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, the chairman of the ICC Working Party on Trade Terms, identified ten obligations that the buyer might need to fulfil in terms of Delivered at Frontier: (1) the payment of the price; (2) licences, authorisations, and formalities; (3) contracts of carriage and insurance; (4) taking delivery; (5) transfer of risks; (6) division of costs; (7) notice to the seller; (8) proof of delivery, transport documents or equivalent electronic message; (9) inspection of the goods; and (10) other obligations. The payment of the price requires the buyer to pay the price stipulated in the contract of sale. In respect of the licences, authorisations and formalities the buyer is required at his own risk and cost to obtain such documentation and authorisation, and this applies for transit through any country. The buyer has no obligations in respect of the contract of carriage and insurance. The buyer must take delivery of the goods when they have been delivered in accordance with the contract of sale. With regard to the transfer of risks the buyer bears all risks for loss of or damage to goods from the time of delivery. Regarding the division of costs, the buyer is responsible for all costs relating to the delivery, any additional costs incurred due to his failure to nominate a carrier, or if the nominated person fails to take delivery of the goods, or the buyer fails to give sufficient notice to the seller. Where applicable, he is also responsible for all duties, taxes and other charges payable upon import of the goods and for their transit through any country. The buyer must give sufficient notice to the seller of the name of the person or carrier, the mode of transport, the date of delivering the goods, and the place of delivery of the goods. The buyer must accept the proof of delivery, transport documents or equivalent electronic message. The buyer must pay the costs for the inspection of the goods except when the authorities of the country of export mandate such inspection. As for other obligations, the buyer must pay all costs incurred to obtain the relevant documentation and also reimburse the seller for any costs incurred in rendering such assistance. The buyer must also inform the seller of whether his assistance is required in the contracting of the carriage. Next week’s column will provide a summary of the Delivered at Frontier (DAF) term.
