CHENGYU SHIP · INCOTERMS® 2020 GUIDE

DAP INCOTERMS® 2020
DELIVERED AT PLACE

A practical guide to DAP shipping — including seller and buyer responsibilities, risk transfer, import clearance, unloading, DAP vs DDP and DPU, and shipping from China.

ANY MODEDELIVERY TO DESTINATIONBUYER IMPORT CLEARANCEREADY FOR UNLOADING
SEE DAP RESPONSIBILITIES
DAP MEANSDELIVERED
AT PLACE
SELLER BRINGS GOODS TO DESTINATION
BUYER HANDLES IMPORT CLEARANCE
QUICK ANSWER

WHAT DOES
DAP MEAN?

Under DAP (Delivered at Place), the seller delivers when the goods are placed at the buyer's disposal on the arriving means of transport, ready for unloading, at the named place of destination.

The seller bears the cost and risk of bringing the goods to that named destination. The buyer handles import clearance, import duties and taxes, and normally the unloading operation.

DAP CAN BE USED FOR ANY MODE OF TRANSPORTIt can be used for sea, air, road, rail, courier or multimodal shipments. The named destination should be stated as precisely as possible.
01

SELLER DELIVERS TO DESTINATION

The seller arranges transport and carries the risk until the goods reach the named place.

02

GOODS ARE READY FOR UNLOADING

Delivery occurs while the goods remain on the arriving means of transport, ready to be unloaded.

03

BUYER HANDLES IMPORT

The buyer is responsible for import customs clearance and applicable import duties and taxes.

RESPONSIBILITY SPLIT

WHO DOES WHAT
UNDER DAP?

DAP places most transportation responsibility on the seller, but keeps import clearance and import taxes with the buyer.

SELLER

UP TO THE NAMED DESTINATION

  • Provide goods according to the sales contract
  • Arrange transport to the named destination
  • Complete export clearance
  • Bear transport costs to the named place
  • Bear risk until DAP delivery occurs
  • Provide transport documents as required
  • Place goods at buyer's disposal ready for unloading
BUYER

IMPORT & UNLOADING

  • Take delivery at the named destination
  • Complete import customs clearance
  • Pay applicable import duties and taxes
  • Obtain import licences / approvals where required
  • Arrange and bear unloading cost unless included in transport contract
  • Bear risk after DAP delivery occurs
  • Coordinate access to the final delivery location
RISK TRANSFER

WHERE DOES
DAP RISK TRANSFER?

Unlike CPT or CIP, DAP is an arrival rule. Delivery and risk transfer occur at the named destination when the goods are ready for unloading.

SELLER RISKOriginPickup + export
→
SELLER RISKMain TransportSea / air / road
→
SELLER RISKDestination ArrivalBefore unloading
→
RISK TRANSFERDAP NAMED PLACEReady for unloading
→
BUYER RISKUnloading + ImportBuyer side
NAME THE DESTINATION PRECISELY.

Because the seller carries risk all the way to the DAP delivery point, vague wording such as “DAP USA” can create uncertainty over exactly where delivery is completed.

COST ALLOCATION

WHO PAYS
UNDER DAP?

COST / TASKSELLERBUYER
Goods & export packagingYES—
Origin pickup / inland transportYES—
Export customs clearanceYES—
Main international freightYES—
Import customs clearance—YES
Import duties & taxes—YES
Unloading at destinationNormally noYES
Cargo insuranceNot required by DAPNot required by DAP
SHIPPING FROM CHINA

HOW DOES DAP
FROM CHINA WORK?

A DAP shipment from China can give the buyer a delivered transportation solution while leaving import entry, duties and taxes under the buyer's control.

01SUPPLIER PREPARES CARGO

Goods are packed and cargo details are confirmed.

02SELLER / FORWARDER PICKS UP

Origin transport is arranged from the supplier or warehouse.

03EXPORT CLEARANCE

China export formalities are completed.

04INTERNATIONAL TRANSPORT

Sea, air or multimodal freight moves toward destination.

05BUYER HANDLES IMPORT

Buyer completes import clearance and pays applicable duties and taxes.

06DELIVERY TO NAMED PLACE

Seller bears risk until goods arrive ready for unloading.

MOST COMMON COMPARISON

DAP VS DDP:
WHAT'S THE DIFFERENCE?

Both rules can deliver goods to a named destination. The major difference is who handles import clearance, duties and taxes.

DAP

BUYER HANDLES IMPORT

Seller transports the goods to the named destination and bears risk to that point.

IMPORT CLEARANCEBUYERIMPORT DUTIES & TAXESBUYER
DDP

SELLER HANDLES IMPORT

Seller takes responsibility for transport plus import clearance and applicable duties and taxes.

IMPORT CLEARANCESELLERIMPORT DUTIES & TAXESSELLER
DDP IS NOT ALWAYS PRACTICAL.

