What is DAP?
DAP, Delivered at Place, is an Incoterm where the seller delivers goods to a named place of destination, ready for unloading, but without unloading them. The seller handles all transport costs and export customs clearance. The buyer is responsible for import customs clearance, import duty, and VAT. Risk transfers to the buyer when the goods arrive at the named destination, ready to be unloaded.
If a supplier has quoted you a price with “DAP [city name]” and you are not sure what you are agreeing to, this article explains it clearly.
DAP puts a lot of responsibility on the seller. They arrange all transport and export clearance, right up to your door. But there is one thing the seller does not do: unload the goods. And the buyer handles everything on the customs and duty side. Getting these two points wrong causes real problems, so it is worth understanding both before you sign a contract.
Here is the complete sequence of events under a DAP shipment, from factory to delivery.
1. Contract agreed. Seller and buyer agree on DAP terms and name a specific destination: for example, “DAP Buyer’s Warehouse, Sheffield S1 2AA.” The named place is critical. It determines how far the seller’s cost and transport obligation extends.
2. Seller packs and prepares goods. The seller packs the goods and arranges everything needed to get them to the named destination. All origin costs: packaging, inland haulage to port, port handling, are the seller’s responsibility.
3. Seller handles export customs clearance. The seller clears the goods through customs in the country of export and pays any export duties or taxes. The seller needs an EORI (Economic Operators Registration and Identification) number in the export country to do this.
4. Seller arranges and pays for main carriage. The seller contracts the carrier and pays for freight all the way to the named place of destination. This could be a shipping line, an airline, a road haulier, or a combination. DAP covers all transport modes.
5. Goods arrive at the named place. The seller’s transport contract brings the goods to the agreed location: for example, to the buyer’s warehouse gate or to a specific freight terminal. The goods are placed at the buyer’s disposal, ready for unloading.
6. Risk transfers to the buyer. At the moment the goods are available for unloading at the named place, risk passes from seller to buyer. If something goes wrong before this point, damage in transit, a vessel incident at sea, it is the seller’s problem.
7. Buyer unloads the goods. Unloading is the buyer’s responsibility and cost. DAP is “delivered at place”, not “delivered and unloaded.” The seller brings the vehicle to your door; you get the goods off it.
8. Buyer handles import customs clearance. Import clearance, import duty, and import VAT are entirely the buyer’s responsibility. The buyer must have a UK EORI number, appoint a customs broker, and file an import declaration through the UK Customs Declaration Service (CDS).
| Responsibility | Seller | Buyer |
|---|---|---|
| Packing and origin handling | Yes | No |
| Export customs clearance | Yes | No |
| Export duties and taxes | Yes | No |
| Origin haulage to carrier | Yes | No |
| Main freight to named destination | Yes | No |
| Cargo insurance | No obligation | Recommended |
| Risk of loss or damage in transit | Until goods ready for unloading at destination | From goods ready for unloading at destination |
| Unloading at destination | No | Yes |
| Import customs clearance | No | Yes |
| Import duties and import VAT | No | Yes |
| Last-mile delivery beyond named place | No | Yes |
The key distinction with DAP: the seller delivers to your door, but does not unload. You handle import customs, duty, VAT, and unloading. Confusing unloading with delivery causes disputes, know which one DAP covers.
When a supplier quotes you a price on DAP terms, here is exactly what that price covers, and what it does not.
What the seller’s DAP price includes:
What the buyer must arrange and pay for separately:
A cost example in practice:
A UK electronics retailer imports 500 laptop bags from a supplier in Shenzhen on DAP London Warehouse, Incoterms 2020 terms. The goods are worth £15,000. The supplier’s DAP price covers everything from the Shenzhen factory to the London warehouse gate. On top of the DAP price, the buyer pays: customs clearance (around £200 via a broker), UK import duty on laptop bags (typically 3.7% = £555), and UK import VAT at 20% (calculated on goods value plus duty = around £3,111). Those three costs are not in the DAP price, they are the buyer’s separate responsibility.
Under DAP, risk passes from seller to buyer when the goods arrive at the named place of destination and are placed at the buyer’s disposal, ready for unloading.
