What is DAP?
DAP · Delivered At Place
The seller bears cost and risk all the way to the named destination, ready for unloading. Import clearance and duties remain the buyer’s responsibility.
Key points
- Risk stays with the seller all the way to the named place.
- Import duties and clearance remain the buyer's.
- Unloading is the buyer's — use DPU if the seller is to unload.
At a glance
| Who pays carriage | Seller |
|---|---|
| Risk transfers | At the named destination |
| Import clearance | Buyer |
| Duties and taxes | Buyer |
| Unloading | Buyer |
| Best for | Door deliveries and overland trade |
How far the seller goes
Under DAP — Delivered At Place — the seller carries both cost and risk to the named destination and places the goods at the buyer’s disposal ready for unloading. Unlike FOB, CFR and CIF, risk does not transfer at origin: a cargo lost in transit is still the seller’s problem.
The named place can be a port, a terminal, a warehouse or the buyer’s own premises. DAP is therefore the rule most often used where delivery is genuinely to a door rather than to a port.
What stays with the buyer
Import clearance, duties and taxes remain the buyer’s responsibility. That is the line between DAP and DDP, where the seller takes those on as well.
Unloading at the destination is also the buyer’s. If the seller is to unload, the contract needs to say so — or DPU, Delivered at Place Unloaded, is the correct rule.
When to use it
DAP suits inland deliveries, cross-border truck and rail movements, and any trade where the buyer wants a single delivered price without taking transit risk.
It is less common in bulk seaborne trade, where CFR and CIF dominate, because bulk cargoes are almost always sold to a port rather than to a place.
Frequently asked questions
- What is the difference between DAP and DDP?
- Import duties and clearance. Under DAP the buyer handles them; under DDP the seller does. DDP places the maximum obligation on the seller of any Incoterms rule.
- Who unloads the goods under DAP?
- The buyer. The seller delivers ready for unloading at the named place. If the seller is to unload, use DPU instead.
- Does the seller carry risk during transit under DAP?
- Yes. Unlike FOB, CFR and CIF, risk stays with the seller until the goods reach the named destination and are placed at the buyer’s disposal.
Related terms
The seller pays for carriage to the named destination port, but risk transfers to the buyer when the goods are loaded at origin. The seller does not insure the cargo — that gap between cost and risk is the difference buyers most often miss.
As CFR, but the seller also buys marine insurance for the voyage. Risk still transfers on loading at origin; the buyer simply has a policy to claim against. Standard minimum cover is Institute Cargo Clauses (C) unless the contract says otherwise.
The buyer collects from the seller’s premises and handles everything thereafter, including export clearance. Rare in cross-border commodity trade because the buyer carries obligations it usually cannot discharge in the seller’s country.
The seller delivers the goods on board the vessel at the named load port and clears them for export. Risk and cost transfer to the buyer once the cargo is loaded, so the buyer arranges and pays for ocean freight and insurance.
Trading this, or trying to price it?
CommoFlow sources, buys, sells and ships physical commodities from the Middle East, Central Asia, the Caucasus, Africa and Australia. If a contract term is deciding your economics, our desk deals with it daily.
Contact our desk