Local importer-registration, tax, licensing or customs requirements may prevent a foreign seller from performing DDP obligations. DAP can be a practical alternative when the buyer is able and willing to handle import clearance.

READ OUR DDP SHIPPING GUIDE →
UNLOADING RESPONSIBILITY

DAP VS DPU

DAP and DPU both deliver at destination, but they differ at the unloading stage.

DAPREADY FOR UNLOADING

Seller delivers on the arriving means of transport. Buyer normally unloads.

DPUDELIVERED AFTER UNLOADING

Seller bears the cost and risk of unloading at the named destination.

QUICK COMPARISON

DAP VS EXW,
FOB & DDP

EXWBUYER CONTROLS FROM PICKUP

Buyer takes most logistics responsibility from the named origin point.

FOBBUYER CONTROLS MAIN OCEAN FREIGHT

Seller delivers on board the vessel; buyer manages the main carriage.

DDPSELLER HANDLES IMPORT TOO

Seller takes the highest level of responsibility to the named destination.

PRACTICAL DECISION

WHEN DOES DAP
MAKE SENSE?

DAP MAY FIT WHEN:
  • You want the seller or forwarder to manage transport to destination
  • You want to keep control of import clearance
  • You can act as importer or work with your own customs broker
  • You prefer to pay duties and taxes directly
  • You need delivery to a warehouse, business address or agreed terminal
CONSIDER ANOTHER TERM WHEN:
  • You want the seller to handle import duties and taxes — consider DDP
  • You want the seller to unload at destination — consider DPU
  • You want more control from origin — consider EXW / FCA / FOB depending on mode
  • You only need seller-paid main carriage — consider CPT / CIP / CFR / CIF as appropriate
CONTRACT WORDING

HOW SHOULD DAP
BE WRITTEN?

State the named destination and, where possible, the exact delivery point. A full delivery address can reduce ambiguity for door-to-door shipments.

RECOMMENDED FORMATDAP [Full Delivery Address], California, USAIncoterms® 2020
TERM + PRECISE NAMED DESTINATION + INCOTERMS® 2020
SIMPLE EXAMPLE

DAP CHINA TO USA
IN PRACTICE

ORIGINShenzhen, China
INCOTERMDAP Los Angeles Warehouse
DESTINATIONLos Angeles, USA

The seller or its forwarder arranges pickup in China, export clearance and international transportation to the named Los Angeles delivery point.

The U.S. buyer handles import customs clearance and pays applicable duties and taxes. Delivery under DAP occurs when the goods arrive at the named place on the transport vehicle ready for unloading.

RISK TRANSFERS AT THE NAMED DAP DESTINATION BEFORE UNLOADING.
SHIPPING DOCUMENTS

DOCUMENTS OFTEN
SEEN IN DAP SHIPPING

Exact documentation depends on cargo, mode, destination and customs requirements.

01Commercial Invoice
02Packing List
03Bill of Lading / Air Waybill
04Export Customs Documents
05Import Entry Information
06Special Cargo Documents
LEARN ABOUT SHIPPING DOCUMENTS →
COMMON QUESTIONS

DAP INCOTERMS
FAQ

What does DAP mean in shipping?+

DAP means Delivered at Place. The seller delivers when the goods are placed at the buyer's disposal on the arriving means of transport, ready for unloading, at the named destination.

Who pays import duties under DAP?+

The buyer is responsible for import clearance and applicable import duties and taxes under DAP.

Who unloads under DAP?+

The buyer normally bears the unloading responsibility under DAP. If the parties want the seller to bear unloading risk and cost, DPU may be more appropriate.

When does risk transfer under DAP?+

Risk transfers at the named destination when the goods are placed at the buyer's disposal on the arriving means of transport ready for unloading.

Can DAP be used for air freight?+

Yes. DAP can be used regardless of transport mode and can also be used for multimodal shipments.

What is the main difference between DAP and DDP?+

Under DAP, the buyer handles import clearance and import duties and taxes. Under DDP, those obligations are placed on the seller.

Does DAP include insurance?+

DAP does not require either party to obtain cargo insurance under the Incoterms® rule, although the seller bears risk until the named destination.

NEED DAP SHIPPING FROM CHINA?

SEND YOUR ROUTE TO
CHENGYU SHIP.

Send us your supplier location, cargo details, named destination and cargo-ready date. We can review sea, air and door-to-door transportation options.

GET A FREE QUOTE
01Supplier Location
02Cargo Details
03DAP Destination
04Cargo Ready Date
IMPORTANT NOTE

This page is a general educational summary and is not the official ICC Incoterms® 2020 text or legal advice. The named destination, sales contract, customs requirements and actual transportation arrangement matter. Refer to the official ICC rules when incorporating DAP into a contract.

WANT DELIVERY TO DESTINATION
WITHOUT DDP?

ASK ABOUT
DAP SHIPPING.

ChengYu Ship can coordinate freight from China to the USA or Canada, including pickup, main transportation and final delivery options.

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