DAP vs DDP: under both rules the seller delivers to your named place, but under DAP the buyer clears the goods for import and pays the duty; under DDP the seller does both as importer of record.
What does Delivered at Place (DAP) mean?
Delivered at Place (DAP) is an Incoterms 2020 rule: the seller carries all cost and risk until the goods reach a named destination, ready for unloading. Delivery happens on the arriving vehicle; the buyer unloads, clears the goods for import and pays the duties and taxes. It works for any mode of transport, and it is the usual way to buy a delivered-to-door price while staying importer of record yourself.
Who does what under DAP
| Obligation | Seller | Buyer |
|---|---|---|
| Export clearance, origin charges and main carriage | Yes | — |
| Risk of loss or damage in transit | Until the goods are at the named place, ready for unloading | From that point |
| Cargo insurance | Not required by the rule, but the seller carries the risk so usually insures its own interest | Not required |
| Unloading at destination | — | Yes |
| Importer Security Filing | Its forwarder may file as agent | Normally the ISF Importer, as purchaser or consignee |
| Import clearance, duties and taxes | — | Yes, as importer of record |
DAP, DPU and DDP
The three D rules all deliver at destination and differ only in the last steps. Under DAP the buyer unloads; under DPU (Delivered at Place Unloaded, the rule that replaced DAT in Incoterms 2020) the seller unloads; under DDP the seller also clears the import and pays the duty. That makes DAP the delivered term a foreign seller can offer without becoming importer of record in the buyer's country, which for the United States needs a customs bond and a US presence or agent. Compare the three in the Incoterms explainer.
What "named place" needs to say
DAP is only as precise as the place written after it. "DAP Chicago" leaves open whether the seller's obligation ends at the rail ramp, a container yard or your warehouse, and every mile in between costs money. Write the full address, and agree in the contract who books the unloading equipment. A 40ft container that needs a dock and a forklift is not "ready for unloading" in the same sense as a pallet on a liftgate truck. If the seller cannot deliver because you have not cleared the goods for import in time, the risk and the storage or demurrage that follow are yours, not the seller's.
DAP for a US importer
- You are the importer of record. Duty is calculated on the customs value, which under 19 CFR 152.102(f) excludes the international freight the seller bundled into the DAP price, so ask the seller to itemize it on the invoice so the deduction can be supported at entry. Estimate the duty stack, including Section 301, Section 232 and IEEPA layers, in the tariff simulator
- As purchaser or consignee you are normally the ISF Importer under 19 CFR 149.1, even though the seller's forwarder controls the booking; make sure someone files it 24 hours before lading, and that the liquidated damages ($5,000 per violation) do not land on you for a filing you never saw
- The seller contracts the carriage, so the bill of lading comes from its carrier or forwarder and cargo release at the port can depend on the seller and its agent
- Because the seller has priced the whole move, you cannot see what the freight cost or benchmark it; on volume lanes a FOB price plus your own ocean contract is usually easier to audit
Receiving DAP cargo with Airlift
If your supplier ships DAP to your US door, Airlift can act for you on the US side. We coordinate the entry through our licensed customs-broker network (customs clearance), file the ISF where the seller's forwarder has not, and follow up with the terminal if release stalls. Would rather control the move yourself? Ask us to quote the same shipment FOB or FCA, or check the ocean leg in rate search, so the two prices can be compared. Neither party is obliged to insure under DAP, so cargo insurance for your interest after delivery is your own decision.
Related terms
Get a quote for your shipment
Dealing with Delivered at Place (DAP) on a real shipment? Send the origin, destination and cargo, and we reply with a rate and the services it includes.
Not sure how this applies to your cargo?
Book a call with an Airlift specialist and ask about your shipment.