47.303-11
F.o.b. inland point, country of importation
Contractors must deliver goods to the specified inland point in the country of importation at their own risk and expense, ensuring all logistics, costs, and documentation are handled up to that point.
Overview
- FAR 47.303-11 defines the responsibilities and requirements for contracts specifying delivery terms as "F.o.b. inland point, country of importation." This means the contractor must deliver goods, free of expense to the Government, to a specified inland point in the country of importation, typically where the consignee’s facility is located.
Key Rules
- Definition of Delivery Term
- "F.o.b. inland point, country of importation" requires delivery on board the carrier’s conveyance at the specified inland point, with all costs up to that point borne by the contractor.
- Contractor Responsibilities
- Contractors must pack and mark shipments per contract specifications or, if absent, per carrier requirements for ocean transport.
- Delivery must be made in good order to the inland point, with the contractor paying all transportation, export/import fees, taxes, customs duties, and documentation costs up to delivery.
- The contractor is liable for loss or damage until goods arrive at the inland point.
- Contract Clause Requirement
- Contracting officers must include clause 52.247-39 in solicitations and contracts using this delivery term.
Responsibilities
- Contracting Officers: Ensure the correct clause (52.247-39) is included in contracts with this delivery term.
- Contractors: Must handle all logistics, costs, and risks up to the specified inland point and comply with packing, marking, and documentation requirements.
- Agencies: Oversee compliance with delivery and contractual obligations.
Practical Implications
- This section clarifies risk, cost, and responsibility allocation for international shipments delivered to inland points. Contractors must be diligent in logistics planning, cost estimation, and documentation to avoid non-compliance or unexpected expenses. Common pitfalls include underestimating inland transportation costs or failing to provide required import documentation.