Use the term to frame the sale, not replace the quote
Incoterms allocate selected delivery tasks, costs and risk between seller and buyer under the sales contract. They do not by themselves set a forwarder's rate validity, carrier acceptance, storage rules, insurance cover, broker appointment or every origin and destination charge.
Write the named place precisely and make sure the purchase contract, shipping instructions and freight proposal refer to the same delivery point. A country or city alone may be too broad to determine the final handoff.
Compare DAP and DPU at the delivery point
The unloading distinction is central: under DAP the goods are delivered ready for unloading and the buyer normally performs or arranges unloading; under DPU the seller delivers after unloading. In both cases, the buyer normally handles import clearance and import duties or taxes, subject to the applicable contract and law.
| Question | DAP | DPU |
|---|---|---|
| Condition at named place | Goods placed at the buyer's disposal, ready for unloading | Goods unloaded and placed at the buyer's disposal |
| Unloading | Normally the buyer's responsibility | Normally the seller's responsibility |
| Import clearance and import duties/taxes | Normally the buyer's responsibility | Normally the buyer's responsibility |
| Shipment-specific check | Named place, access and unloading arrangement | Named place, unloading method and provider capability |
Make the freight proposal state its own boundary
Ask the proposal to identify pickup, origin handling, export coordination, main transport, destination handling, customs coordination, delivery, unloading, appointments and exceptional costs as included, excluded, estimated or payable when incurred.
- Exact pickup and named delivery place
- Who arranges import clearance and acts as importer
- Who provides labour or equipment for unloading
- Which duties, taxes, inspections and storage events are excluded
- Rate validity, cargo assumptions and changed-condition process
Review before anyone relies on the term
Product restrictions, importer requirements, tax treatment and local delivery rules can change the workable structure. Before booking or making a customer-facing commitment, the buyer, seller and their qualified customs, tax or legal advisers should confirm the selected term and named place for the actual transaction.