What is the DPU Incoterm?
DPU (Delivered at Place Unloaded) is an Incoterm in which the seller is responsible for both transporting and unloading the goods at the agreed destination.
What is the DPU Incoterm?
The Incoterm DPU (Delivered at Place Unloaded), formerly known as the Incoterm DAT (Delivered at Terminal), means that the seller is responsible for all risks and costs related to the delivery of the goods to a specific and agreed location.
However, under this new Incoterm the seller is also responsible for unloading the goods from the means of transport. Thereafter, the risks and any costs for further transportation and customs clearance pass to the buyer. To ensure an efficient trading process, it is critical that both buyers and sellers have a good understanding of what these responsibilities entail.
What are the advantages and disadvantages of the DPU Incoterm?
Like other Incoterms, DPU offers both advantages and potential disadvantages. The advantage of DPU for the buyer is that the seller is responsible for the delivery and unloading of the goods. This can relieve the buyer of logistical challenges associated with transportation, unloading and customs clearance.
Despite the advantages, there are also some potential disadvantages. The main disadvantage of DPU is that there may be restrictions on the location where the goods can be unloaded - as this location must comply with the agreed Incoterm. This can limit the buyer's flexibility and control when it comes to choosing the location.
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Frequently asked questions about the DPU Incoterm
What is the difference between the Incoterm DPU and DAT?
The main difference between the Incoterms "Delivered at Terminal" (DAT) and "Delivered at Place Unloaded" (DPU) lies in the designation of the delivery point. While DAT specifically refers to delivery of goods at a freight terminal, DPU is broader and implies that goods can be delivered at any designated place. This means that with DPU, the delivery point does not necessarily have to be a freight terminal, which provides more flexibility in the trading process and logistics handling.
What happens if the goods are damaged during unloading under DPU?
Because the seller is responsible for unloading the goods under the DPU Incoterm, it also bears the risk for any damage that may occur during this process.
How is DPU different from other Incoterms such as EXW or FCA?
The main differences come down to cost and risk sharing. With DPU, the seller bears all costs and risks until the goods are unloaded at the agreed location. At EXW the buyer is responsible from collection of the goods. FCA is in between, with risks and costs passing to the buyer when the goods are handed over to the buyer's chosen carrier.
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