What is DPU?
DPU, Delivered at Place Unloaded, is the only Incoterm where the seller is responsible for unloading goods at the named destination. The seller arranges and pays for all transport, export customs clearance, and the unloading operation. Risk transfers to the buyer once goods are unloaded. DPU applies to all transport modes and any named place, not just terminals. Introduced in Incoterms 2020, it replaced the previous DAT (Delivered at Terminal) rule.
If a supplier has quoted you “DPU [place name]” and you are trying to work out what that means for your business, this article explains it in plain English.
DPU is the most delivery-intensive Incoterm for the seller. The seller not only pays to ship the goods to your named place, they also unload them when they arrive. No other Incoterm asks that of the seller. That single feature makes DPU powerful for buyers but demanding for sellers.
Understanding exactly where risk sits during the journey, and who handles what at the destination, is what this article will teach you.
Here is the full sequence of events under a DPU shipment, from start to finish.
1. Contract agreed. The seller and buyer agree on DPU terms and name a specific destination: for example, “DPU Felixstowe Container Terminal” or “DPU buyer’s warehouse, Leeds LS1 1AA.” The named place is critical. It defines how far the seller’s obligations stretch, and the seller must be capable of unloading goods there.
2. Seller prepares and packs goods. The seller packs the goods, prepares them for export, and handles all origin costs including origin handling and haulage to the export point.
3. Seller handles export customs clearance. Export clearance in the country of origin is entirely the seller’s responsibility. The seller pays any export duties and taxes and needs an EORI (Economic Operators Registration and Identification) number in the country of export to do this legally.
4. Seller arranges main transport. The seller contracts and pays for carriage all the way to the named destination. This includes the main freight, whether by sea, air, road, or rail, and any transit costs along the way.
5. Goods arrive at the named destination. The vessel, aircraft, or vehicle arrives at the agreed place. At this point the seller still holds responsibility, goods are not yet delivered.
6. Seller unloads the goods. This is the step that makes DPU unique. The seller must arrange unloading at the destination and pay for it. This might mean hiring a crane at a port, organising a forklift at a warehouse, or arranging a tail-lift vehicle. The seller must plan for this cost from the start, it is often underestimated.
7. Risk transfers. Once the goods are unloaded at the named place, risk passes from the seller to the buyer. Any damage that happens during unloading is still the seller’s problem. Once the goods are safely on the ground, it becomes the buyer’s.
8. Buyer handles import customs clearance. From this point, the buyer takes over. Import customs clearance in the destination country, including UK customs declarations, import duty, and import VAT, is the buyer’s responsibility. The buyer needs a UK EORI number and files declarations through the UK Customs Declaration Service (CDS).
| Responsibility | Seller | Buyer |
|---|---|---|
| Packing and origin handling | Yes | No |
| Export customs clearance | Yes | No |
| Export duties and taxes | Yes | No |
| Origin haulage to carrier | Yes | No |
| Main freight to named destination | Yes | No |
| Unloading at named destination | Yes | No |
| Cargo insurance (not mandatory) | Optional | Optional |
| Risk of loss or damage in transit | Until goods unloaded at destination | From when goods are unloaded |
| Import customs clearance | No | Yes |
| Import duties and import VAT | No | Yes |
| Onward delivery beyond named place | No | Yes |
The single defining feature of DPU: the seller unloads the goods. Under DAP (Delivered at Place), the seller brings goods to the destination but leaves unloading to the buyer. Under DPU, the seller does not stop until the goods are on the ground. This distinction is the entire difference between the two terms.
When a supplier quotes you a price on DPU terms, here is what that price covers.
What the seller’s DPU price includes:
What the buyer must arrange and pay for separately:
A cost example in practice:
A UK engineering firm imports precision components from a manufacturer in Germany on DPU Southampton dockyard terms. The goods are worth £40,000. The DPU price covers everything, including the crane hire to unload the crates from the vessel at Southampton. The UK firm then arranges a customs broker (around £250), pays UK import duty at the applicable rate, and files a CDS declaration. Post-Brexit, all UK-EU imports require full customs declarations regardless of value.
Under DPU, risk passes from seller to buyer when the goods are unloaded at the named destination.
