FAR 47.303-12—Ex dock, pier, or warehouse, port of importation.
Plain-English Summary
FAR 47.303-12 defines the delivery term "ex dock, pier, or warehouse, port of importation" and explains what it means for the Government and the contractor in an international shipment. The section covers the meaning of the term as a free-on-delivery obligation at the named dock, pier, or warehouse in the specified port of importation, the contractor’s packing and marking duties, the contractor’s obligation to prepare the shipment for ocean transport when no special specifications are provided, the requirement to deliver the shipment in good order and condition, the contractor’s responsibility for all charges up to the delivery point, and the contractor’s risk of loss or damage before delivery. It also tells the contracting officer to include the prescribed clause at 52.247-40 when this delivery term is used. In practice, this section allocates transportation risk and cost to the contractor until the shipment reaches the designated import point, which is important for pricing, insurance, customs handling, and claims management. It helps avoid disputes by making clear who pays freight, duties, taxes, wharfage, landing charges, and documentation costs, and by identifying when responsibility transfers to the Government.
Key Rules
Delivery is free to Government
The term means the shipment must be delivered free of expense to the Government at the designated dock, pier, or warehouse in the specified port of importation. The contractor must get the goods to that exact point before the Government’s delivery obligation is satisfied.
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 a way that conforms to carrier requirements and protects the goods.
Deliver in good condition
The contractor must deliver the shipment in good order and condition. This means the contractor is responsible for ensuring the shipment arrives at the delivery point without avoidable deterioration, damage, or other condition issues attributable before delivery.
Contractor bears all charges to delivery point
The contractor must pay all charges up to the specified delivery point, including transportation costs, export and import fees or taxes, wharfage and landing charges, customs duties, and costs of certificates of origin, consular invoices, and similar required documents.
Risk stays with contractor until delivery
The contractor is responsible for any loss of or damage to the goods occurring before delivery to the contract’s specified point. Risk does not shift to the Government until the shipment is delivered at the designated dock, pier, or warehouse.
Insert required clause
When this delivery term is used, the contracting officer must include the clause at FAR 52.247-40, Ex Dock, Pier, or Warehouse, Port of Importation, in the solicitation and contract.
Responsibilities
Contracting Officer
Use this delivery term only when appropriate for the acquisition and insert FAR 52.247-40 in the solicitation and contract whenever the term is used. The contracting officer should ensure the delivery point is clearly identified so the contractor understands where cost and risk end.
Contractor
Pack and mark the shipment properly, prepare it for ocean transport if no specifications are provided, deliver the goods in good order and condition, pay all charges up to the delivery point, obtain and pay for required export/import documents, and bear the risk of loss or damage before delivery.
Government
Accept delivery only at the designated dock, pier, or warehouse in the specified port of importation and recognize that the contractor bears costs and risk until that point. The Government should verify that the contract includes the required clause and that the delivery term is stated consistently.
Practical Implications
This term places most transportation and import-related cost risk on the contractor, so contractors must price freight, duties, taxes, documentation, and handling charges into the offer.
The exact delivery point matters. If the port, dock, pier, or warehouse is not clearly identified, disputes can arise over when delivery occurred and who is responsible for damage or delay.
Contractors should confirm carrier, customs, and port requirements early because missing documents or improper packaging can leave them liable for delays, penalties, or cargo damage.
The Government should not assume it bears import-related costs under this term; the contractor is responsible for those charges until delivery at the specified point.
Failure to include FAR 52.247-40 when required is a common compliance error and can create ambiguity about the parties’ obligations and risk allocation.
Official Regulatory Text
(a) Explanation of delivery term. "Ex dock, pier, or warehouse, port of importation" means free of expense to the Government delivered on the designated dock or pier or in the warehouse at the specified port of importation. (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 shipment in good order and condition; and (ii) Pay and bear all charges up to the point of delivery specified in the contract, including transportation costs; export, import, or other fees or taxes; costs of wharfage and 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 (3) 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. (c) Contract clause. The contracting officer shall insert in solicitations and contracts the clause at 52.247-40 , Ex Dock, Pier, or Warehouse, Port of Importation, when the delivery term is ex dock, pier, or warehouse, port of importation.