DAP puts most of the logistics burden on the seller. Under this Incoterm, the seller is responsible for delivering the goods to a named place at the destination — not just to the port, but to wherever the buyer specifies. That could be the buyer's warehouse, a distribution center, or any other agreed location.
For buyers, DAP is convenient. You receive the goods at your doorstep (or close to it) with the seller handling everything up to that point. For sellers, DAP means managing a longer, more complex logistics chain with risk that extends all the way to the destination country.
This guide explains how DAP works, what each party is responsible for, and when it makes sense to use.
DAP (Delivered at Place) is an Incoterm defined by the International Chamber of Commerce (ICC) under Incoterms 2020. It means the seller is responsible for:
The buyer is responsible for:
DAP is used with a named place of destination. For example: "DAP Buyer's Warehouse, 123 Industrial Blvd, Dallas, TX" means the seller delivers the goods to that specific address.
DAP works with any mode of transport — ocean, air, road, rail, or multimodal. This makes it more versatile than sea-only Incoterms like CFR or CIF.
| Responsibility | Details |
|---|---|
| Goods and invoice | Provide the goods and commercial invoice per the sales contract |
| Export clearance | Handle all export customs formalities at origin |
| All transportation | Arrange and pay for transport from origin to the named destination |
| Risk until delivery | Bear all risk of loss or damage until the goods reach the named place |
| Transit insurance | Not required, but the seller bears risk so insurance is in their interest |
| Delivery | Deliver the goods on the arriving means of transport, ready for unloading, at the named place |
| Transport documents | Provide the buyer with documents needed to take delivery |
| Responsibility | Details |
|---|---|
| Payment | Pay the price of the goods as per the sales contract |
| Import clearance | Handle all import customs formalities, duties, taxes, and permits |
| Unloading | Unload the goods from the arriving vehicle at the named place |
| Risk from delivery | Bear all risk from the moment the goods are made available for unloading |
Under DAP, risk transfers from the seller to the buyer when the goods are placed at the buyer's disposal on the arriving means of transport, ready for unloading, at the named destination.
This is a critical difference from port-based Incoterms like FOB, CFR, and CIF, where risk transfers at the origin port. With DAP, the seller carries the risk through the entire transit — ocean voyage, destination port handling, and inland transport to the final destination.
What this means in practice:
If a container is damaged during the ocean crossing, it's the seller's loss. If the truck carrying the goods from the destination port to the buyer's warehouse has an accident, it's still the seller's loss. Risk only shifts to the buyer at the moment the goods arrive at the named place, sitting on the truck, ready to be unloaded.
The buyer's risk begins at the unloading point. If goods are damaged during unloading, that's the buyer's responsibility.
| DAP | DDP | |
|---|---|---|
| Seller arranges transport to destination | Yes | Yes |
| Seller bears risk to destination | Yes | Yes |
| Seller handles import clearance | No | Yes |
| Seller pays import duties | No | Yes |
| Buyer's role | Import clearance, unloading | Unloading only |
DDP is the maximum seller obligation. The seller handles everything including import customs clearance and duty payment. DAP stops one step short — the seller delivers to the destination but the buyer handles import clearance.
Why does this matter? In many countries, the importer of record must be a local entity. A foreign seller may not be able to act as the importer, making DDP impractical. DAP avoids this issue by keeping import clearance with the buyer.
| DAP | CFR/CIF | |
|---|---|---|
| Seller's delivery point | Named place at destination | On board vessel at origin port |
| Risk transfer | At destination | At origin port |
| Seller arranges destination transport | Yes | No |
| Import clearance | Buyer | Buyer |
DAP gives the buyer much less to manage — they just handle import clearance and unloading. Under CFR/CIF, the buyer also arranges destination port handling and inland transport.
| DAP | DPU | |
|---|---|---|
| Seller delivers ready for unloading | Yes | Yes |
| Seller unloads at destination | No | Yes |
| Risk during unloading | Buyer | Seller |
DPU (formerly DAT in Incoterms 2010) is like DAP except the seller also handles unloading at the destination. DPU is the only Incoterm where the seller's responsibility includes unloading.
DAP works well when:
DAP is less appropriate when:
Under DAP, the seller pays for everything up to the named place. Many sellers price their quotes based on ocean or air freight and forget about destination terminal charges, drayage/trucking to the buyer's location, chassis costs, and other last-mile expenses.
Prevention: Get a complete door-to-destination quote from your freight forwarder before pricing a DAP sale. Include terminal handling, trucking, fuel surcharges, and any destination accessorial charges.
The seller arranges transport to the buyer's door, but the buyer is responsible for import customs clearance. If the buyer's customs entry isn't filed or the clearance is delayed, the goods sit at the port — and the seller may be paying for storage, demurrage, and trucker detention while waiting for the buyer to clear customs.
Prevention: Coordinate with the buyer on customs clearance timing. Ensure the buyer's customs broker is engaged well before the cargo arrives. Include contractual provisions for cost allocation if customs delays are caused by the buyer.
"DAP New York" is too vague. Is that JFK airport? The Port of New York/New Jersey? A warehouse in Brooklyn? The named place needs to be specific enough to determine exactly where delivery occurs and costs end.
Prevention: Always specify a precise address or at minimum a specific facility (e.g., "DAP Buyer's Warehouse, 456 Commerce Rd, Newark, NJ 07114").
Under DAP, the seller delivers goods to the destination, but the buyer pays import duties and taxes. Some buyers assume that because the seller is managing all the logistics, the seller is also covering duties. This creates billing disputes.
Prevention: Make clear in the sales contract that import duties, taxes, and customs clearance fees are the buyer's responsibility under DAP terms.
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DAP (Delivered at Place) is an Incoterm where the seller arranges and pays for all transportation from the origin to a named destination, bearing all risk until the goods arrive ready for unloading. The buyer handles import customs clearance, pays duties and taxes, and unloads the goods.
The seller pays all freight and transportation costs from the origin to the named destination. This includes origin handling, main carriage (ocean, air, etc.), destination port charges, and inland transport to the delivery point. The buyer pays for unloading and import clearance.
Export customs clearance is the seller's responsibility. Import customs clearance is the buyer's responsibility. This is the key difference between DAP and DDP — under DDP, the seller handles both export and import clearance.
Risk transfers when the goods are made available to the buyer on the arriving means of transport, ready for unloading, at the named destination. The seller bears all transit risk — from origin through ocean/air transit through destination inland transport.
Under DAP, the buyer handles import customs clearance and pays duties. Under DDP, the seller handles everything including import clearance and duty payment. DDP gives the buyer maximum convenience but can be impractical in countries where a foreign seller cannot act as the importer of record.
Yes. DAP works with any mode of transport — ocean, air, road, rail, or multimodal. This makes it more versatile than ocean-only Incoterms like CFR, CIF, or FOB.