Comprehensive guide to understanding Delivered At Place (DAP) Incoterm: roles, responsibilities, and risk transfer between buyers and sellers.
Seller arranges & pays for delivery
Not provided by seller
At delivery (named place)
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.
Compare DAP with other Incoterms to understand the key differences
Understanding your obligations under DAP (Delivered At Place) terms
Arrange and pay for transport until delivery at the named destination (excluding unloading).
Handle import clearance, unloading, local transport and assume risks once goods are delivered.
| Responsibility | Seller | Buyer |
|---|---|---|
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Export Packing & Marking
Proper packing for export transport Seller must properly pack and mark the goods for safe export. |
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Export Documentation
Required export documents All documentation required for export, such as invoices, packing list, and export licenses. |
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Main Carriage
Transport to delivery point Seller arranges and pays for international transport until delivery at the named destination. |
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Insurance Coverage (Optional)
Buyer arranges own insurance Under DAP, the seller is not responsible for providing insurance. It is up to the buyer to secure additional coverage if desired. |
Optional Extra | |
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Import Clearance
Customs duties and taxes All import duties, taxes, and customs clearance procedures at destination. |
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Destination Handling
Unloading and delivery All costs related to unloading and final delivery at destination. |
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Additional Costs
Extra fees and charges Any additional costs, charges, or fees at destination. |
Important information about risk transfer and liability
Under DAP, risk transfers to the buyer upon delivery at the named destination.
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.
The buyer should file claims with their insurance provider. The seller may assist if previously agreed, but is typically not involved under DAP terms.
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.
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.
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.
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.
Under DAP, the seller is not required to provide insurance. Buyers should consider securing additional coverage for risks during transit and upon delivery.
Common pitfalls include misidentifying the delivery point and not arranging adequate insurance or planning for import clearance and unloading.
Typical documentation under DAP includes the commercial invoice, packing list, export license (if applicable), and the bill of lading or airway bill.
Disputes under DAP terms are usually resolved through negotiation, with mediation or arbitration available as specified in the contract.