What is Delivered at Place Unloaded (DPU)?
Delivered at Place Unloaded (DPU) is an Incoterm defined by the International Chamber of Commerce (ICC). Under DPU, the seller is responsible for transporting goods, covering all costs, and managing risks up to the point where the goods are delivered and unloaded at the buyer’s specified location.
Key Responsibilities Under DPU
Seller’s Responsibilities:
- Arrange and pay for transportation to the buyer’s designated destination.
- Handle unloading of goods upon arrival at the specified location.
- Manage all risks and costs up to and including unloading.
- Complete all required export documentation and clearances.
Buyer’s Responsibilities:
- Assume responsibility and risks immediately after unloading is complete.
- Conduct import customs clearance and pay import duties, taxes, and other related fees.
- Ensure readiness to accept and manage goods upon completion of unloading.
Advantages of Using DPU
- Provides clarity regarding responsibility for unloading, reducing potential misunderstandings.
- Allows buyers to avoid managing international shipping logistics.
- Clearly defined risk management simplifies contractual agreements.
Potential Challenges with DPU
- Buyers must clearly understand local import procedures and customs requirements.
- Potential for extra costs or delays if import clearance or further transportation is not properly arranged post-unloading.