What is DPU (Delivered at Place Unloaded)?

DPU replaced DAT (Delivered at Terminal) in Incoterms 2020. The big change is that the named place can be anywhere, not only a terminal. It is the one rule where the seller must unload the goods at the destination. Only DDP asks more of the seller overall, because it adds import clearance and duties, although under DDP the buyer unloads. For the other rules, see what are Incoterms.

This is a general explanation, not legal, insurance or customs advice.

Why DPU matters

The seller carries the whole journey, including the unloading, which is often the riskiest step for heavy or fragile goods. A buyer gets a price to its door or yard and does not have to organise a crane or a forklift.

The seller should be sure it can unload at the place. If the site has no equipment or the buyer's staff must do the work, DPU is the wrong choice and DAP is the better one.

DPU compared with DAP

Under DAP, the goods are delivered when they are ready for unloading on the arriving vehicle. The buyer unloads. Under DPU, they are delivered when they are unloaded. The seller unloads, and the seller carries the risk until that is done.

Who does what under DPU

The seller

• Clears the goods for export.
• Contracts for the carriage and pays it to the named place.
• Unloads the goods at the named place and pays the unloading cost.
• Carries all risk until the goods are unloaded.
• Provides the commercial invoice and any transport document.

The buyer

• Takes delivery at the named place.
• Clears the goods for import and pays duties and taxes.
• Carries the risk from the moment of unloading.

Neither side has to arrange insurance under DPU. The seller should insure its own risk to the point of unloading.

Where risk passes

Risk passes once the goods are unloaded at the named place. Damage while the forklift lifts them off the truck is still the seller's.

An example from product sales

Say a building-materials supplier's price for 40 pallets of insulation boards is $22,000 at its works. For DPU the buyer's yard, it pays $1,800 for the truck, $250 for a forklift on site and $400 for export clearance. Its DPU price is $24,450.

The driver and forklift unload the pallets. A pallet damaged on the road or dropped while unloading is the seller's loss. The buyer clears the goods for import and pays the duties, and once the pallets are on the ground the risk is the buyer's.

Common mistakes with DPU

• Treating it as DAT. The place is no longer limited to a terminal.
• Skipping the site check. The seller must know it can unload there.
• Confusing it with DDP. Under DPU the buyer clears import.
• Vague place. Give the full address and the exact unloading point.

Related terms

• Incoterms: the 11 rules DPU belongs to.
• DAP: the same, but the buyer unloads.
• DDP: the seller also clears import.
• CIP: risk passes at the first carrier.
• Lead time: longer when the seller runs the transport.

How PromptLab handles it

Choose DPU in the trade terms field on the sales order, which lists the 11 Incoterms 2020 rules, and write the unloading address in the order's note. If a customer always buys on DPU, store it as the account's preferred terms and each new order fills it in.

Frequently asked questions

What does DPU mean?

DPU means Delivered at Place Unloaded. The seller delivers the goods to the named place and unloads them there.

What happened to DAT?

DPU replaced DAT (Delivered at Terminal) in Incoterms 2020. The place of delivery can now be any place, not just a terminal.

What is the difference between DPU and DAP?

Under DAP the goods are delivered ready for unloading and the buyer unloads. Under DPU the seller unloads them.

Who pays import duty under DPU?

The buyer. The seller clears export, and the buyer clears import and pays the duties and taxes.

Can DPU be used for sea freight?

Yes. DPU works for any mode of transport, including sea, as long as the seller can unload at the named place.