---
kind: "section"
citation: "49 U.S.C. § 13706"
title: "49"
title_heading: "Transportation"
number: "13706"
heading: "Liability for payment of rates"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/49/13706"
units:
  - "Subtitle IV — Interstate Transportation"
  - "Part B — Motor Carriers, Water Carriers, Brokers, and Freight Forwarders"
  - "Chapter 137 — Rates and Through Routes"
---

# §13706. Liability for payment of rates

- (a) **Liability of Consignee.—** Liability for payment of [rates](/usc/49/10102.md?p=7) for [transportation](/usc/49/10102.md?p=9) for a shipment of property by a shipper or consignor to a consignee other than the shipper or consignor, is determined under this section when the [transportation](/usc/49/10102.md?p=9) is provided by [motor carrier](/usc/49/13102.md?p=14) under this part. When the shipper or consignor instructs the [carrier](/usc/49/13102.md?p=3) transporting the property to deliver it to a consignee that is an agent only, not having beneficial title to the property, the consignee is liable for [rates](/usc/49/10102.md?p=7) billed at the time of delivery for which the consignee is otherwise liable, but not for additional [rates](/usc/49/10102.md?p=7) that may be found to be due after delivery if the consignee gives written notice to the delivering [carrier](/usc/49/13102.md?p=3) before delivery of the property—
  - (1) of the agency and absence of beneficial title; and
  - (2) of the name and address of the beneficial owner of the property if it is reconsigned or diverted to a place other than the place specified in the original bill of lading.
- (b) **Liability of Beneficial Owner.—** When the consignee is liable only for [rates](/usc/49/10102.md?p=7) billed at the time of delivery under [subsection (a)](#a), the shipper or consignor, or, if the property is reconsigned or diverted, the beneficial owner is liable for those additional [rates](/usc/49/10102.md?p=7) regardless of the bill of the lading or contract under which the property was transported. The beneficial owner is liable for all [rates](/usc/49/10102.md?p=7) when the property is reconsigned or diverted by an agent but is refused or abandoned at its ultimate destination if the agent gave the [carrier](/usc/49/13102.md?p=3) in the reconsignment or diversion order a notice of agency and the name and address of the beneficial owner. A consignee giving the [carrier](/usc/49/13102.md?p=3) erroneous information about the identity of the beneficial owner of the property is liable for the additional [rates](/usc/49/10102.md?p=7).

## Source credit

(Added Pub. L. 104–88, title I, § 103, Dec. 29, 1995, 109 Stat. 872.)

## Notes

### Editorial Notes

### Prior Provisions

Provisions similar to those in this section were contained in section 10744 of this title prior to the general amendment of this subtitle by Pub. L. 104–88, § 102(a).

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective Jan. 1, 1996, except as otherwise provided in Pub. L. 104–88, see section 2 of Pub. L. 104–88, set out as a note under section 1301 of this title.