DAP Incoterms: Delivered at Place, Explained With a Worked Example
DAP, Delivered at Place, is one of only three rules where the seller carries risk through the main journey. The seller delivers the goods to a named place, ready for unloading, and bears risk until that point.
What DAP requires
The seller arranges and pays for all carriage to the named place. The seller clears the goods for export. Risk stays with the seller for the entire journey.
Two things the seller does not do. It does not unload, and it does not clear the goods for import. Both belong to the buyer, along with duty and any import tax.
A worked example
A German manufacturer sells machinery to a Dubai buyer on DAP, buyer's warehouse in Dubai Investments Park, Incoterms 2020.
The seller arranges road freight to Hamburg, ocean carriage to Jebel Ali, customs formalities on the export side, and the final road leg to the warehouse. It bears the risk throughout. If the container is damaged at sea, that is the seller's loss.
The truck arrives at the buyer's warehouse. At that moment delivery is complete and risk passes. The buyer unloads the machinery, and the buyer is responsible for having cleared it through UAE customs and paid any duty.
If the buyer has not arranged import clearance and the container sits at the port incurring demurrage, that cost falls on the buyer, not the seller.
DAP compared with DPU
The only difference is unloading. Under DPU the seller must unload the goods at the named place. Under DAP the seller delivers ready for unloading and the buyer unloads.
That distinction matters most where specialist equipment is needed. If a crane is required to lift machinery off a truck, DAP puts the responsibility and cost of that crane on the buyer.
DAP compared with DDP
Under DDP the seller also handles import clearance and pays duty and tax. Under DAP the buyer does. DAP is usually the better choice for cross border sales because the buyer, as a local entity, can clear and recover import tax where a foreign seller often cannot.
Common mistakes
Assuming the seller unloads. It does not under DAP. Say DPU if you want unloading included.
Naming a city rather than an address. DAP Dubai leaves the delivery point open. Name the full address.
Buyers not preparing for import clearance. The seller has done everything else, which can create a false sense that customs is handled too. It is not.
Where this rule sits
DAP is the middle of the three delivered rules. DPU adds unloading, DDP adds import clearance and duty. Choosing between them is really a question of who is better placed to handle those last two steps.
For the full set, see our guide to all 11 Incoterms 2020 rules, or work through how to choose the right rule for a given shipment. Our Mastering Incoterms 2020 course covers every rule with worked examples from Gulf trade lanes.
Frequently asked questions
What does DAP mean in Incoterms?
Delivered at Place. The seller delivers the goods to a named place ready for unloading and carries risk until that point. The buyer unloads and handles import clearance.
Who unloads the goods under DAP?
The buyer. If you want the seller to unload, use DPU instead, which is the only rule that requires the seller to unload.
Who pays import duty under DAP?
The buyer. The seller handles export clearance and carriage but import clearance, duty and tax belong to the buyer.
What is the difference between DAP and DDP?
Under DDP the seller also clears the goods for import and pays duty and tax. Under DAP the buyer does. DAP is usually safer for a seller with no local tax registration.
