SAMPLE COMPANY                                        Page 1 of 2
SOP # 15-3  Revision: 0                Prepared by:             _
Effective Date:                        Approved by:             _


Title:         SHIPPING AND FREIGHT CLAIMS

Policy:   The company will always strive to minimize damages to
          goods from shipping and to recover full amounts
          possible for any losses incurred by shipping damage or
          loss of goods as allowed by the Interstate Commerce
          Act.

Purpose:  To institute the methods to be followed for shipping
          and filing freight claims.

Scope:    This procedure applies to all goods shipped and
          received by domestic motor and rail common carriers.


Definitions:

INTERSTATE COMMERCE ACT - The liability of domestic motor and
rail common carriers for freight loss or damage to interstate
shipments of regulated commodities are governed by the Interstate
Commerce Act.  The act provides that such a carrier may be liable
for the full, actual loss of shipments tendered to it for
transport if the claimant can establish the following:

     1.  That the shipment was tendered to the carrier at origin
     in good condition.
     2.  That the shipment was delivered at destination in
     damaged condition.
     3.  Substantiate the amount of damage.

Since many times a shipment can be moved from origin to
destination by a number of connecting carriers, it can be
virtually impossible for a claimant to establish where in the
chain of transport the damage occurred.  Therefore, a claimant
can assert its claim against either the originating or delivering
carrier.

A carrier may avoid liability for lost or damaged freight if the
claimant does not file a written claim within nine months after
the shipment is delivered.  Further, if a claim is denied by the
carrier, the claimant must initiate legal action within two years
after declination of the claim.

BILL OF LADING - A written acknowledgement by the carrier of the
receipt of goods to be transported to a designated place and
delivery to a named person or to his or her order.  Before
accepting goods for transport, the carrier is required to issue a
bill of lading.
SHIPPING AND FREIGHT CLAIMS                           Page 2 of 2


This document contains important provisions governing the
carrier's liability for damage and for the processing of damage
claims.  For example, the bill of lading can contain a released
valuation provision which limits a carrier's liability on the
basis of the value of the shipment as released to the carrier.
Many carrier tariffs also provide that a shipper's failure to
declare a value for the shipment will be deemed to limit the
carrier's liability to the lowest released value contained in the
tariff.

Procedures:

1.0  Shipping

1.1  Prior to shipment, the shipping department will ensure that
     the product is properly packaged and loaded.  For high
     dollar items, obtain the originating carrier's inspection
     and approval of these processes if possible.

1.2  Document accurate records of the condition of the product
     when tendered to the originating carrier since the bill of
     lading acknowledgement that the shipment was received by the
     carrier in good condition only applies to products which are
     open to inspection by the carrier.

1.3  Inspect all shipping documentation, noting any provisions
     serving to limit the carrier's liability.  Specifically
     inquire as to whether the freight rate is dependent on the
     value of the shipment to be transported or whether a value
     will be imputed if no declaration is made.  If so, a value
     sufficient to cover our potential loss should be declared.

2.0  Receiving

2.1  Inspect all shipments received immediately.  Require the
     delivering carrier to describe and note any damage on the
     delivery receipt.  Take photographs of the damage.  If the
     damage is extensive, consider rejecting the shipment or
     hiring an independent inspector to evaluate the extent and
     cause of the damage.

3.0  Claims Procedures

3.1  For damaged goods, send written claim to the delivering
     carrier as soon as possible and request an inspection
     report.  For concealed damage claims (damage not apparent on
     delivery), claims should be filed within 15 days after the
     shipment is received.

3.2  For non-delivery or shortage of goods, Send a letter to
     carrier requesting proof of delivery.  File claim after
     thirty days if no answer or notification of loss is received
     from the carrier.