Transportation of Household Goods; Consumer Protection Regulations

SUMMARY: The FHWA is proposing to amend the regulations governing the

transportation of household goods. These regulations protect consumers

who ship household goods by motor vehicle. This action is necessary to

implement the ICC Termination Act of 1995 (ICCTA) and to update the

regulations. This proposal would make the regulations easier to read

and understand, require household goods carriers to file an annual

arbitration report in place of the outdated annual performance report,

address hostage freight problems, modify a consumer protection

publication, and make conforming and technical amendments.

DATES: Comments to this NPRM should be received no later than July 14,

1998. Late comments will be considered to the extent practicable.

ADDRESSES: Signed, written comments should refer to the docket number

appearing at the top of this document and must be submitted to the

Docket Clerk, U.S. DOT Dockets, Room PL-401, 400 Seventh Street, SW.,

Washington, DC 20590-0001. All comments received will be available for

examination at the above address between 10 a.m. and 5 p.m., e.t.,

Monday through Friday, except Federal holidays. Those desiring

notification of receipt of comments must include a self-addressed,

stamped envelope or postcard.

FOR FURTHER INFORMATION CONTACT: Mr. Thomas Vining, Chief, Licensing

and Insurance Division (HIA-30), Office of Motor Carrier Information

Analysis, (202) 358-7055, Mr. Michael Falk, Motor Carrier Law Division,

Office of the Chief Counsel (HCC-20), (202) 366-1384, or Mr. David

Miller, Office of Motor Carrier Research and Standards (HCS-10), (202)

366-1790, Federal Highway Administration, Department of Transportation,

400 Seventh Street, SW., Washington, DC 20590.

SUPPLEMENTARY INFORMATION:

Electronic Access

Internet users may access all comments received by the U.S. DOT

Dockets, Room PL-401, by using the universal resource locator (URL):

http://dms.dot.gov. It is available 24 hours each day, 365 days each

year. Please follow the instructions on-line for more information and

help.

You may download an electronic copy of this document using a

personal computer, modem, and suitable communications software from the

Federal Register Electronic Bulletin Board Service at (202) 512-1661.

Internet users may reach the Federal Register's home page at URL:

http://www.nara.gov/nara/fedreg and at the Government Printing Office's

databases at URL: http://www.access.gpo.gov/su__docs.

Background

Many customers of household goods carriers, particularly those

customers who move at their own expense and are infrequent users of

transportation services, are unsophisticated and less able to protect

themselves than commercial shippers. In order to ensure these consumers

are protected, the Interstate Commerce Commission (ICC) prescribed

regulations governing the transportation of household goods. These

regulations were codified at 49 CFR Part 1056.

Following the termination of the ICC, the responsibility for the

household goods regulations was delegated to the Secretary of

Transportation pursuant to the ICCTA, Pub. L. 104-88, 109 Stat. 803,

effective January 1, 1996. The Surface Transportation Board (STB) and

the FHWA transferred these regulations from 49 CFR chapter X, Part 1056

to 49 CFR chapter III, Part 375 on October 21, 1996. See 61 FR 54706.

On December 27, 1996 (61 FR 68162), the Secretary of Transportation

delegated to the Federal Highway Administrator the responsibilities to

carry out certain functions and exercise the authority vested in the

Secretary under the ICCTA, including 49 U.S.C. 14104, Household goods

carrier operations.

In a report to Congress dated October 24, 1994, the ICC reported it

received over 8,000 complaints from household goods shippers between

October 1, 1992, and August 25, 1994. Since January 1, 1996, the FHWA

has also received a high volume of complaints from household goods

shippers. The FHWA believes regulations designed to protect this large

population of unsophisticated shippers continue to be necessary.

Enactment of the ICCTA requires deletion from the regulations of

all references to the former ICC and repealed sections of the

Interstate Commerce Act, revision of the regulations to codify the

transfer to the FHWA of oversight responsibilities for the household

goods moving industry, and other editorial corrections. We are also

redrafting all sections in a more reader-friendly style for clarity.

New Definition of Household Goods

Since the ICCTA changed the definition of ``household goods'' to

eliminate office and trade show movements, it is no longer appropriate

to include this kind of transportation within the scope of the

household goods regulations. Therefore, we are making conforming

changes to the definitions contained in 49 CFR 375.103.

Elimination of Former ICC Dispute Resolution Functions

The House of Representatives' report accompanying the ICCTA

specifically requested that DOT refrain from allocating scarce

resources to resolve private disputes, but only to oversee the

regulations. Congress modified the arbitration system to afford

consumers a forum for resolving loss and damage claims arising from

transportation of household goods and to replace the informal dispute

resolution functions conducted by the ICC without a statutory

requirement. Congress wants ``private, commercial disputes to be

resolved the way all other commercial disputes are resolved-- by the

parties.'' See H.R. Rep. No. 104-311, at 87-88 (1995). See also pages

117 and 121.

