Delivered Ex Ship (DES) Definition
Delivered Ex Ship (DES) is an international trade term that specifies the seller’s responsibility for delivering goods to the buyer at the named port of destination. This term is commonly used in maritime shipping and is one of the 11 Incoterms (International Commercial Terms) defined by the International Chamber of Commerce (ICC).
Under the Delivered Ex Ship (DES) Incoterm, the seller is responsible for all costs and risks associated with delivering the goods to the named port of destination. This includes the costs of transportation, export clearance, and loading the goods onto the vessel. The seller is also responsible for any customs duties or taxes incurred during the export process.
Once the goods are delivered to the port of destination, the risk and responsibility transfer from the seller to the buyer. The buyer is responsible for all costs and risks associated with unloading the goods from the vessel, clearing customs, and transporting the goods to their final destination.
It is important to note that the Delivered Ex Ship (DES) Incoterm only applies to maritime transport. If the goods are to be delivered by another mode of transport, such as air or land, a different Incoterm should be used, such as Delivered at Terminal (DAT) or Delivered at Place (DAP).
In summary, the Delivered Ex Ship (DES) Incoterm defines the seller’s responsibility for delivering goods to the buyer at the named port of destination, including all costs and risks associated with transportation and export clearance. Once the goods are delivered to the port, the buyer assumes responsibility for unloading, customs clearance, and further transportation.
The Delivered Ex Ship (DES) Incoterm is one of the trade terms used in international trade to define the responsibilities and obligations of the buyer and seller in a transaction. It is commonly used in maritime shipments where the seller is responsible for delivering the goods to the buyer’s destination port.
Under the DES Incoterm, the seller bears all the risks and costs associated with delivering the goods to the named port of destination. This includes the costs of transportation, export clearance, and loading the goods onto the vessel. The seller is also responsible for arranging and paying for the main carriage to the destination port.
Once the goods have been delivered to the destination port, the risk and responsibility transfer from the seller to the buyer. The buyer is then responsible for unloading the goods from the vessel and clearing them through customs at the destination port. The buyer is also responsible for any further transportation and delivery costs from the port to their final destination.
The DES Incoterm should be used when the seller wants to have more control over the transportation of the goods and is willing to bear the risks and costs associated with delivering the goods to the destination port. It is important for both the buyer and seller to clearly define the named port of destination in the contract to avoid any confusion or disputes.
Here is an example to illustrate the application of the DES Incoterm:
| Incoterm | Responsibilities |
|---|---|
| DES | Seller is responsible for delivering the goods to the named port of destination, including transportation, export clearance, and loading onto the vessel. |
| Buyer | Buyer is responsible for unloading the goods from the vessel, clearing customs, and arranging further transportation and delivery to the final destination. |
DAT and DAP: Key Differences
DAT (Delivered at Terminal)
DAT refers to a situation where the seller is responsible for delivering the goods to a named terminal at the destination port or place of destination. The seller bears the risk and cost of unloading the goods at the terminal, but the buyer is responsible for any further transportation and customs clearance.
Under DAT, the seller is responsible for delivering the goods to a specific terminal, such as a port or an airport. Once the goods are unloaded at the terminal, the risk and responsibility transfer to the buyer. The buyer is then responsible for arranging transportation from the terminal to the final destination, as well as any customs clearance.
DAP (Delivered at Place)
DAP, on the other hand, refers to a situation where the seller is responsible for delivering the goods to a named place of destination. Unlike DAT, the seller is responsible for not only delivering the goods to the specified place but also for unloading them. The buyer is responsible for any further transportation and customs clearance.
Under DAP, the seller is responsible for delivering the goods to a specific place, which could be a warehouse, a factory, or any other agreed-upon location. The seller is also responsible for unloading the goods at the destination. Once the goods are unloaded, the risk and responsibility transfer to the buyer, who is then responsible for arranging transportation to the final destination and any customs clearance.
