Subpart E: Cost principles 2024 Uniform Guidance · effective Oct 1, 2024

2 CFR 200.474: Transportation costs

2 CFR 200.474 sets one requirement for organizations that receive federal grants and cooperative agreements. Applies when you build your application and budget, and to every cost you charge after award.

Shows up in your application: Budget: suppliesBudget: other direct costs

What 2 CFR 200.474 requires

1. Allowable costs

What you must do

Freight, express, cartage, postage, and other transportation costs relating to goods purchased, in process, or delivered are allowable; when readily identifiable with the items, they may be charged directly as transportation costs or added to the items' cost; when not readily identifiable, inbound transportation may be charged to indirect cost accounts if a consistent, equitable procedure is followed; outbound freight, if reimbursable under the award's terms and conditions, should be treated as a direct cost.

When it applies

Shipping, freight, or postage lines in the budget, or supply unit prices that embed freight.

Budget: suppliesBudget: other direct costs
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Sections that refer to 2 CFR 200.474

Regulation text of 2 CFR 200.474

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Costs incurred for freight, express, cartage, postage, and other transportation services relating to goods purchased, in process, or delivered, are allowable. When the costs can be readily identified with the items involved, they may be charged directly as transportation costs or added to the cost of such items. When identification with the materials received cannot be readily made, the inbound transportation cost may be charged to the appropriate indirect cost accounts if the recipient or subrecipient follows a consistent, equitable procedure in this respect. If reimbursable under the terms and conditions of the Federal award, outbound freight should be treated as a direct cost.

Source: eCFR · checked Sep 17, 2026

Questions about 2 CFR 200.474

What does 2 CFR 200.474 require?

Freight, express, cartage, postage, and other transportation costs relating to goods purchased, in process, or delivered are allowable; when readily identifiable with the items, they may be charged directly as transportation costs or added to the items' cost; when not readily identifiable, inbound transportation may be charged to indirect cost accounts if a consistent, equitable procedure is followed; outbound freight, if reimbursable under the award's terms and conditions, should be treated as a direct cost.

When does 2 CFR 200.474 apply?

Shipping, freight, or postage lines in the budget, or supply unit prices that embed freight.

Plain-English summaries for information only, not legal advice. Always check the regulation text, your award terms and your agency’s guidance.