This is one of the latest risk transfer points in the entire Incoterms suite. Under most other Incoterms, risk transfers somewhere during the outward journey, at the seller’s factory (EXW), at the carrier handover (FCA, CIP, CPT), or at port of shipment (FOB, CIF). Under DAP, the seller carries the risk all the way to the destination.
What this means in plain terms: if the goods are damaged, lost, or destroyed at any point during the journey from the seller’s premises to your named destination, it is the seller’s problem, not yours. The seller is on the hook for everything that happens in transit.
A concrete example. A Birmingham-based wholesaler imports ceramics from Portugal on DAP Birmingham Warehouse terms. The truck crosses the Channel via Dover and is involved in a motorway accident in the UK, damaging 30% of the consignment. Because the goods had not yet arrived at the Birmingham warehouse ready for unloading, risk had not transferred. The seller bears the financial loss and must either replace the goods or settle with the buyer. Once the truck reaches the Birmingham warehouse gate and the ceramics are ready to be unloaded, risk transfers, and any damage discovered after that point is the buyer’s concern.
This late risk transfer is one of the main reasons buyers like DAP. You carry minimal transit risk.
Under DAP, the seller has no insurance obligation. The Incoterms rules do not require the seller to take out cargo insurance on a DAP shipment.
This creates a potential gap. The seller carries the risk during transit, but they may or may not have insured the goods. If the goods are lost at sea and the seller has no insurance, the buyer may find themselves waiting for the seller to fund replacements, which can take weeks or months.
For sellers: Even though insurance is not required, it is strongly advisable. If anything goes wrong in transit, the seller bears the cost. Uninsured transit losses on a DAP shipment are entirely the seller’s liability. Most professional sellers trading on DAP terms arrange at least Clauses C cover (named perils), and often Clauses A (all risks) for higher-value shipments.
For buyers: Ask your supplier whether they carry cargo insurance on DAP shipments. Request a copy of the insurance certificate before goods ship. If the seller does not insure, or if you are not confident in their cover, consider arranging your own contingency cover. Some marine cargo policies allow buyers to take out “buyer’s interest” insurance, which covers you if the seller’s insurance is inadequate or non-existent.
The practical reality: In many long-standing trading relationships, sellers on DAP terms do arrange cargo insurance as a matter of course. But you should verify this rather than assume it. “The seller is responsible for transit risk” does not automatically mean “the seller has insured that risk.”
Full control of the freight process. The seller arranges transport from start to finish. This means using preferred carriers, negotiating rates, and controlling the routing. High-volume sellers often have competitive freight rates that give them a commercial advantage over buyers who would arrange freight independently.
A competitive, all-in quote. DAP produces a single price that covers everything from origin to the buyer’s door, except import duties. For buyers who want goods delivered without managing logistics, DAP is a highly attractive offer. It can help sellers win business against competitors offering Ex Works (EXW) or FCA terms, where the buyer must arrange more themselves.
Export customs stays with the seller. The seller handles export clearance in their own country, something they are already familiar with. They do not need to navigate the buyer’s import regime.
Risk stays with the seller until arrival, which buyers value. Although this is a disadvantage in one sense, it is also a commercial selling point. Buyers are prepared to pay more for DAP terms precisely because they do not carry transit risk. The seller can factor this into their pricing.
Applies to all transport modes. DAP works for road, sea, air, and rail, so sellers do not need different Incoterms for different types of shipments.
Minimal transit risk. Risk does not transfer until goods arrive at your named place, ready to unload. For the buyer, this is the strongest risk position available outside of DDP. Everything that happens in transit, damage, delay, loss, is the seller’s problem.
Simple logistics. You do not need to arrange freight, negotiate with carriers, or manage shipping timelines. The seller handles all of that. Your job starts when the truck arrives at your door.
Goods delivered to your premises. DAP is designed to bring goods to the buyer’s specific location. The named place can be your warehouse, your distribution centre, or any agreed delivery point. You are not collecting from a port.
Competitive pricing from experienced sellers. Sellers who ship regularly have established freight rates. In many cases, a DAP price from an experienced exporter will be more competitive than the buyer arranging their own freight independently.
Clear cost structure for budgeting. Your costs under DAP are: the DAP price (seller covers everything to your door) plus your import duty and customs clearance costs. These are predictable and can be calculated in advance using the UK Global Tariff.
No need to manage export clearance. The seller handles export customs in their own country. You only deal with the UK import side.
