47.001 Definitions
Source: FAR 47.001 on acquisition.gov
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.
As used in this part-
Bill of lading means a transportation document, used as a receipt of goods, as documentary evidence of title, for clearing customs, and generally used as a contract of carriage.
(1) "Commercial bill of lading (CBL)", unlike the Government bill of lading, is not an accountable transportation document.
(2) "Government bill of lading (GBL)" is an accountable transportation document, authorized and prepared by a Government official.
Carrier or "commercial carrier" means a common carrier or a contract carrier.
Common carrier means a person holding itself out to the general public to provide transportation for compensation.
Contract carrier means a person providing transportation for compensation under continuing agreements with one person or a limited number of persons.
Government rate tender under http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title49-section10721&num=0&edition=prelim" target="_blank">49 U.S.C. 10721 and http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title49-section13712&num=0&edition=prelim" target="_blank">13712means an offer by a common carrier to the United States at a rate below the regulated rate offered to the general public.
Household goods in accordance with http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title49-section13102&num=0&edition=prelim" target="_blank">49 U.S.C. 13102 means personal effects and property used or to be used in a dwelling, when a part of the equipment or supply of such dwelling, and similar property if the transportation of such effects or property is arranged and paid for by-
(1) The householder, except such term does not include property moving from a factory or store, other than property that the householder has purchased with the intent to use in his or her dwelling and is transported at the request of, and the transportation charges are paid to the carrier by, the householder; or
(2) Another party.
Noncontiguous domestic trade means transportation (except with regard to bulk cargo, forest products, recycled metal scrap, waste paper, and paper waste) subject to regulation by the Surface Transportation Board involving traffic originating in or destined to Alaska, Hawaii, or a territory or possession of the United States (see http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title49-section13102(15)&num=0&edition=prelim" target="_blank">49 U.S.C. 13102(15) and http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title49-section13702&num=0&edition=prelim" target="_blank">13702).
Released or declared value means the assigned value of the cargo for reimbursement purposes, not necessarily the actual value of the cargo. Released value may be more or less than the actual value of the cargo. The released value is the maximum amount that could be recovered by the agency in the event of loss or damage for the shipments of freight and household goods.