A-24222, DEC. 11, 1962

A-24222, DEC. 11, 1962

TO THE SECRETARY OF AGRICULTURE:

REFERENCE IS MADE TO LETTER OF OCTOBER 5, 1962, FROM MR. JOSEPH M. ROBERTSON, YOUR ADMINISTRATIVE ASSISTANT SECRETARY, FOR DEPARTMENTAL ADMINISTRATION, IN WHICH IT IS REQUESTED THAT THE ESTABLISHED PROCEDURES PRESCRIBED IN 5 GAO 3050 FOR CONVERSION OF COMMERCIAL BILLS OF LADING TO GOVERNMENT BILLS OF LADING BE WAIVED IN CONNECTION WITH CERTAIN SHIPMENTS OF PROPERTY FOR THE ACCOUNT OF THE UNITED STATES.

THE ADMINISTRATIVE ASSISTANT SECRETARY REFERS TO INNUMERABLE SITUATIONS WHERE, BECAUSE OF VARYING CIRCUMSTANCES, COMMERCIAL BILLS OF LADING OR EXPRESS RECEIPTS ARE USED FOR SHIPMENTS AND UNDER CURRENT PROCEDURES MUST BE CONVERTED TO A GOVERNMENT BILL OF LADING. THE MAJORITY OF THE COMMERCIAL DOCUMENTS WHICH ARE CONVERTED ARE SAID TO PERTAIN TO SMALL SHIPMENTS, PRINCIPALLY THOSE INVOLVING RESEARCH, TESTING AND INSPECTION PROGRAMS BY THE DEPARTMENT. BESIDES THESE PROGRAMS, THE LETTER STATES THAT COMMERCIAL DOCUMENTS ARE USED FOR OCCASIONAL SHIPMENTS TO FIELD LABORATORIES OF THE AGRICULTURAL RESEARCH SERVICE AND FOREST SERVICE WHEN THE EXIGENCIES OF THE DEPARTMENT'S PROGRAMS JUSTIFIES THIS METHOD. STATES FURTHER THAT A RECENT STUDY BY THE DEPARTMENT SHOWS THAT DURING A TYPICAL TWELVE MONTH PERIOD NEARLY 3,600 COMMERCIAL BILLS OF LADING AND EXPRESS RECEIPTS WERE SEPARATELY CONVERTED TO GOVERNMENT BILLS OF LADING AND MORE THAN 90 PERCENT OF THESE CONVERSIONS INVOLVED TRANSPORTATION CHARGES UNDER $50 AND APPROXIMATELY 80 PERCENT INVOLVED CHARGES OF $25 OR LESS. IT IS ALSO INDICATED THAT AS A RESULT OF AUGMENTED POULTRY INSPECTION ACTIVITIES AS MANY AS 1,000 POULTRY PLANTS IN 700 LOCATIONS WILL PROBABLY BE SHIPPING POULTRY SAMPLES FOR TESTING.

IN AN EFFORT TO OVERCOME THE PROBLEMS INVOLVED IN THE CONVERSION OF COMMERCIAL BILLS OF LADING TO GOVERNMENT BILLS, TO IMPROVE ADMINISTRATIVE PRACTICES, AND EFFECT ECONOMIES IN OPERATION, THE ADMINISTRATIVE ASSISTANT SECRETARY REQUESTS AN EXEMPTION FROM THE CURRENT REQUIREMENTS, IN THE CIRCUMSTANCES DESCRIBED IN HIS LETTER, IN CONNECTION WITH SMALL SHIPMENTS. IN LIEU OF CONVERTING THE COMMERCIAL DOCUMENTS TO GOVERNMENT BILLS OF LADING, HE REQUESTS PERMISSION TO SUBSTITUTE A PROCEDURE SUMMARIZED IN THE LETTER IN PROPOSALS AS FOLLOWS:

"1. WE PROPOSE THAT THE DEPARTMENT OF AGRICULTURE PAY CARRIER'S CHARGES BASED ON COMMERCIAL SHIPPING DOCUMENTS, PROVIDED THEY INCLUDE THE FOLLOWING STATEMENT: "SUBJECT TO ALL THE TERMS AND CONDITIONS OF THE UNITED STATES GOVERNMENT BILL OF LADING, STANDARD FORM NO. 1103.' UNDER THIS PROPOSAL CARRIERS' BILLS FOR CHARGES WOULD CONTINUE TO BE SUBMITTED ON SF-1113, PUBLIC VOUCHER FOR TRANSPORTATION CHARGES, SUPPORTED BY ORIGINAL COPIES OF COMMERCIAL BILLS OF LADING OR COMMERCIAL EXPRESS RECEIPTS.

"2. WHEN THE METHOD DESCRIBED ABOVE IS NOT FEASIBLE WE PROPOSE THAT THE DEPARTMENT OF AGRICULTURE PAY TRANSPORTATION CHARGES, SUCH AS THOSE IN CONNECTION WITH RAISIN SAMPLES, EITHER FROM PERSONAL FUNDS OF EMPLOYEES WHO WOULD CLAIM REIMBURSEMENT THEREFOR OR FROM IMPREST FUNDS, WHEN THESE METHODS ARE DETERMINED TO BE PRACTICABLE OR ECONOMICAL.'

