What Is Delivered at Frontier (DAF)?
Let me explain Delivered at Frontier, or DAF, directly to you. It's a term in international shipping contracts where the seller must deliver goods to a specific border location. As the seller, you're responsible for all costs to get the goods to that drop-off point for the buyer. Typically, the party picking up the goods is importing them and crossing customs.
Understanding Delivered at Frontier
You need to know that Delivered at Frontier is a shipping term used for goods crossing borders. The 'frontier' means a border on a busy transportation route, often with customs inspections for freight.
Shipping agreements are crucial for moving goods from seller to buyer, and international ones are more complex due to customs. You, as a seller or buyer, create these binding agreements to clarify instructions, liabilities, and ensure efficiency. They include various provisions and are legally enforceable.
In a DAF contract, the seller handles all costs while the goods are in their possession. The agreement specifies the exact drop-off location and who meets the seller. The buyer's representative usually crosses the border and imports the goods.
Frontier drop-offs are key for international trade. They can be on land via trucks or railways, or at seaports where cargo moves from ship to land or the reverse. Your shipping terms must clearly describe the location and exchange points.
If you're the exporter, you pay shipping to the drop-off and follow export laws, like licensing and filings. That's generally your full obligation. At the border, the importer takes the goods and manages customs, including inspections, filings, and paying any import costs or tariffs.
Incoterms
The International Chamber of Commerce leads global efforts to standardize shipping language. Founded in 1919, they surveyed trade terms worldwide, leading to the Incoterms rules.
Exporters and importers worldwide use the ICC's Incoterms for standardized shipping terms.
DAF is less common now because global trade has simplified cross-border commerce. It was added to Incoterms in 1967 during the third revision.
In 2010, the ICC removed DAF from their glossary. By 2011, Incoterms replaced it with Delivered at Terminal (DAT) and Delivered at Place (DAP). These have mostly taken over from DAF.
DAT and DAP are similar but more general, better for today's open borders. They have comparable requirements. No matter the term—frontier, terminal, or place—your shipping instructions must detail the drop-off exchange and who takes possession.
Key Takeaways
- Delivered at Frontier is an international shipping term requiring the seller to deliver goods to a border location.
- Shipping agreements should provide complete details on the exact drop-off location and exchange requirements for the seller.
- Buyers picking up the goods at the border are responsible for customs processing.
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