Using the DAT Incoterm
The DAT Incoterm or “Delivered at Terminal” replaces the now outdated DES Incoterm(Delivery at Ship) and DEQ Incoterm (Delivered at Quay) rules, which appeared in the previous Incoterms edition, Incoterms 2000.
The DAT Incoterm states that the seller deliver the goods to a cargo terminal when dealing with an ocean freight shipment and/or at a hub for air or ground transportation.
In other words, DAT requires the seller to place the goods that have been unloaded from the vessel but not yet cleared by customs clearance, at the destination country’s terminal, port, or airport.
Under the DAT Incoterm, the seller is responsible for all costs and risks up to the unloading of goods at the terminal. This means that the buyer will be responsible for processing the clearance of the goods, all duties, taxes and any other charges that may be added at this stage.
If the seller is willing to accept the risks and costs of handling the goods all the way to the final delivery, we recommend using the DAP Incoterm or the DDP Incoterm.
Seller’s obligations under the DAT Incoterm
- Delivery of goods and documents required
- Packaging and wrapping
- Inland transport in the country of origin
- Customs at origin
- Exit charge
- International freight
- Arrival expenditures
- Inland transport at the destination country until specified terminal/port
Buyer’s obligations under the DAT Incoterm
- Payment of the goods
- Customs on arrival (depending on arrival location)
- Payment of fees
- Final transportation from terminal/port to delivery
Differences between the DAT Incoterm and the DAP Incoterm
Do not confuse the DAT Incoterm with the DAP Incoterm, which are very similar.
Even though both Incoterms require the buyer/importer to handle all import fees, there are some key differences to be aware of:
Under the DAT Incoterm, delivery place must be at a terminal, such as a quay, warehouse, container yard, or road, rail, or air cargo terminal, depending on the mode of transportation.
Under the DAP Incoterms delivery place could be anywhere within the destination country, even beyond the terminal.
Unloading of the goods from the means of conveyance
Under the DAT Incoterm, the buyer/exporter must unload the goods at the terminal of the destination country.
Under the DAP Incoterm, the importer must unload the goods at the previously-agreed upon place of destination.