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Understanding Delivered at Frontier or DAF: Key Legal Insights
Definition & Meaning
Delivered at Frontier (DAF) is a shipping term used in international trade. Under a DAF sale contract, the seller is responsible for delivering goods to a specified border location in the buyer's country. The seller's obligation ends once the goods are delivered at the agreed point on the frontier, which is typically at the customs border of the adjacent country. The seller must ensure that the goods are cleared for export before reaching this point. After crossing the border, the buyer assumes all risks and costs associated with the goods, including import customs formalities and any applicable duties and taxes.
Table of content
Legal Use & context
DAF is commonly used in international trade agreements. It outlines the responsibilities of the seller and buyer regarding the delivery of goods. This term is relevant in various legal areas, including commercial law and international trade law. Users can manage DAF agreements through legal templates provided by services like US Legal Forms, which offer resources drafted by legal professionals.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
(Hypothetical example) A company in the United States sells machinery to a buyer in Canada under a DAF contract. The seller delivers the machinery to the U.S.-Canada border, ensuring it is cleared for export. Once the machinery crosses into Canada, the buyer takes on all responsibilities, including paying any import duties.
State-by-state differences
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
State
Key Differences
California
Specific regulations on import duties may apply.
New York
Import tax rates can vary significantly.
Comparison with related terms
Term
Definition
Difference
Delivered Duty Paid (DDP)
The seller is responsible for all costs until the goods reach the buyer's location.
DAF transfers risk at the border, while DDP includes delivery to the buyer's premises.
Free on Board (FOB)
The seller's responsibility ends once the goods are loaded onto a vessel.
DAF focuses on land border delivery, whereas FOB pertains to maritime transport.
Common misunderstandings
What to do if this term applies to you
If you are involved in a DAF agreement, ensure that you understand your responsibilities regarding delivery and customs. If you are the seller, prepare the goods for export clearance. If you are the buyer, familiarize yourself with the import duties and customs procedures. For assistance, consider exploring US Legal Forms' templates for DAF agreements or consult a legal professional for complex situations.
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