DPU and FCA, a comparative study based on Inco terms 2020
Delivered at Place Unloaded (DPU) Vs. Free CArrier
How to differentiate DPU with FCA under delivery rules of incoterms 2020?
As you know, DPU means Delivered at a named place goods unloaded and FCA means Free carriage of cost and risk to a named location.
As name indicates, under DPU, the exporter delivers goods to Importer’s named place by undertaking pre carriage, main carriage, export customs clearance, on carriage and unloading of goods. Where as under FCA, the exporters transfers his risks and costs of movement of goods to importer immediately upon goods are gone onboard the main carrier, either on the vessel, aircraft or other means.
Under FCA terms, the seller’s risks and costs transfers to buyer at seller’s country. But the costs and risks transfers from seller to buyer in buyer’s country under DPU delivery rules as per Incoterms 2020
Under DPU, main carriage is undertaken by Importer, but under FCA the said main carriage is under the risk of Buyer.
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DPU – Delivered Duty Unpaid
(named Place)
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FCA –Free Carriage (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 Load 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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Seller
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Main Carriage
(Ocean Freight/Airfreight)
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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 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 destination
port to named place
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Seller
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Seller
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Transportation to final destination
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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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Unloading at final destination
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Buyer
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Buyer
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*FCA diagram shown above is meant for movement of goods for exports, wherein named place is Port of loading. FCA delivery term means loading goods to the means of transport provided by the buyer or placing them at the disposal of the buyer’s carrier. Read the separate post about FCA in this website for better understanding.
The meaning and complete explanation about DPU and FCA are explained separately in this website and you may click below to read in detail:
FCA Free Carrier
FCA Free Carrier
Hope the above information about FCA and DPU helped you to understand the difference between DPU and FCA. Would you like to add more information about this subject on FCA and DPU, share below your thoughts and experience in handling FCA and DPU.
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