FAR 47.303-10—F.o.b. inland carrier, point of exportation.
Plain-English Summary
FAR 47.303-10 explains the delivery term "f.o.b. inland carrier, point of exportation" and how it allocates shipping responsibility when goods are moving toward export. It defines the term as delivery free of expense to the Government, on board the inland carrier, at the specified export point, and then spells out the contractor’s duties for packing and marking, preparing commercial bills of lading, delivering the shipment in good order and condition, paying transportation charges to the contract’s delivery point, and bearing loss or damage before delivery. It also addresses the contractor’s duty to help obtain export or import documents when the Government requests that assistance and pays for it. Finally, it requires the contracting officer to include the prescribed clause at 52.247-38 in solicitations and contracts when this delivery term is used. In practice, this section matters because it determines who controls the shipment, who pays which transportation costs, when risk of loss shifts, and what paperwork is needed for export-related movement.
Key Rules
Meaning of the delivery term
"F.o.b. inland carrier, point of exportation" means the Government receives the shipment free of expense when it is placed on the inland carrier at the specified export point. The term fixes the delivery point and makes clear that the contractor must get the goods to that point on the required terms.
Proper packing and marking
The contractor must pack and mark the shipment to meet contract specifications. If the contract does not give packing instructions, the contractor must prepare the shipment for ocean transportation in a way that protects the goods and supports the lowest applicable transportation charge.
Bills of lading required
The contractor must prepare and distribute commercial bills of lading. This ensures the shipment is documented properly for transportation, carrier handling, and export processing.
Delivery and transportation charges
The contractor must deliver the shipment in good order and condition on the date or within the period specified, and must pay and bear all applicable charges, including transportation costs, up to the contract’s delivery point. The contractor cannot shift those costs to the Government unless the contract says otherwise.
Risk of loss before delivery
The contractor is responsible for any loss of or damage to the goods occurring before delivery to the specified point of delivery. Risk remains with the contractor until the shipment is delivered as required under the contract term.
Export and import document assistance
At the Government’s request, and at the Government’s expense, the contractor must assist in obtaining documents needed for exportation or importation at destination. This is an assistance obligation, not a blanket duty to absorb those document-related costs.
Mandatory clause insertion
When the contract uses this delivery term, the contracting officer must insert the clause at 52.247-38, F.o.b. Inland Carrier, Point of Exportation, in the solicitation and contract. The clause makes the delivery obligations enforceable in the contract file and award documents.
Responsibilities
Contracting Officer
Use the correct delivery term when appropriate and insert clause 52.247-38 in solicitations and contracts whenever the delivery term is f.o.b. inland carrier, point of exportation. The contracting officer should ensure the contract clearly identifies the specified point of exportation and any related delivery details.
Contractor
Pack and mark the shipment properly, prepare and distribute commercial bills of lading, deliver the shipment in good order and condition at the required time and place, pay all applicable transportation and related charges to the delivery point, bear risk of loss or damage before delivery, and assist with export or import documents when requested by the Government and at Government expense.
Government
Specify the delivery point and any contract packing requirements, and reimburse the contractor for assistance requested in obtaining export or import documents. The Government also relies on the contractor to deliver the shipment to the inland carrier at the export point under the agreed terms.
Practical Implications
This term places significant logistics responsibility on the contractor, so contractors need to understand carrier requirements, export handling, and cost exposure before pricing the work.
If the contract does not include clear packing instructions, the contractor must still prepare the shipment for ocean transport and protect the goods; poor packaging can create both damage risk and cost disputes.
Because the contractor bears loss or damage before delivery, documentation of condition, handoff, and carrier receipt is critical to resolving claims or disputes.
The clause requirement is easy to overlook, but failing to include 52.247-38 can create contract administration problems and ambiguity about delivery obligations.
Requests for export or import documents should be handled carefully: the contractor must assist, but the Government pays for that assistance, so the parties should track the request and associated costs.
Official Regulatory Text
(a) Explanation of delivery term. "F.o.b. inland carrier, point of exportation" means free of expense to the Government, on board the conveyance of the inland carrier, delivered to the specified point of exportation. (b) Contractor responsibilities. 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 and to ensure assessment of the lowest applicable transportation charge; (2) Prepare and distribute commercial bills of lading; (3) (i) Deliver the shipment in good order and condition in or on the conveyance of the carrier on the date or within the period specified; and (ii) Pay and bear all applicable charges, including transportation costs, to the point of delivery specified in the contract; (4) 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; and (5) At the Government’s request and expense, assist in obtaining the documents required for- (i) Exportation; or (ii) Importation at destination. (c) Contract clause. The contracting officer shall insert in solicitations and contracts the clause at 52.247-38 , F.o.b. Inland Carrier, Point of Exportation, when the delivery term is f.o.b. inland carrier, point of exportation.