52.247-38 F.o.b. Inland Carrier, Point of Exportation
Source: FAR 52.247-38 on acquisition.gov
Contractors must deliver goods, fully prepared and documented, to the inland carrier at the exportation point at their own expense and risk until delivery is complete.
Overview
- FAR 52.247-38 defines the contractor’s responsibilities when the delivery term is "f.o.b. inland carrier, point of exportation." This clause ensures that the Government receives goods free of expense at the specified inland carrier point for export, and outlines the contractor’s obligations for packing, marking, documentation, delivery, and risk of loss prior to delivery.
Key Rules
- Definition of F.o.b. Inland Carrier, Point of Exportation
- The contractor must deliver goods, at no expense to the Government, on board the inland carrier at the specified exportation point.
- Packing and Marking
- Shipments must be packed and marked per contract specifications, or, if unspecified, prepared for ocean transport per carrier requirements to ensure protection and lowest charges.
- Documentation
- Contractors must prepare and distribute commercial bills of lading or other transportation receipts.
- Delivery and Charges
- Goods must be delivered in good order and condition, on time, and all charges to the delivery point are the contractor’s responsibility.
- Risk of Loss
- The contractor is responsible for loss or damage before delivery to the specified point.
- Assistance with Export/Import Documents
- Upon Government request and at its expense, the contractor must assist in obtaining export or import documents.
Responsibilities
- Contracting Officers: Ensure the clause is included in applicable contracts and verify contractor compliance.
- Contractors: Fulfill all delivery, packing, documentation, and risk of loss obligations as specified.
- Agencies: Oversee contract performance and request export/import documentation assistance as needed.
Practical Implications
- This clause clarifies delivery responsibilities and risk transfer for export shipments, reducing disputes over costs and liability. Contractors must be diligent in preparing shipments and documentation, as failure to comply can result in delays, additional costs, or claims for loss or damage prior to delivery.
As prescribed in 47.303-10(c), insert the following clause in solicitations and contracts when the delivery term is f.o.b. inland carrier, point of exportation:
F.o.b. Inland Carrier, Point of Exportation (Feb 2006)
(a) The term "f.o.b. inland carrier, point of exportation," as used in this clause, means free of expense to the Government, on board the conveyance of the inland carrier, delivered to the specified point of exportation.
(b) 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 or other transportation receipt;
(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 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.
(End of clause)