Definition of the DPU Incoterm (Delivered at Place Unloaded)
Quick Overview
DPU (Delivered at Place Unloaded) is the Incoterm under which the seller delivers and unloads the goods at the named place of destination, bearing all costs and risks up to that point. It is the only Incoterm that requires the seller to unload the cargo, and it can be used for any mode of transport, including multimodal shipments.
DPU explained in 30 seconds
Seller’s Main Obligations (DPU)
- Export formalities in the country of origin.
- Carriage to the named place (port, terminal, warehouse, job site, etc.).
- Unloading from the arriving vehicle at that place.
- Provision of the commercial invoice, packing list, and transport document (B/L or AWB).
- Notification to buyer once goods are placed at the buyer’s disposal, unloaded.
DPU is the only Incoterms® 2020 rule that requires the seller to unload the goods at the named destination before delivery and risk transfer.
Buyer’s Main Obligations (DPU)
- Payment for the goods as per the sales contract.
- Import customs clearance, duties, VAT, and any local taxes.
- On‑carriage from the unloading point to the final destination.
- Insurance for the buyer‑controlled leg (optional but advisable).
Insurance under DPU
DPU does not require either party to obtain cargo insurance.
The seller bears cargo risk until the goods have been unloaded and placed at the buyer’s disposal at the named destination. If the seller obtains insurance, the coverage should match that responsibility, including unloading where covered by the policy.
The buyer should consider protection for any movement or exposure after delivery. Agree who arranges insurance and check the insured value, coverage period, exclusions and deductible before shipping.
DPU vs. DAP vs. DDP
| Responsibility | DPU | DAP | DDP |
|---|---|---|---|
| Transportation to the named destination | Seller | Seller | Seller |
| Export and applicable transit customs formalities | Seller | Seller | Seller |
| Import customs clearance | Buyer | Buyer | Seller |
| Applicable import duties and taxes | Buyer | Buyer | Seller |
| Unloading at the named destination | Seller | Buyer | Buyer |
| Delivery and normal risk-transfer point | After unloading, when the goods are placed at the buyer’s disposal | On the arriving vehicle, ready for unloading | Import-cleared, on the arriving vehicle, ready for unloading |
| Mandatory cargo insurance under the rule | None | None | None |
Under Incoterms® 2020, DPU requires the seller to unload the goods at the named destination before delivery and risk transfer. DAP and DDP normally assign unloading to the buyer.
Under DAP or DDP, unloading charges may already be included in the seller’s transport contract. Payment of those charges does not, by itself, change the delivery or risk-transfer point. Record any agreed variation clearly in the sales contract.
For more detail, compare DAP and DDP responsibilities.
DPU is often chosen when the buyer lacks equipment or expertise to unload safely.
Scenario. A Korean industrial-equipment maker sells $45,000 of plant machinery DPU Antwerp Customer Warehouse (Belgian buyer's facility) — DPU = Delivered at Place Unloaded; seller pays through unloading at destination. Renamed from DAT in Incoterms 2020 to broaden from "Terminal" to any place.
| Cost line (seller pays under DPU) | Range (USD) | Source |
|---|---|---|
| Origin trucking + load Busan plant → Busan Port | $320-480 | icontainers KR origin tariff, H1 2026 |
| Origin THC + export docs Busan | $220-310 | Port of Busan tariff 2026 |
| Ocean freight 40ft Busan → Antwerp | $2,400-3,200 | Drewry WCI East Asia-North Europe 40ft, H1 2026 |
| Destination THC + drayage Antwerp → buyer warehouse | $500-770 | Port of Antwerp tariff + EU drayage |
| Unloading at buyer's warehouse (forklift / crane) | $280-520 | EU heavy-equipment unload market rate, H1 2026 |
| Seller's DPU cost stack | $3,720-5,280 | Sum (excl. cargo) |
DPU is the only Incoterm where seller is obligated to unload at destination. Distinguishes from DAP (seller delivers; buyer unloads) and DDP (seller delivers including duty but buyer unloads). Use DPU when unloading requires specialist equipment seller controls.
Under DPU, the buyer handles import customs clearance and pays applicable import duties and taxes. DPU does not establish a VAT rate or a universal tax-calculation formula.
For imports into the European Union, the VAT rate depends on the member state and the goods. The import VAT base generally starts with the customs value and includes applicable duties and qualifying incidental expenses, such as transport and insurance to the first destination, to the extent not already included. Other known destinations may also affect the calculation.
Confirm the customs value, classification, VAT rate and any exemption or relief with the destination customs broker. Avoid counting freight or insurance twice when these amounts are already included in the customs value.
When Does DPU Make Sense?
- Construction or energy projects where cranes/forklifts are arranged by the seller.
- Remote sites with limited buyer infrastructure.
- Buyer wants single price but will manage import clearance independently.
Common Pitfalls and How to Avoid Them
| 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. |
Required Documents at a Glance
- Commercial Invoice & Packing List
- Bill of Lading / Air Waybill marked “DPU, [Named Place], Incoterms 2020”
- Export customs declaration
- Any certificates (origin, conformity) demanded by the buyer’s market
Key Takeaways
- Seller shoulders more risk and cost than under DAP because unloading is included.
- Risk passes only after unloading, so sellers should verify site access, equipment, and safety.
- Clear contract wording—especially the exact delivery point and unloading responsibilities—prevents disputes.
- 1. Quick Overview
- 2. DPU explained in 30 seconds
- 3. Seller’s Main Obligations (DPU)
- 4. Buyer’s Main Obligations (DPU)
- 5. Insurance under DPU
- 6. DPU vs. DAP vs. DDP
- 7. When Does DPU Make Sense?
- 8. Common Pitfalls and How to Avoid Them
- 9. Required Documents at a Glance
- 10. Key Takeaways
- 11. Sources & References
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