Incoterm DPU explained

What is Incoterm DPU?
DPU is a versatile Incoterm in that it can be used for any mode of transportation. With this Incoterm, it is the seller's responsibility to arrange the entire transportation process so that the goods can be handed over to the buyer at the agreed destination unloaded. In terms of content, Incoterm DPU is very similar to DAP. If the destination site offers a good opportunity to unload the goods, then agreeing on Incoterm DPU is possible. If this option is not there, then it is better for the seller to agree on Incoterm DAP.

Incoterm DPU meaning
DPU means Delivered At Place Unloaded. This means that the seller is not only responsible for delivering the goods to the agreed destination, but also bears the care and cost of unloading the goods.

DPU transport
At DPU, the goods can be delivered to different types of places. If you are the seller of the goods, make sure that there is a possibility to unload the goods at this location. Think of the place of delivery as a terminal, port or premises of the buyer, for example. Insurance is not mandatory for either party, but is advisable for the seller because he bears the risk of loss and damage to the goods during the transportation process.

Incoterm DPU cost
With DPU, the seller has the most obligations. In fact, as the seller, you are obliged to take care of the entire transportation process; from the pre-transportation to the unloading of the goods. Any transit of the goods is the responsibility of the buyer. All import costs are paid by the buying party. Taking out insurance for the goods is not mandatory for either party.

Seller obligations with DPU
DPU creates many obligations on the seller's side. For example, as the seller, you are obligated to arrange and pay for the entire transportation process. The seller is also responsible for damage and loss of the products until the goods are unloaded at the destination. Everything surrounding the export of goods must also be arranged by the seller. Consider permits, customs formalities and paying taxes. The seller is not required to take out insurance for the goods, but the carrier has limited liability for any damage. Therefore, it is advisable to insure the goods for damage and loss.

Buyer's obligations with DPU
The risk passes from seller to buyer the moment the seller has unloaded the goods at the destination. Therefore, as a buyer, you do not have to do this. However, the buyer is responsible for any further transport of the goods. All costs and documents surrounding the import of the goods must be arranged by the buyer. Insurance is not mandatory for the buyer.

Incoterm DPU vs. DAP
DPU and DAP Incoterms are often confused due to their many similarities. For example, in both, the seller of the goods is responsible for arranging and paying for the entire transportation process. However, there is still a big difference between DPU and DAP. As a seller, with DPU you have fulfilled your duty when you have delivered the goods unloaded at the destination. So unloading the goods is also part of the obligations of the selling party. Under DAP, you have fulfilled your obligations as a seller if you have delivered the goods unloaded at the destination. With DAP, it is the buyer's responsibility to unload the goods.

Sea freight or air freight shipments with customs obligation?
Global shipments and shipments within Europe to/from non-EU countries are subject to customs obligations. What measures do you need to take and what documents are required? With the knowledge and experience of our specialists in the Rotra customs department, we are able to provide solutions for all your customs obligations that fit your logistics process while you focus on your own core business.

For more info contact us.