DAP (Delivered at Place) - Incoterm 2020 - Obligations, Risk, Customs Value
D - Arrival
Transport mode
All modes
Valuation group
ddp
Risk transfer
Named place of destination
DAP (Delivered at Place) is an Incoterms® 2020 rule that requires the seller to deliver the goods at the named place of destination, on the arriving means of transport, ready for unloading by the buyer. The seller bears all costs and risks involved in bringing the goods to that destination.
Unlike DPU, the seller is not required to unload the goods from the arriving means of transport. The buyer is responsible for unloading and for all import customs formalities, including payment of import duties and taxes.
DAP is suitable for any mode of transport (sea, air, road, rail, multimodal). It is one of the most commonly used "D" group Incoterms for international trade where the seller wants to deliver goods close to the buyer's premises without taking on the burden of import clearance.
The seller must arrange and pay for export clearance and the main carriage to the named destination. However, the seller has no obligation to clear the goods for import or to pay any import duties - those responsibilities rest with the buyer.
In this Incoterms® rule, delivery and arrival at destination are the same. The risk transfers 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.
When does risk transfer to the buyer under DAP Incoterms 2020?
Under DAP Incoterms 2020, risk transfers 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. Delivery and arrival at destination are the same under this rule. If the buyer fails to take delivery or to arrange import clearance, the buyer bears the risk from that point onward, provided the goods have been clearly identified as the contract goods.
Who is responsible for unloading goods under DAP?
The buyer is responsible for unloading the goods from the arriving means of transport. The seller delivers the goods "ready for unloading" but has no obligation to unload them. If the seller's contract of carriage includes unloading costs, the seller cannot recover those costs separately from the buyer unless otherwise agreed. If the seller should handle unloading, use DPU instead.
Does the seller handle import customs clearance under DAP?
No, the seller has no obligation to clear the goods for import under DAP. The seller must handle export clearance and transit formalities, but all import customs formalities - including licences, security clearances, and pre-shipment inspections - are the buyer's responsibility. The seller must assist the buyer with import-related documents if requested, but at the buyer's risk and cost.
What is the difference between DAP and DDP for import duties?
Under DAP, the buyer handles all import formalities and pays import duties and taxes. Under DDP, the seller assumes full responsibility for import clearance, duties, and taxes. DAP is preferred when the buyer is better positioned to manage import procedures in its own country, while DDP suits situations where the seller can handle import formalities in the destination country.
What is the difference between DAP and DPU Incoterms 2020?
The key difference is unloading responsibility. Under DAP, the seller delivers goods on the arriving transport ready for unloading, and the buyer unloads. Under DPU, the seller must unload the goods at the named destination, bearing risk until unloading is complete. DPU is the only Incoterm requiring the seller to unload. Choose DAP when the buyer can handle unloading; choose DPU when the seller has the capability to unload at destination.
Who pays import duties and taxes under DAP?
The buyer pays all import duties, taxes, and charges under DAP. This includes customs duties, VAT or GST on importation, and any other levies imposed by the country of import. The seller has no obligation regarding import payments. If the parties want the seller to pay import duties, they should use DDP instead.
Can DAP be used for all modes of transport?
Yes, DAP can be used regardless of the mode of transport, including sea, air, road, rail, and multimodal transport. This versatility makes DAP one of the most commonly used Incoterms in international trade. It is the "any mode" equivalent of the former DDU from Incoterms 2000.
What happens if the buyer cannot clear goods through customs under DAP?
If the buyer fails to arrange import clearance, the goods will be held at the port or terminal in the destination country. The buyer bears the risk of any loss or damage during this period, even though delivery has not technically occurred. The seller may also incur additional costs such as demurrage and storage, which it can recover from the buyer. To prevent this, the buyer should obtain all import licences and permits before the goods arrive.
Is insurance mandatory under DAP?
No, neither the seller nor the buyer has a contractual obligation to arrange insurance under DAP. However, since the seller bears all risks until delivery at destination, it is strongly recommended that the seller arrange transport insurance covering the full journey. The buyer should also consider insurance for the post-delivery phase, including during unloading.
