B-146117, DEC. 15, 1961

B-146117: Dec 15, 1961

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EACH SHIPMENT WAS TRANSPORTED IN TWO TRAILERS. THE INDICATED OVERPAYMENT OF $32.52 (AFTER APPLYING YOUR PREVIOUS REFUND OF $22 TO THE AMOUNT ORIGINALLY PAID) ON THE FOUR SHIPMENTS WAS RECOVERED BY DEDUCTION FROM YOUR BILL A-7618 ON APRIL 10. THE QUESTION HERE IS ONE OF THE PROPER INTERPRETATION OF PARAGRAPH A OF ITEM 160 (FIRST REVISED PAGE 37. 3 AND 4 ARE NOT PERTINENT IN THE DISPOSITION OF THIS MATTER. THE PROPER CHARGES ARE COMPUTED AT THE APPLICABLE TARIFF RATE ON TOTAL WEIGHT OF THE SHIPMENT. THIS SHIPMENT IN TWO UNITS IS THEN SUBJECT TO A MAXIMUM CHARGE OF 20. SINCE TWO UNITS WERE EMPLOYED. OBVIOUSLY THEN THE MINIMUM CHARGE FOR THE ENTIRE SHIPMENT IS TWO TIMES 20. THE ITEM IS CLEAR IN STATING THE ENTIRE SHIPMENT (35.

B-146117, DEC. 15, 1961

TO K AND W TRUCKING COMPANY:

ON JUNE 2, 1961, YOU WROTE TO OUR OFFICE CONCERNING THE ACTION (UNDER FILE T-GAO-199745, 10/59-A-A4592, ETC.) TAKEN ON YOUR PRO NOS. A 4596, A 4597, A 4598 AND A 4599, ALL DATED SEPTEMBER 23, 1959, COVERING FOUR SHIPMENTS OF MACHINERY MOVING UNDER GOVERNMENT BILLS OF LADING FROM MAYWOOD, CALIFORNIA, TO BERTH 228, TERMINAL ISLAND, CALIFORNIA, ON DECEMBER 31, 1958, AND JANUARY 1 AND 2, 1959. EACH SHIPMENT WAS TRANSPORTED IN TWO TRAILERS.

ON EACH OF THE FOUR SHIPMENTS IN QUESTION, YOU COMPUTE THE CHARGES, ACCORDING TO YOUR LETTER OF OCTOBER 24, 1960, BY APPLYING 23.75 CENTS PER 100 POUNDS TO THE ACTUAL WEIGHT OF 25,318 POUNDS FOR THE FIRST UNIT (OR TRAILER), AND A RATE OF 25.75 PER POUND TO A MINIMUM WEIGHT OF 20,000 POUNDS FOR THE SECOND UNIT (OR TRAILER),MAKING A CHARGE OF $111.63 PER SHIPMENT.

ON JANUARY 10, 1961, WE INFORMED YOU THAT THE CHARGES FOR EACH OF THE FOUR SHIPMENTS SHOULD BE COMPUTED ON THE BASIS OF ALLOWING TWO UNITS AT 20,000 POUNDS EACH, OR 40,000 POUNDS AT THE RATE OF 25.75 CENTS PER 100 POUNDS, MAKING A CHARGE OF $103 PER SHIPMENT. THE INDICATED OVERPAYMENT OF $32.52 (AFTER APPLYING YOUR PREVIOUS REFUND OF $22 TO THE AMOUNT ORIGINALLY PAID) ON THE FOUR SHIPMENTS WAS RECOVERED BY DEDUCTION FROM YOUR BILL A-7618 ON APRIL 10, 1961. YOUR OBJECTION TO THE DEDUCTION ACTION TAKEN SEEMS TO BE, AS STATED IN YOUR LETTER OF JUNE 2, 1961: "WE HAD PROVEN THE CLAIM TO BE WRONG," APPARENTLY REFERRING IN THIS CONNECTION TO YOUR LETTER OF OCTOBER 24, 1960.

THE QUESTION HERE IS ONE OF THE PROPER INTERPRETATION OF PARAGRAPH A OF ITEM 160 (FIRST REVISED PAGE 37, DECEMBER 8, 1958) OF WESTERN MOTOR TARIFF BUREAU, INC., U.S. GOVERNMENT QUOTATION NO. 1:

"/A) WHEN A SINGLE SHIPMENT REQUIRES FULL UTILIZATION OF ONE OR MORE UNITS OF CARRIER'S EQUIPMENT, APPLICABLE RATES AND CHARGES SHALL APPLY ON THE ENTIRE SHIPMENT, SUBJECT TO MINIMUM CHARGES FOR 20,000 LBS., AT THE CLASS 4 RATE APPLICABLE TO THAT WEIGHT FOR EACH SUCH UNIT REQUIRING FULL UTILIZATION, (SUBJECT TO NOTES 1, 2, 3 AND 4).'

NOTES 1, 2, 3 AND 4 ARE NOT PERTINENT IN THE DISPOSITION OF THIS MATTER.

WE CONSTRUE THIS ITEM TO PROVIDE THAT WHEN A SHIPMENT, AS HERE, REQUIRES TWO UNITS (OR TRAILERS), THE PROPER CHARGES ARE COMPUTED AT THE APPLICABLE TARIFF RATE ON TOTAL WEIGHT OF THE SHIPMENT, IN THIS INSTANCE, 35,758 POUNDS AT 23.75 CENTS PER 100 POUNDS, MAKING AN "APPLICABLE RATE AND CHARGE" OF $84.93. THIS SHIPMENT IN TWO UNITS IS THEN SUBJECT TO A MAXIMUM CHARGE OF 20,000 POUNDS AT THE CLASS 4 RATE OF 25.75 CENTS FOR EACH UNIT. SINCE TWO UNITS WERE EMPLOYED, OBVIOUSLY THEN THE MINIMUM CHARGE FOR THE ENTIRE SHIPMENT IS TWO TIMES 20,000 POUNDS AT 25.75 CENTS PER 100 POUNDS, OR $103. THE BASIS EMPLOYED IN YOUR LETTER OF OCTOBER 24, 1960, USES THE MINIMUM CHARGE BASIS ONLY ON THE SECOND UNIT OF EACH SHIPMENT; BUT THE ITEM IS CLEAR IN STATING THE ENTIRE SHIPMENT (35,758 POUNDS) IS SUBJECT TO A MINIMUM CHARGE OF 20,000 POUNDS AT THE CLASS 4 RATE FOR EACH SUCH UNIT.

SINCE WE CONSIDER OUR INTERPRETATION OF THE TARIFF ITEM IN QUESTION TO PROPER, OUR ADJUSTMENT OF THE ASSESSABLE CHARGES CONSISTENT THEREWITH IS SUSTAINED.