DEG: Delivered Ex Quay
When it comes to international trade, there are many terms that can cause confusions resulting in undesirable practical consequences. One such term that we will discuss in this article is delivered ex quay, or DEQ. After reading this article, you will have a thorough understanding of the term in the context of international sales contracts.
DEQ: An Overview
Delivered ex quay (DEQ) is a term that is used in international trade. It is a contract specification that specifies that the seller will be responsible for delivering products to the wharf. DEQ may be recorded as either duty paid or unpaid. In case the DEQ is marked as duty paid, the seller must pay customs duty and taxes associated with the goods. For DEQ unpaid, the buyer will be responsible for paying the duties and other associated costs.
Delivered ex-quay can be used only if the seller is directly or indirectly able to get an import license. Also, the term is applicable for inland or sea waterway transport.
Understanding Delivered Ex Quay — DEQ
With a DEQ contract, the seller is responsible for the provision of goods and other required conformity evidence. The seller must fulfill all the legal formalities that are required for transporting the goods to the quay at the port of destination mentioned in the contract. It's important for the seller to obtain authorization documents that are required for transit of goods. The goods must be transported to the agreed destination on the date mentioned in the contract.
With DEQ contract, all risks related to the goods are borne by the seller. The risks that include damage to and loss of goods is borne by the seller until the goods are delivered to the intended destination.
The seller is also required to provide notice to the buyer about the time of arrival of the goods. Moreover, the seller must provide any other notices that are required for the buyer to take measures to receive the goods from the port. The seller must provide the buyer with delivery order and other necessary transport documents that will enable the buyer to take goods held at the quay, including non-negotiable sea way bill, a negotiable bill of landing, multimodel transport document and inland waterway document.
DEQ is an important term that relates to the international sales contract. The seller bears all expenses that relate to the transfer of goods to the quay. All the legal formalities required for transporting the goods to the wharf at the port destination must be fulfilled by the seller.
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