Did DAP replace DDU from previous Incoterms versions?
Yes, DAP was introduced in Incoterms 2010 to replace the former DDU (Delivered Duty Unpaid) from Incoterms 2000. Both share the same core concept: the seller delivers at destination without handling import duties. However, DAP provides clearer rules about the exact point of delivery and risk transfer, reducing disputes that were common under DDU.
How does DAP affect customs valuation?
Under DAP, the price includes all transport costs to the named destination but excludes import duties and taxes. For customs valuation purposes (CIF basis in the EU), adjustments may be needed depending on whether the DAP destination is at the border, at a port, or inland. If the destination is inland, deductions for post-importation transport may be required from the declared customs value.
Who arranges main transport under DAP?
The seller must contract or arrange for the carriage of goods to the named place of destination at its own cost. The seller selects the carrier, the route, and the conditions of carriage. If no specific point is agreed within the named destination, the seller may select the point that best suits its purpose. The buyer has no obligation to make a contract of carriage.
What are the seller's obligations under DAP?
The seller must deliver the goods on the arriving transport ready for unloading at the named destination, arrange and pay for export clearance and main carriage, bear all risks until delivery, and provide documents enabling the buyer to take over the goods. The seller must also assist the buyer with import clearance documents if requested, though at the buyer's risk and cost.
Can DAP be used for e-commerce shipments?
Yes, DAP is commonly used for cross-border e-commerce shipments. The seller arranges delivery to the buyer's address while the buyer handles import customs formalities and pays import duties. This is practical for B2B e-commerce where the buyer is experienced with import procedures. For B2C shipments where consumers may struggle with customs, DDP is often more suitable.
How should the DAP destination be specified in a contract?
Specify the destination as precisely as possible, including the full address: "DAP Warehouse 12, Industrial Zone North, 80331 Munich, Germany - Incoterms 2020". A vague destination like "DAP Munich" allows the seller to choose any point in Munich that suits it best. An imprecise destination can lead to disputes about where risk transfers, who bears on-carriage costs, and whether delivery has occurred.
What are the most common DAP mistakes?
The most frequent mistakes include: not specifying the precise destination point, allowing the seller to deliver far from the buyer's premises; the buyer failing to arrange import clearance in time, causing goods to be stuck at the border; confusing DAP with DDP and expecting the seller to handle import duties; and not clarifying unloading cost allocation, which leads to disputes upon arrival.
Common mistakes
1Not specifying the precise destination point, allowing the seller to deliver at a convenient location far from the buyer's actual premises.
2Buyer failing to arrange import clearance in time, resulting in goods stuck at the border with demurrage and storage charges.
3Confusing DAP with DDP - under DAP the buyer must handle import clearance and duties, not the seller.
Seller vs buyer obligations
Obligation
Seller
Buyer
Export formalities
Loading
Main transport
Transport insurance
Unloading
Import formalities
Risk transfer diagram
ICC Explanatory notes
Delivery and transfer of risks
Under DAP, "Delivered at Place" means that the seller delivers the goods - and transfers risk - to the buyer:
when the goods are placed at the disposal of the buyer
on the arriving means of transport ready for unloading
at the named place of destination or
at the agreed point within that place, if any such point is agreed.
The seller bears all risks involved in bringing the goods to the named place of destination or to the agreed point within that place. In this Incoterms® rule, therefore, delivery and arrival at destination are the same.
Example: goods sold "DAP Buyer's Warehouse, Munich, Germany - Incoterms® 2020" means the seller delivers when the loaded truck arrives at the buyer's warehouse in Munich, ready for unloading. Risk transfers at that point.
Applicable mode of transport
DAP can be used regardless of the mode of transport selected, including where more than one mode of transport is employed (multimodal).
This makes DAP a versatile choice for road transport, air freight, rail, sea transport, or any combination. It is the "any mode" equivalent of the older DDU (Delivered Duty Unpaid) from Incoterms® 2000.
Specifying the place of destination precisely
The parties are strongly advised to specify the destination place or point as clearly as possible, for several reasons:
Risk transfer: risk of loss of or damage to the goods transfers to the buyer at that point - both parties should be clear about where this critical transfer happens.
