Author name: Sujith

DPU (Delivered at Place Unloaded) DPU (Delivered at Place Unloaded) is one of the 11 Incoterms defined in the Incoterms 2020, published by the International Chamber of Commerce (ICC). It is an Incoterm that is similar to DAP, but it also includes the obligation of the seller to unload the goods at the place of delivery. Under DPU, the seller is responsible for delivering the goods at a named place at the destination, obtaining any necessary export licenses or permits, and unloading the goods at the place of delivery. The buyer is responsible for arranging and paying for the transportation of the goods from the place of delivery to the final destination, obtaining any necessary import licenses or permits, and paying any applicable duties or taxes. The risk of loss or damage to the goods passes from the seller to the buyer when the goods are delivered at the named place. Responsibilities and Obligations of Buyer and Seller The seller’s responsibilities under DPU include: Delivering the goods at a named place at the destination Obtaining any necessary export licenses or permits Unloading the goods at the place of delivery The buyer’s responsibilities under DPU include: Arranging and paying for the transportation of the goods from the place of delivery to the final destination Obtaining any necessary import licenses or permits Paying any applicable duties or taxes Bearing the risk of loss or damage to the goods once they are delivered at the named place Advantages of using DPU include: The seller is responsible for delivering the goods at a named place at the destination, which eliminates the need for the buyer to arrange for the goods to be transported to the final destination. The buyer can inspect the goods at the place of delivery before taking possession, allowing for any potential issues to be addressed before the goods are moved to the final destination. The seller is also responsible for unloading the goods, which can be beneficial for the buyer if they do not have the resources or capabilities to unload the goods themselves. Disadvantages of using DPU include: The buyer is responsible for arranging and paying for the transportation of the goods from the place of delivery to the final destination, which can be a costly and complex process. The buyer is also responsible for obtaining any necessary import licenses or permits and paying any applicable duties or taxes The buyer bears the risk of loss or damage to the goods once they are delivered at the named place Examples of when to use DPU include: When the buyer is located near the named place of delivery and has the capability to arrange for the transportation of the goods from the place of delivery to the final destination When the buyer wants to inspect the goods at the place of delivery before taking possession When the goods are bulky or heavy and require special handling or equipment to unload. When the goods are perishable or require special storage conditions and the named place of delivery has the necessary facilities to meet those needs. It’s important to note that DPU is similar to DAP, but with the additional obligation of the seller to unload the goods at the place of delivery. It’s important for both buyer and seller to carefully consider their capabilities and resources before choosing to use DPU in a trade agreement, and to consult with legal and logistics experts to ensure compliance with laws and regulations. Additionally, it’s important to agree and specify the exact place of delivery, and any other relevant details in the sales contract. The buyer should also be aware that DPU does not include loading of the goods, so the buyer should consider this before using this Incoterm. It is also important for the buyer to check that the place of delivery is accessible for the type of transport used for the goods.

