DPU (Delivered at Place Unloaded)

Dictionary

The Incoterms (International Commercial Terms) are voluntary clauses established by the International Chamber of Commerce (ICC) to make responsibilities between buyers and sellers in international trade more understandable and uniform. The Incoterms cover all aspects of delivery, risk, transportation and customs clearance and can be included in contracts to avoid misunderstandings. The three most important and best-known Incoterms are EXW (Ex Works), FOB (Free on Board) and CIF (Cost, Insurance and Freight). Each of these clauses sets out different obligations and costs for the respective party from collection to final delivery. The Incoterms are adapted to current trade practices at regular intervals.

Dictionary

CFR (Cost and Freight) is an international trade clause and part of the Incoterms. It is very similar to the CIF clause, but does not include insurance cover. This means that, as with CIF, the seller bears the costs of loading and transportation of the freight to the port of destination, but insurance cover for the risk of loss or damage must be assumed by the buyer from the time of loading. CFR is used exclusively in maritime shipping and is particularly interesting for buyers who organize the insurance cover themselves, while other costs are covered up to the port of destination.

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CIF (Cost, Insurance and Freight) belongs to the group of Incoterms and is an international trade term for delivery. Under this clause, the shipper bears the freight and insurance costs of transportation to the port of destination. Once the goods arrive at the port of destination, all further responsibilities are assumed by the buyer. The CIF clause is intended exclusively for sea transport and facilitates the organization of freight and reduces the buyer's risk. It is particularly suitable for those buyers who wish to leave the main transportation and insurance obligations to the seller.

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DDP (Delivered Duty Paid) is one of the best known international trade clauses as it is the one-stop solution for buyers. This clause states that the seller assumes all costs and risks of the complete delivery and logistics up to the delivery to the final destination. This includes any customs duties and taxes as well as insurance and transportation. The buyer therefore simply has to take delivery of the goods, and thus has the most convenient variant of the trade term. This clause is particularly often used when the buyer has no experience of the legal and logistical requirements of international transportation.

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The international trade term CIP (Carriage and Insurance Paid to) is part of the Incoterms and describes the case where the seller assumes the costs and minimum insurance of the freight up to the destination, but not the risk of loss or damage once it has been handed over to the first carrier. Overall, CIP is very similar to CPT, with the difference of additional insurance coverage. CIP can be applied to all types of transportation.