52.247-40 Ex Dock, Pier, or Warehouse, Port of Importation
Source: FAR 52.247-40 on acquisition.gov
Contractors must deliver goods to the specified port location at no cost or risk to the Government until delivery is complete, covering all charges and liabilities up to that point.
Overview
- FAR 52.247-40 defines the contractor's obligations when the delivery term is "ex dock, pier, or warehouse, port of importation." This clause requires contractors to deliver goods to a specified location at the port of importation, free of expense to the Government up to that point. It clarifies responsibilities for packing, marking, delivery, and payment of all charges up to the delivery point, as well as liability for loss or damage prior to delivery.
Key Rules
- Definition of Delivery Term
- "Ex dock, pier, or warehouse, port of importation" means the contractor delivers goods, at no cost to the Government, to the specified dock, pier, or warehouse at the port of importation.
- Packing and Marking
- Contractors must pack and mark shipments per contract specifications, or, if unspecified, according to ocean carrier requirements to protect the goods.
- Delivery and Charges
- Contractors must deliver goods in good order and condition and pay all charges (transportation, fees, taxes, wharfage, customs duties, documentation) up to the specified delivery point.
- Risk of Loss
- Contractors are responsible for any loss or damage to goods before delivery at the specified point.
Responsibilities
- Contracting Officers: Ensure the clause is included in applicable contracts and that delivery terms are clearly specified.
- Contractors: Must comply with all packing, marking, delivery, payment, and risk of loss requirements up to the delivery point.
- Agencies: Oversee contract compliance and verify that goods are delivered as specified.
Practical Implications
- This clause ensures the Government receives goods at the port of importation without incurring additional costs or risks prior to delivery. Contractors must carefully manage logistics, documentation, and risk up to the delivery point. Common pitfalls include misunderstanding the extent of contractor responsibility for charges and risk of loss before delivery.
As prescribed in 47.303-12(c), insert the following clause in solicitations and contracts when the delivery term is ex dock, pier, or warehouse, port of importation:
Ex Dock, Pier, or Warehouse, Port of Importation (Apr 1984)
(a) The term "ex dock, pier, or warehouse, port of importation," as used in this clause, means free of expense to the Government delivered on the designated dock or pier or in the warehouse at the specified port of importation.
(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;
(2)
(i) Deliver shipment in good order and condition; and
(ii) Pay and bear all charges up to the point of delivery specified in the contract, including transportation costs; export, import, or other fees or taxes; costs of wharfage and 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
(3) Be responsible for any loss of and/or damage to the goods occurring before delivery of the shipment to the point of delivery specified in the contract.
(End of clause)