Category D. Shipping - Foreign trade activities

Category D. Shipping

DAT - Delivered at Terminal (... named terminal of destination)/Sending at the terminal (... terminal name)

DAT is a new term introduced in Incoterms 2010 (Incoterms-2010) and effective from January 1, 2011.

The term DAT can be used regardless of the chosen mode of transport, as well as when using more than one mode of transport.

DAT - Delivered at Terminal ("Delivery on Terminal") means that the seller delivers when the goods unloaded from the arrived vehicle are placed at the disposal of the buyer at the agreed terminal in the named port or at the place of destination.

Terminal includes any place, closed or not, such as a quay, warehouse, container yard or road, rail or air cargo terminal. The seller bears all risks associated with the delivery of the goods and their unloading at the terminal in the named port or at the place of destination.

It is recommended that the parties most accurately identify the terminal and, if possible, a specific point on the terminal at the agreed port or destination, since the seller is at the risk of this point. The seller is recommended to provide transportation contracts in which this choice is accurately reflected.

If the parties intend to entrust the seller with the risks and costs of transporting and moving goods from the terminal to a different location, it is advisable to use the terms DAP and DDP.

DAT requires the seller to perform customs formalities for export, if any. However, the seller is not required to perform customs formalities for importation, pay import duties or perform other customs formalities upon importation.

Responsibilities of the seller:

• in accordance with the contract of sale, provide the buyer with the goods, commercial invoice, as well as any other proof of the conformity of the goods to the terms of the contract of sale, which may be required by the terms of the contract;

• any document can be replaced by an equivalent electronic record or procedure, if agreed by the parties or is normal;

• If necessary, at your own expense and at your own risk, obtain an export license or other official authorization and perform all customs formalities necessary for the export of the goods and their transportation through any country prior to the delivery of the goods;

• at his own expense to conclude a contract of carriage of goods to the named terminal in the agreed port or place of destination. If a particular terminal is not agreed or can not be determined based on practice, the seller can choose the most suitable terminal for his purposes in the agreed port or at the destination;

• the seller has no obligation to the buyer to enter into an insurance contract. However, the seller must provide the buyer, at his request, at his risk and at his expense (subject to the availability of costs), the information necessary for the buyer to obtain insurance;

• unload the goods from the arrived vehicle and place it at the disposal of the buyer by providing at the named terminal, at the port or at the place of destination on the agreed date or period;

• the seller bears all risks of loss or damage to the goods before delivery;

• pay:

a) all costs relating to the goods, until the moment of delivery, except for the costs paid by the buyer;

b) if required, the costs associated with the implementation of customs formalities for export, payment of all duties, taxes and other charges levied upon exportation, as well as transportation costs through any country prior to delivery;

• give the buyer a proper notice allowing him to take the measures normally necessary to enable him to take delivery of the goods;

• at his own expense to provide the buyer with a document that allows him to take delivery of the goods;

• bear all costs associated with the inspection of the goods (quality control, measurement, weighing, counting) required for the delivery of goods, as well as the costs of inspecting the goods before shipment, which is prescribed by the authorities of the country of export;

• at its own expense to ensure the packaging of the goods, except in cases where it is customary in the given trade branch to ship the goods specified in the contract without packaging. The seller may package the goods in the manner necessary to transport it, unless the buyer, before concluding the contract, notifies the seller of specific packaging requirements;

• the labeling of the packaged goods must be carried out properly;

• if necessary, promptly provide the buyer or assist him in obtaining, at the request of the buyer, at his risk and at his expense, documents and information, including security information that the buyer may need to import the goods and/or his transportation to the final destination;

• reimburse the buyer all costs and fees incurred by the buyer when receiving or providing assistance in obtaining documents and information.

The buyer is obliged:

• pay the price of the goods, as provided in the contract of sale;

• if necessary, obtain at your own risk and expense, an import license or other official authorization and perform all customs formalities necessary for the importation of the goods;

• the buyer has no obligation to the seller to conclude the contract of carriage;

• the buyer has no obligation to the seller to conclude an insurance contract. However, the buyer must provide the seller, upon his request, with the information necessary for the conclusion of the insurance contract;

• take delivery of the goods;

• the buyer bears all risks of loss or damage to the goods from the moment of delivery;

• if:

a) the buyer does not perform his duties, he carries all the risks of loss or damage of the goods associated with it;

b) or the buyer does not provide notice, he bears all risks of loss or damage to the goods, beginning with the agreed date or from the date when the agreed period of delivery expired, provided that the goods were clearly individualized as the goods being the subject of the contract;

• pay:

a) all costs related to the product from the moment of its delivery;

b) all additional costs incurred by the seller, if the buyer has not fulfilled his obligations or the ns have given notice, provided that the goods were clearly individualized as the goods being the subject of the contract;

c) if necessary, the costs of customs formalities, as well as the payment of taxes, duties and other charges payable upon importation of goods;

• since the buyer is given the right to determine the date within the agreed period and (or) the point of delivery at the named place of destination, he is obliged to give the seller a proper notice thereof;

• Accept the delivery document;

• bear the costs of compulsory inspection of the goods before shipment, except for cases when such inspection is carried out at the request of the authorities of the country of export;

• to inform the seller in a timely manner about the requirements for security information;

• reimburse the seller for expenses incurred and fees to provide or assist in obtaining documents and information;

• if necessary, provide the seller in a timely manner or assist the seller, at the request of the seller, at his request and at his expense, of any documents and information, including security information that the seller may need to transport, export, and for his transportation through any country.

