**The configuration @ FreeBSD router:** ifconfig gif0 create ifconfig gif0 inet 10.100.100.2 10.100.100.1 netmask 255.255.255.252 ifconfig gif0 tunnel 192.168.1.2 10.242.2.242 **The configuration @ M7i:** show interfaces ip-1/2/0 unit 0 { tunnel { source 10.242.2.242; destination 192.168.1.2; routing-instance { destination VRF-TEST; } } family inet { address 10.100.100.1/30; } } And also don't forget to define the ip-1/2/0.0 interface in the correct routing-instance (in this case, VRF-TEST routing -instance) Network topology for testing purpose is shown below: 10.100.100.2/30 (ipip tunnel) 10.100.100.1/30 FreeBSD ----------LAN------------M7i 192.168.1.2 10.242.2.242 And finally, based on the result below, we could see that it is possible to do ipip/gre tunnelling in M7i base system without AS PIC or LS PIC. M7i base system has 1 builtin tunnel interface. # show chassis hardware Hardware inventory: Item Version Part number Serial number Description Chassis 32297 M7i Midplane REV 04 710-008761 CE3630 Power Supply 0 Rev 02 740-008985 QF15548 DC Power Supply 1 Rev 02 740-008985 QF15558 DC Routing Engine REV 09 740-009459 1000542657 RE-5.0 CFEB REV 03 750-010463 CE7095 Internet Processor II FPC 0 E-FPC FPC 1 E-FPC PIC 2 BUILTIN BUILTIN 1x Tunnel PIC 3 REV 07 750-009098 CC7914 2x F/E, 100 BASE-TX And these are the results: I did ping from the M7i # run ping 10.100.100.2 routing-instance VRF-TEST PING 10.100.100.2 (10.100.100.2): 56 data bytes 64 bytes from 10.100.100.2: icmp_seq=0 ttl=64 time=1.103 ms 64 bytes from 10.100.100.2: icmp_seq=1 ttl=64 time=1.125 ms 64 bytes from 10.100.100.2: icmp_seq=2 ttl=64 time=1.109 ms and this is the result: # tcpdump -n -i gif0 tcpdump: verbose output suppressed, use -v or -vv for full protocol decode listening on gif0, link-type NULL (BSD loopback), capture size 96 bytes 12:30:08.971272 IP 10.100.100.1 > 10.100.100.2: icmp 64: echo request seq 4608 12:30:08.971287 IP 10.100.100.2 > 10.100.100.1: icmp 64: echo reply seq 4608 12:30:09.981402 IP 10.100.100.1 > 10.100.100.2: icmp 64: echo request seq 4864 12:30:09.981414 IP 10.100.100.2 > 10.100.100.1: icmp 64: echo reply seq 4864 12:30:10.991369 IP 10.100.100.1 > 10.100.100.2: icmp 64: echo request seq 5120 12:30:10.991382 IP 10.100.100.2 > 10.100.100.1: icmp 64: echo reply seq 5120 -rendo-