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.
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
The exporter is only responsible till the designated location, which can be a port or a warehouse.
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.
Some of the responsibilities of an importer are:
· Charges for customs procedures related to imports
· Port fees
· Inland transit fees
· Warehouse fees
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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Published on February 24, 2023.