DAT Incoterm: Delivered at Terminal, Now DPU

DAT meaning: delivery after unloading

Under DAT in Incoterms 2010, the seller delivers by unloading the goods from the arriving means of transport and placing them at the buyer’s disposal at the named terminal.

For anyone buying from China, the practical question is where that delivery point sits. A terminal quotation does not automatically include onward delivery to your home, shop or warehouse. Identify the exact terminal and delivery point before comparing prices.

Why was DAT replaced by DPU?

ICC explains that renaming DAT as DPU in Incoterms 2020 emphasises that delivery need not be at a terminal. The older DAT definition already interpreted terminal broadly, including covered and uncovered places. The seller must be able to unload at the chosen destination.

The seller remains responsible for unloading. For a new quotation, specify the destination, precise delivery point and agreed edition. See the DPU guide for its detailed responsibilities.

What should you do if a supplier still quotes DAT?

Ask which edition applies. ICC explains that a contract referring to an earlier edition remains governed by that edition; publication of a newer edition does not automatically replace it.

Before accepting a quote, request either DAT with the named terminal and Incoterms 2010, or DPU with the named destination and Incoterms 2020. A quotation combining DAT with Incoterms 2020 needs clarification.

Request a breakdown covering carriage, destination handling, unloading, collection or onward delivery, and excluded charges. Confirm who arranges unloading equipment, whether the site can receive the shipment, and how clearance or collection delays will be handled.

For an existing contract, seek a written amendment accepted by both parties before changing the rule or edition. Keep the invoice and purchase order consistent with the agreed terms.

Suggested request: Please confirm the intended Incoterms edition, precise delivery point and unloading arrangements. If you propose DPU under Incoterms 2020, please issue a revised quote showing the destination, included charges and exclusions.

Does DPU include customs clearance, tax and insurance?

Under DPU, the seller pays for carriage to the agreed destination and unloading, and normally bears cargo risk until unloaded delivery. Where applicable, the seller handles export clearance and transit clearance outside the importing country; the buyer handles import clearance, duties and import taxes. Failures by the buyer to fulfil clearance or notice obligations can trigger exceptions to the usual risk and cost allocation.

DPU does not oblige the seller to arrange cargo insurance. Ask separately about cover and claims arrangements.

If the seller is not to bear unloading risk and cost, discuss DAP. If you want the seller to handle import clearance and applicable import duties and taxes, examine DDP and confirm that the seller can fulfil those obligations.

Destination customs rules still need a separate check

Incoterms allocate contractual obligations between buyer and seller. Check the destination’s customs requirements separately.

For example, US Customs and Border Protection states that the importer of record remains responsible for the correctness of entry documentation and applicable duties, taxes and fees even when using a customs broker. A DAT or DPU label does not replace those requirements.

UK example: separate the delivered price from customs and VAT values

Suppose your Chinese supplier quotes DPU to a warehouse in Cambridge. Request a breakdown separating transport to the UK place of introduction from onward transport. HMRC includes relevant delivery costs to the place of introduction in the customs value and permits deductions for qualifying UK transport costs where the required distinction and evidence are available.

For import VAT, start with the customs value and include applicable import duties and other import charges, excluding VAT itself, plus relevant incidental expenses to the first UK destination and transport costs to a further UK destination known at importation. Avoid counting costs twice.

A delivered quotation is therefore not automatically the correct customs value or import VAT value. Give your customs agent the quotation, freight breakdown and destination documents.

Compare quotes at the same delivery point

Ask each supplier to quote the same destination and unloading scope, then account for separately payable clearance, taxes and onward costs. Avoid adding charges already included in the quote.

Use the Incoterms comparison chart to compare responsibilities.

Sources

The ICC sources below support the terminology, edition choice and delivery obligations. The HMRC sources support the UK valuation example; the US Customs and Border Protection source supports the importer-of-record example.