Delivered at Frontier (DAF) is a contractual term commonly used in business transactions involving the buying and selling of goods. It signifies that the seller bears the responsibility of ensuring the goods are cleared for export, arranging and covering the costs of transportation, and delivering the goods to a specific location at the border of the importing country. Once the goods reach the designated point, the seller’s delivery obligations are fulfiled, and the buyer assumes the risk of any potential loss. This term is typically employed when the delivery location is on land, without specifying the mode of transportation. If the delivery location is a border port, it is preferable to use the terms delivered ex ship or delivered ex quay.
The term “delivered at frontier” is used in mercantile contracts to define the obligations of the buyer and seller regarding the delivery, payment, and risk of loss of goods. Under this term, the seller is responsible for clearing the goods for export, arranging and paying for transportation, and delivering the goods to a specified location at the border of the importing country. The seller’s delivery is considered complete when the goods reach the designated point and are made available to the buyer. For instance, if a company in the United States wishes to purchase goods from a Canadian company, they may agree to use the “delivered at frontier” term in their contract. In this case, the Canadian company would handle all aspects of the delivery until the goods reach the U.S.-Canada border. Once the goods are at the border and accessible to the U.S. company, the delivery is deemed complete, and the risk of loss is transferred to the U.S. company. This term is commonly used for land-based deliveries and does not specify the mode of transportation.
DAF is an international trade term that signifies the seller’s responsibility for delivering the goods to a named place at the frontier, typically a border crossing or a specific point within the buyer’s country. The seller is responsible for all costs and risks until the goods are delivered at the specified location.
The seller is responsible for delivering the goods to the agreed-upon frontier location, ensuring they are properly packaged, labeled, and ready for export. The seller must also arrange for export clearance and bear the costs and risks associated with transporting the goods to the frontier.
The buyer is responsible for receiving the goods at the named place and taking care of all import formalities, including customs clearance and payment of any applicable duties or taxes. The buyer also assumes the risks and costs associated with the goods from the point of delivery at the frontier.
Yes, the seller has the flexibility to choose the mode of transportation that best suits their needs, whether it be by road, rail, air, or sea. The important aspect is that the goods are delivered at the agreed-upon frontier location.
The buyer is responsible for insuring the goods from the point of delivery at the frontier. It is advisable for the buyer to arrange appropriate insurance coverage to protect against any potential loss or damage during transit.
Yes, the buyer can negotiate with the seller to provide additional services, such as packaging, labeling, or assistance with customs documentation. However, any additional services should be clearly specified in the sales contract and may involve additional costs.
If the goods are damaged or lost during transportation, the buyer bears the risk and must file a claim with their insurance provider, if applicable. The seller’s responsibility ends once the goods are delivered at the frontier, and they are not liable for any damage or loss that occurs thereafter.
The buyer can refuse to accept the goods if they do not conform to the agreed-upon specifications or if there are any visible defects. However, it is important for the buyer to clearly communicate their refusal and provide valid reasons to avoid any potential disputes.
No, the seller is not responsible for any delays in customs clearance as it falls under the buyer’s obligations. The buyer should ensure they have all the necessary documentation and comply with the customs requirements to avoid any unnecessary delays.
No, the Delivered At Frontier (DAF) Incoterm is specifically designed for international transactions where goods cross borders. For domestic transactions within a single country, other Incoterms such as Delivered Duty Paid (DDP) or Delivered At Place (DAP) may be more appropriate.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 16th April 2024.
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