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A carrier requested review of the Air Force's offsetting collection for the loss and damage to the shipment of a member's household goods, contending that it was not liable for the damaged items, since the damage did not occur while the item was in its custody. GAO held that the Army properly set-off the funds due to the carrier since the firm failed to provide evidence that the damage: (1) did not occur while in its custody; or (2) occured as a result of one a number of causes for which the carrier was not liable. Accordingly, the original decision was affirmed.

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