DPU: Delivered at Place Unloaded

DPU (Delivered at Place Unloaded): The Full Journey

According to the newest DPU Delivered at Place Unloaded term added in 2020, it is the epitome of door-to-door service in the Incoterms. The seller bears all risks and costs, including unloading at the named place of destination. Picture a pizza delivery, where the delivery person not only brings the pizza to your door but also unboxes it for you. That’s DPU.

Seller’s Obligations:

Deliver the goods, unloaded, at the named place of destination.

Pay for transport to the named place of destination.

Clear the goods for export.

Buyer’s Obligations:

Clear the goods for import, paying any customs duties.

Bear all risks of loss or damage once the goods have been unloaded at the named place of destination.

DPU Delivered at Place Unloaded Costs and Risks for buyer and seller

DPU instance:

The seller: A Chinese supplier of 5-axis CNC machining parts from Dongguan, China

The buyer: A big car brand in Germany

Shipping incoterm: DPU (Delivered at Place Unloaded) for 1 container of car parts

Here’s how the costs would break down:

Product Cost: Agreed price for the CNC machining parts is $100,000.
Local Logistics: Costs for delivering goods from the factory to the port in China (seller’s responsibility), let’s assume $2,000.
Export Customs Clearance: Costs for the goods to be cleared for export by Chinese customs (seller’s responsibility), let’s assume $1,000.
Freight Charges: Cost of shipping goods across the ocean to the destination port in Germany (seller’s responsibility under DPU), let’s assume $5,000.
Import Customs Clearance: Duties and taxes for goods to be cleared by German customs (seller’s responsibility under DPU), let’s assume $10,000.
Local Logistics in Germany: Costs for delivering goods from the port to the buyer’s factory in Germany and unloading them (seller’s responsibility under DPU), let’s assume $3,000.

So, the total cost to the seller (DPU price) is $100,000 (Product Cost) + $2,000 (Local Logistics) + $1,000 (Export Customs Clearance) + $5,000 (Freight Charges) + $10,000 (Import Customs Clearance) + $3,000 (Local Logistics in Germany) = $121,000.

Shipping:

Under DPU, the seller has the obligation to arrange and pay for the carriage of the goods to the agreed destination, and also to unload the goods. However, the risk transfers from the seller to the buyer as soon as the goods have been unloaded at the named place. The buyer is responsible for any additional costs and risks from this point forward.

Therefore, the total cost to the buyer is the DPU price ($121,000). There are no additional costs for the buyer under DPU, as all costs and risks up to the point of unloading at the destination are borne by the seller.

GWT Worldwide Logistics Group is a professional freight forwarder from China with deep experience. News Room of GWT Worldwide.