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B-152640, DEC. 11, 1963

B-152640 Dec 11, 1963
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MANUFACTURING SALES: REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 25. 718.92 REPRESENTING REIMBURSEMENT FOR STORAGE AND HANDLING CHARGES ON STEEL WIRE FURNISHED THE DEPARTMENT OF THE ARMY UNDER CONTRACT DA-11-184-ENG-17894 WHICH WAS DISALLOWED BY OUR SETTLEMENT DATED SEPTEMBER 5. PROVIDED THAT YOU WERE TO DELIVER APPROXIMATELY 625. IT WAS LATER AGREED THAT DELIVERY OF THE WIRE WAS TO BE MADE BY JUNE 30. THE WIRE WAS SHIPPED FROM KOBE. IT WAS ADMINISTRATIVELY REPORTED ON SEPTEMBER 7. THAT IT HAD BEEN CONSIGNED COMMERCIALLY TO THE PORT OF INCHON AND THAT IT WAS THEN BEING HELD BY THE REPUBLIC OF KOREA CUSTOMS OFFICE FOR PAYMENT OF STORAGE AND HANDLING CHARGES. THE WIRE WAS NOT RELEASED BY THE REPUBLIC OF KOREA CUSTOMS OFFICE UNTIL YOU AGREED TO PAY FOR SUCH CHARGES FOR WHICH YOU NOW CLAIM REIMBURSEMENT.

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B-152640, DEC. 11, 1963

TO H.F.S. MANUFACTURING SALES:

REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 25, 1963, REQUESTING RECONSIDERATION OF YOUR CLAIM FOR $2,718.92 REPRESENTING REIMBURSEMENT FOR STORAGE AND HANDLING CHARGES ON STEEL WIRE FURNISHED THE DEPARTMENT OF THE ARMY UNDER CONTRACT DA-11-184-ENG-17894 WHICH WAS DISALLOWED BY OUR SETTLEMENT DATED SEPTEMBER 5, 1962.

THE CONTRACT DATED FEBRUARY 1, 1960, PROVIDED THAT YOU WERE TO DELIVER APPROXIMATELY 625,000 POUNDS OF STEEL WIRE, ON 5,000 COILS OR REELS, F.O.B. DOCK, TO THE PORT TRANSPORTATION OFFICER, PORT OF INCHON, KOREA, ON OR BEFORE MAY 31, 1960,"FOR: RQN BOUT KBD 450, M/F: BOUT 04109 ENGIV KEAOO KBD 450.' IT WAS LATER AGREED THAT DELIVERY OF THE WIRE WAS TO BE MADE BY JUNE 30, 1960. PARAGRAPH 15 OF THE SPECIAL TERMS AND CONDITIONS OF THE CONTRACT PROVIDED:

"SHIPPING NOTICES: THE CONTRACTOR SHALL SEND SHIPPING NOTICES, INCLUDING MASTER'S NOTICE OF EXPECTED TIME OF ARRIVAL AT THE PORT OF JINSEN (INCHON) KOREA, SAID MASTER'S NOTICE TO BE GIVEN AT LEAST SEVENTY-TWO (72) HOURS IN ADVANCE THEREOF TO THE CONSIGNEE, TO BE DESIGNATED AT TIME OF AWARD, BY RADIO OR CABLE, WITH CONFIRMING COPY VIA QUICKEST MAIL.'

THE WIRE WAS SHIPPED FROM KOBE, JAPAN, IN TWO SHIPMENTS AND THE BILLS OF LADING FOR THE SHIPMENTS SPECIFIED THE CONSIGNEE AS: "TO ORDER OF U.S. ARMY CORPS OF ENGINEERS, PORT OF JINSEN (INCHON) KOREA.' IT WAS ADMINISTRATIVELY REPORTED ON SEPTEMBER 7, 1960, THAT THE PORT TRANSPORTATION OFFICER AT INCHON HAD NOT RECEIVED THE WIRE, THAT IT HAD BEEN CONSIGNED COMMERCIALLY TO THE PORT OF INCHON AND THAT IT WAS THEN BEING HELD BY THE REPUBLIC OF KOREA CUSTOMS OFFICE FOR PAYMENT OF STORAGE AND HANDLING CHARGES. THE WIRE WAS NOT RELEASED BY THE REPUBLIC OF KOREA CUSTOMS OFFICE UNTIL YOU AGREED TO PAY FOR SUCH CHARGES FOR WHICH YOU NOW CLAIM REIMBURSEMENT.