Your Rights and Responsibilities When You Move

The FHWA is proposing to retain most of the former ICC's

regulations, including the requirement for motor common carriers of

household goods to copy or publish, and distribute a modified version

of the ICC's consumer protection publication ``Your Rights And

Responsibilities When You Move.'' This modified publication would

provide shippers of household goods the same type of common consumer

protection information previously required by the ICC. Prior to

contracting with an individual shipper, a motor common carrier of

property transporting household goods would be required to provide the

individual shipper with the booklet explaining the individual shipper's

rights and responsibilities under Federal law. The rights and

responsibilities booklet basically restates in plain, common English a

household goods carrier's obligation to follow specifically 49 CFR

Parts 375 and

[[Page 27127]]

377, and generally other regulations for all motor carriers.

The FHWA proposes to print the entire revised text of the ``Your

Rights and Responsibilities When You Move'' booklet in appendix A to 49

CFR 375. Household goods carriers would furnish the text of appendix A

to their customers. The large number of household goods carriers

located throughout the country would ensure appendix A is readily

available to any individual who contracts with a household goods

carrier.

Discontinuance of Annual Performance Reports

Under 49 CFR 375.18, household goods carriers were required to

submit annual performance reports on Form OCE-101 containing 16 items

regarding the number of shipments transported, the number and type of

estimates provided, charges billed, timeliness of pickups and

deliveries, and claims for loss and damage. The FHWA proposes to

abolish this requirement. This is consistent with the intent of the

Household Goods Transportation Act of 1980 (Pub. L. 96-454, 94 stat.

2011) and the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.)

to minimize paperwork requirements on household goods carriers in a

manner not compromising the protection of individual shippers. Despite

the ICC's best efforts to ensure accurate reporting by requiring

carrier certification of the reports, the FHWA is not convinced the

performance data is reliable. Periodic audits would be necessary to

ensure the performance information reported is accurate. Resources

simply do not exist for such review of the carriers. Any value this

information would be to the individual shipper would come from a

comparative analysis of the data submitted by the carriers. However,

requiring motor carriers to report comparative data the FHWA cannot

verify is inherently unfair, especially to those carriers who

scrupulously comply with the reporting requirements.

Notifying Shippers of Arbitration Procedures

The overwhelming majority of household goods complaints received by

the ICC, and now the FHWA, involve loss and damage claims. The ICCTA

imposes an arbitration requirement to handle such claims against all

motor carriers providing transportation of household goods in

interstate commerce. 49 U.S.C. 14708. The FHWA proposes to amend the

former ``information for shippers'' section of the regulations,

formerly 49 CFR 375.2 (proposed to be Sec. 375.213), to replace the

required summary of the carrier's dispute settlement program with a

summary of the arbitration procedure.

Arbitration Program Review by the FHWA

The ICCTA also requires the FHWA to--

``complete a review of the dispute settlement program established

under this section. If, after notice and opportunity for comment,

the [FHWA] determines that changes are necessary to such a program

to ensure the fair and equitable resolution of disputes under this

section, the [FHWA must] implement such changes and transmit a

report to Congress on such changes.'' 49 U.S.C. 14708(g).

The FHWA is reviewing the dispute settlement (arbitration) program

established by 49 U.S.C. 14708. The FHWA would like comments from the

public whether the arbitration program Congress mandated ensures fair

and equitable resolution of disputes. If you believe the arbitration

program fails to ensure fair and equitable resolutions of disputes,

please provide specific comments why it does not and what you would

change to make it more fair and equitable. The FHWA will consider these

comments in determining whether changes must be made to the arbitration

program.

Arbitration Results Report

The FHWA proposes to require all carriers who presently must file

an annual performance report, to file in its place an ``arbitration

results report.'' This new report would list the motor carrier's

arbitration requests and dispositions. Such a report would assist the

FHWA in carrying out its statutory responsibility to report to Congress

regarding the dispute settlement program, and to provide individual

shippers with relevant claims handling information. This report will

reduce the existing reporting burden on carriers and provide relevant

information concerning the most common household goods shipper

complaint, unsatisfactory settlement of loss and damage claims.

The FHWA also proposes to apply a modified version of the ICC's

performance report certification requirement to the arbitration results

report. The existing certification requires a verification under

penalty of perjury and identifies 18 U.S.C. 1001 as the Federal

criminal penalty applicable to false statements made in the report.

This provision provides for penalties if carriers or their employees

fail to make a truthful and accurate report to the Secretary of

Transportation. In addition, the FHWA proposes to reference the civil

penalty provisions under 49 U.S.C. 14901 by incorporating them into

proposed Sec. 375.1001. The FHWA believes arbitration data submitted by

the carriers will be inherently more reliable than the performance-

based data in the current reports because of the formal nature of the

proceedings and the ability of the FHWA to easily spot check the

reported results.

Hostage Freight

The FHWA has been receiving an increasing number of complaints from

individual shippers who claim carriers refuse to deliver their goods

after the individual shippers offer to pay 110 percent of the estimate

as prescribed by 49 CFR 375.3(d). These so-called hostage freight

situations defeat the protections of the 110-percent rule and cause

serious inconvenience to individual shippers. The FHWA does not have

the resources to seek court injunctions to require these carriers to

comply with the regulations and release the household goods. The FHWA,

therefore, proposes changes to enhance an individual shipper's claim

for damages based upon expenses incurred as a result of the carrier's

refusal to deliver the household goods, reduce the number of disputes

contributing to delays in delivery, and restore price certainty to the

transaction.

