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What is Delivered at Terminal (DAT) incoterm?

Understand the key responsibilities, duties and charges of DAT incoterms in international trade including responsibilities of the exporter and importer.

Delivered at Terminal (DAT) refers to goods being delivered by the exporter or exporter, once unloaded from the arriving mode of transportation. DAT incoterm is used regardless of the method of transportation and is even used for multiple modes of transportation. The agreed-upon specific location within the terminal at the destination should be stated with clarity in DAT incoterm.

Delivered at Terminal (DAT) in shipping terms

In shipping terms, DAT means that the exporter is required to clear products for export wherever necessary. However, the exporter is not obliged to pay import duties or handle other clearances to import goods¹.

DAT incoterm obligations

Delivery at Terminal is used when the exporter is accountable for both complete delivery of the products up to the final destination and their unloading. All costs till the point of delivery are covered by the exporter, while taxes and customs clearance are covered by the importer at the destination. The term ‘terminal’ refers to a dock, warehouse, container yard, or any rail, air, or road. Similar to the other ‘D’ incoterms, risks and responsibility for goods are transferred from the exporter to the importer at the final destination.

Exporter’s responsibility

Some of the responsibilities of an exporter are²:
· Charges for storing goods in a warehouse till delivery
· Packaging fees
· For loading and moving products to the first port through inland transportation.
· Deportation fees
· Charges for freight forwarding
· Charges for customs procedures related to exports
· Costs associated with preparing and completing the paperwork required for the shipping procedure

Delivery-related responsibilities

The exporter is only responsible till the designated location, which can be a port or a warehouse.

Insurance

Since the exporter is responsible for freight, he also handles insurance till the designated port and pays all insurance costs throughout the process.

Customs and duties

The exporter is obliged to comply with export customs procedures and is in charge of putting together all relevant paperwork.

Importer’s responsibilities

Some of the responsibilities of an importer are:
· Charges for customs procedures related to imports
· Port fees
· Inland transit fees
· Warehouse fees

Delivery terms

The importer is required to accept the exporter's documentation verification at the destination port and has to receive goods that have been delivered to the port.

Risk transfer and insurance

After delivery, the importer assumes the risk of the products. Additionally, risk and damage will be the importer’s responsibility if the exporter is not instructed by the importer at the designated port.

Customs and duty clearance

The importer is in charge of paying any import customs and charges because they are transferred at the designated harbor. After that, all risks and financial obligations remain the importer’s responsibility.

DAT is one of the most common delivery alternatives used. In any agreement, it is important for the two parties to discuss and finalize terms mutually to avoid hassles later.

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More blogs on incoterms

1. What are incoterms in exports: Here’s everything you need to know

2. What is a Cost and Freight (CFR) incoterm?

3. All you need to know about Free Alongside Ship (FAS) incoterm 2020

4. Guide to FCL shipping: Everything exporters need to know

5. What is Carriage Insurance Paid (CIP) in incoterms?

6. What is Freight on Board: How does it work in shipping?

7. What is a Container Freight Station (CFS) and its role in shipping?

8. What is Cost, Insurance and Freight (CIF) in shipping?

9. What is a Free Carrier (FCA) incoterm?

10. What is EX Works (EXW) incoterm in international trade?

Frequently Asked Questions

Does DAT include unloading?

Yes. DAT incoterm means that the exporter is accountable for both complete delivery of products to the final terminal or port of destination and their unloading.

What is the difference between DAP, DAT, and DDP?

· DAP (Delivered at Place) denotes that the exporter has to arrange for carriage and is responsible for delivering goods.
· DAT (Delivery at Terminal) means that the exporter is responsible for clearing of goods for export until they have arrived at a named terminal of the end destination.
· Under DDP (Delivered Duty Paid), the exporter has to take the responsibility for costs and risks, right from the beginning to the end, and the importer bears costs and taxes of import clearance.

Does DAT include duty?

The responsibility to pay import duty, taxes, and any additional customs fees is with the importer under a DAT agreement.

What is the difference between CIF and DAT?

The primary distinction between CIF and DAT is that the former is used for all modes of transportation, whereas the latter is only used for inland and maritime transportation.

What does the LDP/DDP shipping term mean?

DDP or Delivered Duty Paid means that the exporter transfers products to the location specified by the importer after concluding import customs clearance processes. Landed Duty Paid (LDP) is used in commerce to describe delivery price at the dock, which includes the import tax that the exporter has already paid.

Published on February 24, 2023.

Sources:
1. https://www.aitworldwide.com/incoterms-dat
2. https://customssupport.com/insights/incoterms-explained-delivery-terminal-dat
3. https://www.icontainers.com/help/incoterms/dat/
4. https://www.freightos.com/freight-resources/dat-delivered-terminal-shipping-incoterm/
5. https://www.cosmosourcing.com/blog/incoterms-defined-fob-exw
6. https://www.linkedin.com/pulse/difference-between-incoterms-dat-dap-ddp-what-heck-vat-matthew-newman/

What is EX Works (EXW) incoterm in international trade?

What is Delivered at Place (DAP) incoterm?

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