B-157537, MAR. 24, 1966

B-157537, MAR. 24, 1966

TO WESTERN GILLETTE, INC.:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF MARCH 17, 1966, AND EARLIER LETTER, FILE O/C 22-034285, REQUESTING REVIEW OF OUR SETTLEMENT CERTIFICATE DATED AUGUST 10, 1965, WHICH DISALLOWED YOUR CLAIM FOR $74.50 ADDITIONAL ON GOVERNMENT BILL OF LADING NO. B-8432817. THE BILL OF LADING COVERED A SHIPMENT DESCRIBED AS 4 SKIDS OF AIRCRAFT PARTS, NOI, OTHER THAN CLOTH AND METAL OR WOOD COMBINED, TRANSPORTED FROM BANGOR, MAINE, TO ARDMORE, OKLAHOMA, IN JUNE 1963.

YOU CLAIMED AND COLLECTED CHARGES OF $897.09, BASED ON A CLASS 150 RATE OF $11.27 PER 100 POUNDS APPLIED TO THE ACTUAL WEIGHT OF 7,960 POUNDS. OUR TRANSPORTATION DIVISION AUDIT IT WAS DETERMINED THAT THE ALLOWABLE CHARGES SHOULD BE $745 COMPUTED ON THE BASIS OF A CLASS 100 RATING AND A RATE OF $7.45 PER 100 POUNDS APPLIED TO A TRUCKLOAD MINIMUM WEIGHT OF 10,000 POUNDS. THE RESULTING OVERPAYMENT OF $152.09 WAS COLLECTED BY DEDUCTION FROM THE CHARGES FOUND DUE ON YOUR BILL 49 9-18-64.

YOU MAINTAIN THAT SINCE THE ARTICLES DESCRIBED AS AIRCRAFT PARTS WERE SHIPPED ON SKIDS, FOR WHICH NO PROVISION IS MADE IN ITEM 11800 OF NATIONAL MOTOR FREIGHT CLASSIFICATION A-6, SECTION 3 (B) OF RULE 50 OF THE CLASSIFICATION AUTHORIZES A CHARGE BASIS OF 110 PERCENT OF THE CHARGE DETERMINED BY APPLYING THE HIGHEST TRUCKLOAD OR VOLUME RATING PROVIDED IN THE CLASSIFICATION FOR THE ARTICLE IN THE SAME SHIPPING FORM. ITEM 11800 NAMES A CLASS 100 RATING FOR AIRCRAFT PARTS IN BOXES OR CRATES ONLY. THUS, YOUR CLAIM IS FOR 10 PERCENT ADDITIONAL TO THE CHARGES COMPUTED ON THE BASIS OF THE CLASS 100 RATING AS A PENALTY AUTHORIZED WHERE THE PACKING REQUIREMENTS OF THE CLASSIFICATION ARE NOT SATISFIED.

THE DISPOSITION OF THE ISSUE IN THIS CASE SEEMS TO TURN ON TWO POINTS: (1) THE CONSIST AND NATURE OF THE ARTICLES SHIPPED AND (2) WHETHER THE PROVISIONS OF NOTE 4 OF RULE 40 ARE APPLICABLE TO THE SHIPMENT.

IN THE SPACE ENTITLED "MARKS" ON GOVERNMENT BILL OF LADING NO. B 8432817 THERE IS A REFERENCE TO "R-4360 QEC KIT REWORK.' INVESTIGATION REVEALS THAT THE ARTICLES SHIPPED ARE QUICK-ENGINE-CHANGE KITS OR ASSEMBLIES WITHOUT THE ENGINE. WHEN THE ENGINE IS INCLUDED THE ENTIRE UNIT IS RATED AS: "POWER PACKS (QUICK-ENGINE-CHANGE UNITS AND ENGINES COMBINED), IN BOXES, CRATES OR METAL SHIPPING CRADLES; ALSO TL, ON SKIDS,"AS SHOWN IN ITEM 12240 OF NATIONAL MOTOR FREIGHT CLASSIFICATION NO. A-6. THERE DOES NOT SEEM TO BE ANY ITEM IN CLASSIFICATION NO. 6 WHICH PROVIDES RATINGS SPECIFICALLY ON QUICK-ENGINE-CHANGE UNITS WITHOUT THE ENGINES.

WHILE THE CLASSIFICATION DESCRIPTION OF AIRCRAFT PARTS, NOI, OTHER THAN CLOTH AND METAL OR WOOD COMBINED, IN BOXES OR CRATES, AS SHOWN IN ITEM 11800 OF CLASSIFICATION NO. 6, MAY BE APPROPRIATE FOR USE IN THE PRESENT INSTANCE, SUCH RATING IS MADE AVAILABLE ONLY THROUGH RULE 100 OF THE CLASSIFICATION, PROVIDING FOR RATINGS ON COMBINATION ARTICLES.

THE QUICK-ENGINE-CHANGE KITS (WITHOUT ENGINES) HERE UNDER CONSIDERATION HAVE BEEN ADMINISTRATIVELY REPORTED TO CONSIST OF ALL THE PARTS AND APPURTENANCES REQUIRED TO OPERATE A RADIAL CYLINDER TYPE ENGINE, PLUS ATTACHMENTS AND PARTS TO SET THE ENGINE INTO THE AIRPLANE STRUCTURE. THE KITS ARE SAID TO CONTAIN THE EXHAUST MANIFOLD SECTIONS, HYDRAULIC PRESSURE LINES, OIL TANKS, CARBURETOR, ETC., AS WELL AS THE COWL PANELS AND OTHER STRUCTURAL PARTS THAT MAY BE SAID TO BE PARTS OF THE AIRPLANE.

