Under Incoterms DAP, the seller delivers the goods to the named place and covers the transport costs, but the import clearance and payment of duty and VAT in the destination country fall on the buyer, unless the contract states otherwise. This distinction between delivery and clearance is often a source of confusion in early UK-EU transactions.
Contents
In brief — what you'll learn
- ✓ How to prepare the process and documents
- ✓ How the declaration and control process works
- ✓ How to maintain compliance and settlements
How to prepare the process and documents
Scope of responsibility of the parties
Minimum data set for the declaration
From classifying the goods, through the customs value, to confirming that the relevant declarations have been lodged — every element must be documented before the customs declaration is submitted. The minimum data set includes: the goods' CN code, country of origin, the transaction value in the contract currency, the importer's EORI number, and transport documents confirming the delivery place matches the DAP clause.
You can find the contact form and price list on the Easy Clearance customs agency website.
How the declaration and control process works
The customs declaration procedure under DAP terms requires the importer to lodge the import declaration before the goods are released, because it is the importer who is responsible for settling import duty and VAT with the national tax authority.
Operational stages from notification to release
Most common risk points and how to limit them
How to maintain compliance and settlements
Maintaining compliant customs settlements under DAP terms requires systematic record-keeping of transaction and transport documents that confirm the division of duties between the parties to the contract.
Record-keeping, corrections and evidence of due diligence
The importer is required to keep, for at least 5 years: the originals or copies of commercial invoices, transport documents, confirmations of customs declarations, and proof of payment of duty and taxes. If the customs value needs to be corrected, an amendment to the declaration must be filed in the official system without delay, keeping a full audit trail documenting the basis for the change.
Working with a customs agency and internal audit
A customs agency acting as a direct or indirect representative of the importer should receive the complete set of documents at least 24 hours before the goods are due to arrive. A regular internal audit of customs procedures — recommended every 6 months — helps detect discrepancies between the contractual terms and the actual course of clearances before they become the subject of an official audit.
Summary
In summary: when it comes to "who pays duty under Incoterms DAP?", the key is to run the process according to current official guidance, with a clear division of responsibilities — the exporter delivers the goods to the agreed place, while the importer covers duty, import VAT and any charges relating to customs clearance. This approach reduces delays, cuts the number of corrections and makes it easier to defend your records during an audit. If any requirement is unclear, check the current guidance from the National Revenue Administration or consult an experienced customs agency.
Legal basis and sources
If regulations or system notices are updated, check the current guidance on GOV.UK or with KAS before submitting a declaration.
Frequently asked questions
Who pays customs duty under DAP delivery terms?
Under DAP (Delivered at Place) terms, the obligation to pay import duty, import VAT and any customs charges rests with the importer (buyer). The seller covers transport and delivery costs to the agreed destination, but is not responsible for import clearance or the related tax liabilities.
Can the exporter voluntarily pay the duty instead of the importer under DAP?
Technically this is only possible if the parties clearly set out such an arrangement in the contract; standard DAP terms do not provide for it. Shifting customs responsibility without changing the Incoterm to DDP (Delivered Duty Paid) can lead to legal and tax complications — it is advisable to use the Incoterms clause that actually matches the intended division of costs.
What documents are needed for import clearance under DAP?
The importer must provide: a commercial invoice showing the transaction value, a transport document (CMR, bill of lading or air waybill), a packing list, a certificate of origin (if tariff preference applies) and an EORI number. For regulated goods, additional permits or phytosanitary/veterinary certificates may be required.
How does DAP differ from DDP in terms of customs responsibility?
Under DDP (Delivered Duty Paid), the seller covers all costs, including import duty and taxes, and is responsible for customs clearance in the destination country. Under DAP, the importer manages import clearance itself and bears its costs. DDP is more convenient for the buyer, but requires the seller to know the import country's customs rules and hold an EORI number there.
What happens if the importer fails to complete customs formalities under DAP?
If the importer fails to complete customs formalities under DAP terms, this can result in: the goods being held by customs authorities, interest charged on outstanding liabilities, criminal tax proceedings, and additional storage costs in a customs warehouse. This risk rests entirely with the importer — the seller has fulfilled its obligations once the goods reach the agreed destination.
Related guides
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