The seller bears all transit risk. Risk does not leave the seller until the goods arrive at the destination ready for unloading. A long sea voyage from China, a delayed air shipment, or a truck incident in the UK, the seller carries the financial exposure for all of it unless they have insured the goods.
Freight cost certainty is hard. The seller quotes a DAP price before booking freight. If freight rates spike between quoting and booking, as happened dramatically during 2021–2022, the seller absorbs the difference. Sellers should build freight cost buffers into DAP prices or use freight cost escalation clauses.
The named destination can cause complications. If the buyer names an inaccessible or vague destination, “DAP London” rather than a specific address, the seller’s freight forwarder cannot properly plan the last-mile delivery. Always agree a full address, not a city name.
Unloading is the buyer’s job, but the seller’s vehicle waits. If the buyer is not ready to unload when the truck arrives, the truck sits and waits. Waiting time charges (demurrage or detention) can accrue quickly. DAP contracts should specify how long the seller’s vehicle will wait and who pays if the buyer is not prepared.
Import clearance delays affect everyone. If the UK buyer is slow to clear goods through customs, the seller’s shipment may be held at Felixstowe or Southampton. Port storage costs can mount quickly. Although import clearance is the buyer’s responsibility, delays still affect the seller’s reputation and cash flow.
Financing risk. The seller funds the entire freight chain before payment, a major working capital outlay on large shipments.
Import customs clearance is entirely your responsibility. You need a UK EORI number, a customs broker, and you must file an import declaration through the UK Customs Declaration Service (CDS). If you are new to importing, this process takes time to set up. Getting it wrong can hold your goods at the port.
Import duty and VAT are your bill, and they can be major. The DAP price does not include UK import duty or UK import VAT. On a large shipment, these costs can easily exceed the freight costs. Make sure you have calculated them before agreeing the DAP price, not after. HMRC publishes guidance on customs valuation and how Incoterms affect it at gov.uk/guidance/customs-valuation/incoterms.
You must be ready to unload on arrival. Unloading is the buyer’s cost and responsibility. If your warehouse team is not available when the truck arrives, or if you do not have forklift capacity, the driver may charge waiting time. Plan your unloading resource before the goods ship.
Limited visibility of transit. The seller arranges freight and is the natural point of contact with the carrier. As the buyer, you may have limited tracking visibility during the shipment, especially for sea freight. Ask the seller to share the bill of lading number or air waybill so you can track independently.
Goods over £135 attract UK import VAT at the border. Any commercial consignment with a customs value above £135 is subject to UK import VAT (20%) on arrival. For most B2B imports this threshold is irrelevant, you will exceed it, but it is worth knowing if you import samples or low-value items separately.
If the seller has no insurance, your recourse is commercial, not legal. The seller carries the risk in transit but has no obligation to insure. If goods are damaged and the seller is uninsured, your remedy is a claim against the seller, which may take months and may not be straightforward across international borders.
DAP works well in a number of specific situations.
When you want goods delivered to your premises without managing freight. DAP is the standard choice for B2B importers who want goods brought to their warehouse or distribution centre by the seller. It is clean, simple, and requires minimal logistics effort from the buyer.
When you are comfortable managing UK import customs. DAP assumes you have, or can quickly set up, a UK customs process. If you have an EORI number, a reliable customs broker, and a CDS setup, DAP is efficient and practical.
When you want to minimise transit risk. DAP gives you the latest risk transfer point of any Incoterm except DDP. If your goods are fragile, high-value, or difficult to replace, DAP keeps the transit risk on the seller for the entire journey.
When buying from a supplier who has established freight infrastructure. Large manufacturers and exporters in China, Vietnam, India, or EU member states often have freight contracts and carrier relationships that produce better rates than a UK buyer could access independently. In these cases, DAP pricing is genuinely competitive.
When the supplier is experienced and trustworthy. Because the seller controls the logistics all the way to your door, you are placing a lot of trust in their ability to execute. DAP works best with established supplier relationships.
DAP is particularly common in UK imports from China and other Asian manufacturing countries, and in UK-EU trade where EU sellers ship direct to UK buyers’ premises post-Brexit.
