FAR 52.247-40—Ex Dock, Pier, or Warehouse, Port of Importation.
Plain-English Summary
FAR 52.247-40 addresses the special delivery term "ex dock, pier, or warehouse, port of importation" and explains what that term means in a federal contract. The clause is used when the Government expects delivery free of expense at a designated dock, pier, or warehouse at the specified port of importation, rather than at an inland destination or under a different commercial shipping term. It sets out the contractor’s obligations for packing and marking, preparing the shipment for ocean transportation when no specifications exist, delivering the goods in good order and condition, and paying all charges up to the contract’s delivery point. The clause also allocates risk of loss and damage to the contractor until the shipment reaches the specified port-of-importation delivery point. In practice, this clause is important because it clarifies who bears transportation, customs, and related costs, and who is responsible if goods are damaged or lost before delivery is complete.
Key Rules
Meaning of delivery term
The clause defines "ex dock, pier, or warehouse, port of importation" as delivery free of expense to the Government at the designated dock, pier, or warehouse at the specified port of importation. This means the contractor must get the shipment to that exact point without charging the Government for the covered delivery costs.
Proper packing and marking
The contractor must pack and mark the shipment to comply with contract specifications. If the contract does not provide packing specifications, the contractor must prepare the shipment for ocean transportation in a way that conforms to carrier requirements and protects the goods.
Delivery in good condition
The contractor must deliver the shipment in good order and condition. This requirement ties the contractor’s performance to the condition of the goods at the delivery point, not merely to shipment from the origin.
All charges through delivery point
The contractor must pay and bear all charges up to the contract’s delivery point, including transportation costs, export and import fees or taxes, wharfage and landing costs, customs duties, and costs of certificates of origin, consular invoices, or other required documents. The Government does not absorb these costs under this clause.
Risk remains with contractor
The contractor is responsible for any loss of or damage to the goods occurring before delivery to the specified point. Risk of loss does not shift to the Government until the shipment is delivered as required by the contract.
Responsibilities
Contracting Officer
Use this clause when the contract delivery term is ex dock, pier, or warehouse, port of importation, as prescribed by FAR 47.303-12(c). Ensure the solicitation and contract clearly identify the designated port and delivery point so the contractor knows where responsibility ends.
Contractor
Pack and mark the shipment properly, prepare it for ocean transport if no packing specifications exist, arrange and pay for transportation and all associated charges through the delivery point, deliver the goods in good order and condition, and bear the risk of loss or damage until delivery is complete.
Government
Accept delivery at the designated dock, pier, or warehouse at the specified port of importation when the contractor has met the clause requirements. The Government is not responsible for the covered transportation, customs, or related charges before delivery.
Practical Implications
This clause places a broad cost and risk burden on the contractor, so pricing must account for freight, customs-related charges, wharfage, documentation, and potential loss exposure.
The exact delivery point matters. If the port, dock, pier, or warehouse is not clearly identified, disputes can arise over whether delivery was complete and who bears costs or risk.
Packing and marking are not optional administrative details; failures here can lead to damage, rejected shipments, or contractor liability for nonconforming delivery.
Contractors should coordinate closely with carriers, freight forwarders, and customs/documentation providers because the clause makes them responsible for getting the shipment through the importation point in acceptable condition.
Contracting officers should verify that the clause matches the intended commercial arrangement, since using the wrong delivery term can shift costs and risk in ways that do not align with the acquisition strategy.
Official Regulatory Text
As prescribed in 47.303-12 (c) , insert the following clause in solicitations and contracts when the delivery term is ex dock, pier, or warehouse, port of importation: Ex Dock, Pier, or Warehouse, Port of Importation (Apr 1984) (a) The term "ex dock, pier, or warehouse, port of importation," as used in this clause, 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) 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. (End of clause)