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.

ovrseas

Free trial

ovrseas

CIF vs DAP: who pays what

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

CIF vs DAP share the same freight split — the seller pays main carriage in both — and part on two things. Under CIF the seller buys marine insurance for the buyer, yet risk passes to the buyer when the goods are loaded on board at origin; under DAP nobody is obliged to insure, and risk stays with the seller until the goods reach the named destination on the arriving vehicle. DAP vs CIF also differs by mode: CIF is sea-only, DAP works for any transport.

The difference that matters

Insurance:CIFSeller·DAPNeither obliged

Full cost split

Cost block	CIF	DAP
Export clearance	Seller	Seller
Carriage to port / terminal	Seller	Seller
Loading onto main carriage	Seller	Seller
Main carriage (freight)	Seller	Seller
Insurance	Seller	Neither obliged
Unloading at destination	Buyer	Buyer
Import clearance	Buyer	Buyer
Duties and import taxes	Buyer	Buyer
Risk passes	When the goods are loaded on board at origin — same as CFR.	At the named destination, with the goods still on the arriving vehicle.
Transport mode	Sea / inland waterway	Any 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 CIF CFR vs DAP CIF vs CIP CIF vs CPT CIF vs DDP CIF vs DPU CIF vs EXW CIF 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.