so your contract should allocate reimbursement clearly.
Yes. DDU is a legacy term. DAP is the modern ICC term that usually matches the commercial intent of delivered, duty unpaid.
Disclaimer: This explainer is for general information only and does not constitute legal, tax, or customs advice. Incoterms allocate delivery obligations, costs, and risk, but they do not replace a properly drafted sales contract. Obtain jurisdiction-specific advice for customs and VAT.
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