FAR and DFARS › FAR Part 47: Transportation › Subpart 47.5
FAR 47.503 Applicability.
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 explains when the Cargo Preference Acts of 1904 and 1954 apply to government cargo. It covers supplies owned by the Government, supplies for Government use that are not yet owned by the Government, and certain supplies for foreign assistance programs. For military cargo, it requires exclusive use of U.S.-flag commercial vessels if available at fair and reasonable rates.
Applies to: Government cargo shipments, including those involving contractors and subcontractors
What it requires
- Ensure that Government-owned supplies for military use are transported exclusively in privately owned U.S.-flag commercial vessels if available at fair and reasonable rates.
Key terms: Cargo Preference Acts of 1904 and 1954 · U.S.-flag commercial vessels · privately owned · fair and reasonable rates · 50-percent requirement
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(a) Except as stated in paragraph (b) below and in 47.504, the Cargo Preference Acts of 1904 and 1954 described in 47.502(a) apply to the following cargoes:
(1) Supplies owned by the Government and in the possession of—
(i) The Government;
(ii) A contractor; or
(iii) A subcontractor at any tier.
(2) Supplies for use of the Government that are contracted for and require subsequent delivery to a Government activity but are not owned by the Government at the time of shipment.
(3) Supplies not owned by the Government at the time of shipment that are to be transported for distribution to foreign assistance programs, but only if these supplies are not acquired or contracted for with local currency funds (see 47.504(b)).
(b) Government-owned supplies to be shipped commercially that are (1) in the possession of a department, a contractor, or a subcontractor at any tier and (2) for use of military departments shall be transported exclusively in privately owned U.S.-flag commercial vessels if such vessels are available at rates that are fair and reasonable for U.S.-flag commercial vessels.
(c) The 50-percent requirement shall not prevent the use of privately owned U.S.-flag commercial vessels for transportation of up to 100 percent of the cargo subject to the Cargo Preference Act of 1954.
Sections that refer to it
- 47.507 Contract clauses.
← 47.502 Policy. · 47.504 Exceptions. →
Rule changes for FAR Part 47
- Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 9, 27, and 47 ↗ · proposed 2026-09-18 · comments due 2026-10-19
- Federal Acquisition Regulation: Training To Prevent Human Trafficking for Certain Air Carriers; Correction ↗ · final rule 2024-12-30 · effective 2025-01-03
- Federal Acquisition Regulation: Training To Prevent Human Trafficking for Certain Air Carriers ↗ · final rule 2024-12-16 · effective 2025-01-03
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.