What is EXQ (Ex Quay) and How Does It Impact International Shipping?

EXQ, or Ex Quay, is a less common but significant Incoterm used in international trade, referring to the delivery of goods from the dock or quay at the port of destination. This article will delve into the specifics of Ex Quay, explaining its operation, benefits, and challenges, and addressing common questions about its use in global trade logistics.

What is Ex Quay (EXQ)?

Ex Quay (EXQ) is an Incoterm where the seller delivers the goods once they are made available, unloaded from the arriving means of transport and placed at the disposal of the buyer on the quay (dock) at the named port of destination. EXQ terms can be agreed upon with duties paid (EXQ [Duty Paid]) or without duties paid (EXQ [Duty Unpaid]). The seller covers all the risks and costs until the goods are unloaded at the port.

How does EXQ operate in international trade?

Under EXQ, the responsibility for the goods, including transportation, insurance, and unloading costs, transfers from the seller to the buyer directly at the quay of the destination port. The seller is responsible for all charges and risks involved in bringing the goods to the quay and unloading them. Once the goods are on the quay, the buyer assumes responsibility for any import duties, taxes, and further transportation and handling.

What are the key responsibilities under EXQ?

1. Seller’s Responsibilities:

• Arranging and paying for transportation to the destination port.

• Handling and paying for the unloading of the goods from the ship.

• Assuming all risks until the goods are unloaded at the quay.

2. Buyer’s Responsibilities:

• Assuming all risks and responsibilities from the moment the goods are available on the quay.

• Handling all customs duties, taxes, and further transportation from the quay to the final destination.

What are the advantages of using EXQ?

1. Clarity of Transfer Point: Clear demarcation of responsibilities and risks at a specific physical location (the quay).

2. Control for Buyers: Buyers have control over the import process, including customs clearance and further inland transportation.

3. Cost Management: Sellers have a clear endpoint for their cost and risk responsibilities.

What challenges are associated with EXQ?

• Complexity in Coordination: Requires precise coordination for the transfer of responsibilities at the quay, which can be complex due to port operations.

• Potential Additional Costs: Buyers may face additional costs related to port handling and demurrage if the goods are not cleared in time.

• Risk at Port: Goods are exposed to potential risks and delays while waiting on the quay, which might require additional insurance coverage.

How can businesses effectively use EXQ in their shipping strategies?

Businesses considering EXQ should be well-versed in the operations of the destination port and familiar with local customs regulations. Both sellers and buyers must coordinate closely to ensure a smooth transfer of goods and responsibilities. It's also crucial for buyers to arrange timely customs clearance to avoid extra charges.

Understanding EXQ (Ex Quay) is vital for companies involved in international trade that require precise control over the handling and cost management of goods once they reach the destination port. This term provides a clear framework for transactions where the transfer of responsibilities is tied to a well-defined port location, aiding in logistical planning and risk management.