DAP (Delivered at Place)

DAP (Delivered at Place) is one of the ICC Incoterms 2020 trade terms. Under DAP, the seller bears all costs and risks associated with delivering the goods to the named destination - including export clearance, international freight (by any mode), and all inland transport within the destination country - and risk transfers to the buyer only when the goods arrive at the named place, ready for unloading.

What is DAP?

DAP replaced the older Incoterms DAF, DES, and DDU from earlier editions and is now the standard term when a procuring entity wants the supplier to deliver goods all the way to a named location within the destination country - a project site, a central warehouse, or a named city. Unlike cif, which ends the seller's responsibility at the destination seaport, DAP requires the seller to handle and pay for all transport from factory to final delivery point, including inland freight within the destination country. The buyer's only responsibility under DAP is to unload the goods at the named destination and to handle import customs clearance and duties.

In development-bank procurement, schedule-of-requirements documents for goods delivered to inland project sites - a dam under construction, a hospital being built in a remote region, agricultural machinery for farmers in landlocked countries - often specify DAP delivery so that the supplier, not the procuring entity, manages the complexity of inland logistics in an unfamiliar country.

Why DAP matters for bidders

Quoting DAP requires the supplier to understand and price the full logistics chain to the named destination: ocean or air freight, port handling, customs clearance facilitation, inland transport, and any fuel surcharges or port congestion premiums applicable at the time of delivery. Suppliers who have not previously shipped to a particular country should obtain freight quotes and customs duty assessments before finalizing their DAP unit price, rather than applying a rough estimate. In landlocked countries or those with high inland transport costs, freight from the nearest seaport to the named destination site can represent 15 to 30 percent of the goods value, making it material to competitiveness and profitability.

FAQ

Does DAP include import duties?

No. Import duties, taxes, and customs clearance costs in the destination country are the buyer's responsibility under DAP. If the seller is required to pay duties as well, the applicable Incoterm is DDP (Delivered Duty Paid), which places the maximum obligation on the seller.

Can the named place under DAP be anywhere?

Yes. The named place can be any agreed location: a seaport, an inland depot, a project construction site, or the buyer's premises. The more specific the named place, the clearer the cost allocation. Bidders should confirm the exact delivery coordinates or address before pricing.

What is the difference between DAP and DPU?

Under DPU (Delivered at Place Unloaded), the seller also unloads the goods at the named destination. Under DAP, the seller delivers the goods ready for unloading but the buyer performs the unloading. DPU is appropriate when the seller has unloading equipment or expertise that the buyer lacks.