DPU and DDP are two important conditions mentioned in Incoterm 2020, which are effective from January 1, 2020. There are many differences between the two conditions.
- DPU condition (Delivered At Place Unload)
- DDP condition (Delivered Duty Paid)
1. Regarding the writing on the contract
How to write DPU condition: DPU [Designated place of delivery] Incoterms 2020
How to write DDP condition: DDP [Designated place of delivery] Incoterms 2020
2. Regarding the seller’s responsibilities
2.1. DPU condition
- Produce and package goods according to schedule,
- Export customs clearance
- Sign a transport contract to the place where the buyer designates to receive the goods (international transport contract, domestic transport contract in the importing country)
- Support the provision of documents for the buyer to pass through import procedures
- Notify the buyer of issues related to receiving goods.
- Unload goods from the means of transport at the agreed point in the contract.
- Obligations of the buyer
2.2. DDP condition
- The seller must deliver the goods by placing the imported goods under the buyer’s arrangement on the means of transport to the designated place of delivery and ready to be unloaded.
- Responsible for returning the imported goods to the place of destination designated by the buyer.
- The seller is not obliged to the buyer to sign an insurance contract.
3. Regarding the buyer’s responsibilities
3.1. DPU condition
- Receive goods at the seller’s delivery address, at which point the goods have been unloaded at the receiving address.
- Responsible for transportation from the receiving location to the warehouse if any.
- Pay costs to relevant transport service providers and suppliers.
3.2. DDP condition
Receive goods at the designated place and pay the seller. The goods have been cleared for import at this point and the buyer does not have to do anything.
4. About the transfer of risk location
4.1. DPU condition
The seller bears all risks of loss of goods until they are safely delivered on the ground at the place where the buyer designates to receive the goods. Therefore, the seller must ensure the safety of the goods to the place where the buyer receives the goods.
4.2. DDP condition
The risk is transferred at the time the seller delivers the goods to the buyer at the place where the buyer receives the goods. After receiving the goods from the seller, the buyer will bear all risks related to the goods.