Delivered at Place
Delivered at Place (DAP) is an Incoterm under which the seller pays transport to the destination but the buyer pays import duties and taxes, and in ecommerce it is often called DDU (delivered duties unpaid).
Why it matters for ecommerce brands
DAP lowers your shipping cost and checkout price, but it puts duty, tax, and clearance on the buyer, which often leads to surprise bills and refused deliveries. On a cross-border DTC order, the carrier collects those charges before or at delivery, often with a brokerage fee on top. For example, a Canadian customer who buys a $200 jacket may owe $40 or more in tax and fees before release. If 10% of 500 monthly orders are refused, you pay return freight on 50 parcels and lose those sales. Many brands switch their busiest international lanes to DDP.
Origin
Delivered at Place was introduced in the Incoterms 2010 revision, replacing older terms such as DAF, DES and DDU with a single term for delivery at a named destination.
Common questions
- What is the difference between DAP and DDP?
- Under DAP, the seller delivers to the named destination, but the buyer pays import duties and taxes and handles clearance. Under DDP, the seller also clears the goods for import and pays duties and taxes.
- Is DDU the same as DAP?
- Mostly. DDU was an Incoterm dropped in 2010 and replaced by DAP, but carriers and ecommerce platforms still use DDU to mean the recipient pays duties and taxes.
- Who pays duties under DAP?
- The buyer pays import duties, taxes, and clearance costs, while the seller pays transport to the named destination. In ecommerce, the carrier usually collects these from the recipient before or at delivery.