DPU Incoterms | Delivered at Place Unloaded

In international trade and logistics, trade terms are the core principles defining the responsibilities, risks, and costs of buyers and sellers. Delivered at Place (DPU), a key term in the Incoterms 2020 system, has a direct impact on transaction efficiency and risk management. This article will comprehensively analyze DPU’s core meaning, division of responsibilities, advantages and disadvantages, applicable scenarios, and frequently asked questions.

1、What does DPU mean in shipping terms?

DPU, short for “Delivered at Place Unloaded,” is a new trade term introduced by the International Chamber of Commerce (ICC) in Incoterms 2020, replacing DAT (Delivered at Terminal) in the 2010 edition. Its core definition can be broken down into three dimensions:

Core Content

DPU, centered on the “point of unloading at designated destination,” means the seller’s delivery obligation is fulfilled only after the goods have been transported to the buyer’s designated destination (e.g., warehouse, factory, container yard, etc.) and unloaded from the transport vehicle (e.g., truck, container ship, aircraft). Compared to other Delivered at Place terms (e.g., DAP and DDP), DPU’s key characteristic is that the seller assumes the responsibility for unloading. This is also the core difference between DAP, which provides “delivery only without unloading.”

Scope of application

The DPU is applicable to all modes of transport, including ocean, land, air, and multimodal transport. Whether delivering by truck in cross-border road transport, delivering at a port warehouse in container shipping, or delivering at an airport cargo terminal in air transport, the DPU clarifies responsibilities and is particularly well-suited for complex multimodal transport scenarios.

Risk transfer node

The transfer of risk for goods is defined by the point of “completion of unloading.” Prior to unloading, the seller bears all risks of damage, loss, or delay in transit. Once the goods are unloaded at the designated destination, the risk transfers immediately to the buyer. This demarcation directly determines the scope of risk borne by both the buyer and the seller and is the core legal basis for DPU clauses.

2、DPU Agreement: Buyers and Sellers Responsibilities

Incoterms 2020 clearly defines the rights and responsibilities of buyers and sellers under a DPU agreement, covering key aspects such as transportation, risks, costs, and customs clearance. The specific divisions are as follows:

 Seller’s core responsibilities：

• Transportation Arrangements and Unloading Obligations: The seller is responsible for concluding the entire transportation contract from the point of departure to the designated destination, selecting the appropriate transportation method (e.g., carrier, transportation route), and assuming all costs and expenses associated with unloading the goods to the designated destination. For example, if the destination is the buyer’s factory, the seller would arrange for a truck to deliver the goods to the factory gate and hire workers to unload the container.
• Risk Assumption: The seller assumes all risks of the goods during transportation until they are unloaded at the destination, including transportation delays, damage to the goods, losses caused by force majeure, etc. If the goods are damaged by natural disasters before unloading, the seller is responsible for restocking or compensation.
• Export customs clearance and document provision: Responsible for handling all customs procedures required for the export of goods, including export declaration, obtaining export licenses, providing commercial invoices, bills of lading, packing lists and other core documents to ensure the legal exit of goods.
• Scope of costs: covers export customs declaration fees, full transportation fees, transportation insurance (not mandatory, but recommended), unloading fees at the destination, storage fees for goods during transportation, etc.; but does not include tariffs, value-added tax and import customs declaration fees required for import customs clearance of goods.

Buyer’s core responsibilities：

• Destination designation and information provision: The specific delivery destination must be clearly stated in advance (accurate to the unloading point, such as “Unloading Platform No. 1, XX Warehouse, XX Industrial Park, Pudong New Area, Shanghai”), and the necessary destination information (such as contact person, unloading site conditions) must be provided to the seller to avoid delivery delays due to unclear information.
• Import customs clearance and tax payment: The seller is responsible for handling all customs formalities for the import of goods, including submitting import licenses, declaring duties and VAT, and paying import customs clearance fees, duties, inspection fees, and other related taxes and fees. This is the key difference between DPU and DDP, which stipulates that the seller bears all customs clearance responsibilities.
• Receipt and subsequent responsibilities: After the goods are unloaded, they must be inspected and accepted in a timely manner. If any damage or loss is found, a certificate must be issued on the spot; at the same time, the risks and costs of subsequent links such as warehousing and transshipment of goods after unloading must be borne.
• Cooperation obligations: You must cooperate with the seller to complete the transportation connection, such as promptly confirming the unloading time, providing equipment support for the unloading site (such as forklifts, cranes), etc. If the unloading is delayed due to the buyer’s failure to cooperate, the relevant costs shall be borne by the buyer.

