52.247-43 F.o.b. Designated Air Carrier’s Terminal, Point of Exportation
Source: FAR 52.247-43 on acquisition.gov
Contractors must deliver goods to the specified air carrier’s terminal for export, bearing all costs and risks up to that point, and provide proper documentation as required by the contract.
Overview
- FAR 52.247-43 establishes the requirements for contractors when the delivery term is "f.o.b. designated air carrier’s terminal, point of exportation." This clause defines the contractor’s responsibilities for preparing, delivering, and transferring goods to an air carrier at a specified terminal for export, ensuring the Government incurs no expense until the goods are loaded or delivered to the air carrier’s custody.
Key Rules
- Definition of Delivery Point
- Delivery is complete when goods are loaded aboard the aircraft or delivered to the air carrier’s custody at the specified terminal, free of expense to the Government.
- Contractor Packing and Marking
- Contractors must pack and mark shipments per contract specifications or, if absent, per carrier requirements to protect goods and minimize transportation charges.
- Timely and Proper Delivery
- Contractors must deliver goods in good order to the carrier at the specified location and time, bearing all costs up to this point.
- Documentation
- Contractors must provide a clean bill of lading and/or air waybill.
- Risk of Loss
- Contractors are responsible for loss or damage to goods before delivery to the specified point.
- Export Documentation Assistance
- Upon Government request and at its expense, contractors must assist in obtaining export documents.
Responsibilities
- Contracting Officers: Ensure the clause is included in applicable contracts and verify contractor compliance.
- Contractors: Fulfill all packing, marking, delivery, documentation, and risk obligations as specified.
- Agencies: Request export documentation assistance as needed and reimburse related costs.
Practical Implications
- This clause clarifies the point at which risk and cost transfer from contractor to Government, reducing disputes over responsibility. Contractors must be diligent in preparing shipments and documentation, as failure to comply can result in liability for loss, damage, or additional costs. Common pitfalls include improper packing, late delivery, or incomplete documentation.
As prescribed in 47.303-15(c), insert the following clause in solicitations and contracts when the delivery term is f.o.b. designated air carrier’s terminal, point of exportation:
F.o.b. Designated Air Carrier’s Terminal, Point of Exportation (Feb 2006)
(a) The term "f.o.b. designated air carrier’s terminal, point of exportation," as used in this clause, means free of expense to the Government loaded aboard the aircraft, or delivered to the custody of the air carrier (if only the air carrier performs the loading), at the air carrier’s terminal specified in the contract.
(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 air transportation in conformance with carrier requirements to protect the goods and to ensure assessment of the lowest applicable transportation charge;
(2)
(i) Deliver the shipment in good order and condition into the conveyance of the carrier, or to the custody of the carrier (if only the carrier performs the loading), at the point of delivery and on the date or within the period specified in the contract; and
(ii) Pay and bear all applicable charges up to this point;
(3) Provide a clean bill of lading and/or air waybill;
(4) Be responsible for any loss of and/or damage to the goods occurring before delivery of the goods to the point specified in the contract; and
(5) At the Government’s request and expense, assist in obtaining the documents required for the purpose of exportation.
(End of clause)