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 seller may need to fulfil in terms of Delivered at Terminal or DAT: (1) general obligations of the seller; (2) licences, authorisations, security clearances and other formalities; (3) contract of carriage and insurance; (4) delivery; (5) transfer of risks; (6) allocation of costs; (7) notices to the buyer; (8) delivery document; (9) checking – packaging – marking; and (10) assistance with information and related costs. The general obligations of the seller are essentially the provision of goods and the commercial invoice in conformity with the contract of sale, which implies that the documents stipulated in the contract of sale must be provided. In respect of the licences, authorisations, security clearances and formalities the seller must obtain these at his own risk and expense, and also needs to account for all export (customs) formalities. With respect to the contract of carriage the seller must contract for this at his own expense, whilst the seller has no obligation to the buyer with respect to the contract of insurance. As for the delivery to be effected, the seller must unload the goods from the arriving means of transport, and then has to place the goods at the disposal of the buyer, at the named terminal. Until the goods have been delivered the seller bears all risks of loss or damage. As for the allocation of costs, the seller must pay all costs until the goods have been delivered, and where applicable the export formalities. The seller must give notice to the buyer of the delivery of the goods. The seller must, at his own expense, provide the buyer with the documents required to take delivery of the goods. With respect to the checking – packaging – marking, the seller must pay those costs that are necessary for the purpose of the delivery of the goods. As for the assistance with information (including security-related information) and related costs, the buyer could request this from the seller, but this would be for the buyer’s account. In next week’s issue we will define Delivered at Terminal (DAT) – The Buyer’s Obligations.