Incoterms
DAP (Delivered at Place)
Incoterm under which the seller delivers to a named destination, ready for unloading, and the buyer handles import clearance.
In four languages
Under DAP the seller bears all costs and risks of transport to the named place, for example the buyer's warehouse, and delivery happens when the goods arrive on the vehicle, ready for unloading. The buyer unloads, clears import customs and pays duty and VAT. DAP is common for road and rail freight to Central Asia, Afghanistan and Turkey, and for sea shipments where the buyer wants door delivery but clears customs itself. For a VAT-registered Gulf importer it is often cleaner than DDP, because the buyer stays importer of record and can recover import VAT. The contract should say who pays for delays at destination caused by late clearance. Example: a trader agrees DAP its warehouse in Dubai Investments Park. The supplier delivers to the door, and the trader's broker clears the goods in the trader's name.
Questions
Who pays customs duty under DAP?
The buyer. The seller delivers to the named place, and import clearance, duty and VAT are the buyer's responsibility.
What is the difference between DAP and DDP?
Under DDP the seller also clears import and pays duty and VAT. Under DAP the buyer does those.