Compare CIF and DPU from Inco terms 2020 point of view


DPU and CIF under Inco terms 2020

Delivered at Place Unloaded to a named place DPU and Cost, Insurance and Freight  at named place CIF are the two of eleven delivery rules for movement of goods under Incoterms 2020.

Let us discuss here the difference between both DPU and CIF delivery terms under Inco terms

First of all, CIF rule is meant for movement of goods on waterways, as it is known as Marine restricted mode of transport whereas DPU rule may be used for movement of goods by Air, Sea or Land.

Secondly, the named place under DPU is in buyer’s country whereas under CIF, the named destination may or may not be at buyer’s country.

Under DPU rules of delivery under Inco terms, the seller is responsible to arrange on carriage wherein CIF terms of delivery, the on carriage is under the risk and cost of Buyer.

Compared to CIF terms, high risks are undertaken by the seller under DPU terms which includes the responsibility of costs and risks to unload the goods at buyer’s named place.  However, under CIF, the seller’s risk transfer to buyer when the goods are loaded to the Carrier, although the seller bears the costs to named location.

Under DPU, the risks and costs moves equally till the end of movement of goods at buyer’s place where under CIF delivery rules; the seller discharges his risks when loading goods to the carrier but costs up to the named destination contracted mutually between buyer and seller.

Another difference between CIF and DPU is that insurance on movement of goods are under the responsibility of seller under CIF delivery rules.  But under DPU delivery  rules, neither buyer nor seller is responsible to  arrange insurance as per  incoterms 2020 rules published by ICC, thereby either of the parties may arrange as per their mutual understanding under  their contract of carriage.

The unloading of goods at destination named place is under the risk and cost of seller under DPU delivery rules. But the buyer holds the responsibility to unload goods at named place under CFR.

You may read  about CFR and DPU separately in this website, you may click below to read:


CIF  Cost Insurance and Freight


DPU  Delivered at Place Unloaded


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