The FHWA proposes to include in Sec. 375.407 language expressly

providing that an individual shipper may assert a cargo delay claim in

circumstances where a carrier fails to relinquish a shipment upon the

shipper's offer to pay 110 percent of the non-binding estimate. The

proviso would state any shipment deliberately withheld from delivery by

a carrier after an individual shipper has offered to pay 110 percent of

the estimate constitutes a failure to transport a shipment with

reasonable dispatch. Thus, hostage freight situations could be the

basis for cargo delay claims under 49 CFR part 370.

In addition, the FHWA proposes to require carriers provide each

individual shipper a written estimate. The FHWA believes most carriers

already provide estimates to individual shippers, though we have heard

from individual shippers who allege an estimate was not provided. In

many instances, individual shippers allege their carrier explained the

price provided to the individual shipper was a ``rate quote'' but not

an estimate.

The FHWA would not require the estimate be binding. The FHWA would

continue to allow carriers to negotiate with individual shippers

whether the estimated charges would be binding or non-binding upon the

parties.

[[Page 27128]]

The regulations also would provide, in Sec. 375.403, that a carrier

transporting a shipment under a binding estimate reaffirms that

estimate and waives any subsequent claims about additional transported

items unless its objection is made at the time of pickup. Once the

objection is made, the carrier would be required to execute a new

binding or non-binding estimate.

Proposed Changes to the Credit Regulations

The American Movers Conference and the Household Goods Carrier's

Bureau Committee filed a petition with the ICC on May 3, 1995,

requesting an amendment to the credit regulations (now contained in 49

CFR 377.215) to prescribe an increased minimum service charge for the

extension of credit. They also petitioned to require assessment of the

service charge until the freight bill is paid. Ex Parte No. MC-1 (Sub-

No.6), Payment of Rates and Charges of Motor Carriers--Credit

Regulations--Household Goods (Petition of American Movers Conference

and Household Goods Carrier's Bureau To Amend Credit Regulations). On

March 26, 1996, the STB served a notice on the parties indicating the

ICCTA transferred the regulatory function for the proceeding from the

ICC to the Secretary of Transportation. The responsibility for

considering such regulatory issues has been delegated to the FHWA. The

American Movers Conference changed its name to the American Moving and

Storage Association (AMSA) on January 1, 1998.

The household goods transportation regulations require carriers to

present their freight bills within 15 days of date of delivery and

provide for a credit period of 7 days (excluding weekends and legal

holidays). The regulations further provide for the automatic extension

of the prescribed 7-day credit period to a total of 30 calendar days

for any shipper who has not paid the freight bill within the 7-day

period. However, a service charge of one percent of the amount of the

freight bill, subject to a minimum charge of $10.00, must be applied to

the extended credit period. The Petitioners requested the ICC to amend

this regulation to do both of the following two things:

(1) Increase the minimum service charge from $10.00 to $20.00; and

(2) Extend the one percent service charge to each 30-day period or

fraction thereof after the initial credit period. The Petitioners noted

that since the existing credit regulation does not assess any credit

charge to shippers who have not paid the carrier's freight bill within

the initial 30-day credit period, delinquent shippers thereafter obtain

free credit indefinitely.

The ICC took no action on this petition. The FHWA will incorporate

this petition in this rulemaking and discontinue Ex Parte No. MC-1

(Sub-No. 6). For purposes of this rulemaking, the FHWA proposes to

adopt the above-described amendments to the credit regulations and

solicits public comment regarding their propriety. The FHWA also

proposes to move the credit regulations pertaining to household goods

transportation from 49 CFR 377.215(c) to 49 CFR 375.807 for ease of

reference.

On-Board Trailer Scales

The public has alerted the FHWA to a few motor carriers who have

begun to use on-board trailer scales. These are generally non-certified

scales and expressly prohibited. The FHWA believes their use is a

violation of the former ICC's regulations. The FHWA is affirming the

prohibited use of such on-board trailer scales.

The FHWA, however, solicits comments regarding the accuracy,

reliability, and acceptability of such non-certified on-board trailer

scales, preferably supported by scientific data.

The Maximum Threshold for Weighing Shipments Upon a Certified Platform

or Warehouse Scale

The AMSA has asked the FHWA to consider amending Sec. 375.7(a)(5)

by raising the 454 kilogram (1,000 pound) maximum threshold requirement

for weighing shipments upon a certified platform or warehouse scale.

This threshold requirement has remained unchanged since 1939, when the

ICC first allowed the practice of weighing small shipments on platform

or warehouse scales rather than weighing the entire motor vehicle. See

17 M.C.C. 467.

The AMSA's October 1997 petition states average weights for private

transferee C.O.D. household goods shipments have increased from 4,611

pounds in 1982 to 6,023 pounds today. The AMSA believes the industry

now considers 1,362 kilograms or less (3,000 pounds or less) shipments

to be small rather than 454 kilograms or less (1,000 pounds or less)

shipments.

