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)
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DPU – Delivered Duty Unpaid (named Place)
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Costs
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Risks
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Costs
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Risks
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Warehouse services
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Seller
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Seller
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Warehouse services
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Seller
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Seller
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Marking and labeling
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Seller
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Seller
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Marking and labeling
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Seller
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Seller
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Packing of Goods
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Seller
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Seller
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Packing of Goods
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Seller
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Seller
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Loading at Seller’s premises
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Seller
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Seller
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Loading at Seller’s premises
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Seller
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Seller
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Transportation from Seller’s
premises to Load port
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Seller
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Seller
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Transportation from Seller’s
premises to Load port
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Seller
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Seller
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Unloading at Loading Port
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Seller
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Seller
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Unloading at Loading Port
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Seller
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Seller
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Loading to Vessel/Aircraft
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Seller
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Seller
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Loading to Vessel/Aircraft
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Seller
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Seller
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Export documentation
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Seller
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Seller
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Export documentation
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Seller
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Seller
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Export Customs Clearance
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Seller
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Seller
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Export Customs Clearance
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Seller
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Seller
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Export Taxes and duties (if any)
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Seller
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Seller
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Export Taxes and duties (if any)
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Seller
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Seller
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Handling at Load Port
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Seller
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Seller
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Handling at Load Port
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Seller
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Seller
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Main Carriage
(Ocean Freight/Airfreight)
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Seller
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Buyer
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Main Carriage
(Ocean Freight/Airfreight)
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Seller
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Seller
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Import Customs Clearance
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Buyer
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Buyer
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Import Customs Clearance
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Buyer
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Buyer
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Import Documentation
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Buyer
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Buyer
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Import Documentation
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Buyer
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Buyer
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Import Taxes and Duties (if any)
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Buyer
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Buyer
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Import Taxes and Duties (if any)
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Buyer
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Buyer
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Transportation from named place to final destination
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Buyer
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Buyer
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Transportation from destination
port to named place
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Seller
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Seller
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Unloading at port named
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Buyer
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Buyer
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Unloading at named place
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Seller
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Seller
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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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