FINANCIAL MANAGEMENT POLICY MANUAL

c. Freight Cartage. Freight cartage includes any cartage described in
through delivery documentation. However, in instances of cartage for
consignments to a shore-based activity, ship, or other mobile unit
when there is a shore-based activity assigned area responsibility, the
local delivery costs, including commercial charges, will be funded
from the operating resources of the activity assigned area
responsibility.
d. Transportation Accounting Codes. Transportation Accounting
Codes (TACs) are cited on all shipping documents and are used to
identify the proper funding source and appropriation. TAC selection is
based upon cognizance of material, appropriation financing the
purchase of material, project, and/or other factors. TACs are found in
DoD Regulation 4500.32R (MILSTAMP), Volume II.
e. Costs Incurred Incident to Shipment of Property. Costs include
charges for services performed while a shipment is in-transit. Many
carriers will provide accessorial services in addition to line-haul
service which may be categorized as:
(1) preparation charges, e.g., packing, marking, loading, crating,
handling, blocking, bracing, and disassembly, etc.;
(2) in-transit charges, e.g., security service, documentation fees,
stop-off, port handling, switching, flagmen, re-cooperage, etc.;
(3) destination charges, e.g., reassembly, permit/prelodge, storage
prior to unloading, etc.
Although these charges may be found in commercial carriers' tariffs,
tenders or schedules, only transit charges should be paid with
transportation funds. Preparation charges and destination charges will
be funded from other than transportation funds.
3. BUDGET RESPONSIBILITY
a. First Destination. First destination transportation is budgeted on an
annualized basis in the same appropriation as the end item or material
being procured. This policy reflects the treatment of transportation
costs as an integral part of the cost of the procurement.
b. Second Destination. Second destination transportation is financed
in the Operations and Maintenance appropriations, except as noted
below.
(1) Transportation of Stock Fund Material. All transportation is
financed by the Navy Working Capital Fund (NWCF).
(2) U.S. Antarctic Program and Security Assistance Program. In
the case of the U.S. Antarctic Program and Security Assistance
Financial Management Policy
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