Although the rationale behind the 1,000 pounds weight threshold in

Sec. 375.7(a)(5) is unclear, it is possible that the ICC may have

linked the 1,000 pounds weight threshold to tariff provisions assessing

a minimum charge for shipments weighing less than 1,000 pounds.

The FHWA believes raising the limit to a higher maximum (i.e.,

1,362 kilograms) might, in essence, allow movers to charge a minimum

rate at the higher weight threshold when the shipment actually weighs

less than the higher weight threshold. We are concerned that by

adopting the AMSA's definition of a small shipment as one weighing

3,000 pounds or less (1,362 kilograms or less), we could be perceived

as giving our blessing to an increase in the minimum rate threshold in

household goods carriers' tariffs. The FHWA has no authority to approve

or disapprove of household goods carriers' tariff charges. The statute

gives this responsibility to the STB.

In addition, the FHWA believes that should an increase in the

weight threshold result in higher minimum charges for small shipments,

there may be a negative impact upon highway and motor carrier safety.

Higher minimum charges might force individual shippers to reconsider

using professional carriers to perform the transportation service.

These individual shippers, who would otherwise ship their own household

goods, might decide to save money by transporting their own household

goods using rental trucks. The FHWA believes allowing more individual

shippers to operate large, unfamiliar rental vehicles, would add more

risks to highway safety than maintaining a lower weight threshold,

thereby maintaining a lower minimum charge. The risks might include

more accidents, near misses, and personal injuries due to carrying

goods improperly or unsecured.

The FHWA would like comments about whether the FHWA should retain,

raise, or lower the 454 kilogram maximum threshold. In your comments,

please provide any historical background information you may have on

this subject.

Replacement of the Term ``Money Order''

The FHWA is proposing to replace the individual shipper's use of

the term ``money order'' to pay for transportation of household goods

with a much more general term, a ``cashier's check.'' The FHWA proposes

to use this term, as it is defined in 12 CFR 229.2(i).

This would allow individual shippers to use financial or depository

institutions' official checking systems, or U.S. Postal Service money

orders. The regulations at 12 CFR 229.2(k) define a money order as a

check, too. Thus, an individual shipper could use a cashier's ``money

order.'' The FHWA believes the use of general money orders may

compromise the individual shipper's financial safety during a time

period when the individual shipper is at a greater risk of losing his

ability to pay

[[Page 27129]]

for transportation charges. The FHWA believes the use of money orders,

generally payable to the bearer, increases the risks of lost funds. The

FHWA believes the use of a cashier's check (including a U.S. Postal

Service money order) is much safer, allowing the check to be replaced

more easily. The individual shipper might ask a financial institution

(e.g., a State savings bank, a national bank, credit union, or savings

association) or a U.S. Post Office to draw an official cashier's check

for the transportation charges estimated and possibly another check for

ten percent of the estimated charges, in case the shipment moves under

a non-binding estimate and the resulting transportation charges are

more than the non-binding estimate. The FHWA believes the use of the 12

CFR 229.2 definitions will provide consistency. This would eliminate

possible duplicative and contradictory definitions of these common

terms. The FHWA solicits comments regarding this change.

Order of the Proposed Regulations

The following table specifies the proposed section of each rule,

the old section (if any) where the rule originated, and the title of

the proposed section.

Part 375.--Transportation of Household Goods in Interstate Commerce

----------------------------------------------------------------------------------------------------------------

Proposed section Old section Title of proposed section

----------------------------------------------------------------------------------------------------------------

SUBPART A--GENERAL REQUIREMENTS

----------------------------------------------------------------------------------------------------------------

375.101.................................. 375.1(a)................................ Who must follow these

regulations?

375.103.................................. 375.1(b)................................ What are the definitions of

terms used in this part?

----------------------------------------------------------------------------------------------------------------

SUBPART B--BEFORE OFFERING SERVICES TO CUSTOMERS

Liability Considerations

----------------------------------------------------------------------------------------------------------------

375.201.................................. 375.12.................................. What is my normal liability

for loss and damage when I

accept goods from an

individual shipper?

375.203.................................. What actions of an individual shipper

375.12................................... may limit or reduce my normal

liability?.

----------------------------------------------------------------------------------------------------------------

General Responsibilities

----------------------------------------------------------------------------------------------------------------

375.205.................................. 375.14.................................. May I have agents?

375.207.................................. 375.17.................................. What items must be in my

advertisements?

375.209.................................. 375.13.................................. How must I handle

complaints and inquiries?

375.211.................................. None.................................... Must I have an arbitration

program?

375.213.................................. 375.2................................... What information must I

provide to a prospective

individual shipper?

Collecting Transportation Charges

----------------------------------------------------------------------------------------------------------------

375.215.................................. 373, subpart A.......................... How must I collect charges?

375.217.................................. 377, subpart A.......................... May I collect charges upon

delivery?

375.219.................................. 377.215(a) and (b)...................... May I extend credit to

shippers?

