Review of Settlement Action Taken by GSA

A carrier requested a review of the settlement action taken in relation to 11 shipments of rifles. The General Services Administration deducted $1,529 from the amount due the carrier as the result of an audit determination that the carrier had collected overcharges of $139 on each of 11 Government bills of lading (GBL). The issue was whether the commodity shipped on the 11 GBL's was excluded by item 140 from application of the rates published in the carriers Tender 266. This was the basis used by GSA in its audit action. The carrier applied the rate of $6.45 per 100 pounds to a minimum weight of 30,000 pounds. The lower rate of $4.29 per 100 pounds used by GSA was derived from item 1170 of Tender 260. This rate was a general commodity rate applicable to all kinds of freight except articles described in item 140. Among the exempted commodities were hand or rifle guns or gun mounts, or components thereof. The carrier believed that these commodities were exempt. GSA contended that the 30 caliber rifles were not guns within the classification of the National Motor Freight Classification which governed the carrier's Tender 266. The term guns in this classification is "Guns, NOI" and includes cannons, Howitzers, or mortars, which are not portable. NOI is a technical trasportation term defined in the Classification as not more specifically described herein. GAO held that the use of the word gun without "NOI" in item 140 was a strong indication that the exemption was not intended to be restricted to large guns. The fact that a tender is governed by the Classification was irrelevant where the tender, by its terms, was inapplicable to the articles shipped. GAO believed the rifles shipped on the 11 GBL's were exempt articles. Accordingly, the GSA settlement action was incorrect and a refund of $1,529 was to be made to the Carrier.