What does DAT mean?
DAT stands for Delivered At Terminal. It is a contract term from the Incoterms (International Commercial Terms) developed by the International Chamber of Commerce. Usage of Incoterms is voluntary, but simplifies the conclusion of contracts in international trade. Delivered At Terminal means, that the seller of a product delivers it to a previously specified terminal. Until then he has to shoulder the full costs and the risk of transport. The means of transport are not specified by DAT. „Terminal“ describes the destination that buyer and seller must agree upon. That can be not only an airfreight terminal, but a train terminal, a wharf or a warehouse as well.
Give precise information
It is important to specify the location exactly to avoid dispute or lack of clarity. Terminals and warehouses at airports or harbours are usually very big, therefore precise statements are an important consideration. In contrast to DAP (Delivered At Place) the seller has to carry the entire costs of shipping including the unloading at the agreed upon destination.
Duties of buyer and seller
With the DAT clause, the seller must not only care for the correct documentation and invoice, but also for packaging, labelling, the export licence and the customs formalities. He also pays for the loading and unloading, organizes the transport and must provide the proof of delivery. The buyer is responsible for the subsequent transport. He also must arrange the import formalities and pay import tariffs.