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FAR and DFARS › FAR Part 47: Transportation › Subpart 47.4

FAR 47.403-3 Disallowance of expenditures.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section tells agencies to disallow spending on U.S. Government-financed commercial international air travel on foreign-flag carriers unless a memorandum is attached to the voucher explaining why U.S.-flag service was not available or why foreign-flag carriers were necessary. It also describes how the disallowed amount is calculated when a traveler uses an indirect route or otherwise fails to use available U.S.-flag service. For contractors, it means that using foreign-flag air carriers without proper justification can result in the government refusing to pay for that travel.

Applies to: U.S. Government-financed commercial international air transportation on foreign-flag air carriers

What it requires

  • Attach a memorandum to the appropriate voucher adequately explaining why service by U.S.-flag air carriers was not available or why it was necessary to use foreign-flag air carriers.

Key terms: foreign-flag air carriers · U.S.-flag air carriers · voucher · indirect route · 52.247-63

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) Agencies shall disallow expenditures for U.S. Government-financed commercial international air transportation on foreign-flag air carriers unless there is attached to the appropriate voucher a memorandum adequately explaining why service by U.S.-flag air carriers was not available, or why it was necessary to use foreign-flag air carriers.

(b) When the travel is by indirect route or the traveler otherwise fails to use available U.S.-flag air carrier service, the amount to be disallowed against the traveler is based on the loss of revenues suffered by U.S.-flag air carriers as determined under the following formula, which is prescribed and more fully explained in 56 Comp. Gen. 209 (1977):

(c) The justification requirement is satisfied by the contractor's use of a statement similar to the one contained in the clause at 52.247-63, Preference for U.S.-Flag Air Carriers. (See 47.405.)

Sections it refers to

Sections that refer to it

  • 47.404 Air freight forwarders.

← 47.403-2 Air transport agreements between the United States and foreign governments. · 47.404 Air freight forwarders. →

Rule changes for FAR Part 47

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 47.403-3 Disallowance of expenditures · SpendQuery