What is DAT - Delivery at terminal?

Delivery AT terminal -DAT

The world is a global economy, and so are the terms and conditions which define the rules of the trade. How inconvenient would it be for the importer and exporter if the terms are not clearly defined or separate meanings are attached to the terms as per the jurisdiction of the government? Transactions would have been cumbersome, and trade would not have been smooth.

To overcome these issues and to ensure that trade happens smoothly without causing any inconvenience to the parties involved,the International Chamber of Commerce developed 11 Incoterms and Delivery At Terminal is one amongst these.

Meaning of Delivery At Terminal (DAT)

Delivery At Terminal means when the terms of the agreement say that the seller is responsible for the safe delivery of goods until the goods are offloaded at the point of destination or the final terminal.

As per this definition, the seller is responsible for delivering the goods by incurring the export expenses and arranging for all the expenses related to handling charges at the terminal. The buyer has to incur the cost of customs clearance of goods.

What is the Terminal?

In Delivery at Terminal, the word Terminal means the specific port or destination where the goods have to be unloaded in the buyer’s country.Since DAT is applicable for all sorts of transportation so it can include rail, sea, air, warehouse, dock, port, railway station, airports, and free zones.

The most important point here is that the terminal has to be mentioned in the contract.

Responsibilities and Obligations of Buyer and Seller

Seller:

Under DAT, the major part is played by the seller so following is the list of obligations he has to fulfill:

1. The seller has to deliver the goods as mentioned in the contract along with the invoice and other documents.
2. The seller has to pay for the carriage till the terminal without any obligation to the buyer.
3. The goods have to be unloaded by the seller at the terminal.
4. Any risk in case of contingency during transit, upto the point of unloading has to be borne by the seller.
5. Carriage cost, export clearance, unloading expenses at destination and cost of export clearance rests on the seller.
6. All the expenses related to operations, packaging, labeling, quality check are borne by the seller.

Buyer:

1. The buyer is responsible to pay for the goods as per the terms of the contract and take their delivery from the destination point.
2. He has to pay for the carriage cost after the goods have been unloaded at the terminal.
3. He is required to get the export license and import permit for smooth delivery in the country.
4. The buyer assumes the risk after the goods get unloaded at the destination terminal.
5. Costs related to import customs duties and taxes have to be borne by him.
6. It is the responsibility of the buyer to inform the seller about the time of shipment and terminal.

Delivery AT Terminal makes the transactions hassle-free for the buyer and is convenient because the risk and costs are reduced in this case.