FAR 47.303-11—F.o.b. inland point, country of importation.
Plain-English Summary
FAR 47.303-11 explains the delivery term "f.o.b. inland point, country of importation" and tells the parties what that term means in practice. It covers the point at which delivery is considered complete, the contractor’s packing and marking duties, the contractor’s obligation to move the shipment to the named inland destination in the country of importation, and the allocation of transportation-related costs, taxes, duties, fees, and documentation expenses up to that point. It also assigns the contractor responsibility for loss or damage until the goods arrive on or in the inland carrier’s conveyance at the specified inland point. Finally, it directs the contracting officer to include the prescribed FAR clause at 52.247-39 when this delivery term is used. In practical terms, this section matters because it defines who bears risk and cost during the international movement of goods and prevents disputes over freight charges, customs costs, and delivery completion.
Key Rules
Delivery ends at inland point
The term means free of expense to the Government, delivered on board the indicated carrier at the specified inland point where the consignee’s facility is located. Delivery is not complete until the shipment reaches that inland destination in the carrier’s conveyance.
Pack and mark properly
The contractor must pack and mark the shipment to meet contract specifications. If the contract does not provide specifications, the contractor must prepare the shipment for ocean transportation in accordance with carrier requirements to protect the goods.
Pay charges through delivery
The contractor must pay all applicable charges incurred up to the point of delivery, including transportation costs, export and import fees or taxes, landing costs, wharfage, customs duties, and costs of certificates of origin, consular invoices, and other importation documents.
Bear transit risk
The contractor remains responsible for any loss of or damage to the goods until they arrive on or in the carrier’s conveyance at the specified inland point. Risk shifts only when the shipment reaches that delivery point in the required condition.
Use required clause
When this delivery term is used, the contracting officer must insert FAR clause 52.247-39, F.o.b. Inland Point, Country of Importation, in the solicitation and contract.
Responsibilities
Contracting Officer
Use the f.o.b. inland point, country of importation term only when appropriate and insert FAR 52.247-39 in the solicitation and contract. The contracting officer should ensure the contract clearly identifies the inland point and any applicable delivery or packaging requirements.
Contractor
Pack and mark the shipment properly, arrange and complete delivery to the specified inland point in the country of importation, pay all charges and documentation costs up to that point, and bear the risk of loss or damage until the shipment arrives on or in the carrier’s conveyance at the destination.
Government/Consignee
Receive the shipment at the specified inland point and rely on the contract’s delivery term to determine when delivery is complete and when cost and risk transfer. The Government should verify that the contract identifies the correct destination and that the required clause is included.
Practical Implications
This term places most pre-delivery logistics and cost burden on the contractor, so pricing must account for freight, customs, taxes, documentation, and inland handling costs.
A common pitfall is confusing the inland point with an earlier port or border point; under this term, delivery is not complete until the shipment reaches the named inland destination.
Another frequent issue is inadequate packing or marking, especially when the contract lacks detailed specifications; the contractor still must prepare the shipment for ocean transport and protect the goods.
Because the contractor bears risk until arrival at the inland point, damage claims often turn on where and when the shipment was actually delivered and whether the goods were in good order at that time.
Contracting officers should make sure the contract language and clause match the intended delivery term, since missing or unclear terms can create disputes over responsibility for freight, duties, and loss.
Official Regulatory Text
(a) Explanation of delivery term. "F.o.b. inland point, country of importation" means free of expense to the Government, on board the indicated type of conveyance of the carrier, delivered to the specified inland point where the consignee’s facility is located. (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; (2) (i) Deliver, in or on the inland carrier’s conveyance, the shipment in good order and condition to the specified inland point where the consignee’s facility is located; (ii) Pay and bear all applicable charges incurred up to the point of delivery, including transportation costs; export, import, or other fees or taxes; costs of landing; wharfage costs; customs duties and costs of certificates of origin; consular invoices; and other documents that may be required for importation; and (3) Be responsible for any loss of and/or damage to the goods until their arrival on or in the carrier’s conveyance at the specified inland point. (c) Contract clause. The contracting officer shall insert in solicitations and contracts the clause at 52.247-39 , F.o.b. Inland Point, Country of Importation, when the delivery term is f.o.b. inland point, country of importation.