PRIA, Government Policy, Made Personal

Summary

Decides who must pay shipping charges when a motor carrier delivers goods. If the receiver (consignee) is only an agent and does not own the goods, the receiver pays only the charges billed at delivery—but only if, before delivery, the receiver gives the carrier written notice that they are an agent and, if the shipment is rerouted, the real owner's name and address. When the receiver is only on the hook for billed-at-delivery charges, the sender or, if the shipment is rerouted, the real owner must pay any extra charges found later, no matter what the shipping papers say. If an agent reroutes goods and they are refused or abandoned at the final place, the real owner pays all rates when the agent told the carrier the agency and the owner's name and address. A receiver who gives wrong owner information must pay the extra charges.

Title 49, §13706

Transportation, Source: USLM XML via OLRC

(a)Liability of Consignee.—

Liability for payment of rates for transportation for a shipment of property by a shipper or consignor to a consignee other than the shipper or consignor, is determined under this section when the transportation is provided by motor carrier under this part. When the shipper or consignor instructs the carrier transporting the property to deliver it to a consignee that is an agent only, not having beneficial title to the property, the consignee is liable for rates billed at the time of delivery for which the consignee is otherwise liable, but not for additional rates that may be found to be due after delivery if the consignee gives written notice to the delivering carrier before delivery of the property—

(1)of the agency and absence of beneficial title; and

(2)of the name and address of the beneficial owner of the property if it is reconsigned or diverted to a place other than the place specified in the original bill of lading.

(b)Liability of Beneficial Owner.—

When the consignee is liable only for rates billed at the time of delivery under subsection (a), the shipper or consignor, or, if the property is reconsigned or diverted, the beneficial owner is liable for those additional rates regardless of the bill of the lading or contract under which the property was transported. The beneficial owner is liable for all rates when the property is reconsigned or diverted by an agent but is refused or abandoned at its ultimate destination if the agent gave the carrier in the reconsignment or diversion order a notice of agency and the name and address of the beneficial owner. A consignee giving the carrier erroneous information about the identity of the beneficial owner of the property is liable for the additional rates.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Provisions similar to those in this section were contained in section 10744 of this title prior to the general amendment of this subtitle by Pub. L. 104–88, § 102(a).

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Jan. 1, 1996, except as otherwise provided in Pub. L. 104–88, see section 2 of Pub. L. 104–88, set out as a note under section 1301 of this title.

§13706 Liability for Payment of Rates