DAP Incoterms 2020: Delivered at Place Explained

DAP Incoterms 2020: Delivered at Place Explained Verified & Reviewed · Last updated September 2026 DAP Incoterms, or Delivered at Place, defines how shipping costs, risks, and responsibilities are divided between sellers and buyers under Incoterms® 2020.Under DAP, the seller arranges delivery to the named destination, while the buyer handles import customs clearance, duties, taxes, and unloading. DAP Responsibilities Costs & Risk Transfer DAP vs DDP Experienced China-based logistics specialists 10,000+ international shipments handled Global sea, air & DDP shipping solutions 24/7 shipment tracking & customer support Table of Contents What Does DAP Mean in Incoterms? DAP means Delivered at Place. Under DAP Incoterms 2020, the seller must arrange transportation to the destination specified in the sales contract. The delivery location should be clearly defined, such as a warehouse address, airport, terminal, or another agreed place.The seller is responsible for:Export packagingExport customs clearanceTransportation arrangementsDelivery to the agreed destinationThe buyer is responsible for:Import customs clearanceImport duties and taxesUnloading the goods after arrivalThe key point of DAP is that the seller delivers the goods to the agreed location, but the seller is not responsible for unloading or import clearance.The goods are considered delivered when they arrive at the named destination and are placed at the buyer’s disposal, ready for unloading. DAP Incoterms 2020 Responsibilities at a Glance The following table shows the main responsibility split under DAP. ResponsibilitySellerBuyer Export packaging✓ Export documentation✓ Export customs clearance✓ Pickup from supplier✓ International transportation✓ Delivery to named destination✓ Import customs clearance✓ Import duties and taxes✓ Unloading at destination✓ DAP creates a clear division between international transportation and destination import procedures.The seller manages the shipment until delivery, while the buyer takes responsibility for local import requirements. Seller Responsibilities Under DAP Under DAP, the seller handles most transportation-related responsibilities before the goods reach the destination. Export Clearance and Shipping Documents The seller normally prepares export-related documents and completes export customs procedures.Common documents include:Commercial invoicePacking listExport declarationOther export documents required by regulationsThe seller must ensure the goods are properly prepared for international transportation. Transportation to the Named Destination The seller arranges transportation from the origin location to the agreed destination.This may include:Factory pickupFreight bookingInternational transportationTransit arrangementsDelivery coordinationFor example, if the contract states: DAP Buyer’s Warehouse, Germany, Incoterms® 2020the seller is responsible for arranging transportation until the goods reach that warehouse. Risk Before Delivery Under DAP, the seller bears the transportation risk until the goods arrive at the agreed destination and are ready for unloading.The seller is not normally responsible for unloading after arrival. Buyer Responsibilities Under DAP The buyer’s responsibilities begin when the goods arrive at the named destination. Import Customs Clearance The buyer handles import customs procedures in the destination country.This includes:Import declarationCustoms documentationImport permits when requiredCommunication with local customs authoritiesThe buyer should ensure they have the ability to legally import the goods before selecting DAP. Import Duties and Taxes Under DAP, the buyer normally pays:Import dutiesVAT or GSTCustoms-related taxesDestination import chargesThis is one of the biggest differences between DAP and DDP.Under DDP, the seller normally takes responsibility for import clearance and duties. Under DAP, these responsibilities remain with the buyer. Unloading at Destination DAP means the goods are delivered ready for unloading. It does not mean the seller unloads the cargo.The buyer normally arranges:LaborEquipmentLocal unloading costsFor heavy cargo or special equipment, unloading arrangements should be confirmed before shipment. DAP Costs: Who Pays What? One common question about DAP Incoterms is which party pays each shipping cost. CostSellerBuyer Export packaging✓ Pickup from supplier✓ Export customs clearance✓ International freight✓ Delivery to named destination✓ Cargo insuranceOptionalOptional Import customs clearance✓ Import duty✓ VAT / import tax✓ Unloading✓ DAP does not require either party to purchase cargo insurance.For valuable shipments, buyers and sellers may separately arrange cargo insurance to