375.221.................................. 375.19.................................. May I use a charge card

plan for payments?

----------------------------------------------------------------------------------------------------------------

SUBPART C--SERVICE OPTIONS PROVIDED

----------------------------------------------------------------------------------------------------------------

375.301.................................. None.................................... What service options may I

provide?

375.303.................................. 375.11.................................. If I sell excess liability

insurance coverage, what

must I do?

----------------------------------------------------------------------------------------------------------------

SUBPART D--ESTIMATING CHARGES

----------------------------------------------------------------------------------------------------------------

375.401.................................. None.................................... Must I estimate charges?

375.403.................................. 375.3................................... How must I provide a

binding estimate?

375.405.................................. 375.3................................... How must I provide a non-

binding estimate?

375.407.................................. 375.3................................... Under what circumstances

must I relinquish

possession of a collect-on-

delivery shipment

transported under a non-

binding estimate?

----------------------------------------------------------------------------------------------------------------

SUBPART E--PICK UP OF SHIPMENTS OF HOUSEHOLD GOODS

Before Loading

----------------------------------------------------------------------------------------------------------------

375.501.................................. 375.5................................... Must I write up an order

for service?

375.503.................................. 375.6................................... Must I write up a bill of

lading?

----------------------------------------------------------------------------------------------------------------

Weighing The Shipment

----------------------------------------------------------------------------------------------------------------

375.505.................................. 375.7................................... Must I determine the weight

of a shipment?

375.507.................................. 375.7................................... What is a certified scale?

375.509.................................. 375.7................................... How must I determine the

weight of a shipment?

375.511.................................. 375.7................................... May I use an alternative

method for shipments

weighing 454 kilograms or

less?

375.513.................................. 375.7................................... Must I give the individual

shipper an opportunity to

observe the weighing?

375.515.................................. 375.7................................... May an individual shipper

waive his/her right to

observe each weighing?

375.517.................................. 375.7................................... May an individual shipper

demand re-weighing?

375.519.................................. 375.7................................... Must I obtain weight

tickets?

[[Page 27130]]

375.521.................................. 375.7................................... What must I do if an

individual shipper wants

to know the actual weight

or charges for a shipment

before I tender delivery?

----------------------------------------------------------------------------------------------------------------

SUBPART F--TRANSPORTATION OF SHIPMENTS

----------------------------------------------------------------------------------------------------------------

375.601.................................. 375.8................................... Must I transport the

shipment in a timely

manner?

375.603.................................. 375.8................................... When must I tender a

shipment for delivery?

375.605.................................. 375.8................................... How must I notify an

individual shipper of any

service delays?

375.607.................................. 375.8................................... What must I do if I am able

to tender a shipment for

final delivery more than

24 hours before a

specified date?

375.609.................................. 375.12(c)............................... What must I do for shippers

who store household goods

in transit?

----------------------------------------------------------------------------------------------------------------

SUBPART G--DELIVERY OF SHIPMENTS

----------------------------------------------------------------------------------------------------------------

375.701.................................. 375.10.................................. May I provide for a release

of liability on my

delivery receipt?

375.703.................................. 375.3(d)................................ What is the maximum collect-

on-delivery amount I may

demand at the time of

delivery?

375.705.................................. 375.16.................................. If a shipment is

transported on more than

one vehicle, what charges

may I collect at delivery?

375.707.................................. 375.15.................................. If a shipment is partially

lost or destroyed, what

charges may I collect at

delivery?

375.709.................................. 375.15.................................. If a shipment is totally

lost or destroyed, what

charges may I collect at

delivery?

----------------------------------------------------------------------------------------------------------------

SUBPART H--COLLECTION OF ACTUAL CHARGES

----------------------------------------------------------------------------------------------------------------

375.801.................................. None.................................... What types of charges apply

to subpart H?

375.803.................................. 377.205................................. How must I present my

freight or expense bill?

375.805.................................. 375.3(d)................................ If I was forced to

relinquish a collect-on-

delivery shipment before

the payment of ALL

charges, how do I collect

the balance?

375.807.................................. 377.215................................. (c)What actions may I take

to collect the charges

upon my freight bill?

----------------------------------------------------------------------------------------------------------------

SUBPART I--FILING ANNUAL ARBITRATION REPORTS

----------------------------------------------------------------------------------------------------------------

375.901.................................. 375.18.................................. What is an annual

arbitration report?

375.903.................................. None.................................... Who must file an annual

arbitration report?

375.905.................................. None.................................... Where and when do I file an

annual arbitration report?

375.907.................................. None.................................... How must I prepare and

submit an annual

arbitration report?

----------------------------------------------------------------------------------------------------------------

SUBPART J--PENALTIES

----------------------------------------------------------------------------------------------------------------

375.1001................................. None.................................... What penalties do we impose

for violations of this

part?

----------------------------------------------------------------------------------------------------------------

APPENDIX A

----------------------------------------------------------------------------------------------------------------

Part 375, Appendix A..................... Part 375--Form: Office of Compliance and Your Rights and

Enforcement (OCE)-100. Responsibilities When You

Move.

