DAT (Delivered At Terminal)
From Supply Chain Management Encyclopedia
Russian: DAT Поставка на терминале (...названный терминал назначения)
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General Provisions
In accordance with rules of Incoterms® 2010,[1] the DAT (Delivered At Terminal) may be used irrespective of the mode of transport selected and may also be used where more than one mode of transport is employed. Moreover, the DAT term is considered as ideal for multimodal transport. In DAT, the seller makes the goods available to the buyer unloaded from the arriving means of transport. Therefore, the seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the named port or place of destination. The DAT is the only term under which the seller is responsible for unloading. The "Terminal" includes any place, whether covered or not, such as a quay, warehouse, container yard or road, rail or air cargo terminal. In DAT, the named terminal at port or place of destination is domestic to the buyer.
The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination. The parties are well advised to specify as clearly as possible the terminal and, if possible, a specific point within the terminal at the agreed port or place of destination, as the risks to that point are for the account of the seller. The seller is advised to procure a contract of carriage that matches this choice precisely.
Moreover, if the parties intend the seller to bear the risks and costs involved in transporting and handling the goods from the terminal to another place, then the DAP (Delivered At Place) or DDP (Delivered Duty Paid) rules should be used. The DAT rule requires the seller to clear the goods for export, where applicable. However, the seller has no obligation to clear the goods for import, pay any import duty or carry out any import customs formalities.
Summary on Buyer's and Seller's Responsibilities under DAT Rule in Incoterms® 2010
Seller's Responsibilities (in brief) | Buyer's Responsibilities (in brief) | |
Goods - Payment |
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Licenses, Security, and Customs Formalities |
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Carriage |
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Insurance |
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Delivery - Taking Delivery |
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Risk Transfer |
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Costs |
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Notice to the Buyer - Notice to Seller |
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Delivery and Transport Documents - Proof of Delivery |
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Checking, Packing, Marking - Inspection(s) |
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Other |
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Examples [3]
- DAT, Terminal A1, Domodedovo Airport, Moscow, Russia
- DAT, Sea Terminal ZZZ, Port of Civitavecchia, Italy
Notes
- According to Incoterms rules, seller and buyer have reciprocal responsibilities only. The "no obligation" term often used in the rules of Incoterms means that one party has not obligation to the other party. In this case (Art. B.3.А - Incoterms® 2010) the buyer has obligation neither to arrange nor to pay the contract on carriage. The "no obligation" term has the same understanding for the both parties in the case of insurance. However, the "no obligation" term being applied to the second party does not mean that the task performance is out of the first party’s interests (Articles А.3.В and B.3.B in Incoterms® 2010). So, for the case of the DAT rule, despite the fact that the buyer has not responsibility to the seller for the contract on carriage, it is clear, that the buyer has an interest to have such a contract on carriage that will deliver the goods to the buyer’s place of destination safely and in the time stipulated.
- Delivery document term used as the heading to article A8 (Incoterms® 2010) means a document used to prove that delivery has occurred. For many of the rules of Incoterms® 2010, the delivery document is a transport document or corresponding electronic record. Nevertheless [2], with EXW, FCA, FAS and FOB rules, the delivery document may simply be a receipt. A delivery document may also have other functions, for example as part of the mechanism for payment declaration: refers to comply with customs regulations and have met some of the requirements, including the notes, Enron, information or physical inspection of the obligation. Such requirements are particularly common in construction contracts with large contractors, government entities, and major corporations.
- The examples given hereto are to illustrate purposes concerning the syntax of Incoterms® 2010 rules and could conform with any real data occasionally only.
References
- ↑ Incoterms® 2010: ICC rules for the use of domestic and international trade terms – ICC Publication No 715E
- ↑ Financial terminology | http://financialterminology.info/2011/06/incoterms-2010-international-edition-b/