§ 101-40.206 - Household goods carriers’ liability.

The GSA tender of service (TOS) agreement and the carriers’ applicable tariffs establish the carriers’ minimum liability for the loss of or damage to Government employees’ household goods transported in conjunction with this subpart. A value exceeding the established TOS or tariff minimum may be declared on the bill of lading, but the carrier will charge a valuation fee for each $100, or fraction thereof, of such higher declared valuation. Employees should be fully informed as to the extent the Government will be monetarily responsible for the transportation of household goods, the differences in standard liability under Government and commercial bills of lading, the steps necessary to increase or decrease the carriers’ liability, and the relative advantage the employee would have under the Military Personnel and Civilian Employees’ Claims Act of 1964 (see § 101-40.207(b)) when the employee chooses to declare a valuation that either exceeds (in which case, the employee is liable for an excess valuation charge) or does not exceed the TOS or tariff minimum.

(a) When a Government employee's household goods are shipped under a GBL via carriers participating in the GSA Centralized Household Goods Traffic Management Program, the TOS agreement establishes the carrier's minimum liability for loss or damage, and the carrier's tender or tariff prescribes any additional charges for which the Government may be responsible relative to that liability. In the absence of an employee's written request for a valuation that exceeds the minimum liability specified in the TOS agreement, all GBLs should be annotated to show the minimum liability specified in the TOS agreement. If an employee requests the agency to declare a valuation that exceeds the TOS minimum, the agency will enter the declaration on the GBL, pay the carrier the valuation fee (if applicable), and collect the fee from the employee. Should the employee's request for increased valuation be made after the GBL has been tendered to the carrier but before the shipment has been picked up, the employee should not make a separate arrangement with the carrier for increased valuation. Instead, the employee should notify the GBL issuing officer of the valuation desired, and request that the original GBL be amended on Standard Form 1200, Government Bill of Lading Correction Notice. (See § 101-41.4901-1200.)

(b) When a Government employee's household goods are shipped under the commuted rate system, the employee makes all arrangements for moving his/her household goods, and is reimbursed to the extent provided in the commuted rate schedule. If the employee chooses to have his/her household goods transported by a commercial carrier, the shipment will move on a commercial bill of lading. The carrier's tariff establishes the standard level of carrier liability when the shipper fails to declare a value on the bill of lading, prescribes the options the shipper has for increasing or decreasing the carrier's standard liability, and sets the valuation fee payable when the declared value exceeds the minimum carrier liability for which no valuation fee applies. To limit the carrier to the minimum liability and avoid having to pay a valuation fee, the shipper must annotate the bill of lading in accordance with the provisions of the tariff.