52.247-43
F.o.b. Designated Air Carrier’s Terminal, Point of Exportation
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.