FAR 52.247-41—C.& f. Destination.
Plain-English Summary
FAR 52.247-41 is the contract clause used when the delivery term is c.& f. destination for ocean shipments. It defines what that term means in federal contracting, allocates transportation and export-related costs to the contractor, and sets out the contractor’s shipping duties. The clause covers packing and marking, preparing the shipment for ocean transport, delivering the goods in good order and condition, paying transportation costs and export taxes or similar charges, obtaining and sending clean on-board ocean bills of lading, bearing risk of loss or damage before delivery, and furnishing origin or shipment documents when the Government requests them and pays the cost. In practice, this clause matters because it tells both sides who is responsible for getting the goods onto the vessel and to the named destination, who pays the freight and export charges, and who carries the risk before delivery. It is especially important in international procurement because shipping documents, customs-related paperwork, and the condition of the cargo can affect importation, payment, and dispute resolution.
Key Rules
Meaning of c.& f. destination
The clause defines c.& f. destination as free of expense to the Government, delivered on board the ocean vessel to the specified destination, with transportation costs paid by the contractor. This means the contractor’s price must include the shipping cost to the named destination under the clause’s terms.
Proper packing and marking
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 line with carrier requirements.
Delivery in good order
The contractor must deliver the shipment in good order and condition. This places responsibility on the contractor to ensure the goods are fit for ocean shipment and are handed over without avoidable damage or deficiency.
Contractor pays destination charges
The contractor must pay all applicable charges to the contract destination, including transportation costs and export taxes or other fees or charges imposed because of exportation. These costs are part of the contractor’s obligation unless the contract says otherwise.
Clean on-board bills of lading
The contractor must obtain and promptly send the Government clean on-board ocean bills of lading to the specified destination. A clean on-board bill of lading is important evidence that the cargo was loaded on the vessel without adverse notations.
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 clause, not the Government.
Origin and import documents on request
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 it requests them.
Responsibilities
Contracting Officer
Insert the clause when the delivery term is c.& f. destination and ensure the contract clearly identifies the specified point of destination. The contracting officer should also request needed shipping or import documents when appropriate and ensure the contract reflects any special packing, marking, or documentation requirements.
Contractor
Pack and mark the shipment properly, prepare it for ocean transport, deliver it in good order and condition, pay transportation costs and export-related charges, obtain and send clean on-board ocean bills of lading, bear the risk of loss or damage before delivery, and provide requested origin or import documents when the Government pays for them.
Government
Accept delivery under the contract terms, request origin or import documents when needed, and pay the expense of those documents when requested under the clause. The Government should also verify that the shipping documents and delivery condition satisfy the contract requirements.
Practical Implications
This clause shifts most shipping responsibility to the contractor, so contractors must build freight, export charges, and packaging costs into their price.
Clean on-board bills of lading are critical; missing or nonconforming shipping documents can delay payment, acceptance, or import clearance.
Because the contractor bears loss or damage before delivery, cargo insurance and careful carrier selection are important risk-management tools.
If the contract lacks clear packing or marking specifications, the contractor must still meet carrier standards for ocean shipment, which can create disputes if expectations are not documented.
Government requests for certificates of origin or consular documents are allowed, but the Government must pay for them, so contracting personnel should coordinate early to avoid customs delays and unexpected administrative issues.
Official Regulatory Text
As prescribed in 47.303-13 (c) , insert the following clause in solicitations and contracts when the delivery term is c.& f. destination: C.&F. Destination (Apr 1984) (a) The term "c.& f. destination," as used in this clause, 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) 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. (End of clause)