“Delivered at Terminal’ or three letter abbreviation DAT refers to common contractual term used in international trade. The term DAT replaces earlier term ‘Delivered ex quay’. As per ‘Delivered ex quay’ term seller must deliver the goods at a wharf, and was thus applicable to goods delivered via waterways (whether inland or sea). The term ‘terminal’ according to incoterm ‘Delivered at Terminal’ can be any place – a quay, container yard, warehouse or transport hub. Further the seller may use any transport mode, or where there is more than one transport mode.
Under DAT, it is the responsibility of the seller for arranging carriage and for delivering the goods, unloaded from the arriving conveyance, at the named place. The seller has to bear all risks and costs until the item is duly delivered at a named terminal at the end destination. However, the buyer is responsible for import clearance and any applicable local taxes or import duties.
We may summarize the obligation of seller (exporter) and the buyer (importer) as under.
Documentation of the goods exported as per contract
Payment of freight, insurance charges etc. until the item is duly delivered at a named terminal at the end destination.
Proof of delivery.
Payment of taxes and import duties
Transportation of goods from delivery terminal to importer’s storage place/ godown