This is later than almost every other Incoterm. Under most Incoterms, including CIP, CPT, FOB, and DAP, risk passes during or at the start of the main transit leg. Under DPU, the seller carries the risk all the way through to the point of unloading at the destination.
What does this mean in plain terms?
If the goods are lost at sea, damaged on the road, stolen from a transit hub, or broken during unloading, all of that is the seller’s problem until the goods are safely unloaded at the named place. From that moment forward, any damage or loss becomes the buyer’s financial risk.
Here is a concrete example. A UK medical device distributor orders equipment from a Japanese manufacturer on DPU Heathrow Air Cargo Centre terms. During the flight, turbulence shifts the cargo and several units sustain internal damage. Because the goods have not yet been unloaded at Heathrow, risk has not yet transferred. The seller, the Japanese manufacturer, bears the financial loss and must either replace the goods or claim on their own insurance. The buyer receives the goods, and the seller’s problem is the seller’s to resolve.
This is why DPU is the most buyer-friendly Incoterm when it comes to risk. The seller holds risk for the longest possible portion of the journey.
Unlike CIP, DPU does not require either party to arrange cargo insurance. Insurance is not a mandatory obligation under DPU terms.
In practice, this creates a risk gap that both parties need to think about carefully.
For sellers under DPU: The seller carries risk throughout the entire journey until goods are unloaded at the destination. Without insurance, any damage, theft, or loss during transit is the seller’s financial loss, on top of the freight cost they have already paid. Any sensible seller operating under DPU should arrange comprehensive cargo insurance (Institute Cargo Clauses A, all risks) to protect themselves.
For buyers under DPU: Once goods are unloaded and risk has transferred, the buyer is exposed. If the buyer has not arranged cover for the goods from that point forward: for example, during onward transport or storage, they are uninsured. Buyers should check whether their existing business property or goods-in-transit insurance covers the goods from the point of unloading.
Practical advice for UK buyers:
Ask your supplier what cargo insurance they have in place before goods ship. DPU does not require them to hold any, but a responsible seller will carry cover. Confirm the insured amount, the policy level (Clauses A is the gold standard), and that the policy remains in force through to unloading at your named destination.
If the seller cannot confirm they hold adequate cover, consider arranging your own marine cargo policy for the voyage, even though risk sits with the seller during transit, you want to know there is a policy someone can claim on if the worst happens.
HMRC’s guidance on how Incoterms affect UK customs valuation is at gov.uk/guidance/customs-valuation/incoterms.
Maximum control over the supply chain. The seller manages every step from packing at origin to unloading at destination. This means the seller controls the carrier, the routing, the schedule, and the unloading process. Sellers with strong logistics networks can often deliver this more efficiently than buyers can arrange it themselves.
A highly competitive, all-inclusive quote. A DPU price is about as comprehensive as a delivered price gets without crossing into import duty territory. For buyers who want simplicity, a DPU quote is easy to evaluate, the buyer knows their only additional costs are customs clearance, import duty, and VAT.
Volume use on freight. Sellers who ship regularly can negotiate volume-based freight rates and pass savings into their DPU price. This can make their delivered price more competitive than a buyer would achieve arranging their own freight.
Differentiator against EXW and FCA sellers. In competitive markets, offering DPU terms signals to buyers that you are a capable, logistics-literate supplier. This can be a commercial advantage, particularly for buyers who are new to importing and want as little logistics responsibility as possible.
Clear endpoint for seller obligations. Once goods are unloaded and confirmed at the named place, the seller’s obligations end. There is no import duty exposure, no import customs complexity, and no liability for onward transport in the destination country.
The seller carries risk for the longest stretch of the journey. Under DPU, you as the buyer do not become at risk until the goods are unloaded at your named place. If anything goes wrong during transit or during the unloading operation, it is the seller’s problem to resolve. For buyers new to importing, this is a major comfort.
Unloading is arranged by the seller. You do not need to book cranes, forklifts, dock labour, or specialist unloading equipment. The seller takes care of it. This is especially valuable if you are receiving large, heavy, or awkwardly sized goods that require specialist handling.