3、Advantages and Disadvantages of a DPU Agreement

The advantages and disadvantages of a DPU agreement depend directly on the bargaining power, risk tolerance, and business needs of both parties to the transaction, as follows:

Core Advantages：

• Strong Buyer Risk Control: Buyers avoid complex international transportation arrangements and simply receive unloaded goods locally, significantly reducing the complexity of managing international logistics. Furthermore, risk is transferred after unloading, avoiding liability disputes arising from damage to goods after arrival but before unloading. For example, when importing goods, small and medium-sized enterprises can use DPU to fully transfer cross-border transportation risks to the seller, allowing them to focus on their core business.
• Improved seller market competitiveness: For sellers with mature logistics networks, assuming transportation and unloading responsibilities can enhance the attractiveness of their offers. Especially in markets where buyers are unfamiliar with international logistics, DPU clauses can serve as a differentiated competitive advantage and increase order conversion rates.
• Clear division of responsibilities and powers: Incoterms 2020 clearly stipulates the unloading responsibility, risk nodes, and cost scope of DPU, reducing common disputes such as “unclear unloading responsibility” and “ambiguous cost sharing” and lowering contract negotiation costs.

 Main disadvantages：

• The seller faces higher costs and risks: The seller needs to bear the entire transportation and unloading costs. If there are unexpected situations such as rising oil prices or port congestion on the transportation route, the costs may exceed expectations. At the same time, if the goods are damaged during the unloading process (such as damage to the container due to crane operation errors), the seller is liable for compensation.
• Buyers face heavy pressure to clear import customs: If the buyer lacks experience in import customs clearance or the customs clearance process in the region where they are located is complicated (such as some developing countries), customs clearance delays may cause the goods to be detained at the port, resulting in additional demurrage and storage fees, which must be borne by the buyer.
• Limited transportation flexibility: The seller is in charge of the transportation arrangements, and the buyer cannot independently choose the carrier or transportation route. If the logistics service provider selected by the seller is inefficient, it may affect the delivery time of the goods, and the buyer has no direct control over this.

4、When to Use a DPU Agreement?

The applicable scenarios of DPU need to be comprehensively judged based on factors such as transportation mode, buyer and seller capabilities, and cargo characteristics. The following are four typical applicable scenarios:

The buyer lacks international logistics experience

For buyers like startups and small and medium-sized enterprises that lack cross-border shipping resources and experience, DPUs offload complex steps like shipping and unloading to the seller, allowing buyers to focus solely on import customs clearance and receiving the goods, thus lowering the transaction barrier. For example, when sourcing goods from overseas, small retailers can choose DPUs to avoid the risks associated with unfamiliarity with international shipping regulations.

Transactions dominated by multimodal or land transport

Because the DPU is applicable to all modes of transport, it is particularly well-suited for scenarios such as cross-border road transport and rail-road intermodal transport. For example, in cross-border road trade on the New Land-Sea Corridor, the DPU can be used in conjunction with the TAOBH series of supplementary terms to clearly define the responsibilities and risks of unloading during road transport. Furthermore, for multimodal transport involving ocean freight and inland trucking, the DPU covers the unloading process from the port to the final destination, avoiding the fragmentation of responsibilities associated with segmented transport.

Cargo requiring special unloading equipment

For goods like large machinery and heavy equipment that require specialized unloading equipment (such as cranes and hydraulic platforms), a DPU can clearly assign the seller the responsibility for arranging and operating the unloading equipment, preventing buyers from being unable to receive the goods due to a lack of equipment. For example, when a factory imports production line equipment, choosing a DPU ensures that the seller coordinates the crane to complete the unloading, minimizing handover disputes.

The buyer requires delivery at a fixed unloading point

When buyers require goods to be delivered directly to a fixed location, such as a production plant or warehouse, and unloaded, a DPU is more suitable than a DAP, which only delivers to the location but does not unload the goods. For example, a food processing company requires raw materials to be unloaded directly into the factory’s raw material warehouse. A DPU ensures that the seller completes the entire delivery process, including transportation and unloading.。

5、DPU FAQ’s

If you want to know the details of other incoterms, you can visit Incoterms Guide [Updated 2025] With Chart.