THIS MATTER WAS THE SUBJECT OF A MEETING IN THE TRANSPORTATION DIVISION OF OUR OFFICE ON SEPTEMBER 19, 1962, BETWEEN OFFICIALS OF THE DEPARTMENT OF AGRICULTURE AND PERSONNEL OF OUR TRANSPORTATION DIVISION. AT THAT MEETING, IT WAS STATED THAT WE WOULD BE RELUCTANT TO GRANT BLANKET AUTHORITY TO YOUR DEPARTMENT TO DEVIATE FROM THE INVOLVED PROCEDURES IN THE GAO MANUAL BUT THAT APPROVAL OF THE FIRST PROPOSAL IF CONFINED TO SPECIFIC PROGRAMS OF THE DEPARTMENT, LIMITED IN AMOUNT OR BY WEIGHT, AND AMPLY JUSTIFIED MIGHT WARRANT APPROVAL. IT WAS INDICATED THAT THE PROPOSAL WITH RESPECT TO THE SHIPMENT OF FREE SAMPLES OF PLANTS, SHRUBS AND SEEDS TO WASHINGTON, D.C., FROM SOURCES ABROAD WHICH DO NOT HAVE FACILITIES FOR PREPARING GOVERNMENT BILLS OF LADING MIGHT HAVE MERIT, PARTICULARLY SINCE IT WAS UNDERSTOOD THAT MOST OF THESE SHIPMENTS MOVED VIA AIR EXPRESS, THAT ALL WERE CONSIGNED TO WASHINGTON, D.C., AND CHARGES FOR THE MOST PART WERE LESS THAN $50. OTHER SPECIFIC PROGRAMS WHERE IT WAS INDICATED AN EXEMPTION MIGHT BE JUSTIFIED WERE THE POULTRY AND RAISIN TESTING PROGRAMS.

WHILE WE HAVE IN THE PAST ACQUIESCED IN THE WAIVER OF THE USE OF GOVERNMENT BILLS OF LADING IN CERTAIN INSTANCES, GENERALLY SUCH WAIVER HAS BEEN GRANTED AS TO SPECIFIC PROGRAMS ONLY UPON A SHOWING THAT THE ECONOMIES IN ADMINISTRATION UNDER COMMERCIAL BILLS OF LADING ARE MORE THAN SUFFICIENT TO OFFSET THE ADVANTAGES WHICH ACCRUE TO THE GOVERNMENT FROM THE USE OF GOVERNMENT BILLS OF LADING, OR THAT SPECIAL CIRCUMSTANCES IN A PARTICULAR PROPOSAL WARRANTS THE WAIVER. OUR APPROVAL IS USUALLY LIMITED TO SMALL LOT SHIPMENTS CONFINED TO A SINGLE MODE OF TRANSPORTATION (MAINLY EXPRESS SHIPMENTS) WITH SPECIFIC MONEY OR WEIGHT LIMITATIONS.

IN THE PRESENT INSTANCE, ALTHOUGH YOUR REQUEST REFERS IN GENERAL TERMS TO "SMALL SHIPMENTS," IT DOES NOT SUGGEST ANY LIMITATION ON WEIGHT OR CHARGES, BUT SEEKS APPROVAL TO APPLY THE EXEMPTION TO ALL OF THE SHIPPING ACTIVITIES OF THE DEPARTMENT, WITHOUT RESTRICTION. THEREFORE, YOUR FIRST PROPOSAL IS SIMILAR TO THE FIRST SUGGESTION OF THE GENERAL SERVICES ADMINISTRATION WHICH WAS DISCUSSED BUT NOT FAVORABLY CONSIDERED IN OUR DECISION OF JANUARY 6, 1959, B-135157, 38 COMP. GEN. 462. ALSO, THE SECOND PROPOSAL APPEARS TO BE SIMILAR TO THE SECOND SUGGESTION REFERRED TO IN THAT DECISION WHICH WAS NOT ADOPTED FOR THE REASONS SET OUT ON PAGES 466 AND 467 OF THAT DECISION. ACCORDINGLY, THE REQUEST FOR A GENERAL EXCEPTION FROM 5 GAO 3050, AS PROPOSED, ON THE PRESENT RECORD MUST BE DENIED. HOWEVER, A PROPOSAL WITH RESPECT TO ONE OR MORE OF THE ABOVE- MENTIONED PROGRAMS, PROPERLY LIMITED AND JUSTIFIED, WILL BE GIVEN FURTHER CONSIDERATION AT YOUR REQUEST.

IN CONNECTION WITH THE USE OF COMMERCIAL BILLS OF LADING FOR THE TRANSPORTATION OF THESE SHIPMENTS, YOU MAY WISH TO GIVE CONSIDERATION TO THE LIABILITY OF YOUR CERTIFYING OFFICER IN CONNECTION WITH THE CERTIFICATION OF VOUCHERS FOR THIS TRANSPORTATION. THE RELIEF AFFORDED CERTIFYING AND DISBURSING OFFICERS BY THE ACT OF JUNE 1, 1942, 56 STAT. 306, 31 U.S.C. 82G, EXTENDS ONLY TO OVERPAYMENTS MADE FOR TRANSPORTATION FURNISHED "ON GOVERNMENT BILLS OF LADING OR TRANSPORTATION REQUESTS," AND, ACCORDINGLY, WOULD NOT BE PERTINENT WHERE A SHIPMENT IS TRANSPORTED ON A COMMERCIAL BILL OF LADING.