Simplified logistics management. You do not have to choose a carrier, negotiate freight rates, or manage transit documentation. The seller handles everything up to and including the unloading. Your involvement starts at import customs clearance.
No surprises on freight costs. Your landed cost is the DPU price plus import duty and customs clearance costs. There are no unexpected freight bills after the goods have shipped.
Works for any transport mode. DPU applies to sea, air, road, and rail, so you can use the same Incoterm regardless of how your goods are moving.
Unloading at destination can be complicated and expensive. The seller must be able to arrange unloading at a place they may never have visited. If the named destination is a buyer’s warehouse with limited equipment access, the seller has to source and fund a solution from a distance. Crane hire in the UK, for example, can run from £500 to several thousand pounds, a cost easy to miss when pricing a deal.
The seller carries risk for the entire journey. Under DPU, the seller does not shed risk until the unloading is complete at the destination. This is a long period of financial exposure. A damaged shipment anywhere between the seller’s factory and the named UK destination is the seller’s loss. Without adequate cargo insurance, this is dangerous.
Destination country regulations can affect unloading. In some locations, unloading at a terminal or port requires specific licences, certifications, or union labour arrangements. A seller unfamiliar with UK port or warehouse regulations may underestimate the complexity, or find they cannot legally perform the unloading themselves and must contract a local agent.
Insurance costs are entirely the seller’s risk to manage. DPU does not require the seller to hold insurance, but the risk exposure is enormous without it. Carrying comprehensive cover for the entire journey, including at-destination unloading, adds cost to every shipment.
Cash flow pressure. The seller pays freight, unloading, and insurance costs upfront before receiving payment. On high-value shipments, this is a major working capital burden.
Named place must be precise. If the named DPU place is vague, “DPU UK” or “DPU London”, disputes will arise about where the seller’s obligation actually ends. Sellers should insist on a full address or a named facility before accepting DPU terms.
Import customs clearance is entirely your responsibility. Once goods are unloaded, you are the importer of record. You need a UK EORI number, a customs broker, and a customs declaration filed through CDS. If you are unprepared, goods can be held at the port while you sort out documentation, and port storage charges at Felixstowe or Southampton accumulate quickly.
No mandatory insurance, so you need to check. DPU does not require the seller to insure the goods. If the seller has not arranged cover and something goes wrong in transit, you may have little recourse. Always confirm what insurance the seller is carrying before goods ship.
UK import duty and VAT are your costs. The DPU price does not include UK import duty or UK import VAT. For goods with a customs value above £135, import VAT at 20% applies. Depending on the commodity code, import duty may also apply on top. These costs need to be factored into your unit economics before you agree the deal.
Limited control over carrier and transit times. The seller chooses the carrier and the routing. If the seller prioritises cost over speed, your transit time may be longer than expected. You have limited visibility until the seller sends shipping documents, which can complicate warehouse planning.
Onward transport is your problem. DPU covers unloading at the named place. If that named place is a port terminal or freight depot rather than your warehouse, you still need to arrange and pay for the final leg. “DPU Felixstowe” means the goods are unloaded at Felixstowe, not delivered to your door.
DPU works well in the following situations.
When the seller has strong logistics capability and can reliably arrange unloading at the destination, DPU makes sense. Experienced exporters who ship regularly to UK destinations and have established forwarding relationships can absorb the unloading obligation without difficulty.
When you are buying heavy, bulky, or awkwardly shaped goods that require specialist unloading equipment, DPU is worth negotiating. If the seller routinely ships this type of cargo, they will already have unloading solutions priced in.
When you want maximum risk protection during transit and do not want to arrange freight yourself, DPU gives you the latest possible risk transfer point of any Incoterm, right at the point of unloading.
When you are importing into a terminal, port, or freight depot where the seller has established relationships with unloading operators, DPU is operationally clean.
When the buyer is new to importing and wants to minimise their logistics responsibilities, DPU limits those responsibilities to import customs clearance, duty payment, and onward transport from the named place.
DPU is particularly common in heavy manufacturing, machinery, and project cargo, where unloading specialist equipment at a UK port or depot is a real logistical challenge.
