DAP

What Is DAP (Delivered at Place) in Incoterms® 2020?

DAP (Delivered at Place) is a key trade term defined by the Incoterms® 2020 rules, published by the International Chamber of Commerce (ICC). Under DAP, the seller bears most of the transportation responsibilities and risks, ensuring the goods are delivered and ready for unloading at a pre-agreed place in the destination country. However, the buyer handles import clearance and all subsequent costs and liabilities after arrival.

Seller’s Responsibilities

• Export Clearance: Complete and pay for all export customs procedures.
• Packaging: Ensure goods are packed suitably for international transport, according to contract terms.
• Main Carriage (Transport): Arrange and pay for the main transportation to the named place of destination.
• Insurance (Optional): Insurance is not mandatory, but the seller may choose to arrange insurance for the portion of the transport under their responsibility.
• Documentation: Provide all transport documents (e.g., CMR, bill of lading, waybill) required for the buyer to receive the goods.
• Notification: Notify the buyer when the goods have arrived at the agreed delivery place and are ready for unloading.
• Risk: Bear all risks until the goods are delivered at the named destination and ready for unloading.

Buyer’s Responsibilities

• Import Clearance: Handle and pay for all import customs formalities, including duties, taxes, and any required licenses.
• Unloading: Arrange and pay for unloading the goods at the named place of destination.
• Onward Transport: Manage and fund further transport from the place of delivery to the final site, if needed.
• Insurance Claims: Handle insurance coverage and claims for risks arising after delivery.
• Payment: Fulfil contractual payment obligations for the goods.
• Risk: Assume all risks of loss or damage after the goods are made available for unloading at the named place.

DAP Responsibilities Table

Key Notes

• Balance of responsibility: DAP provides a practical balance, with the seller managing international delivery and the buyer handling import.
• Unloading not included: The seller does not bear the risk or cost of unloading at destination.
• Customs complexities: Buyers must be able to efficiently handle local import procedures.

Incoterms 2020: Core Points Comparison Table

Term	Applicable Mode of Transport	Point of Risk Transfer	Seller's Responsibility	Buyer's Responsibility
EXW	Any mode	Upon delivery at seller’s premises	Only makes goods available; not responsible for transportation, clearance, or insurance	Responsible for all transportation, clearance, insurance costs, and risks
FCA	Any mode	Upon delivery to the carrier	Handles export clearance, delivers goods to carrier	Arranges transportation, pays all subsequent charges, assumes risk
CPT	Any mode	Upon delivery to the first carrier	Pays carriage to named destination, handles export clearance	Responsible for unloading at destination, import clearance, insurance costs, and risks
CIP	Any mode	Upon delivery to the first carrier	Pays carriage and insurance to named destination, handles export clearance	Responsible for unloading at destination, import clearance, assumes remaining risks
DAP	Any mode	Upon delivery at destination (not unloaded)	Bears costs and risks to the named destination, not responsible for unloading	Responsible for unloading, import clearance, and all related costs and risks
DPU	Any mode	After unloading at destination	Bears costs and risks for transportation and unloading at destination	Responsible for import clearance costs and risks
DDP	Any mode	Upon delivery at destination (duty paid)	Bears all costs (including import duties and taxes) and risks	Only needs to receive the goods
FOB	Sea / Inland waterway	When goods are loaded on board the vessel	Handles export clearance, pays loading charges	Arranges main carriage, pays freight and insurance, assumes risk post-loading
CFR	Sea / Inland waterway	When goods are loaded on board the vessel	Pays carriage to port of destination, handles export clearance	Handles insurance, import clearance, assumes risk after loading
CIF	Sea / Inland waterway	When goods are loaded on board the vessel	Pays carriage and insurance to destination port, handles export clearance	Responsible for import clearance, assumes risk after loading

Source: ICC Incoterms® 2020 – DAP Rule