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Understanding Delivered Ex Quay or DEQ: Key Legal Insights
Definition & Meaning
Delivered Ex Quay (DEQ) is a term used in international sales contracts that outlines the responsibilities of the seller and buyer regarding the delivery of goods. Under DEQ, the seller fulfills their obligation once the goods are made available to the buyer at the quay or wharf in the designated port of destination. At this point, the goods are not yet cleared for import, which means the buyer is responsible for clearing them through customs. The transfer of costs and risks occurs when the goods are delivered at the quay. Depending on the agreement, DEQ can be marked as duty paid or unpaid, affecting the responsibilities for import duties.
Table of content
Legal Use & context
DEQ is commonly used in international trade agreements and contracts. It is essential in defining the point at which the seller's obligations end and the buyer's obligations begin. This term is relevant in areas of law related to commercial transactions, trade regulations, and customs law. Users can manage DEQ-related agreements using legal templates available through resources like US Legal Forms, which provide ready-to-use contracts drafted by qualified attorneys.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A company in the United States sells machinery to a buyer in France. The seller ships the machinery to the port of Le Havre, where it is delivered on the quay. The buyer must then clear the machinery through French customs and pay any applicable duties. This scenario illustrates the DEQ terms in action.
Example 2: A seller ships textiles to a buyer in Germany, marking the DEQ as duty unpaid. The buyer is responsible for all import duties once the goods arrive at the quay in Hamburg. (hypothetical example)
Comparison with related terms
Term
Definition
Key Differences
Delivered Duty Paid (DDP)
The seller is responsible for all costs, including import duties, until the goods reach the buyer's location.
In DDP, the seller bears all costs and risks until delivery, while in DEQ, the buyer assumes responsibility at the quay.
Free on Board (FOB)
The seller delivers goods on board a vessel designated by the buyer, after which the buyer assumes risks and costs.
FOB transfers risk once the goods are on the vessel, while DEQ transfers risk once goods are on the quay.
Common misunderstandings
What to do if this term applies to you
If you are involved in a transaction using DEQ terms, ensure you understand your responsibilities as either the seller or buyer. If you are the buyer, prepare to handle customs clearance and any associated costs. You can explore US Legal Forms for templates to draft or review your contracts related to DEQ. If the situation is complex, consider consulting a legal professional for tailored advice.
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Costs and risks transfer to the buyer upon delivery.
Can be marked as duty paid or unpaid.
Key takeaways
Frequently asked questions
DEQ stands for Delivered Ex Quay, indicating the seller's obligation ends when goods are delivered at the quay, and the buyer is responsible for customs clearance.
In DEQ, the buyer is responsible for customs clearance and duties, while in DDP, the seller covers all costs until delivery.
Yes, DEQ can apply to various goods in international trade, but it's essential to specify the terms clearly in the contract.