DAT omitted under Incoterms 2020. Can I still use DAT Inco Terms?
ICC has modified the definitions of Inco terms 2010 and published its revised version called Incoterms 2020. The buyers and sellers have doubts; whether they can use the old version of Inco Terms, say Incoterms 2000 or Incoterms 2010 after its new version publication in 2020.
One of the major differences between Inco Terms 2010 and Inco Terms 2020 is that ICC has omitted the term DAT and introduced a new term DPU. DAT means Delivered At Terminal (named place) and DPU means Delivered at Place Unloaded (named place).
Can DAT still be used under the shipments effected from the year 2022 onwards? The answer is yes. Inco Terms are rules and not a regulations. However, the exporters and importers may note, when you use previous version of Inco terms, you may mention the year of incoterms under contract of carriage which is a part of your Sales contract to avoid future problems and disputes related to responsibility of costs and risks under movement of sale of goods. However, we recommend all exporters and importers globally to preferably use latest version of Incoterms 2020 for movement of goods from seller’s side to buyer’s side, as ICC modifies the delivery terms based on the study of past experiences faced by traders for smooth movement of goods by minimizing problems and disputes between buyer and seller .
In short, DAT may also be used for movement of goods defined under Inco Terms 2010. However, we suggest all to preferably use latest version of Inco Term rule for movement of goods.
According to ICC, Incoterms 2020 Para 74 and 75 explains about DAT and DPU as below:
“The only difference between DAT and DAP in the Incoterms® 2010 rules was that in DAT the seller delivered the goods once unloaded from the arriving means of transport into a “terminal”; whereas in DAP, the seller delivered the goods when the goods were placed at the disposal of the buyer on the arriving means of transport for unloading. It will also be recalled that the Guidance Note for DAT in Incoterms® 2010 defined the word “terminal” broadly to include “any place, whether covered or not…”.
ICC decided to make two changes to DAT and DAP. First, the order in which the two Incoterms® 2020 rules are presented has been inverted, and DAP, where delivery happens before unloading, now appears before DAT. Secondly, the name of the rule DAT has been changed to DPU (Delivered at Place Unloaded), emphasising the reality that the place of destination could be any place and not only a “terminal”. However, if that place is not in a terminal, the seller should make sure that the place where it intends to deliver the goods is a place where it is able to unload the goods.”
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