CPT vs DAP: who pays what

CPT is Carriage Paid To. DAP is Delivered at Place. Incoterms 2020.

The difference that matters

The cost split is identical. What separates them is where risk passes — see below.

Full cost split

Cost blockCPTDAP
Export clearanceSellerSeller
Carriage to port / terminalSellerSeller
Loading onto main carriageSellerSeller
Main carriage (freight)SellerSeller
InsuranceNeither obligedNeither obliged
Unloading at destinationBuyerBuyer
Import clearanceBuyerBuyer
Duties and import taxesBuyerBuyer
Risk passesWhen the goods are handed to the first carrier — not at the destination the seller is paying to reach.At the named destination, with the goods still on the arriving vehicle.
Transport modeAny modeAny mode

What people get wrong

CPT

With two carriers, risk passes at the first one. A seller shipping by truck then sea has already transferred risk at the truck.

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 CPT and DAP?
The cost split is identical. They differ in where risk passes: CPT — When the goods are handed to the first carrier — not at the destination the seller is paying to reach. DAP — At the named destination, with the goods still on the arriving vehicle.
Where does risk pass under CPT?
When the goods are handed to the first carrier — not at the destination the seller is paying to reach.
Where does risk pass under DAP?
At the named destination, with the goods still on the arriving vehicle.
Can CPT and DAP both be used for container shipments?
Yes. Both work for any mode of transport, including containers, air and road.

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 CPTCFR vs DAPCIF vs CPTCIF vs DAPCIP vs CPTCIP vs DAPCPT vs DDPCPT vs DPU

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.