DAP (Delivered At Place)
An Incoterm where the seller delivers goods to a specified location, bearing all risks until arrival.
Definition
Under DAP, the seller is responsible for delivery to the agreed location and assumes all transport risks until goods are ready for unloading.
Overview of DAP (Delivered At Place)
DAP (Delivered At Place) is an Incoterms 2020 trade term under which the seller is responsible for all costs and risks of delivering the goods to a named place in the destination country — but without clearing customs or paying import duties. The named place is typically the buyer's premises, a warehouse, a distribution center, or a port/terminal in the destination country. Under DAP, the seller arranges and pays for international freight, origin export clearance, and all transit risks. The risk of loss or damage transfers from seller to buyer at the point when the goods are "made available" to the buyer at the named destination — on the arriving conveyance, ready for unloading by the buyer. The key distinction between DAP and DDP (Delivered Duty Paid) is import customs clearance: under DAP, the buyer is responsible for import customs clearance, duty payment, and any local taxes. The seller delivers to the destination country's border (or buyer's door) but the buyer must take care of customs formalities and cost. This is the critical commercial risk for buyers using DAP — they assume the cost and risk of import compliance, including any unexpected duties, CBP holds, or exam charges that arise. Under DAP, the seller also does not arrange unloading at destination — the buyer provides unloading equipment and labor, and the seller's delivery obligation is complete when the goods arrive on the vehicle at the named place. On WareMatch, DAP terms are relevant to companies sourcing international goods that will be received directly at their 3PL or warehouse location. When a shipper designates a WareMatch-listed warehouse as the DAP delivery point, the warehouse receives the goods after the buyer has arranged import clearance. The warehouse operator needs to coordinate receiving appointments, ensure the facility's FIRMS code is active if bonded transfers are involved, and be prepared to receive the carrier vehicle once import release is granted. For 3PLs serving importers on DAP terms, understanding the division of responsibility at the DAP delivery point — particularly that the buyer bears import duty and risk from the time the vehicle arrives — is essential to accurate client service agreements.
Role
An Incoterm where the seller delivers goods to a specified location, bearing all risks until arrival.
Focus
DAP (Delivered At Place) is an Incoterms 2020 trade term under which the seller is responsible for all costs and risks of delivering the goods to a named place in the destination country — but without clearing customs or paying import duties. The named place is typically the buyer's premises, a warehouse, a distribution center, or a port/terminal in the destination country. Under DAP, the seller arranges and pays for international freight, origin export clearance, and all transit risks. The risk of loss or damage transfers from seller to buyer at the point when the goods are "made available" to the buyer at the named destination — on the arriving conveyance, ready for unloading by the buyer. The key distinction between DAP and DDP (Delivered Duty Paid) is import customs clearance: under DAP, the buyer is responsible for import customs clearance, duty payment, and any local taxes. The seller delivers to the destination country's border (or buyer's door) but the buyer must take care of customs formalities and cost. This is the critical commercial risk for buyers using DAP — they assume the cost and risk of import compliance, including any unexpected duties, CBP holds, or exam charges that arise. Under DAP, the seller also does not arrange unloading at destination — the buyer provides unloading equipment and labor, and the seller's delivery obligation is complete when the goods arrive on the vehicle at the named place. On WareMatch, DAP terms are relevant to companies sourcing international goods that will be received directly at their 3PL or warehouse location. When a shipper designates a WareMatch-listed warehouse as the DAP delivery point, the warehouse receives the goods after the buyer has arranged import clearance. The warehouse operator needs to coordinate receiving appointments, ensure the facility's FIRMS code is active if bonded transfers are involved, and be prepared to receive the carrier vehicle once import release is granted. For 3PLs serving importers on DAP terms, understanding the division of responsibility at the DAP delivery point — particularly that the buyer bears import duty and risk from the time the vehicle arrives — is essential to accurate client service agreements.
Example
See the definition above for context.
Benefits
- Simplifies the seller's responsibility by excluding import duty payment and customs clearance from their scope
- Allows the buyer to use their own customs broker and take advantage of trade agreement preferences or duty deferral strategies
- Reduces seller's cost and compliance exposure in unfamiliar destination markets
- Clearly defines risk transfer at the named destination place, preventing disputes about loss during transit
- Buyer's import broker controls the timing and method of clearance, optimizing for their duty and cash flow strategy
- Widely understood, standardized Incoterms 2020 term with clear contractual meaning in international trade documents
FAQs
Q: What is the practical difference between DAP and DDU (Delivered Duty Unpaid)?
A: DDU was the predecessor Incoterms term to DAP under the Incoterms 2000 version. Incoterms 2010 replaced DDU with DAP, which is functionally nearly identical — the seller delivers to the named destination excluding import duties and clearance. DDU is no longer an official Incoterms term as of 2010, though it still appears in older contracts. If a counterparty offers DDU terms, clarify whether they mean DAP under Incoterms 2020.
Q: Under DAP, who arranges the final delivery from the port to the buyer's warehouse?
A: The seller does. Under DAP, the seller is responsible for all transport costs and risks from origin through to the named place in the destination country — this includes inland freight from the destination port to the buyer's premises if the named place is the buyer's door. The seller is only released from risk when the goods arrive at the named destination on the arriving vehicle, ready for unloading. The buyer then unloads.
Q: If goods are delayed at customs under DAP, who bears the cost?
A: The buyer, because the buyer is responsible for import clearance under DAP. If CBP places a hold on the shipment, or if the buyer's customs broker is slow to file entry, resulting demurrage and terminal storage charges are the buyer's responsibility. This is a significant practical difference from DDP, where the seller handles clearance and bears exam costs.
Q: When should a buyer negotiate for DDP rather than accepting DAP?
A: When the seller has established import procedures, duty accounts, and customs brokers in the destination country — typically large exporters who regularly sell into a market — DDP eliminates the buyer's customs complexity entirely. For buyers without experienced import operations, DDP shifts the compliance risk and cost to the party better equipped to manage it. However, DDP requires the seller to hold import licenses and be registered as an importer in the destination country, which not all sellers are willing to do.