DPU Meaning: Delivered at Place Unloaded Explained

DPU meaning: delivery includes unloading

DPU is an Incoterms 2020 rule for delivery after unloading at a named destination. That destination can be a warehouse, terminal or another suitable place.

DAT, meaning Delivered at Terminal, was renamed DPU in Incoterms 2020. The change emphasises that delivery is not restricted to terminals. DPU is the only Incoterms 2020 rule requiring the seller to unload at destination.

It works with sea, air, road, rail and combined transport. Start with Incoterms explained for the wider framework.

Who pays and who carries cargo risk under DPU?

The table separates payment obligations from the risk of goods being lost or damaged. Paying import charges does not, by itself, mark delivery or transfer cargo risk.

These are the normal allocations. Failures by the buyer to fulfil its clearance or related assistance obligations, or to give required notices, can trigger exceptions, explained below.

Where exactly does risk transfer?

Risk normally transfers when the goods have been unloaded from the arriving means of transport and placed at the buyer’s disposal at the agreed destination point. Arrival at a port or the warehouse gate is insufficient if the agreed delivery point is elsewhere.

Specify the address and exact unloading point, such as the designated receiving area. Confirm access, lifting equipment, operators and appointment arrangements before accepting the quote.

Agree separately whether unpacking, positioning machinery or installation is included. Do not assume unloading includes these services.

Who handles export and import clearance?

The seller handles and pays for applicable export and transit clearance needed to reach the agreed destination, excluding import-country formalities. The buyer handles and pays for applicable import formalities, duties and import taxes.

Each party must provide the clearance assistance required by the rule at the requesting party’s risk and cost.

If the buyer fails to fulfil its clearance or related assistance obligations under DPU B7, it bears resulting cargo risks and additional costs incurred by the seller. If the buyer is entitled to choose the delivery time within an agreed period or the delivery point within the named destination, it must give sufficient notice. Failure to give that notice transfers cargo risk from the agreed delivery date or the end of the agreed delivery period and makes the buyer responsible for resulting additional costs incurred by the seller. These exceptions require the goods to be clearly identified to the contract.

When should a buyer choose DPU?

Consider DPU if you want the Chinese seller to arrange transport and unloading while you handle import clearance. Check that the seller can organise unloading at your destination.

If you intend the seller to bear neither the cost nor the risk of unloading, compare DAP. Resolve uncertain unloading arrangements before contracting.

If you want the seller to handle import clearance and taxes, investigate DDP. If you prefer to appoint the main carrier, consider FCA. Confirm that the chosen arrangement is workable before contracting.

China example: factory to an overseas warehouse

Illustrative order: a buyer outside China purchases crated equipment from a Chinese factory. The contract specifies DPU, the full destination warehouse address and unloading point, and Incoterms 2020.

The factory arranges export clearance, carriage and unloading. The buyer arranges import clearance and pays applicable import charges. If the equipment is damaged during the agreed unloading operation, the seller normally carries that risk.

If the named destination is only a freight terminal, DPU delivery there does not require onward transport to the buyer’s warehouse. Name the place you actually need.

For a Cambridge destination in Great Britain, request an evidenced breakdown of the delivered price. HMRC requires relevant delivery costs to the UK place of introduction to be included in customs value. UK transport costs included in the goods price can be deducted if distinguishable and supported by evidence. Import VAT valuation starts with customs value and adds applicable import duties and other import charges, excluding VAT itself, plus relevant incidental expenses to the first UK destination and those resulting from transport to a further UK destination known at import. Do not add costs already included.

Compare neighbouring terms and check the quote

Use the DAP guide to compare delivery before unloading, and the DDP guide to compare import-clearance responsibilities.

For further comparison, consult the Incoterms chart and Incoterms price converter. Request a shipment-specific quotation before contracting.

Before ordering, request a written list of included transport, unloading and destination charges, alongside the buyer’s import costs.