DAP & DAT in Incoterms 2010


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Query from O.:

Dear T.O,

How's the Orlando Meeting? Anything interesting? Just wish more Chinese participate in such conference in depth.

I am writing to you reminding you of the questions I once asked you. Please read previous email below. Moreover, I am wondering whether DAP and DAT are necessary. To me, I would think either DAP or DAT is enough. The only difference between the two terms seems the unloading charges. How do you think of it?

Look forward to your reply.

Best wishes

O.


Response from T.O. Lee:

Dear O.,

Please excuse me for delays in answering your queries. I am a very busy consultant with many pending cases for me to handle.

In principle I agree with your comments on the difference between DAT and DAP.

However, the provisions of following obligations are different.

A3(a), A4; A6;

B6(b); B6(d);

In theory, we may live with DAP only. If we need the seller to unload the goods at destination or an agreed point or terminal, we may change the provisions of A4. But we also need to change A3(a); A6, B6(b) and B6(d) to be consistent. Hence to avoid confusions, it is better to add DAT and this is more user friendly. If you look at the market place, you will find out that 90% of the traders use FOB incorrectly. They actually mean EXW delivered.

I propose to add C&I but my proposal is not accepted. A seller trading on open account has the need to insure the goods to avoid loss in case the buyer refuse to take up the goods on arrival and the goods are either stolen on arrival or loss during transits.

Best regards,

T. O.

 
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