What are Group D Terms?

Incoterms explained in simple words

The international Incoterms rules divide delivery terms into four groups based on the level of responsibility assumed by the seller and the buyer:

🔹 Group E – Minimum seller obligations (EXW)
🔹 Group F – Seller delivers goods to the carrier; buyer pays for the main carriage (FCA, FAS, FOB)
🔹 Group C – Seller pays for main carriage, but risk transfers earlier (CFR, CIF, CPT, CIP)
🔹 Group D – Maximum seller responsibility, including delivery to the final destination (DAP, DPU, DDP)

Group D – Maximum seller responsibility

Group D terms represent the highest level of seller responsibility.
Here, the seller arranges and pays for the entire transportation up to the final destination, bearing most of the delivery risk and cost.

In these terms, the buyer’s role is minimal — they only receive the goods at the agreed point. Group D is often used for door-to-door delivery or in modern multimodal logistics.

DAP – Delivered At Place

Format: DAP [named place of destination]

Definition: The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport, ready for unloading at the named destination.

The seller bears all risks and costs of transport to that point, except import customs clearance.

Mode of transport: Any (road, rail, air, sea, multimodal).

Example: An Azerbaijani exporter sells industrial equipment to a buyer in Tbilisi under DAP terms. The seller arranges and pays for trucking to the buyer’s site in Georgia. Risk transfers once the truck arrives, before unloading.

DPU – Delivered at Place Unloaded

Format: DPU [named place of destination]

Definition: The seller delivers when the goods are unloaded at the agreed destination.

This is the only Incoterm where the seller is responsible for unloading the goods. Import clearance remains the buyer’s responsibility.

Mode of transport: Any (road, rail, air, sea, multimodal).

Example: A company in Baku sells packaging materials to a client in Almaty under DPU terms. The seller arranges full rail delivery and unloading at the buyer’s warehouse terminal in Kazakhstan.

DDP – Delivered Duty Paid

Format: DDP [named place of destination]

Definition: The seller delivers the goods ready for unloading after completing all import formalities and paying all duties and taxes.

DDP places the maximum obligation on the seller — they handle export and import customs, transportation, and all related costs and risks.

Mode of transport: Any (road, rail, air, sea, multimodal).

Example: A furniture exporter from Turkey sells to a buyer in Germany under DDP terms. The seller delivers goods directly to the buyer’s warehouse, completing customs clearance and paying import duties in Germany.

Key Takeaways

• Seller bears almost all costs and risks
• Buyer’s responsibility begins only after delivery at destination
•  DPU includes unloading; DDP includes import customs and duties
• Always specify the exact place of destination in the sales contract

Learn more about the Incoterms C group -> https://alliancemultimodal.com/what-are-group-c-terms/