protect against possible loss or damage during transportation. When Does Risk Transfer Under DAP? Risk transfer is an important part of understanding DAP.Under DAP, the seller carries the transportation risk until the goods reach the agreed destination.The risk transfers to the buyer when:The goods arrive at the named placeThe goods are available to the buyerThe goods are ready for unloadingFor example, if cargo is shipped under:DAP Customer Warehouse, Germany, Incoterms® 2020the seller manages transportation until the shipment reaches the warehouse.Once the cargo arrives and is ready for unloading, the buyer becomes responsible for the goods and unloading process.This is why the delivery location should always be clearly written in the sales contract. DAP Customs Clearance and Import Requirements DAP separates export and import responsibilities.The seller normally handles export customs clearance in the origin country. The buyer normally handles import customs clearance in the destination country.DAP may work well for buyers who:Already have a customs brokerUnderstand local import requirementsPrefer to control duty paymentsHave experience importing goodsHowever, DAP may not be suitable if the buyer cannot complete import procedures or does not have the required import qualifications.For buyers who want the seller to manage customs clearance and import taxes, DDP shipping may be a better option. Real DAP Shipping Case: Wooden Baby Milestone Cards to Germany The following quotation is from a real customer shipment of wooden baby milestone cards shipped from Shenzhen, China to 71063 Sindelfingen, Germany.This shipment was handled under DAP Incoterms 2020.The seller arranged transportation to the named destination, while the consignee remained responsible for import customs clearance, duties, and taxes after arrival. The China-side subtotal was USD 1,196, with an additional EUR 455 destination delivery fee. The estimated transit time was around 4 days, subject to final warehouse receipt and actual chargeable weight.This real shipment shows how DAP works in practice. The transportation was arranged to the buyer’s destination, while import clearance and destination taxes remained the buyer’s responsibility. DAP vs DDP vs DPU DAP, DDP, and DPU all involve delivery to a destination, but their responsibilities are different. IncotermImport ClearanceImport DutiesUnloading DAPBuyerBuyerBuyer DDPSellerSellerBuyer DPUBuyerBuyerSeller DAP vs DDP The main difference between DAP and DDP is import responsibility.Under DAP:Buyer handles import clearanceBuyer pays import duties and taxesUnder DDP:Seller handles import clearanceSeller pays import duties and taxesRead our detailed guide on DAP vs DDP Incoterms for a full comparison. DAP vs DPU The main difference is unloading responsibility.Under DAP, the seller delivers the goods ready for unloading.Under DPU, the seller is responsible for unloading the goods at the destination. How to Write DAP in a Sales Contract DAP should always include a specific named destination.The recommended format is: DAP [Named Place of Destination], Incoterms® 2020Example: DAP Customer Warehouse, Berlin, Germany, Incoterms® 2020Avoid unclear terms such as:DAP GermanyDAP EuropeDAP BerlinA precise delivery point helps both parties understand where the seller’s transportation responsibility ends. Frequently Asked Questions What does DAP mean in Incoterms? DAP means Delivered at Place. The seller arranges transportation to the agreed destination, while the buyer handles import clearance and duties. Who pays import duty under DAP? The buyer normally pays import duties, VAT, and other destination taxes under DAP. Who handles customs clearance under DAP? The seller handles export customs clearance, while the buyer handles import customs clearance. Does DAP include unloading? No. Under DAP, the goods are delivered ready for unloading. The buyer normally handles unloading. What is the difference between DAP and DDP? DAP requires the buyer to handle import clearance and duties. DDP requires the seller to handle these responsibilities. Related Guide Incoterms® Shipping From China Guide Incoterms Incoterms® 2020 · Trade Terms Guide Incoterms® 2020: Complete Guide to the 11 International Trade Terms Incot... Read guide → Related Guide DDP Shipping from China DDP shipping from China includes customs clearance, import duties, and final delivery. It is a convenient door to door service with clear and pre... Read guide → Related Guide DDP vs DDU vs DAP: Key Differences Explained (2025 Guide) International shipping can be confusing, especially when it comes to trade terms like DDP, DDU, and DAP. These Incoterms define who is responsibl... 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