"Freight collect" or "Freight Prepaid" should be used with DAT Incoterms 2010?

DAT is a new trade term. It is very normal that most of the exporters or importers do not know the main characteristics of this new trade term in detail.

Freight Prepaid DAT Incoterms 2010
DAT is a trade terms defined in Incoterms 2010. Its long form is "Delivered at Terminal". According to the Incoterms 2010 rules, exporters deliver goods to the importers at the importers country when DAT trade term is chosen.

Are “Freight Collect” and “Freight Prepaid” terms described in Incoterms 2010?

Incoterms is a short form of International Commercial Terms.

They are published by ICC’s Commercial Law and Practice Commission.

Current version of Incoterms is called Incoterms 2010 which has been in force since 01.January.2011.

Incoterms rules are published by ICC in order to define buyers and sellers obligations, costs and risks associated with the transportation and delivery of goods in a very clear way with a global scale.

Incoterms rules can only be applied to transactions in which tangible goods are bought or sold. 
You cannot use Incoterms to sales of intangible goods. Incoterms rules can be used both international and domestic sales.

What Does “Freight Collect” And “Freight Prepaid” Mean on a Bill of Lading?

Various types of transport documents used in international trade.

Bill of lading is a transport document which is used in sea shipments.

A bill of lading is not only a receipt for the delivery of goods, but also contains a contract of carriage.

In traditional form it is also a document of title. Bill of lading as a transport document proves that:
  • the consignor delivers the merchandise to the carrier in good order. 
  • the terms of the carriage is accepted by carrier as indicated on the face of the document. 
  • in a traditional form (negotiable bill of lading) consignor can pass title of goods to another party by means of endorsement or delivery. 
In addition to these information, bill of lading indicates by whom the freight charges will be paid.

“Freight Collect” and “Freight Prepaid” are the terms that used in this regard.