DAP Incoterms 2020: Delivered at Place Meaning and Who Pays What

DAP (Delivered at Place) sounds simple: the seller delivers to your door. But who pays the destination port charges, who clears customs, and what happens if the goods are held at the port? This guide explains what DAP means in Incoterms 2020, who pays what, where the risk passes, and the common problems when you buy or ship DAP from China.

Key points
• Under DAP, the seller delivers the goods to a named place at destination, ready for unloading. That is the point of delivery.
• The seller pays the main freight and carries the risk until delivery. The buyer unloads, clears import customs and pays duties and taxes.
• DAP works for every mode of transport: sea, air, rail, road and express.
• Destination port charges are the most common source of disputes. Agree in writing who pays them.
• DAP replaced the old term DDU. Want duties included? Ask for DDP.

What Does DAP Mean?

DAP (Delivered at Place) is one of the 11 Incoterms 2020 rules published by the International Chamber of Commerce (ICC). The seller delivers when the goods are placed at the buyer’s disposal on the arriving truck, ship or plane at the named place of destination, ready for unloading. The place is written after the term, for example “DAP 123 Main Street, Dallas, Incoterms 2020” or “DAP Port of Felixstowe”.

The named place can be your warehouse, a port, an airport or a terminal. The more precise it is, the fewer arguments later.

Who Pays What Under DAP

Where the Risk Passes Under DAP

The risk passes to the buyer at the named place of destination, when the goods arrive ready for unloading. Loss or damage during the main journey is the seller’s risk. Damage during unloading is the buyer’s risk.

This is much later than under FOB, FCA or CIF, where the buyer takes the risk once the goods leave China. It is one reason buyers like DAP, and why sellers who quote DAP normally insure the goods. See cargo insurance.

DAP by Transport Mode

DAP Cost Example: What the Buyer Still Pays

A UK buyer orders goods worth US$20,000 from China on DAP terms to their warehouse in Birmingham. The seller’s price includes the sea freight and insurance to the UK, about US$2,500, plus trucking to the warehouse. The figures below are an example only; the duty rate depends on the product’s HS code.

So a DAP price of about US$22,500 can mean more than US$28,000 by the time the goods are on your shelf. In the USA the calculation is different: duty is usually based on the value of the goods without international freight, and there is no import VAT, but tariffs on Chinese goods can be much higher. See importing from China to the UK and US tariffs on Chinese goods.

How to Write DAP in Your Contract

Also agree in writing who books the delivery appointment, how many hours are allowed for unloading, and who pays if the truck has to wait.

A Typical DAP Shipment from China, Step by Step

1. Quote and contract: the seller quotes DAP to your address, listing what is and is not included.
2. Production and export: the seller packs, clears export customs in China and books the freight.
3. Main transport: the goods travel at the seller’s risk. You should still receive the tracking details.
4. Before arrival: you or your customs broker prepare the import declaration, with the invoice, packing list and bill of lading or air waybill.
5. Import clearance: you pay the duties and taxes. Delays here are your cost.
6. Delivery: the seller’s carrier brings the goods to your address. The risk passes to you; you unload and check the goods.

Common Problems with DAP

• Destination port charges: terminal handling and delivery order fees at the destination are paid by the seller only if they are in the seller’s contract with the carrier. If not, the buyer gets the bill. Ask for a written list of what is included.
• Customs delays: the buyer must clear import customs. If clearance is late because of missing documents or a missing importer number, demurrage and storage charges are the buyer’s cost.
• Unclear named place: “DAP USA” or “DAP UK” is not enough. Name the address, port or terminal.
• Express shipments: couriers often ship on DAP terms by default, so the receiver pays duties and taxes before delivery. This surprises many buyers.
• The old term DDU: DDU (Delivered Duty Unpaid) was replaced by DAP in Incoterms 2010. If a supplier still quotes DDU, treat it as DAP and confirm the details in writing.

DAP vs DPU vs DDP vs CPT

DAP and DDP differ only in who pays the import duties and taxes. For a full comparison, including a cost example, see DDP vs DAP vs EXW. For all 11 rules, see Incoterms 2020.

Should You Buy DAP from China?

• DAP suits you if you have your own customs broker, want to pay duties yourself (for example to reclaim import VAT), and want the seller to carry the transport risk.
• DDP suits you if you want one price with duties included and nothing to pay on delivery. See DDP shipping.
• FOB or FCA suits you if you want to choose your own forwarder and control the freight cost. See FCA Incoterms.

When comparing a DAP quote with an FOB quote plus freight, remember that DAP prices include the seller’s freight and insurance, but not your duties, taxes or customs clearance.

DAP Checklist

If you are the buyer:

• Name an exact delivery address or terminal in the contract.
• Ask the seller for a written list of destination charges that are included.
• Have an importer number (for example an EORI in the UK and EU) and a customs broker ready before the goods arrive.
• Estimate duties and taxes from the HS code, so the landed cost is clear. See how to find an HS code.
• Arrange unloading equipment and staff at the delivery address.

If you are the seller:

• Quote destination charges clearly, or state that they are excluded.
• Insure the goods, because the risk is yours until delivery.
• Send the buyer the documents early, so import clearance is not delayed.

How JIEYI Works with DAP

• Selling or buying DAP? We can quote door-to-door shipping from China to the USA, Canada, the UK and Europe on DAP or DDP terms, with every cost listed.
• Goods arriving DAP from your supplier? We can handle import customs clearance and final delivery at destination, at a price agreed before the goods arrive.
• Prefer no surprises on delivery? Ship DDP and we include duties and taxes in one price.

FAQ

What does DAP mean in shipping?

DAP means Delivered at Place. The seller delivers the goods to the named destination, ready for unloading. The buyer unloads, clears import customs and pays duties and taxes.

Who pays import duty under DAP?

The buyer. Under DAP the seller does not pay import duties or taxes. Only DDP includes them.

Does DAP include unloading?

No. The goods are delivered ready for unloading, and the buyer unloads them. If you want the seller to unload, use DPU (Delivered at Place Unloaded).

Is DAP the same as DDU?

In practice, yes. DDU was removed from the Incoterms in 2010 and replaced by DAP.

Who pays destination port charges under DAP?

It depends on the seller’s transport contract. If those charges are included in the seller’s freight, the seller pays; if not, the buyer pays. Agree this in writing before shipping.

Is DAP good for the buyer?

It is convenient, because the seller arranges and carries the risk of the transport. But you still pay duties, taxes and customs clearance, and you have less control over the freight. Compare the total landed cost with FOB or FCA plus your own forwarder.

Can I use DAP for Amazon FBA?

Amazon does not act as importer, so under DAP you need your own importer of record and customs broker. Many sellers choose DDP for FBA shipments instead. See shipping from China to Amazon FBA.

Does DAP include insurance?

No party has to insure under DAP. But the seller carries the risk until delivery, so sellers usually insure the goods.

---

Checked on 2 November 2026 against the ICC Incoterms 2020 rules. Have a DAP quote or shipment from China? Send us the details and get a DAP or DDP quote within 2 hours.