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.
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.
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 credit regulations of the Federal Highway Administration or state regulatory commission. Such a shipment will not be accepted if the consignor executes Section 7 of the Bill of Lading.
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.
5) If a shipment is required by Section 4 hereof or by any provisions of this classification 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 credit regulations of the Federal Highway Administration or state regulatory commission. Such a shipment will not be accepted as a collect shipment if the consignor executes section 7 of the Bill or Lading.
6) Freight charges must be prepaid on all shipments consigned to or care of Amusement Parks, Trade Shows, Chautauguas, Fairs or Exhibitions.
7) All freight and accessorial charges on all shipments consigned to federal, state, county or local Governmental Bodies or agencies, including schools, must be prepaid or guaranteed. (See Note A)
8) All freight and accessorial charges on all shipments of Salvage Parts or Materials must be prepaid or guaranteed.
NOTE A: Not applicable on shipments moving on Government Bills of Lading.