47.303-15 F.o.b. designated air carrier’s terminal, point of exportation
Source: FAR 47.303-15 on acquisition.gov
Contractors must deliver goods, properly prepared and documented, to the specified air carrier’s terminal for export at no expense to the Government, and are responsible for the goods until that point.
Overview
FAR 47.303-15 defines the responsibilities and requirements for contracts specifying delivery terms as "F.o.b. designated air carrier’s terminal, point of exportation." Under this term, the contractor is responsible for delivering goods, at no expense to the Government, to the specified air carrier’s terminal for export. The contractor must ensure proper packing, marking, and timely delivery, and is liable for the goods until they are handed over to the air carrier. The regulation also requires the use of a specific contract clause (FAR 52.247-43) in applicable solicitations and contracts.
Key Rules
- Definition of Delivery Term
- "F.o.b. designated air carrier’s terminal, point of exportation" means the contractor delivers goods, free of expense to the Government, to the specified air carrier’s terminal for export, either loaded aboard the aircraft or delivered to the carrier’s custody.
- Contractor Responsibilities
- Contractors must pack and mark shipments per contract or carrier requirements, deliver goods in good order, provide clean shipping documents, and bear all costs up to the delivery point.
- Risk of Loss
- The contractor is responsible for any loss or damage to goods before delivery to the specified point.
- Assistance with Export Documentation
- Upon Government request and at its expense, the contractor must assist in obtaining export documents.
- Mandatory Contract Clause
- Contracting officers must include FAR 52.247-43 in contracts using this delivery term.
Responsibilities
- Contracting Officers: Must include the specified clause in relevant contracts.
- Contractors: Must ensure proper preparation, delivery, documentation, and risk management up to the air carrier’s terminal.
- Agencies: Oversee compliance and may request export documentation assistance.
Practical Implications
- This section clarifies the point at which contractor responsibility for goods ends and the Government’s begins, reducing disputes over loss or damage in transit. Contractors must be diligent in preparing shipments and documentation, as failure to comply can result in liability or payment issues. Proper understanding of these terms is critical for successful international shipments under government contracts.
(a) Explanation of delivery term."F.o.b. designated air carrier’s terminal, point of exportation" means free of expense to the Government loaded aboard the aircraft, or delivered to the custody of the air carrier (if only the air carrier performs the loading), at the air carrier’s terminal specified in the contract.
(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 air transportation in conformance with carrier requirements to protect the goods and to ensure assessment of the lowest applicable transportation charge;
(2)
(i) Deliver the shipment in good order and condition into the conveyance of the carrier, or to the custody of the carrier (if only the carrier performs the loading), at the point of delivery and on the date or within the period specified in the contract; and
(ii) Pay and bear all applicable charges up to this point;
(3) Provide a clean bill of lading and/or air waybill;
(4) Be responsible for any loss of and/or damage to the goods occurring before delivery of the goods to the point specified in the contract; and
(5) At the Government’s request and expense, assist in obtaining the documents required for the purpose of exportation.
(c) Contract clause. The contracting officer shall insert in solicitations and contracts the clause at 52.247-43. F.o.b. Designated Air Carrier’s Terminal, Point of Exportation, when the delivery term is f.o.b. designated air carrier’s terminal, point of exportation.