Incoterms 2020

DAP Incoterm (Delivered at Place) – Meaning, Risk & Costs

DAP (Delivered at Place) under Incoterms 2020: where risk transfers, who pays for carriage, and seller and buyer obligations.

Rule: DAP – Delivered at Place (named place of destination)
Transport mode: Any Mode of Transport
Insurance required: No
Export clearance: Seller
Import clearance: Buyer
Main carriage: Seller

Delivered at Place (DAP) means the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport, ready for unloading at the named place of destination. The seller bears all risks involved in bringing the goods to the named place.

DAP is very buyer-friendly as the seller handles most of the logistics. However, the buyer is still responsible for import customs clearance and duties. This makes DAP unsuitable for destinations where import clearance might be problematic.

The named place should be specified as precisely as possible to avoid disputes about where delivery occurs.

When risk transfers under DAP

When goods are placed at buyer's disposal at destination

When costs transfer under DAP

At named place of destination (before unloading)

Seller obligations under DAP

Deliver goods on arriving transport at destination
Contract and pay for carriage
Clear goods for export
Bear all risks until goods arrive at destination
Provide necessary documents

Buyer obligations under DAP

Unload goods from arriving vehicle
Handle import customs clearance
Pay import duties and taxes
Take delivery at named place

Who is responsible for what under DAP

Export customs clearance: Seller
Import customs clearance: Buyer
Loading: Seller
Main carriage: Seller
Unloading: Buyer
Delivery to destination: Seller

Common uses of DAP

Door-to-door deliveries
When buyer cannot handle logistics
E-commerce shipments
Project cargo

DAP is best for

Buyers wanting delivered pricing
When seller knows destination logistics well
Simplified import responsibilities for buyer

Risks to watch with DAP

Seller bears transport risk to destination
Import clearance delays affect buyer
Seller should verify destination accessibility

Frequently asked questions

What does DAP mean in shipping?

DAP stands for Delivered at Place. Delivered at Place (DAP) means the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport, ready for unloading at the named place of destination.

When does risk transfer under DAP?

When goods are placed at buyer's disposal at destination

Who pays for main carriage under DAP?

The seller pays for main carriage under DAP.

Who handles customs clearance under DAP?

Under DAP, the seller handles export clearance and the buyer handles import clearance.

Is insurance required under DAP?

No. DAP does not require either party to buy insurance, though either may choose to arrange it.