B-161500, SEP. 1, 1967

B-161500, SEP. 1, 1967

TRANSPORTATION - FREIGHT CHARGES - PADDING USED IN HOUSEHOLD EFFECT SHIPMENTS DECISION TO ROUTED THRU-PAC, INC., RE CLAIM FOR ADDITIONAL FREIGHT CHARGES FOR PADDING USED IN CONTAINER SERVICE OF HOUSEHOLD EFFECTS. CARRIER THAT CLAIMS ADDITIONAL FREIGHT CHARGES FOR PADDING USED IN CONNECTION WITH SHIPMENTS THROUGH CONTAINER SERVICE OF HOUSEHOLD EFFECTS MUST HAVE PADDING CONSIDERED AS TARE NOT INCLUDABLE IN NET WEIGHT FOR WHICH CARRIER WAS PAID SINCE NOTHING IN RECORD SHOWS THAT PADDING WAS USED FOR PURPOSES OTHER THAN TO SEPARATE AND PROTECT ARTICLES FROM DAMAGE FROM OUTSIDE CONTAINER.

TO ROUTED THRU-PAC, INC.:

YOUR LETTER OF MAY 9, 1967, REQUESTS REVIEW OF THE DISALLOWANCE BY OUR TRANSPORTATION DIVISION OF VARIOUS SUPPLEMENTAL BILLS SUBMITTED BY YOUR COMPANY CLAIMING ADDITIONAL FREIGHT CHARGES FOR PADDING USED IN CONNECTION WITH SHIPMENTS IN DOOR TO DOOR THROUGH CONTAINER SERVICE OF HOUSEHOLD EFFECTS. SUCH SUPPLEMENTAL BILLS, IN EFFECT, RAISE THE QUESTION WHETHER THE PADDING INVOLVED IS AN INTEGRAL PART OF THE NET WEIGHT OF THE SHIPMENT FOR THE CARRIAGE OF WHICH YOU, UNDER THE QUOTATIONS OR SCHEDULES OF RATES AND APPLICABLE REGULATIONS, ARE ENTITLED TO BE PAID OR WHETHER THE PADDING CONSTITUTES A PART OF TARE FOR WHICH NO CHARGES WERE PAYABLE. YOUR LETTER FORWARDS, AS ILLUSTRATIVE OF THE DISALLOWANCES, CORRESPONDENCE PERTAINING TO CLAIMS TK-826415 (YOUR SUPPLEMENTAL BILL 2-392-B DATED FEBRUARY 15, 1966, IN THE AMOUNT OF $0.56) AND TK-835478 (YOUR UNDATED SUPPLEMENTAL BILL 1230-A RECEIVED IN OUR TRANSPORTATION DIVISION JULY 25, 1966, IN THE AMOUNT OF $6.88).

THE TWO BILLS WERE FOR ADDITIONAL CHARGES FOR TRANSPORTING HOUSEHOLD EFFECTS OF MILITARY PERSONNEL ON CHANGE OF STATION UNDER GOVERNMENT BILLS OF LADING ISSUED FEBRUARY 19 AND JULY 27, 1962. FOR THE SERVICES YOUR COMPANY BILLED AND WAS PAID CHARGES IN THE AMOUNT OF $710.17 AND $652.74 RESPECTIVELY IN THAT YEAR ON THE BASIS OF THE RATES PUBLISHED IN SINGLE FACTOR RATES PUBLISHED IN YOUR TENDER NO. 1 EFFECTIVE JANUARY 6, 1962, AND NO EXCEPTION WAS TAKEN IN OUR AUDIT OF THE CHARGES PAID. YOUR SUPPLEMENTAL BILLS, PRESENTED MORE THAN THREE YEARS AFTER THE PAYMENTS WERE EFFECTED, ARE BASED ON NOTATIONS IN THE RECORD INDICATING THAT THE NET WEIGHTS OF THE SHIPMENT FOR WHICH YOU ORIGINALLY BILLED AND WERE PAID AT THE APPLICABLE RATES WERE COMPUTED BY DEDUCTING FROM THE GROSS WEIGHT OF THE SHIPMENTS, THE TARE WEIGHT INCLUDING THE WEIGHT OF CERTAIN PADS IN THE "THRUPACS.' IN TK-826415 THE NOTATIONS INDICATE 19 PADS AT 3 POUNDS EACH OR A TOTAL OF 57 POUNDS, AND IN TK-835478 16 POUNDS OF PADDING WERE INCLUDED IN THE TARE. IT IS FOR THESE 57 AND 16 POUNDS THAT YOU SUBMITTED THE SUPPLEMENTAL BILLINGS CONTENDING THAT SUCH PADS OR PADDING CONSTITUTE NECESSARY PACKING MATERIAL WHICH SHOULD BE CONSIDERED A PART OF THE NET WEIGHT OF THE SHIPMENT AND NOT PART OF THE WEIGHT OF THE "THRUPACS.'

