FAR 47.303-15—F.o.b. designated air carrier’s terminal, point of exportation.
Plain-English Summary
FAR 47.303-15 explains the delivery term "F.o.b. designated air carrier’s terminal, point of exportation" and tells the parties how risk, packing, delivery, documentation, and export-support duties are allocated when goods are shipped by air for export. It defines what it means for delivery to be free of expense to the Government at the air carrier’s terminal, including when the contractor must load the aircraft versus when the carrier performs the loading and takes custody. The section then spells out the contractor’s responsibilities for packing and marking, preparing the shipment for air transport, delivering the goods in good order by the required date or period, paying charges up to the delivery point, providing a clean bill of lading and/or air waybill, and bearing loss or damage before delivery. It also addresses the contractor’s duty to assist with exportation documents when the Government requests that help and agrees to pay for it. Finally, it tells the contracting officer to include the prescribed clause at 52.247-43 in solicitations and contracts when this delivery term is used, making the rule operational in the contract itself. In practice, this section matters because it determines who bears transportation risk and cost before export, what shipping documents must be produced, and how the contract should be written to avoid disputes over delivery, damage, and export paperwork.
Key Rules
Defines the FOB delivery point
The term means the Government pays no expense once the shipment is loaded aboard the aircraft, or delivered to the carrier’s custody if the carrier alone performs loading, at the terminal named in the contract. The contract must identify the specific air carrier terminal that serves as the point of exportation.
Packing and marking duty
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 according to carrier requirements so the goods are protected and the lowest applicable transportation charge is obtained.
Delivery and cost responsibility
The contractor must deliver the shipment in good order and condition to the carrier or carrier custody at the required place and time. The contractor must also pay and bear all charges up to that delivery point.
Shipping documents required
The contractor must provide a clean bill of lading and/or air waybill. This ensures the shipment is documented properly for transportation and export processing.
Risk of loss before delivery
The contractor is responsible for any loss of or damage to the goods occurring before delivery to the contract-specified point. Risk shifts only when the shipment reaches the required carrier terminal/custody point.
Export-document assistance
At the Government’s request and expense, the contractor must assist in obtaining documents needed for exportation. This is a support obligation, not a blanket duty to absorb export-document costs.
Mandatory contract clause
When this delivery term is used, the contracting officer must insert the clause at 52.247-43 in the solicitation and contract. The clause makes the delivery term enforceable and aligns the contract with the FAR rule.
Responsibilities
Contracting Officer
Use this delivery term only when appropriate for the acquisition and insert the required clause at 52.247-43 in the solicitation and contract. Ensure the contract identifies the designated air carrier terminal and the point of delivery so the parties understand when risk and cost transfer.
Contractor
Pack and mark the shipment properly, prepare it for air transport if no specifications exist, deliver the goods in good order and condition to the carrier or carrier custody on time, pay all charges up to that point, provide a clean bill of lading and/or air waybill, bear loss or damage before delivery, and assist with export documents when requested and paid by the Government.
Government
Receive delivery at the designated carrier terminal/custody point and, if it requests export-document assistance, pay the contractor’s expense for that assistance. The Government also relies on the contract clause and delivery term to allocate risk and transportation responsibility correctly.
Air Carrier
Accept custody of the shipment at the designated terminal and, where applicable, perform loading of the aircraft. The carrier’s role affects when delivery is considered complete under this FOB term.
Practical Implications
This term shifts pre-delivery risk and cost to the contractor, so contractors should closely manage packaging, handling, and timing to avoid damage claims or late delivery issues.
The exact terminal named in the contract matters; if the location is vague or incorrect, disputes can arise over whether delivery was completed and when risk transferred.
A "clean" bill of lading or air waybill is important because defects in shipping documents can delay export processing or create problems with carrier acceptance and payment.
If the contract lacks packing specifications, the contractor must still meet carrier requirements and optimize for the lowest applicable transportation charge, so shipping decisions should be documented.
Export-document support is only required when the Government requests it and pays for it, so both sides should clarify scope and reimbursement expectations early to avoid misunderstandings.
Official Regulatory Text
(a) Explanation of delivery term. "F.o.b. designated air carrier’s terminal, point of exportation" means free of expense to the Government loaded aboard the aircraft, or delivered to the custody of the air carrier (if only the air carrier performs the loading), at the air carrier’s terminal specified in the contract. (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 air transportation in conformance with carrier requirements to protect the goods and to ensure assessment of the lowest applicable transportation charge; (2) (i) Deliver the shipment in good order and condition into the conveyance of the carrier, or to the custody of the carrier (if only the carrier performs the loading), at the point of delivery and on the date or within the period specified in the contract; and (ii) Pay and bear all applicable charges up to this point; (3) Provide a clean bill of lading and/or air waybill; (4) Be responsible for any loss of and/or damage to the goods occurring before delivery of the goods to the point specified in the contract; and (5) At the Government’s request and expense, assist in obtaining the documents required for the purpose of exportation. (c) Contract clause. The contracting officer shall insert in solicitations and contracts the clause at 52.247-43 . F.o.b. Designated Air Carrier’s Terminal, Point of Exportation, when the delivery term is f.o.b. designated air carrier’s terminal, point of exportation.