Sunday, March 20, 2011

Incoterms 2010 -DAT & DAP

Those of you active in international trade should be well aware that the trade community is now well into the period governed by the new Incoterms 2010. Two new terms stand out along with the replacement of an old standby -DDU. Under the term DAT(Delivered at Terminal), the word "terminal" includes piers, quays, warehouses, container yard or road or rail or air terminal, at the named port or place of destination. The seller is responsible for delivering the goods to the named terminal at the named port or place of destination. The buyer is responsible from that point to effect customs clearance, pay any duties and collect for delivery.

In addition we now have DAP(Delivered at Place) which replaces the old DDU term. Under DAP, the seller bears the responsibility and risks, to deliver the goods to the named place. The buyer is responsible for effecting the customs clearance and any customs duties.

Your company should be incorporating the 2010 terms explicitly into any contracts or purchase orders entered into since Jan 1. Make sure you are specific about delivery points.

What issues or problems if any has your company had to address during this transition?

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