Legal Definitions - delivered at frontier

Delivered at Frontier (DAF) is an international trade term that defines the responsibilities of a seller and a buyer regarding the delivery of goods across national borders, particularly concerning who pays for what and when the risk of loss or damage transfers from the seller to the buyer.

Under a DAF agreement, the seller has significant responsibilities:

• The seller must handle all necessary export clearance procedures in their own country.
• The seller is responsible for arranging and paying for the transportation of the goods to a specific, named place at the border of the importing country.
• The seller's obligation is fulfilled, and the risk of loss or damage to the goods transfers to the buyer, when the goods arrive at that designated border point and are made available to the buyer, but *before* they are cleared for import into the buyer's country.

This term is typically used when goods are transported by land (e.g., by truck or rail) to a land border, though it does not strictly limit the mode of transport.

Here are some examples illustrating how Delivered at Frontier (DAF) works:

• Example 1: Automotive Parts Shipment

  An automotive parts manufacturer in Mexico (the seller) agrees to sell a large shipment of engine components to a car assembly plant in the United States (the buyer) under a DAF contract, specifying the delivery point as the customs facility at the Laredo, Texas border crossing. The Mexican manufacturer is responsible for packaging the parts, clearing them for export from Mexico, and arranging and paying for their transportation by truck to the designated customs facility in Laredo. Once the truck arrives at the Laredo facility and the parts are made available for the U.S. buyer to take possession, the seller's responsibility ends, and the risk of any damage or loss to the parts transfers to the U.S. buyer. The buyer then handles the import customs clearance and onward transport to their assembly plant.

• Example 2: Agricultural Grain Export

  A Canadian grain exporter (the seller) sells a large quantity of wheat to a food processing company in the United States (the buyer) with a DAF agreement, specifying the rail terminal at the Sweet Grass, Montana border crossing. The Canadian exporter must load the wheat onto rail cars, complete all Canadian export documentation, and pay for the rail transport to the Sweet Grass terminal. When the train carrying the wheat arrives at the Sweet Grass terminal and the rail cars are positioned for the U.S. buyer to access, the Canadian exporter's delivery obligation is met, and the risk of any spoilage or loss of the grain transfers to the U.S. food processing company. The buyer then manages the U.S. import procedures and the final transport of the grain.

• Example 3: Industrial Machinery Delivery

  A German manufacturer of specialized industrial machinery (the seller) sells a new production line to a factory in Poland (the buyer) under a DAF contract, with the delivery point specified as a customs warehouse located directly at the German-Polish border near Frankfurt (Oder). The German manufacturer is responsible for crating the machinery, obtaining German export clearance, and arranging and paying for its transport by truck to the designated customs warehouse at the border. Upon the machinery's arrival at this warehouse and its availability for the Polish buyer to inspect and take control, the German manufacturer's duties are complete, and the risk of any damage to the machinery transfers to the Polish factory. The Polish factory then takes over the import customs clearance and arranges for the machinery's final transport to its facility.