The term “delivered ex quay” is utilised in business contracts for the purchase and sale of goods. It denotes that the seller is accountable for clearing the goods for export, covering the transportation expenses to the port designated by the buyer, and positioning the goods adjacent to the ship at the destination port. The seller’s responsibility concludes once the goods are discharged from the ship at the destination port, and the buyer assumes the risk of loss from that moment forward. This term is exclusively employed when goods are transported via sea or inland waterway.
Delivered ex quay is a contractual term that defines the obligations of both the buyer and seller in terms of the delivery, payment, and risk of loss of goods. Under this arrangement, the seller is responsible for ensuring that the goods are cleared for export, covering the transportation costs to the buyer’s specified port, and placing the goods next to the ship at the destination port. The delivery is considered complete once the goods are unloaded at the destination port, and at that point, the risk of loss is transferred to the buyer. It is important to note that this term is exclusively applicable to goods transported by sea or inland waterway. For instance, let’s consider a scenario where a Chinese company agrees to sell 1000 units of a product to a US company. The contract stipulates that the delivery will be “delivered ex quay” to the port of Los Angeles. In this case, the Chinese company bears the responsibility of clearing the goods for export, covering the transportation costs to the port of Los Angeles, and placing the goods next to the ship. Once the goods are unloaded at the port of Los Angeles, the delivery is deemed complete, and the US company assumes the risk of loss. To summarize, the term “delivered ex quay” outlines the respective obligations of the Chinese company as the seller and the US company as the buyer. The Chinese company is accountable for all expenses associated with transporting the goods to the port of Los Angeles and ensuring their placement next to the ship. Once the goods are unloaded at the port, the delivery is considered complete, and the US company takes on the risk of loss. It is worth noting that this term is exclusively used for goods transported by sea or inland waterway, as it specifically refers to the placement of goods next to a ship in a port.
“Delivered Ex Quay” (DEQ) is a trade term used in international shipping contracts. It refers to a situation where the seller is responsible for delivering the goods to the buyer at the quay (dock) at the destination port. The buyer is responsible for all costs and risks associated with unloading the goods from the ship.
Under DEQ, the seller is responsible for delivering the goods to the quay at the destination port. This includes arranging transportation, export clearance, and loading the goods onto the ship. The seller must also provide the necessary documents to the buyer, such as the bill of lading and commercial invoice.
The buyer’s obligations under DEQ include unloading the goods from the ship, clearing customs, and arranging transportation from the quay to the final destination. The buyer is also responsible for any costs and risks associated with the goods from the moment they are unloaded at the quay.
The risk of loss or damage to the goods transfers from the seller to the buyer at the moment the goods are unloaded at the quay. Therefore, the buyer bears the risk from that point onwards.
No, under DEQ, the buyer is responsible for arranging transportation from the quay to the final destination. The seller’s responsibility ends once the goods are unloaded at the quay.
If the goods are damaged during unloading at the quay, the buyer bears the risk and is responsible for any resulting costs. However, if the damage is due to the seller’s negligence or failure to properly package the goods, the buyer may have a claim against the seller for compensation.
The buyer generally cannot refuse to accept the goods at the quay unless there is a valid reason, such as non-compliance with the agreed specifications or a breach of contract by the seller. If the buyer refuses to accept the goods without a valid reason, they may be liable for breach of contract.
No, the seller is not responsible for delays in unloading the goods at the quay. Once the goods are unloaded, the buyer assumes responsibility for any delays or issues that may arise.
Yes, the buyer can claim insurance for the goods under DEQ if they have obtained appropriate insurance coverage. It is advisable for the buyer to arrange insurance to protect against any potential loss or damage during transportation and unloading.
The specific legal requirements and regulations that apply to DEQ shipments may vary depending on the countries involved. It is important for both the buyer and seller to familiarize themselves with the applicable laws, customs regulations, and trade practices of the destination country to ensure compliance and smooth execution of the transaction.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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