----------------------------------------------------------------------------------------------------------------

Rulemaking Analyses and Notices

All comments received before the close of business on the comment

closing date indicated above will be considered and will be available

for examination in the docket number appearing at the top of this

document. The FHWA will file comments received after the comment

closing date in the docket and will consider late comments to the

extent practicable. The FHWA may, however, issue a final rule at any

time after the close of the comment period. In addition to late

comments, the FHWA will also continue to file, in the docket, relevant

information becoming available after the comment closing date, and

interested persons should continue to examine the docket for new

material.

Internet users may access all comments received by the U.S. DOT

Dockets, Room PL-401, by using the universal resource locator (URL):

http://dms.dot.gov. It is available 24 hours each day, 365 days each

year. Please follow the instructions on-line for more information and

help.

Executive Order 12866 (Regulatory Planning and Review) and DOT

Regulatory Policies and Procedures

The FHWA has determined this action is neither a significant

regulatory action under Executive Order 12866 nor significant under the

Department of Transportation's regulatory policies and procedures. It

is anticipated the economic impact of this action will not be

substantial because this proposed rule makes minor, technical changes

to the Federal Motor Carrier Commercial Regulations for household goods

carriers. A full regulatory evaluation, therefore, is not warranted.

Regulatory Flexibility Act

In compliance with the Regulatory Flexibility Act (5 U.S.C. 601-

612), the FHWA has evaluated the effects of this rule upon small

entities. The Small Business Administration (SBA) requires Federal

agencies to analyze the impact of proposed rules on small businesses

using the SBA Small Business Size Standards. These standards are based

on the number of employees or revenue generated, and small businesses

are listed by standard industrial classification (SIC) code.

The FHWA believes there is no way to estimate the proportion of

small

[[Page 27131]]

entities that are affected by motor carrier consumer protection

regulations because the Motor Carrier Management Information System

(MCMIS), the FHWA database of all entities which operate commercial

motor vehicles, does not contain information pertaining to revenue,

number of employees, or SIC codes. The most reliable method of

determining the size of the motor carrier using MCMIS is by number of

power units. For purposes of this analysis, a small motor carrier means

a motor carrier with 10 power units or fewer.

The FHWA has, in its August 1996 databases, 10,097 motor common

carriers who identified themselves as transporting household goods in

interstate or foreign commerce. Of this number, 9,179 (or 90.9 percent)

have identified themselves as having ten or fewer power units (i.e.,

straight trucks or truck tractors).

The FHWA believes this database significantly overstates the actual

number of motor carriers subject to the household goods consumer

protection regulations. The ICCTA created a new, more restrictive

definition of transportation of household goods than the ICC had used.

The FHWA's MCMIS database contains information based upon a motor

carrier's determination of what it transported at the initial filing of

the form MCS-150. This information may have been filed before the ICCTA

and may have significantly changed since the filing.

The AMSA claims, as its members, most of the motor common carriers

who transport household goods in interstate commerce. On March 4, 1997,

the AMSA informed the FHWA that it had 1,754 members, who hold FHWA

authority to operate in interstate commerce transporting household

goods. The FHWA will assume the AMSA membership roll is closer to the

true number. The FHWA will add 246 motor carriers as a cushion for

those motor carriers who may not be AMSA members. Based upon the AMSA

membership data, for purposes of these analyses, we will use 2,000

carriers as the estimated size of the regulated industry subject to

this proposed rule.

This NPRM would amend and clarify the requirements for motor common

carriers of household goods to provide service to each prospective

individual shipper. These requirements include the following thirteen

items:

(1) Minimum advertising information soliciting prospective

individual shippers.

(2) Distribution of a document, specified in appendix A to part

375, noting the individual shipper's rights and responsibilities under

Federal Highway Administration regulations.

(3) A binding or non-binding estimate of transportation,

accessorial, and incidental charges.

(4) An order for service.

(5) The selling of insurance policies.

(6) A bill of lading.

(7) Weight tickets.

(8) Notifications of reasonable dispatch service delays.

(9) Complaint and inquiry handling.

(10) Use of charge card plans.

(11) Agreements with agents

(12) Notification of storage-in-transit liability assignments.

(13) An arbitration results report.

The former ICC required motor common carriers to follow these

requirements with the exception of item number 13. Congress transferred

the authority to protect individual shippers to the FHWA in the ICCTA.

The FHWA believes these are minimum requirements necessary to protect

individual shippers. The AMSA has advised the FHWA, in correspondence

placed in the docket, its members want these requirements to be

continued with minor modifications, as discussed above, to protect

individual shippers.

The FHWA calculates each entity will have to spend an average of

$7,967 and 2,105 annual burden hours to comply with all of the

paperwork requirements of this action. The FHWA based this estimate

upon the estimated costs identified below to create records, duplicate

records, store the original and duplicated copies of records, and

practice inventory control for the records.

The information required for preparing these documents is the type

of information already developed by such entities in the normal course

of conducting a household goods transportation business. The time

necessary to compile the incremental data for the documents required in

these regulations should be minimal and would vary proportionately with

the number of shipments transported by the carrier.

