DAP Explained: Delivered at Place Guide
DAP (Delivered at Place) is an Incoterms 2020 delivery term where the seller delivers goods to the named destination, ready for unloading. The seller handles transport and risks, but import customs duties and taxes are the buyer's responsibility.
What Is DAP?
DAP (Delivered at Place) is an Incoterms 2020 delivery term where the seller delivers goods to the named destination, ready for unloading from the arriving vehicle. The seller bears all transport costs and risks until the goods reach the buyer. However, import customs clearance and payment of duties/taxes remain the buyer's responsibility.
DAP can be thought of as DDP without customs duties. The seller handles everything except import formalities. This makes it practical when the seller doesn't have customs registration in the destination country.
DAP Responsibility Split
| Task | Seller | Buyer |
|---|---|---|
| Export customs | Yes | |
| Transport to destination | Yes | |
| Insurance (recommended) | Yes | |
| Import customs | Yes | |
| Duties and taxes | Yes | |
| Unloading | Yes |
When to Use DAP
- Seller can organize transport but has no customs registration abroad
- Buyer wants to handle customs through their own broker
- Buyer benefits from special customs regimes (inward processing, temporary import)
- DDP is too complex or risky for the seller
DAP Advantages
- Buyer convenience: Transport is handled by seller, only customs remains
- Seller flexibility: No destination-country tax registration needed
- Works for all modes: Road, sea, air, rail, and multimodal
- Standard service model: Kolay Parsiyel's typical service offering
Frequently Asked Questions
What is the difference between DAP and DDP?
DAP: buyer handles import customs and pays duties. DDP: seller handles everything including customs and duties. DAP is DDP minus import formalities.
Is unloading included in DAP?
No. Under DAP, the seller delivers goods on the vehicle, ready for unloading. The buyer is responsible for unloading. For unloading included, use DPU.
Is insurance mandatory under DAP?
Not required by Incoterms, but strongly recommended since the seller bears risk until destination.
Is DAP used in LTL shipping?
Yes, DAP is the most common term for LTL (partial cargo) shipping. Kolay Parsiyel offers both DAP and DDP options.
References
- ICC Incoterms 2020
- UNCTAD Trade Terms Guide
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