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Trade termsDAP

Delivered at Place

An Incoterm where the seller delivers goods to a named destination ready for unloading, and the buyer handles import clearance and duties.

What is Delivered at Place?

Delivered at Place (DAP) is an Incoterms 2020 rule, usable for any mode of transport, under which the seller delivers when the goods are placed at the buyer's disposal on the arriving means of transport, ready for unloading, at the named place of destination. The seller bears all risks and costs of getting the goods there, including export clearance and any transit formalities, while the buyer handles unloading, import clearance, duties and taxes. The named place can be a port, terminal, warehouse or the buyer's premises, and the exact point within it should be specified because risk passes there. Unloading costs are for the buyer unless the seller's contract of carriage includes them, in which case the seller pays them. DAP differs from DPU only in unloading, and from DDP only in import clearance and duties.

Why it matters for forwarders

DAP is a common term for door deliveries where the buyer is the importer, so the forwarder working for the seller must deliver to the door but should not pay import duties or taxes unless separately instructed and secured. Disputes typically arise when the buyer's import clearance is slow: storage, demurrage and detention incurred because the buyer has not cleared the goods generally fall to the buyer, but only if the sales contract and transport arrangements make that clear. Quotes should list which destination charges are included, such as terminal handling, delivery and unloading, and any duties or taxes the forwarder advances should be invoiced to the importer of record. Name a precise place, for example a warehouse address and dock, rather than just a city. Where the buyer may be slow to clear, agree in advance who pays storage and how long the seller's agent will wait.

DAP FAQ

What is the difference between DAP and DDP?

Under DAP the buyer clears the goods for import and pays duties and taxes. Under DDP the seller does both, delivering the goods already cleared for import.

Who pays unloading under DAP?

The buyer, unless unloading was part of the seller's contract of carriage. If the seller wants to be responsible for unloading, DPU is the appropriate rule.

When does risk pass under DAP?

Risk passes 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 place of destination. The seller carries the transport risk until then.

Can DAP be used for sea freight?

Yes. DAP is suitable for any mode of transport, including sea and multimodal shipments, as long as the named place of destination is stated precisely.

Sources

  1. Incoterms 2020: DPU or DAP?, ICC Academy
  2. Incoterms 2020: A practical guide to C and D rules, ICC Academy
  3. Incoterms 2020, International Chamber of Commerce

Rules and figures change. Check the current text with the issuing body before relying on it.

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