Tera Logistics

Incoterms: Delivered at Terminal

Posted in Incoterms - 3 Sep 2018, 10:50 AM

If you have already read about Carriage Paid To or CPT and Carriage and Insurance Paid To or CIP, perhaps you are familiar with Terminal Handling Charges or THC. This is an additional fee when the goods transported to the specified destination have to go through or are delivered at terminal first. Sometimes some goods require a THC fee and sometimes they do not, depending on the seller’s decision or policy.

Based on the description above, delivered at terminal (or also known as DAT for short) is when the seller delivers the goods after they are unloaded from the transport arriving at the terminal. They are put at the buyer’s disposal there or another mentioned place or destination.

How Delivered at Terminal or DAT actually works:

DAT is used when the goods have to stop by at least another place first before they are transported again to the actual destination. Since the journey is long, this means the goods require more than one mode of transportation.

For example the goods have to be transported by truck on the land from the first spot before the truck stops at the port or terminal. Then once the truck is there, the goods will be unloaded and placed at the terminal before the second transport arrives. In this case, let’s just say that it is a ship that will take the goods to another island nearby as the actual destination.

Of course, the terminal as the temporary stop for the goods has to be clearly specified. Not only that, all parties involved (the seller and the buyer) have to agree upon the terminal where the goods will be placed for a while.

Seller’s obligations when it comes to using Delivered at Terminal or DAT policy:

The seller has so many obligations here. To list them down, here they are:

  1. Clearing the goods for export if the situation makes it applicable. However, the seller is not obligated to clear them for import or other things related. The importing issues are the buyer’s responsibilities.
  2. Dealing with commercial invoice and documentation regarding the goods – and also the goods themselves.
  3. Being in charge of export packaging, marking, licenses, and customs formalities.
  4. Making sure that the goods arrive safely at the terminal before they are transported to the actual destination.
  5. Being in charge of pre-carriage and delivery.
  6. Loading the goods and making sure that the main carriage is at present.
  7. Supplying a proof that the goods have already been delivered.

Buyer’s obligations when it comes to using Delivered at Terminal or DAT policy:

As a buyer, your obligations are not as many as the seller. Still, you must have to do these:

  1. As previously mentioned, dealing with import-related formalities and duties.
  2. Dealing with onward carriage and pre-shipment inspection.
  3. Dealing with the delivery from the seller.

To use Delivered To Terminal or DAT, make sure that you read the regulations carefully, especially when it comes of Terminal Handling Charges or THC. By this way, a good communication between the seller and the buyer will be well developed.

Related stories

June 4, 2018 - Incoterms

Incoterms: Cost Insurance and Freight

Also known as CIF, it is a term well-known in a trading business. It is when the seller is required to arrange for the... continue reading

March 5, 2018 - Incoterms

Incoterms: Free Alongside Ship

Although the name is free alongside ship or FAS, it is not as free as it sounds. In fact, using FAS means that it is... continue reading

August 6, 2018 - Incoterms

Incoterms: Carriage and Insurance Paid To

Starting from its definition, carriage and insurance paid to is another commercial term in trading business. It... continue reading

Let's talk about how Tera Logistics can help you.

Contact us