Search This Blog

Sunday, June 13, 2010

Incoterms - DAF

Incoterms - DAF
DAF (Delivered At Frontier) is a monomial (land) expression which should be further qualified by naming the frontier (border post) up to which the seller is prepared to take responsibility for transport costs and the corresponding risks of transit.

The frontier is deemed to be on the seller's side of the applicable border unless the term is modified to express that the point of transfer is the frontier on the buyer's side of the border.

The seller must clear the cargo through customs before handover on the export side of the border, whereas the buyer must clear the cargo through customs on the import side.

DAF can vary from other D terms in that the seller may not be responsible for all or even partial of the main carriage because the Frontier falls on the seller's side of the border. For example, the seller may pass risk and responsibility at the first of these, obligating the buyer to arrange the main carriage thereafter if the transit involved the movement of cargo through several frontiers

As a land term the application of DAF is for land-based operations and other D terms such as DDU or DDP should be considered if the transaction is not land-based. (I.e. it is not exclusively road or rail or a road/rail combination).

No comments: