---
kind: "section"
citation: "49 U.S.C. § 14706"
title: "49"
title_heading: "Transportation"
number: "14706"
heading: "Liability of carriers under receipts and bills of lading"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/49/14706"
units:
  - "Subtitle IV — Interstate Transportation"
  - "Part B — Motor Carriers, Water Carriers, Brokers, and Freight Forwarders"
  - "Chapter 147 — Enforcement; Investigations; Rights; Remedies"
---

# §14706. Liability of carriers under receipts and bills of lading

- (a) **General Liability.—**
  - (1) **Motor carriers and freight forwarders.—** A [carrier](/usc/49/13102.md?p=3) providing [transportation](/usc/49/10102.md?p=9) or service subject to jurisdiction under subchapter I or III of [chapter 135](/usc/49/chstIV/ptB/ch135.md) shall issue a receipt or bill of lading for property it receives for [transportation](/usc/49/10102.md?p=9) under this part. That [carrier](/usc/49/13102.md?p=3) and any other [carrier](/usc/49/13102.md?p=3) that delivers the property and is providing [transportation](/usc/49/10102.md?p=9) or service subject to jurisdiction under subchapter I or III of [chapter 135](/usc/49/chstIV/ptB/ch135.md) or [chapter 105](/usc/49/chstIV/ptA/ch105.md) are liable to the [person](/usc/49/13102.md?p=18) entitled to recover under the receipt or bill of lading. The liability imposed under this paragraph is for the actual loss or injury to the property caused by (A) the receiving [carrier](/usc/49/13102.md?p=3), (B) the delivering [carrier](/usc/49/13102.md?p=3), or (C) another [carrier](/usc/49/13102.md?p=3) over whose line or route the property is transported in the [United States](/usc/49/10102.md?p=10) or from a place in the [United States](/usc/49/10102.md?p=10) to a place in an adjacent foreign country when transported under a through bill of lading and, except in the case of a [freight forwarder](/usc/49/13102.md?p=8), applies to property reconsigned or diverted under a tariff under section 13702. Failure to issue a receipt or bill of lading does not affect the liability of a [carrier](/usc/49/13102.md?p=3). A delivering [carrier](/usc/49/13102.md?p=3) is deemed to be the [carrier](/usc/49/13102.md?p=3) performing the line-haul [transportation](/usc/49/10102.md?p=9) nearest the destination but does not include a [carrier](/usc/49/13102.md?p=3) providing only a switching service at the destination.
  - (2) **Freight forwarder.—** A [freight forwarder](/usc/49/13102.md?p=8) is both the receiving and delivering [carrier](/usc/49/13102.md?p=3). When a [freight forwarder](/usc/49/13102.md?p=8) provides service and uses a [motor carrier](/usc/49/13102.md?p=14) providing [transportation](/usc/49/10102.md?p=9) subject to jurisdiction under subchapter I of [chapter 135](/usc/49/chstIV/ptB/ch135.md) to receive property from a consignor, the [motor carrier](/usc/49/13102.md?p=14) may execute the bill of lading or shipping receipt for the [freight forwarder](/usc/49/13102.md?p=8) with its consent. With the consent of the [freight forwarder](/usc/49/13102.md?p=8), a [motor carrier](/usc/49/13102.md?p=14) may deliver property for a [freight forwarder](/usc/49/13102.md?p=8) on the [freight forwarder](/usc/49/13102.md?p=8)’s bill of lading, freight bill, or shipping receipt to the consignee named in it, and receipt for the property may be made on the [freight forwarder](/usc/49/13102.md?p=8)’s delivery receipt.
- (b) **Apportionment.—** The [carrier](/usc/49/13102.md?p=3) issuing the receipt or bill of lading under [subsection (a)](#a) of this section or delivering the property for which the receipt or bill of lading was issued is entitled to recover from the [carrier](/usc/49/13102.md?p=3) over whose line or route the loss or injury occurred the amount required to be paid to the owners of the property, as evidenced by a receipt, judgment, or transcript, and the amount of its expenses reasonably incurred in defending a civil action brought by that [person](/usc/49/13102.md?p=18).
- (c) **Special Rules.—**
  - (1) **Motor carriers.—**
