Delivered at Frontier (DAF): Definition and Overview
Delivered at Frontier (DAF) is an international shipping term that requires the seller to deliver goods to a specified border location (the “frontier”). Under DAF the seller arranges and pays for transport to the agreed border point and is responsible for costs and risks up to the moment the goods are placed at the named frontier. The buyer takes possession at that point and is responsible for import formalities, customs clearance, duties, and any onward transport across the border.
How DAF Works
- Seller obligations
- Arrange and pay transportation to the agreed frontier location.
- Complete export formalities (export licensing, filings, and any required inspections).
- Deliver the goods to the named frontier place and notify the buyer of the delivery details.
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Bear costs and risk of loss or damage until delivery at the frontier.
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Buyer obligations
- Receive the goods at the frontier location.
- Complete import formalities and customs clearance.
- Pay import duties, taxes, and any costs for onward transport beyond the frontier.
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Assume risk once the goods are placed at the named frontier.
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Location types
- Frontiers can be land border points (truck, rail) or seaports where cargo is exchanged.
- It is critical that the contract specifies the exact drop-off point and the person or organization authorized to accept the goods.
Incoterms and Historical Context
- Incoterms are standardized trade terms published by the International Chamber of Commerce (ICC).
- DAF was introduced in earlier editions of Incoterms but was removed from the ICC glossary in 2010.
- In Incoterms 2010 and later, DAF was effectively superseded by:
- DAT — Delivered at Terminal (delivery to a named terminal, seller responsible until goods are unloaded at that terminal).
- DAP — Delivered at Place (delivery to a named place, seller responsible until goods are ready for unloading).
- DAT and DAP are broader and better suited to modern cross-border logistics; when drafting contracts today, use current Incoterms language (e.g., DAP/DAT) to avoid ambiguity.
Practical Tips
- Always name the precise delivery point and identify who will accept the goods at that point.
- Clarify whether the seller will unload the goods at the frontier or whether the buyer will handle unloading.
- Ensure export responsibilities (licenses, filings) are specified in the contract.
- Use current Incoterms versions in the contract and cite the exact Incoterm (e.g., “DAP [place], Incoterms 2020”) to prevent misunderstandings.
- Consider insurance and who bears risk during transit; if insurance is desired beyond the frontier, state that explicitly.
Example Scenario
A seller in Country A agrees to sell machinery under DAF at the official border crossing town between Country A and Country B. The seller transports and pays for the machinery to the named border crossing and completes export paperwork. The buyer collects the machinery at that crossing, clears customs in Country B, pays any import duties, and arranges onward transport into Country B. The seller’s obligations end at the named frontier point.
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Key Takeaways
- DAF obliges the seller to deliver goods to an agreed border location and be responsible for costs and risks up to that point.
- The buyer is responsible for import clearance, duties, and onward transport from the frontier.
- DAF has been largely replaced in modern Incoterms by DAT and DAP; contracts should use current Incoterms language and clearly define the named place of delivery.