The International Chamber of Commerce (ICC) defines the ninth Incoterm, Delivered at Frontier (DAF), at a named place, as “the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport not unloaded, cleared for export, but not cleared for import at the named point and place at the frontier, but before the customs border of the adjoining country. The term “frontier” may be used for any frontier including that of the country of export. Therefore, it is of vital importance that the frontier in question be defined precisely by always naming the point and place in the term”. Professor Jan Ramsberg, chairman of the ICC Working Party on Trade Terms, identified ten obligations that the seller might need to fulfil in terms of Delivered at Frontier: (1) the provision of goods in conformity with the contract; (2) licences, authorisations, and formalities; (3) contracts of carriage and insurance; (4) delivery; (5) transfer of risks; (6) division of costs; (7) notice to the buyer; (8) proof of delivery, transport documents or equivalent electronic message; (9) checking, packaging, marking; and (10) other obligations. The provision of goods in conformity with the contract implies that the documents stipulated in the contract of sale must be provided. In respect of the licences, authorisations and formalities, these must be obtained by the seller at his own risk and expense. For the contract of carriage the seller must contract at his own expense for the carriage of the goods to the named point, if any, at the place of delivery at frontier. The seller has no obligation for the contract of insurance. As for the delivery of the goods, the seller must place the goods at the disposal of the buyer on the arriving means of transport, not unloaded at the named place of delivery – on the date or within the agreed period. In respect of the transfer of risks, the seller bears all risks for the loss of or damage to the goods until delivery has taken place at the named place. In relation to the division of costs the seller must pay all the costs relating to the goods up to delivery at the named place. The seller must give sufficient notice to the buyer of the dispatch of the goods to the named place, and any other notice required to enable the seller to take delivery of the goods. As for the proof of delivery, transport documents or equivalent electronic message, the seller must provide at his own expense the usual documents or other evidence of the delivery of the goods at the named place at the frontier. Depending on the stipulations in the contract of sale the checking, packaging, marking costs are for the seller’s account. As for other obligations, the seller must, at the buyer’s request, offer assistance with information in respect of the goods and the export requirements. Next week’s column will focus on the buyer’s obligations under Delivered at Frontier (DAF).
