DPU Incoterms (Delivered at Place Unloaded)
DPU is unique among Incoterms as the only term requiring sellers to unload goods at the destination. Introduced in 2020 to replace DAT, DPU extends seller responsibility through the entire unloading process, making it ideal for buyers who want minimal logistical involvement.
After Unloading
Any Mode
Seller's Duty
What Are DPU Incoterms?
DPU (Delivered at Place Unloaded) represents one of the 11 Incoterms 2020 rules that govern international trade transactions. The International Chamber of Commerce (ICC) introduced DPU in 2020 to replace the previous DAT (Delivered at Terminal) term, expanding delivery location options beyond terminals to any agreed place.
Under DPU terms, sellers bear complete responsibility for arranging transportation to the agreed destination, covering all export clearance costs, and critically, unloading goods at the delivery point. Risk transfers to buyers only after goods are unloaded at the specified location.
The delivery point can include warehouses, ports, airports, construction sites, or any accessible location agreed upon by both parties. This flexibility makes DPU particularly attractive for project cargo and specialized deliveries.
Key DPU Characteristics
- Risk Transfer: Occurs when goods are unloaded at destination
- Unloading: Seller's unique obligation under DPU
- Cost Division: Seller pays until unloading; buyer pays afterward
- Insurance: Not mandatory—each party decides coverage
- Transport Modes: Applicable to all transportation methods
Key Responsibilities Under DPU Terms
Seller's Obligations
Seller bears complete responsibility through unloading at the named destination.
Buyer's Obligations
Buyer assumes control once goods are unloaded, handling import formalities.
DPU Cost Distribution
Under DPU, sellers cover all costs through unloading at the destination. Buyers pay for import clearance, duties, and onward transportation.
| Cost Component | Seller Pays | Buyer Pays |
|---|---|---|
| Product Cost | ||
| Export Packaging | ||
| Inland Transport to Port (Origin) | ||
| Export Clearance & Documentation | ||
| Main Carriage/Freight | ||
| Destination Terminal Charges | ||
| Unloading at Destination | ||
| Import Clearance & Documentation | ||
| Import Duties & Taxes | ||
| Onward Transportation |
DPU's Unique Unloading Obligation
What Makes DPU Unique
DPU is the only Incoterm requiring sellers to unload goods. This distinguishes it from all other terms:
- Sellers coordinate with terminal operators or warehouses
- Specialized equipment may be required (cranes, forklifts)
- Risk remains with seller through entire unloading process
Unloading Considerations
Sellers must carefully plan unloading operations:
- Factor unloading time into delivery schedules
- Account for demurrage if unloading is delayed
- Obtain proof of unloading (terminal receipts)
Advantages and Disadvantages of DPU
Advantages
Complete Delivery Control
Sellers control the entire transportation process from origin to unloading, optimizing routes and carrier selection for better freight rates.
Buyer Convenience
Buyers avoid investing in unloading equipment or specialized handling crews. Goods arrive ready for immediate use or storage.
Clear Risk Transfer
Risk transfers only after unloading completion, providing clear documentation and reducing disputes about cargo condition.
Simplified Buyer Operations
Buyers focus on import clearance and local distribution while sellers manage complex logistics and unloading operations.
Disadvantages
Extended Seller Liability
Sellers bear risk through unloading phase, including potential equipment failures or damage during unloading operations.
Variable Unloading Costs
Unloading expenses fluctuate 15-30% between destinations. Terminal handling and equipment rental costs vary significantly by location.
Coordination Complexity
Sellers must coordinate with local unloading crews at unfamiliar destinations, navigating language barriers and different business practices.
Reduced Buyer Control
Buyers depend on seller-arranged unloading services without direct oversight, creating risks for fragile or specialized goods.
DPU vs Other D-Terms
| Aspect | DPU | DAP | DDP |
|---|---|---|---|
| Risk Transfer Point | After unloading | Before unloading | Before unloading |
| Unloading Responsibility | Seller | Buyer | Buyer |
| Import Clearance | Buyer | Buyer | Seller |
| Import Duties | Buyer | Buyer | Seller |
| Transport Mode | Any | Any | Any |
| Seller Obligation Level | High | High | Maximum |
DPU vs DAP
The primary distinction is unloading responsibility. Under DPU, sellers complete unloading before risk transfers. DAP transfers risk when goods arrive still loaded—buyers handle unloading. DPU extends seller liability through the entire unloading process.
DPU vs DDP
DDP goes further by requiring sellers to handle import clearance, duties, and taxes. DPU excludes import formalities—buyers handle customs clearance. DDP represents maximum seller obligation while DPU offers comprehensive delivery without import responsibilities.
DPU in Practice: Industry Examples
Manufacturing Equipment
German CNC machinery delivered to Mexican automotive plant. Seller coordinates specialized crane unloading inside the production hall.
Agricultural Commodities
Brazilian soybeans shipped to Chinese processing facility. Seller manages discharge using pneumatic conveyor systems into buyer's silos.
Construction Materials
Italian marble blocks delivered to Dubai construction site. Seller supervises careful placement of each 4-ton block to prevent damage.
Wind Turbine Components
Danish wind farm equipment delivered to South African project site. Seller uses 500-ton mobile cranes for precise component placement.
When to Use DPU Incoterms
Ideal Scenarios for DPU
- Buyers lack unloading equipment or expertise
- Heavy machinery requiring specialized handling
- Remote project sites without infrastructure
- First-time importers wanting simplicity
- High-value cargo requiring careful handling
Industries Using DPU
- Construction: equipment and materials to project sites
- Manufacturing: production line installations
- Energy: wind turbines, solar panels, generators
- Agriculture: bulk commodities to processing facilities
- Mining: extraction equipment to remote sites
Frequently Asked Questions
Need Help with DPU Shipments?
Our freight experts can help you navigate DPU terms and coordinate complete delivery with unloading at your specified destination.
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