DAP Incoterms 2020 – what does the Delivered at Place rule mean?

In international trade, precisely defining the terms of delivery is of great importance for the security and transparency of transactions.

This is why Incoterms 2020 rules, which clearly define the obligations of the seller and buyer in the transport process, are so widely used. One of the Incoterms rules is DAP (Delivered at Place), used in road, sea, air and rail transport.

However, before we move on to the obligations of the parties, it is worth starting with the basics and explaining exactly what DAP means in practice.

What is DAP Incoterms? – a practical definition

DAP (Delivered at Place) is a delivery rule in which the seller delivers the buyer’s goods to a designated destination. The risk passes to the buyer when the cargo is at their disposal and ready for unloading.

In practice, this means that the seller organises and finances transport to the agreed point, e.g. a warehouse, terminal or port, but is not responsible for unloading or import clearance.

The seller delivers the goods to the place previously agreed by both parties in the contract. The buyer takes control only when the goods arrive at their destination and from that moment on is responsible for further actions.

Obligations and transfer of risk in DAP Incoterms 2020

In the DAP rule, the obligations of the seller and the buyer are clearly divided. The transfer of risk takes place when the goods are at the buyer’s disposal at the agreed point, i.e. when they arrive at their destination.

This means that the seller is responsible for organising the entire transport process to the designated place, but does not participate in import clearance or unloading.

The buyer takes control of the cargo when the arriving means of transport reaches the designated place. From that moment on, all matters related to the further transport and delivery of the goods, as well as the risk of damage to the goods, are transferred to the buyer.

Seller’s obligations in DAP

The seller is responsible for delivering the goods to the designated destination and bears the costs of transport to that point.

The seller’s obligations in DAP include:

concluding a contract with the carrier and organising transport by the appropriate means of transport,
ensuring that the goods are prepared for transport and properly secured,
providing the buyer with a commercial invoice and transport documents in paper or electronic form,
bearing the costs of transport to the agreed destination.

The seller is not obliged to unload the goods or perform import clearance – this is the responsibility of the counterparty.

The buyer’s obligations in DAP Incoterms

The buyer is responsible for import clearance, unloading of the goods and all costs and risks arising from the moment of delivery of the cargo.

The buyer’s responsibilities in DAP Incoterms:

handles import customs formalities,
unloads the goods,
assumes the risk of loss or damage to the goods from the moment they are made available by the seller,
provides further internal transport, if required.

Once the goods are at the designated location, the risk is transferred. It passes to the buyer, and the seller is released from further obligations.

DAP in various modes of transport

The DAP rule can be applied to any mode of transport – road, air, rail, as well as sea and inland waterway transport.

The flexibility of this Incoterms formula makes it particularly popular in international trade, where the supply chain often involves several modes of transport.

Whether it is the transport of containers by sea, air transport of express shipments or road transport, the seller delivers the goods to the designated destination.

Examples of DAP:

Road transport – DAP is widely used in European logistics, where delivery of goods to the buyer’s warehouse is common practice.
Air transport – ideal for urgent shipments; the seller bears the costs of delivering the goods to the destination airport, and the buyer takes care of unloading and import clearance.

It is worth noting that some contracts include a variant called Delivered at Place Unloaded (DPU), in which the seller is also responsible for unloading. However, in classic DAP, this obligation rests solely with the buyer.

Summary

DAP Incoterms 2020 is a delivery rule in international trade in which the seller is responsible for transport to the designated place, and then all obligations are transferred to the buyer.

The key element is the precise indication of the agreed delivery point – this determines the moment of risk transfer. From the moment the goods are at the designated place and are made available to the buyer, the seller is released from further responsibility.

In practice, this means that the obligations of unloading, import clearance and all risks associated with further transport and use of the goods are transferred from the seller to the buyer.

Frequently asked questions

What does Incoterm DAP mean?

DAP (Delivered at Place) means delivery of goods to a designated destination, where the seller is responsible for transport and the risk is transferred to the buyer when the cargo is made available.

In practice, this means that the seller delivers the goods to the agreed point, but does not handle import clearance or unloading.

Who pays for transport with DAP?

The seller covers the costs of transport to the destination, while the buyer is responsible for import clearance, taxes, unloading and local charges.

When to use DAP and when to use DDP?

DAP is chosen when import clearance is the responsibility of the buyer, while DDP (Delivered Duty Paid) means that the seller also covers customs duties and taxes.

In the case of DAP, the seller transfers the risk to the buyer at the designated place (before unloading the goods), and in DDP, the buyer receives the goods after all import formalities have been completed.

How does DAP differ from EXW?

EXW (Ex Works) means that the buyer bears almost all obligations and risks from the moment of collection of the goods from the seller, while in DAP the seller is responsible for delivery to the destination.

The difference therefore lies in the distribution of responsibilities and the moment of risk transfer.

What is the FAS (Free Alongside Ship) rule?

FAS (Free Alongside Ship) is an Incoterms rule in which the seller delivers the goods alongside the ship at the port of loading, and further costs and risks are transferred to the buyer.

Unlike DAP, FAS is intended exclusively for sea and inland waterway transport.

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