Cost allocation: costs before that place or point are for the seller's account; costs after are for the buyer's account.
Carriage obligation: the seller must contract or arrange for carriage to that agreed place. If it fails to do so, the seller is in breach and will be liable for any ensuing loss (e.g. additional costs levied by the carrier for on-carriage).
Unloading costs: the seller is not required to unload the goods from the arriving means of transport. However, if the seller incurs costs under its contract of carriage related to unloading at destination, the seller is not entitled to recover such costs separately from the buyer unless otherwise agreed.
Export and import clearance
DAP requires the seller to clear the goods for export, where applicable. However, the seller has no obligation to clear the goods for import, for post-delivery transit through third countries, to pay any import duty, or to carry out any import customs formalities.
As a result, if the buyer fails to organise import clearance, the goods will be held up at a port or inland terminal in the destination country. Who bears the risk? The answer is the buyer: delivery will not have occurred yet, ensuring that the risk remains with the buyer until transit to a named inland point can be resumed.
If the parties intend the seller to also handle import clearance and pay import duties, they should consider using DDP instead.
Critical points
Import clearance failure risk
If the buyer fails to clear goods for import, delivery is blocked - but the buyer still bears the risk.
Under DAP, the buyer is responsible for import clearance. If the buyer fails to organise this in time, the goods may be held up at the port of entry or at an inland terminal in the destination country.
During this period, even though delivery has not yet occurred (the goods have not reached the named destination), the risk may effectively shift because the goods were clearly identified and the delay is caused by the buyer's failure to fulfil obligations under B7.
Consequence: the buyer bears the risk of any loss or damage while the goods are stuck awaiting import clearance. The seller may also incur additional costs (demurrage, storage) which it can recover from the buyer.
Recommendation: ensure the buyer has obtained all necessary import licences, permits and authorisations before the goods arrive. Alternatively, use DDP if the seller is better positioned to handle import formalities.
Unloading responsibility ambiguity
The seller delivers on the arriving transport - unloading is the buyer's responsibility, but grey areas exist.
Under DAP, the seller delivers the goods on the arriving means of transport ready for unloading. The seller is not required to unload the goods. However, in practice this can create confusion:
If the seller's contract of carriage includes unloading, the seller cannot recover those costs separately from the buyer (unless otherwise agreed).
If the goods require specialised unloading equipment (crane, forklift) and the buyer is not prepared, delays and additional costs arise.
The precise moment of delivery (and therefore risk transfer) depends on when the goods are "placed at the buyer's disposal" - if the buyer is not present or cannot unload, disputes may arise.
Recommendation: clearly specify in the contract who is responsible for unloading and whether unloading costs are included in the price. If the seller should handle unloading, consider using DPU instead.
Imprecise destination creates disputes
An imprecise destination means the seller can choose the delivery point - potentially far from where the buyer expects.
If the parties do not specify the exact point within the named place of destination, the seller may select the point that best suits its purpose. This can lead to disputes:
The seller may deliver to a port terminal rather than the buyer's inland warehouse.
Additional on-carriage costs from the seller's chosen point to the buyer's actual premises fall on the buyer.
Risk transfers at the seller's chosen point, not where the buyer expected.
Recommendation: always specify the precise delivery address in the contract, for example: "DAP Warehouse 12, Industrial Zone North, 80331 Munich, Germany - Incoterms® 2020".
Detailed seller obligations (A1-A10)
Article A1General obligations
The seller must provide the goods and the commercial invoice in conformity with the contract of sale and any other evidence of conformity that may be required by the contract.
Any document to be provided by the seller may be in paper or electronic form as agreed or, where there is no agreement, as is customary.
Article A2Delivery
The seller must deliver the goods by placing them at the disposal of the buyer on the arriving means of transport ready for unloading at the agreed point, if any, at the named place of destination or by procuring the goods so delivered. In either case the seller must deliver the goods on the agreed date or within the agreed period.