DDP (Delivered Duty Paid) DDP (Delivered Duty Paid) is one of the 11 Incoterms defined in the Incoterms 2020, published by the International Chamber of Commerce (ICC). It is an Incoterm that is commonly used in international trade when the buyer and seller are located in different countries and the seller is responsible for arranging and paying for the transportation of the goods to a named place at the destination, as well as handling all customs formalities, taxes and duties. Under DDP, the seller is responsible for delivering the goods at a named place at the destination, obtaining any necessary export licenses or permits, unloading the goods at the place of delivery, and paying for any customs clearance and import duties. The buyer is only responsible for arranging and paying for the transportation of the goods from the place of delivery to the final destination. The risk of loss or damage to the goods passes from the seller to the buyer when the goods are delivered at the named place. Responsibilities and Obligations of Buyer and Seller The seller’s responsibilities under DDP include: Delivering the goods at a named place at the destination Obtaining any necessary export licenses or permits Unloading the goods at the place of delivery Arranging and paying for any customs clearance and import duties The buyer’s responsibilities under DDP include: Arranging and paying for the transportation of the goods from the place of delivery to the final destination Bearing the risk of loss or damage to the goods once they are delivered at the named place Advantages of using DDP include: The buyer has more control over the transportation arrangements as they can choose the carrier and mode of transportation The buyer can arrange for the goods to be shipped directly to the final destination, avoiding the need for transshipment The seller is not responsible for obtaining export licenses or permits Disadvantages of using DDP include: The buyer bears all the risks and costs associated with the transportation of the goods The buyer is also responsible for obtaining any necessary licenses or permits and paying any applicable duties or taxes Examples of when to use DDP include: When the buyer is located in a country with complex or restrictive import regulations and the seller has the experience and resources to navigate those regulations When the buyer does not have the resources or capabilities to handle customs clearance themselves When the buyer wants to avoid any import taxes or duties When the goods are perishable or require special storage conditions and the named place of delivery has the necessary facilities to meet those needs. It’s important to note that DDP is the most advanced Incoterm among all the Incoterms defined in the Incoterms 2020 and it shifts most of the responsibilities and risks from the buyer to the seller. It’s important for both buyer and seller to carefully consider their capabilities and resources before choosing to use DDP in a trade agreement, and to consult with legal and logistics experts to ensure compliance with laws and regulations. Additionally, it’s important to agree and specify the exact place of delivery, and any other relevant details in the sales contract. The buyer should also be aware that DDP does not include loading of the goods, so the buyer should consider this before using this Incoterm. It is also important for the buyer to check that the place of delivery is accessible for the type of transport used for the goods and that the seller has the necessary experience and resources to handle customs clearance and import duties.

DAP (Delivered at Place) DAP (Delivered at Place) is one of the 11 Incoterms defined in the Incoterms 2020, published by the International Chamber of Commerce (ICC). It is an Incoterm that is commonly used in international trade when the buyer and seller are located in different countries and the seller is responsible for arranging and paying for the transportation of the goods to a named place at the destination. Under DAP, the seller is responsible for delivering the goods at a named place at the destination, obtaining any necessary export licenses or permits, and unloading the goods at the place of delivery. The buyer is responsible for arranging and paying for the transportation of the goods from the place of delivery to the final destination, obtaining any necessary import licenses or permits, and paying any applicable duties or taxes. The risk of loss or damage to the goods passes from the seller to the buyer when the goods are delivered at the named place. Responsibilities and Obligations of Buyer and Seller The seller’s responsibilities under DAP include: Delivering the goods at a named place at the destination Obtaining any necessary export licenses or permits Unloading the goods at the place of delivery The buyer’s responsibilities under DAP include: Arranging and paying for the transportation of the goods from the place of delivery to the final destination Obtaining any necessary import licenses or permits Paying any applicable duties or taxes Bearing the risk of loss or damage to the goods once they are delivered at the named place Advantages of using DAP include: The seller is responsible for delivering the goods at a named place at the destination, which eliminates the need for the buyer to arrange for the goods to be transported to the final destination. The buyer can inspect the goods at the place of delivery before taking possession, allowing for any potential issues to be addressed before the goods are moved to the final destination. The seller is also responsible for unloading the goods, which can be beneficial for the buyer if they do not have the resources or capabilities to unload the goods themselves. Disadvantages of using DAP include: The buyer is responsible for arranging and paying for the transportation of the goods from the place of delivery to the final destination, which can be a costly and complex process. The buyer is also responsible for obtaining any necessary import licenses or permits and paying any applicable duties or taxes The buyer bears the risk of loss or damage to the goods once they are delivered at the named place Examples of when to use DAP include: When the buyer is located near the named place of delivery and has the capability to arrange for the transportation of the goods from the place of delivery to the final destination When the buyer wants to inspect the goods at the place of delivery before taking possession When the goods are bulky or heavy and require special handling or equipment to unload. When the goods are perishable or require special storage conditions and the named place of delivery has the necessary facilities to meet those needs. It’s important to note that DAP is a more advanced Incoterm than EXW, FCA, FAS, FOB, CPT, CIP, and DAT and it shifts some of the responsibilities and risks from the buyer to the seller. It’s important for both buyer and seller to carefully consider their capabilities and resources before choosing to use DAP in a trade agreement, and to consult with legal and logistics experts to ensure compliance with laws and regulations. Additionally, it’s important to agree and specify the exact place of delivery, and any other relevant details in the sales contract. The buyer should also be aware that DAP does not include loading of the goods, so the buyer should consider this before using this Incoterm. It is also important for the buyer to check that the place of delivery is accessible for the type of transport used for the goods.