Although transportation consumers will benefit from the

availability of this information, the cost to small carriers should be

relatively minimal. Accordingly, the FHWA certifies this action would

not have a significant impact on a substantial number of small entities

within the meaning of the Regulatory Flexibility Act.

Executive Order 12612 (Federalism Assessment)

This NPRM has been analyzed in accordance with the principles and

criteria contained in Executive Order 12612. We have determined this

action does not have sufficient federalism implications to warrant the

preparation of a federalism assessment. The amendments made by this

proposed rule would not have a substantial direct effect on States nor

on the relationship or distribution of power between the national

government and the States because these changes do little to limit the

policy making discretion of the States.

The rule is not intended to preempt any State law or State

regulation. Moreover, the changes made by this rule would impose no

additional cost or burden upon any State. The rule would not have a

significant effect upon the ability of the States to discharge

traditional State governmental functions. The FHWA, therefore, is not

required to prepare a separate Federalism Assessment for this rule.

Unfunded Mandates Reform Act of 1995

This NPRM has been analyzed in accordance with the principles and

criteria contained in the Unfunded Mandates Reform Act of 1995 (UMRA)

(Pub. L. 104-4, 109 Stat. 48). The FHWA has determined this action does

not have sufficient unfunded mandate implications to warrant the

preparation of an unfunded mandate assessment.

The amendments made by this proposed rule would not have a

substantial direct effect on States nor on the relationship or

distribution of power between the national government and the States

because these changes do little to limit the policy making discretion

of the States.

The rule is not intended to preempt any State law or State

regulation. Moreover, the changes made by this rule would impose no

additional cost or burden upon any State. The rule will not have a

significant effect upon the ability of the States to discharge

traditional State governmental functions.

For purposes of section 203 of the UMRA, the replacement of the

annual performance report with an annual arbitration report would not

impose a burden greater than $100 million. Also, the addition of an

explicit requirement to provide an estimate, either binding or non-

binding, would not impose a $100 million burden, either.

Under the Regulatory Flexibility Act discussion above, the FHWA

estimates this proposal would have an annual burden of just under $16

million. The FHWA, therefore, is not required to prepare a separate

Unfunded Mandate Assessment for this rule.

[[Page 27132]]

Paperwork Reduction Act

Under the OMB regulations, 5 CFR 1320, Controlling Paperwork

Burdens on the Public, the OMB requires the FHWA to estimate the burden

its regulations impose to generate, maintain, retain, disclose, or

provide information to or for the FHWA, including the nine following

items:

1. Reviewing instructions.

2. Developing, acquiring, installing, and utilizing technology and

systems for the purpose of collecting, validating, and verifying

information.

3. Developing, acquiring, installing, and utilizing technology and

systems for the purpose of processing and maintaining information.

4. Developing, acquiring, installing, and utilizing technology and

systems for the purpose of disclosing and providing information.

5. Adjusting the existing ways to comply with any previously

applicable instructions and requirements.

6. Training personnel to be able to respond to a collection of

information.

7. Searching data sources.

8. Completing and reviewing the collection of information.

9. Transmitting, or otherwise disclosing the information.

The OMB regulations permit the time, effort, and financial

resources necessary to comply with a collection of information incurred

by persons in the normal course of their activities (e.g., in compiling

and maintaining business records) to be excluded from the burden

estimate if the FHWA demonstrates to the OMB that the reporting,

recordkeeping, or disclosure activities needed to comply are usual and

customary. A collection of information conducted or sponsored by the

FHWA and also conducted or sponsored by a unit of State, local, or

tribal government is presumed to impose a Federal burden, except to the

extent the FHWA shows such State, local, or tribal requirement would be

imposed even in the absence of a Federal requirement.

The collection of information requirements in this NPRM are to

generate, maintain, retain, disclose, and provide information to or for

the FHWA under 49 CFR part 375 to individual shippers as a consumer

protection service. The collection of information would be used by

prospective shippers to make informed decisions about contracts and

services to be ordered, executed, and settled with interstate household

goods carriers. The only information collection items the FHWA is

changing from the former ICC's rules are the elimination of the annual

performance report (previously submitted to OMB) and the addition of an

annual arbitration report. All other items were required under the

former ICC regulations, although no assigned OMB control number was

transferred from the ICC to the FHWA covering these collections of

information.

The FHWA has calculated the 5 CFR 1320 paperwork financial

resources burden for the collection of information contained in this

NPRM. The FHWA used national averages of cost indicators developed by

the Association of Records Managers and Administrators, Inc. (ARMA

International). The ARMA International publication ``Cost Indicators

for Selected Records Management Activities (A Guide to Unit Costing for

the Records Manager--Volume 1)'' (1993) and its companion ``Cost

Finding for Records Management Activities (A Guide to Unit Costing for

the Records Manager--Volume II)'' (1996) by Jose-Marie Griffiths,

Ph.D., and Donald W. King were used by the FHWA in calculating activity

and organizational unit costs. The ARMA International guides determine

organizational unit costs to be costs a parent organization may attach

to records management activities. They include activity unit costs and

records management general and administrative costs. Activity unit

costs include salaries, benefits, supervision, training, staff and

storage space, equipment, and supplies. General and administrative

costs include staff compensation and space, non-productive time,

furniture, supplies, and other direct and indirect costs associated

with management and administration. The FHWA believes using

organizational unit costs will more accurately estimate the actual

costs for the entire CMV industry rather than activity unit costs and

records management unit costs.

