DAT refers to Delivery at Terminal. It’s a delivery method that involves the goods for export being cleared by the seller. The goods are entirely the seller’s responsibility until their arrival at a terminal decided earlier at the final destination. From thereon, the buyer is liable for all the charges. The unloading of the goods is done at the terminal. DAT can be adopted with any mode of transportation.
So, while the seller takes over charge of unloading the goods at the port, it’s the buyer’s job to take charge of the import proceedings. Thus, the risk moves from the seller to the buyer after the goods have been unloaded at the named port.
Meaning of DAT in Shipping Terms
- Under the DAT system, the destination place is decided by both the seller and the buyer.
- The delivery until the port decided upon is the seller’s responsibility. The place of delivery may also be the terminal, the forwarding agent’s warehouse or the transport hub, etc.
- The seller here is responsible for the primary carriage between the first and the second port.
- The seller has to unload the goods at the destination port.
- The risks and the costs of the goods move to the buyer after they have been unloaded.
The Seller’s Responsibilities
The terms of payment for the seller include:
- The warehouse charges of maintaining the goods till their delivery
- The packaging charges involved in marking and labeling the goods following export standards
- The inland transportation involved in the loading and transporting of the goods to the first port
- The deport charges that are a part of port duties
- The fee is borne by the forwarding agent for handling the logistics
- The customs charges involved in the customs procedures for the export of the goods
- The documentation charges that are to be borne for the preparation and timely submission of documents necessary for shipping
The seller is liable for the main freight proceedings as the responsibility of the goods lies on him till the place of port nominated. It’s his duty to deliver the goods at the first port, carry out the documentation, and take charge of other shipping procedures. The unloading of the goods at the port decided upon is also the seller’s responsibility.
The risk of the goods is with the seller till they reach the place of port appointed. Any risk related to the goods being damaged is the seller’s liability till they’re unloaded at the nominated port.
The liability of insurance coverage lies with the seller till the goods reach the place of port nominated. He’ll have to bear all the costs while the goods are being transported. Marine insurance has to be taken in the case of transport on the sea or ocean.
Duty and Customs Clearance
Here, the seller is responsible for all sorts of export customs proceedings. He’s to prepare all the documents that are necessary. The payment for the port charges, customs clearance, duties, and local charges are all to be borne by him.
The Buyer’s Responsibilities
- The customs charges involved in import customs proceedings
- The port charges involved in the port clearance procedure
- The inland transit charges involved in transportation to the warehouse
- The warehouse charges are borne for maintaining the goods after they have been delivered by the seller
The buyer shall have to accept all proof of the documents furnished by the seller at the destination port. The goods are to be received by him delivered at the port.
After the delivery, the risk of the goods is transferred to the buyer. Any damage caused to the goods due to the buyer’s failure to instruct the seller at the nominated port shall have to be borne by the buyer itself.
The insurance is the responsibility of the seller as the carriage duty entirely rests on him. The buyer bears no obligations with regard to insurance.
Duty and Customs Clearance
With the duties of transport being transferred at the nominated port, the responsibility of duty and customs clearance too is transferred to the buyer now. All payment charges and risks are now his liability. He has to collect all the documents that the seller provides for the import proceedings.