47.303-16
F.o.b. designated air carrier’s terminal, point of importation
Contractors must deliver goods to the specified air carrier terminal at the point of importation, bearing all costs and risks up to that point, and ensure proper documentation and packaging.
Overview
- FAR 47.303-16 defines the responsibilities and requirements for contracts specifying delivery terms as "F.o.b. designated air carrier’s terminal, point of importation." This means the contractor must deliver goods, at no expense to the Government, to the specified air carrier terminal at the point of importation.
Key Rules
- Definition of Delivery Term
- "F.o.b. designated air carrier’s terminal, point of importation" requires contractors to deliver goods free of expense to the Government at the specified air carrier terminal.
- Contractor Responsibilities
- Contractors must pack and mark shipments per contract or carrier requirements, prepare and distribute shipping documents, deliver goods in good order, pay all costs up to the delivery point, and bear risk of loss until delivery.
- Contract Clause Requirement
- Contracting officers must include clause 52.247-44 in solicitations and contracts using this delivery term.
Responsibilities
- Contracting Officers: Must ensure the correct clause (52.247-44) is included in applicable contracts.
- Contractors: Must handle all logistics, costs, documentation, and risk of loss up to the designated terminal.
- Agencies: Oversee compliance with delivery and documentation requirements.
Practical Implications
- This section clarifies who is responsible for costs, logistics, and risk during international air shipments. Contractors must be diligent in preparing shipments and documentation, and in understanding all costs and risks up to the point of importation. Failure to comply can result in disputes or additional costs.