What Does DPU Mean? Incoterms Explained

Delivered at Place Unloaded (DPU) is one of the 11 Incoterms the International Chamber of Commerce uses to define shipper responsibility in international trade.

It places a unique focus on unloading obligations while allowing sellers to provide an end-to-end delivery experience.

In this article, we explain what DPU means, how it works, the benefits and challenges to buyers and sellers, and how it compares to other Incoterms.

What does DPU mean?

Under the Delivered at Place Unloaded (DPU) Incoterm, the seller assumes responsibility for the entire delivery process. They must transport the goods to a specified location and unload them upon arrival.

The specified location can be a port, warehouse, freight terminal, distribution centre or even the buyer’s premises.

The buyer then takes over responsibility for customs clearance, duties and any onward transportation.​

DPU is the only Incoterm that explicitly requires the seller to unload goods at the destination. This makes it particularly suitable for shipments where the buyer lacks the expertise or resources to handle the unloading.

An example of DPU in action

• Let’s illustrate how DPU works with an example of a UK retailer purchasing goods from the Far East using DPU.

Under DPU, the Chinese seller is responsible for all costs and risks associated with transporting the goods from the factory to the retailer’s warehouse in Birmingham.

That includes clearing export customs, arranging ocean freight and unloading goods at the specified UK port, DP World London Gateway.

From that point on, the retailer is responsible for clearing import customs, paying VAT and transporting goods to their warehouse.

As you can see, DPU facilitates smooth cross-border trade by delineating responsibilities, giving buyers a hands-off delivery experience and letting sellers have complete control over shipping.

What is the buyer responsible for under DPU?

While the seller handles most of the heavy lifting under DPU, buyers still have several important responsibilities. These include:

• Coordinating with customs authorities

• Submitting custom clearance documents

• Paying import duties, taxes and VAT

• Arranging final mile transportation

The buyer also assumes risk and liability for the goods as soon as they’ve been unloaded. Buyers may also bear additional costs if they don’t accept delivery on the agreed-upon date.

What are my responsibilities as a seller under DPU?

Sellers carry most of the responsibility when shipping under DPU. They manage the entire journey until unloading is finished. This includes:

• Arranging and paying for the main carriage to the buyer’s specified destination

• Clearing export customs and completing shipping documents, like a bill of lading

• Pay loading charges at departure and unloading charges at the destination​

• Providing proof of delivery

The seller is liable for any loss or damage that occurs during transit. The risk and responsibility only transfer to the buyer when the goods have been unloaded at the destination.

What are the benefits of DPU for buyers and sellers?

DPU offers several benefits to buyers and sellers in international trade.

Benefits for sellers

DPU gives sellers end-to-end control of the shipping process. They maintain complete oversight of the transportation and unloading process, which is great when selling fragile or high-value goods.

It also lets them offer an attractive service to clients, particularly in markets where buyers prioritise streamlined logistics.

Benefits for buyers

DPU dramatically reduces the logistical burden on buyers. The seller handles the entire shipping and unloading process, letting you focus on running and growing your business.

At the same time, you retain customs autonomy. That lets you leverage local expertise to minimise duty payments and employ tariff classification strategies to avoid overpaying.

Unlike the Incoterm’s predecessor, Delivered at Terminal (DAT), DPU lets you designate anywhere as a delivery location, not just terminals.

What are the potential issues of DPU?

Despite DPU’s many benefits, there are several challenges that buyers and sellers should be aware of. These include:

• Unforeseen delays. Port strikes and rerouting due to geopolitical conflicts or terminal congestion can substantially escalate costs.

• Unloading logistics. Sellers must ensure the destination has adequate facilities and access for unloading operations. This can be particularly challenging when delivering to locations other than traditional terminals.

• Hidden import charges. Delays in import clearance may incur storage fees, demurrage charges or additional port costs.

• Insurance gaps. While the seller bears risk until unloading, buyers should consider whether additional insurance coverage is needed once they have possession of their goods.

What other Incoterms are there?

The International Chamber of Commerce (ICC) uses 11 Incoterms to define how costs, risks and responsibilities are divided between buyers and sellers in international trade. Other Incoterms include:

• EXW (Ex Works): The seller makes goods available at their premises or another agreed-upon location. From that point forward, the buyer assumes all risks and costs associated with transportation and export.

• FCA (Free Carrier): The seller delivers the goods to a carrier or another location designated by the buyer, covering all costs and risks up to that delivery point.

• CIP (Carriage and Insurance Paid To): The seller arranges and pays for transportation and insurance to the buyer's named destination. Risk transfers when goods are delivered to the first carrier.

• DAP (Delivered at Place): Similar to DPU, except the buyer is responsible for unloading the goods upon arrival at the named destination.

• DDP (Delivered Duty Paid): The seller assumes maximum responsibility, including all costs and risks for transportation, unloading, export and import customs clearance, duties and taxes. They deliver goods completely cleared and ready for the buyer.

How does DPU compare to DAP and DDP?

Understanding the differences between DPU and its closely related Incoterms helps you choose the right term for your shipment.

DPU vs DAP

The key difference lies in unloading responsibilities. Under DPU, the seller unloads goods at the destination. Under DAP, the buyer must unload goods. Risk transfers at different points, too. Under DPU, the risk passes after unloading. Under DAP, risk transfers when the goods arrive ready for unloading.

DPU vs DDP

DDP places the maximum obligation on sellers. They must handle everything, including transportation, unloading and customs clearance. With DPU, the buyer retains responsibility for import procedures.

Get a DPU quote with Pro Carrier

The DPU Incoterm helps sellers provide an end-to-end delivery solution while giving buyers confidence that goods will arrive safely unloaded.

Finding the right Incoterm for your shipment isn’t always obvious, though. That's why it pays to work with a partner like Pro Carrier. Our reliable international freight forwarding service is backed by innovative technology and customer service excellence.

Take Horizon, our all-in-one supply chain platform, for example. It gives you complete visibility into your shipments, letting you track them wherever and whenever you like. We also ensure the smooth passing of import customs when you ship DPU, thanks to our proactive service that works two weeks ahead of schedule.

Speak to one of our experts today to learn more about shipping under DPU or another Incoterm.