Encl. (4) to COMDTINST 4610.6
Disposition or Salvage of Damaged Property
General. When a determination has been made that damaged property accepted by the
1.
government will be salvaged, the carrier must be notified of the intent to salvage. If release of
the property is not restricted (see COMDTINST M4610.5, Chapter 17), it may be offered to
the carrier. A carrier is entitled to credit for the salvage value of property not released to it.
Such credit does not apply if the recoverable amount of the claim due to shipment under
released valuation, is less than the government's actual loss. When articles are damaged to the
point they must be scrapped, the carrier must be allowed credit for the scrap value recovered.
If applicable, deduct the cost of processing the salvage for sale from the salvage value.
2.
Procedures.
a.
Disposition of Carrier-Damaged Property. The policies for disposing or salvaging carrier-
damaged property are contained in transportation, materiel, and security directives. Field
activities must arrange to dispose of carrier-damaged property according to the directives
for handling unserviceable property of the service concerned. The OFA does not furnish
disposition instructions or the funds for disposition.
b.
Disposition of Carrier-Damaged Property Moving Under Released Rates.. A carrier's
liability for loss or damage to government property may be limited to the released
valuation cited in the carrier's tariff and on the bill of lading. When the B/L cites reference
to "released valuation," field activities must exercise care not to release damaged property
to carriers for salvage when the released valuation or amount recoverable from the carrier
is less than the actual value of the property.
c.
Disposition of Carrier-Damaged Vehicles When Rejected by Receiver. When a
government-owned damaged vehicle is rejected to a carrier because the vehicle is not
economically repairable, the carrier is entitled to the property after the government has
recovered the full amount of the claim. Accordingly, after the full amount
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