IT SEEMS UNQUESTIONABLE THAT MOST OF THE PARTS NAMED ABOVE ARE INTERDEPENDENT PARTS OF THE AIRPLANE ENGINE, NECESSARY FOR THE OPERATION THEREOF. SUCH ARTICLES COULD BE RATED AS INTERNAL COMBUSTION ENGINE PARTS AS DESCRIBED IN ITEM 133390 OF CLASSIFICATION NO. A-6, TAKING A CLASS 45 TRUCKLOAD RATING AND A 24,000 POUND TRUCKLOAD MINIMUM WEIGHT. WHILE IT IS DOUBTFUL THAT THERE ARE ANY ARTICLES IN THE QUICK-ENGINE-CHANGE KITS IN THIS SHIPMENT THAT MIGHT NOT BE SUBJECT TO THE INDICATED ENGINE PARTS RATING, IT IS POSSIBLE THAT SOME OF THE ENGINE PARTS ARE COMBINED WITH OTHER IRON OR STEEL PARTS RATABLE AS AIRCRAFT PARTS, NOI, IRON OR STEEL, ETC., IN ITEM 11800 OF THE CLASSIFICATION, SUBJECT TO A RATING OF CLASS 100 AND A TRUCKLOAD MINIMUM WEIGHT OF 10,000 POUNDS. CLASSIFICATION RULE 100, REFERRED TO ABOVE, PROVIDES THAT WHEN ARTICLES HAVE BEEN COMBINED OR ATTACHED TO EACH OTHER, THEY WILL BE CHARGED AT THE RATING FOR THE HIGHEST CLASSED ARTICLE OF THE COMBINATION (CLASS 100) AND AT THE MINIMUM WEIGHT FOR SUCH HIGHEST RATING (10,000 POUNDS). SUCH A CHARGE BASIS HAS BEEN USED IN THE SETTLEMENT OF YOUR CLAIM.

IN A LETTER DATED JANUARY 26, 1965, YOU STATED THAT THE AIRCRAFT PARTS RATING IN THE CLASSIFICATION APPLIED ONLY WHEN THE PARTS WERE IN BOXES OR CRATES. INASMUCH AS THE QUICK-ENGINE-CHANGE KITS WERE ON SKIDS, YOU SAID THAT THE SHIPMENT WAS SUBJECT TO THE 10 PERCENT PENALTY IN RULE 50 BECAUSE NOTE 4 OF RULE 40 (PROVIDING FOR ALTERNATION OF PACKING REQUIREMENTS) STATES THAT THE ALTERNATION WITH BARRELS, BOXES, OR CRATES IS NOT APPLICABLE WHEN ONLY "ONE BARE OR WRAPPED ARTICLE IS FASTENED TO ELEVATING OR LIFT TRUCK SKID, PLATFORM OR PALLET.' YOU APPARENTLY CONSIDER EACH OF THESE QUICK-ENGINE-CHANGE KITS AS COMING WITHIN THE MEANING OF "ONE BARE OR WRAPPED ARTICLE," AS THAT TERMIS USED IN NOTE 4 OF RULE 40 AND ON THAT BASIS THE ALTERNATION OF THE NAMED PACKING FORMS WITH BOXES OR CRATES IS NOT AUTHORIZED.

WE DO NOT BELIEVE, HOWEVER, THAT THE TERM "ONE BARE OR WRAPPED ARTICLE" CAN BE CORRECTLY APPLIED TO THESE QUICK-ENGINE-CHANGE KITS. AS INDICATED ABOVE, EACH KIT CONTAINS A COMBINATION OF ENGINE PARTS AND SOME STRUCTURAL AIRPLANE PARTS, MOVING UNDER A RATING ESTABLISHED BY RULE 100 OF THE CLASSIFICATION. THUS A COMPLETE KIT MAY PROPERLY BE VIEWED AS BEING COMPOSED OF MORE THAN ,ONE BARE OR WRAPPED ARTICLE" NAMED IN THE CLASSIFICATION. IN FACT, A KIT COMPRISES TWO OR MORE COMBINED AND SEPARATELY CLASSIFIED ITEMS MOUNTED ON A SKID. THEREFORE, THE AUTHORITY FOR ALTERNATION IN RULE 40 OF ELEVATING OR LIFT TRUCK SKIDS, PLATFORMS, OR PALLETS WITH BOXES AND CRATES IS CLEARLY PROVIDED. THIS VIEW WOULD NOT BE INCONSISTENT WITH THE PACKING REQUIREMENT FOR THE COMPLETE POWER PACKS (QUICK-ENGINE-CHANGE UNITS AND ENGINES COMBINED), WHICH MAY BE SHIPPED IN TRUCKLOADS ON SKIDS, IN ACCORDANCE WITH ITEM 12240 OF CLASSIFICATION A-6.

ACCORDINGLY, OUR SETTLEMENT CERTIFICATE BASED ON THE APPLICATION OF A TRUCKLOAD RATE, WITHOUT THE PENALTY PROVIDED IN CLASSIFICATION RULE 50, WAS CORRECT, AND IT IS SUSTAINED.