Learning more about Incoterms®2010

Delivered at Terminal or
DAT (named terminal at
port or place of destination)
Incoterms®2010 is 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.
The ICC’s Incoterms
®2010 identifies ten
obligations that the buyer
may need to fulfil in terms
of Delivered at Terminal or
DAT: (1) general obligations
of the buyer; (2) licences,
authorisations, security
clearances and other
formalities; (3) contracts of
carriage and insurance; (4)
taking delivery; (5) transfer
of risks; (6) allocation of
costs; (7) notices to the
seller; (8) proof of delivery;
(9) inspection of goods;
and (10) assistance with
information and related
costs.
The general obligations of
the buyer are essentially to
pay the price in conformity
with the contract of sale.
In respect of the licences,
authorisations, security
clearances and formalities,
where applicable, the buyer
must obtain these at his own
risk and expense, as well as
any import licence, and he
also needs to account for all
import (customs) formalities.
With respect to the
contract of carriage and
the contract of sale, the
buyer has no obligation.
However, in the instance of
the contract of insurance, the
buyer must provide the seller
with the information that he
might require to contract for
this.
The buyer must take
delivery when the goods
have been delivered in
accordance with the contract
of sale. Once the goods have
been delivered the buyer
bears all risks of loss or
damage. As for the allocation
of costs, the buyer must
pay all costs relating to the
goods once they have been
delivered, and additional
costs incurred by the seller
if the buyer failed to fulfil
his obligations. The buyer,
where applicable, also needs
to account for the cost of
the customs functionalities.
The buyer must, when
informed, take delivery of
the goods. The delivery
documents must be accepted
by the buyer. With respect
to pre-shipment inspection,
the buyer must pay for this
except where it is mandated
by the authorities in the
country of export.
With respect to assistance
with information and related
costs, the buyer must inform
the seller of any security
information requirements
and reimburse the seller
for all costs incurred in
rendering assistance.
Next week’s issue will
provide a summary of the
Delivered at Terminal (DAT)
term.