Delivered at Place Unloaded (DPU) is an international trade term, also known as an Incoterm, that outlines the seller’s responsibilities for delivering goods to the buyer at a specified destination, as well as arranging and paying for unloading at that destination. DPU indicates that the seller fulfills their obligation when the goods are delivered to the buyer at the agreed-upon destination, ready for unloading, and the seller covers the costs and risks associated with unloading.
Key points related to Delivered at Place Unloaded (DPU) in supply chain and international trade:
- Delivery Point: Under DPU terms, the seller’s responsibility is fulfilled when the goods are delivered to the buyer at the agreed-upon destination. This could be the buyer’s premises, a warehouse, or another designated location.
- Transportation Responsibility: The seller is responsible for arranging and paying for the main carriage (transportation) of the goods to the agreed-upon destination. This could involve multiple modes of transport, such as land, sea, air, or a combination.
- Unloading Responsibility: The seller is also responsible for arranging and paying for the unloading of the goods at the agreed-upon destination. This includes costs and risks associated with the unloading process.
- Risk Transfer: The risk of loss or damage to the goods shifts from the seller to the buyer upon delivery of the goods at the agreed-upon destination.
- Cost Allocation: The seller covers the costs of transporting the goods to the agreed-upon destination and the unloading process. The buyer is responsible for all subsequent costs, including customs duties, taxes, and any charges associated with the goods after unloading.
- Applicability: DPU terms are suitable when the buyer wants the seller to handle transportation to a specific destination and also arrange for unloading.
- Documentation: The seller is responsible for providing the necessary export documentation and other documents required for transportation, customs clearance, unloading, and delivery.
- Risk and Control: The buyer assumes the risk once the goods are delivered and unloaded at the agreed-upon destination. The buyer also has control over the unloading process and subsequent distribution.
- Clear Communication: Precise communication between the parties is crucial when using DPU terms to ensure a shared understanding of the delivery point, unloading responsibilities, and other details.
DPU is one of the Incoterms that help define the terms of delivery, risk, responsibility, unloading, and distribution between buyers and sellers in international trade. The choice of Incoterm, such as DPU, is essential to ensure that both parties understand their obligations, costs, and risks associated with the transaction.
Seller’s Responsibility Under DPU
- Delivery of goods at the specified place
- Preparing invoices and documents
- Packaging and marking
- Transportation of the goods in the country of origin
- Customs handling fees in the country of origin
- Charges in the country of origin
- Proof of delivery
- Export formalities and licenses
- Loading and unloading charges
Buyer’s Responsibility Under DPU
- Goods payment according to the sales contract
- Import formalities and licenses
- Customs handling fees in the destination country
- Payment of taxes and duties
- Cost of delivery to the buyer
DPU Vs. DAP ; What’s the Difference?
The seller must ensure that he can manage unloading at the specified location under DPU Incoterms. If the parties intend for the seller to bear the risk and cost of unloading, the DPU rule should be avoided and a DAP (Delivered at Place) should be used instead.
The only Incoterm in which the products are delivered and unloaded at the destination is DPU. The only difference between DPU and DAP is that the items in DPU are delivered unloaded, whereas the goods in DAP are delivered ready to unload.
Cargo Insurance in DPU
There is no obligation to make an insurance contract when using DPU Incoterms.
DPU was previously known as DAT for “Delivered at Terminal” in Incoterms 2010. It requires the seller to place the goods at the buyer’s disposal once they have been unloaded from the arriving carrier.
The only Incoterm requiring the seller to unload goods at the destination is DPU.
DPU can be used for any mode of transportation, including air and sea. A particular destination should be specified and agreed upon by the buyer and seller according to this incoterm.
DPU requires the seller to clear goods for export, but does not force the seller to clear them for import, pay import duty, or complete import customs formalities.
Seller’s Responsibility Under DPU
- Delivery of goods at the specified place
- Preparing invoices and documents
- Packaging and marking
- Transportation of the goods in the country of origin
- Customs handling fees in the country of origin
- Charges in the country of origin
- Proof of delivery
- Export formalities and licenses
- Loading and unloading charges
Buyer’s Responsibility Under DPU
- Goods payment according to the sales contract
- Import formalities and licenses
- Customs handling fees in the destination country
- Payment of taxes and duties
- Cost of delivery to the buyer
DPU Vs. DAP ; What’s the Difference?
The seller must ensure that he can manage unloading at the specified location under DPU Incoterms. If the parties intend for the seller to bear the risk and cost of unloading, the DPU rule should be avoided and a DAP (Delivered at Place) should be used instead.
The only Incoterm in which the products are delivered and unloaded at the destination is DPU. The only difference between DPU and DAP is that the items in DPU are delivered unloaded, whereas the goods in DAP are delivered ready to unload.
Cargo Insurance in DPU
There is no obligation to make an insurance contract when using DPU Incoterms.