Avoid DAP when you have a freight forwarder you want to use. If you have your own trusted freight forwarder with competitive rates and good carrier relationships, DAP removes that control entirely. FCA (Free Carrier) is the better choice, the seller handles export clearance, but you arrange the main freight.
Avoid DAP when you also need the seller to handle import duties. If you want the seller to handle everything, including UK import clearance and duty, you need DDP (Delivered Duty Paid), not DAP. DAP explicitly leaves import customs clearance and duty to the buyer.
Avoid DAP when your import customs setup is not ready. If you do not yet have a UK EORI number, a customs broker, or a CDS process in place, DAP will cause delays at the port. Sort out your import infrastructure before agreeing DAP terms.
Avoid DAP when you cannot guarantee being ready to unload. If your warehouse operations are unpredictable, seasonal peaks, staffing gaps, no unloading equipment, you risk paying vehicle waiting charges when the truck arrives. Know your operational capacity before committing to DAP.
Avoid DAP when the named destination is remote or access-restricted. Some premises have restrictions on delivery vehicle size, access times, or weight limits. The seller’s carrier may not be able to access your site. Check before agreeing DAP to your premises.
If DAP is not right for your situation, consider FCA (Free Carrier) if you want to control the main freight, or DDP (Delivered Duty Paid) if you want the seller to handle import customs and duty as well.
Mistake 1: Forgetting that the buyer pays import duties.
DAP brings goods to your door, but not through customs. Many buyers see a DAP price and think it covers everything. It does not. UK import duty and import VAT are paid separately by the buyer. Calculate these before agreeing the DAP price, not after the goods have arrived.
Mistake 2: Using a vague named place.
“DAP UK” or “DAP London” is not a valid DAP contract. The named place must be specific enough for the seller to book freight to it. Use a full address, building name, street, city, and postcode. “DAP Buyer’s Warehouse, Unit 4 Trafford Park, Manchester M17 1EH” is correct.
Mistake 3: Assuming the seller has arranged insurance.
DAP has no seller insurance obligation. The seller carries the risk, but they may not have insured it. Ask for an insurance certificate before goods ship. If the seller has no insurance, consider arranging buyer’s interest cover.
Mistake 4: Not being ready to unload.
Unloading is the buyer’s responsibility. If the truck arrives and you are not ready, no staff, no forklift, warehouse full, the driver will charge waiting time. Plan your unloading resource in advance, particularly for large or heavy shipments.
Mistake 5: Not having a UK EORI number.
As the importer of record under DAP, you need a UK EORI number to clear goods through UK customs. Without one, your goods will be held at the port. Register through HMRC before goods ship, processing takes 3–5 working days.
Mistake 6: Confusing DAP with DDP.
DAP leaves import customs and duty with the buyer. DDP (Delivered Duty Paid) means the seller handles all of that. If you want goods cleared through customs before they arrive at your door, you need DDP, not DAP. Make sure you and your supplier agree on which term applies.
Mistake 7: Ignoring the customs valuation rules.
HMRC calculates UK import duty on the customs value of the goods, which under DAP includes the freight and insurance costs to the UK border, not just the goods price. This can affect your duty calculation. HMRC’s guidance is at gov.uk/guidance/customs-valuation/incoterms.
DAP and DDP (Delivered Duty Paid) are the two most commonly confused destination Incoterms. The difference is clear once you know it, but the confusion causes real problems.
| Key Difference | DAP | DDP |
|---|---|---|
| Import customs clearance | Buyer’s responsibility | Seller’s responsibility |
| Import duties and taxes | Buyer pays | Seller pays |
| UK import VAT | Buyer pays | Seller pays |
| Risk transfer point | Named destination, ready for unloading | Named destination, ready for unloading |
| Seller’s maximum obligation | Delivers to named place, ready for unloading | Delivers to named place, cleared through customs, duties paid |
| Complexity for seller | Moderate | High — seller must navigate UK customs |
| Recommended for UK imports | Yes, when buyer has customs setup | Use carefully — seller must be familiar with UK import requirements |
Under both DAP and DDP, risk transfers at the same point, the named destination, ready for unloading. The difference is entirely about who handles import customs and who pays import duty and VAT.
When to choose DAP: You have a UK EORI number, a customs broker, and you are comfortable managing UK import declarations through CDS. You want the seller to handle freight and export clearance, but you will manage the UK customs side yourself.
