Understanding the DAP Incoterm
DAP, FOB, CIF: what each acronym really changes for you, and why we always quote delivered to your warehouse.
Comparing two import offers without looking at the Incoterm makes no sense: depending on the acronym, the same price can hide several hundred euros per container of costs that remain yours.
The three you will meet
FOB (Free On Board): the seller delivers the goods on board the vessel at the port of departure. Everything after that — ocean freight, insurance, unloading, customs, road haulage — is yours.
CIF (Cost, Insurance and Freight): the seller pays freight and insurance to the destination port. But unloading, port charges, customs clearance and the final truck remain yours — and those are rarely small lines.
DAP (Delivered At Place): the seller delivers the goods at the agreed address, ready for unloading. They carry transport and risk up to that point. Only import duties and taxes remain with the buyer.
Why we quote DAP
Because a DAP price is directly comparable to a European supplier's price. You do not have to estimate freight, budget for port charges or manage a forwarder: the figure we give you is the pallet unloaded at your place.
It also commits us further. Under DAP, a transport delay or a customs problem is our business, not yours.
The point not to forget
Under DAP, customs duties and import VAT remain yours. That is the only line to add to our price to get your true landed cost. We give you the applicable customs codes so you can work it out before ordering.
The Incoterms referred to are those of the International Chamber of Commerce Incoterms® 2020 publication.
