# Customer-owned tooling

Tool ownership, supplier custody, permitted use and source-specific responsibilities for physical manufacturing tools.

Reviewed: 2026-10-30

Tags: commercial, tooling, sourcing

## Meaning and scope

Customer-owned tooling means physical manufacturing tooling whose owner is the customer, even when a supplier holds or operates it. Ownership, custody and permission to use the tool describe different relationships. Robert Bosch LLC's North American purchase terms illustrate this distinction: the seller has temporary possession as a bailee. Section 16 applies only without an applicable bailment agreement. [Bosch, effective February 2026, §§16, 16.1–16.3, p. 8](https://assets.bosch.com/media/global/bosch_group/purchasing_and_logistics/information_for_business_partners/downloads/purchasing_docs/terms_and_conditions/americas/non-mobility-direct-and-indirect-purchasing-potc-for-north-america.pdf#page=8).

Their tooling description includes fixtures, gauges, jigs, patterns, castings, cavity dies, molds and accessories. [Bosch, §16.1, p. 8](https://assets.bosch.com/media/global/bosch_group/purchasing_and_logistics/information_for_business_partners/downloads/purchasing_docs/terms_and_conditions/americas/non-mobility-direct-and-indirect-purchasing-potc-for-north-america.pdf#page=8).

## Ownership, funding and use

The following distinctions are explanatory synthesis from the cited examples, rather than a model contract.

| Relationship | Meaning and limit |
| --- | --- |
| Ownership or title | Identifies the owner of the physical asset. Manufacture by a supplier and possession at its factory do not themselves identify that owner. |
| Funding | Describes who paid, reimbursed or absorbed a tooling cost. The applicable title provision determines the significance of that payment. |
| Custody | Describes who physically holds or controls the asset, including a separate toolmaker or subcontractor. |
| Authorized use | Describes the permitted products, customers or other uses. Physical capability does not confer permission. |
| Dedicated or shared use | Describes the scope of use; exclusivity and ownership remain separate questions. |

Bosch Automotive Service Solutions' sale terms provide a specific funding condition: special tooling becomes buyer property when separately negotiated and fully paid as a separate order item. Their stated exclusive-use arrangement includes an exception allowing Bosch to supply products to its affiliates. Thus, even the word “exclusive” has a source-specific scope. [Bosch Automotive Service Solutions, §9](https://srs20assets.bosch-automotive.com/api/Robinair.service-solutions.com/Media/UserManagedItems/Documents/Global/TermsAndConditionSale/en-US/1.0/Terms_Of_Sale.htm).

A different context is United States federal contracting. FAR 52.245-1 covers both government-furnished and contractor-acquired government property. Paragraph (c)(1) limits use to performance of the contract unless the contract provides otherwise or the contracting officer approves another use. This clause is evidence of that government-contract arrangement, not a default for commercial customer tooling. [FAR 52.245-1, September 2021 clause, (a), (c)(1)](https://www.acquisition.gov/far/52.245-1).

## Identity, quantities and documentary context

Ownership statements concern identified assets. In the FAR example, paragraph (f)(1)(ii) addresses ownership identification through suitable marking. Paragraph (f)(1)(iii)(A) lists property-record information including description/part number, quantities, unit of measure, acquisition cost, identifier where applicable, accountable contract, location and disposition, subject to its stated approval exception. [FAR 52.245-1, (f)(1)(ii)–(iii)](https://www.acquisition.gov/far/52.245-1).

**Synthesis:** the physical tool and the parts produced with it are distinct subjects. Ownership does not establish technical suitability for a particular part revision. A tooling description can refer to one tool, a matched set or an assembly with replaceable components. A count has meaning only with that scope; “one set” does not specify the number of dies, inserts or gauges included. Tool identity, supported part/drawing revision, location and observed condition describe different facts. An ownership label alone supplies neither remaining tool life nor verified production capability. No universal life in cycles, maintenance interval or replacement price follows from this commercial term.

## Care, wear, return and intellectual property

Responsibilities vary with the source and its applicability. These examples retain their qualifications:

| Source and context | Express treatment |
| --- | --- |
| Robert Bosch LLC, North American non-mobility and indirect purchasing terms, February 2026 | Section 16.2 assigns care, repair/replacement as necessary, insurance for the buyer's benefit and segregation/labeling to the seller. Its condition requirement excepts normal wear and tear. Release, relocation or disposal to a third party requires prior express written buyer permission. [§16.2, p. 8](https://assets.bosch.com/media/global/bosch_group/purchasing_and_logistics/information_for_business_partners/downloads/purchasing_docs/terms_and_conditions/americas/non-mobility-direct-and-indirect-purchasing-potc-for-north-america.pdf#page=8) |
| Bosch Automotive Service Solutions, sale terms | Section 9 places ordinary wear risk on the buyer, provides maintenance under Bosch's usual practice and specifies removal within 30 days after order completion. It also states a lien securing the buyer's outstanding obligations. These are that source's terms, not general consequences of ownership. [§9](https://srs20assets.bosch-automotive.com/api/Robinair.service-solutions.com/Media/UserManagedItems/Documents/Global/TermsAndConditionSale/en-US/1.0/Terms_Of_Sale.htm) |
| BSH Home Appliances Pty Ltd, Australian purchase conditions | Provided tools/gauges/jigs remain BSH property and are returnable on completion, cancellation or request. Sections 14.3–14.4 address maintenance/replacement and full-replacement-value insurance to the extent obtainable. Section 16 separately addresses intellectual property. [§§14.2–14.4, 16.1–16.2](https://www.bosch-home.com.au/en/c/legal/blta8a4c88716be5247/metapages/condition-of-purchase) |

**Synthesis:** possession of the tool, rights in its drawings or software, permission to reproduce it, and authority to transfer it to another manufacturer are separate matters. The physical ownership description cannot resolve those rights or an actual dispute.

## Source and applicability limits

Reviewed October 30, 2026 PDT. The Bosch purchase PDF states an effective date of February 2026; the sale page displays no revision date. The BSH purchase conditions state an effective date of 23 February 2023. [BSH conditions, effective date after §26](https://www.bosch-home.com.au/en/c/legal/blta8a4c88716be5247/metapages/condition-of-purchase). Acquisition.gov displayed FAC 2026-01, effective March 13, 2026, while the cited property clause retains its September 2021 label. Source version and clause date therefore identify different things. [FAR clause page](https://www.acquisition.gov/far/52.245-1).

These public examples do not establish which documents govern an actual customer–supplier relationship, whether a claimed title or lien is enforceable, or what jurisdiction permits recovery, transfer or disposal. Executed agreements, amendments, asset scope and applicable law remain relationship-specific. The coverage does not establish tooling acceptance criteria, calibration requirements, storage conditions or production settings.