Learning more about Incoterms®2010

In an earlier issue we introduced “Delivered at Terminal” or “DAT” (named terminal at port or place of destination) Incoterms®2010, the fifth of eleven Incoterms (it is always plural) for the class “Rules for any Mode or Modes of Transport”, which means that it can be used irrespective of the selected mode of transport, and can even be used for more than one mode of transport. In the introduction of the DAT term and in subsequent issues we briefly highlighted the ten seller’s obligations and the ten buyer’s obligations. This serves to summarise and conclude the term. According to the International Chamber of Commerce (ICC), DAT means that “the seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the named port or place of destination”. According to the ICC’s “Guidance Note” “Terminal” includes any place, whether covered or not, such as a quay, warehouse, container yard or road, rail or air cargo terminal. The “Guidance Note” also states that “the seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination”. As with the earlier Incoterms it is advisable for the contracting parties to clearly specify the “Terminal”, and also if possible a specific place within the “Terminal”. Accounting for the seller’s risk, the seller would be well advised to procure a contract of carriage, which is in accordance with the specifications of the contract of carriage. It is important to bear in mind that in instances where the contracting parties intend the seller to bear the risks and costs of transporting and handling the goods from the “Terminal” to another specified place, then the Delivered at Place (DAP)[the 6th] and Duty Delivered Paid (DDP) [the 7th] Incoterms should be used. These two Incoterms are the last of the “Rules for any Mode or Modes of Transport”. The final ICC “Guidance Note” reminds us that under DAT the seller must, where applicable, clear the goods for export. The seller has no obligation with respect to the importation of the goods, and its associate actions. In next week’s issue we will define the sixth Incoterms – Delivered at Place (DAP).