Incoterm – Delivered At Place Unloaded (DPU)
When using Delivery at Place (DPU), the seller oversees the transportation of the goods from their origin to the designated disposal location at the destination. The seller assumes responsibility and risks up to the point of delivery at the specified place. They must secure a carriage contract consistent with the sales agreement until the agreed-upon delivery point.
This Incoterm is applicable across various transportation modes. The seller must ensure their ability to coordinate the unloading of the goods at the designated place.
DPU was formerly known as Delivered at Terminal (DAT). This Incoterm has undergone a name alteration, now referred to as Delivered at Place Unloaded (DPU). This adjustment allows more flexibility in choosing the delivery location, accommodating scenarios beyond just terminals, such as construction sites.
Choosing Delivered At Place Unloaded
- If the shipment uses consolidated containers with multiple consignees.
- If the shipping items require specialized or additional handling and the seller is willing to undertake the responsibility.
Understanding the Responsibilities
Seller’s Responsibilities: Under DPU, the seller’s primary responsibilities are listed as follows:
Packaging
The seller must prepare the goods according to different origin's export packaging standards.
Carriage Loading Charges
When the goods depart from the seller's site, the seller is responsible for expenses encompassing any charges related to placing the cargo onto the initial carrier for its journey to the export location.
Delivery Charges
The seller is responsible for transporting goods to the agreed export location, including the fees involved in the process.
Duties, Taxes, and Custom Clearances
The seller is responsible for the export procedure, including the documentation preparation, expenses, and other examination processes.
Transportation Charges
The seller is responsible for the inland expenses at the origin and destination, including charges from the seller's premises to the carriage and the carriage to the destination.
Carriage Charges
The seller is responsible for covering all freight costs, specifically from the port of origin to the destination.
Terminal Charges
The seller is responsible for both origin and destination terminal charges.
Unloading Charges
The seller must cover charges for unloading at the destination from the final carrier.
Buyer’s Responsibilities: Once the seller have completed their obligations, buyer’s responsibilities are as follows:
Duties, Taxes, and Custom Clearances
The buyer is responsible for the import procedure, including the documentation preparation, expenses, and other examination processes.
Insurance
While not obligatory, the buyer may opt to secure insurance for the shipment to protect against potential damages.
Pros and Cons for Buyers
Effortless Retrieval
The buyer only needs to collect the goods after unloading, streamlining their tasks and minimizing potential complexities.
Transparent Expenses
With the seller covering all costs until unloading, the buyer gains a clear overview of the total expenses.
Risk Mitigation
The buyer bears no responsibility for goods until they are unloaded and ready for pickup, absolving them of any damage or loss incurred before this stage.
Simplified Paperwork
The seller manages all essential documentation until unloading, simplifying the collection process.
Limited Control
Buyers have less control over the shipping process, particularly in the country of origin.
Potential Higher Costs
Placing more shipping responsibilities on the seller may increase the overall shipping expenses.
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