The DPU rule was introduced in Incoterms 2020, replacing DAT. It requires the seller to deliver and unload the goods at the named place of destination, after which risk transfers to the buyer. DPU can be used with any mode of transport. (ICC Academy)
Key point: DPU is the only Incoterm where the seller must pay for unloading. (ICC Academy)
Incoterms do not oblige either party to purchase cargo insurance.
Typical practice:
Clear insurance clauses in the sales contract help avoid coverage gaps.(International Trade Administration)
Rule | Who Unloads? | Who Clears Import? | Typical Use‑Case |
---|---|---|---|
DPU | Seller | Buyer | Large projects where seller controls handling at site |
DAP | Buyer | Buyer | General cargo where buyer handles unloading |
DDP | Seller | Seller | Door‑to‑door service, seller assumes all costs & formalities |
DPU is often chosen when the buyer lacks equipment or expertise to unload safely.
Pitfall | Why it Happens | Mitigation |
---|---|---|
Unloading delays & extra charges | Site not ready, wrong equipment | Specify unloading gear, time slot, and penalty clauses. |
Damage during unloading | Poor coordination or unsuitable equipment | Agree on SOPs, insurance coverage, and qualified operators. |
Ambiguous place of delivery | “Job site” too vague | State GPS coordinates or exact warehouse bay in the contract. |
Insurance gaps | Each party assumes the other has coverage | Clarify policy holder and coverage window in writing. |
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