Marcus Weber
Senior Trade Finance Advisor
Two decades in trade finance across European and Asian banks, advising corporates on payment instruments, credit structures, and documentary risk.
Short answer
DAT (Delivered at Terminal) is a legacy Incoterms® 2010 rule: the seller delivered goods, unloaded, at a named terminal, with import clearance and duties on the buyer. Incoterms® 2020 replaced DAT with DPU (Delivered at Place Unloaded) — identical mechanics, but delivery at any named place rather than only terminals. DAT remains valid in contracts that expressly incorporate Incoterms® 2010, but new contracts should use DPU.
What DAT (Delivered at Terminal) Means
DAT belongs to the D-group of Incoterms® 2020 rules (arrival — legacy rule (replaced by dpu in 2020)) and applies to any mode or modes of transport. The rule's operative mechanics: risk transfers when the goods are unloaded from the arriving transport and placed at the buyer's disposal at the named terminal or destination place. Costs follow a different line — seller bears all costs and risk through unloading at the named terminal; buyer bears import clearance, duties, and onward costs.
Seller and Buyer Obligations Under DAT
| Seller Obligations | Buyer Obligations |
|---|---|
| Deliver the goods, unloaded, at the named terminal or destination place | Clear the goods for import and pay duties, taxes, and customs charges |
| Clear the goods for export and transit countries, but not for import | Accept delivery once goods are unloaded at the terminal |
| Bear all risk and cost through completed unloading at the terminal | Bear all risk and cost from completed unloading onward |
| Provide commercial invoice and transport document evidencing delivery | Arrange and pay onward carriage from the terminal |
Incoterms® deliberately cover only the sale contract: they allocate delivery, risk, cost, and clearance — never ownership transfer, payment terms, or breach remedies. Those belong in the sales contract itself, which should cite the rule precisely: "DAT [named place] Incoterms® 2020."
Risk Transfer and Cost Allocation
| Dimension | DAT Position |
|---|---|
| Risk transfer point | When the goods are unloaded from the arriving transport and placed at the buyer's disposal at the named terminal or destination place. |
| Cost split | Seller bears all costs and risk through unloading at the named terminal; buyer bears import clearance, duties, and onward costs. |
| Insurance | No obligation to the buyer, but the seller carries risk through terminal unloading and insures its own exposure. |
| Transport modes | Any mode or modes of transport |
| Export clearance | Seller |
| Import clearance | Buyer |
When to Use DAT — and When Not To
- Existing contracts that expressly incorporate Incoterms® 2010 — DAT remains enforceable there
- Amending or renewing legacy contracts where both parties understand the term
- Reading and interpreting older trade documentation and dispute records
- Understanding DPU's origin — DAT's mechanics live on inside its successor
Avoid DAT in new contracts: Incoterms® 2020 replaced it with DPU, and using a superseded term invites version disputes — which Incoterms edition governs? Write 'DPU [named place] Incoterms® 2020' instead. If the delivery point is a terminal, DPU works identically.
Common DAT Mistakes
- Using DAT in new contracts instead of its successor DPU
- Citing DAT without specifying the Incoterms edition — 2010 vs. earlier DAT/DUF interpretations
- Assuming DAT includes import duties — like DPU, it does not
- Treating 'terminal' loosely — under 2010 rules it meant a defined terminal facility, which is exactly the restriction DPU removed
Most DAT disputes trace to imprecise contract language — an unnamed place, an unspecified edition, or a rule chosen for quotation convenience rather than operational fit. The discipline is simple: name the exact place, cite "Incoterms® 2020," and choose the rule whose risk point matches where control of the cargo actually changes hands.
Key takeaways
- DAT is the Incoterms® 2010 predecessor of DPU — replaced in 2020.
- Mechanics are identical: seller delivers unloaded; buyer clears import.
- The change was scope: DPU allows any named place, not just terminals.
- DAT remains valid in contracts incorporating Incoterms® 2010.
- New contracts should always cite DPU Incoterms® 2020.
Frequently asked questions
DAT doesn't exist in Incoterms® 2020 — it was replaced by DPU. But Incoterms editions don't expire by operation of law: a contract that says 'DAT Laem Chabang Terminal, Incoterms® 2010' is fully enforceable under that edition. The rule is obsolete for new drafting, not invalid in existing contracts.
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