“Delivered Ex Ship” (DES) is an international trade term, also known as an Incoterm, that specifies the responsibilities and obligations of the buyer and seller in a transaction involving the delivery of goods. Incoterms are standardized terms published by the International Chamber of Commerce (ICC) that define the roles of the buyer and seller in the international sale of goods.

In the context of DES, the key points include:

1. **Delivery Point:**
– The seller is responsible for delivering the goods to the buyer on board the ship at the named port of destination. The risk and responsibility for the goods transfer from the seller to the buyer at the point when the goods are placed on board the vessel.

2. **Transportation Costs:**
– The seller bears the costs and risks associated with transporting the goods to the named port of destination. This includes freight charges, handling charges, and other expenses related to getting the goods on board the ship.

3. **Insurance:**
– The seller is not obligated to procure insurance for the goods under DES. It is the buyer’s responsibility to arrange for insurance coverage if desired.

4. **Customs Formalities:**
– The seller is responsible for export customs clearance and any export duties or taxes. The buyer is responsible for import customs clearance and any import duties or taxes.

5. **Risk Transfer:**
– The risk of loss or damage to the goods shifts from the seller to the buyer when the goods are on board the ship at the named port of destination.

6. **Named Port of Destination:**
– The specific port of destination must be clearly defined in the sales contract. The goods are considered delivered once they are on board the ship at this named port.

It’s important for buyers and sellers to clearly understand the implications of using Incoterms like DES when negotiating international trade agreements. The choice of the Incoterm reflects the distribution of responsibilities, costs, and risks between the parties involved. Other Incoterms, such as FOB (Free On Board) or CIF (Cost, Insurance, and Freight), may be more suitable depending on the preferences and requirements of the parties involved in the transaction.