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Clarification on Incoterms

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Clarification on Incoterms

  • This topic has 3 replies, 2 voices, and was last updated 1 year ago by MikeLittle.
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  • May 27, 2024 at 1:39 pm #706119
    Anonymous
    Inactive
    • Topics: 10
    • Replies: 6
    • ☆

    Hi. Can I get some additional clarification on these Incoterms. They look identical to me.

    DAP – Delivered at Place: The risk remains with the Seller until delivery of the goods to the Buyer by putting them at the buyer’s disposal at a place specified in the contract. Seller is responsible for getting them transported to that place, and bears all the associated costs (other than any import duty payable by the buyer)

    DPU – Delivered at Place Unloaded: The seller delivers when the goods, once unloaded are placed at the disposal of the buyer at a named place of destination. The seller bears all risks involved in bringing the goods to and unloading them at the named place of destination.

    May 27, 2024 at 3:54 pm #706132
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    The difference is in the ‘title’

    What’s the difference between ‘delivered at place’ and ‘delivered at place unloaded’?

    The answer is …. ‘unloaded’!

    In DAP, seller accepts responsibility until the goods arrive at, say, Mumbai

    In DPU, the seller undertakes to unload the goods in Mumbai and continues to bear the risks associated with unloading those goods at which point the buyer assumes responsibility

    OK?

    May 27, 2024 at 4:08 pm #706133
    Anonymous
    Inactive
    • Topics: 10
    • Replies: 6
    • ☆

    Yes. Thanks again.

    May 27, 2024 at 6:32 pm #706139
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    As always, you’re welcome

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