Incoterms® 2020 · Any mode of transport
DAP (Delivered at Place) under Incoterms® 2020
Under DAP the seller bears all risks and costs of bringing the goods to the named destination and delivers when the goods, on the arriving means of transport and ready for unloading, are placed at the buyer's disposal. The buyer unloads, clears the goods for import and pays duties.
- Risk transfer
- Risk passes to the buyer when the goods, on the arriving means of transport and ready for unloading, are placed at the buyer's disposal at the named place of destination.
- Cost transfer
- The seller pays all costs to the named destination, including export and transit clearance; the buyer pays unloading (unless included in the contract of carriage), import clearance and duties.
- Mode of transport
- Any mode of transport
- Insurance
- Not required, agreed between the parties
Who does what along the delivery chain
- 1Loading at seller's premisesSeller
- 2Export clearanceSeller
- 3Transport to port/terminal of departureSeller
- 4Loading onto main carriageSeller
- 5Main carriageSeller
- 6Cargo insuranceNot required / negotiable
- 7Unloading at destinationBuyer
- 8Import clearanceBuyer
- 9Import duties & taxesBuyer
- 10Delivery to final destinationSeller
Seller's obligations
- Provide the goods, a commercial invoice and suitable packaging.
- Carry out and pay for export and transit clearance.
- Contract for carriage, or use its own transport, to the named destination.
- Bear all risks until the goods are ready for unloading at destination.
- Provide documents enabling the buyer to take delivery.
- Notify the buyer so it can prepare to receive the goods.
Buyer's obligations
- Pay the price.
- Unload the goods from the arriving vehicle, unless unloading is included in the seller's contract of carriage.
- Carry out and pay for import clearance, import duties and import VAT.
- Bear risks and costs caused by delayed import clearance, such as demurrage.
- Provide evidence of having taken delivery.
- Decide whether to insure after delivery.
Use it when
- The buyer wants delivery to its warehouse but clears imports itself.
- Cross-border trucking to Cambodia, Laos or China.
- The seller has a transport and agent network in the buyer's country.
- Replacing DDP when the seller cannot act as importer in the buyer's country.
Avoid it when
- The seller cannot control costs and risks in the buyer's country.
- The buyer cannot clear imports promptly.
- The seller must unload at destination, where DPU fits better.
Common mistakes
- No precise address, for example just "DAP Hanoi".
- Not agreeing who bears demurrage and storage if the buyer is slow to clear.
- Not agreeing who unloads at the buyer's warehouse.
- The seller does not insure even though it carries the risk for the whole journey.
Practice in Vietnam
In Vietnam, DAP is typically used when an overseas supplier delivers to the warehouse of an FDI company or to an ICD, while the Vietnamese company clears imports and pays taxes itself, for example "DAP Company B Warehouse, Que Vo Industrial Park, Bac Ninh". DAP is also common for road shipments to Cambodia and Laos. When importing on DAP, customs value is still calculated up to the first port of import, so inland transport after the border can be deducted if separately documented. When exporting on DAP, the Vietnamese seller carries the risk for the whole journey and should insure.
Worked example
A consumer goods company in Ho Chi Minh City exports to Cambodia on "DAP Company C Warehouse, Phnom Penh, Cambodia, Incoterms® 2020". The seller clears export customs at the Moc Bai border gate, hires a truck to the buyer's warehouse and bears all risks on the road. When the truck arrives, the buyer unloads, clears import customs and pays Cambodian duties.
Frequently asked questions
How does DAP differ from DDP?
Under DAP the buyer clears imports and pays duties. Under DDP the seller handles import clearance and pays duties as well.
Who unloads under DAP?
The buyer, unless unloading costs are included in the seller's contract of carriage.
Who pays if goods are stuck at the port because the buyer is slow to clear?
The buyer bears the risks and additional costs if it fails to clear the goods for import in time.
Incoterms® is a registered trademark of the International Chamber of Commerce (ICC). This content is for general guidance and does not replace legal or banking advice for a specific transaction.
Incoterms® 2020 responsibility matrix
| Rule | Loading at seller's premises | Export clearance | Transport to port/terminal of departure | Loading onto main carriage | Main carriage | Cargo insurance | Unloading at destination | Import clearance | Import duties & taxes | Delivery to final destination |
|---|---|---|---|---|---|---|---|---|---|---|
| EXW | B | B | B | B | B | – | B | B | B | B |
| FCA | S | S | S | B | B | – | B | B | B | B |
| FAS | S | S | S | B | B | – | B | B | B | B |
| FOB | S | S | S | S | B | – | B | B | B | B |
| CFR | S | S | S | S | S | – | B | B | B | B |
| CIF | S | S | S | S | S | S* | B | B | B | B |
| CPT | S | S | S | S | S | – | B | B | B | B |
| CIP | S | S | S | S | S | S* | B | B | B | B |
| DAP | S | S | S | S | S | – | B | B | B | S |
| DPU | S | S | S | S | S | – | S | B | B | S |
| DDP | S | S | S | S | S | – | B | S | S | S |
- S Seller
- B Buyer
- S* Seller obligation (insurance)
- – Not required / negotiable
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