CIF vs DAP: who pays what

CIF is Cost, Insurance and Freight. DAP is Delivered at Place. Incoterms 2020.

The difference that matters

Full cost split

Cost blockCIFDAP
Export clearanceSellerSeller
Carriage to port / terminalSellerSeller
Loading onto main carriageSellerSeller
Main carriage (freight)SellerSeller
InsuranceSellerNeither obliged
Unloading at destinationBuyerBuyer
Import clearanceBuyerBuyer
Duties and import taxesBuyerBuyer
Risk passesWhen the goods are loaded on board at origin — same as CFR.At the named destination, with the goods still on the arriving vehicle.
Transport modeSea / inland waterwayAny mode

What people get wrong

CIF

The required cover is the minimum level, not all-risks. Buyers who assume they are fully covered find out at claim time.

DAP

If the buyer is slow to clear customs, the goods sit and the demurrage lands on the seller, who still controls the carriage contract.

Questions

What is the main difference between CIF and DAP?
They split 1 cost block differently. insurance falls to the seller under CIF and the none under DAP.
Where does risk pass under CIF?
When the goods are loaded on board at origin — same as CFR.
Where does risk pass under DAP?
At the named destination, with the goods still on the arriving vehicle.
Can CIF and DAP both be used for container shipments?
DAP works for any mode of transport. CIF is written for sea and inland waterway transport only.

Whichever term you agree, the paperwork has to say so

The Incoterm and named place belong on the commercial invoice, the packing list and the shipper's instructions — spelled the same way on each. ovrseas generates the set from one entry so they cannot disagree with each other.

Commercial invoice template

Compare other pairs

CFR vs CIFCFR vs DAPCIF vs CIPCIF vs CPTCIF vs DDPCIF vs DPUCIF vs EXWCIF vs FAS

Incoterms® is a registered trademark of the International Chamber of Commerce. This page is an independent summary of how costs and risk are allocated and is not affiliated with or endorsed by ICC. For contract drafting, use the official Incoterms® 2020 rules published by ICC.