DAP — Delivered at Place

DAP stands for Delivered at Place — one of the 11 Incoterms 2020 rules published by the International Chamber of Commerce (ICC). Under DAP, the seller is responsible for delivering the goods to a named destination, covering all export formalities, international freight and transit costs. Risk passes from seller to buyer when the goods arrive at the named place, ready for unloading. The buyer then handles import customs clearance and pays any import duties, VAT or local taxes.

Under DAP, the buyer handles and pays for all import customs clearance at the destination country. The seller handles export customs clearance in the country of origin. This is a critical distinction: if your buyer does not have a customs broker or is unfamiliar with import procedures, DAP can cause delays or failed deliveries. For buyers who cannot easily handle customs, consider switching to DDP (Delivered Duty Paid), where the seller handles and pays import customs on the buyer's behalf.

The key difference is who pays import duties. Under DAP, the buyer pays all import customs duties, VAT and taxes — the goods arrive at the buyer's destination but they receive a customs duty notice before or on delivery. Under DDP (Delivered Duty Paid), the seller pays all import duties and taxes and delivers to the buyer with no customs charges. DDP gives buyers a fixed, fully-landed price but requires the seller to have a customs broker or VAT registration in the destination country. For B2C e-commerce, DDP avoids surprise charges and reduces returns. For B2B, DAP is standard when the buyer has their own customs broker.

Both DAP and CPT require the seller to arrange and pay for international freight, but risk transfer happens at different points. Under CPT (Carriage Paid To), risk transfers to the buyer when the seller hands the goods to the first carrier — so the buyer bears transit risk even though the seller is paying for freight. Under DAP, the seller bears risk all the way until the goods arrive at the named destination, ready for unloading. For the buyer, DAP offers better protection: the seller is responsible if anything is lost or damaged in transit. For the seller, CPT limits liability once goods are handed over.

Yes, DAP effectively replaced DDU from Incoterms 2010. DDU was used in Incoterms 2000 and described the same concept — seller delivers to destination without paying import duties. The term was renamed and clarified as DAP in Incoterms 2010 and retained in Incoterms 2020. If you see DDU in an older contract, it means the same as DAP under current Incoterms rules.

The buyer pays all import customs duties, VAT, and taxes under DAP. The seller delivers the goods to the destination country but the buyer must clear customs and pay whatever duties apply in their country. For EU imports, the buyer pays the applicable national VAT rate. For UK imports post-Brexit, the buyer pays 20% UK VAT and any applicable customs duty. For US imports, the buyer pays applicable federal and state taxes. This is sometimes informally called 'delivered duty unpaid'.

No. Under DAP, the seller delivers goods ready for unloading at the named destination but is not responsible for the unloading itself. The buyer arranges and pays for unloading at the named place. If the seller also needs to cover unloading costs, use DPU (Delivered at Place Unloaded) instead. For most courier and parcel shipments, 'unloading' is handled by the courier driver and this distinction is rarely relevant — it matters most for large freight and container shipments.

Yes. Most courier services (DHL, UPS, FedEx, DPD, GLS) operate on DAP terms by default for international shipments. The shipper (seller) pays the courier to deliver to the destination country, but the recipient (buyer) receives a customs duty notice and must pay local taxes before or on final delivery. Some couriers offer a DDP upgrade option where duty charges are pre-paid by the shipper at booking — this is sold as 'Duty Paid' or 'DDP' on checkout.

If the buyer fails to clear customs or refuses to pay import duties, the goods may be held at the port of entry, generating storage charges the buyer must pay. Eventually, goods may be abandoned or returned to the seller at the buyer's expense. This is a significant risk for B2C sellers shipping to countries with high duties or complex import regimes (Brazil, India, Russia). Under DAP, the seller has no obligation to assist with customs clearance — it is entirely the buyer's responsibility. If the buyer is inexperienced with customs, DDP is a safer Incoterm.

Yes. DAP applies to all modes of transport — air freight, sea freight (FCL and LCL), road freight and rail. This is one of the advantages of the Incoterms 2020 'rules for any mode of transport' which include DAP, DDP, DPU, FCA, CPT and CIP. By contrast, FOB, CFR, CIF and FAS are restricted to sea and inland waterway transport only. For parcel courier shipments, DAP is the de facto default regardless of whether the courier uses air or road linehaul.

Example: A Portuguese manufacturer sells machinery to a German buyer. The seller books DHL freight, handles Portuguese export customs, and pays for transport to the buyer's Hamburg warehouse. When the truck arrives at the Hamburg warehouse with the machinery ready for unloading, risk transfers to the German buyer. The German buyer pays for unloading and handles German import formalities (in this case, EU intra-market movement — no import duties within the EU). For a non-EU example: a Portuguese winery exports Port Wine to a US importer on DAP terms. The seller pays for export and freight to New York. The US importer pays US customs duty, federal and state alcohol taxes, and takes delivery at their New York warehouse.

Under DAP, the seller bears transport risk all the way to the named destination. If goods are lost or damaged in transit, the seller is responsible — not the buyer. This means the seller should take out cargo insurance covering the full transit, even though DAP does not require it (unlike CIP which mandates insurance). The seller also bears risk if the buyer is not available to take delivery at the named place. Additionally, if the buyer refuses to clear customs or pay duties, the seller may face difficulty recovering or returning the goods.

DAP was introduced in Incoterms 2010 (replacing DDU) and was retained unchanged in Incoterms 2020. In the 2020 edition, the ICC added a note clarifying that parties should specify the exact named place as precisely as possible — 'Delivered at Place, Lisbon Port, Portugal' rather than simply 'Lisbon'. The 2020 edition also updated the insurance provisions (in CIP) but DAP itself did not require insurance. The fundamental obligation — seller delivers to named place, buyer handles import customs — is identical in both editions.

DAP stands for Delivered at Place. It is one of the 11 standardised trade terms (Incoterms 2020) published by the International Chamber of Commerce (ICC). The full description is 'Delivered at Place [named place of destination]' — for example, 'DAP Hamburg Warehouse, Buyer's Premises' or 'DAP Los Angeles Port'. The named place must always be specified in the contract to make the term legally precise.

Insurance is not mandatory under DAP — neither the seller nor the buyer is contractually required to insure the goods. However, since the seller bears all transit risk under DAP, it is strongly in the seller's interest to take out cargo insurance covering the full journey to the named destination. If goods are lost or damaged and there is no insurance, the seller absorbs the loss. For high-value shipments, sellers typically use Institute Cargo Clauses (A) or All Risk cargo insurance through a freight insurance broker or through Cargosender's insurance add-on.