YOU CONTEND THAT THE SHIPMENTS WERE MADE TO THE PORT TRANSPORTATION OFFICER AS EVIDENCED BY DD FORMS 250 SIGNED BY AUTHORIZED GOVERNMENT REPRESENTATIVES, AND THAT THE REASON THE BILLS OF LADING SHOWED THEU.S. ARMY CORPS OF ENGINEERS AS THE CONSIGNEE WAS DUE TO THE FACT THAT THE CONTRACT CALLED FOR THE INSURANCE ON THE SHIPMENTS TO BE IN THAT NAME. WITH REGARD TO THE REQUIREMENT THAT SHIPPING INSTRUCTIONS BE FURNISHED AT LEAST 72 HOURS IN ADVANCE TO THE CONSIGNEE, YOU CONTEND THAT A COPY OF SUCH INSTRUCTIONS WAS FORWARDED TO THE PORT TRANSPORTATION OFFICER BY THE SHIPPER WHO ALSO FURNISHED YOU A COPY. YOU SAY THAT THE MASTER'S NOTICE COVERED THE ENTIRE CARGO OF THE SHIP AND WAS FURNISHED THE PORT TRANSPORTATION OFFICER BY THE SHIP OWNERS BUT THAT SUCH A NOTICE FOR THE PART OF THE CARGO COVERED BY YOUR SHIPMENT WAS NOT AVAILABLE TO YOU.

IT IS ADMINISTRATIVELY REPORTED THAT YOU DID NOT FULFILL YOUR CONTRACTUAL OBLIGATION WHEN YOU FAILED TO SUBMIT TO THE CONSIGNEE THE MASTER'S NOTICE AND OTHER SHIPPING NOTICES AS REQUIRED BY PARAGRAPH 15 OF THE SPECIAL TERMS AND CONDITIONS OF THE CONTRACT, AND IT IS INCORRECT TO STATE THAT OTHER DOCUMENTS SUCH AS THE COPIES OF THE BILLS OF LADING, INSURANCE POLICIES AND INSPECTION REPORTS ARE EQUIVALENT TO A SUBMITTAL OF A MASTER'S NOTICE WHICH ADVISES THE CONSIGNEE WHEN THE SHIPMENT WILL ARRIVE. THE ARMY ALSO REPORTED THAT THE CONSIGNEE NEVER RECEIVED A MASTER'S NOTICE AND WAS THEREFORE NOT AT THE DOCK WHEN THE SHIPMENTS ARRIVED.

IT IS NOT PRIMARILY A FUNCTION OF OUR OFFICE TO RESOLVE DISPUTED QUESTIONS OF FACT. UPON DISPUTED QUESTIONS OF FACT BETWEEN THE ADMINISTRATIVE OFFICERS OF THE GOVERNMENT AND A CLAIMANT OR OTHER PERSON DEALING WITH THE GOVERNMENT, THE LONG-ESTABLISHED RULE OF THE ACCOUNTING OFFICERS IS TO ACCEPT THE STATEMENTS OF FACT FURNISHED BY THE ADMINISTRATIVE OFFICERS, IN THE ABSENCE OF EVIDENCE SUFFICIENT TO OVERCOME THE PRESUMPTION OF THE CORRECTNESS THEREOF. 16 COMP. GEN. 325.

MOREOVER, IT LONG HAS BEEN THE ESTABLISHED RULE OF OUR OFFICE AND THE COURTS THAT THOSE ASSERTING CLAIMS AGAINST THE UNITED STATES HAVE THE BURDEN OF ESTABLISHING THEIR VALIDITY AND THE ACCOUNTING OFFICERS OF THE GOVERNMENT ARE NOT REQUIRED OR AUTHORIZED TO CERTIFY FOR PAYMENT CLAIMS NOT SO ESTABLISHED. LONGWILL V. UNITED STATES, 17 CT.CL. 288, 291; CHARLES V. UNITED STATES, 19 CT.CL. 316, 319; 18 COMP. GEN. 199. IT IS TO BE OBSERVED ALSO THAT IN THE INSTANT MATTER THE GOVERNMENT DERIVED NO BENEFIT FROM THE STORAGE OF THE STEEL WIRE FOR WHICH YOU CLAIM REIMBURSEMENT.

FOR THE REASONS ABOVE SET FORTH, THERE APPEARS NO PROPER BASIS FOR THE ALLOWANCE OF YOUR CLAIM. ACCORDINGLY, THE SETTLEMENT OF SEPTEMBER 5, 1962, APPEARS CORRECT AND IS SUSTAINED.

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