FAR 52.247-39—F.o.b. Inland Point, Country of Importation.
Plain-English Summary
FAR 52.247-39 sets the rules for a specific delivery term: f.o.b. inland point, country of importation. It explains what that term means in practice, namely that the contractor must deliver the shipment free of expense to the Government to the specified inland point in the country of importation, on board the appropriate inland carrier conveyance, at the consignee’s facility. The clause also allocates packaging and marking duties, transportation and handling costs, import-related charges, customs and documentation expenses, and the risk of loss or damage before delivery. In effect, it tells both parties who is responsible for getting the goods through the importation and inland delivery process and who pays the associated costs. This matters because the clause shifts significant logistical, financial, and risk responsibilities to the contractor until the shipment reaches the named inland destination. It is used only when the solicitation or contract specifically uses this delivery term, so it is a delivery-term clause with direct consequences for pricing, shipping arrangements, customs compliance, and claims for loss or damage.
Key Rules
Meaning of the delivery term
The clause defines f.o.b. inland point, country of importation as delivery free of expense to the Government, on board the indicated type of carrier conveyance, at the specified inland point where the consignee’s facility is located. This definition establishes the exact delivery point and makes clear that the contractor’s obligation continues until that inland destination is reached.
Packaging and marking duty
The contractor must pack and mark the shipment to comply with 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.
Delivery to inland point
The contractor must deliver the shipment in or on the inland carrier’s conveyance in good order and condition to the specified inland point. Delivery is not complete until the shipment reaches the named destination and is in the required condition.
Costs borne by contractor
The contractor must pay and bear all applicable charges incurred up to the point of delivery. The clause specifically includes transportation costs, export and import fees or taxes, landing costs, wharfage, customs duties, and the costs of certificates of origin, consular invoices, and other importation documents.
Risk of loss remains with contractor
The contractor is responsible for any loss of or damage to the goods until arrival on or in the carrier’s conveyance at the specified inland point. This means the contractor retains risk during transit and handling up to the contractual delivery point.
Responsibilities
Contractor
Pack and mark the shipment according to contract specifications, or if none exist, prepare it for ocean transportation in a manner that protects the goods and meets carrier requirements. Arrange and complete delivery to the specified inland point in the country of importation, pay all charges up to that point, obtain and pay for required import/export documents and fees, and bear the risk of loss or damage until the shipment arrives at the designated inland destination.
Government/Consignee
Receive the shipment at the specified inland point where the consignee’s facility is located. The Government’s practical responsibility is limited to accepting delivery at the contractually designated point, because the clause places pre-delivery transportation, documentation, and risk obligations on the contractor.
Contracting Officer
Use this clause only when the solicitation or contract delivery term is f.o.b. inland point, country of importation, and ensure the contract clearly identifies the inland point and any applicable specifications. The contracting officer should also make sure the delivery term aligns with the intended allocation of shipping costs, customs responsibilities, and risk.
Practical Implications
This clause can materially affect price because the contractor must include inland transportation, customs-related charges, and documentation costs in the offer price.
The exact inland point matters a great deal; if the destination is not clearly identified, disputes can arise over when delivery is complete and who bears transit risk.
Contractors should coordinate early with carriers, customs brokers, and logistics providers because they are responsible for importation-related paperwork and charges before delivery.
If the contract lacks packaging or marking specifications, the contractor must still use commercially reasonable protection for ocean transport, so poor packing can create liability for damage.
A common pitfall is assuming risk shifts at the port or border; under this clause, the contractor remains responsible until the shipment reaches the specified inland point in the carrier’s conveyance.
Official Regulatory Text
As prescribed in 47.303-11 (c) , insert the following clause in solicitations and contracts when the delivery term is f.o.b. inland point, country of importation: F.o.b. Inland Point, Country of Importation (Apr 1984) (a) The term "f.o.b. inland point, country of importation," as used in this clause, 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) 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; and (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. (End of clause)