DAP (Delivered at Place)

DAP (Delivered at Place) is an Incoterms rule that places maximum transport responsibility on the seller: the seller arranges and bears all costs and risks of moving the goods from origin to the agreed destination point, handing responsibility to the buyer only when the goods arrive ready for unloading at the named place.

What is DAP (Delivered at Place)?

Under DAP, the seller selects and pays for the carrier, manages export clearance and all transit risks, and delivers the goods to the named destination -- whether a port, inland terminal, buyer's warehouse, or project site -- where they are made available for unloading. Risk transfers from seller to buyer at the moment the goods are ready for unloading at that destination, which is the latest risk-transfer point among the common Incoterms for both sea and multimodal shipments. The buyer is responsible for import customs clearance and duties at the destination country (if DAP is used rather than DDP); the seller is not responsible for unloading unless the named place requires it.

DAP applies to any mode of transport and any named destination, making it more flexible than cif-cost-insurance-freight, which is restricted to sea and inland waterway. In development-bank and international competitive bidding procurement documents, DAP is increasingly specified as the delivery basis for equipment and goods contracts, particularly where the named destination is the project site rather than a port, because it aligns risk with the party best placed to manage transport: the seller. Procurement documents will specify the exact named place, and bidders must quote to that place without substituting a more favourable term.

Why DAP matters for bidders

For sellers, DAP demands accurate freight quotation to the named place, which may be inland and remote from major ports, as all transport costs and risks to that point are the seller's. Sellers quoting DAP to a project site in a landlocked country must account for port discharge, customs transit, inland freight, and last-mile logistics, not just ocean freight. For buyers and procurement officers, DAP is simpler to evaluate than CIF because prices are fully comparable on an as-delivered basis without adjusting for freight assumptions. Bid prices under DAP can be compared directly, unlike CIF bids, where inland delivery costs vary by buyer location and must be normalised to allow fair comparison. Suppliers should confirm the named destination precisely and flag any access constraints that may affect their logistics cost at clarification stage.

FAQ

What is the difference between DAP and DDP?

Under DAP, the buyer is responsible for import clearance and duties at the destination. Under DDP (Delivered Duty Paid), the seller also handles import clearance and pays all duties. DDP places the maximum obligation on the seller; DAP stops short of import responsibility.

Can DAP be used for sea freight?

Yes. Unlike CIF, which applies only to sea and inland waterway, DAP applies to any mode of transport, including sea, air, road, and rail, and to any named destination regardless of whether it is a port or an inland location.

Why do development-bank tenders sometimes specify DAP instead of CIF?

DAP aligns risk with the seller throughout transit, which is simpler and more buyer-protective than CIF, where the seller pays freight but risk transfers at loading. For project sites where inland delivery is the primary logistics challenge, DAP named destination ensures the seller is accountable for the full journey.