DPU is short for Delivered at Place Unloaded, and it is one of the 11 Incoterms created by the ICC to ease international trade. The DPU Incoterm from 2020 was formerly known as Delivered at Terminal (DAT), and it was updated in 2020 to be more comprehensible. Learn about the changes to the DAT Incoterm in 2020 and how the DPU shipping terms and prices work. Get ready to ship your cargo more efficiently.
Formerly known as Delivered at Terminal, the DPU Incoterm in 2020 determines the responsibilities of the seller and buyer for international trade. DPU shipping terms can be used for all types of transport, including intermodal freight.
When using DPU shipping terms, the seller and buyer should agree on the destination place, which can be a port, hub, buyer’s premises or any other place.
The seller is responsible for arranging export clearance, freight transport, and loading and unloading of the goods at a designated point in the country of destination. The DPU shipping term is the only Incoterm that requires the seller to unload the goods at the country of destination. After the goods are unloaded, the risk transfers from the seller to the buyer. When using the DPU Incoterms from 2020, the buyer is responsible for import duties in the country of destination, as well as any last-mile deliveries and warehousing fees after the cargo is delivered.
When using the DPU Incoterm, the price paid by the seller includes export duties, freight transport charges, and loading and unloading of the merchandise at the designated point of delivery. The buyer will have to pay for import duties and clearance, as well as any last-mile deliveries from the designated unloading point.
For example, an Irish company sells 100,000 units of merchandise to a US company under the DPU shipping terms. The US company designates their warehouse in Virginia as the designated location.
DAT shipping terms were updated in 2020 to be more efficient and cover different means of transport. Delivered at Terminal established the terminal as the only possible designated unloading point, whereas DPU 2020 allows the buyer to designate any location at their convenience. This makes the Delivered at Place Unloaded much more general than Delivered at Terminal. When shipping under the DPU Incoterm, delivery can occur in any location, be it a warehouse, a terminal or a roadside.
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