47.303-16 F.o.b. designated air carrier’s terminal, point of importation
Source: FAR 47.303-16 on acquisition.gov
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.
(a) Explanation of delivery term."F.o.b. designated air carrier’s terminal, point of importation" means free of expense to the Government delivered to the air carrier’s terminal at the point of importation 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;
(2) Prepare and distribute bills of lading or air waybills;
(3)
(i) Deliver the shipment in good order and condition to the point of delivery specified in the contract; and
(ii) Pay and bear all charges incurred up to the point of delivery specified in the contract, including transportation costs; export, import, or other fees or taxes; cost of landing, if any; customs duties; and costs of certificates of origin, consular invoices, or other documents that may be required for exportation or importation; and
(4) Be responsible for any loss of and/or damage to the goods until delivery of the goods to the Government at the designated air carrier’s terminal.
(c) Contract clause. The contracting officer shall insert in solicitations and contracts the clause at 52.247-44, F.o.b. Designated Air Carrier’s Terminal, Point of Importation, when the delivery term is f.o.b. designated air carrier’s terminal, point of importation.