DAP: Delivered at Place (Incoterms® 2020)
DAP (Delivered at Place) means the seller carries the cost and risk to the named destination and delivers the goods there on the arriving vehicle, ready for unloading. The buyer unloads, clears import and pays the duties and taxes.
Quick facts
Where risk and costs pass from the seller to the buyer
SellerBuyer
How to write it
DAP + the full destination address + Incoterms 2020, for example: DAP Buyer's warehouse, Plot 5, Industrial Area, Nairobi, Kenya Incoterms 2020.
What the seller does
- Clears the goods for export and arranges transit through third countries.
- Contracts and pays transport to the named destination.
- Carries the risk of loss or damage until the goods arrive there.
- Gives the buyer the documents it needs to take delivery.
What the buyer does
- Unloads the goods at the destination.
- Clears the goods for import and pays duties and taxes.
- Takes the risk once the goods are at its disposal, ready for unloading.
- Pays the extra costs if import clearance is late and delays delivery.
When to use it
DAP suits sellers who want to quote a delivered price while leaving import formalities to the buyer, who knows its own customs. It is common for trucking, courier and door-to-door container deliveries.
Common mistakes
- A vague destination such as a city name, which leads to extra delivery charges and disputes. Give the full address.
- Not agreeing who pays demurrage and storage if the buyer's import clearance is slow.
- The seller forgetting that it carries the transit risk and leaving the goods uninsured.
DAP vs DDP
The only difference is import clearance. Under DDP the seller also clears the goods for import and pays the duties and taxes; under DAP those stay with the buyer.
Seller and buyer obligations, article by article (A1–A10 / B1–B10)
Incoterms 2020 gives each side ten matching articles. Here they are in plain language; the ICC text and your contract decide.
| Seller (A) | Buyer (B) | |
|---|---|---|
| A1/B1 General obligations | Provide the goods and the commercial invoice as the contract requires, plus any other proof of conformity it asks for. Documents may be paper or electronic if agreed or customary. | Pay the price as the contract requires. Documents may be paper or electronic if agreed or customary. |
| A2/B2 Delivery and taking delivery | Deliver by placing the goods at the buyer's disposal on the arriving means of transport, ready for unloading, at the agreed point, if any, at the named place of destination, on the agreed date or within the agreed period. | Take delivery at the named place; unloading is normally the buyer's job. |
| A3/B3 Transfer of risks | Bears all risk until the goods are delivered at the named place, ready for unloading. | Bears all risk from delivery. It also bears the resulting risks if it fails to clear the goods for import, and the risk from the agreed date if it fails to give notice, once the goods are identified. |
| A4/B4 Carriage | Contract or arrange, at its own cost, the carriage to the named place of destination, or to the agreed point there; under Incoterms 2020 it may also use its own transport. | No obligation to the seller. |
| A5/B5 Insurance | No obligation to the buyer to insure. The seller bears the risk until delivery, so it usually insures the transport for itself. | No obligation to the seller. On request, give the seller the information it needs to buy insurance. |
| A6/B6 Delivery or transport document | Provide, at its cost, any document the buyer needs to take over the goods. | Accept that document. |
| A7/B7 Export and import clearance | Carry out and pay for export clearance and the formalities of any transit country before import. Where applicable, help the buyer, at its request, risk and cost, with documents and information for import clearance. | Carry out and pay for import clearance, import licences, duties and taxes. |
| A8/B8 Checking, packaging, marking | Pay for the checks (quality, measuring, weighing, counting) needed to deliver, and pack and mark the goods for the transport, unless the trade customarily ships them unpacked or the parties agreed specific packing. | No obligation to the seller. |
| A9/B9 Allocation of costs | Pay all costs until delivery, the transport to destination, export and transit clearance, and unloading only if its carriage contract includes it. | Pay all costs from delivery, unloading at the named place unless the seller's carriage contract includes it, import duties and taxes, and extra costs if it fails to clear the goods for import or give notice. |
| A10/B10 Notices | Give the buyer any notice it needs to take delivery. | If entitled to decide the time or the point of taking delivery at the named place, give the seller sufficient notice. |
A plain-language summary of Incoterms® 2020 for everyday use. The full rules are published by the International Chamber of Commerce (ICC), and your contract wording decides. Incoterms® is a registered trademark of the ICC.
All 11 Incoterms 2020 rules
Guides on this topic
Common questions
What is the full form and meaning of DAP?
DAP stands for Delivered at Place, one of the 11 Incoterms® 2020 rules. Transport: Any mode. Delivery and risk pass to the buyer: At the named destination, ready for unloading. Main freight paid by: Seller. Insurance: Not required. Export clearance: Seller. Import clearance and duties: Buyer.
Who pays import duties under DAP?
The buyer. Under DAP the seller delivers to the destination, but import clearance, duties and taxes are the buyer's responsibility.
Who unloads the goods under DAP?
The buyer. The seller's delivery is complete when the goods are at the destination ready for unloading. If the seller should unload, use DPU instead.
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