Avoid DPU when the seller cannot reliably arrange unloading at your named destination. If a seller is unfamiliar with UK ports, terminals, or warehouse procedures, the unloading step becomes a risk. A seller who underestimates unloading complexity can delay your goods, or arrive without the right equipment.
Avoid DPU when you have your own freight forwarder and want control of the supply chain. If you have a preferred freight forwarder with competitive rates and good visibility of transit, you are better off with FCA (Free Carrier) terms, where you take control from the point of export clearance.
Avoid DPU if the named destination is impractical for unloading. Not every warehouse or delivery point can accommodate the unloading operations a seller might need to arrange. If your delivery point has restricted access, low ceilings, or weight limitations, DPU may create problems that a simple DAP contract would avoid.
Avoid DPU when buying smaller, low-value consignments. For small parcels or low-value goods, the overhead of arranging destination unloading adds cost disproportionate to the value of the shipment. Simpler terms like DAP or CIP may be more practical.
Avoid DPU if your supplier is not familiar with Incoterms 2020. DPU is new as of 2020 and replaced DAT. Some suppliers, particularly smaller exporters, may not yet be comfortable with DPU obligations. If your supplier seems uncertain, clarify the exact obligations in the contract rather than relying on the Incoterm label alone.
If DPU is not right for your situation, consider DAP (Delivered at Place) if you want delivered terms but the buyer can handle unloading, or DDP (Delivered Duty Paid) if you want the seller to cover import duties as well.
Mistake 1: Forgetting the unloading obligation.
This is the most common error. Sellers agree DPU terms without pricing in the cost of unloading at the destination. Crane hire, forklift hire, terminal labour, these costs vary majorly by location and cargo type. Always cost the unloading step before accepting DPU terms as a seller.
Mistake 2: Using a vague named place.
“DPU UK” or “DPU London” is not a workable DPU contract. The named place must be specific enough for the seller to arrange unloading and for both parties to know exactly when the seller’s obligation ends. Use a full address, a terminal name, or a named facility with a postcode.
Mistake 3: Assuming DPU includes import duty.
DPU does not include UK import duty or UK import VAT. These are the buyer’s costs. New importers sometimes see “delivered” in the term and assume everything is covered. It is not. HMRC’s guidance on customs valuation and Incoterms is at gov.uk/guidance/customs-valuation/incoterms.
Mistake 4: Not arranging cargo insurance.
DPU does not require either party to hold insurance. Sellers carrying risk all the way to destination without insurance are dangerously exposed. Buyers who assume the seller has insurance when they do not are equally exposed after unloading. Always confirm what insurance is in place before goods ship.
Mistake 5: Importing without a UK EORI number.
As the UK buyer under DPU, you are the importer of record. You cannot import goods commercially into the UK without a UK EORI number. Register through HMRC, it typically takes 3–5 working days. Without it, your goods can be held at the UK border while you apply.
Mistake 6: Confusing DPU with DAP.
The two terms look similar but the unloading responsibility is the entire difference. Under DAP, the seller delivers to the named place but the buyer unloads. Under DPU, the seller unloads. Mixing the two up in a contract or a buying decision is a real-world mistake that leads to disputes at destination.
Mistake 7: Using DAT by mistake.
DAT (Delivered at Terminal) was the predecessor to DPU and was removed in Incoterms 2020. If you see DAT in a contract or quote, it refers to the old 2010 rules. DPU is the current equivalent. Always check that your contract specifies “Incoterms 2020.”
DPU and DAP (Delivered at Place) are closely related, and understanding the difference between them is essential, because the unloading question is where real disputes happen.
| Key Difference | DPU | DAP |
|---|---|---|
| Transport modes | All modes | All modes |
| Seller responsible for unloading | Yes | No |
| Buyer responsible for unloading | No | Yes |
| Risk transfer point | When goods unloaded at named destination | When goods available for unloading at named destination |
| Insurance obligation | None (optional for both parties) | None (optional for both parties) |
| Import customs clearance | Buyer | Buyer |
| Import duties and VAT | Buyer | Buyer |
| Named destination | Any named place | Any named place |
The practical difference is this. Under DAP, the seller delivers the lorry, container, or aircraft cargo to the named place, and parks it. The buyer then organises and pays for unloading. Under DPU, the seller does not stop until the goods are physically off the vehicle and on the ground.
