FAR 47.404—Air freight forwarders.
Plain-English Summary
FAR 47.404 addresses the use of air freight forwarders for Government-financed shipments and the documentation needed to support payment and compliance. It authorizes agencies to use international air freight forwarders for U.S. Government-financed movements of property, ties those shipments to the same disallowance rule that applies to certain air carrier expenditures under FAR 47.403-3(a), and requires agencies to tell forwarders what they must submit with their bills. In practice, this section is about ensuring that freight-forwarding arrangements do not bypass U.S.-flag preference rules and that the Government has enough documentation to verify the carriers used and whether any foreign-flag air carrier use was justified. It also helps contracting and transportation personnel process invoices promptly by standardizing the supporting paperwork. For contractors and forwarders, the section means that payment can be delayed or questioned if the required airway bill, manifest, or foreign-flag justification is missing or incomplete.
Key Rules
Use of international forwarders
Agencies may use air freight forwarders engaged in international air transportation for U.S. Government-financed property movements. This gives agencies flexibility to use forwarders in international shipping arrangements, but it does not remove compliance obligations tied to carrier selection and documentation.
Disallowance rule still applies
The disallowance of expenditures in FAR 47.403-3(a) also applies to the air carriers used by these international air freight forwarders. In other words, using a forwarder does not avoid the rule that can make certain transportation costs unallowable or subject to disallowance.
Invoice support is required
Agency personnel must tell international air freight forwarders that they need to submit supporting documents with their bills to speed payment. The required documents are not optional if the forwarder wants prompt processing of its invoice.
Airway bill or manifest
A copy of the airway bill or manifest must be submitted and must show the air carriers used. This allows the Government to identify the actual carriers involved in the movement and verify compliance with applicable transportation preferences and restrictions.
Foreign-flag justification
The forwarder must also provide justification for using foreign-flag air carriers, similar to the justification required by the Preference for U.S.-Flag Air Carriers clause at 52.247-63. This ensures the Government can evaluate whether any foreign-flag use was permissible and properly documented.
Responsibilities
Agency personnel
Inform international air freight forwarders of the documentation they must submit with their bills, including the airway bill or manifest and the foreign-flag justification, so invoices can be processed promptly and compliance can be reviewed.
International air freight forwarders
When billing the Government, submit a copy of the airway bill or manifest showing the air carriers used and provide justification for any foreign-flag air carrier use in a form similar to the clause at 52.247-63.
Contracting activity / transportation reviewers
Review the submitted shipping documents and justification to confirm the carriers used, assess compliance with applicable disallowance and U.S.-flag preference requirements, and determine whether the billed costs are payable.
Agency finance / payment office
Use the required documentation to support prompt and proper payment, and hold or question bills that lack the required airway bill, manifest, or foreign-flag justification.
Practical Implications
Forwarders should expect invoice delays if they do not attach the airway bill or manifest and a proper foreign-flag justification.
Using a freight forwarder does not eliminate U.S.-flag preference and disallowance issues; the Government will still look through to the actual air carriers used.
Agency staff should proactively tell forwarders about the documentation requirement at the outset of the shipment or contract to avoid payment disputes later.
A missing or weak justification for foreign-flag carrier use can trigger cost disallowance or additional review, even if the shipment itself was otherwise properly arranged.
Contractors and forwarders should keep carrier records organized so they can quickly prove which carriers moved the cargo and why any foreign-flag carrier was necessary.
Official Regulatory Text
(a) Agencies may use air freight forwarders that are engaged in international air transportation ( 49 U.S.C. 1301(c) ) for U.S. Government-financed movements of property. The rule on disallowance of expenditures in 47.403-3 (a) applies also to the air carriers used by these international air freight forwarders. (b) Agency personnel shall inform international air freight forwarders that to facilitate prompt payments of their bills, they shall submit with their bills- (1) A copy of the airway bill or manifest showing the air carriers used; and (2) Justification for the use of foreign-flag air carriers similar to the one shown in the clause at 52.247-63 , Preference for U.S.-Flag Air Carriers.