Delivered at Frontier (DAF): Definition, Mechanism, and Incoterms Explained

What Does Delivered at Frontier (DAF) Mean?

Delivered at Frontier (DAF) is a trade term used in international shipping contracts that obligates the seller to deliver goods to a specified border location. Under this term, the seller bears all transportation costs up to the designated frontier point, where the buyer or their agent takes possession of the goods and manages import formalities.

How Delivered at Frontier Works

The term 'frontier' refers to a border point along a transport route, often a busy crossing subjected to customs inspections. In a DAF agreement, the seller is responsible for transporting the goods to this frontier location and ensuring compliance with export regulations, including any necessary licensing and documentation.

Once the goods reach the frontier, the buyer assumes responsibility, handling customs clearance, import duties, tariffs, and further transportation. This arrangement clearly defines the division of costs and risks, facilitating efficient and transparent international trade.

Frontier delivery points may be located at land borders, seaports, or railway terminals, depending on the mode of transport. Precise details about the drop-off location and the parties involved in the handover must be clearly outlined in the shipping contract to avoid disputes.

Incoterms and the Evolution of DAF

The International Chamber of Commerce (ICC), established in 1919, standardizes global shipping terms through its Incoterms rules. DAF was introduced in the 1967 Incoterms revision but has since been phased out.

In 2010, the ICC removed DAF from its official glossary, replacing it in 2011 with Delivered at Terminal (DAT) and Delivered at Place (DAP). These newer terms offer greater flexibility suited to modern trade environments where borders are more accessible and logistics more complex.

While DAF, DAT, and DAP share similar responsibilities regarding delivery and transfer of risk, DAT and DAP provide broader applicability beyond strict border points, accommodating various delivery locations.

Key Points to Remember

• Delivered at Frontier (DAF) requires the seller to deliver goods to a designated border point, bearing costs up to that location.
• The buyer is responsible for customs clearance and import duties once goods reach the frontier.
• Accurate and detailed shipping agreements specifying drop-off locations and handover procedures are essential for smooth transactions.
• DAF has been superseded by DAT and DAP in the latest Incoterms editions to better reflect contemporary international trade practices.

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