For heavy machinery, oversized cargo, or specialist equipment, that distinction is major. The seller under DPU must arrange unloading equipment, pay for it, and take on the risk until unloading is complete. Under DAP, that is the buyer’s problem.
Which to choose? If the seller has better access to unloading equipment and expertise: for example, they routinely ship heavy plant to UK ports and have established lifting contractors. DPU makes operational sense. If the buyer has their own warehouse with unloading facilities, DAP is simpler and cheaper for both parties.
DDP (Delivered Duty Paid) is the most seller-intensive Incoterm of all. It goes one step further than DPU by requiring the seller to also pay UK import duty and UK import VAT. This makes DDP the most demanding term for sellers, but the simplest for buyers.
| Key Difference | DPU | DDP |
|---|---|---|
| Transport modes | All modes | All modes |
| Seller unloads at destination | Yes | Yes |
| Import customs clearance | Buyer | Seller |
| Import duties | Buyer | Seller |
| Import VAT | Buyer | Seller |
| UK EORI number required by buyer | Yes | Not necessarily |
| Risk transfer point | When goods unloaded at named destination | When goods unloaded at named destination |
Under DDP, the seller handles everything, export clearance, main freight, unloading at destination, import customs clearance, and all duties and taxes. The buyer simply receives the goods. This sounds appealing but creates real problems.
A foreign seller acting as importer of record in the UK needs a UK EORI number and must navigate HMRC rules, CDS declarations, and UK customs procedure, often through an agent. Errors in duty classification or valuation are the seller’s liability. Many UK logistics professionals advise against DDP unless the seller has strong UK customs expertise.
Under DPU, the buyer handles import customs clearance. This is typically better for UK buyers who know the UK system, have an established customs broker, and can make informed decisions about duty codes and VAT handling.
Which to choose? DPU is usually the better choice for most UK import situations. It keeps import clearance in the hands of the UK buyer, who understands UK customs better than a foreign seller. Reserve DDP for situations where your supplier specifically offers it, has proven UK import experience, and you have verified they hold a UK EORI number and use a reputable UK customs agent.
DPU applies to all transport modes: sea, air, road, and rail. There is no restriction on how the goods travel.
Sea freight. DPU is appropriate for full container loads (FCL) and less-than-container loads (LCL) arriving at UK ports such as Felixstowe or Southampton. The seller is responsible for unloading at the named terminal or berth. For container freight, this typically means the seller pays terminal handling charges and any container stripping or depot costs required to deliver goods in an unloaded condition.
Air freight. For air shipments, DPU works for cargo arriving at UK air freight facilities such as Heathrow Air Cargo Centre. The seller arranges unloading from the aircraft hold or cargo pallet. This is often handled by the ground handling agent on the seller’s behalf.
Road freight. Road freight from Europe, post-Brexit, requires customs declarations on both sides of the UK-EU border. Under DPU, the seller handles UK export clearance (where relevant) and delivers to the named UK destination, unloading included. For Dover crossings, transit customs procedures apply. Post-Brexit customs must be planned for regardless of the value of goods.
Rail freight. For goods moving by rail: for example, on direct services from China through the Belt and Road rail network. DPU is applicable. The seller would be responsible for unloading at a UK rail freight terminal.
Multimodal shipments. DPU is designed for multimodal transport, where goods travel by more than one mode. This is common for long-distance trade routes where sea, rail, and road legs are combined. The seller’s obligation continues across all modes until unloading at the named destination.
DPU is a new rule in Incoterms 2020. It did not exist in Incoterms 2010.
What happened to DAT?
In Incoterms 2010, the equivalent term was DAT, Delivered at Terminal. DAT required the seller to deliver goods to a named terminal and unload them there. The limitation was that DAT only applied to terminals, ports, airports, freight depots, container yards, and similar facilities. It did not explicitly cover delivery to non-terminal locations such as warehouses, factories, or construction sites.
In Incoterms 2020, the International Chamber of Commerce (ICC) replaced DAT with DPU. The change did two things.