Article A3Transfer of risks
The seller bears all risks of loss of or damage to the goods until they have been delivered in accordance with A2, with the exception of loss or damage in the circumstances described in B3.
Article A4Carriage
The seller must contract or arrange at its own cost for the carriage of the goods to the named place of destination or to the agreed point, if any, at the named place of destination. If a specific point is not agreed or is not determined by practice, the seller may select the point at the named place of destination that best suits its purpose.
The seller must comply with any transport-related security requirements for transport to the destination.
Article A5Insurance
The seller has no obligation to the buyer to make a contract of insurance.
Article A6Delivery / transport document
The seller must provide the buyer, at the seller's cost, with any document required to enable the buyer to take over the goods.
Article A7Export / import clearance
a) Export and transit clearance: where applicable, the seller must carry out and pay for all export and transit clearance formalities required by the country of export and any country of transit (other than the country of import), such as:
export/transit licence;
security clearance for export/transit;
pre-shipment inspection;
any other official authorisation.
b) Assistance with import clearance: where applicable, the seller must assist the buyer, at the buyer's request, risk, and cost, in obtaining any documents and/or information related to all import clearance formalities, including security requirements and pre-shipment inspection, needed by the country of import.
Article A8Checking / packaging / marking
The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) that are necessary for the purpose of delivering the goods in accordance with A2.
The seller must, at its own cost, package the goods, unless it is usual for the particular trade to transport the type of goods sold unpackaged. The seller must package and mark the goods in the manner appropriate for their transport, unless the parties have agreed on specific packaging or marking requirements.
Article A9Allocation of costs
The seller must pay:
a) All costs relating to the goods and their transport until they have been delivered in accordance with A2, other than those payable by the buyer under B9.
b) Any charges for unloading at the place of destination but only if those charges were for the seller's account under the contract of carriage.
c) The cost of providing the delivery/transport document under A6.
d) Where applicable, duties, taxes and any other costs related to export and any transit clearance under A7(a).
e) The buyer for all costs and charges related to providing assistance in obtaining documents and information in accordance with B5 and B7(a).
Article A10Notices
The seller must give the buyer any notice required to enable the buyer to receive the goods.
Detailed buyer obligations (B1-B10)
Article B1General obligations
The buyer must pay the price of the goods as provided in the contract of sale.
Any document to be provided by the buyer may be in paper or electronic form as agreed or, where there is no agreement, as is customary.
Article B2Taking delivery
The buyer must take delivery of the goods when they have been delivered under A2.
Article B3Transfer of risks
The buyer bears all risks of loss of or damage to the goods from the time they have been delivered under A2.
If:
a) the buyer fails to fulfil its obligations in accordance with B7, then it bears all resulting risks of loss of or damage to the goods; or
b) the buyer fails to give notice in accordance with B10, then it bears all risks of loss of or damage to the goods from the agreed date or the end of the agreed period for delivery,
provided that the goods have been clearly identified as the contract goods.
Article B4Carriage
The buyer has no obligation to the seller to make a contract of carriage.
Article B5Insurance
The buyer has no obligation to the seller to make a contract of insurance. However, the buyer must provide the seller, at the seller's request, risk, and cost, with information that the seller needs for obtaining insurance.
Article B6Delivery / transport document
The buyer must accept the document provided under A6.
Article B7Export / import clearance
a) Assistance with export and transit clearance: where applicable, the buyer must assist the seller at the seller's request, risk, and cost in obtaining any documents and/or information related to all export/transit clearance formalities, including security requirements and pre-shipment inspection, needed by the country of export and any country of transit (other than the country of import).
b) Import clearance: where applicable, the buyer must carry out and pay for all formalities required by the country of import, such as:
import licence;
security clearance for import;
pre-shipment inspection;
any other official authorisation.
Article B8Checking / packaging / marking
The buyer has no obligation to the seller.
