FAR 47.304-4—Shipments originating outside CONUS.
Plain-English Summary
FAR 47.304-4 addresses how the Government should structure acquisitions of supplies that originate outside the continental United States (CONUS) when those supplies will ultimately be delivered to a destination within CONUS or elsewhere. It covers the required use of either f.o.b. origin or f.o.b. destination terms, the rule that the choice must be the one most advantageous to the Government, and the limited exception for valid reasons to do otherwise by reference to FAR 47.304-5. It also directs the contracting officer to consult the transportation officer when deciding the delivery point to be stated in the acquisition documents. In doing so, the section requires consideration of Government transportation facilities, reduced transportation rates, special licensing or customs requirements, and the availability of U.S.-flag shipping services under subpart 47.5. In practice, this section is about making sure overseas-origin shipments are planned with transportation, customs, and shipping constraints in mind so the Government selects the delivery term and delivery point that minimize cost, avoid compliance problems, and support efficient movement of goods.
Key Rules
Use the most advantageous FOB term
For supplies originating outside CONUS and destined for delivery within CONUS or elsewhere, the acquisition must be based on either f.o.b. origin or f.o.b. destination. The contracting officer must choose the term that is most advantageous to the Government, regardless of shipment quantity.
Exceptions require valid reasons
The rule is not absolute; valid reasons to depart from the standard approach are addressed in FAR 47.304-5. Any deviation should be supportable and tied to the circumstances of the acquisition.
Consult transportation expertise
The contracting officer must request advice from the transportation officer before fixing the delivery point in the acquisition documents. This consultation is mandatory and is intended to ensure the delivery point reflects transportation realities and cost impacts.
Consider Government transportation options
When selecting the delivery point, the contracting officer must give full consideration to possible use of Government transportation facilities. This includes whether Government-controlled or Government-supported transportation can improve efficiency or reduce cost.
Account for rates, licensing, customs, and U.S.-flag service
The contracting officer must also consider reduced transportation rates, special licensing or customs requirements, and the availability of U.S.-flag shipping services between the points involved. These factors can materially affect cost, timing, and compliance, and subpart 47.5 provides additional guidance on U.S.-flag shipping.
Responsibilities
Contracting Officer
Determine whether the acquisition should be on an f.o.b. origin or f.o.b. destination basis, selecting the term most advantageous to the Government. Request advice from the transportation officer and use that advice to decide the delivery point to be stated in the acquisition documents, while considering transportation facilities, rates, licensing, customs, and U.S.-flag shipping availability.
Transportation Officer
Provide advice to the contracting officer on the most appropriate delivery point and transportation-related considerations, including Government transportation facilities, reduced rates, customs or licensing issues, and U.S.-flag shipping availability.
Agency/Acquisition Team
Support the contracting officer by identifying logistics constraints, customs or licensing requirements, and transportation options that may affect the delivery term and delivery point. Ensure acquisition planning reflects overseas-origin shipment realities and applicable transportation policy.
Contractor
If awarded the contract, comply with the delivery term and delivery point specified in the contract and coordinate shipment arrangements consistent with the agreed f.o.b. terms, customs requirements, and any transportation-related obligations.
Practical Implications
This section forces early logistics planning for overseas-origin supplies; the delivery term cannot be chosen casually because it can shift cost, risk, and responsibility between the Government and contractor.
A common pitfall is failing to consult the transportation officer before finalizing solicitation or contract language, which can lead to a poor delivery point choice or overlooked transportation constraints.
Another risk is ignoring customs, licensing, or U.S.-flag shipping issues until after award, when changes are harder and more expensive to make.
Contracting officers should document why the selected f.o.b. term and delivery point are most advantageous, especially if the acquisition departs from the default approach or involves unusual routing.
Contractors should review the stated delivery point and shipping requirements carefully, because overseas-origin shipments often involve additional coordination, documentation, and timing challenges.
Official Regulatory Text
(a) Unless there are valid reasons to the contrary (see 47.304-5 ), acquisition of supplies originating outside CONUS for ultimate delivery to destinations within CONUS or elsewhere, regardless of the quantity of the shipments, shall be on the basis of f.o.b. origin or f.o.b. destination, whichever is more advantageous to the Government. (b) The contracting officer shall request the advice of the transportation officer to determine the most appropriate place of delivery to be specified in acquisition documents, giving full consideration to the possible use of Government transportation facilities, reduced rates available, special licensing or custom requirements, and availability of U.S. flag shipping services between the points involved (see subpart 47.5 ).