When to choose DDP: You want the seller to handle absolutely everything, including UK import clearance and duty payment. Be cautious. DDP places the seller in the role of UK importer of record, which requires them to understand UK customs law, HMRC requirements, and CDS filings. Many sellers do not want or cannot do this properly. A seller who agrees DDP without fully understanding UK customs obligations can cause major delays and compliance problems.
For most UK importers, DAP is the more practical choice. It keeps UK customs in your hands, where you have the knowledge and control, while leaving logistics with the seller.
DPU (Delivered at Place Unloaded) is the Incoterm closest to DAP, and the most commonly mixed up with it. There is exactly one difference between them: unloading.
| Key Difference | DAP | DPU |
|---|---|---|
| Seller’s delivery obligation | Delivers goods to named place, ready for unloading | Delivers goods to named place and unloads them |
| Who unloads? | Buyer | Seller |
| Risk transfer point | When goods ready for unloading at named place | When goods unloaded at named place |
| Named place | Can be any place — warehouse, freight terminal, buyer’s premises | Must be a place where the seller can physically unload |
| Import customs clearance | Buyer | Buyer |
| Import duties and VAT | Buyer | Buyer |
The only difference is unloading. Under DAP, the seller parks the truck and you unload. Under DPU, the seller unloads as well.
When does this matter in practice?
If your warehouse requires specialist unloading equipment, or if you want the seller’s driver to be responsible for placing goods in a specific location, DPU may be more appropriate. But DPU requires the seller to be able to unload, they need access, equipment, and the right vehicle. Not all sellers can do this.
If the named place is a standard warehouse with a loading dock, DAP is usually simpler. The seller delivers to the dock; your team unloads.
One important note on DPU: the named place under DPU must be a location where unloading is physically possible. If the seller cannot arrange unloading at the named place, a congested port, a site with restricted access. DPU creates practical problems. DAP avoids this entirely.
For most UK warehouse deliveries, DAP is the cleaner option. Reserve DPU for situations where the seller unloading is genuinely necessary and operationally feasible.
DAP applies to all transport modes: road, sea, air, and rail, as well as multimodal shipments that combine more than one mode.
Road freight. DAP is extremely common for road freight from Europe into the UK. A German manufacturer, for example, might ship goods by truck from Hamburg, crossing the Channel via Dover, and delivering direct to a UK buyer’s warehouse. Under DAP, the seller handles German export clearance and UK transit, the buyer handles UK import customs.
Sea freight. DAP works for both FCL (full container load) and LCL (less than container load) sea freight. The seller contracts the shipping line and pays freight to the UK port, then arranges onward haulage to the named destination. The buyer clears customs at Felixstowe, Southampton, or whichever port the goods arrive at.
Air freight. For high-value or time-sensitive goods, DAP applies to air shipments just as it does to sea. The seller arranges the airway bill and pays freight to the UK. The buyer handles UK customs clearance on arrival.
Rail freight. For UK-China trade via the Belt and Road rail corridors, DAP is used increasingly. The seller arranges rail freight from China, and the goods clear UK customs on arrival at the nominated UK rail freight terminal.
Multimodal shipments. DAP is the standard multimodal destination Incoterm. A shipment from India might travel by truck to port, then by sea to Felixstowe, then by road to Birmingham, all under a single DAP contract. The seller’s obligation is to get goods to the named destination, regardless of the modes used.
What DAP cannot do: DAP does not specify a particular mode. It is mode-neutral. Whatever mode is used, the seller’s obligations and the buyer’s obligations remain the same.
DAP was introduced in Incoterms 2010 and carried over largely unchanged into Incoterms 2020. If you are using DAP under current Incoterms, you are using the 2020 version, and it works the same way as the 2010 version.
DAP replaced three older Incoterms in 2010:
DAP was designed to consolidate these three terms into a single, mode-neutral rule. It succeeded. DAP is now the standard destination Incoterm for buyers who want goods delivered to their premises without handling import duties.
What did Incoterms 2020 change in DAP?
Very little. The 2020 revision introduced clearer language around security requirements: sellers must assist buyers in getting any security-related documentation needed for transit. This was a clarification rather than a substantive change.
The 2020 edition also reorganised the presentation of Incoterms rules, grouping them by mode of transport. DAP sits in the “any mode or modes” group alongside EXW, FCA, CPT, CIP, and DDP.
