DPU Incoterms: What It Is and Why It’s Needed

DPU Incoterms 2020 is a set of specific freight forwarding rules created to facilitate business relations between the two parties of a transaction. It replaced DAT and has become a valuable tool for those who want to clearly define the responsibilities of the seller and buyer for any cargo deliveries. Understanding what this rule entails helps avoid conflicts, financial losses, and delays related to shipments. DPU is a rule that places the maximum number of obligations on the seller, including export customs clearance and unloading of the goods at the destination point. DiFFreight experts can help you understand all the nuances of this term and the conditions associated with it.

DPU and Delivery Terms

DPU Incoterms clearly defines the boundaries of responsibility between the seller and the buyer. According to this protocol, the former is responsible for:

1. Delivery to the agreed destination point. This point may be the client’s warehouse, a terminal, or any other location specified in the contract.
2. Unloading the goods. Unlike other options, this requires the seller to ensure the unloading of the products from the vehicle, which is a key distinction.
3. Export customs clearance. The supplier must complete all export-related procedures, including paying duties and fees.
4. Risk of loss or damage. The seller bears full responsibility for the shipment until it is unloaded at the destination.

But don’t think that the buyer here is just a bystander with no obligations. In turn, they are responsible for:

1. Import customs clearance. The buyer is responsible for customs clearance in their own country, including paying duties and VAT.
2. Further transportation and storage after unloading at the destination point.

DPU delivery terms are about clarity in the distribution of responsibilities and risks, which is why this form of arrangement is convenient for all parties. Each clearly understands their obligations and complies with them. Such terms are ideal in cases where the seller can take on all procedures related to delivery, right up to unloading.

Incoterms 2020 DPU: Key Changes from 2010

Before Incoterms 2020, the equivalent term was called DAT. The main difference lies in the expansion of delivery conditions. Let’s compare both options:

1. Name and location. Under DAT, the destination point had to be a terminal (port, airport, warehouse). Now this condition has changed. Today, the delivery point can be any agreed location — a warehouse, factory, or other point.
2. Unloading. Previously, the seller was responsible for unloading at the terminal, but not always onto the buyer’s vehicle. Now this condition is more specific. The responsibility extends to unloading the shipment from the vehicle, making this rule more universal and convenient.

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These changes were introduced to better reflect real conditions in international trade and to provide the parties with more flexibility. Now they can agree on transport to a specific location, without being limited to just the terminal, which significantly simplifies logistics and reduces the risk of damage, delays, and other issues.

Which delivery terms are better to choose

The choice of Incoterms depends on many factors and deal conditions. Available options include:

• DPU — an excellent choice if you are a seller and are ready to take maximum responsibility until unloading at the destination. It is suitable when you can fully control logistics or want to provide the client with a full “door-to-door” delivery service.
• DAP is similar to DPU but with one key difference: in the former, the supplier is not responsible for unloading the products at the destination. The risk and responsibility for it transfer to the client.
• CFR. The seller is responsible for delivery to the port of destination, but not for unloading and import customs clearance. Responsibility passes to the buyer at the moment of loading onto the vessel at the port of departure.
• FOB. The seller is responsible for transportation to the port of departure and loading onto the vessel. All other risks transfer to the client once the shipment has been loaded onto the vessel.

If handling customs clearance and dealing with numerous related documents is not your scenario, then Incoterms 2020 DPU is a good choice. But if you are willing to take on certain obligations, the other points described above may be more advantageous. Our experts recommend making decisions for each specific case separately, taking into account all supply nuances. To minimize risks when transporting products from abroad, you may need international logistics services — DiFFreight has extensive experience in organizing cargo transportation worldwide.

Summary and recommendations for applying DPU in practice

Choosing DPU Incoterms is a serious step that requires a careful and responsible approach. Here are some tips to avoid pitfalls:

• Clarify the final point. The contract should specify a precise address, for example, “buyer’s warehouse at…”. Any inaccuracies can cause delays and even conflicts!
• Get insurance. Although in this scenario all risks lie with the seller, cargo insurance will not be redundant. The policy helps cover losses in case of unforeseen circumstances.
• Seek professional assistance. If you are the seller and working with the new standards for the first time, it’s better to consult professionals. Customs brokerage services from DiFFreight will help you quickly and correctly prepare all necessary documents.
• Stay updated. Incoterms rules may change. It is important to keep track of the latest version and ensure your contract complies with the most recent recommendations.

It’s important not only to understand the terms and rules but also to know how to apply them correctly in practice. This will increase your business efficiency and reduce risks in international trade. Contact DiFFreight, and we will help you navigate all the logistics intricacies.