What is the DAT Incoterm (Delivered at Terminal)?
The DAT Incoterm or “Delivered at Terminal” replaces the now outdated DES Incoterm (Delivery at Ship) and DEQ Incoterm (Delivered at Quay) rules, which appeared in the previous Incoterms edition, Incoterms 2000.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 must deliver the goods to a cargo terminal when dealing with an ocean freight shipment and/or at a hub for air or ground transportation. This means that the DAT Incoterm can be used for all modes of transportation. In other words, DAT requires the seller to place the goods that have been unloaded from the vessel but not yet gone through 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 handling fees at origin
- Origin charges
- International freight
- Destination charges
- Inland transport at the destination country until specified terminal/port (i.e. rail/inland terminal)
Buyer’s obligations under the DAT Incoterm
- Payment of goods
- Customs handling fees at destination (depending on arrival location)
- Payment of duties and taxes
- Final transportation from specified terminal/port to final delivery location
Unlike CIP and CIF, neither the buyer nor the seller is required to provide cargo insurance under the DAT Incoterm.
Whether you are a buyer or seller, we recommend you to always get cargo insurance to cover your responsibilities. When doing so, make sure that your insurance terms and conditions are clearly listed in your sales contract.
Difference between the DAT Incoterm and the DAP Incoterm
Do not confuse the DAT Incoterm with the DAP Incoterm, which are very similar. The main difference between the two Incoterms lie in its delivery location. Under the DAT Incoterm, delivery at destination must take place at a terminal, such as a quay, warehouse, container yard, or road, rail, or air cargo terminal, depending on the mode of transportation. In contrast, under the DAP Incoterm, delivery at destination can be anywhere within the destination country, even beyond the terminal. That said, as an importer, when working under DAT, you will be responsible for unloading the goods at the terminal of the destination country.
But when importing under DAP, unloading will take place at the agreed-upon location at destination. If you’re still unclear on the differences between the DAP Incoterm and the DAT Incoterm, do get in touch. Our imports and exports agents can advice you on which Incoterm best suits your shipping needs.