DPU INCOTERMS 2020 - Delivery at the destination in the unloaded state

This term can be used regardless of the chosen mode of transport, as well as when using more than one mode of transport.
DPU-INCOTERMS-2020-VINCULUM-Customs clearance Vladivostok-GC-IMPORT40 Factory or warehouse of the manufacturer or seller Delivery from the factory or warehouse to the departure terminal Placement of goods at the cargo terminal Placement of goods on board the vessel State border Sea transportation to the port of discharge Placement in a temporary storage warehouse at the port of arrival (unloading) Delivery of the goods at the destination in the unloaded state Cargo recipient's warehouse The area of expenses and responsibility of the seller whenDPU The area of expenses and responsibility of the buyer at the DPU The moment of transition of risks at DPU !

Delivered at Place Unloaded(Delivery at the destination in the unloaded state) means that the seller deliversproduct, and the risk passes to the buyer when the goods unloaded from the arriving vehicle are placed at the disposal of the buyer at the named destination or at an agreed point in such a place, if such a point is agreed.

The seller bears all risks associated with the delivery of the goods and its unloading at the named destination. Therefore, in this termIncoterms delivery and arrival at the destination are the same. DPU is the only Incoterms term that requires the seller to unload the goods at the destination. Therefore, the seller should make sure that he can arrange unloading at the named place. If the parties assume that the seller will not bear the risk and costs of unloading, they should avoid using the term DPU, instead it is advisable to useDAP.

It is recommended that the Parties determine the destination most accurately for several reasons.

  1. Firstly, the risk of loss or damage to the goods passes to the buyer at this point of delivery/destination, and it is better for the seller and the buyer to have a clear idea of the point at which this critical transition occurs.
  2. Secondly, the costs before this place or point of delivery/ destination are borne by the seller, and the costs after this place or point are borne by the buyer.
  3. Thirdly, the seller is obliged to conclude a contract of carriage or arrange the transportation of the goods to an agreed place or point of delivery/ destination.

Failing to do so, the seller will violate its obligations under this term and will be liable to the buyer for any subsequent losses. For example, the seller will be responsible for any additional costs charged by the carrier to the buyer for any additional door-to-door transportation.

Under the terms of the DPU, if necessary, the seller performs the formalities necessary for export. The seller, however, is not obliged to perform the formalities necessary for importation or transit through third countries after delivery, pay import customs duties or perform other customs formalities for importation. As a result, if the buyer is unable to arrange for the import clearance, the goods will be detained at the port or at the domestic terminal in the country of destination.

Who bears the risk of losses that may occur while the goods are held at the port of entry in the destination country? The answer is the buyer, since the delivery has not yet been carried out, therefore the rule of clause B3(a) applies, providing that the buyer bears the risk of loss or damage to the goods until transportation to the named internal point is resumed. If, in order to avoid such a scenario, the parties intend to impose on the seller the fulfillment of the formalities necessary for importation, payment of import duties or taxes and customs formalities for importation, it is advisable for them to consider the possibility of using the termDDP.

 

 

Find out what needs to be considered and taken into account when choosing a DPU Close the list of actions at DPU
  • to clarify in detail the parameters and characteristics of cargo packages (including labeling), this is necessary for subsequent customs clearance of goods;
  • clearly coordinate with the seller and define the destination of the goods in the contract;
  • make sure that the seller is able to arrange the unloading of the goods at the destination;
  • to agree with the insurance company the terms of insurance, if necessary;
  • obtain permits if necessary;
  • pay customs fees for the import of goods;
  • to carry out customs clearance of goods;

This list is not complete and depends on the specific case, this term is not recommended ifcargoit is planned to send further across Russia in container trains, since the exact line of which the shipment will be carried out is not known, which will eventually increase the cost of railway transportation.

 

1.General obligations of the seller and the buyer under the terms of the DPU

A.1.The seller is obliged to provide the goods and the commercial invoice-invoicein accordance with the contract of sale, as well as any other proof of compliance that may be required under the terms of the contract.Any document provided by the seller may be in paper or electronic form, if agreed, and in the absence of an agreement - in accordance with business practices.
V.1.The buyer is obliged to pay the price of the goods, as stipulated in the contract of sale.
Any document provided by the buyer may be in paper or electronic form, if agreed, and in the absence of an agreement - in accordance with business practices.

2.Delivery under DPU conditions

A.2.The seller is obliged to unload the goods from the arriving vehicle and deliver the goods by placing it at the disposal of the buyer at the agreed point, if any, at the named destination, or by providing the goods delivered in this way. In any case, the seller is obliged to deliver the goods on the agreed date or within the agreed period.
B.2.The buyer is obliged to accept delivery of the goods delivered in accordance with paragraph A2.

