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.