What is DEQ (Delivered Ex Quay)?

1.What is DEQ (Delivered Ex Quay)?

DEQ, or Delivered Ex Quay, is an international trade term that specifies the seller's responsibility for delivering goods to the buyer at the designated quay, wharf, or dock at the named port of destination. Under DEQ, the seller bears the risk and costs associated with delivering the goods to the agreed-upon location at the port, including unloading expenses.

2.The Purpose of DEQ (Delivered Ex Quay)

DEQ serves several purposes in international trade transactions. Firstly, it provides clarity and certainty regarding the seller's obligations and responsibilities up to the point of unloading at the port. This clarity helps both parties to plan and budget effectively for the transaction. Secondly, DEQ allows buyers to take control of the goods once they are offloaded at the quay, enabling them to arrange customs clearance and onward transportation according to their preferences and requirements. Additionally, DEQ can help minimize risks for both parties by clearly defining the transfer of responsibility at a specific point in the shipment process.

3.Operational Mechanisms of DEQ (Delivered Ex Quay)

In a DEQ transaction, the seller is responsible for delivering the goods to the agreed-upon quay at the named port of destination. This involves organizing transportation to the port, covering export customs formalities, and bearing all risks and costs until the goods are unloaded at the quay. Upon arrival, the seller must arrange for the goods to be unloaded from the vessel and delivered to the quay, where they will be ready for the buyer to take possession. Once the goods are offloaded at the quay, the responsibility transfers to the buyer, who assumes control over customs clearance, payment of duties and taxes, and arranging onward transportation from the port.

4.Considerations and Precautions for DEQ (Delivered Ex Quay)

Several considerations and precautions should be taken into account when using DEQ in international trade transactions. Firstly, it is essential for both parties to clearly define the named port of destination and the specific quay where the goods will be delivered to avoid any confusion or disputes. Additionally, clear communication and coordination between the buyer and seller are crucial to ensure smooth logistics operations, including scheduling of vessel arrivals and quay availability. Importantly, buyers should be aware of their obligations regarding customs clearance and onward transportation from the quay to the final destination to avoid delays or additional costs.

DEQ (Delivered Ex Quay) is a valuable Incoterm that provides clarity and certainty in international trade transactions by defining the seller's responsibility for delivering goods to the designated quay at the named port of destination. By understanding the operational mechanisms and considerations associated with DEQ, businesses can effectively manage their logistics and minimize risks in their global trade transactions.