Delivered at Place Unloaded (DPU): Incoterms 2020

Detailed explanation of Delivered at Place Unloaded (DPU) Incoterm including definitions, responsibilities, examples, historical context, and frequently asked questions (FAQs).

Delivered at Place Unloaded (DPU) is an Incoterm, introduced in the Incoterms 2020 by the International Chamber of Commerce (ICC). This term denotes that the seller is responsible for delivering and unloading the goods at a specified destination, risking at their expense. Once the goods are unloaded at the agreed destination, the risk passes from the seller to the buyer, who then manages any subsequent import procedures, including customs clearance and payment of import duties and taxes.

Responsibilities

Seller’s Responsibilities

• Transport and Delivery: The seller handles all logistics up to the unloading of the goods at the specified location.
• Insurance: Although not mandatory, it is generally advisable for the seller to insure the goods up to the delivery point.
• Risk and Cost: The seller bears all risks and costs associated with transporting and unloading the goods at the named destination.

Buyer’s Responsibilities

• Import Procedures: The buyer must manage all import formalities once the goods are unloaded. This includes customs clearance and payment of any import duties and taxes.
• Further Transport: Any transportation beyond the delivery point is the buyer’s responsibility.

Application Examples

• Automobile Industry: A car manufacturer in Germany sells vehicles to a dealership in Brazil. Using DPU terms, the manufacturer is responsible for shipping and unloading the cars at the agreed delivery point in Brazil. The dealership in Brazil then handles the import formalities and further distribution.

• Consumer Electronics: An electronics company in Japan exports gadgets to retailers in the USA. Under DPU terms, the Japanese company arranges the transport, ensures the goods are unloaded at a U.S. warehouse, and leaves the import customs procedures to the American buyers.

Historical Context and Comparisons

Historical Development

DPU replaced the previous term Delivered at Terminal (DAT) in Incoterms 2020. This update reflects the broader applicability of the term, making it not restricted to terminals only but encompassing any specified place.

Comparisons with Other Incoterms

• DPU vs. DAP (Delivered at Place): In DAP, the seller bears the cost and risk until the goods are delivered but does not include unloading. DPU includes unloading at the destination.
• DPU vs. CIF (Cost, Insurance, and Freight): In CIF, the seller covers costs, insurance, and freight up to the port of destination, but unlike DPU, does not cover unloading.

FAQs

Q1: Is insurance mandatory for the seller in DPU?

No, insurance is not mandatory, but it is advisable for the seller to insure the goods up to the point of delivery and unloading to mitigate risks.

Q2: Can DPU terms be applied for inland transport?

Yes, DPU can be used for any mode of transport including inland, sea, air, or multimodal transport, as long as the place of unloading is clearly specified.

Q3: What happens if the seller cannot unload the goods?

If the seller fails to unload the goods, they remain responsible for any additional costs or risks until the goods are successfully unloaded at the agreed place.

References

• International Chamber of Commerce (ICC) - Incoterms 2020
• Export.gov - Incoterms Guidance
• “Incoterms 2020 Explained”, Freightos, Freightos Guide

Summary

The Delivered at Place Unloaded (DPU) Incoterm designates the seller’s responsibility to transport and unload goods at a specified location, at which point the buyer takes over for import formalities. This term is significant for ensuring clarity in international shipping obligations, fostering smoother transitions of goods from sellers to buyers. Understanding DPU and its nuances are crucial for international trade compliance and effective logistics management.