52.247-44 F.o.b. Designated Air Carrier’s Terminal, Point of Importation
Source: FAR 52.247-44 on acquisition.gov
Contractors must deliver goods, fully prepared and documented, to the specified air carrier’s terminal at the point of importation, bearing all costs and risks up to that point.
Overview
FAR 52.247-44 establishes the requirements for deliveries made under the term "f.o.b. designated air carrier’s terminal, point of importation." This clause is used when the Government requires goods to be delivered to a specified air carrier’s terminal at a point of importation, with all expenses up to that point borne by the contractor. The regulation outlines the contractor’s responsibilities for packaging, documentation, delivery, payment of charges, and risk of loss until the goods are delivered to the Government at the designated terminal.
Key Rules
- Definition of Delivery Point
- Delivery is considered complete when goods are delivered, free of expense to the Government, to the specified air carrier’s terminal at the point of importation.
- Contractor Packaging and Marking
- Contractors must pack and mark shipments according to contract specifications or, if absent, in accordance with carrier requirements for air transport.
- Documentation
- Contractors are responsible for preparing and distributing bills of lading or air waybills.
- Delivery and Charges
- Contractors must deliver goods in good order to the specified terminal and pay all costs up to that point, including transportation, taxes, duties, and documentation fees.
- Risk of Loss
- Contractors bear the risk of loss or damage until the goods are delivered to the Government at the designated terminal.
Responsibilities
- Contracting Officers: Ensure the clause is included in applicable contracts and verify contractor compliance.
- Contractors: Fulfill all delivery, documentation, and cost obligations up to the designated terminal; maintain risk of loss until delivery.
- Agencies: Oversee contract performance and ensure proper receipt of goods at the specified terminal.
Practical Implications
This clause clarifies the point at which the Government assumes responsibility for goods and ensures contractors cover all costs and risks up to the designated air carrier’s terminal. It is critical for contractors to understand their obligations regarding packaging, documentation, and payment of fees to avoid disputes and ensure smooth importation processes.
As prescribed in 47.303-16(c), insert the following clause in solicitations and contracts when the delivery term is f.o.b. designated air carrier’s terminal, point of importation:
F.o.b. Designated Air Carrier’s Terminal, Point of Importation (Apr 1984)
(a) The term "f.o.b. designated air carrier’s terminal, point of importation," as used in this clause, means free of expense to the Government delivered to the air carrier’s terminal at the point of importation 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;
(2) Prepare and distribute bills of lading or air waybills;
(3)
(i) Deliver the shipment in good order and condition to the point of delivery specified in the contract; and
(ii) Pay and bear all charges incurred up to the point of delivery specified in the contract, including transportation costs; export, import, or other fees or taxes; cost of 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
(4) Be responsible for any loss of and/or damage to the goods until delivery of the goods to the Government at the designated air carrier’s terminal.
(End of clause)