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Delivered Ex Quay (DEQ)

Delivered Ex Quay was a historical trade rule requiring delivery of goods onto the quay at a named destination port. The seller's delivery obligation included getting the goods to that unloading point, unlike delivery while still aboard the ship. Incoterms 2010 replaced DEQ with Delivered at Terminal, and the later framework uses Delivered at Place Unloaded.

From the Money Master HQ dictionary, founded by Shihan Sheriff (FCMA, VP of Finance at Nomod, CFO at Esanjo Ventures). How these definitions are written.

What it means

A quay is the dockside place where goods are landed from a vessel, and DEQ used that physical location as the seller's delivery endpoint. Identifying the port was therefore necessary, but a specific quay or agreed place could also matter.

The distinction from delivery aboard the ship is operationally important, because unloading involves cranes, stevedores, terminal processes and possible damage. A rule that includes landing the cargo allocates a different stage of the journey from a rule ending before unloading.

The seller arranged transport through the agreed endpoint, and the buyer then took over the remaining activities under the applicable bargain. Warehouse movement, onward transport and local handling should not be assumed to be included merely because the goods reached the port.

Risk transfer followed the delivery condition, not simply the vessel's arrival, so a shipment could be at the destination port without yet being delivered onto the quay. A manager reviewing an incident needs the actual unloading and handoff evidence.

Customs treatment changed across historical editions, and the older wording and later allocation should not be blended into one timeless statement that DEQ always included import duties. Read the year incorporated in the contract and any express variations.

The International Chamber of Commerce explains that the customs-clearance obligations of FAS and DEQ were amended in the 2000 revision, a practical reason to include the edition whenever describing a legacy agreement, since the same three letters can conceal a material difference. The 2010 revision then replaced DAF, DES, DEQ and DDU with broader destination rules.

Delivered at Terminal covered delivery unloaded at a named terminal and was not restricted to a maritime quay, which made the rule usable for more transport routes. The later Delivered at Place Unloaded terminology also emphasises unloading at the named destination.

A team changing an older DEQ agreement should review the replacement's requirements rather than only changing its name, because the operational endpoint may no longer be a port. Terminal charges can be a source of duplicate costs, since a freight quotation might already include handling that a terminal separately invoices, and cargo condition needs reliable documentation such as a tally, delivery record or survey.

A delivery term also does not automatically decide when legal ownership passes, so finance should keep these separate when recording goods and liabilities. For a non-finance manager, the useful questions are where delivery is complete, whether unloading is included, which edition applies and who handles import procedures, because a lower price may merely exclude a stage another quotation includes.

In practice

Real-world examples.

1

Example

An older equipment contract specifies DEQ at a destination quay. The supplier organises the sea movement and required landing operation, while the customer arranges the subsequent road trip under the contract. The customer books the truck for the day the vessel is due to berth.

2

Example

Cargo is damaged during unloading before the required quay delivery is complete. The parties investigate the actual handoff and governing edition rather than treating ship arrival as the only relevant event. A tally record and survey photographs show where the damage occurred.

3

Example

A company moves its delivery destination from a seaport to an inland terminal. It reviews the modern destination-unloaded rule and rewrites the location and cost clauses instead of carrying DEQ forward unchanged. The new clauses name the terminal and who pays its handling charges.

Formula

Calculation

Illustrative landed transport cost = ocean freight + allocated unloading + allocated terminal handling. With $8,000, $1,200 and $600 respectively, the assigned stages total $8,000 + $1,200 + $600 = $9,800. Import taxes and onward freight are separate unless the applicable agreement assigns them within that price. A like-for-like comparison shows why scope matters. Supplier A quotes $9,800 including unloading and terminal handling, while Supplier B quotes $8,000 for ocean freight only. Adding the $1,200 and $600 that B leaves out brings B to $9,800 as well, so the two quotes are equal and B's lower headline price is not a saving. The calculation compares cost components, not a universal DEQ tax rule.

Case study

Seen in the real world.

Fictional case: An importer finds a legacy DEQ clause in a port delivery contract. The purchasing team assumes the supplier also pays import tax, while the supplier reads a different edition. Before cargo leaves, the team confirms the incorporated year and clarifies unloading, clearance and terminal charges in writing. It also identifies the destination quay rather than leaving only a port name.

The clarification prevents a price comparison from concealing an unresolved customs obligation. The importer then builds a short checklist for any legacy delivery term, covering the edition, the named place, whether unloading is included, who clears customs and which charges the terminal will invoice. It attaches the completed checklist to the purchase order so that finance can match the supplier's invoice to the agreed scope.

Watch out

Common mistakes.

  • Treating DEQ as current or interchangeable with every modern unloaded-delivery rule.
  • Assuming import-duty allocation without checking the historical edition.
  • Confusing arrival aboard a vessel with completed delivery onto the quay.

Questions

People also ask.

What does quay mean?

The dockside landing area at a port.

Did DEQ survive the 2010 revision?

No. DAT replaced it within the broader destination framework.

Does the abbreviation alone settle import duties?

No. The edition and contract must be checked.

Was this explanation helpful?

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Last updated · October 8, 2026
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