WE UNDERSTAND THAT, IN CONNECTION WITH THE THROUGH CONTAINER SERVICE, SMALL ARTICLES SUCH AS DISHES, ETC., ARE WRAPPED TO PREVENT BREAKAGE IN CARTONS, BOXES OR BARRELS. THEREAFTER, SUCH CONTAINERS AND OTHER ARTICLES TO BE SHIPPED ARE LOADED IN AN OUTSIDE SHIPPING CONTAINER KNOWN AS A "THRUPAC.' SEE PAGE 4 ROUTED THRU-PAC RATE TENDER NO. 1 EFFECTIVE JANUARY 3, 1961. THE WEIGHT OF THE PREPACKING AND OF THE CARTONS, BOXES OR BARRELS INCLUDED IN THE "THRUPACS" (THE OUTSIDE SHIPPING CONTAINER) ARE PROPERLY INCLUDABLE IN THE NET WEIGHT OF THE SHIPMENT BUT THE WEIGHT OF THE OUTSIDE SHIPPING CONTAINER AND OF BLANKETS, PADS AND BRACING IN SUCH OUTSIDE SHIPPING CONTAINER (OTHER THAN THE PREPACKING MATERIAL INCLUDED IN THE INTERNAL CARTONS, BOXES OR BARRELS WHICH ARE PLACED INTO THE "THRUPACS") IS NOT SO INCLUDABLE IN THE NET WEIGHT. THIS SEEMS TO BE CLEARLY BROUGHT OUT ON PAGE 4 OF YOUR RATE TENDER NO. 1 (EFFECTIVE JANUARY 3, 1961) DEFINING TECHNICAL TERMS USED THEREIN. THE DEFINITIONS APPEARING PERTINENT ARE AS FOLLOWS:

"/E) PRELIMINARY PACKING MEANS THE SERVICE OF PREPARING SMALL ARTICLES OF HOUSEHOLD GOODS FOR SHIPMENT BY WRAPPING, ETC., AND PLACING THEM IN CONTAINERS SUCH AS BOXES OR BARRELS.

"/A) LOADING MEANS THE PLACING OF ARTICLES AND CONTAINERS IN THRUPACS' AND THE CLOSING OF SUCH -THRUPACS' READY FOR SHIPMENT.

"/H) -THRU-PAC- MEANS AN OUTSIDE SHIPPING CONTAINER INTO WHICH HOUSEHOLD GOODS ARE LOADED FOR SHIPMENT.

"/B) NET WEIGHT WILL CONSIST OF ACTUAL GOODS PLUS THE CARTONS, BARRELS, FIBER DRUMS, WARDROBES, CRATES AND BOXES USED TO PACK LINENS, BOOKS, BEDDING MATTRESSES, LAMP SHADES, DRAPERIES, GLASSWARE, CHINAWARE, BRIC-A- BRAC, TABLE LAMP BASES, KITCHENWARE AND OTHER FRAGILE ARTICLES. NOTHING ELSE WILL BE INCLUDED IN THE NET WEIGHT.'

ALSO, THAT PAGE STATES "RATES NAMED IN THIS TARIFF WILL BE COMPUTED ON THE NET WEIGHT OF THE ARTICLES SHIPPED INCLUDING THE PREPACKING NECESSARY FOR SAFE TRANSPORTATION.'

THERE IS NOTHING IN THE RECORD AVAILABLE HERE TO SHOW THE PAD OR PADDING FOR WHICH YOUR SUPPLEMENTAL BILLS IN TK-826415 AND TK-835478, INDICATED BY YOU TO BE REPRESENTATIVE OF SUCH BILLINGS, WERE USED IN THE PRELIMINARY PACKING OF SMALL ARTICLES IN CONTAINERS SUCH AS BOXES AND BARRELS OR TO SHOW SUCH PADS WERE USED FOR PURPOSES OTHER THAN TO SEPARATE AND THUS PROTECT FROM DAMAGE SUCH CONTAINERS (AND THEIR CONTENTS) AND OTHER ARTICLES IN THE OUTSIDE CONTAINER.

IN THE ABSENCE OF SUCH EVIDENCE, IT IS OUR VIEW THAT THE PADDING PROPERLY MUST BE CONSIDERED TARE NOT INCLUDABLE IN THE NET WEIGHT FOR WHICH YOU WERE TO BE PAID. WE FIND NOTHING IN THE DEPARTMENT OF THE ARMY REGULATION REFERRED TO BY YOU WHICH WOULD WARRANT ANY DIFFERENT CONCLUSION.