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When it comes to international or cross-border trade, there are specific terms that define the responsibilities of sellers and buyers regarding the delivery and transportation of goods. One such term is "Delivered at Frontier" (DAF).
The term "Delivered at Frontier" refers to an international trade term defined by Incoterms (International Commercial Terms) published by the International Chamber of Commerce (ICC). It illustrates an agreement between the buyer and seller concerning the delivery of goods to a specific frontier or border point nominated by the buyer, usually at the seller's own country.
The seller, in a DAF arrangement, is responsible for delivering the goods, cleared for export, to the named point at the frontier or border agreed upon with the buyer. They are accountable for all costs and risks related to the transportation of goods until they reach the specified location or point.
The buyer incurs all costs and risks associated with the delivery of goods from the named point at the frontier or border. After the goods cross the frontier or border and hand over to the buyer, they assume responsibility for transportation, import duties or taxes, and further distribution of goods to their final destination.
- Documentation and clear communication between buyer and seller are crucial to ensure a smooth delivery process.
- The specific frontier or border point should be well-defined and agreed upon by both parties in the international trade contract.
- The seller should adequately plan and account for costs associated with export clearance and transportation to the agreed point.
- The buyer needs to consider customs requirements, duties, and transportation arrangements beyond the frontier or border.
- It is essential for both parties to understand the local regulations and customs procedures at the designated frontier or border point.
The term "Delivered at Frontier" sets out a clear delineation of responsibilities between the seller and buyer in international trade. It ensures a smooth delivery process by specifying the agreed location of handover through proper documentation while guiding the allocation of costs and risks. Being familiar with the details of such incoterms is vital for successful cross-border trade transactions.