Understanding Delivered Ex Ship or DES: Seller and Buyer Responsibilities
Definition & meaning
Delivered Ex Ship (DES) is a shipping term indicating that the seller is responsible for delivering goods to a specified port of destination. The seller's obligations end once the goods are made available to the buyer on board the ship, but they are not cleared for import. This means that the seller must handle all costs and risks associated with transporting the goods to the designated port. The seller remains liable for the goods until they are officially delivered to the buyer.
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DES is commonly used in international trade and shipping contracts. It is particularly relevant in the context of sales agreements and logistics. Understanding this term is essential for parties involved in importing and exporting goods, as it outlines the responsibilities of the seller and buyer. Users can manage related forms and agreements through resources like US Legal Forms, which provide templates drafted by experienced 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 Europe under a DES agreement. The seller must arrange for the machinery to be transported to the port in Europe and loaded onto the ship. Until the machinery is on board, the seller is responsible for any damages or costs incurred during transit.
Example 2: A seller in Asia agrees to ship textiles to a retailer in North America. The seller must ensure the textiles are delivered to the designated port and loaded onto the ship. The seller is liable for any issues until the textiles are on board. (hypothetical example)
Comparison with Related Terms
Term
Definition
Key Differences
Free on Board (FOB)
The seller delivers goods on board the ship, but the buyer assumes risk once the goods are loaded.
Under FOB, the buyer takes on risk earlier than under DES.
Cost, Insurance, and Freight (CIF)
The seller pays for the cost of goods, insurance, and freight to the destination port.
CIF includes insurance and freight costs, while DES does not.
Common Misunderstandings
What to Do If This Term Applies to You
If you are involved in a transaction that uses the DES term, ensure you understand your responsibilities as either the buyer or seller. Review your shipping agreements carefully. For assistance, consider using US Legal Forms to find templates that can help you draft or manage your shipping contracts. If the situation is complex, seeking professional legal advice may be beneficial.
Quick Facts
Seller's responsibility: Until goods are delivered on board.
Costs borne by seller: All costs until delivery.
Import clearance: Not included in DES.
Commonly used in: International trade agreements.
Key Takeaways
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FAQs
Delivered Ex Ship (DES) means the seller is responsible for delivering goods to a specified port, and their obligation ends once the goods are on board the ship.
The seller bears all costs and risks until the goods are delivered on board the ship.
No, goods delivered under DES are not cleared for import.
