Incoterms DPU – what does Delivered at Place Unloaded mean?
In international trade, precisely defining the terms of delivery of goods is crucial.
Incoterms 2020 are rules developed by the International Chamber of Commerce – the world’s largest association of entrepreneurs from various industries and over 100 countries. These are trade rules that help avoid misunderstandings and clearly indicate who is responsible for transport, costs and bears the risk during a transaction.
One such rule is DPU – Delivered at Place Unloaded.
Read also: What are Incoterms? International sales terms in practice >>>
The DPU Incoterms rule in a nutshell – definition
The Incoterms DPU rule means that the seller delivers the goods to the designated destination and unloads them from the arriving means of transport. This is the only Incoterms 2020 rule in which the seller assumes the obligation and risk of unloading the goods at the agreed point.
In practice, DPU (Delivered at Place Unloaded) means that the goods are considered delivered only when they have been unloaded and are at the buyer’s full disposal. The seller bears all costs related to transport and unloading until the goods are delivered to their destination.
The buyer, on the other hand, assumes responsibility only after unloading is complete, including further import formalities, customs clearance costs and additional transport costs.
Obligations of the buyer and seller in DPU
In the DPU Incoterms 2020 rule, the seller is responsible for delivering the goods to the designated destination and unloading them, while the buyer assumes responsibility only after the unloading of the goods has been completed.
Scope and obligations of the seller in DPU Incoterms
The seller’s obligations include organising the transport of the goods, insuring them to the designated destination and unloading them at the agreed point.
This means that the seller delivers the goods at their own expense and bears the full risk until unloading is complete.
The key obligations of the seller are:
- to conclude a contract of carriage covering the entire transport to the agreed destination,
- to organise the unloading of the goods at the designated destination,
- to provide the necessary documents to the buyer,
- to cover all transport costs and costs related to unloading.
Scope and obligations of the buyer in DPU Incoterms 2020
The buyer’s obligations begin when the goods have been delivered to their destination and have been effectively unloaded. The buyer bears the risks and costs associated with further transport, import clearance and all customs formalities.
Key obligations of the buyer:
- taking delivery of the goods after unloading,
- covering the costs associated with import clearance and import formalities,
- providing import documents to the relevant authorities,
- organising further transport and storage at their own expense.
Risk and time of delivery
In DPU, the time of delivery occurs when the goods have been unloaded at the designated destination and are ready for the buyer’s disposal.
From that moment on, the risk passes from the seller to the buyer.
Until unloading, the seller bears the risk of loss and damage to the goods, as well as the costs associated with transport. After unloading, the buyer bears the risk associated with further transport.
Comparison: DPU vs DAP, CPT, CIP (table)
DPU differs from other Incoterms 2020 rules in that it is the only Incoterms rule in which the seller unloads the goods at the designated destination. In DAP, CPT and CIP, the seller has no such obligation and the risk is transferred earlier.
Tabela porównawcza – DPU vs DAP, CPT, CIP
| DPU (Delivered at Place Unloaded) | DAP (Delivered at Place) | CPT (Carriage Paid To) | CIP (Carriage and Insurance Paid To) | |
| Transfer of risk | After unloading at the designated destination | Before unloading, at the destination | After handing over the goods to the first carrier | After handing over the goods to the carrier |
| Unloading of goods | Seller’s obligation | Â Buyer’s obligation | Â Buyer’s obligation | Â Buyer’s obligation |
| Transport costs | Covered by the seller to the place of destination, with unloading | Covered by the seller to the place of destination, without unloading | Covered by the seller to the place of destination | Covered by the seller, including insurance |
| Risk of loss/damage | Seller’s risk until unloading | Seller’s risk until delivery, but without unloading | Risk passes to the buyer upon transfer to the carrier | Risk passes to the buyer upon transfer to the carrier |
The DPU Incoterms 2020 rule is unique in that the seller not only organises transport, but also unloads the goods at the destination.
In DAP, the seller’s obligations end before unloading, and in CPT and CIP, the risk passes to the buyer upon delivery of the goods to the first carrier. DPU is therefore advantageous when the buyer expects full logistics service until the moment of physical unloading.
Summary
The Incoterms 2020 DPU (Delivered at Place Unloaded) rule is a practical solution in which the seller is responsible for delivering the goods to the designated destination and then unloading them.
It is this element that distinguishes DPU from other rules commonly used in international trade.
Key points to remember:
- The seller bears all transport costs and must also bear the costs and be able to organise unloading at the designated destination.
- The buyer only assumes responsibility after unloading – from that point on, they bear the costs and risks of further distribution.
- It is essential to specify the place of delivery and unloading precisely in the sales contract to avoid disputes.
Frequently asked questions
What is DPU?
DPU is an Incoterms 2020 rule in which the seller delivers the goods to the designated destination and unloads them from the arriving means of transport. The risk of loss or damage to the goods passes to the buyer only after unloading is complete.
How does DPU differ from CIP?
In DPU, the seller is responsible for the goods until they are unloaded at the destination, while in CIP, the risk passes to the buyer as soon as the goods are handed over to the carrier. In addition, in CIP, insurance paid by the seller is mandatory, while in DPU there is no such obligation.
Read also: Incoterms CIP – what does Carriage and Insurance Paid mean? >>>
How does CPT differ from DPU?
In CPT, the risk passes to the buyer when the goods are handed over to the first carrier, while in DPU it only passes after unloading at the designated destination.
This makes DPU more convenient and secure for the buyer, and also reduces the cost of unloading.
Read also: CPT Incoterms 2020 – what does Carriage Paid To mean? >>>