DAP - Delivered at Place/Delivered at point (at destination)

This term can be used regardless of the chosen mode of transport, as well as using more than one mode of transport.

Delivered at Place ("Supply in item") means that the seller delivers when the goods are placed at the disposal of the buyer on the arrived vehicle ready for unloading at the agreed destination. The seller pesetas all the risks associated with the delivery of the goods to the named place.

It is recommended that the parties most accurately determine the point at the agreed destination, since the seller is responsible for the risks to this point. The seller is recommended to provide transportation contracts, which accurately reflects this choice. If the seller under his contract for transporting pesetas discharges at an agreed destination, the seller is not entitled to require the buyer to reimburse such expenses, unless otherwise agreed by the parties.

DAP requires the seller to perform customs formalities for export, if any. However, the seller is not required to perform customs formalities for importation, pay import duties or perform other customs formalities upon importation. If the parties intend to entrust the seller with the customs formalities for importation, payment of any import duties and other customs formalities for import, it is advisable to use the term DDP, which will be discussed below after describing the duties of the seller and the buyer in the term DAP.

Seller's responsibilities for this terminal:

• must provide goods, a commercial invoice, as well as any other proof of the conformity of the goods to the terms of the contract of sale, which may be required by the terms of the contract, in accordance with the contract of sale;

• any document can be replaced by an equivalent electronic record or procedure, if agreed by the parties or is normal;

• if necessary, at its own expense and risk, obtain an export license or other official authorization and perform all customs formalities necessary for the export of the goods and their transportation through any country prior to the delivery of the goods;

• is obliged at his own expense to conclude a contract of carriage of the goods to the named place of destination or to the agreed point, if such exists at the named place of destination. If a particular item is not agreed or can not be determined based on practice, the seller can choose the most appropriate item for his purpose in the named destination;

• the seller has no obligation to the buyer to enter into an insurance contract. However, the seller must provide the buyer, at his request, at his risk and at his expense (in the presence of costs) information necessary for the buyer to obtain insurance;

• must deliver the goods by placing it at the disposal of the buyer on the arriving vehicle ready for unloading at the agreed point, if any, at the named place of destination on the agreed date or period;

• bears all risks of loss or damage to the goods before delivery. In this case, the seller must pay:

a) all costs relating to the goods, until the moment of delivery, except for the costs paid by the buyer;

b) any unloading costs at the place of destination that are covered under the contract of carriage to the seller;

c) if required, the costs associated with the execution of customs formalities levied upon exportation, payment of all duties, taxes and other charges levied upon exportation of goods, as well as costs of transportation through any country prior to delivery;

• must provide the buyer with a proper notice allowing the buyer to take the measures normally necessary to enable him to take delivery of the goods;

• at his own expense to provide the buyer with a document that allows him to take delivery of the goods;

• bear all costs associated with the inspection of the goods (quality control, measurement, weighing, counting) required for the delivery of goods, as well as the costs of inspecting the goods before shipment, which is prescribed by the authorities of the country of export;

• at its own expense to ensure the packaging of the goods, except when it is customary in the given trade branch to ship the goods specified in the contract without packaging;

• It can pack the goods in the manner necessary to transport it, unless the buyer, prior to the conclusion of the contract, notifies the seller of specific packaging requirements;

• The labeling of the packaged goods must be carried out properly. If required, the seller must promptly provide the buyer or assist him in obtaining, at the request of the buyer, at his risk and at his expense, documents and information, including security information that the buyer may need to import the goods and (or) transport it to final destination;

• reimburse the buyer all costs and fees incurred by the buyer when receiving or providing assistance in obtaining documents and information.

The buyer is obliged:

• pay the price of the goods, as provided in the contract of sale;

• if necessary, is obliged to receive at your own risk and expense an import license or other official authorization and perform all customs formalities necessary for the importation of the goods;

• the buyer has no obligation to the seller to conclude the contract of carriage;

• the buyer has no obligation to the seller to conclude an insurance contract. However, the buyer must provide the seller, upon his request, with the information necessary for the conclusion of the insurance contract;

• take delivery of the goods;

• bear all risks of loss or damage to the goods from the moment of delivery;

• if the buyer does not perform his duties, he pesete all the risks associated with this loss of or damage to the goods; or the buyer does not fulfill his duty to provide notice, he bears all risks of loss or damage to the goods, beginning with the agreed date or from the date when the agreed period of delivery expired, provided that the goods were clearly individualized as the goods being the subject of the contract;

