What is DAP?
DAP, short for Delivered at Place, is one of the eleven Incoterms® 2020 rules. The seller arranges and pays for transport to a place named by the buyer, such as a warehouse, and carries the risk until the goods arrive there ready for unloading. The buyer is responsible for import customs clearance, duty and import taxes, and for unloading.
DAP is one of the most common Incoterms for shipments into a fulfilment centre. It gives the buyer door delivery while keeping customs and VAT in the buyer’s own hands.
Core principle: The seller pays to get the goods there; the buyer pays to bring them into the country.
Who does what under DAP
| Task | Seller | Buyer |
|---|---|---|
| Export clearance | ✓ | |
| Main transport to the named place | ✓ | |
| Import clearance | ✓ | |
| Customs duty and import VAT | ✓ | |
| Unloading | ✓ | |
| Risk passes | When the goods arrive at the named place, ready for unloading | |
Why buyers choose DAP
1. Control of customs and VAT
The buyer, or its customs broker, declares the goods, so it can check classification and value and reclaim the import VAT under its own VAT number.
Why it matters: This avoids paying VAT in a supplier’s name that you can’t recover.
2. Simple logistics
The supplier still organises transport to the door, so the buyer doesn’t need its own freight forwarder.
Why it matters: Useful for brands without in-house logistics staff.
3. Clear risk point
Risk passes at the destination, so damage in transit is the seller’s problem.
Watch out for: DAP doesn’t require insurance, so check the seller’s transport insurance.
What to watch out for
- Name the place precisely, for example the full warehouse address, not just a city or port. Costs after that point are the buyer’s.
- Agree who pays terminal and port charges at the destination, which often cause disputes.
- Have your import set-up ready, including an EU EORI number and a customs representative, before the goods arrive. Otherwise they wait at the border and storage charges add up.
- Customs warehousing or transit: if goods move under T1 transit to an inland customs office, make sure the declaration ends where your broker can clear them.
DAP vs DDP vs DPU
All three deliver to a named place. Under DAP the buyer clears import and unloads. Under DDP the seller also clears import and pays duty and taxes. Under DPU (Delivered at Place Unloaded) the seller also unloads, but the buyer still clears import.
Example: A Korean haircare brand’s EU company buys DAP Waredock warehouse, Netherlands. The supplier pays sea freight and delivery to the warehouse. The brand’s customs broker clears the goods using the brand’s NL EORI number, and the import VAT is reported under the brand’s Dutch VAT number with an Article 23 licence, so no VAT is paid at the border.
For the bigger picture, read Selling in the EU from outside the EU: VAT, EORI and stock.
Frequently asked questions
Who pays duty under DAP?
The buyer, together with import VAT and any other import charges.
Who unloads under DAP?
The buyer. If the seller should unload, use DPU instead.
Is DAP the same as DDU?
Broadly, yes. DDU (Delivered Duty Unpaid) was removed from the Incoterms in 2010 and replaced by DAP.
Does DAP include insurance?
No. Neither party is obliged to insure under DAP, although the seller carries the risk until delivery and usually insures the goods.
