Compare the delivery terms CPT and DPU

Difference between DPU and CPT under Inco terms 2020

As you know, DPU means Delivered at Place Unloaded at a named place agreed between buyer and seller when agreeing mutually as contract of carriage under Sale agreement. 

CPT means Carriage Paid To  a named place where seller and buyer agrees mutually under contract of carriage which is a part of Sale contract.

What is difference between both CPT and DPU?

Under CPT delivery rules, the seller transfers the cost of movement of goods to the buyer at the named location in Buyer’s country, in export import business.  But the risk under CPT transfers from seller to buyer immediately up on loading the goods at first carrier.  So the risk and cost equally do not move from seller to buyer under CPT terms, where costs and risks equally move from seller to buyer under DPU terms.

Under DPU delivery rules, unloading at named place at buyer’s premises is the responsibility of seller and he is liable for any damage occurred when unloading the goods.  But under CPT terms, the seller does not have such risks and the risk passes from him to the buyer, immediately up on the goods loaded to the  carrier contracted by the seller, although he pays the cost up to the named location contracted.

CPT delivery rules under Inco terms 2020 is ideal to use for movement of goods  from one warehouse to another,  movement of Less Container Load cargo (LCL),  movement of break bulk cargo etc. whereas DPU delivery rules are preferably used for movement of cargo from sellers place to buyer’s premises  either by Sea or by air. CPT modes are used widely used for the shipments by air also.  

CPT – Carriage Paid To (named Place)

 

DPU – Delivered Duty Unpaid
             (named Place)

 

Costs

Risks

 

 

Costs

Risks

Warehouse services

Seller

Seller

 

Warehouse services

Seller

Seller

Marking and labeling

Seller

Seller

 

Marking and labeling

Seller

Seller

Packing of Goods

Seller

Seller                                   

 

Packing of Goods

Seller

Seller                                   

Loading at Seller’s premises

Seller

Seller

 

Loading at Seller’s premises

Seller

Seller

Transportation from Seller’s

 premises to Load port

Seller

Seller

 

Transportation from Seller’s

premises to Load port

Seller

Seller

Unloading at Loading Port

Seller

Seller

 

Unloading at Loading Port

Seller

Seller

Loading to Vessel/Aircraft

Seller

Seller

 

Loading to Vessel/Aircraft

Seller

Seller

Export documentation

Seller

Seller

 

Export documentation

Seller

Seller

Export Customs Clearance

Seller

Seller

 

Export Customs Clearance

Seller

Seller

Export Taxes and duties (if any)

Seller

Seller

 

Export Taxes and duties (if any)

Seller

Seller

Handling  at Load Port

Seller

Seller

 

Handling  at Load Port

Seller

Seller

Main Carriage

(Ocean Freight/Airfreight)

Seller

Buyer

 

Main Carriage

 (Ocean Freight/Airfreight)

Seller

Seller

Import Customs Clearance

Buyer

Buyer

 

Import Customs Clearance

Buyer

Buyer

Import Documentation

Buyer

Buyer

 

Import Documentation

Buyer

Buyer

Import Taxes and Duties (if any)

Buyer

Buyer

 

Import Taxes and Duties (if any)

Buyer

Buyer

Transportation from named place to final destination

Buyer

Buyer

 

Transportation from destination

port to named place

Seller

Seller

Unloading at port named

Buyer

Buyer

 

Unloading at named place

Seller

Seller

You may click below to read more information about CPT and DPU, where the information explained easily to understand.

 

DPU  Delivered at Place Unloaded

CPT  Carriage Paid To

 

The above information is about the difference between DPU and CPT.  You may add more information based on your experience in handling  CPT and DPU delivery terms for movement of goods under INCOTERMS 2020 published by International Chamber of Commerce (ICC)

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