Article B9Allocation of costs
The buyer must pay:
a) All costs relating to the goods from the time they have been delivered under A2.
b) All costs of unloading necessary to take delivery of the goods from the arriving means of transport at the named place of destination, unless such costs were for the seller's account under the contract of carriage.
c) The seller for all costs and charges related to providing assistance in obtaining documents and information in accordance with A7(b).
d) Where applicable, duties, taxes and any other costs related to import clearance under B7(b).
e) Any additional costs incurred by the seller if the buyer fails to fulfil its obligations in accordance with B7 or to give notice in accordance with B10, provided that the goods have been clearly identified as the contract goods.
Article B10Notices
The buyer must, whenever it is agreed that the buyer is entitled to determine the time within an agreed period and/or the point of taking delivery within the named place of destination, give the seller sufficient notice.
DAP vs DPU comparison
Critère
DAP
DPU
Unloading
Buyer unloads (seller delivers on transport)
Seller unloads at destination
Risk transfer
On arriving transport, ready for unloading
Once goods are unloaded at destination
Seller's obligation level
High - transport to destination, no unloading
Higher - transport + unloading at destination
Import clearance
Buyer
Buyer
Best for
Standard delivery without unloading obligation
When seller can organise unloading at destination
Critère
DAP
DDP
Import clearance
Buyer handles import formalities and duties
Seller handles import formalities and duties
Import duties and taxes
Buyer pays
Seller pays
Seller obligation level
High
Maximum (highest of all 11 Incoterms)
Risk for seller
No import-related risk
Full import risk including duty/tax liability
Best for
When buyer is better positioned for import clearance
When seller can handle import in destination country
Impact on customs value
Incoterm DAP belongs to group DDP. This group determines which adjustments (AK/BA) are applied to the invoiced price to calculate customs value.
Seller controls transport to destination: ideal when the seller can negotiate better freight rates or has established logistics partners.
Buyer handles import clearance: when the buyer is better positioned to handle import formalities in its own country.
Door-to-door delivery without import duties: the seller delivers to the buyer's premises but leaves customs clearance to the buyer.
Any mode of transport: suitable for road, air, sea, rail, or multimodal shipments.
Replacement for former DDU: DAP replaced "Delivered Duty Unpaid" from Incoterms® 2000.
When to avoid DAP
If the seller should handle import clearance: use DDP instead.
If the seller should unload the goods: use DPU instead.
If the buyer wants to control transport: use FCA or CPT instead.
If the buyer cannot ensure timely import clearance: the goods may be stuck at the border, creating storage and demurrage costs.
Recommended contractual clauses
Precise destination: specify the exact address (street, warehouse number, city, country) - not just a city name.
Unloading responsibility: explicitly state whether unloading costs are included or excluded from the DAP price.
Import clearance timeline: require the buyer to obtain import licences and permits before estimated arrival.
Insurance: although neither party has an insurance obligation, clarify who will insure the goods during transport.
Notification: define the notice period the seller must give the buyer before arrival at destination.
Analysis by profile
Advantages
Obligations très limitées, achat clé en main. L'acheteur n'est pas en charge des sujets de logistique liés au transport. Seules les formalités douanières à l'importation sont à sa charge.
Disadvantages
Absence de flexibilité en terme d'organisation et de négociation des coûts pour l'acheteur.
Recommendations
Le post-acheminement étant également à la charge du vendeur, anticiper et coordonner avec ce dernier l'arrivée des marchandises pour la réalisation des formalités douanières à l'importation.
Bien définir le lieu de destination et prévoir la coordination avec le vendeur pour le déchargement.
Assurance transport principal conseillée.
Il est recommandé de solliciter plusieurs devis basés sur des Incoterms différents afin de comparer les coûts.
Important : Transport insurance is recommended for this Incoterm.
Comparative analysis (radar)
DAP
Compare with
Common mistakes
1
Not specifying the precise destination point, allowing the seller to deliver at a convenient location far from the buyer's actual premises.
2
Buyer failing to arrange import clearance in time, resulting in goods stuck at the border with demurrage and storage charges.
3
Confusing DAP with DDP - under DAP the buyer must handle import clearance and duties, not the seller.
4
Not clarifying who bears unloading costs, leading to disputes when the goods arrive at destination.
5
Failing to arrange transport insurance, leaving neither party covered during the main carriage to destination.