52.247-42 C.i.f. Destination
Source: FAR 52.247-42 on acquisition.gov
FAR 52.247-42 requires contractors to deliver goods to the specified destination with all transportation and marine insurance costs paid, and to provide all necessary shipping and import documentation for c.i.f. destination contracts.
Overview
FAR 52.247-42, "C.i.f. Destination," defines the contractor's obligations when the delivery term is cost, insurance, and freight (c.i.f.) destination. Under this clause, the contractor must deliver goods to the specified destination on board an ocean vessel, with all transportation and marine insurance costs paid. The contractor is responsible for proper packing, marking, and preparing shipments for ocean transport, delivering goods in good order, and paying all charges to the destination, including export taxes. The contractor must also provide clean on-board ocean bills of lading, be liable for loss or damage before delivery, supply required import documents at the Government's request, and furnish marine insurance documentation as specified in the contract. This clause ensures the Government receives goods at the destination without incurring additional shipping or insurance costs, and clarifies contractor responsibilities for international ocean shipments.
Key Rules
- Definition of C.i.f. Destination
- Contractor delivers goods free of expense to the Government, on board an ocean vessel at the specified destination, with transportation and marine insurance costs paid.
- Packing and Marking
- Shipments must be packed and marked per contract specifications or, if absent, per carrier requirements.
- Delivery and Charges
- Goods must be delivered in good order, with all charges (including export taxes) paid to the destination.
- Documentation
- Contractor must provide clean on-board ocean bills of lading and, if requested, certificates of origin or consular invoices.
- Liability and Insurance
- Contractor is responsible for loss/damage before delivery and must provide marine insurance documentation as required.
Responsibilities
- Contracting Officers: Ensure the clause is included in relevant contracts and verify contractor compliance with delivery, documentation, and insurance requirements.
- Contractors: Fulfill all delivery, packing, documentation, and insurance obligations as specified in the clause.
- Agencies: Oversee contract performance and ensure all required documents and insurance are received.
Practical Implications
- This clause clarifies risk, cost, and documentation responsibilities for international ocean shipments, reducing disputes and ensuring the Government receives goods as intended. Contractors must be diligent in preparing shipments, managing logistics, and providing timely documentation. Common pitfalls include inadequate packing, missing documents, or insufficient insurance coverage, which can delay acceptance or result in financial liability.
As prescribed in 47.303-14(c), insert the following clause in solicitations and contracts when the delivery term is c.i.f. destination:
C.i.f. Destination (Apr 1984)
(a) The term "c.i.f. destination," as used in this clause, means free of expense to the Government delivered on board the ocean vessel to the specified point of destination, with the cost of transportation and marine insurance paid by the Contractor.
(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;
(2)
(i) Deliver the shipment in good order and condition; and
(ii) Pay and bear all applicable charges to the point of destination specified in the contract, including transportation costs and export taxes or other fees or charges levied because of exportation;
(3) Obtain and dispatch promptly to the Government clean on-board ocean bills of lading to the specified point of destination;
(4) Be responsible for any loss of and/or damage to the goods occurring before delivery;
(5) At the Government’s request and expense, provide certificates of origin, consular invoices, or any other documents issued in the country of origin or of shipment, or both, that may be required for importation into the country of destination; and
(6) Obtain and dispatch to the Government an insurance policy or certificate providing the amount and extent of marine insurance coverage specified in the contract or agreed upon by the Government Contracting Officer.
(End of clause)