24.7.1 Free On Board (FOB) destination

When issuing a service authorization for goods that will be shipped to the office or directly to the consumer, you must include “FOB destination” on the service authorization as a condition of the purchase.

If the provider will not ship FOB destination, locate another resource, if possible.

FOB applies to the purchase of goods such that the CRS program does not own the goods until they arrive and are accepted at the destination identified on the service authorization. The risk of loss to goods does not pass to the CRS program until the goods are delivered and the shipment is accepted.

When the goods are damaged in transit or are not accepted or received, the provider is responsible for shipping new or replacement goods without additional expense to the CRS program.