What Is DAP? Unloading, Import Clearance, and DAP vs DDP vs DPU

DAP is a Group D rule where the seller brings the cargo all the way to the destination. But if "seller to arrival" lulls you into thinking the job is done, you miss that unloading and import clearance fall to the buyer, and the goods stall at the destination.

This article looks at DAP alone in depth. For a comparison of all 11 rules, see the complete Incoterms 2020 guide.

What Is DAP?

DAP (Delivered at Place) is the Incoterms rule under which the seller delivers the goods ready for unloading, on the arriving means of transport, at the named destination. It works for any mode of transport and sits in Group D, where the seller is responsible to the destination. In the contract you write both the rule and the place, like "DAP Seoul."

Who Bears What Under DAP

The seller carries the goods safely to the destination; the buyer takes over from unloading through import clearance and duties.

Both Risk and Cost Run to the Destination

Because DAP is Group D, both the cost divide and the risk divide sit at the destination. Risk and cost pass together at the moment the goods are placed at the buyer's disposal, ready for unloading, at the destination. Any transport mishap before that is on the seller. But since unloading and import clearance after delivery fall to the buyer, any delay or cost in that stretch is the buyer's.

DAP vs DDP: Who Handles Import Clearance and Duty

DDP is the rule most often confused with DAP. The difference is a single thing: who bears import clearance and duty.

This difference matters for tax. Reclaiming import VAT as input tax requires the import tax invoice to be in the buyer's name (as the actual importer), and since the buyer clears import directly under DAP, that requirement is easy to meet. With DDP, if the seller is declared as the importer, the buyer cannot reclaim the 10% VAT, a trap that can make DAP the safer choice for a formal import.

DAP vs DPU: Who Handles Unloading

DAP and DPU both have the seller carry the goods to the destination, but they differ on who unloads.

If the destination has no unloading gear such as a forklift or crane, DPU, where the seller unloads too, is easier. Conversely, if the buyer's warehouse has handling equipment, DAP is the natural fit.

The DAP Trap: Unloading Gear and Import Clearance Readiness

Two things are easy to miss under DAP.

• Unloading gear: even once the cargo reaches the destination, if there is no equipment or labor to unload it, waiting costs pile up. For heavy or oversized cargo, line up the handling means before arrival.
• Import clearance: import clearance is the buyer's job, so if the paperwork or permits are late, the goods cannot be released even after they arrive. Risk has already passed while demurrage keeps building, so finish clearance prep before the cargo arrives.

When to Use DAP

• When it is a formal import and reclaiming input VAT matters: clearing in the buyer's name makes the requirement easy to satisfy.
• When the buyer has import-clearance capability and unloading equipment: leave only the transport to destination to the seller and keep clearance under your own control.

If you want the seller to handle clearance and duty right to your door, consider DDP; if you want the seller to unload too, consider DPU.

Import Duty and DAP

Under DAP the buyer pays duty and import VAT. Korea assesses customs value on a CIF basis (freight and insurance included), and since DAP already includes freight and insurance to the destination, the customs value is calculated from that. To gauge how much duty and VAT are added on top of the goods value, use the import duty calculator.

This guide is for general information. Unloading and import-clearance responsibilities and customs valuation vary with each deal and declaration method, so confirm with a customs broker or specialist.