What is delivered to the border (DAF)?
“Delivered at the border” (DAF) is a term used in international maritime transport contracts which obliges a seller to deliver goods at a border. The seller is generally responsible for all costs of transporting the goods to the delivery point for the buyer. The party who collects the goods will generally import them and pass through customs.
Understanding delivered to the border
“Delivered at the border” is a term in the shipping contract that can be used when shipping goods across borders. Border is a designation for a border on a transportation route that is generally very busy and includes a customs inspection of cargo.
Shipping agreements are an important part of the transportation of all types of goods from a seller to a buyer. International shipping will often be more complex than standard domestic shipping because it involves customs controls. Sellers and buyers create binding shipping agreements, which can include a multitude of conditions to ensure that shipping instructions are clear, that appropriate responsibilities are clearly stated to avoid confusion, and that shipping is efficient. As such, shipping agreements include a variety of provisions and are legally binding.
In the case of a shipping contract including delivery to the border, the seller of the goods is generally responsible for all costs incurred in connection with the goods during their possession. Delivered to the border will clearly state an exact location for the depot and the people meeting the seller. The party collecting the goods on behalf of the buyer will generally travel through border customs and import the goods.
Landings at borders are an important place for international trade. They may be land restitutions or restitutions from seaports. Land deliveries may relate to freight by truck or railways. Landings in seaports will involve the transport of cargo to land or vice versa. In any case, the delivery conditions at the border must clearly describe the location and the points of exchange.
If a seller exports the goods, he will have to pay the shipping costs at the place of delivery and comply with all export laws which may include export licenses and deposits. This is generally the extent of their obligation. From the border, the importer takes possession of the goods and is then responsible for processing the goods through customs, which includes an inspection, a customs deposit and the initiation of any import costs and / or tariffs that are paid by the importer.
The International Chamber of Commerce is the main organization dedicated to shipping language standardization efforts around the world. Founded in 1919, one of the organization’s first efforts was to commission a survey of the trading terms used by traders around the world. This ultimately led to the compilation and publication of what are now known as the Incoterm rules.
Exporters and importers worldwide rely on the Incoterms publication of the International Chamber of Commerce for the standardization of the shipping language.
The term issued at the border is used less today than in decades past, as the evolution of world trade policy has made cross-border trade less complicated. It was added to the Incoterms collection in 1967, following the third revision of the Incoterms rules.
In 2020, the International Chamber of Commerce removed the term issued at the border from its glossary. In 2020, the Incoterms replaced delivery at the border with the conditions delivered to the terminal (DAT) and delivered on site (DAP). These terms mainly replaced DAF.
The terms are roughly comparable, but DAT and DAP are more general and therefore more useful in an era when borders are more porous for trade. As substitutes, these terms generally have the same requirements. Overall, whether a border depot is called a border, terminal, or place, it is very important that the shipping instructions include full details of the exchange and who takes possession of the goods. .
Key points to remember
- Delivered to the border is an international shipping term that requires a seller to deliver goods to a border.
- Shipping agreements must provide full details of the exact drop-off location and exchange requirements for the seller.
- Buyers who pick up goods at the border are responsible for customs processing.