How to Write a DAP Clause in Your Sales Contract (Template Included)

A truck can reach the right city, stop at the wrong gate, and still leave buyer and seller arguing about who bears the risk. Under DAP, that argument turns on one point: the named place, written in full, and the moment the goods are placed at the buyer's disposal on the arriving vehicle, ready for unloading.

This article gives drafting guidance only and is not legal advice. Ask a lawyer to review it before the goods move.

What the document is for

The DAP clause is the delivery section inside a sales contract. DAP means Delivered at Place. Under Incoterms 2020, the seller delivers the goods and transfers the risk to the buyer once the goods are at the agreed place of destination, ready for unloading.¹ That place may be an airport, a terminal, a port, or the buyer's premises.¹

DAP works for any mode, including multimodal shipments.¹ In DAP, delivery and destination are the same place, unlike CIP, where delivery and risk transfer occur on handover to the carrier at origin, even though the seller pays carriage to the destination.¹

The seller must arrange and pay for carriage to the agreed destination, and handle export clearance and transit formalities.¹ The seller bears transit risk up to that destination, handles export formalities and main carriage, but stops short of import clearance.^{1 2}

The buyer takes delivery, typically by unloading at its own risk and expense, and handles and pays for import clearance.¹ The buyer bears unloading costs and risks, unless the carriage contract includes unloading costs for the seller, in which case the buyer still bears only the risks during unloading.¹

Neither party has an insurance obligation under DAP: the seller need not arrange insurance for the buyer, although it bears transit risk to the destination.¹ Insurance is not required, but the parties may agree to include it.³ The clause must state that position expressly.

The clause does not set price, payment terms, or ownership. It fixes delivery, risk, carriage, unloading, and clearance, at one named place.

Required fields explained

Fill in every field before signing.

• Named place of destination, in full. Write "DAP (named place of destination) Incoterms 2020". Name the warehouse, terminal, or site with its full address, and the point within it, such as a named gate or dock. Risk and cost transfer at this point, so it must be identified precisely.³

• Incoterms version. Write "Incoterms 2020" in full, beside the rule and the named place. Without the edition, the governing rules are not fixed.

• Delivery event and risk transfer. State in one sentence that delivery occurs, and risk passes, when the goods are placed at the buyer's disposal on the arriving vehicle, ready for unloading. The goods are still loaded at that moment.¹

• Unloading responsibility. State that unloading is for the buyer, at the buyer's cost and risk, unless agreed otherwise. If the seller's carriage contract includes unloading costs, state that, and that the buyer still bears the risk during unloading.¹

• Main carriage scope. State that the seller will arrange and pay for carriage to the named place, and what it covers and excludes.¹

• Clearance split. State that the seller completes export and transit clearance, and the buyer manages and pays import clearance, duty, and taxes.^{1 3}

• Insurance position, stated expressly. State that DAP imposes no insurance obligation on either party, then state any agreed cover: who buys it, for whose benefit, for what period, and who pays.^{1 3}

• Arrival notice and proof of delivery. State how and when the seller will notify the buyer of arrival, so the buyer can take delivery.¹ State what document will prove delivery.

• Delivery window and delay. State the arrival date or window, and what happens if the buyer cannot take delivery or clear import on time. Where delivery follows import clearance to the buyer's premises, state that sequence.

• Destination charges and onward carriage. State who pays destination charges outside the seller's carriage arrangement, and that onward carriage beyond the named place is for the buyer unless agreed otherwise.

• Goods covered. Name the goods, quantity, marks, and order number, so the arrival notice matches the contract.

Template (table)

Copy the table and fill in every row.

If any row is blank, the clause is not finished.

Filled example

All names, figures, and dates below are examples only.

Example clause. Delivery is DAP Example Retail SAS Warehouse, 18 Rue des Artisans, Lyon, France, Incoterms 2020. Example Home Textiles Ltd will arrange and pay for carriage of 320 cartons of cotton bed sheets, order number EX-7402, from Chattogram to that warehouse, and will notify the buyer on arrival. Delivery occurs, and risk passes to the buyer, when the goods are placed at the buyer's disposal on the arriving truck at that warehouse, ready for unloading, on or between 12 and 14 November. The buyer will unload at its own cost and risk, and will manage and pay for import clearance, duty, and taxes. No cover is bought for the buyer under this clause; the buyer will arrange its own cover from arrival, and the seller bears the transit risk before arrival. The example contract price is USD 42,500. Onward carriage beyond the Lyon warehouse is for the buyer.

The example turns on the address, not the city: "DAP Lyon" alone could mean any Lyon terminal, not the warehouse gate.

Common errors

Naming only a city. Risk and cost transfer at the named place, so it must be identified precisely.³

Writing delivery on unloading. "Delivery when unloaded" describes DPU, not DAP. Under DAP, delivery is when the goods are at the buyer's disposal at the destination, still loaded.¹

Writing delivery on handover to the carrier. "Delivery when handed to the first carrier" describes CPT or CIP, not DAP. Under DAP, risk stays with the seller until arrival at the named place.³

Assuming the seller unloads. Under DAP, the seller is not required to unload unless specified.³ Book labor and equipment before arrival.

Assuming the seller clears import. Under DAP, the buyer must manage and pay for all import clearance.¹ If the seller is to clear import and pay duty, discuss DDP, not DAP.

Leaving insurance silent. DAP imposes no insurance obligation, so silence invites each party to assume the other is covered.^{1 3} State the position, even when no cover will be bought for the buyer.

Omitting the Incoterms version. Without "Incoterms 2020", the governing edition is not fixed. Write it beside the rule and the named place wherever the term repeats.

Omitting the arrival notice. Without notice on arrival, the buyer cannot plan unloading or clearance, and goods sit after risk has passed. Name the method, timing, and contact.

Treating a DAP price as duty-paid. A DAP price includes carriage to the named place, not import duty, clearance, or unloading.² Budget those buyer costs separately.

FAQs

Who issues this document?

No authority issues a DAP clause. It is a delivery section the buyer and seller draft and sign into their sales contract, using Incoterms 2020 DAP and the named place in full.

Which fields are mandatory?

The delivery term, edition, named place in full, delivery and risk sentence, unloading rule, carriage scope, clearance split, insurance position, arrival notice, and goods and order identification are all needed.

Can it be digital?

Yes. The clause is contract text, so it can sit in a signed contract in paper or digital form as the parties agree. Keep the clause, arrival notice, and proof of delivery together in the contract record.

What errors cause delays?

A vague named place, a missing point within it, plans made only after arrival, silent insurance, and a missing arrival notice cause the most delays.

Next steps on Exportain

Read the Incoterms guide for shipments from Bangladesh to compare DAP with the other ten rules, and the CIF guide to weigh a sea-only insured term against an any-mode arrival term. When ready to buy, read how to buy from Bangladesh, then Post a free RFQ on Exportain stating the quantity, named place, and Incoterm.