Definition — Delivered at Frontier (DAF)
Delivered at Frontier (DAF) is an international trade term that required a seller to deliver the goods to a specified point at the border (the “frontier”), ready for handover to the buyer or the buyer’s carrier. Under DAF the seller paid for carriage up to that border point and completed export formalities; the buyer took responsibility for import clearance, import duties, and onward transport after the frontier.
Context — Incoterms and the ICC
Incoterms are standardized trade terms published by the International Chamber of Commerce (ICC) that allocate transport tasks, costs, and risks between seller and buyer in international sales contracts. The ICC first developed these rules early in the 20th century and updates them periodically. DAF was part of earlier Incoterms editions but was removed in the 2010 revision and effectively superseded by the more general Delivered at Terminal (DAT) and Delivered at Place (DAP) rules in the modern Incoterms editions.
Why DAF mattered (and how it worked)
– “Frontier” meant a recognizable border handover point on a common transport route; it could be a land border crossing, a rail terminal, or a seaport where cargo moves between sea and land modes.
– Seller’s main obligations under DAF: transport the goods to the named frontier point, pay transport costs to that point, and handle export clearance and any export documentation.
– Buyer’s main obligations: accept the goods at the frontier, complete import formalities (customs declaration, inspection), pay import duties and taxes, and move the goods onward.
– Practical requirement: the contract had to specify the exact delivery point at the border and who would physically receive the shipment; otherwise disputes could arise over when risk and cost transfer.
Short checklist for using a frontier-style delivery term (apply similarly if using DAT or DAP instead)
– Name the precise delivery location (terminal/road crossing/port berth) including geographic coordinates or commonly used terminal codes if possible.
– Specify the party and contact details who will accept the goods at that location.
– Confirm which party arranges and pays for export formalities and documentation.
– Agree who bears risk at the delivery point and how risk transfer is evidenced (signed delivery receipt, bill of lading notation).
– Spell out responsibility for insurance during transport to the frontier.
– Confirm modes of transport and any transshipment points.
– Verify any licensing, export controls, or special inspections the seller must complete.
– Confirm who pays for storage, demurrage, or detention if the buyer is late to pick up.
Small worked example (numeric)
Scenario: Seller in Country A sells goods valued at $50,000 to a buyer in Country B using a DAF-like arrangement where the named frontier is the land border crossing “EastGate.”
Costs and responsibilities:
– Seller pays domestic transport to EastGate: $2,500
– Seller arranges and pays export clearance and paperwork: $300
– Seller bears risk until handover at EastGate.
At EastGate the buyer’s responsibilities begin:
– Buyer pays import duty (assume 5% of goods value): 0.05 × $50,000 = $2,500
– Buyer pays customs brokerage and clearance fee: $200
– Buyer arranges and pays onward transport to final warehouse: $1,000
Total cost carried by seller to frontier = $2,500 + $300 = $2,800
Total cost carried by buyer after frontier = $2,500 + $200 + $1,000 = $3,700
Net cash flows (illustrative):
– Seller receives payment for goods (depends on sales terms) but additionally incurs $2,800 in pre-sale delivery costs.
– Buyer takes on $3,700 of import and inland costs once the goods are at EastGate.
Notes on modern practice
DAF itself is rarely used today. Incoterms 2010 removed DAF and modern contracts typically use DAT (Delivered at Terminal) or DAP (Delivered at Place), which are broader and better suited to contemporary multimodal logistics. Regardless of the term chosen, the key is precise description of the delivery point and clear allocation of export vs. import responsibilities.
Reputable references
– Investopedia — Delivered at Frontier (DAF): https://www.investopedia.com/terms/d/delivered-at-frontier.asp
– International Chamber of Commerce (ICC) — Incoterms rules: https://iccwbo.org/resources-for-business/incoterms-rules/incoterms-2020/
– U.S. Department of Commerce — Guide to Incoterms 2020: https://www.trade.gov/incoterms-2020
– UK Government guidance — Incoterms 2010: https://www.gov.uk/guidance/incoterms-2010-rules-for-international-trade
Educational disclaimer
This explainer is for educational and informational purposes only. It does not constitute legal, tax, or commercial advice. For contract wording, compliance, or shipment-specific guidance consult a qualified trade attorney, customs broker, or freight forwarder.