    - (A) **Shipper waiver.—** Subject to the provisions of [subparagraph (B)](#c-1-B), a [carrier](/usc/49/13102.md?p=3) providing [transportation](/usc/49/10102.md?p=9) or service subject to jurisdiction under subchapter I or III of [chapter 135](/usc/49/chstIV/ptB/ch135.md) may, subject to the provisions of this chapter (including with respect to a [motor carrier](/usc/49/13102.md?p=14), the requirements of [section 13710(a)](/usc/49/13710.md?p=a)), establish [rates](/usc/49/10102.md?p=7) for the [transportation](/usc/49/10102.md?p=9) of property (other than [household goods](/usc/49/13102.md?p=10) described in [section 13102(10)(A)](/usc/49/13102.md?p=10-A)) under which the liability of the [carrier](/usc/49/13102.md?p=3) for such property is limited to a value established by written or electronic declaration of the shipper or by written agreement between the [carrier](/usc/49/13102.md?p=3) and shipper if that value would be reasonable under the circumstances surrounding the [transportation](/usc/49/10102.md?p=9).
    - (B) **Carrier notification.—** If the [motor carrier](/usc/49/13102.md?p=14) is not required to file its tariff with the [Board](/usc/49/10102.md?p=1), it shall provide under [section 13710(a)(1)](/usc/49/13710.md?p=a-1) to the shipper, on request of the shipper, a written or electronic copy of the [rate](/usc/49/10102.md?p=7), classification, rules, and practices upon which any [rate](/usc/49/10102.md?p=7) applicable to a shipment, or agreed to between the shipper and the [carrier](/usc/49/13102.md?p=3), is based. The copy provided by the [carrier](/usc/49/13102.md?p=3) shall clearly [state](/usc/49/10102.md?p=8) the dates of applicability of the [rate](/usc/49/10102.md?p=7), classification, rules, or practices.
    - (C) **Prohibition against collective establishment.—** No discussion, consideration, or approval as to rules to limit liability under this subsection may be undertaken by [carriers](/usc/49/13102.md?p=3) acting under an agreement approved pursuant to section 13703.
  - (2) **Water carriers.—** If loss or injury to property occurs while it is in the custody of a [water carrier](/usc/49/13102.md?p=26), the liability of that [carrier](/usc/49/13102.md?p=3) is determined by its bill of lading and the law applicable to water [transportation](/usc/49/10102.md?p=9). The liability of the initial or delivering [carrier](/usc/49/13102.md?p=3) is the same as the liability of the [water carrier](/usc/49/13102.md?p=26).
- (d) **Civil Actions.—**
  - (1) **Against delivering carrier.—** A civil action under this section may be brought against a delivering [carrier](/usc/49/13102.md?p=3) in a district court of the [United States](/usc/49/10102.md?p=10) or in a [State](/usc/49/10102.md?p=8) court. Trial, if the action is brought in a district court of the [United States](/usc/49/10102.md?p=10) is in a judicial district, and if in a [State](/usc/49/10102.md?p=8) court, is in a [State](/usc/49/10102.md?p=8) through which the defendant [carrier](/usc/49/13102.md?p=3) operates.
  - (2) **Against carrier responsible for loss.—** A civil action under this section may be brought against the [carrier](/usc/49/13102.md?p=3) alleged to have caused the loss or damage, in the judicial district in which such loss or damage is alleged to have occurred.
  - (3) **Jurisdiction of courts.—** A civil action under this section may be brought in a [United States](/usc/49/10102.md?p=10) district court or in a [State](/usc/49/10102.md?p=8) court.
  - (4) **Judicial district defined.—** In this section, “judicial district” means—
    - (A) in the case of a [United States](/usc/49/10102.md?p=10) district court, a judicial district of the [United States](/usc/49/10102.md?p=10); and
    - (B) in the case of a [State](/usc/49/10102.md?p=8) court, the applicable geographic area over which such court exercises jurisdiction.
- (e) **Minimum Period for Filing Claims.—**
  - (1) **In general.—** A [carrier](/usc/49/13102.md?p=3) may not provide by rule, contract, or otherwise, a period of less than 9 months for filing a claim against it under this section and a period of less than 2 years for bringing a civil action against it under this section. The period for bringing a civil action is computed from the date the [carrier](/usc/49/13102.md?p=3) gives a [person](/usc/49/13102.md?p=18) written notice that the [carrier](/usc/49/13102.md?p=3) has disallowed any part of the claim specified in the notice.
  - (2) **Special rules.—** For the purposes of this subsection—
    - (A) an offer of compromise shall not constitute a disallowance of any part of the claim unless the [carrier](/usc/49/13102.md?p=3), in writing, informs the claimant that such part of the claim is disallowed and provides reasons for such disallowance; and
    - (B) communications received from a [carrier](/usc/49/13102.md?p=3)’s insurer shall not constitute a disallowance of any part of the claim unless the insurer, in writing, informs the claimant that such part of the claim is disallowed, provides reason for such disallowance, and informs the claimant that the insurer is acting on behalf of the [carrier](/usc/49/13102.md?p=3).
- (f) **Limiting Liability of Household Goods Carriers to Declared Value.—**
  - (1) **In general.—** A [carrier](/usc/49/13102.md?p=3) or group of [carriers](/usc/49/13102.md?p=3) subject to jurisdiction under subchapter I or III of [chapter 135](/usc/49/chstIV/ptB/ch135.md) may petition the [Board](/usc/49/10102.md?p=1) to modify, eliminate, or establish [rates](/usc/49/10102.md?p=7) for the [transportation](/usc/49/10102.md?p=9) of [household goods](/usc/49/13102.md?p=10) under which the liability of the [carrier](/usc/49/13102.md?p=3) for that property is limited to a value established by written declaration of the shipper or by a written agreement.
  - (2) **Full value protection obligation.—** Unless the [carrier](/usc/49/13102.md?p=3) receives a waiver in writing under [paragraph (3)](#f-3), a [carrier](/usc/49/13102.md?p=3)’s maximum liability for [household goods](/usc/49/13102.md?p=10) that are lost, damaged, destroyed, or otherwise not delivered to the final destination is an amount equal to the replacement value of such goods, subject to a maximum amount equal to the declared value of the shipment and to rules issued by the Surface [Transportation](/usc/49/10102.md?p=9) [Board](/usc/49/10102.md?p=1) and applicable tariffs.
  - (3) **Application of rates.—** The released [rates](/usc/49/10102.md?p=7) established by the [Board](/usc/49/10102.md?p=1) under [paragraph (1)](#f-1) (commonly known as “released [rates](/usc/49/10102.md?p=7)”) shall not apply to the [transportation](/usc/49/10102.md?p=9) of [household goods](/usc/49/13102.md?p=10) by a [carrier](/usc/49/13102.md?p=3) unless the liability of the [carrier](/usc/49/13102.md?p=3) for the full value of such [household goods](/usc/49/13102.md?p=10) under [paragraph (2)](#f-2) is waived, in writing, by the shipper.
- (g) **Modifications and Reforms.—**
  - (1) **Study.—** The [Secretary](/usc/49/13102.md?p=20) shall conduct a study to determine whether any modifications or reforms should be made to the loss and damage provisions of this section, including those related to limitation of liability by [carriers](/usc/49/13102.md?p=3).
  - (2) **Factors to consider.—** In conducting the study, the [Secretary](/usc/49/13102.md?p=20), at a minimum, shall consider—
    - (A) the efficient delivery of [transportation](/usc/49/10102.md?p=9) services;
    - (B) international and intermodal harmony;
    - (C) the public interest; and
    - (D) the interest of [carriers](/usc/49/13102.md?p=3) and shippers.
  - (3) **Report.—** Not later than 12 months after January 1, 1996, the [Secretary](/usc/49/13102.md?p=20) shall submit to Congress a report on the results of the study, together with any recommendations of the [Secretary](/usc/49/13102.md?p=20) (including legislative recommendations) for implementing modifications or reforms identified by the [Secretary](/usc/49/13102.md?p=20) as being appropriate.

## Source credit

(Added Pub. L. 104–88, title I, § 103, Dec. 29, 1995, 109 Stat. 907; amended Pub. L. 104–287, § 5(38), Oct. 11, 1996, 110 Stat. 3392; Pub. L. 109–59, title IV, § 4207, Aug. 10, 2005, 119 Stat. 1757.)

## Notes

### Editorial Notes

### Prior Provisions

Provisions similar to those in this section were contained in sections 10730 and 11707 of this title prior to the general amendment of this subtitle by Pub. L. 104–88, § 102(a).

### Amendments

2005—Subsec. (f). Pub. L. 109–59 designated existing provisions as par. (1), inserted heading, and added pars. (2) and (3).

1996—Subsec. (g)(3). Pub. L. 104–287 substituted “January 1, 1996” for “the effective date of this section”.

### 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.

### Review of Liability of Carriers

Pub. L. 109–59, title IV, § 4215, Aug. 10, 2005, 119 Stat. 1760, provided that, not later than 1 year after Aug. 10, 2005, the Surface Transportation Board would complete a review of Federal regulations regarding liability protection provided by motor carriers that provided transportation of household goods and revise such regulations, if necessary, to provide enhanced protection for loss or damage.