DAT (Delivered at Terminal) DAT (Delivered at Terminal) is one of the 11 Incoterms defined in the Incoterms 2020, published by the International Chamber of Commerce (ICC). It is an Incoterm that is commonly used in international trade when the buyer and seller are located in different countries and the seller is responsible for arranging and paying for the transportation of the goods to a named terminal at the destination. Under DAT, the seller is responsible for delivering the goods at a named terminal at the destination and obtaining any necessary export licenses or permits. The buyer is responsible for arranging and paying for the transportation of the goods from the terminal to the final destination, obtaining any necessary import licenses or permits and paying any applicable duties or taxes. The risk of loss or damage to the goods passes from the seller to the buyer when the goods are delivered at the named terminal. Responsibilities and Obligations of Buyer and Seller The seller’s responsibilities under DAT include: Delivering the goods at a named terminal at the destination Obtaining any necessary export licenses or permits The buyer’s responsibilities under DAT include: Arranging and paying for the transportation of the goods from the terminal to the final destination Obtaining any necessary import licenses or permits Paying any applicable duties or taxes Bearing the risk of loss or damage to the goods once they are delivered at the named terminal Advantages of using DAT include: The seller is responsible for delivering the goods at a named terminal at the destination, which eliminates the need for the buyer to arrange for the goods to be transported to the final destination. The buyer can inspect the goods at the terminal before taking possession, allowing for any potential issues to be addressed before the goods are moved to the final destination. Disadvantages of using DAT include: The buyer is responsible for arranging and paying for the transportation of the goods from the terminal to the final destination, which can be a costly and complex process. The buyer is also responsible for obtaining any necessary import licenses or permits and paying any applicable duties or taxes The buyer bears the risk of loss or damage to the goods once they are delivered at the named terminal Examples of when to use DAT include: When the buyer is located near the named terminal and has the capability to arrange for the transportation of the goods from the terminal to the final destination When the buyer wants to inspect the goods at the terminal before taking possession When the goods are bulky or heavy and require special handling or equipment to load or unload When the goods are perishable or require special storage conditions and the terminal has the necessary facilities to meet those needs. It’s important to note that DAT is a more advanced Incoterm than EXW, FCA, FAS, FOB, CPT, and CIP and it shifts some of the responsibilities and risks from the buyer to the seller. It’s important for both buyer and seller to carefully consider their capabilities and resources before choosing to use DAT in a trade agreement, and to consult with legal and logistics experts to ensure compliance with laws and regulations. Additionally, it’s important to agree and specify the exact place of delivery, the name of the terminal, and any other relevant details in the sales contract. Also, the buyer should be aware that DAT does not include loading and unloading of goods, so the buyer should consider that before using this Incoterm.