1. Responsibility for unloading: In DAT, the buyer is responsible for unloading the goods at the terminal, while in DAP, the seller is responsible for unloading the goods at the agreed-upon place of destination.
2. Risk transfer: In DAT, the risk transfers from the seller to the buyer once the goods are unloaded at the terminal. In DAP, the risk transfers from the seller to the buyer once the goods are unloaded at the agreed-upon place of destination.
3. Customs clearance: In both DAT and DAP, the buyer is responsible for any customs clearance required after the goods have been unloaded. However, in DAT, the buyer may have to arrange for customs clearance at the terminal, while in DAP, the buyer may have to arrange for customs clearance at the place of destination.
Comparing Delivered at Terminal (DAT) and Delivered at Place (DAP) Incoterms
DAT (Delivered at Terminal)
DAT refers to a delivery arrangement where the seller is responsible for delivering the goods to a named terminal at the destination port or place of discharge. The seller is responsible for all costs and risks associated with delivering the goods to the terminal, including customs clearance.
Once the goods have been unloaded at the terminal, the buyer assumes responsibility for any further transportation, import duties, and taxes. The buyer is also responsible for any risks that may occur after the goods have been unloaded.
DAP (Delivered at Place)
DAP, on the other hand, refers to a delivery arrangement where the seller is responsible for delivering the goods to a named place at the destination. This place can be any agreed-upon location, such as a warehouse, factory, or even the buyer’s doorstep.
Under DAP, the seller is responsible for all costs and risks associated with delivering the goods to the named place. This includes transportation costs, customs clearance, and any import duties or taxes. The seller is also responsible for any risks that may occur until the goods are delivered to the named place.
| Comparison | DAT | DAP |
|---|---|---|
| Delivery Location | Named Terminal | Named Place |
| Responsibility for Delivery | Seller | Seller |
| Responsibility for Risks | Buyer after unloading at terminal | Seller until delivery at named place |
| Responsibility for Costs | Seller until unloading at terminal | Seller until delivery at named place |
As shown in the comparison table, the main difference between DAT and DAP lies in the delivery location and the point at which the buyer assumes responsibility for risks and costs. DAT involves delivery to a named terminal, while DAP involves delivery to a named place. In both cases, the seller is responsible for the delivery, but the buyer assumes responsibility for risks and costs at different stages of the transportation process.
Comparing Delivered at Terminal (DAT) and Delivered at Place (DAP) Incoterms
DAT, or Delivered at Terminal, means that the seller is responsible for delivering the goods to a named terminal at the destination port or place of discharge. Once the goods are unloaded at the terminal, the risk and responsibility transfer to the buyer. The buyer is then responsible for any further transportation and costs from the terminal to the final destination.
DAP, or Delivered at Place, on the other hand, means that the seller is responsible for delivering the goods to a named place of destination agreed upon by both parties. Unlike DAT, the goods are not necessarily delivered to a terminal but can be delivered to any agreed-upon location, such as a warehouse or the buyer’s premises. The risk and responsibility transfer to the buyer once the goods are made available at the named place of destination.
One key difference between DAT and DAP is the point at which the risk and responsibility transfer from the seller to the buyer. With DAT, it occurs once the goods are unloaded at the terminal, while with DAP, it occurs once the goods are made available at the named place of destination. This distinction can have implications for insurance coverage and liability in the event of damage or loss during transportation.
Another difference is the level of control the buyer has over the transportation process. With DAT, the buyer is responsible for arranging and paying for the transportation from the terminal to the final destination. In contrast, with DAP, the seller is responsible for arranging and paying for the transportation to the named place of destination. This can affect the overall cost and efficiency of the transportation process.
Emily Bibb simplifies finance through bestselling books and articles, bridging complex concepts for everyday understanding. Engaging audiences via social media, she shares insights for financial success. Active in seminars and philanthropy, Bibb aims to create a more financially informed society, driven by her passion for empowering others.