Carmack Amedment and freight originating in the US

Activet, I think that Revenue Canada would somehow have to prove collusion on the part of the carrier for them to be implicated in any kind of tax evasion scheme. Not to say it isn't possible however. I am sure that it has happened in the past.
 
Here is another question: Is it insurance fraud (or fraudulent practice) to declare a higher value on the BOL than the goods are actually worth? Putting the carrier's liability at an artificially (fraudulently) inflated value? I am sure that we ALL know customers who do this intentionally?
 
Although the BOL may have an artifically high declared value on it, in the event of a freight claim, I would think that the insurance company would follow the "paper trail" to determine what the actual value is. This paper trail would include such things as a Customs Invoice if the shipment was crossing a border, the invoice used to bill their customer, less mark-up and taxes of course, etc. I don't believe that insurance companies make any kind of payout without first determining what the actual value should be. Inflating the value of a shipment so that in the event of a claim the insurance company would payout more than actual value, is attempted fraud.
 
Loaders...you are absolutely correct. The claim process usally mandates a copy of the sales invoice (then markup, costs etc are deducted). But per your last line...if the customer knowingly inflates the value on the BOL to put the carrier's liability higher is a fraudulent act...correct?
 
If the only reason for putting an inflated value on the BOL is an attempt to recoup more money than the shipment is worth after a loss, then yes, the shipper has initiated a fraud. The only way that this fraud could be completed would be for the carrier to damage/destroy the freight. If the carrier was acting in concert with the shipper, then they have both attempted to defraud the carriers insurance. I suppose that by misrepresenting the value on the BOL, is on its own, a fraudulant act because the carrier and its insurance provider are regarded as one entity. Now we all know why lawyers were invented!
 
Last edited by a moderator:
I had a shipper a couple of months ago that bought a piece of equipment at an auction in the USA. When he was trying to book my truck he said the piece was to be insured for $480,000.00. I guess he didn't know that I am registered at the same auction house and can go back to previous sales and see what price items sold for. This particular item sold for $37,000.00 USD. I refused to put the declared at $480,000.00 for him so he would not give me the load. Guess he was hoping my driver had a wreck and he could hit the jackpot.
 
Last edited by a moderator:
Claim - limit of liability

Carmack would apply in the absence of a filed tariff by Carrier, limiting liability and/or outlining specific conditions relative to claims processing.
Many Int'l Carriers/Forwarders, with PRIMARY liability, today do file liability and processing restrictions for both Cargo and Overcharge payment claims. These tariffs (conditions of carriage) must be publically available and/or endorsed by all parties. Acceptance may be assumed as part of any contract/rate quote initiated between the parties.

As for deductibles, know what you are dealing with as many Insurance companies, even w/ Carrier hold back will force you to chase deductible.
1-2500.00 are not the average today. Many are MIN $10K -25K
 
You must log in or register to reply here.
Top Bottom