DAF (Delivered at Frontier) is an international shipping term used to indicate the point in a transaction where the seller’s responsibilities are fulfilled. In this arrangement, the seller delivers the goods to a specific agreed-upon location at the frontier, but does not clear the goods for import. The buyer is responsible for customs duties, taxes, and any other logistical arrangements thereafter.
In terms of financing and payment, DAF impacts how costs and liabilities are calculated in international trade. Since the seller’s obligation ends once the goods reach the frontier, the pricing structure typically considers transportation costs only up to that point. This allows buyers to better estimate their overall costs, including customs fees and handling charges.
DAF is particularly relevant for businesses engaged in cross-border transactions, as it clarifies the responsibilities of both parties and helps manage payment terms. It fosters transparency in logistics and finance, ensuring that each party understands their obligations and minimizing disputes related to delivery and payment responsibilities.
