Why Delivered at place (DAP) matters to a first-time founder
DAP decides which party arranges transport and where delivery risk transfers. Under Incoterms 2020, the seller carries cost and risk to the named place, with goods ready for unloading. The buyer unloads and normally handles import clearance and import duties or taxes. A precise destination matters because “DAP London” leaves much more uncertainty than a named warehouse and address.
Examples of Delivered at place (DAP)
A Swedish seller agrees “DAP buyer’s warehouse, Manchester, Incoterms 2020” for equipment worth £20,000. The seller arranges transport to that warehouse and bears transit risk until the equipment is placed at the buyer’s disposal, ready for unloading. The UK buyer unloads it, completes import clearance, and pays import duty and VAT unless the contract separately changes those commercial costs.
Common misunderstanding
DAP does not mean the seller pays every charge or unloads the goods. It differs from DDP, where the seller normally handles import clearance and duties, and from the retired DAF rule. Incoterms allocate selected delivery tasks, costs, and risk between seller and buyer. They do not decide ownership, payment timing, product compliance, sanctions, or every legal obligation.
When to use it
Use DAP when the seller can manage transport to the buyer’s named destination but the buyer should manage import formalities and unloading. State the exact place and “Incoterms 2020” in the contract. Check whether the buyer can legally act as importer in the destination. Obtain route-specific advice where tax, sanctions, controlled goods, or local carrier charges create uncertainty.