47.001
Definitions
FAR 47.001 matters because the definitions you use for shipping documents, carrier types, rates, and cargo value determine how transportation services are procured, documented, and reimbursed.
Overview
- FAR 47.001 provides the core transportation definitions used throughout FAR Part 47. Its purpose is to standardize key shipping and carrier terms so contracting officers and contractors apply transportation rules consistently in solicitations, contracts, and shipment documentation.
- Although this section does not impose detailed procedural steps by itself, the definitions directly affect how transportation services, freight claims, rates, and shipping documents are handled.
Key Rules
- Bill of Lading
- A bill of lading serves as a receipt for goods, evidence of title, a customs document, and generally the contract of carriage. The section distinguishes between a commercial bill of lading (CBL) and a Government bill of lading (GBL), with the GBL treated as an accountable Government transportation document.
- Carrier Classifications
- The rule defines carrier, common carrier, and contract carrier, clarifying whether transportation is offered broadly to the public or under continuing agreements with limited customers.
- Transportation Pricing and Shipment Terms
- It defines a Government rate tender as a reduced rate offered by a common carrier to the United States, and explains released or declared value as the reimbursement ceiling for cargo loss or damage claims.
- Special Shipment Categories
- The section defines household goods and noncontiguous domestic trade, which are important for moves involving residences and transportation to or from Alaska, Hawaii, and U.S. territories or possessions.
Responsibilities
- Contracting Officers: Use these definitions correctly when selecting transportation methods, preparing shipping documents, evaluating rates, and administering freight or household goods shipments.
- Contractors: Understand which transportation documents, carrier types, and valuation terms apply to their shipments and claims.
- Agencies: Maintain accountability for Government transportation documents and apply the correct legal framework for transportation services.
Practical Implications
- This section exists to create a common vocabulary for transportation contracting.
- It affects daily decisions involving bills of lading, carrier selection, rate tenders, and cargo valuation.
- Common pitfalls include confusing CBLs with GBLs, misunderstanding carrier status, and treating released value as the same as actual cargo value.