Procurement Glossary
DAP (Delivered at Place): Definition and application in logistics
November 19, 2025
DAP (Delivered at Place) is one of the most important Incoterms clauses in international trade and defines the delivery terms between seller and buyer. This regulation precisely determines when responsibility and risk are transferred from the supplier to the buyer. Find out below what DAP means, how it works, and what trends influence its application.
Key Facts
- DAP transfers risk and costs to the seller up to the agreed destination.
- Unloading at the destination is at the expense and risk of the buyer.
- Import customs clearance is the responsibility of the buyer.
- Suitable for all modes of transport, including multimodal transport
- Replaces the outdated Incoterms DAF, DES, and DDU since 2010
Contents
Definition and meaning of DAP
DAP regulates the distribution of costs, risks, and obligations between trading partners in international goods traffic.
Basic concept of DAP
For DAP deliveries, the seller bears all transport costs and risks up to the agreed destination. The goods are considered delivered as soon as they are ready for unloading at the destination. From this point on, the buyer assumes responsibility for unloading, customs clearance, and any further costs.
DAP vs. other Incoterms
Compared to DDP, with DAP the buyer takes care of import clearance. Unlike DPU, unloading is not carried out by the seller. This distinction is crucial for cost planning and risk distribution.
The importance of DAP in Procurement
DAP offers buyers planning security for transport costs while also enabling them to control customs processes. The clause is particularly suitable for companies with their own customs expertise or established customs agents.
Process and control of DAP
The successful implementation of DAP transactions requires structured processes and clear responsibilities between trading partners.
Contract design and agreements
For DAP contracts, the destination must be precisely defined. This includes the address, contact person, and opening hours. In addition, unloading times, demurrage regulations, and liability exclusions should be agreed upon. A precise commercial invoice supports subsequent customs clearance.
Transportation organization and monitoring
The seller organizes the entire transport to the destination and bears the corresponding costs. Tracking systems and regular status updates ensure transparency. For sea freight, demurrage and detention costs must be taken into account.
Handover and documentation
Delivery is complete when the goods are ready for unloading at the agreed location. All necessary documents, such as packing lists, transport documents, and certificates of origin, must be available in full. The buyer assumes all further risks and costs from the point of delivery.
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Operational KPIs for DAP
Key figures enable the systematic evaluation and optimization of DAP deliveries.
Delivery performance key figures
On-time delivery measures the proportion of DAP deliveries that arrive punctually at the agreed destination. Average transport times indicate efficiency and predictability. Damage rates assess the quality of transport handling and packaging. These key figures support carrier performance evaluation.
Cost efficiency indicators
Transport costs per unit or weight enable comparisons between suppliers and routes. Additional costs due to delays or rework reveal potential for optimization. Freight audit results uncover billing errors and savings opportunities.
Process quality metrics
Complete documentation upon arrival reduces customs delays. Complaint rates regarding delivery conditions indicate areas for improvement. Customer satisfaction with DAP processing influences long-term supplier relationships and should be surveyed regularly.
Delivery and control risks with DAP
DAP transactions involve specific risks that can be minimized by taking appropriate measures.
Transportation risks and delays
Delays or transport damage are the responsibility of the seller until delivery to the destination. Inadequate transport insurance can lead to gaps in coverage. Strikes, natural disasters, or political unrest can significantly affect DAP deliveries and lead to production losses for the buyer.
Customs and compliance risks
Incorrect product descriptions or incomplete documents delay customs clearance. Changes in customs tariffs or trade restrictions can result in unexpected costs. Dual-use goods require special attention in export control.
Operational settlement risks
Unclear unloading agreements can lead to conflicts and additional costs. Lack of capacity at the destination delays the acceptance of goods. Poor communication between the parties increases the risk of misunderstandings and damage during handover.
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Practical example
A German mechanical engineer sources components from China via DAP Hamburg. The Chinese supplier organizes sea freight and bears all costs up to delivery at the port of Hamburg. Upon arrival, the German buyer takes care of unloading, customs clearance, and onward transport to the factory. Clear agreements on unloading times and complete documentation ensure a smooth handover.
- Seller: Transport and costs to Hamburg port
- Buyer: Unloading, customs clearance, and onward transport
- Transfer of risk: Upon delivery for unloading
Trends and developments at DAP
Digitization and changing trade structures have a significant impact on the application and design of DAP transactions.
Digital document processing
Electronic bills of lading and digital certificates of origin accelerate DAP processing. AI-supported systems automate document verification and reduce error rates. Blockchain technology increases transparency in the supply chain and simplifies the tracking of goods and documents.
Sustainability requirements
Environmental regulations influence the choice of transport for DAP deliveries. Carbon footprint calculations are increasingly being taken into account when selecting suppliers. Green logistics concepts such as milk run systems optimize DAP transport in terms of sustainability.
Making supply chains more flexible
Nearshoring and regionalization are changing DAP applications. Shorter transport routes reduce complexity and risks. At the same time, cross-docking concepts are becoming increasingly important for efficient DAP processing in regional distribution networks.
Conclusion
DAP offers a balanced distribution of risk between seller and buyer in international trade. The clause enables cost transparency in transport and gives the buyer control over customs processes. Successful application of DAP requires precise contract drafting and professional handling. Digitalization and sustainability requirements will shape the future development of this important Incoterms rule.
FAQ
What exactly does DAP mean?
DAP (Delivered at Place) is an Incoterm whereby the seller transports the goods to the agreed destination and bears all costs and risks until they are made available for unloading. The buyer is responsible for unloading, customs clearance, and other costs.
Who pays the customs costs for DAP?
For DAP deliveries, the buyer bears all import duties, taxes, and customs clearance costs. The seller is only responsible for export formalities in the country of dispatch. This cost distribution should be taken into account when calculating prices.
Which modes of transport are suitable for DAP?
DAP can be used for all modes of transport—sea freight, air freight, road transport, rail transport, and multimodal transport. This flexibility makes DAP a universally applicable Incoterms clause for various logistics concepts.
How does DAP differ from DDP?
The main difference lies in customs clearance: with DDP, the seller also pays the import duties and taxes, whereas with DAP, these remain the responsibility of the buyer. DDP means higher costs for the seller, but less effort for the buyer.
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