FAR 47.303-13—C. & f. destination.
Plain-English Summary
FAR 47.303-13 explains the delivery term "C.&f. (cost & freight) destination" and how it allocates shipping responsibility between the contractor and the Government when ocean transportation is used. It defines the term as delivery free of expense to the Government once the shipment is placed on board the ocean vessel at the specified point of destination, with transportation costs paid by the contractor. The section then spells out the contractor’s duties for packing and marking, preparing the shipment for ocean transport, delivering the goods in good order and condition, paying all charges to the destination including transportation costs and export-related taxes or fees, obtaining and promptly sending clean on-board ocean bills of lading, bearing loss or damage before delivery, and providing origin/shipping documents when requested and paid for by the Government. It also addresses documentary support for importation, such as certificates of origin and consular invoices, and makes clear that the contracting officer must include the prescribed clause at 52.247-41 when this delivery term is used. In practice, this section matters because it determines who bears risk, who pays freight and export charges, what shipping documents must be produced, and what contract language must be included to make the term enforceable and clear.
Key Rules
Meaning of C.&f. destination
This delivery term means the Government receives the shipment free of expense once it is delivered on board the ocean vessel at the specified destination point, while the contractor pays the transportation cost. The term is tied to ocean shipment and allocates freight responsibility to the contractor.
Packing and marking duties
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.
Delivery and charge payment
The contractor must deliver the shipment in good order and condition and pay all applicable charges to the named destination. This includes transportation costs and any export taxes or other fees or charges imposed because of exportation.
Bill of lading requirement
The contractor must obtain clean on-board ocean bills of lading and dispatch them promptly to the Government. This document requirement is important because it evidences shipment on board the vessel and supports Government receipt and tracking.
Risk of loss before delivery
The contractor is responsible for any loss of or damage to the goods occurring before delivery. This means the contractor bears the shipping risk up to the point required by the delivery term.
Origin and import documents
At the Government’s request and expense, the contractor must provide certificates of origin, consular invoices, or other documents issued in the country of origin or shipment that may be needed for importation into the destination country. The Government pays for these documents when requested.
Required contract clause
When the delivery term is C.&f. destination, the contracting officer must insert the clause at 52.247-41, C.&f. Destination, in the solicitation and contract. This ensures the delivery term and related obligations are incorporated into the contract.
Responsibilities
Contractor
Pack and mark the shipment to contract specifications, or if none exist, prepare it for ocean transportation under carrier requirements. Deliver the shipment in good order and condition, pay transportation costs and export-related charges to the destination, obtain and promptly send clean on-board ocean bills of lading, bear loss or damage before delivery, and provide origin/import documents when requested by the Government at Government expense.
Contracting Officer
Use the C.&f. destination term only when appropriate for the acquisition and insert clause 52.247-41 in the solicitation and contract whenever this delivery term is used. The contracting officer should ensure the contract clearly states the destination point and aligns the shipping term with the intended allocation of cost, risk, and documentation duties.
Government
Receive the shipment free of expense under the delivery term, and if it requests certificates of origin, consular invoices, or similar documents, pay the associated cost. The Government also relies on the contractor’s bills of lading and shipping documents to confirm shipment and support importation.
Practical Implications
This term shifts freight and pre-delivery shipping risk to the contractor, so contractors should price transportation, export fees, and potential loss exposure into their offers.
Clean on-board ocean bills of lading are critical; delays or defects in these documents can create payment, tracking, and import-clearance problems.
If the contract lacks packing or marking specifications, the contractor must still meet carrier requirements, so weak internal shipping controls can lead to damage or noncompliance.
The Government may need origin or consular documents for customs clearance, but it pays for them only when it requests them, so parties should coordinate document needs early.
Contracting officers should not use this term casually; the destination point, ocean shipment requirement, and clause insertion must all be consistent to avoid disputes over delivery, risk, and charges.
Official Regulatory Text
(a) Explanation of delivery term. "C.&f. (cost & freight) destination" means free of expense to the Government delivered on board the ocean vessel to the specified point of destination, with the cost of transportation paid by the contractor. (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; (2) (i) Deliver the shipment in good order and condition; and (ii) Pay and bear all applicable charges to the point of destination specified in the contract, including transportation costs and export taxes or other fees or charges levied because of exportation; (3) Obtain and dispatch promptly to the Government clean on-board ocean bills of lading to the specified point of destination. (4) Be responsible for any loss of and/or damage to the goods occurring before delivery; and (5) At the Government’s request and expense, provide certificates of origin, consular invoices, or any other documents issued in the country of origin or of shipment, or both, that may be required for importation into the country of destination. (c) Contract clause. The contracting officer shall insert in solicitations and contracts the clause at 52.247-41 , C.&f. Destination, when the delivery term is c.&f. (Cost & freight) destination.