Delivered at Place Unloaded (DPU) is an Incoterms rule used in international shipping and logistics. This blog will outline what DPU shipping is, what responsibilities lie with sellers and buyers under the DPU Incoterm, and when DPU logistics should be used. 

 

What does DPU mean?

DPU, short for Delivered at Place Unloaded, is an International Commercial Trade Term (Incoterm) where all costs and risks are with the seller until goods are unloaded at an agreed-upon destination. It is the only Incoterm that requires the seller to unload the goods once they arrive at the destination. 

Formerly known as Delivered at Terminal (DAT), the DPU Incoterm can be applied to any mode of transport, as well as situations involving multiple transportation methods. 

 

What does the DPU Incoterm dictate?

The DPU Incoterm rule states that all risk is assumed by the seller up until the point they have unloaded the goods at the agreed place of delivery. This includes being responsible for export packing, export duties and taxes, loading on carriage, and various other charges. The buyer is only responsible for import duties and taxes, and accepting the delivery at the destination. 

 

Seller

Buyer

  • Assumes maximum responsibility for delivering the goods to the buyer, including organising carriage, transport documentation, export clearance formalities, and packing the goods.

  • Must unload the goods from the transport vessel once they have arrived at the destination. 

  • Bears all risks of loss or damage until the goods have been fully unloaded at the agreed-upon destination. 

  • Assumes no responsibility for the carriage of goods.

  • Must assist the seller in obtaining relevant documentation for export-related formalities.

  • Must carry out and cover the cost of import formalities.

  • Must accept the delivery at the agreed-upon location. 

  • Bears all risk of loss or damage to the goods once they have been unloaded by the seller. 

 

Top Tip: Both the buyer and the seller have to agree on the specific, named place of destination for the goods to be delivered to. 

 

DPU Shipping Obligations

To correctly follow DPU shipping rules, you need to understand the different obligations for sellers and buyers. These obligations are outlined below: 

 

Obligations of the seller

Under DPU rules, seller obligations include: 

  • Providing the goods, commercial invoices, and relevant documentation

  • Packaging and marking the goods for export

  • Arranging export licenses and completing customs formalities

  • Arranging pre-carriage and delivery

  • Covering loading charges

  • Organising the carriage of goods

  • Delivering the goods at the agreed-upon destination

  • Covering unloading charges

  • Providing proof of delivery

  • Paying for pre-shipment inspections

 

Obligations of the buyer

The DPU Incoterm says buyers are obligated to: 

  • Pay for the goods, as agreed between the buyer and seller in their sales contract

  • Organise import formalities and duties

  • Cover the cost of import clearance, pre-shipment inspections, and import licenses and permits

  • Assisting the seller in obtaining relevant export documentation

 

When to use DPU shipping?

When using the DPU Incoterm, sellers take on maximum responsibility during the logistics process. As this gives the seller control over the transportation and unloading process, it can help optimise logistics processes and save costs. 

For buyers, DPU shipping is also beneficial as they have minimal responsibility during the transportation process. This means they don’t need to worry about things like loss or damage to goods until they have been delivered and unloaded by the seller. 

Therefore, the DPU Incoterms is a good option for sellers who want full control over the logistics process and for buyers who want a more hands-off experience. However, if you are delivering large goods that are hard to lift and unload, DPU might not be the best choice of Incoterm. 

 

View the SEKO Guide to Incoterms

At SEKO, we have over 30 years of experience in offering end-to-end logistics solutions, including ecommerce shipping, freight forwarding, and white glove delivery. We are a reliable provider of award-winning logistics solutions, dedicated to delivering a client-first service across an extensive global network. 

To find out more about Incoterms and shipping logistics, visit our expert guide to Incoterms where we outline the most commonly used Incoterms and answer frequently asked questions. 

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