Incolearn – Learning more about Incoterms 2000

DELIVERED EX SHIP (DES) PART II – The Selller's Obligations
THE INTERNATIONAL Chamber
of Commerce (ICC) defines the
tenth Incoterm, Delivered Ex
Ship (DES), at a named port of
destination, as “the seller delivers
when the goods are placed at the
disposal of the buyer on board the
ship not cleared for import at the
named port of destination. The
seller has to bear all the costs and
risk involved in bringing the goods
to the named port of destination
before discharging. If the parties
wish the seller to bear the costs
and risks of discharging the goods,
then the DEQ term should be
used”.
It is important to remember
that this term can only be
used when the goods are to
be delivered by sea or inland
waterway or multimodal transport
on a vessel in the port of
destination.
Professor Jan Ramsberg, the
chairman of the ICC Working
Party on Trade Terms, identified
ten obligations that the seller
might need to fulfil in terms
of Delivered Ex Ship: (1) the
provision of goods in conformity
with the contract; (2) licences,
authorisations, and formalities;
(3) contracts of carriage and
insurance; (4) delivery; (5) transfer
of risks; (6) division of costs; (7)
notice to the buyer; (8) proof of
delivery, transport documents or
equivalent electronic message; (9)
checking, packaging, marking; and
(10) other obligations.
The provision of goods in
conformity with the contract
implies that the documents
stipulated in the contract of sale
must be provided.
Llicences, authorisations and
formalities must be obtained
by the seller at his own risk and
expense. The seller must contract
for carriage at his own expense to
the named place. The seller has
no obligation in respect of the
contracts of insurance.
The delivery of the goods by
the seller must be on board the
vessel at the unloading point in
the named port of destination
on the specified date. As for the
transfer of risks, the seller bears
all risks for loss of or damage to
the goods until delivery has taken
place at the named place.
Regarding the division of
costs the seller must pay all the
costs relating to the goods up to
delivery at the named place. The
seller must give sufficient notice
to the buyer of when and where
the goods will be placed at his
disposal.
In respect of the proof of
delivery, transport documents or
equivalent electronic message the
seller must provide, at his own
expense, the usual documents
or other evidence to enable the
buyer to claim the goods from the
carrier at the point of destination.
Depending on the stipulations
in the contract of sale the
checking, packaging, marking
costs are for the seller’s account.
As for other obligations, the buyer
may request the seller’s assistance
with information regarding
the goods and the export
requirements, and if necessary to
procure insurance.
Next week’s column will focus
on the buyer’s obligations under
Delivered Ex Ship (DES).