Incoterm DPU

DPU, or Delivered at Place Unloaded, is an international trade term defined in the Incoterms rules published by the International Chamber of Commerce (ICC). DPU is a versatile Incoterm used for various modes of transportation, including road, rail, air, and sea. It outlines the responsibilities, costs, and risks between the seller and the buyer.

Delivery Point

In a DPU transaction, the seller is responsible for delivering the goods to the named destination (often a place, location, or buyer's premises) agreed upon by the buyer and seller. Importantly, the seller is responsible for unloading the goods at the named destination.

Seller's Responsibilities

Under DPU, the seller is responsible for:

  • Packaging and preparing the goods for export.
  • Transporting the goods to the named destination, which can be in the seller's own country or another country.
  • Paying for the transportation costs to the named destination.
  • Handling export customs formalities.
  • Providing the buyer with any necessary documents, like invoices, export licenses, or other documentation.
  • Unloading the goods at the named destination.

Buyer's Responsibilities

  • Receiving and taking possession of the goods at the named destination.
  • Handling import customs formalities, duties, taxes, and clearances.
  • Bearing any costs or risks incurred after the goods have been delivered and unloaded at the named destination.

Transfer of Risk

Risk is transferred from the seller to the buyer at the point when the goods are made available at the named destination, ready for unloading. The seller is responsible for the goods until they are ready to be taken over by the buyer. After unloading at the named destination, the buyer assumes the risks associated with the goods.

DPU is a flexible Incoterm that allows the seller to take on the responsibility for transportation, including unloading at the destination. It's often used when the buyer wants to have the goods delivered directly to their premises or another location of their choice, and the seller is willing to take on the responsibility for transportation and unloading. Clear specification of the named destination and a well-defined agreement between the parties are essential for a successful DPU transaction.