DAP
Delivered at Place
Seller delivers goods at destination, ready for unloading. Buyer handles import clearance and unloading.
Visual Guide - Cost & Risk Transfer
Obligations & Cost Breakdown
Seller Obligations
- Deliver goods at named destination ready for unloading
- Bear all risks until destination
- Clear for export
- Arrange all transport
Cost Responsibility:
Buyer Obligations
- Unload goods at destination
- Import clearance and duties
- Pay import taxes
Cost Responsibility:
Risk Transfer Point
When goods placed at buyer's disposal at destination, ready for unloading
Insurance Requirement
Seller's responsibility (strongly recommended as seller bears risk until destination)
Real African Trade Examples
Machinery: South Africa → Nigeria
DAP JohannesburgMining equipment from Johannesburg
Intra-African trade where seller has regional logistics capability. Buyer avoids arranging complex cross-border transport.
CIP Lagos to cap seller's obligation at a terminal
Vehicles: Japan → Kenya
DAP YokohamaUsed vehicles for Kenyan market
Japanese used car exporters handle shipping to Mombasa. Kenyan buyers handle import duty and clearance which varies by vehicle age.
DDP Nairobi if seller handles all duties
Building Materials: Turkey → Ethiopia
DAP IstanbulCeramic tiles and fittings
Turkish exporters have established logistics routes to East Africa. DAP lets buyer handle Ethiopian customs (which can be complex).
CIP Addis for insurance coverage without import obligations
Common African Trade Usage
Increasingly popular for intra-African trade under AfCFTA. Used by established exporters with regional logistics networks. Common for machinery, vehicles, and construction materials where sellers have delivery capability. Growing in e-commerce cross-border trade.
Common Mistakes with DAP
Not Specifying Precise Delivery Address
The Mistake: Contract says 'DAP Nigeria' without a specific address or terminal.
The Problem: Nigeria is huge. Without a precise address, disputes arise about where exactly the seller's obligation ends.
The Solution: Always specify: 'DAP Warehouse 12, Apapa Industrial Estate, Lagos, Nigeria' with GPS coordinates if possible.
Not Considering Unloading
The Mistake: Seller doesn't account for unloading requirements at destination.
The Problem: Under DAP, seller delivers but buyer unloads. If unloading requires cranes or forklifts buyer doesn't have, goods sit.
The Solution: Discuss unloading capabilities before agreeing on DAP. Consider DPU if seller should unload.
When to Use DAP
Best For
- Door-to-door delivery
- When seller has logistics capability
- Intra-African trade
- E-commerce shipments
Avoid When
- When import duties are complex or unpredictable
- When seller lacks destination country expertise