Legal Definitions - DEQ

DEQ stands for DELIVERED EX QUAY.

This is an international commercial term (Incoterm) used in contracts for the sale of goods, particularly in international shipping. It means that the seller is responsible for delivering the goods to the buyer on the quay (dock or pier) at the named port of destination. Under DEQ terms, the seller covers all costs and risks associated with transporting the goods to the destination port and unloading them onto the quay. Once the goods are on the quay, the risk and cost responsibility transfers to the buyer, who then handles customs clearance, import duties, and any onward transportation from the port.

Here are some examples to illustrate DEQ:

• Example 1: Heavy Machinery Shipment

  A German manufacturer sells a specialized piece of industrial machinery to a factory in Argentina. Their contract specifies "DEQ, Port of Buenos Aires." This means the German seller is responsible for arranging and paying for the shipment of the machinery from Germany to Buenos Aires, including all freight charges and the cost of unloading the machinery from the vessel onto the designated quay at the Port of Buenos Aires. The seller also bears all risks of loss or damage to the machinery until it is safely on the quay. Once the machinery is on the quay, the Argentine factory (the buyer) becomes responsible for customs clearance, paying import duties, and arranging for the machinery's transport from the port to their factory.

• Example 2: Bulk Agricultural Products

  An American grain exporter sells a large volume of soybeans to a food processing company in Vietnam, with the terms "DEQ, Port of Ho Chi Minh City." The American exporter must arrange for the soybeans to be shipped to Vietnam, cover all shipping costs, and ensure the soybeans are unloaded from the ship and placed on the quay at Ho Chi Minh City. All risks, such as spoilage or damage during transit and unloading, remain with the American exporter until the soybeans are on the quay. From that point, the Vietnamese company takes over, handling the import procedures, paying any tariffs, and arranging for the soybeans to be moved from the port to their processing facility.

• Example 3: Consumer Electronics Container

  A South Korean electronics company sells a container full of televisions to a retail chain in Canada. The sales agreement states "DEQ, Port of Vancouver." The South Korean seller is obligated to transport the container of televisions to Vancouver, pay for the ocean freight, and cover the cost of unloading the container from the ship onto the quay at the Port of Vancouver. The seller also bears the risk of any damage or loss to the televisions during this journey and unloading process. Once the container is on the quay, the Canadian retail chain assumes responsibility for clearing the goods through Canadian customs, paying applicable duties and taxes, and arranging for the container to be transported from the port to their distribution warehouse.