47.303-10 F.o.b. inland carrier, point of exportation
Source: FAR 47.303-10 on acquisition.gov
Contractors must deliver goods, at their own expense and risk, onto the inland carrier at the specified export point and comply with all packaging, documentation, and delivery requirements until that point.
Overview
- FAR 47.303-10 defines the responsibilities and requirements for contracts using the delivery term "F.o.b. inland carrier, point of exportation." This term means the contractor delivers goods, free of expense to the Government, onto the inland carrier's conveyance at a specified exportation point. The section outlines contractor obligations for packaging, marking, documentation, delivery, risk of loss, and assistance with export/import documents.
Key Rules
- Definition of F.o.b. Inland Carrier, Point of Exportation
- Contractor delivers goods, at no cost to the Government, onto the inland carrier at the specified export point.
- Contractor Responsibilities
- Contractors must pack and mark shipments per contract or carrier requirements, prepare bills of lading, deliver goods in good order, pay all charges to the delivery point, bear risk of loss until delivery, and assist with export/import documents if requested by the Government.
- Contract Clause Requirement
- Contracting officers must include FAR clause 52.247-38 in solicitations and contracts using this delivery term.
Responsibilities
- Contracting Officers: Ensure the correct clause (52.247-38) is included in applicable contracts.
- Contractors: Fulfill all delivery, packaging, documentation, and risk of loss obligations up to the specified export point.
- Agencies: Request assistance with export/import documents as needed and ensure compliance with delivery terms.
Practical Implications
- This section clarifies risk, cost, and responsibility transfer points for export shipments, reducing disputes over delivery obligations. Contractors must be diligent in packaging, documentation, and timely delivery to avoid liability for loss or damage before the export point. Failure to comply can result in financial liability or contract disputes.
(a) Explanation of delivery term."F.o.b. inland carrier, point of exportation" means free of expense to the Government, on board the conveyance of the inland carrier, delivered to the specified point of exportation.
(b) Contractor responsibilities. The contractor shall-
(1)
(i) Pack and mark the shipment to comply with contract specifications; or
(ii) In the absence of specifications, prepare the shipment for ocean transportation in conformance with carrier requirements to protect the goods and to ensure assessment of the lowest applicable transportation charge;
(2) Prepare and distribute commercial bills of lading;
(3)
(i) Deliver the shipment in good order and condition in or on the conveyance of the carrier on the date or within the period specified; and
(ii) Pay and bear all applicable charges, including transportation costs, to the point of delivery specified in the contract;
(4) Be responsible for any loss of and/or damage to the goods occurring before delivery of the shipment to the point of delivery specified in the contract; and
(5) At the Government’s request and expense, assist in obtaining the documents required for-
(i) Exportation; or
(ii) Importation at destination.
(c) Contract clause. The contracting officer shall insert in solicitations and contracts the clause at 52.247-38, F.o.b. Inland Carrier, Point of Exportation, when the delivery term is f.o.b. inland carrier, point of exportation.