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DAP Incoterm: Definition & Responsibilities

Comprehensive guide to understanding Delivered At Place (DAP) Incoterm: roles, responsibilities, and risk transfer between buyers and sellers.

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Based on Latest Incoterms® 2020 Rules
Updated for Trade Practices
Real Case Studies Included
modern minimalist infographic showing DAP Incoterm

Transport

Seller arranges & pays for delivery

Insurance

Not provided by seller

Risk Transfer

At delivery (named place)

What is the DAP Incoterm? ( Definition)

DAP means the seller delivers the goods to the named destination, ready for unloading. The risk transfers to the buyer at delivery.

DAP (Delivered At Place) is an international trade term where the seller arranges and pays for transportation to a specified destination. The goods are delivered ready for unloading, while the buyer is responsible for import clearance, unloading and any subsequent local charges.

Seller's Cost & Risk (Until Delivery) Risk Transfers at Delivery Buyer's Cost & Risk (After Delivery)
Seller's Responsibility Zone Costs Covered
Step 1

Export Preparation

  • • Packaging
  • • Documentation
  • • Export Clearance
Step 2

Pre-Carriage

  • • Loading at Origin
  • • Inland Transport
  • • To Main Carrier
Risk Transfer at Delivery

Main Carriage

  • • International Transport
  • • To Named Destination
Buyer's Zone Cost & Risk After Delivery

Import Clearance

  • • Customs & Duties
  • • Import Documentation
  • • Local Taxes

Unloading & Local Transport

  • • Unloading at Destination (if not agreed otherwise, unloading is at buyer’s expense)
  • • Transport from Delivery Point
  • • Final Delivery

Seller Pays For

  • Export clearance & documentation
  • Packaging, loading & pre-carriage
  • Main carriage to delivery point (risk transfers on delivery)

Buyer Pays For

  • Import clearance, duties & taxes
  • Unloading & local transport
  • Additional insurance (optional)

Want to learn more?

Compare DAP with other Incoterms to understand the key differences

DAP vs CIF Comparison

DAP Incoterm: Seller vs. Buyer Responsibilities

Understanding your obligations under DAP (Delivered At Place) terms

Seller's Key Obligations

Arrange and pay for transport until delivery at the named destination (excluding unloading).

Buyer's Key Obligations

Handle import clearance, unloading, local transport and assume risks once goods are delivered.

Responsibility Seller Buyer
Export Packing & Marking

Proper packing for export transport

Export Documentation

Required export documents

Main Carriage

Transport to delivery point

Insurance Coverage (Optional)

Buyer arranges own insurance

Optional Extra
Import Clearance

Customs duties and taxes

Destination Handling

Unloading and delivery

Additional Costs

Extra fees and charges

What Happens if the Goods Are Damaged During Transport?

Important information about risk transfer and liability

Risk Transfer Point

Under DAP, risk transfers to the buyer upon delivery at the named destination.

Insurance Protection

Under DAP, the seller’s responsibility ends at delivery; any damage incurred during transport after delivery is generally the buyer’s risk unless otherwise agreed.

Claim Process

The buyer should file claims with their insurance provider. The seller may assist if previously agreed, but is typically not involved under DAP terms.

Required Documentation

  • Bill of Lading
  • Damage Report

Time Limitations

  • Report damage within 3 days (may vary depending on carrier and policy)
  • File claim within 30 days (subject to insurer's conditions)
Compare Incoterms

DAP vs CIF, FOB, DDP & EXW: Key Differences

Responsibility

DAP

CIF

FOB

DDP

EXW

Main Transport
Seller delivers at destination
Seller to port of destination
Buyer from port of loading
Seller to final destination
Buyer arranges pickup at origin
Insurance
Not provided
Seller (Marine only)
Buyer arranges insurance
Seller (optional)
Buyer responsible
Risk Transfer
Upon delivery
At loading port
At loading port
Upon delivery to buyer
Immediately upon pickup
Export Clearance
Seller
Seller
Seller
Seller
Buyer*
Import Clearance
Buyer
Buyer
Buyer
Seller
Buyer
Duties & Taxes
Buyer
Buyer
Buyer
Seller
Buyer
Typical Usage
Ideal for shipments where the seller covers transport up to delivery (excluding unloading)
Common for sea freight with marine insurance
Buyer-controlled shipping & insurance
Seller manages door-to-door delivery including customs clearance
Buyer assumes responsibilities from unloading onward

When and why should you choose DAP over CIF, FOB, DDP or EXW?

What is the key difference between DAP and CIF?

Under DAP, the seller delivers the goods to the named destination ready for unloading, while CIF covers delivery to the port of arrival with mandatory insurance.

When should I choose DAP instead of DDP?

Choose DAP when the seller is responsible for delivering the goods to a named destination, leaving import clearance and unloading to the buyer. DDP requires the seller to manage the entire process.

What benefits does DAP offer for multimodal transport?

DAP is ideal for multimodal shipments as the seller covers transport costs up to delivery, while the buyer handles local operations such as unloading and customs clearance.

How are customs responsibilities allocated under DAP?

The seller manages export clearance and transport until delivery at the named place. The buyer is responsible for import clearance and associated duties once the goods arrive.

What additional insurance options are available under DAP?

Under DAP, the seller is not required to provide insurance. Buyers should consider securing additional coverage for risks during transit and upon delivery.

What are common pitfalls when using DAP terms?

Common pitfalls include misidentifying the delivery point and not arranging adequate insurance or planning for import clearance and unloading.

What documentation is required for a DAP shipment?

Typical documentation under DAP includes the commercial invoice, packing list, export license (if applicable), and the bill of lading or airway bill.

How can disputes regarding DAP terms be resolved?

Disputes under DAP terms are usually resolved through negotiation, with mediation or arbitration available as specified in the contract.