DAP (Delivered at Place) is an Incoterms rule under which the seller delivers goods to the buyer's named destination, ready for unloading — but does not clear them for import. The buyer takes over from there: import customs clearance, duties, and import taxes are the buyer's responsibility, not the seller's.
DAP sits in the middle of the Incoterms ladder. It carries the seller much further than FOB or EXW — all the way to the buyer's door — but stops one step short of DDP, where the seller also clears import and pays duty.
How does DAP split responsibilities?
| Responsibility |
Seller (under DAP) |
Buyer (under DAP) |
| Freight, export clearance & insurance |
Arranges and pays the full journey |
Nothing |
| Delivery to the named destination |
Delivers, ready for unloading |
Unloads on arrival |
| Import customs clearance |
Not obliged |
Handles — via customs brokerage or acting as importer |
| Import duties & taxes |
Nothing |
Pays — the defining difference from DDP |
| Risk of loss or damage |
Carries it until arrival at the named destination |
Takes over on arrival, before unloading |
DAP vs. DDP vs. DDU
| Term |
Who pays import duty & taxes |
In practice |
| DAP |
Buyer |
The current official Incoterms rule for "delivered, duties unpaid" |
| DDP |
Seller |
Buyer pays nothing on arrival — see our DDP entry |
| DDU |
Buyer |
Retired from the official Incoterms in 2010, replaced by DAP — but still used informally to mean the same thing |
DAP and DDU describe essentially the same commercial outcome — the buyer pays duty at the door — but only DAP is the current, defined Incoterms rule. Contracts should use DAP; DDU survives mainly as e-commerce shorthand.
Why does DAP create surprise charges for customers?
This is DAP's defining risk in e-commerce. The customer sees a final checkout price, the parcel ships, and it looks delivered — until the courier demands duty, import VAT, and a handling fee before releasing it. That moment is one of the most reliable causes of delivery refusals, chargebacks, and abandoned parcels in cross-border selling, because the buyer experiences it as an unexpected bill rather than a known cost of the purchase.
The fix is not really an Incoterms decision — it's a checkout decision: either switch to DDP so duties are collected upfront, or, if DAP is kept, disclose the likely duty and VAT clearly at checkout so nothing is a surprise at the door.
What do brands get wrong with DAP?
- Advertising "free shipping" without mentioning duties. DAP shipping can be free while duties and import VAT are not — a gap that reads as bait-and-switch to a first-time cross-border customer even when the contract terms were technically correct.
- Assuming DAP and DDU are interchangeable in contracts. They describe the same outcome, but only DAP is the current, ICC-defined term. Using "DDU" in a formal contract invites ambiguity a court or arbitrator has to resolve informally.
- Underestimating the return-to-sender rate. Customers who refuse to pay duty on delivery generate returns that cost freight both ways — the saved duty cost on paper is often smaller than the return logistics it triggers.
- Not testing which model actually converts better. DAP can look cheaper at checkout, but DDP's all-in pricing often wins on completed sales and repeat purchase rate — the two are worth A/B testing rather than assuming.
FAQ
Who pays customs duties under DAP?
The buyer. The seller delivers the goods to the named destination and covers freight and export clearance, but import clearance, duties, and import taxes are the buyer's responsibility on arrival.
Is DAP the same as DDU?
They describe the same commercial outcome — the buyer pays duty at delivery — but DDU was formally retired from the Incoterms rules in 2010 and replaced by DAP. DDU still appears informally in e-commerce, but contracts should use DAP.
Should I use DAP or DDP for my e-commerce shipments?
DAP can look cheaper at checkout but risks surprise duty charges that cause refused deliveries and returns. DDP costs more upfront but gives customers a final, no-surprises price. Most brands serious about cross-border conversion move toward DDP once volume justifies the compliance setup it requires.
Choosing between DAP and DDP is really a choice about who absorbs the compliance work — and DDP only works well with real import and VAT infrastructure behind it. eBrands provides that infrastructure as your Merchant of Record, so DDP becomes simple instead of risky — see how it works for physical-goods brands.