CIP (Carriage and Insurance Paid To) is one of the 11 Incoterms defined in the Incoterms 2020, published by the International Chamber of Commerce (ICC). It is an Incoterm that is commonly used in international trade when the buyer and seller are located in different countries and the seller is responsible for arranging and paying for the transportation of the goods to a named destination, as well as obtaining insurance for the goods. Under CIP, the seller is responsible for arranging and paying for the transportation of the goods to a named destination, obtaining any necessary export licenses or permits, and obtaining insurance for the goods against the usual transport risks from the place of origin to the named destination. The buyer is responsible for obtaining any necessary import licenses or permits and for paying any applicable duties or taxes. The risk of loss or damage to the goods passes from the seller to the buyer when the goods are handed over to the first carrier. Responsibilities and Obligations of Buyer and Seller The seller’s responsibilities under CPT include: Arranging and paying for the transportation of the goods to a named destination Obtaining any necessary export licenses or permits The buyer’s responsibilities under CPT include: Obtaining any necessary import licenses or permits Paying any applicable duties or taxes Bearing the risk of loss or damage to the goods once they are handed over to the first carrier Advantages of using CIP include: The seller is responsible for arranging and paying for the transportation of the goods to a named destination, which can be beneficial for the buyer if they do not have the resources or capabilities to arrange transportation themselves. The buyer can arrange for the goods to be shipped directly to the final destination, avoiding the need for transshipment The seller is also responsible for obtaining insurance for the goods which can provide additional protection for the buyer. Disadvantages of using CIP include: The buyer is still responsible for obtaining any necessary import licenses or permits and paying any applicable duties or taxes The buyer bears the risk of loss or damage to the goods once they are handed over to the first carrier Examples of when to use CIP include: When the buyer is located in a country with a well-established customs clearance process and minimal import restrictions When the seller has established relationships with carriers and can obtain favorable transportation rates When the buyer does not have the resources or capabilities to arrange transportation themselves. When the buyer wants added insurance protection for the goods in transit. It’s important to note that CIP is a more advanced Incoterm than EXW, FCA, FAS, FOB, and CPT and it shifts some of the responsibilities and risks from the buyer to the seller. It’s important for both buyer and seller to carefully consider their capabilities and resources before choosing to use CIP in a trade agreement, and to consult with legal and logistics experts to ensure compliance with laws and regulations. Additionally, it’s important to agree and specify the exact place of destination, the type of insurance coverage, and any other relevant details in the sales contract. It’s also important to check that the insurance coverage provided by the seller is adequate and meets the buyer’s requirements.

CPT (Carriage Paid To) is one of the 11 Incoterms defined in the Incoterms 2020, published by the International Chamber of Commerce (ICC). It is an Incoterm that is commonly used in international trade when the buyer and seller are located in different countries and the seller is responsible for arranging and paying for the transportation of the goods to a named destination. Under CPT, the seller is responsible for arranging and paying for the transportation of the goods to a named destination, and for obtaining any necessary export licenses or permits. The buyer is responsible for obtaining any necessary import licenses or permits and for paying any applicable duties or taxes. The risk of loss or damage to the goods passes from the seller to the buyer when the goods are handed over to the first carrier. Responsibilities and Obligations of Buyer and Seller The seller’s responsibilities under CPT include: Arranging and paying for the transportation of the goods to a named destination Obtaining any necessary export licenses or permits The buyer’s responsibilities under CPT include: Obtaining any necessary import licenses or permits Paying any applicable duties or taxes Bearing the risk of loss or damage to the goods once they are handed over to the first carrier Advantages of using CPT include: The seller is responsible for arranging and paying for the transportation of the goods to a named destination, which can be beneficial for the buyer if they do not have the resources or capabilities to arrange transportation themselves. The buyer can arrange for the goods to be shipped directly to the final destination, avoiding the need for transshipment Disadvantages of using CPT include: The buyer is still responsible for obtaining any necessary import licenses or permits and paying any applicable duties or taxes The buyer bears the risk of loss or damage to the goods once they are handed over to the first carrier Examples of when to use CPT include: When the buyer is located in a country with a well-established customs clearance process and minimal import restrictions When the seller has established relationships with carriers and can obtain favorable transportation rates When the buyer does not have the resources or capabilities to arrange transportation themselves. It’s important to note that CPT is a more advanced Incoterm than EXW, FCA, FAS, and FOB and it shifts some of the responsibilities and risks from the buyer to the seller. It’s important for both buyer and seller to carefully consider their capabilities and resources before choosing to use CPT in a trade agreement, and to consult with legal and logistics experts to ensure compliance with laws and regulations. Additionally, it’s important to agree and specify the exact place of destination and any other relevant details in the sales contract.