What is DAP? Delivered at Place Explained with Risks and Examples

What is DAP?

DAP is a rule under Incoterms 2020 where the seller delivers goods to a specified destination, ready for unloading. Risk transfers at that point – before unloading begins.

The buyer is responsible for import clearance, duties, taxes, and unloading.

How DAP Works

The seller manages everything up to delivery at the named place. The buyer takes over from arrival.

Seller’s responsibilities under DAP:

Export packaging and documentation
Export customs clearance
All transport to the named destination – inland, ocean or air, and delivery to site
Delivery of goods ready for unloading
Bear all risk during transit

Buyer’s responsibilities under DAP:

Unload goods at the named destination
Handle import customs clearance
Pay import duties, VAT, and taxes
Arrange any onward transport after the named place

Risk transfer point: When goods arrive at the named place, ready for unloading – but before unloading begins.

One important detail: the named place must be specific. “Ho Chi Minh City” is not sufficient. “Buyer’s warehouse at [address]” or “Cat Lai Port, Ho Chi Minh City” gives both parties clear reference points for when risk and cost transfer.

DAP vs DDP vs DPU: Where the Confusion Starts

DAP is often confused with DPU (Delivered at Place Unloaded) and DDP (Delivered Duty Paid).

	DAP	DPU	DDP
Seller arranges transport to destination	yes	yes	yes
Seller unloads at destination	no	yes	no
Seller handles import clearance	no	no	yes
Seller pays import duties & taxes	no	no	yes
Risk transfers	Before unloading	After unloading	Before unloading

DAP vs DPU: the difference is unloading. DPU is the only rule where the seller bears unloading risk.

DAP vs DDP: DDP requires the seller to act as importer, taking on duties and tax obligations.

When DAP Makes Sense

DAP works well when:

The buyer has a reliable customs broker at the destination country
The buyer wants direct control over import duty calculation and payment
The seller wants to offer door-delivery service without taking on import tax liability
The shipment is to a buyer’s own warehouse or named facility
The seller wants to avoid registering as an importer of record in the destination country

When DAP Does NOT Work

DAP is not suitable when:

The buyer has no local customs capability or broker
Import duties are complex, high, or unpredictable at the destination
The named destination is remote or difficult for the seller’s carrier to access precisely

Practical Insights: The Risks That Catch Buyers Off Guard

Customs delays become the buyer’s cost. If import clearance is delayed, storage and demurrage charges apply – and these fall entirely on the buyer.
Unloading is often overlooked. DAP delivers goods ready for unloading – but the buyer must handle equipment and labour. This becomes critical for heavy or project cargo.
Vague destination creates disputes. A general location like “Ho Chi Minh City” creates ambiguity. A precise address or terminal is required to define risk transfer clearly.

DAP in Practice: ASEAN Cross-Border Shipments

For shipments into Viet Nam, DAP is commonly used for machinery, equipment, and project cargo where the seller – often a European or Chinese manufacturer – arranges delivery to the buyer’s factory or project site.

The buyer’s customs broker handles import clearance under Vietnamese regulations.

Decision Insight: When to Choose DAP vs DDP

If your team has customs capability and wants control over import costs, DAP is usually more efficient than DDP.

If not, DDP may reduce operational risk, even if total cost is higher due to supplier pricing.

FAQ

Does DAP include insurance? No. Insurance is not mandatory. The seller bears risk but is not required to insure the goods.
What is the difference between DAP and DDU? DDU (Delivered Duty Unpaid) was the predecessor term under Incoterms 2000. It was replaced by DAP in Incoterms 2010 and remains unchanged in 2020. DAP is the current, valid term – DDU is no longer in use under the current rules.
Can DAP be used for sea freight? Yes. DAP applies to all transport modes.
Who arranges unloading under DAP? The buyer. This is one of the most frequently misunderstood points.