One point to watch: If a contract references “DDU Incoterms 2000”, the old term, that contract is using outdated rules. DAP is the current equivalent. If you encounter DDU in an older contract template, update it to DAP, Incoterms 2020.
Always specify which version of Incoterms applies in your contract. Write “DAP [named place], Incoterms 2020” to avoid ambiguity.
DAP is one of the most commonly used Incoterms for UK imports, particularly for B2B buyers who want goods delivered to their door without managing freight. Here is what UK-specific rules mean for your DAP shipments.
You are the UK importer of record. Under DAP, you handle UK import customs clearance. This means you need a UK EORI number. Without one, your goods cannot clear UK customs. Register through HMRC if you have not already, it takes 3–5 working days.
Import declarations go through CDS. The UK Customs Declaration Service (CDS) replaced the old CHIEF system in late 2023. All UK import declarations must now be filed through CDS. Your customs broker should be using CDS for all declarations.
UK import duty applies. The rate depends on the commodity code (also called a tariff code) of your goods. You can check current duty rates using the UK Global Tariff on gov.uk. Note that under DAP, HMRC calculates UK import duty on the customs value of the goods, which typically includes the cost of freight to the UK border. HMRC’s guidance on customs valuation and Incoterms is at gov.uk/guidance/customs-valuation/incoterms.
UK import VAT applies. Goods with a customs value above £135 are subject to UK import VAT at 20% on entry to the UK. For most commercial B2B imports, you will exceed the £135 de minimis threshold easily. If you are VAT-registered, you can use postponed VAT accounting to declare and recover import VAT on your VAT return rather than paying it at the border.
Post-Brexit customs. Since the UK left the EU customs union at the end of 2020, all goods moving between the UK and EU countries require customs formalities. If you are buying from an EU supplier on DAP terms, the seller handles EU export clearance; you handle UK import clearance. Both sides need EORI numbers. Goods enter the UK via Dover (road), Felixstowe or Southampton (sea), or UK airports (air), all of which have HMRC customs facilities.
Port delays matter. Felixstowe is the UK’s busiest container port. During peak periods, customs clearance delays can mean your goods sit in port for days. Brief your customs broker in advance, pre-lodge your import declarations where possible, and ensure your commodity codes and valuations are correct before the goods arrive.
You handle UK export customs clearance. As the seller under DAP, you are responsible for UK export formalities. You need a UK EORI number and must file an export declaration through HMRC’s systems, typically done by a customs agent or freight forwarder.
You carry the risk all the way to the buyer’s destination. If you are selling DAP to a buyer in Germany, France, or any other country, the risk stays with you until the goods arrive at the buyer’s named place. Arrange insurance, this is not optional in commercial terms, even if the Incoterm does not require it.
Post-Brexit trade with the EU. UK exporters selling on DAP to EU buyers must handle UK export clearance. The EU buyer handles EU import clearance and pays any EU import duties. Make sure the EU buyer is aware of their obligations before agreeing DAP terms, some EU buyers assume DAP means duty-free delivery, which it does not.
Here is a realistic worked example to make DAP concrete.
The scenario: A Bristol-based kitchen equipment retailer. Peak Kitchen Supply, orders 200 sets of premium cookware from a manufacturer in Guangzhou, China. The contract is agreed on DAP Peak Kitchen Supply Warehouse, Bristol BS1 1AA, Incoterms 2020.
Goods value: £22,000
What the seller does:
The Guangzhou manufacturer packs the cookware, arranges Chinese export customs clearance, and books a freight forwarder to collect the goods. The forwarder moves the goods from the factory to Yantian port (Shenzhen), where they are loaded into a container. The shipping line carries the container to Felixstowe. On arrival at Felixstowe, the seller’s UK freight agent arranges a truck for the final leg from Felixstowe to Bristol.
Throughout this entire journey, from the factory in Guangzhou to the warehouse gate in Bristol, risk stays with the seller.
What Peak Kitchen Supply does:
Before the goods arrive, Peak Kitchen Supply’s customs broker pre-lodges an import declaration through CDS. The broker uses the correct commodity code for cookware. UK import duty on cookware is currently 6.5%, so the buyer pays £1,430 in import duty. UK import VAT is 20% on the customs value (goods value plus duty plus freight to UK border), around £4,700. Peak Kitchen Supply uses postponed VAT accounting, so the VAT is accounted for on their next VAT return rather than paid at the border.
