01Obligations under DPU
Seller: Carriage, export clearance, unloading at destination.
Buyer: Import clearance, duties, on-carriage.
The precise split of the 10 obligation pairs (A1–A10 / B1–B10) is binding under the ICC Incoterms 2020 rules.
02Risk and cost transfer
Risk transfer: After unloading is complete at destination.
Cost transfer: Seller bears carriage including unloading.
For several Incoterms, the risk and cost points do not coincide — this is the biggest source of misunderstanding in international trade. Cargo insurance should always be aligned with the risk transfer point, not the cost transfer point.
03When to use DPU
Useful when the seller has unloading capability at destination (project cargo, heavy lift). Replaces the 2010-term DAT (Delivered at Terminal).
Before choosing, verify: Can both parties operationally handle customs, carriage and insurance in the respective country? Are there tax implications (e.g. VAT under DDP)? Which documents (commercial invoice, certificate of origin, B/L, CMR, AWB) are required?
04Common pitfalls
1) Mode mismatch: DPU works for all modes — but always specify the named place precisely (city, country, optionally a terminal code) on the commercial invoice.
2) On-board notation: For sea Incoterms, a correct on-board notation on the B/L is critical for letter-of-credit settlement.
3) Insurance cover: Explicitly agree ICC A / B / C and the sum insured.
Frequently asked questions
What does DPU mean in practice?
Only Incoterm 2020 where the seller also unloads — successor of DAT. Applicable to any mode of transport. Risk transfer: After unloading is complete at destination.
Who pays cargo insurance under DPU?
No mandatory insurance. The buyer bears the risk from the transfer point onwards and should insure accordingly.
Is DPU suitable for containers?
Yes. The term applies to all modes, including container transport.