DAP (Delivered at Place)

DAP (Delivered at Place) is an Incoterms® rule where the seller bears the responsibility and cost of transporting the goods to a named destination. Unlike DDP, the seller is not responsible for clearing the goods for import, nor are they responsible for paying import duties or taxes. Under DAP, the seller delivers the goods ready for unloading, and from that point, the buyer takes over the remaining logistics, including import customs formalities and final unloading.

Responsibilities: Who Does What?

To understand how DAP balances the responsibilities between you and your supplier, refer to this breakdown:

When Should You Use DAP?

DAP is often considered the "sweet spot" for many importers, offering a balance between convenience and control:

• Balanced Convenience: If you want the seller to handle the complexities of international freight, but you prefer to maintain control over the customs clearance process in your own country.
• VAT/Duty Recovery: Since the buyer acts as the Importer of Record, it is much easier to manage your own customs documentation and reclaim import VAT compared to DDP, where the seller handles the paperwork.
• Door-to-Door Efficiency: You avoid the headache of finding your own international freight forwarder and trucking company for the main leg of the journey, as the seller manages this until the arrival point.

Essential Considerations & Warnings

While DAP is generally more convenient than EXW or FCA, it comes with specific risks that every importer should watch for:

• Import Licensing: Because you (the buyer) are responsible for customs clearance, you must ensure you have the correct import licenses or a reliable customs broker ready before the goods arrive. If you cannot clear the goods, the seller will not be responsible for the storage or demurrage charges that stack up at the border.
• Unloading Responsibility: A common misconception is that DAP includes unloading. Under standard Incoterms rules, the seller is only obligated to deliver the goods ready for unloading. The cost and risk of unloading the goods at the destination rest with you.
• Hidden Terminal Fees: While the seller pays for the freight, they may not cover destination terminal handling charges (THC). Clarify in your contract exactly which destination costs are included in the DAP agreement to avoid unexpected "arrival fees" at your port or terminal.