Delivered At Place Unloaded (DPU) Explained: What Does Delivered At Place Unloaded (DPU) Mean?
Delivered at place unloaded is an international trade term used in international sales contracts to say that the seller is responsible for delivering the goods to a named place of destination and unloading them there. It replaced the term “Delivered at Place” in the ICC’s Incoterms, Incoterms 2020 (DAP). The main difference between DAP and DPU is that under DPU, it is the seller’s job to unload the goods from the delivery vehicle.
It is important to spell out clearly in the sales contract what each party’s obligations and responsibilities are, as well as the specific requirements and instructions for the delivery of the goods under DPU.
What Are Incoterms?
International Commercial Terms, or “incoterms,” are a set of standard trade terms that spell out the rights and responsibilities of both buyers and sellers in international trade transactions. These terms say who is responsible for different parts of the transaction, like transporting the goods, paying for them, making sure they are insured, and getting them through customs.
The International Chamber of Commerce (ICC) publishes Incoterms and updates them from time to time to reflect changes in how business is done around the world. There are 11 incoterms in use right now. Some of them are EXW (Ex Works), FOB (Free on Board), CIF (Cost, Insurance, and Freight), and DDP (Delivered Duty Paid).
Each incoterm has its own set of rules that are used to figure out who is responsible for what and when the buyer takes over the risk of loss or damage to the goods from the seller.
By using incoterms, buyers and sellers can avoid misunderstandings and disputes and make sure that their international transactions are done in a clear and efficient way.
What Is the Meaning of Delivered at Place Unloaded (DPU)?
Delivered at Place Unloaded (DPU) is an international trade term used in international sales contracts to say that the seller is responsible for delivering the goods to a named place of destination, usually the buyer’s place of business or a port, and unloading them there.
Under DPU, the seller is responsible for all costs and risks related to getting the goods to the agreed-upon place of delivery. This includes any fees for unloading the goods and any customs duties or taxes. Once the goods have been unloaded, the buyer is responsible for any extra costs and risks, such as storage and transportation.
DPU is one of the 11 Incoterms put out by the International Chamber of Commerce (ICC). It replaced the term “Delivered at Place” in the most recent version of Incoterms, Incoterms 2020 (DAP). The main difference between DAP and DPU is that under DAP, it is the seller’s job to unload the goods from the delivery vehicle, but under DPU, it is the buyer’s job to do this.
As with any other Incoterm, it is important for the parties to a transaction to spell out clearly in the sales contract what each party’s obligations and responsibilities are, as well as the specific requirements and instructions for the delivery of the goods under DPU.
Delivery At Place Unloaded Obligations
Seller’s Obligations
Under the Delivery at Place Unloaded (DPU) Incoterm, the seller is responsible for a number of things, such as:
- Delivery of goods: The sales contract says that it is the seller’s job to get the goods to the place named in the contract.
- Loading the goods: It is the seller’s job to load the goods onto the mode of transportation, whether it’s a truck, ship, or something else.
- Export formalities: It is up to the seller to take care of any export formalities needed for the shipment of the goods, such as getting any licenses, permits, or authorizations that are needed.
- Transport and delivery costs: The seller is responsible for all costs related to getting the goods to the place named in the contract. This includes freight charges, insurance, and any other costs that are part of the shipment.
- Unloading the goods: It is up to the seller to unload the goods at the place named in the contract.
- Custom formalities: The seller is responsible for taking care of any formalities with customs that are needed for the goods to be brought into the destination country.
- Clearing for import: It is up to the seller to get any licenses, permits, or permissions needed for the goods to be brought into the country of destination.
- Risk transfer: The seller is responsible for the goods until they are unloaded at the named place of destination. At that point, the risk moves to the buyer.
It’s important to remember that the seller’s exact responsibilities can change depending on the terms of the sales contract. It is recommended that each party in a deal spell out their responsibilities in the contract so that there are no misunderstandings or disagreements.
Buyer’s Obligations
Under the Delivery at Place Unloaded (DPU) Incoterm, the buyer is responsible for several things, such as:
- Taking delivery of the goods: The buyer is responsible for getting the goods to the place named in the sales contract as the place where they will be sent.
- Unloading the goods: The buyer is responsible for getting the goods off the truck, ship, or other mode of transportation.
- Import formalities: It is up to the buyer to take care of any import formalities needed for the shipment of the goods. This includes getting any licenses, permits, or permissions that are needed.