• pay all costs related to the product from the moment of its delivery; all discharge costs necessary to take the goods from the arriving vehicle at the named place of destination, unless such costs are imposed on the seller under the contract of carriage; any additional costs incurred by the seller as a result of the buyer's failure to perform the obligations or failure to provide notice, provided that the goods were clearly individualized as the goods that are the subject of the contract; if necessary, the costs of customs formalities, as well as the payment of taxes, duties and other charges payable upon the importation of goods;

• since the buyer is given the right to determine the date within the agreed period and (or) the point of delivery at the named place of destination, he is obliged to give the seller a proper notice thereof;

- the buyer must accept the delivery document;

- the buyer must bear the costs of compulsory inspection of the goods before shipment, except for cases when such inspection is carried out at the request of the authorities of the country of export;

- the buyer must inform the seller in a timely manner about the requirements for information and security;

- the buyer is obliged to reimburse the seller for the costs and fees incurred to provide or assist in obtaining documents and information;

- if required, the buyer must promptly provide the seller or assist in obtaining the seller, at the request of the seller, at his risk and at his expense, documents and information, including security information that may be required by the seller for transportation, exportation of goods and its transportation through any country.

DDP - Delivered Duty Paid (... named place of destination)/Dow pay (... named place of destination)

The term Delivered fee payment means that the seller will provide the goods that have been cleared and unloaded from the arriving means of transport at the disposal of the buyer at the named place of destination. The seller must bear all costs and risks associated with the transportation of the goods, including, where applicable, any charges for importation into the country of destination (the term "fees" here means liability and risks for customs clearance, as well as for payment of customs formalities, customs duties, taxes and other charges).

This term can not be applied if the seller, directly or indirectly, can not obtain an import license.

If the parties have agreed to exclude some of the costs that are payable on import (such as value added tax - VAT) from the seller, this should be clearly defined in the contract of sale.

This term can be used regardless of the mode of transport.

Responsibilities of the seller:

• in accordance with the contract of sale, provide the buyer with the goods and commercial invoice or equivalent message, as well as any other evidence of compliance that may be required by the terms of the contract of sale;

• at their own expense and at their own risk, obtain any export license or other official certificate or other documents, and perform, if necessary, all customs formalities required for the export and import of the goods and for their transit through third countries;

• to conclude at his own expense a contract of carriage of goods to the named place of destination. If a special item is not agreed or is not determined by the practice of such supplies, the seller may choose the most suitable item for him at the named place of destination; to place the goods at the disposal of the buyer or another person indicated by the buyer in the unloaded form on any arriving vehicle at the named place of destination, on the agreed date or within the agreed time limit;

• deliver the goods subject to the contract and bear all risks or damages of the goods until the moment of delivery;

• bear all costs associated with the goods, until the moment of delivery;

• pay all costs associated with the implementation of customs formalities for export and import, as well as other duties, taxes and other charges payable upon export and import of goods and their transit through third countries prior to delivery;

• notify the buyer of the shipment properly, and also send the buyer other notifications required for him to carry out the usually necessary measures to take delivery of the goods;

• provide the buyer at his own expense with a diversion order and (or) a normal transport document (for example, a negotiable bill of lading, a non-negotiable sea waybill, proof of inland waterway transport, a railway or road bill or a multimodal consignment note) that may be required the buyer to take delivery of the goods;

• if the seller and buyer agreed on the use of electronic communications, documents may be replaced by equivalent electronic messages - EDI;

• bear the costs associated with checking the goods (for example, checking the quality, size, weight, quantity) required for the delivery of the goods;

• at its own expense to provide packaging (except in cases where it is customary in this branch of trade to supply a contracted product without packaging) necessary for the delivery of the goods. Packaging must be properly marked;

• bear all costs and pay fees associated with obtaining documents or equivalent electronic messages, as well as reimburse all costs incurred by the latter as a result of assistance to him;

• provide the buyer with all the information necessary for the implementation of additional insurance.

The buyer is obliged:

• pay the price of the goods provided by the contract of sale;

• at the request of the seller, provide the latter at his own expense and at his risk full assistance in obtaining, if necessary, any import license or other official certificate required for the importation of the goods;

• take delivery of the goods;

• bear all risks, losses or damages of the goods from the moment of delivery;

• bear all additional risks, losses or damages caused to the goods;

• bear all risks, losses or damages of the goods from the expiry of the agreed date or the end of the agreed delivery date. The condition, however, is the proper conformity of the goods to the contract;

• bear all costs associated with the goods, from the moment of delivery;

• Accept the required delivery order or transport document;

• bear the costs associated with pre-shipment inspection of the goods, except when such inspection is required by the authorities of the country of export;

• but the request of the seller to provide the latter at his expense and at his risk full assistance in obtaining any documents or equivalent electronic messages issued or transmitted in the country of importation that the seller may require to provide the goods so at the disposal of the buyer.

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