Delivered at Place Unloaded (DPU) – Incoterms in detail

The following article describes everything you need to know about the Incoterm “Cost and Freight” (CFR). In case of any questions or unclarities, do not hesitate to contact us.

Group D: Main Carriage Paid – Delivered at Place Unloaded (DPU)

Delivered at Place Unloaded (DPU) has been formerly referred to as Delivered at Terminal (DAT) and is part of the Incoterms 2020. DPU requires the seller to deliver the goods at the disposal of the buyer after the goods have been unloaded from the arriving means of transport. It is the only Incoterm rule that requires the seller to unload the goods at the place of destination. The DPU term can apply to any and even more than one mode of transport. Thus, the buyer and seller should agree on a named place of destination. Generally, the seller is responsible for the export packing, loading charges, delivery, export duties and taxes, origin terminal charges, loading on carriage, carriage charges and destination terminal charges. Whereas, the buyer is generally responsible for the delivery to the destination as well as for the import duties and taxes. As soon as the seller has delivered goods, the buyer bears all risks of loss or damage.

Why is DPU being used?

The DPU term defines who is responsible for which parts of the shipping process and what costs each party must pay.

When is DPU being used?

The Incoterm DPU can be used for deliveries to a destination terminal or other specified locations if either the unloading process is included within the freight price or if the seller has a special interest in monitoring the unloading process. Often DPU is being applied for consolidated containers with multiple consignees as it is the only term that obliges the seller to unload to goods.

Meaning, if a delivery has multiple consignees, the seller can break down the shipment in order to make the goods available for them. However, if the seller does not want to be responsible for handling the unloading of the goods, they should consider using a different Incoterm than DPU.

Example of Delivered at Place Unloaded (DPU) in action

Imagine you are exporting a shipment of goods from Germany to Ireland. When using DPU, you as the exporter would be accountable for loading and delivering the goods to the port of Ireland, as well as unloading them. You also would be responsible for the port charges and organizing the inland transport to deliver the goods to their named place of destination in Ireland. The importer in Ireland would then take over the responsibility for the goods and be liable for any additional costs such as customs duties and import taxes.

What are the Incoterms Obligations for DPU?

There are different obligations for the seller and the buyer that should be considered when using the Incoterm DPU.

 

Seller’s Obligations:

  • Costs (Export packaging, loading charge, export duty, taxes, export customs clearance, Insurance, terminal handling charges at origin and destination)
  • Shipment (delivery to port/place, freight charges, deliver to destination)
  • Loading on carriage and unloading at destination

 

Buyer’s Obligations:

  • Costs (local taxes, import duties and import customs clearance)

DPU vs. DDP

When using the Incoterm DPU (Delivered at Place Unloaded) the seller is only responsible for the export clearance and the buyer is responsible for the import clearance as well as all associated costs. Whereas for the Incoterm DDP (Delivered Duty Paid) the seller assumes the responsibility and costs of clearing the goods for import and export, including all related duties and taxes. Another difference can be found within the delivery point. Once the goods have been unloaded at the agreed-on place, the delivery is considered to be completed when using DPU. The Incoterm DDP on the other hand states, that the delivery is completed as soon as the goods are available to be unloaded at the place of destination, however they do not need to be unloaded in order to complete the delivery.

DPU vs. DAP

The main difference between DPU (Delivered at Place Unloaded) and DAP (Delivered at Place) is the delivery point. When the goods have been unloaded at the agreed-on place, the delivery is considered to be completed when using DPU. For DPU the seller is responsible for the unloading process. The Incoterm DAP on the other hand states, that the delivery is completed as soon as the goods are ready to be unloaded at the place of destination, but they do not have to be unloaded. Here the buyer is responsible for the unloading process.

 

How ALS can support you with the complexity of international commerce

ALS is an innovative, neutral, and globally active customs broker. We operate as a unified entity, where every member of our team, from your dedicated contacts to our board of directors, is committed to meeting your specified needs.

We are here to guide you through the process of international trade. Whether it’s speaking to one of our sales team, or requiring further guidance with our consultants, we offer everything to help facilitate your complete end-to-end customs solution. By law, we are not able to provide you with advice on which Incoterm you should use. However, we can provide you with information which you can use to make your decision.

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What are the various Incoterms? Learn more! 

Incoterms – short for international commcerial terms – are being used to clarify rules and terms of the international customs trade.

Learn more in our other articles about incoterms:

  • Ex Works (EXW)
  • Free Carrier (FCA)
  • Carriage Paid To (CPT)
  • Carriage and Insurance Paid To (CIP)
  • Delivered at Place (DAP)
  • Delivered at Place Unloaded (DPU)
  • Delivery at Frontier (DAF)
  • Delivery ex-Ship (DEX)
  • Delivered Duty Paid (DDP)
  • Deliver Duty Unpaid (DDU)
  • Free Alongside Ship (FAS)
  • Free on Board (FOB)
  • Cost and Freight (CFR)
  • Insurance, and Freight (CIF)