What Does Delivered Ex Quay Mean
Incoterms are much abbreviated! Nowadays, there are so many commercial terms used mostly in international business. But, how many of them are we well conversant with? One of the popular commercial terms is Delivered Ex Quay or DEQ. What does it mean or what is the essence of this incoterm? No problem. Today, I am explaining the basic idea on this key commercial term for your easy understanding.
Delivered Ex Quay (Duty paid) (..named port of destination). Delivered Ex Quay (DEQ) means that the seller delivers when the goods replaced at disposal of the buyer not cleared for import on the quay (what at the named port of destination. The seller has to bear costs and risks involved in bringing the goods to the named port of destination and discharging the goods on the quay (wharf). The DEQ term requires the buyer to clear the goods or on the quay import and to pay for all formalities, duties, taxes and other charges upon import. (Incoterms 2017)
Delivered Ex Quay (DEQ) is in effect an extension of the Delivered Ex Ship contract. The seller has to bear the additional risks and cost to bring the goods ashore and make them available to the buyer on the wharf at the destination named in the sale contract. That means, he has to prepare the goods, pack them, arrange for checking operations, transport and insure them. The risk of loss or damage to the goods passes to the buyer from the time the goods are placed at the quay.
The buyer’s duty is to take delivery of the goods from the quay or wharf at the port of destination. The buyer has to obtain the import license, and bear the cost of any import duty, cost of customs clearance and any other taxes to be paid on imports. If the parties wish to include in the seller’s obligation all or part of the costs payable upon import of the goods, this should be made clear by adding, explicit wording to this effect in the contract of sale.
Documents to be submitted by the seller under Delivered Ex Quay (DEQ) contracts are:
(a) Delivery order,
(b) Invoice, and
(c) Other documents as required by buyer.