First, it broadened the scope. DPU applies to any named place: not just terminals. The seller can deliver and unload at a port terminal, an inland freight depot, a buyer’s warehouse, or any other agreed location. This makes the term far more flexible than DAT was.
Second, it changed the name to make the defining obligation explicit. “Delivered at Place Unloaded” tells both parties immediately that the seller is responsible for unloading. DAT was less clear to those unfamiliar with Incoterms, the name did not signal the unloading obligation.
What stayed the same?
The core obligations remained consistent with DAT. The seller is still responsible for export clearance, main freight, and unloading at the named place. The buyer is still responsible for import customs clearance and duties. Risk still transfers at the point of unloading.
What should you check in contracts?
If you are using contracts that reference DAT (Incoterms 2010), those contracts remain legally valid under the 2010 rules, but DAT no longer exists in Incoterms 2020. Any contract written or renewed after the 2020 update should use DPU and specify “Incoterms 2020.” If a supplier quotes you DAT, it is likely they mean DPU under the current rules, but clarify this in writing.
DPU involves specific UK legal and operational requirements that every shipping coordinator should understand before agreeing these terms.
You are the importer of record. Under DPU, you, the UK buyer, are responsible for UK import customs clearance once goods are unloaded at the named place. This means you need a UK EORI number. Without one, you cannot import goods commercially into the UK. Apply through HMRC, it takes 3–5 working days.
You must file a customs declaration through CDS. The UK Customs Declaration Service (CDS) is the current system for all UK import declarations. Your customs broker must use CDS. Every commercial import into the UK requires an import declaration, regardless of origin.
UK import duty applies. Once goods are cleared through customs, you owe UK import duty at the rate applicable to your goods’ commodity code. You can check rates using the UK Global Tariff. The commodity code affects both the duty rate and whether any trade preferences, such as reduced duty rates under UK trade agreements, apply.
UK import VAT of 20% applies to goods over £135. Any goods imported into the UK with a customs value above £135 attract UK import VAT at 20%. Most commercial import consignments will exceed this threshold. VAT-registered UK businesses can use postponed VAT accounting to defer the payment and account for it on their VAT return, this is standard practice for regular importers.
Post-Brexit customs requirements. Since the UK left the EU customs union, all goods moving between the UK and EU member states require customs formalities, including full customs declarations. There are no exceptions based on value for commercial goods. If you are buying from an EU supplier on DPU terms, both parties need to plan for customs at the UK-EU border.
Port access and documentation. For sea freight arriving at Felixstowe or Southampton, your customs broker needs all shipping documents: commercial invoice, packing list, bill of lading, and any certificates of origin or compliance, before the vessel arrives if possible. Delays in documentation cause port holds, and port storage at a major UK container terminal is expensive.
You handle UK export customs clearance. As a UK seller under DPU, you are responsible for UK export clearance. You need a UK EORI number and must file an export declaration through HMRC’s systems, typically through your freight forwarder or customs agent. Post-Brexit, UK goods moving to EU destinations require full export declarations and, on the EU side, the buyer must handle EU import clearance.
You must arrange unloading at the foreign destination. As the seller, you need to source and fund unloading at the named destination in the buyer’s country. This may require a local logistics partner, local language contracts, and knowledge of local workplace regulations. Price this carefully before accepting DPU terms on export contracts.
Insurance is your responsibility to manage. You carry risk all the way to unloading at the foreign destination. Arrange comprehensive cargo insurance (Clauses A) to cover this exposure. An open cover policy with your freight forwarder or marine insurer is typically the most efficient approach for regular exporters.
Here is a worked example to make DPU concrete.
The scenario: A UK industrial equipment distributor. Northern Crane Parts Ltd, orders 12 large hydraulic assemblies from a manufacturer in Wuhan, China. The contract is agreed on DPU Felixstowe Container Terminal, Incoterms 2020. Each assembly weighs 800kg.
Goods value: £96,000
What happens:
The Chinese manufacturer packs the hydraulic assemblies into crated units, handles Chinese export customs clearance, and contracts a freight forwarder to collect from the factory in Wuhan. The freight forwarder arranges an FCL (full container load) sea freight booking from Shanghai to Felixstowe, paying for all freight costs including terminal handling charges at Shanghai.
