DPU Incoterms 2020: Delivered at Place Unloaded
Under DPU the seller delivers the goods to the named destination and unloads them there, at its own cost and risk. The buyer clears import and pays duties and taxes.
DPU Delivered at Place Unloaded
Any mode of transport
| Step | DPU |
|---|---|
| Export packing and marking | Seller |
| Loading at the seller's premises | Seller |
| Export customs clearance | Seller |
| Transport to the port or terminal | Seller |
| Terminal charges and loading at origin | Seller |
| Main carriage (ocean or air freight) | Seller |
| Cargo insurance | Not required by the rule |
| Unloading at destination terminal | Seller |
| Transport to the named place | Seller |
| Unloading at the named place | SellerRisk passes to the buyer here |
| Import clearance, duties and taxes | Buyer |
- DPU
- Risk passes: When the goods are unloaded at the named place of destination.
- Costs: The seller pays transport and unloading at the named place. The buyer pays import clearance, duties and taxes.
What does DPU mean?
DPU (Delivered at Place Unloaded) means the seller delivers when the goods have been unloaded from the arriving vehicle and placed at the buyer's disposal at the named place of destination. The seller pays and bears the risk of the transport and the unloading. The buyer clears import and pays duties and taxes. DPU works for any mode of transport and is the only Incoterms rule where the seller unloads at destination.
DPU replaced DAT
In Incoterms 2010 this rule was DAT (Delivered at Terminal), and the goods had to be unloaded at a terminal. Incoterms 2020 renamed it DPU so the place can be anywhere the goods can be unloaded: a terminal, a warehouse, a project site. If your contract still says DAT, it refers to the 2010 edition.
Seller and buyer obligations under DPU
| Seller | Buyer |
|---|---|
| Arranges and pays all transport to the named place | Takes delivery once the goods are unloaded |
| Unloads the goods at the named place and bears the risk until then | Clears import and pays duties and taxes |
| Clears export and any transit | Pays costs caused by late import clearance |
| Provides the documents the buyer needs to take the goods | Makes sure the place can receive the goods |
Example
A Chinese supplier ships a transformer "DPU Substation site, Km 14 Highway 7, Santiago, Chile, Incoterms® 2020". The supplier pays the sea and road transport and hires the crane that lifts the transformer off the trailer at the site. Once it is on the ground, the risk is the buyer's. The buyer's broker has already cleared the import.
DPU or DAP?
Use DPU only when the seller can actually unload at the destination, with its own equipment or a hired crane, and is ready to carry that risk. If the buyer has forklifts, a dock and staff, DAP is simpler and cheaper, because the buyer unloads. If the seller should also pay the import duties, the rule is DDP, where the buyer unloads.
Watch out for
- Site access. Agree who checks that trucks and cranes can reach the unloading point.
- Insurance. No insurance is required, but the seller carries the risk until unloading is complete, so it should insure.
Whatever the rule, the seller provides a commercial invoice that names the Incoterm and place, and usually a packing list. For quotes before the order, use a proforma invoice with the same rule written on it.
Features
- Who does each step under DPU
- Where risk passes, marked on the chart
- Compare DPU with DAP or any other rule
- Link to the Incoterms chooser
Frequently asked questions
What does DPU mean in Incoterms?
DPU means Delivered at Place Unloaded. The seller transports the goods to the named destination and unloads them there, bearing the cost and risk until unloading is complete.
What replaced DAT in Incoterms 2020?
DPU replaced DAT. The new rule lets the place of unloading be any place, not only a terminal.
Who pays import duty under DPU?
The buyer clears import and pays duties and taxes under DPU.
What is the difference between DPU and DAP?
Under DPU the seller unloads the goods at the destination; under DAP the buyer unloads. In both, the buyer handles import clearance.