ITEM 770 Prepayment or Guarantee of Charges

(Exceptions completely replacing NMFC Item 770)

Except as provided in Items 770-20 and 770-25, shipments will be accepted subject to the following provisions:

SECTION 1.
    A prepaid shipment is one on which the charges for transportation service rendered at the request of the consignor, including charges for any accessorial services performed at the request of the consignor are to be paid by the shipper.

SECTION 2.
    A collect shipment is one which the charges for transportation service including accessorial services rendered at the request of the consignee, or requested by the consignor for the consignee, are to be paid for by the consignee.

SECTION 3.
    A shipment on which charges are to be paid by a party other than the consignor or consignee will be accepted provided that the consignor has established credit with the carrier picking up the shipment at origin and guarantees to pay the charges, if the third party fails to do so within the time allowed under the provisions of Item 435 of this tariff. Such a shipment will not be accepted if the consignor executes Section 7 if the Bill of Lading.

SECTION 4.
    If, in the judgment of the carrier picking up a shipment at origin, the forced sale of the goods would not realize the total charges due at destination, the shipment must be prepaid.

SECTION 5.
    If a shipment is required by Section 4 hereof by any provision of this tariff, or tariffs governed by the tariff, to be prepaid, it will be accepted on a collect basis, if the consignor has established credit with the carrier picking up the shipment at origin, and the consignor guarantees to pay the charges if the consignee fails to do so within the time allowed under the provisions of Item 435 of this tariff. Such a shipment will not be accepted as a collect shipment if the consignor executes Section 7 of the Bill of Lading.