Pricing of export products on DPU (Delivered At Place Unloaded) basis via Air Freight

How to determine the appropriate price for your product based on DPU (Delivered At Place Unloaded) basis via Air Freight

Shipping Containers
DPU (Delivered At Place Unloaded) basis via Air Freight

new search

Pricing in exports should be done by considering the costs which are depending upon the delivery terms in your contract with your customer.

For the DPU (Delivered At Place Unloaded) basis via Air Freight, the following additional costs should be considered in the pricing of your export product.

  • Packing of Goods: (By Seller)
    Costs for securely packaging the products to ensure their protection during transit are the seller's responsibility. However, packaging should comply with the requirements specified in the contract. For instance, packaging for sea freight differs from that needed for air freight. Additionally, if wooden packaging or crates are used, the materials must be fumigated or heat treated according to ISPM-15 standards, along with a valid certificate enclosed alongwith shipping documents. This is to prevent the international transport of diseases and insects that could negatively impact the plants and wildlife of the destination country.
    There are international standards for multi-level packaging based on the type of goods, whether they are consumer goods, corrosion-prone capital equipment, or dangerous goods.
    For example, as a consumer goods supplier, it's not enough to have robust export packing for the outer layer. The intermediate packaging used for boxes traveling from distributors to retail stores, as well as the inner packaging of the actual product, must also comply with the labeling and packaging requirements of the destination country. This includes considerations like child-resistant packaging, language of the labels, statutory warnings, and other regulations.
  • Loading of the Goods in the vehicle: (By Seller)
    Cost of loading the goods onto the vehicle at the factory or source warehouse.
  • Customs Clearance: (By Seller)
    Fees for completing the necessary documentation and procedures to comply with export regulations and obtain clearance from customs authorities.
    • Minimum 3 sets of Commerical Invoice, Packing Lists, Certificate of Origin (endorsed by local Chamber of Commerce) etc are required by most countries, and that lists will vary depending upon your customer's country.
    • A forwarding agent can help you in getting the container sealing, shipping bill and custom clearance done.
  • Inland Transit towards the destination in India: (By Seller)
    Expenses for transporting goods from the factory, warehouse to the destination in India.
  • Inland Transport to the port in India: (By Seller)
    Expenses for transporting goods from the factory or warehouse to the departure port in India.
  • Indian port handling charges: (By Seller)
    Costs for loading and unloading goods at the port, including terminal fees and stevedoring.
  • Freight charges to destination port: (By Seller)
    Charges for transporting goods by sea or air, including the cost of hiring the container or space in a shipping vessel.
  • Transit Insurance: (By Seller)
    Insurance Premiums paid to cover potential risks such as damage, loss, or theft of goods during transit.
  • Destination Port charges: (By Seller)
    Fees for unloading goods at the destination port and handling them within the terminal.
  • Inland Transit towards Final Destination: (By Seller)
    Costs for transporting goods from the destination port to the final delivery location.
  • Unloading charges at Final Destination: (By Seller)
    Expenses for unpacking goods from the container and unloading them at the destination.
    • Buyer's responsibilities
  • Destination Customs clearance: (By Buyer)
  • Destination Tariff (Customs Duty): (By Buyer)

Even though the information mentioned above can act as a guideline, you should make sure to consult your shipping agent and export consultants before making the quotation of your product or before entering into any contract.

Sub-articles based on inco-terms and mode of transport
Articles