How to Write a DPU Clause in Your Sales Contract (Template Included)

The question that decides a DPU dispute is rarely who paid the freight. It is who was standing at the unloading point, with the right equipment, when the truck arrived, and whether the contract said so in advance. Under DPU, that answer is the seller, and the clause has to make the unloading point as precise as the price.

Use this article as drafting help only, and have a lawyer check the signed clause before the goods move.

What the document is for

The DPU clause is the delivery section inside a sales contract. DPU means Delivered at Place Unloaded. Under Incoterms 2020, the seller delivers the goods, and risk passes to the buyer, when the goods have been unloaded from the arriving means of transport and placed at the buyer's disposal at the named place of destination.¹ DPU replaced DAT, Delivered at Terminal, in Incoterms 2020, because the named place need not be a terminal: it can be any agreed place, such as a warehouse, a distribution center, or a site.^{1 2}

DPU works for any mode, including multimodal shipments.¹ The seller arranges and pays for carriage to the named place, completes export and transit formalities, and bears the cost and risk of unloading there.^{1 3}

The buyer takes delivery once the seller has given notice enabling collection at the named place and point, then completes import formalities and arranges onward carriage beyond the named place.¹ The buyer pays import duties and taxes.³

DPU imposes no insurance obligation on either party.³ By contrast, under CIP the seller must buy insurance for the buyer, and under CIF the seller must buy minimum cover for the buyer.

The clause does not set price, payment terms, or ownership. It fixes one sequence: carriage, seller unloading, delivery on unloading, and buyer import and onward carriage.

Required fields explained

Fill in every field before signing.

• Named place of destination and unloading point, in full. Write "DPU (named place of destination) Incoterms 2020". Name the site with its full address, and the point within it where unloading will happen, such as a named bay or dock. Delivery and risk transfer happen at that point, so a city name alone is not enough.^{1 2}

• Incoterms version. Write "Incoterms 2020" in full, beside the rule and the named place. Without the edition, the governing rules are not fixed.

• Delivery event and risk transfer. State in one sentence that delivery occurs, and risk passes, only when the goods are unloaded from the arriving vehicle and placed at the buyer's disposal at the named place.¹ Risk during unloading stays with the seller.³

• Unloading method, equipment, and site access. State who provides the forklift, crane, labor, and dock space, and what access the buyer must give. The ICC Academy warns the seller to assess whether safe unloading can be ensured at the agreed place, and to choose DAP instead if it cannot.¹

• Main carriage scope. State that the seller will arrange and pay for carriage to the named place, and what it covers and excludes, including destination handling before unloading.³

• Clearance split. State that the seller completes export and transit clearance, and the buyer manages and pays import clearance, duty, and taxes.^{1 3}

• Insurance position, stated expressly. State that DPU imposes no insurance obligation on either party, then state any agreed cover: who buys it, for whose benefit, for what period, and who pays. Seller cover should run at least to unloading; buyer cover should run from delivery.^{3 2}

• Arrival and unloading notice, and proof of delivery. State how and when the seller will notify the buyer before arrival, so the site can be ready, and what document will prove unloading and delivery.^{1 3}

• Delivery window and delay. State the arrival date or window, the unloading time slot, and what happens if the site is not ready or import clearance is delayed. Risk stays with the seller until unloading, so a missed slot needs an agreed consequence.

• Destination charges and onward carriage. State who pays charges at the named place outside the seller's carriage and unloading arrangement, and that onward carriage beyond it is for the buyer unless agreed otherwise.¹

• Goods covered. Name the goods, quantity, marks, and order number, so the unloading notice and the proof of delivery match the contract.

Template (table)

Copy the table and fill in every row.

If any row is blank, the clause is not finished.

Filled example

All names, figures, and dates below are examples only.

Example clause. Delivery is DPU Example Home BV Distribution Center, Bay 4, 42 Waalkade, Rotterdam, Netherlands, Incoterms 2020. Example Jute Goods Ltd will arrange and pay for carriage of 250 cartons of jute rugs, order number EX-8817, from Chattogram to that distribution center, will unload the cartons at Bay 4 with its contracted forklift team, and will notify the buyer two working days before arrival. Delivery occurs, and risk passes to the buyer, when the cartons are unloaded at Bay 4 and placed at the buyer's disposal, on or between 8 and 10 December. The buyer will manage and pay for import clearance, duty, and taxes, and will arrange onward carriage beyond the Rotterdam center. No cover is bought for the buyer under this clause; the seller will arrange its own cover to unloading, and the buyer will arrange cover from delivery. The example contract price is USD 38,900. Charges at the center outside the seller's carriage and unloading arrangement are for the buyer.

The example turns on Bay 4, not Rotterdam: "DPU Rotterdam" alone could mean any terminal, yard, or warehouse in the city, and would not tell the forklift team where to go.

Common errors

Naming only a city. Delivery and risk transfer happen at the named place and point, so the unloading point must be identified precisely.¹

Writing delivery as ready for unloading. That describes DAP, not DPU. Under DPU, delivery is only after unloading and placement at the buyer's disposal.¹

Writing delivery on handover to the carrier. That describes CPT or CIP, not DPU. Under DPU, risk stays with the seller through carriage and unloading.²

Assuming the buyer unloads. Under DPU, unloading is the seller's job, at the seller's cost and risk.³ If the buyer is to unload, discuss DAP, not DPU.

Assuming the seller clears import. Under DPU, the buyer completes import formalities and pays duty and taxes.¹ If the seller is to clear import and pay duty, discuss DDP, not DPU.

Leaving insurance silent. DPU imposes no insurance obligation, so silence invites each party to assume the other is covered.³ State the position, even when no cover will be bought for the buyer.

Omitting the Incoterms version. Without "Incoterms 2020", the governing edition is not fixed. Write it beside the rule and the named place wherever the term repeats.

Omitting the unloading plan. Without named equipment, access, and a time slot, the truck can arrive and still not be unloaded. Safe unloading is a condition for choosing DPU at all.¹

Treating a DPU price as duty-paid. A DPU price includes carriage and unloading, not import duty, clearance, or onward carriage.³

FAQs

Who issues this document?

No authority issues a DPU clause. It is a delivery section the buyer and seller draft and sign into their sales contract, using Incoterms 2020 DPU and the named place and unloading point in full.

Which fields are mandatory?

The delivery term, edition, named place and unloading point in full, delivery and risk sentence, unloading method and equipment, carriage scope, clearance split, insurance position, arrival notice, and goods and order identification are all needed.

Can it be digital?

Yes. The clause is contract text, so it can sit in a signed contract in paper or digital form as the parties agree. Keep the clause, unloading notice, and proof of delivery together in the contract record.

What errors cause delays?

A vague named place, a missing unloading point or equipment plan, a site that is not ready at arrival, silent insurance, and a missing arrival notice cause the most delays.

Next steps on Exportain

Read the Incoterms guide for shipments from Bangladesh to compare DPU with the other ten rules, and the CIF guide to weigh a sea-only insured term against an any-mode unloaded-delivery term. When ready to buy, read how to buy from Bangladesh, then Post a free RFQ on Exportain stating the quantity, named unloading place, and Incoterm.