DAT is an incoterm published by the ICC, having its first edition in 1936 and the most recent one in January 2020. The recent edition has a new name for DAT, i.e., ‘Delivered at Place Unloaded’, but the responsibilities of the seller and the buyer remain unchanged.
In Delivered At Terminal, the terminal is the nominated place of destination, which has a crucial implication in the shipping process. In DAT, the seller is responsible for the delivery of goods till the named port and the buyer liable for all charges thereafter.
Initially, the nominated port/spot at the location is acknowledged by both parties. At this port, the seller takes charge of unloading goods and the buyer looks after the import proceedings. Once the seller unloads the goods at the named port, the risk moves to the buyer.
Payment terms for the seller include:
The seller has responsibilities till the nominated place of port, so he stays liable for the main freight proceedings. His duty stays till the delivery of goods at the first port, dealing with the documentation and shipping procedures. Further, the responsibility of unloading goods at the appointed port also rests with the seller.
The risk of goods stays with the seller till the appointed place of port. He stays liable for any risk related to damage of goods till they are unloaded at the nominated port.
Since the entire freight responsibility rests with the seller, he is liable for insurance coverage till the nominated place of port. He'll bear all the insurance charges during the course; in the case of sea/ocean freight, he’ll have to take marine insurance for goods.
The seller has duties towards export customs proceedings. He stays responsible for preparing all necessary documents. Payment for port charges and customs clearing procedure, duties, and local charges are borne by him.
Costs borne by the buyer include:
Under DAT terms, the buyer must accept the proof of documents provided by the seller at the destination port. He shall receive the goods delivered at the port.
The risk of goods transfers to the buyer after the delivery. Also, if the buyer fails to instruct the seller in reference to the nominated port, the risk and damage will be borne by him.
As the carriage duty rests with the seller, insurance is his responsibility. The buyer has no obligation to insurance.
As the duties transfer at the nominated harbor, the buyer is responsible for import customs and duties. He remains liable for all payment charges and risks thereafter. Acquiring all necessary documents provided by the seller at the appointed port and carrying out further import proceedings are a part of his responsibilities.
Yes, DAT does include customs duty, but both the parties have to contribute towards it. The seller has to take care of export duty and the buyer has to take care of import.
The seller has to take care of unloading of goods at the destination port as per DAT.