COLLECT ON DELIVERY (COD) SHIPMENTS – ITEM 430
Unless otherwise provided, collect on delivery (COD) shipments will be accepted subject to the following provisions and charges:
SECTION 1
Shipments must be tendered on “Uniform Straight”, “Straight Bill of Lading--Short Form”, or "Straight" Bill of Lading forms as shown in the NMFC. The letters “COD” must be stamped, typed or written on all such Bills of Lading and Shipping Orders immediately before name of consignee; or, "COD" in red letters at least one (1) inch in height with thickness of stroke 1/4 inch thick or greater must be stamped or printed across the face of all Bills of Lading and Shipping Orders. Only one “COD” amount may be shown and may not be subject to change dependent upon time or conditions of payment. The name and street and post office address of consignor and consignee must be shown on Bill of Lading and Shipping Order. On Straight Bills of Lading--Short Form there must be shown in the space provided for this purpose or in the lower left hand corner of space provided for ‘description of articles, special marks and exceptions’, the following information:
Collect on Delivery, $___________________________________________________
and remit to:___________________________________________________________
Street:________________________________________________________________
City/State:______________________________________ Zip: __________________
COD Charge to be paid by: Shipper { } Consignee { }
SECTION 2
Each package must be plainly marked, labeled, or tagged by consignor showing letters COD, and name and address of consignor and consignee in accordance with NMFC Item 580.
SECTION 3
COD packages will NOT be accepted on the same Bill of Lading with packages other than COD and only packages covered by one COD bill may be tendered on one Bill of Lading.
SECTION 4
If consignor desires to forward invoice or collection papers, they must be securely attached to the shipping order copy of the Bill of Lading and the Shipping Order must show the following information:
“ATTACHED INVOICE (OR INVOICES) TO ACCOMPANY SHIPMENT TO DESTINATION.”
SECTION 5
COD shipments will NOT be accepted or receipted for when billed to one firm or person, with instructions to collect charges from another firm or person.
SECTION 6
COD shipments will NOT be accepted for transportation subject to inspection or trial by consignee, or when bearing instructions to make partial delivery. Carriers are responsible to deliver the shipment in accordance with the Bill of Lading contract. If, for any reason, upon presentation for delivery, COD payment is refused by the consignee, carriers are responsible for the disposition of the shipment only in accordance with the Bill of Lading contract and tariff provisions as applicable. Carriers are not responsible, in such circumstances, to seek or remit the COD amount to the consignor or owner of goods.
SECTION 7
Intoxicating beverages may be handled COD only under the
provisions provided by State Laws of the State in which the point of
destination is located. (See
Section 389 of Title 18 of the
SECTION 8
The amount of COD bills for COD shipments must be collected at the time such shipments are delivered to the consignee.
SECTION 9
a. Only the following forms of payment will be accepted in payment of COD amounts:
(1) Cash, up to a maximum of $250.00, except as otherwise provided in Paragraph c of this Section;
(2) Bank Cashier's Check;
(3) Bank Certified Check;
(4) Money Order; or
(5) Personal Check of the consignee when so authorized in writing or by endorsement on the Bill of Lading and Shipping Order by the consignor.
b. All checks and money orders shall be made payable to the consignor. The carrier will accept checks and money orders only as the agent of the consignor and the carriers' responsibility is limited to the exercise of due care and diligence in forwarding such checks and money orders to consignor.
c. Limit on amount of cash that will be accepted does not apply when COD shipments are picked-up by consignee, or his agent, at carrier's terminal.
SECTION 10
The charge for collecting and remitting the amount of bills for COD shipments will be collected from the consignee, except that such charge may be prepaid by the shipper, providing notation to that effect is made by the shipper on the Bill of Lading and Shipping Order. Collection or remitting charges for freight or other lawful charges due the carrier shall be paid to the carrier and must not be included in the checks or money orders made payable to the consignor.
SECTION 11
a. Upon collection of a COD bill, carrier collecting same shall remit each COD collection directly to the consignor or other person designated by the consignor as payee, promptly and within fifteen (15) days after delivery of the COD shipment to the consignee. If the COD shipments moved in interline service the delivering carrier shall, at the time of remittance of the COD collection to the consignor or payee, notify the originating carrier of such remittance.
b. The delivering carrier shall maintain a record of all COD shipments received for delivery in such manner and form as will plainly and readily show the following information with respect to each shipment:
(1) Number and date of Freight Bill;
(2) Name and address of shipper or other person designated as payee;
(3) Name and address of consignee;
(4) Date shipment delivered;
(5) Amount of COD;
(6) Date collected by delivering carrier;
(7) Date remitted to payee;
(8) Check number or other identification of remittance to payee.
SECTION 12
Except as otherwise provided herein, the charges for collecting and remitting the amount of each COD bill to be collected on shipments consigned COD as prescribed herein will be as follows:
5.5 Percent of the COD amount,
subject to a:
Minimum charge per shipment - $38.96
SECTION 13
COD shipments of explosives designated as “Class A and dangerous explosives” or “Class B and less dangerous explosives” referred to in the Hazardous Materials Regulations will not be accepted.
SECTION 14
1. Carrier will accept only written instructions from the shipper to return the shipment or to change the Bill of Lading provisions on Collect on Delivery (COD) shipments, subject to the provisions of this item by increasing, reducing or canceling the COD amount.
a. A charge of: $105.93 per shipment,
will be assessed in addition to all other lawful charges.
b. All charges accrued under this item must be prepaid or guaranteed to the satisfaction of the carrier.
2. Carriers do not obligate themselves to accept the changes provided herein but upon request a reasonable effort will be made to do so, subject to the provisions herein.
3. Carrier will, upon written authorization from consignor, change the form of payment of COD amounts to accept consignee's personal check when such form of payment was not originally authorized, subject to an additional charge per shipment of $65.62.
If request is received after the shipment has been tendered for delivery and refused by consignee, the shipment will also be assessed the applicable charge for redelivery in addition to the charge for changing the form of acceptable payment.
4. Consignor must guarantee payment of the charge for changing the form of payment and the redelivery charge, if any.
SECTION 15
The carrier shall not be liable for the collection of the COD amount whenever either of the following conditions applies:
a. When the shipper fails to mark the Bill of Lading, Shipping Order and Packages in compliance with Sections 1 and 2 of this item, or
b. When the carrier inadvertently fails to collect the proper COD amount and the shipper files no claim for same within 30 days of the shipment's delivery.