B-156118, MAR. 3, 1965
Highlights
REIMBURSEMENT OF TRANSPORTATION COSTS WAS DISALLOWED BECAUSE YOUR GOODS WERE TRANSPORTED UPON A SHIP REGISTERED UNDER A FOREIGN FLAG WHILE REIMBURSEMENT OF STORAGE CHARGES WAS DENIED BECAUSE OF THE ABSENCE OF ADMINISTRATIVE APPROVAL OF SUCH STORAGE. IS CONSTRUED BY OUR OFFICE AS SUPPLYING THE REQUIRED APPROVAL AND OUR CLAIMS DIVISION IS TODAY BEING INSTRUCTED TO AUTHORIZE PAYMENT OF $191.20. TO THE EXTENT THAT THE AMOUNT OTHERWISE IS CORRECT. DISALLOWANCE OF THE ITEM OF TRANSPORTATION IS PREDICATED UPON SECTION 901 OF THE MERCHANT MARINE ACT OF 1936. WHICH READS AS FOLLOWS: "* * * ANY OFFICER OR EMPLOYEE OF THE UNITED STATES TRAVELING ON OFFICIAL BUSINESS OVERSEAS OR TO OR FROM ANY OF THE POSSESSIONS OF THE UNITED STATES SHALL TRAVEL AND TRANSPORT HIS PERSONAL EFFECTS ON SHIPS REGISTERED UNDER THE LAWS OF THE UNITED STATES WHERE SUCH SHIPS ARE AVAILABLE UNLESS THE NECESSITY OF HIS MISSION REQUIRES THE USE OF A SHIP UNDER A FOREIGN FLAG: PROVIDED.
B-156118, MAR. 3, 1965
TO MR. DENNIS DAYLE:
YOUR LETTER OF DECEMBER 30, 1964, TRANSMITTED HERE BY THE ACTING COMMISSIONER OF NARCOTICS' LETTER OF JANUARY 29, 1965, REQUESTS OUR REVIEW OF THAT PART OF GENERAL ACCOUNTING OFFICE SETTLEMENT WHICH DISALLOWED YOUR CLAIM FOR REIMBURSEMENT OF WATER TRANSPORTATION COSTS AND NONTEMPORARY STORAGE CHARGES FOR YOUR HOUSEHOLD GOODS INCURRED BY YOU INCIDENT TO YOUR TRANSFER OVERSEAS.
REIMBURSEMENT OF TRANSPORTATION COSTS WAS DISALLOWED BECAUSE YOUR GOODS WERE TRANSPORTED UPON A SHIP REGISTERED UNDER A FOREIGN FLAG WHILE REIMBURSEMENT OF STORAGE CHARGES WAS DENIED BECAUSE OF THE ABSENCE OF ADMINISTRATIVE APPROVAL OF SUCH STORAGE.
CONCERNING THE LATTER ITEM, THE ACTING COMMISSIONER'S LETTER OF JANUARY 29, 1965, IS CONSTRUED BY OUR OFFICE AS SUPPLYING THE REQUIRED APPROVAL AND OUR CLAIMS DIVISION IS TODAY BEING INSTRUCTED TO AUTHORIZE PAYMENT OF $191.20, TO THE EXTENT THAT THE AMOUNT OTHERWISE IS CORRECT.
DISALLOWANCE OF THE ITEM OF TRANSPORTATION IS PREDICATED UPON SECTION 901 OF THE MERCHANT MARINE ACT OF 1936, 49 STAT. 2015, WHICH READS AS FOLLOWS:
"* * * ANY OFFICER OR EMPLOYEE OF THE UNITED STATES TRAVELING ON OFFICIAL BUSINESS OVERSEAS OR TO OR FROM ANY OF THE POSSESSIONS OF THE UNITED STATES SHALL TRAVEL AND TRANSPORT HIS PERSONAL EFFECTS ON SHIPS REGISTERED UNDER THE LAWS OF THE UNITED STATES WHERE SUCH SHIPS ARE AVAILABLE UNLESS THE NECESSITY OF HIS MISSION REQUIRES THE USE OF A SHIP UNDER A FOREIGN FLAG: PROVIDED, THAT THE COMPTROLLER GENERAL OF THE UNITED STATES SHALL NOT CREDIT ANY ALLOWANCE FOR TRAVEL OR SHIPPING EXPENSES INCURRED ON A FOREIGN SHIP IN THE ABSENCE OF SATISFACTORY PROOF OF THE NECESSITY THEREFOR.'
UNDER THE ABOVE-QUOTED PROVISO, WE HAVE NO ALTERNATIVE BUT TO DISALLOW YOUR CLAIM FOR SHIPPING EXPENSES SINCE THE RECORD REFLECTS NO FACTS ESTABLISHING THE NECESSITY FOR TRANSPORTING YOUR HOUSEHOLD GOODS ON A SHIP OF FOREIGN REGISTRY. SEE, ALSO, TO THE SAME EFFECT, SECTION 3.9 OF BUREAU OF THE BUDGET CIRCULAR NO. A-56, APRIL 30, 1962, AS AMENDED.
FURTHER, IT IS AN ESTABLISHED RULE THAT OFFICERS AND EMPLOYEES ARE CHARGEABLE WITH NOTICE OF THE RESTRICTIVE REQUIREMENTS OF SECTION 901 AND SINCE IT APPEARS THAT THE HOLLANDER STORAGE AND MOVING COMPANY WAS YOUR AGENT IN THE MATTER OF SELECTING THE FOREIGN FLAG SHIP THE RESPONSIBILITY FOR THE COMPANY'S ACT WOULD APPEAR TO DEVOLVE UPON YOU AS ITS PRINCIPAL.
THEREFORE, ON THE PRESENT RECORD THE DISALLOWANCE IN OFFICE SETTLEMENT OF NOVEMBER 4, 1964, OF THE ITEM OF $166.80 FOR SHIPPING COSTS IS CORRECT AND UPON REVIEW IT MUST BE SUSTAINED.