FAR 52.247-44—F.o.b. Designated Air Carrier’s Terminal, Point of Importation.
Plain-English Summary
FAR 52.247-44 addresses the delivery term "f.o.b. designated air carrier’s terminal, point of importation" and explains what that term means in a federal contract. It tells the contractor how to prepare, document, and deliver the shipment to the specified air carrier terminal at the point of importation, and it allocates cost and risk up to that delivery point. The clause covers packing and marking, preparation of bills of lading or air waybills, delivery in good order and condition, payment of transportation and related charges, and responsibility for loss or damage before delivery to the Government. In practice, this clause is important because it defines when title/risk-related delivery obligations are satisfied for imported shipments moving by air and prevents disputes over who pays freight, customs, taxes, and document costs. It is used only when the solicitation or contract specifies this particular f.o.b. delivery term, so both contracting officers and contractors need to align shipping, customs, and logistics arrangements with the contract language.
Key Rules
Delivery term defines cost point
"F.o.b. designated air carrier’s terminal, point of importation" means the contractor must deliver the goods free of expense to the Government at the air carrier’s terminal identified in the contract. The contractor’s delivery obligation is not complete until the shipment reaches that specified terminal.
Proper packing and marking required
The contractor must pack and mark the shipment to meet contract specifications. If the contract does not provide packing specifications, the contractor must prepare the shipment for air transport in a way that conforms to carrier requirements and protects the goods.
Shipping documents must be prepared
The contractor must prepare and distribute bills of lading or air waybills. This ensures the shipment is properly documented for transportation, tracking, and import/export processing.
Contractor pays pre-delivery charges
The contractor must bear all charges incurred up to the specified delivery point, including transportation costs, export or import fees or taxes, landing costs, customs duties, and costs of required certificates or consular documents. These costs are not separately chargeable to the Government unless the contract says otherwise.
Risk stays with contractor until delivery
The contractor remains responsible for any loss of or damage to the goods until the shipment is delivered to the Government at the designated air carrier’s terminal. If damage or loss occurs before that point, the contractor generally bears the responsibility.
Responsibilities
Contracting Officer
Include this clause only when the contract uses the f.o.b. designated air carrier’s terminal, point of importation delivery term. Ensure the solicitation and contract clearly identify the point of importation and any applicable packing, marking, and documentation requirements.
Contractor
Pack and mark the shipment properly, prepare and distribute shipping documents, deliver the goods to the specified terminal in good order and condition, pay all charges up to that point, and bear the risk of loss or damage until delivery is complete.
Government
Receive the shipment at the designated air carrier’s terminal once the contractor has satisfied the delivery obligation. The Government is not responsible for pre-delivery transportation, customs, or related charges covered by the clause.
Practical Implications
This clause shifts a broad set of logistics costs and risks to the contractor until the shipment reaches the named terminal, so contractors should price freight, customs, taxes, and document costs into their offers.
A common pitfall is assuming delivery is complete when the shipment leaves the contractor’s facility; under this clause, delivery is not complete until arrival at the specified air carrier terminal.
Contractors should verify the contract’s exact point of importation and coordinate closely with carriers, customs brokers, and freight forwarders to avoid delays or noncompliance.
If the contract lacks packing or marking specifications, the contractor still must use packaging suitable for air transport and protection of the goods, so “no specs” does not mean “no obligation.”
Because the contractor bears risk until delivery, insurance, tracking, and proof of delivery are especially important to resolve disputes over loss, damage, or late arrival.
Official Regulatory Text
As prescribed in 47.303-16 (c) , insert the following clause in solicitations and contracts when the delivery term is f.o.b. designated air carrier’s terminal, point of importation: F.o.b. Designated Air Carrier’s Terminal, Point of Importation (Apr 1984) (a) The term "f.o.b. designated air carrier’s terminal, point of importation," as used in this clause, means free of expense to the Government delivered to the air carrier’s terminal at the point of importation specified in the contract. (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 air transportation in conformance with carrier requirements to protect the goods; (2) Prepare and distribute bills of lading or air waybills; (3) (i) Deliver the shipment in good order and condition to the point of delivery specified in the contract; and (ii) Pay and bear all charges incurred up to the point of delivery specified in the contract, including transportation costs; export, import, or other fees or taxes; cost of 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 (4) Be responsible for any loss of and/or damage to the goods until delivery of the goods to the Government at the designated air carrier’s terminal. (End of clause)