- Transport and delivery costs: The buyer is responsible for all costs related to getting the goods from the named place of destination to their final destination, including any fees for unloading the goods.
- Custom formalities: The buyer is responsible for taking care of any formalities with customs that are needed to bring the goods into the country where they will be used.
- Clearing for import: The buyer is responsible for getting any licenses, permits, or permissions that are needed to bring the goods into the country where they will be used.
- Risk transfer: The buyer is responsible for the goods once they are unloaded at the place where they are going to be sent.
It’s important to remember that the buyer’s specific responsibilities can change based on the terms of the sales contract. It is recommended that each party in a deal spell out their responsibilities in the contract so that there are no misunderstandings or disagreements.
What Is The Difference Between Delivered At Place Unloaded (DPU) and Delivery At Place (DAP)?
The main difference between Delivered at Place Unloaded (DPU) and Delivery at Place (DAP) is who is in charge of unloading the goods at the named place of destination.
Under DAP, it is the seller’s job to get the goods to the place named as the destination, but it is not the seller’s job to get the goods off the vehicle that is delivering them. This means that the buyer is responsible for the cost and risk of unloading the goods, as well as any costs related to storage and further shipping.
Under DPU, on the other hand, it is the seller’s job to unload the goods from the delivery vehicle at the place where they are supposed to go. This means that the buyer is not responsible for any costs or risks related to getting the goods off the truck.
In short, the difference between DAP and DPU is who is responsible for the risk and cost of unloading the goods at the place of destination named in the contract. Under DAP, the buyer takes on the risk and cost. Under DPU, the seller is responsible for them.
It is important to remember that both DAP and DPU are part of the Incoterms published by the International Chamber of Commerce (ICC). Parties involved in an international trade transaction should carefully consider which Incoterm is best for their needs and define the buyer’s and seller’s obligations and responsibilities in the sales contract.
What Is The Difference Between Delivered At Place Unloaded (DPU) and Delivery Duty Paid (DDP)?
The main difference between Delivered at Place Unloaded (DPU) and Delivered Duty Paid (DDP) is where responsibility for the goods passes from the seller to the buyer.
Under DPU, the seller is responsible for getting the goods to a specific place and unloading them from the vehicle that is delivering them. Once the goods have been unloaded, the buyer is responsible for any extra costs and risks, such as storage and transportation.
Under DDP, on the other hand, the seller is responsible for delivering the goods to the named place of destination and paying all costs related to importing the goods into the destination country, such as customs duties, taxes, and any other fees needed to get the goods through customs. The goods belong to the seller until they are delivered and unloaded at their final destination. At that point, the buyer is responsible for the goods in their entirety.
In short, the main difference between DPU and DDP is that under DPU, the buyer is responsible for the goods once they have been unloaded at the named place of destination, while under DDP, the seller is responsible for the goods until they have been fully delivered to the named place of destination and cleared through customs.
It is important to remember that both DPU and DDP are part of the Incoterms published by the International Chamber of Commerce (ICC). Parties to an international trade deal should think carefully about which Incoterm is best for them, and the sales contract should spell out the buyer’s and seller’s duties and responsibilities.
Who Should Use Delivered At Place Unloaded (DPU)?
Delivered at Place Unloaded (DPU) is an Incoterm that can be used in international trade by anyone who wants to make it clear who is responsible for unloading the goods at the named place of destination. DPU is especially helpful when the buyer doesn’t have the tools or resources to unload the goods, or when unloading the goods could be hard or expensive.
DPU is also useful when the buyer wants to take ownership of the goods as soon as they are unloaded at the place of destination named in the contract. This can help if the buyer needs to move or store the goods quickly, or if the buyer wants to check the goods before they are shipped to their final destination.
But DPU might not be the best choice for all international trade deals. For example, if the goods are big or need to be handled in a certain way, the seller may need to unload them to make sure they are handled correctly. In these situations, a different Incoterm, like Delivered Duty Paid (DDP) or Carriage and Insurance Paid To (CIP), might be better.
In the end, the choice of Incoterm should be based on the needs of the parties involved in the transaction. It is important for the parties to clearly define their respective obligations and responsibilities in the sales contract.
Which Incoterm Is Best For Your Business?
You should know the most common Incoterms used in international shipping contracts if you want to know what your responsibilities are and avoid taking unnecessary risks. Still, you can always ask Forceget for help if you’re still not sure what you need to start doing business internationally.
Forceget knows a lot about international shipping, so it tells exporters and importers to choose the Incoterm that works best for them.