3.Transfer of risks under DPU conditions

A.3.The seller bears all risks of loss or damage to the goods until the moment of its delivery in accordance with paragraph A2, except for the risks of loss or damage under the circumstances specified in paragraph BZ.
B.3.The buyer bears all risks of loss or damage to the goods from the moment of its delivery in accordance with paragraph A2.
If:
a) the buyer does not fulfill his obligations in accordance with clause B7, he bears all the associated risks of loss or damage to the goods; or
b) the buyer does not provide notice in accordance with clause B10, he bears all risks of loss or damage to the goods, starting from the agreed date or from the end of the agreed delivery period,
provided that the goods have been explicitly individualized as the goods that are the subject of the contract.

4.Transportation under DPU conditions

A.4.

The seller is obliged, at his own expense, to conclude or arrange for the conclusion of a contract for the carriage of goods to the named destination or to an agreed point, if any, at the named destination. If a specific point is not agreed upon or cannot be determined based on practice, the seller can choose the most suitable point for his purposes at the named destination.

The seller is obliged to comply with any safety requirements related to transportation to the destination.

V.4.The buyer has no obligation to the seller to conclude a contract of carriage.

5.Insurance under DPU conditions

A.5.The seller has no obligation to the buyer to conclude an insurance contract.
V.5.The buyer has no obligation to the seller to conclude an insurance contract. However, the buyer is obliged to provide the seller, at his request, at his risk and at his expense, with the information necessary to obtain insurance.

6.Document delivery/transport document DPU conditions

A.6.The seller is obliged, at his own expense, to provide the buyer with a document allowing the buyer to accept delivery of the goods.
V.6.The buyer is obliged to accept the delivery document provided in accordance with clause A6.

7.Export/import cleaning under DPU conditions

A.7.

a) Export and transit clearance

If required, the seller is obliged to perform and pay all the formalities necessary for export and transit clearance required in the country of export and in any transit country (other than the country of import), such as:

a) Assistance in the implementation of import cleaning

If necessary, the seller is obliged to assist the buyer, at his request, at his risk and at his expense, in obtaining any document and/or information concerning all the formalities necessary for import clearance, including safety requirements and pre-shipment inspection required in the country of import.

V.7.

a) Assistance in the implementation of export and transit clearance

If necessary, the buyer is obliged to assist the seller, at his request, at his risk and at his expense, in obtaining documents and/or information regarding all formalities necessary for export/transit clearance, including safety requirements and pre-shipment inspection required in the country of export and in any transit country (other than the country of importation).

b) Import cleaning

If required, the buyer is obliged to perform and pay all the formalities required in the country of importation, such as:

  • import license;
  • compliance with security requirements for import;
  • pre-shipment inspection; and
  • any other official permission

8.Inspection/packaging/labeling under DPU conditions

A.8.The seller is obliged to pay the costs associated with the inspection of the goods (quality control, measurement, weighing, counting) necessary for the delivery of the goods in accordance with paragraph A2. The seller is obliged to ensure the packaging of the goods at his own expense, except in cases where it is usually customary in this branch of trade to ship the goods sold without packaging. The seller is obliged to pack and label the goods in a manner appropriate for their transportation, unless the parties have agreed on specific requirements for packaging or labeling.
V.8.The buyer has no obligation to the seller.

9.Cost allocation under DPU conditions

A.9.The seller is obliged to pay:
  1. all expenses related to the goods and their transportation up to the time of unloading and delivery in accordance with paragraph A2, except for expenses paid by the buyer in accordance with paragraph A7 (a);
  2. the costs of obtaining the delivery document/transport document in accordance with paragraph A6;
  3. if required, duties,taxesand any other costs associated with export or any transit clearance in accordance with paragraph A7 (a); and
  4. to the buyer all costs and fees related to assistance in obtaining documents and information in accordance with paragraphs B5 and B7 (a).
V.9.The buyer is obliged to pay:
  1. all expenses related to the product from the moment of its delivery in accordance with paragraph A2;
  2. to the seller all costs and fees related to assistance in obtaining documents and information in accordance with paragraph A7 (b);
  3. if required, duties, taxes and any other costs associated with import clearance in accordance with paragraph B7 (b), and
  4. any additional costs incurred by the seller if the buyer has not fulfilled its obligations in accordance with paragraph B7 or has not transmitted a notice in accordance with paragraph B10, provided that the goods have been explicitly individualized as goods that are the subject of the contract.

10.Notices under DPU conditions

A.10.The seller is obliged to provide the buyer with a notice allowing the buyer to receive the goods.
Q.10.If it is agreed that the buyer has the right to determine the time within the agreed period and/or the point of acceptance of delivery at the named destination, the buyer is obliged to provide the seller with proper notice.
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