The Incoterms beginning with D, delivered at frontier (DAF), delivered ex-ship (DES) and delivered ex-works means that the seller is responsible for (including all risks and costs required in) bringing the goods to specified place or destination.
Under DAF, the seller must arrange and pay for transporting goods to the specified port or place at the frontier. They must clear the goods for export but not for import. The seller is responsible for all risks and costs associated with the goods until they reach the frontier.
The buyer takes over the risk in the goods once they have been delivered at the frontier. Additional provisions in the agreement may be required to deal with unloading the goods at the frontier. DAF is usually used for rail and road transport.
DES sellers are responsible for delivering the goods to a named destination but not for clearing them for import. The goods are made available on board the ship but the seller is not responsible for unloading. The buyer is responsible for the risks and costs associated with the goods from that point forward on board the ship.
Under DEQ the seller is responsible for delivering goods at the quay, not cleared for import at a named destination. The seller must cover all costs and risks up to and including the discharge onto the quay. The buyer is responsible for clearing goods for import, and import taxes and duties.
Under delivery duty paid (DDP) and delivery duty unpaid (DDU) the seller pays all costs involved in bringing the goods to the named place. The seller is responsible for delivering the goods to the buyer at the named place.
Under DDU, the seller does not unload the goods. The buyer has to clear the goods for import and takes the risk and cost as soon as they are accessible at their named destination. It may be agreed that the seller is responsible for some import duties. These need to be specifically written into the contract as a variation of the standard term.
Under deliver duty paid (DEP) the seller must deliver the goods, unload and clear them for import. The seller has responsibility for all costs and risks in bringing the goods to the main destination and must pay all taxes duties and charges in the country of import.
Some taxes such as VAT can be excluded from the seller’s obligations and transferred to the buyer. This variation should be written into the sales contact.
DDU and DDP cover all modes of transport. However if goods are delivered on board ship or on a quay then the delivered ex ship DES and delivered ex quay DEQ INCOTERMs must be used.
VAT is not covered as of a part of any of the cost under the INCOTERMs. It is payable at many international trade transaction. Generally VAT must be paid on importation of goods.