Definition
Delivered at Frontier (DAF) is a term used in international shipping contracts that refers to a condition in which the seller is responsible for delivering goods to a specified border location. Under DAF terms, the seller assumes all costs and risks for transporting the goods, including travel across customs, until the rear wheels of their delivery vehicle cross a specified border point.
DAF vs. Other Shipping Terms
| Terms | Delivered at Frontier (DAF) | Free on Board (FOB) |
|---|---|---|
| Responsibility | Seller until the frontier | Seller until the goods are on board |
| Risk Transfer | At the frontier border | When goods are loaded on the vessel |
| Customs Responsibility | Yes, until border | No, the buyer handles customs |
| Cost Burden | Seller bears all costs | Seller has costs until goods are on the vessel |
Related Terms
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Free on Board (FOB): Under this shipping term, the seller delivers the goods onto a vessel, after which the risk and cost responsibilities transfer to the buyer.
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Cost, Insurance, and Freight (CIF): This term requires the seller to pay costs, insurance, and freight necessary to bring the goods to the port of destination.
Examples
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Example Scenario: A retailer in the U.S. orders furniture from a manufacturer in Canada, under DAF terms. The Canadian seller will transport the furniture to the U.S.-Canada border, handle customs, and ensure the goods are delivered to a U.S. customs officer. At the border, the responsibility and risk will then transition to the U.S. retailer.
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Misunderstanding: A buyer might think the seller is responsible for delivery all the way to their door, when in fact, the seller’s responsibility only extends to that border – a brief “goodbye” wave at a metaphoric border post.
journey
title DAF Delivery Process to the Border
section Seller's Responsibility
Goods move from Seller's location to border: 5: Seller
Handle customs procedures and paper: 4: Seller
section Buyer's Responsibility
Accept goods once delivered at the border: 3: Buyer
Humorous Quotes & Fun Facts
- “DAF: Because who needs more paperwork until you cross into that bureaucratic wonderland called customs?!” 🤪
- Historical Fact: DAF terms were popularized in international shipping contracts during the mid-20th century when bureaucracy began to cross borders like never before.
Frequently Asked Questions
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What does DAF stand for?
- DAF stands for Delivered at Frontier; it typically refers to a shipping arrangement where the seller is responsible until the specified border.
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Who bears the costs in DAF contracts?
- The seller is responsible for all costs up until the goods reach the specified border point.
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How does DAF differ from other shipping terms?
- Under DAF, control and responsibility transfer only at the border. In contrast, terms like FOB transfer risk once the goods are on board the shipping vessel.
Further Reading and Resources
- International Chamber of Commerce
- Book: International Trade Law by Indira Carr – A practical guide to shipping terms and practices in international law.
Test Your Knowledge: Delivered at Frontier (DAF) Quiz Time!
Thank you for taking a maritime ride with DAF! Remember, smooth sailing comes with a good understanding of your shipping terms! 🌊🚢
