01Obligations under DAP
Seller: Full carriage to named destination, export clearance.
Buyer: Import clearance + duties, unloading, final delivery if applicable.
The precise split of the 10 obligation pairs (A1–A10 / B1–B10) is binding under the ICC Incoterms 2020 rules.
02Risk and cost transfer
Risk transfer: On arrival at destination, ready for unloading.
Cost transfer: Seller bears all transport costs to destination.
For several Incoterms, the risk and cost points do not coincide — this is the biggest source of misunderstanding in international trade. Cargo insurance should always be aligned with the risk transfer point, not the cost transfer point.
03When to use DAP
Popular within Europe and when the buyer has an established import process. Typical for B2B within EU/EFTA.
Before choosing, verify: Can both parties operationally handle customs, carriage and insurance in the respective country? Are there tax implications (e.g. VAT under DDP)? Which documents (commercial invoice, certificate of origin, B/L, CMR, AWB) are required?
04Common pitfalls
1) Mode mismatch: DAP works for all modes — but always specify the named place precisely (city, country, optionally a terminal code) on the commercial invoice.
2) On-board notation: For sea Incoterms, a correct on-board notation on the B/L is critical for letter-of-credit settlement.
3) Insurance cover: Explicitly agree ICC A / B / C and the sum insured.
Frequently asked questions
What does DAP mean in practice?
Seller delivers to named place, ready for unloading; buyer handles import clearance. Applicable to any mode of transport. Risk transfer: On arrival at destination, ready for unloading.
Who pays cargo insurance under DAP?
No mandatory insurance. The buyer bears the risk from the transfer point onwards and should insure accordingly.
Is DAP suitable for containers?
Yes. The term applies to all modes, including container transport.