The truck arrives at the Bristol warehouse. Risk transfers to Peak Kitchen Supply the moment the goods are available for unloading. The warehouse team unloads the pallet, this is their cost and responsibility, not the seller’s.
On inspection, two cookware sets have minor cosmetic damage. Because risk has already transferred at this point (the goods arrived at the named place ready for unloading), this is Peak Kitchen Supply’s commercial issue. They raise a complaint with the seller. Since the seller had arranged cargo insurance (not required under DAP, but wise), the seller can make a modest insurance claim and compensate Peak Kitchen Supply.
The key lessons:
– The DAP price covered everything from Guangzhou to Bristol, but not UK import duty (£1,430) or VAT (£4,700). Peak Kitchen Supply had budgeted for these separately.
– Risk transferred at the Bristol warehouse gate, not at Felixstowe, not at Guangzhou port, not during the sea voyage.
– Unloading was Peak Kitchen Supply’s job. They had a forklift team ready.
DAP stands for Delivered at Place. It is one of the 11 Incoterms 2020 rules published by the International Chamber of Commerce (ICC). Under DAP, the seller is responsible for delivering goods to a named place of destination, ready for unloading, and for all costs and risks up to that point. The buyer handles import customs clearance, import duty, VAT, and unloading.
The buyer pays all import duties and taxes under DAP. This includes UK import duty (at the rate for the relevant commodity code), UK import VAT (20% on goods with a customs value above £135), and customs clearance costs. The seller’s responsibility ends at the named destination, it does not include getting goods through UK customs.
Under DAP, the buyer handles import customs clearance and pays import duties. Under DDP (Delivered Duty Paid), the seller handles all of that, including import clearance and duty payment in the buyer’s country. Both terms have the same risk transfer point (the named destination, ready for unloading). The difference is entirely about who manages import customs and who pays the duty bill.
DAP and DPU (Delivered at Place Unloaded) differ by one thing: unloading. Under DAP, the seller delivers goods to the named place ready for unloading, but the buyer unloads. Under DPU, the seller both delivers and unloads the goods. Risk under DPU transfers when goods are unloaded; under DAP, it transfers when goods are ready for unloading (before unloading begins).
No. DAP imposes no insurance obligation on the seller. However, the seller carries the risk throughout transit, so it is strongly in the seller’s commercial interest to insure the goods. As a buyer, always ask the seller whether they have cargo insurance in place, and request a copy of the certificate. If the seller has not insured, consider arranging buyer’s interest cover.
Yes. As the buyer under DAP, you are the UK importer of record. You need a UK EORI number to clear goods through UK customs. You also need a customs broker to file your import declaration through the UK Customs Declaration Service (CDS). Register for a UK EORI number through HMRC before your first DAP shipment, it takes 3–5 working days.
DAP replaced DDU (Delivered Duty Unpaid), DES (Delivered Ex Ship), and DAF (Delivered at Frontier) when Incoterms 2010 was introduced. These three older terms were consolidated into a single mode-neutral rule. DAP. If you see DDU in an older contract template, DAP is the current equivalent.
Yes. DAP applies to all transport modes, sea, air, road, and rail, and to multimodal shipments. For sea freight, the seller contracts the shipping line and pays freight to the UK port, then arranges onward haulage to the named destination. UK ports commonly used for DAP imports include Felixstowe (containers), Southampton (containers and ro-ro), and Dover (road freight via ferry).
Article: dap-incoterm | ShippingEducation.co.uk | Published June 2026 | Incoterms 2020
Internal links: DDP Incoterm | DPU Incoterm | FCA FCA Incotermained
External: HMRC Customs Valuation. Incoterms
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If you’re new to international trade or shipping, the shipping Bill of Lading (BOL) can seem daunting. Often hailed as one of the most crucial shipping documents, it plays a vital role in the movement of goods, payment processes, and cargo release.
This practical guide demystifies the BOL, breaking down its functions, types, and the essential information you need to provide. By the end, you’ll have a clear understanding of how a BOL works in practice, ensuring you’re well-equipped to navigate the complexities of shipping.