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DAT terms, a simplified tutorial
This article clarifies the following questions under DAT terms easy to understand.
What are DAT terms of Delivery? What are seller’s duties and responsibilities under DAT terms? What are the obligations of buyer under DAT terms? Whose responsibility to customs clearance at port of export and port of import under DAT terms. In a DAT terms, who need to pay Insurance? When does risk passes from seller to buyer under DAT terms? Under DAT terms of delivery, whose responsibility to pay export customs duties and taxes?
Let us know the term DAT under Inco terms .
Inco Terms 2010 defines DAT as ‘Delivered At Terminal’ which means, the seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the Buyer's disposal at a named terminal at the named port or place of destination.
Let us go deeply in to the term DAT in simple words to make easy understand.
In a DAT terms, ‘Terminal’ can be defined as, ‘any place, whether covered or not, such as quay, warehouse, container yard, or road, rail or air cargo terminal’.
In a DAT terms, once goods are ready for export, the seller arranges suitable packing to meet export standard at his on cost. The goods are moved to the point of customs location to complete necessary export customs clearance procedures and formalities at exporting country at seller’s costs and risks under DAT terms. Seller meets all necessary expenses against customs clearances, documentation and other required legal export formalities at exporting country. Under DAT terms, all required taxes and duties at exporting country are paid by seller. The cargo is loaded in to the international carrier at sellers on cost and risk in a DAT terms. The responsibility of paying freight and other charges up to the destination terminal mentioned in DAT terms is vested with the seller. In a DAT terms, the seller is also responsible for the charges of unloading goods at terminal mentioned in the terms of contract. Insurance cost is paid by the seller under DAT terms up to the destination terminal mentioned in the contract. In short, under DAT terms, costs and risks to deliver goods at the terminal mentioned in the contract is under the responsibility of seller.
Once after unloading goods at destination terminal contracted by buyer and seller under DAT terms, the responsibility passes from seller to buyer to take delivery of goods to buyer’s premises. Under DAT terms, the buyer meets all expenses to move goods from terminal to port (place) of final destination at his on risks. If any further movement of goods from the destination terminal contracted under DAT terms, such additional movement expenses is on account of buyer. The necessary import customs clearance procedures and formalities need to be completed by buyer under his on costs and risks under DAT terms of delivery. If any insurance need to be covered from such terminal to the final destination of goods, the buyer arranges at his on cost under DAT terms. In a DAT terms, duties and taxes at importing country need to be paid by the buyer. Under DAT terms, once after arrival of goods at buyer’s premises at his own cost and risks, the charges of unloading is also falls under the account of buyer.
Have you satisfied with this explanation on DAT terms? I believe, I could clarify DAT terms of delivery in simple words to make easy understand.
Detailed articles about Inco Terms of Delivery under export and import of International business have been mentioned in separate category – INCO TERMS – in this web site. You can click here to read.
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