Incoterms 2020 · Any mode
DAP (Delivered at Place): who pays what
The short answer
Who pays what under DAP
| Step | Under DAP |
|---|---|
| Export clearance | Seller |
| Main freight | Seller |
| Cargo insurance | Seller (not required, but the seller carries the risk) |
| US customs clearance | Buyer |
| US import duty and fees | Buyer |
| Unloading at destination | Buyer |
| Risk passes to the buyer | At the named destination, on the arriving vehicle, ready for unloading |
In the contract, DAP is followed by the place of destination where the goods are delivered: for example "DAP Atlanta warehouse, Incoterms 2020".
What DAP means for a US importer
DAP gives you a delivered price to your door or warehouse while you stay the importer of record. You file the entry and pay the duty, so you keep control of classification and valuation.
The goods travel at the seller's risk all the way to the named place, so the seller usually insures them.
US customs value under DAP
A DAP price includes the freight to the United States. Your broker deducts the international freight and insurance when they are shown separately (19 U.S.C. 1401a(b)(4)(A)), and US delivery after import is left out too when it is identified separately (19 U.S.C. 1401a(b)(3)).
Check the duty for your product in the Gateway tariff calculator.
Watch out for
- If US customs clearance is late, storage and demurrage at the port can be argued to be yours, because import clearance is the buyer's job. Have your entry ready before the ship arrives.
- Under DAP you still need the Importer Security Filing (ISF) in before the container is loaded abroad.
DAP questions
Who pays import duty under DAP?
The buyer. DAP leaves import clearance, duties and taxes to the buyer.
What is the difference between DAP and DDP?
Under DDP the seller also clears US customs and pays the duty; under DAP the buyer does. Everything else, including where delivery happens, is the same.
Who unloads under DAP?
The buyer. The seller delivers the goods on the arriving vehicle, ready for unloading. Under DPU the seller unloads.
Sources
- International Chamber of Commerce: Incoterms 2020
- International Trade Administration (trade.gov): Know Your Incoterms
- 19 U.S.C. 1401a(b)(4)(A): price actually paid or payable
Incoterms® is a registered trademark of the International Chamber of Commerce. This page explains the rule in our own words; the ICC publication is the authoritative text.