DAT in Incoterms stands for Delivered at Terminal, a rule under which the seller pays for transport, bears the risk of loss, and unloads the goods at a named terminal at the destination; the moment the goods sit unloaded at that terminal, everything shifts to the buyer. The International Chamber of Commerce (ICC) introduced DAT in the Incoterms 2010 revision and renamed it Delivered at Place Unloaded (DPU) in 2020.1International Chamber of Commerce. Incoterms 2020 The core mechanics did not change with the renaming.2ICC Academy. Incoterms 2020 vs 2010 – Whats Changed
What Changed in 2020
Under DAT, the seller delivered the goods to the buyer’s disposal, unloaded from the arriving vehicle, at a named terminal. A “terminal” included any covered or uncovered place: a quay, a warehouse, a container yard, a road or rail terminal.3International Chamber of Commerce. The Incoterms Rules 2010 In practice, traders read the word “terminal” too narrowly and assumed the rule only worked at a formal port or depot.
The 2020 update dropped the word “terminal” and replaced it with “place unloaded” to make clear the destination can be anywhere the parties agree: a warehouse loading dock, a construction site, a container yard, or a traditional terminal.1International Chamber of Commerce. Incoterms 2020 Beyond that broader delivery location, no substantive rules changed.2ICC Academy. Incoterms 2020 vs 2010 – Whats Changed
You can still write “DAT” into a sales contract, but the ICC recommends switching to DPU under the 2020 rules.2ICC Academy. Incoterms 2020 vs 2010 – Whats Changed If the contract says “DAT” without naming an edition of Incoterms, the parties leave themselves open to a fight over whether the 2010 or 2020 rules govern. Name the rule, the exact place, and the edition year, for example “DPU (Incoterms 2020), Gate 4, Port of Long Beach Terminal.”
Both DAT and DPU work with any mode of transport, including ocean, air, road, and rail, which makes them useful for multimodal shipments that combine a sea leg with inland trucking.4International Trade Administration. Know Your Incoterms
Who Pays and Who Bears Risk
The seller arranges and pays for the entire journey from origin to the named destination, including freight, transit fees, and movement through intermediate hubs. The seller bears all risk during that journey, so damage in transit falls on the seller.3International Chamber of Commerce. The Incoterms Rules 2010
The seller also has to physically unload the goods from the arriving vehicle at the destination. That unloading obligation is the defining feature of the rule.5ICC Academy. Incoterms 2020 – DPU or DAP The seller needs equipment or labor in place at the destination to get the goods off the truck, ship, or railcar. If a pallet breaks during unloading and the contents are destroyed, that loss is the seller’s.
Export formalities are on the seller too: export licenses, security clearances, customs paperwork, and any duties or taxes on the export side.4International Trade Administration. Know Your Incoterms The seller must hand the buyer a delivery document proving the goods arrived and were unloaded, such as a transport document or warehouse receipt. Without it, the buyer may not be able to claim the goods, and storage fees start piling up.
The seller pays for packaging suitable for the planned transport (unless the product ships unpackaged, as with bulk grain) and must give the buyer enough advance notice to arrange to take delivery.
Risk passes at the exact moment the goods are unloaded and placed at the buyer’s disposal at the named destination.3International Chamber of Commerce. The Incoterms Rules 2010 Before that moment, the seller carries the loss; the second the goods rest on the ground at the agreed place, the buyer does. The transfer does not depend on whether the buyer has inspected the goods or even arrived at the terminal. If the goods are stolen from the terminal yard an hour after unloading, the buyer still owes the contract price and has to pursue any recovery through its own insurance or against the terminal operator. Document the time unloading finishes; that timestamp decides whose insurance applies.
What the Buyer Handles After Unloading
Once the goods are unloaded, the buyer takes over. That means filing the import customs declaration, paying import duties and taxes, and obtaining any permits the destination country requires.4International Trade Administration. Know Your Incoterms Duty rates depend on the product’s classification under the Harmonized Tariff Schedule and any applicable trade agreements.6U.S. Customs and Border Protection. Customs Duty Information If paperwork is missing and the goods sit at the port, demurrage and storage charges are on the buyer.
Onward transport from the terminal to a warehouse, distribution center, or storefront is also the buyer’s cost. The seller’s involvement ends when unloading is complete.
If the buyer never collects the goods, the situation swings against the buyer. Risk of loss transfers from the agreed delivery date or the end of an agreed delivery period, even if the buyer never physically takes possession. Terminal storage fees run to the buyer’s account, and the seller has no continuing duty to arrange care or security for the goods.
Insurance Is Optional but Practically Needed
Neither DAT nor DPU requires the seller or the buyer to buy cargo insurance. That is a real gap: unlike CIP, which obliges the seller to carry insurance to a specified minimum, this rule leaves coverage entirely up to the parties.
The exposure is heavy on both sides. A seller shipping high-value goods across an ocean without marine cargo insurance is one storm away from absorbing the full loss. The buyer carries the same kind of exposure from the unloading moment onward. The sensible pattern is for the seller to insure the goods through unloading and for the buyer to pick up coverage from that point. Say so in the contract so there is no gap or overlap.
DPU vs DAP: One Question Decides It
The most common mistake with these rules is confusing DPU with DAP (Delivered at Place). The whole difference is who unloads the goods. Under DPU, the seller unloads. Under DAP, the buyer unloads.5ICC Academy. Incoterms 2020 – DPU or DAP Otherwise the two rules are nearly identical: the seller arranges and pays for transport to the named place, handles export clearance, and bears risk until delivery.
That one difference has real consequences. Unloading takes equipment, labor, and liability. If the seller picks DPU but has no way to arrange a forklift or crane at the buyer’s inland warehouse, the seller is stuck with an obligation it cannot easily perform. DAP fits better there, because the buyer controls the destination facility. DPU works best when delivery is to a commercial terminal or port where the seller can hire local stevedores or use the terminal’s own equipment.
Terminal Handling Charges and Contract Drafting
Terminal handling charges (THC) are a recurring source of billing disputes under this rule. THC covers moving containers from the arriving ship or vehicle to the stack and then to the buyer’s collection point. Because the seller pays all costs through unloading, destination THC should fall on the seller. Shipping lines, though, sometimes bundle destination THC into the freight invoice and other times bill it separately to the buyer. Address THC explicitly in the contract rather than assuming the Incoterms rule settles it.
A well-drafted clause names three things: the Incoterms rule, the exact place of delivery, and the edition year. “DPU, Gate 4, Port of Long Beach Terminal, Incoterms 2020” leaves far less room for argument than “DPU Long Beach.” Beyond that, spell out who pays destination THC, what counts as adequate advance notice of arrival, and how long the buyer has to collect the goods before storage costs begin. Those details sit outside the Incoterms rule itself but decide how the deal actually runs when something slips.