During the voyage, the container encounters rough seas in the South China Sea. The crates shift internally, but the assemblies are protected by their heavy-duty packing and arrive intact.
At Felixstowe, the container is discharged. The Chinese manufacturer’s appointed UK agent, a local logistics company, arranges a mobile crane to unload the crates from the container onto the quayside. Until this unloading is complete, risk sits with the Chinese manufacturer. The crane operator accidentally scrapes one crate during lifting, damaging the outer packaging but not the assembly inside. The seller’s insurance. Clauses A cover arranged for the voyage, covers this, and the claim is settled quickly.
Once all 12 assemblies are unloaded and confirmed on the quayside, risk transfers to Northern Crane Parts Ltd.
Northern Crane Parts Ltd’s customs broker files a UK import declaration through CDS. The applicable commodity code attracts 0% UK import duty under the UK Global Tariff (capital equipment). However, UK import VAT applies at 20%: on £96,000 that is £19,200, managed through postponed VAT accounting on Northern Crane Parts Ltd’s VAT return.
Northern Crane Parts Ltd arranges their own haulier to collect the crates from Felixstowe and deliver them to their warehouse in Sheffield. This final leg is their cost. DPU ends at Felixstowe.
The key lesson: Northern Crane Parts Ltd benefited from DPU because the seller arranged specialist crane unloading at Felixstowe, something the buyer would have struggled to organise from Sheffield. The buyer’s only responsibilities were UK import clearance, VAT, and the Sheffield leg. The near-miss scrape during unloading was the seller’s problem to resolve, and their insurance covered it.
DPU stands for Delivered at Place Unloaded. It is one of the 11 Incoterms 2020 rules published by the International Chamber of Commerce (ICC). Under DPU, the seller delivers goods to a named destination and unloads them there. Risk passes to the buyer once unloading is complete.
DPU is the only Incoterm that requires the seller to unload goods at the named destination. Every other Incoterm either leaves unloading to the buyer or transfers risk before the unloading step. This single obligation makes DPU unique, and the most delivery-intensive Incoterm for sellers.
Both DPU and DAP (Delivered at Place) require the seller to bring goods to the named destination and pay for main freight. The difference is unloading. Under DAP, the seller delivers goods and leaves them ready for unloading, the buyer takes over from there. Under DPU, the seller completes the unloading. For heavy or specialist cargo, this is a major distinction.
Yes. DPU replaced DAT (Delivered at Terminal) in Incoterms 2020. DAT required delivery and unloading at a terminal (port, airport, depot). DPU expanded this to any named place, including warehouses and non-terminal locations, and renamed the term to make the unloading obligation explicit.
The buyer pays all import duties and taxes. The DPU price covers freight and unloading at the named destination, nothing more. UK import duty, UK import VAT (currently 20% on goods valued above £135), and customs clearance costs are all the buyer’s responsibility. You need a UK EORI number and must file a customs declaration through CDS.
No. DPU does not require either party to arrange cargo insurance. However, sellers under DPU carry risk for the entire journey until goods are unloaded, so not having insurance is a serious financial exposure. Any sensible seller operating under DPU should arrange comprehensive (Clauses A) cargo insurance. Buyers should confirm what insurance the seller holds before goods ship.
Yes. DPU applies to all transport modes, sea, air, road, and rail. For sea freight arriving at UK ports such as Felixstowe or Southampton, the seller is responsible for unloading at the named terminal. Terminal handling charges and any unloading costs at destination are the seller’s obligation under DPU.
If the seller cannot arrange unloading at the agreed place: for example, due to restricted access, equipment limitations, or regulatory issues, the seller is in breach of their DPU obligations. This is a risk the seller takes on when agreeing DPU terms. Sellers should verify that unloading is physically and legally possible at the named destination before accepting DPU terms on a contract.
Article: dpu-incoterm | ShippingEducation.co.uk | Published June 2026 | Incoterms 2020
Internal links: DAP Incoterm | DDP DDP IncotermCA Incoterm | Incoterms Explained
External: HMRC Customs Valuation. Incoterms
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