Incoterms: Delivered at Place Unloaded (DPU)
Today, we'll continue with our series on explaining the different Incoterms. This article is the final, covering DPU. Learn more about it on Export Portal!
Delivered at Place Unloaded (DPU) is part of the international commercial law called Incoterms, and requires the seller to assume full responsibility for the goods until they arrive at the agreed location. DPU places no restrictions on the destination and is ideal for international/ multimodal transportation. This is the only Incoterms rule that requires the sellers to unload the goods. Once the goods are unloaded, the risk shifts from the seller to the buyer. Delivered at Place Unloaded (DPU) is part of the international commercial law called Incoterms, and requires the seller to assume full responsibility for the goods until they arrive at the agreed location. DPU places no restrictions on the destination and is ideal for international/ multimodal transportation. This is the only Incoterms rule that requires the sellers to unload the goods. Once the goods are unloaded, the risk shifts from the seller to the buyer. Previously called Delivered at Terminal (DAT), DPU has undergone several changes from the 2010 Incoterms rule.
What Has Changed?
Under DAT, sellers could deliver the goods to any terminal, such as a container yard or warehouse. However, this explanation was not very clear and has since been revised under DPU to allow any place, including the buyer’s premises. DPU has become a much more effective rule for both the sellers and buyers who wanted the delivery to happen somewhere else, instead of only at a terminal.
Seller and Buyer Obligations
DPU requires the seller and the buyer to meet certain obligations. Take a look at the chart below and make sure you are following them:
Seller’s Obligations
General - Deliver the goods and commercial invoice.
Buyer’s Obligations
General - Pay the price of the goods as agreed.
Seller’s Obligations
Delivery - Deliver the goods at the agreed date and time. Has full responsibility and must unload the goods.
Buyer’s Obligations
Delivery - Take the goods when they are delivered.
Seller’s Obligations
Risks - Responsible for all of the risks until goods are delivered.
Buyer’s Obligations
Risks - Responsible for all of the risks once the seller delivers the goods. Risk at buyer’s if the buyer fails to notify date/time and clear import customs.
Seller’s Obligations
Carriage - Must contract carriage of goods to the destination and pay for the cost.
Buyer’s Obligations
Carriage - No obligation.
Seller’s Obligations
Insurance - No obligation.
Buyer’s Obligations
Insurance - No obligation.
Seller’s Obligations
Delivery/transport document - Must provide a transport document at own cost.
Buyer’s Obligations
Delivery/transport document - Must accept the document.
Seller’s Obligations
Export/Import clearance - Responsible for all export clearance expenses. Must pay for all formalities required.
Buyer’s Obligations
Export/Import clearance - Must assist the seller and pay for all formalities if requested.
Seller’s Obligations
Checking - Must pay for all checking operations like weighing/counting the goods, packaging, etc.
Buyer’s Obligations
Checking - No obligation.
Seller’s Obligations
Allocation of cost - The seller must pay for all costs until goods are delivered. This includes transport costs, unloading charges, export taxes and duties, etc.
Buyer’s Obligations
Allocation of cost - Must pay from the time the goods are delivered.
Seller’s Obligations
Notices - Must notify the buyer when goods have been delivered.
Buyer’s Obligations
Notices - Must notify the seller of the destination and time.
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