Estimated Paperwork Burden

------------------------------------------------------------------------

Financial Hourly

Type of burden cost burden

------------------------------------------------------------------------

Advertising................................... $4,814 351

``Your Rights'' Booklet....................... 894,710 4,167

Estimates..................................... 4,251,240 3,060,000

Order for Service............................. 1,417,080 300,000

Insurance Policy Sales........................ 236,180 100,000

Bills of Lading............................... 2,877,240 300,000

Weight Tickets................................ 2,702,808 90,000

Notice (Reasonable Dispatch).................. 507,816 10,000

Complaint Handling............................ 1,502,696 310,000

Charge Card Plans............................. 1,502 584

Notice (SIT).................................. 228,348 30,000

Arbitration Report............................ 1,310,722 4,000

-------------------------

Total..................................... 15,935,156 4,209,102

------------------------------------------------------------------------

As stated above, the FHWA will use the figure of 2,000 motor

carriers engaged in transportation of household goods in interstate or

foreign commerce.

The FHWA has broken down each discussion of information collection

requirements into the major areas of 49 CFR Part 375's requirements.

Minimum Advertising Information Soliciting Prospective Individual

Shippers

Section 375.207 requires each advertisement of a motor carrier, or

its agent, to include the name or trade name of the originating service

motor carrier and the applicable FHWA-assigned U.S. DOT number. The

FHWA believes identifying the name or trade name of a business entity

in an advertisement is a usual and customary business practice. If the

OMB agrees with the FHWA's assertion, this requirement would not be

considered a burden defined by 5 CFR 1320, but would require approval

by the OMB.

The requirement to specify the applicable FHWA-assigned U.S. DOT

number in an advertisement, except for advertisements on radio

broadcasts, would impose a slight burden. The FHWA estimates the 2,000

carriers subject to this requirement would have one advertisement in

their local telephone yellow pages. In addition, each carrier would

have one advertisement per year created for its local paper. The FHWA

estimates the 17 large van lines would have 12 different advertisements

per year created. The FHWA will estimate the cost of placing the U.S.

DOT number in the created advertisement, but believes the

advertisement's other time and financial costs are usual and customary

business practices.

The ARMA International guide indicates the creation of one record

costs an organization $1.145. The FHWA determines 2,000 local telephone

advertisements, 2,000 local newspaper advertisements, and 204 large van

line advertisements must be created specifying the FHWA-assigned

number. Multiplying 4,204 by $1.145 results in $4,814 (the FHWA rounds

money up to the next whole dollar).

The FHWA has calculated the 5 CFR 1320 paperwork time burden for

the

[[Page 27133]]

advertisement collection of information. Based upon 4,204

advertisements, the FHWA estimates each motor carrier would need 5

minutes to create the assigned number upon the advertisement. This

result multiplied by 4,202 advertisements equals 351 hours for the

household goods carrier industry.

Your Rights and Responsibilities When You Move

In February 1997, the FHWA asked the AMSA to estimate how many

booklets would be distributed to individual shippers. The AMSA believes

580,000 orders for service are executed each year and recommends the

FHWA round this number up by 20,000 to 600,000 orders for service. This

would capture the additional booklets of ``Your Rights And

Responsibilities When You Move'' distributed to prospective individual

shippers who decide not to use the services of a motor common carrier,

but who were supplied the booklet at the appropriate time based upon

the regulation.

In the past, the ICC required motor common carriers to obtain the

booklet ``Your Rights and Responsibilities When You Move'' from the

ICC. A motor common carrier could add supplementary text about carrier-

specific items relevant to its operations and its own carrier logo. The

motor carrier would then distribute the booklet.

Although the FHWA does not have the resources to publish massive

quantities of this important consumer publication, we strongly believe

this publication should continue to be distributed. The AMSA agrees

with us. The AMSA has advised us its members would provide the modified

publication to consumers even without a regulatory requirement.

However, we propose to continue requiring distribution of the

publication to ensure consumers are provided with important knowledge

to deal effectively with household goods carriers, particularly the

few, unscrupulous carriers who treat them unfairly and are unlikely to

provide this information voluntarily.

The FHWA would allow motor common carriers to reproduce or

photocopy this document in one of the following three ways.

1. Distribute a subsequent Federal Register final rule (and

successor final rules).

2. Distribute the appendix to 49 CFR Part 375 when it is published

in October of each year (by the U.S. Government Printing Office).

3. Publish independently their own publication containing the text

of appendix A to Part 375.

This would provide flexibility to small entities who are not agents

for other larger motor common carriers. The FHWA expects large van

lines will want to produce their own booklets containing the appendix

to part 375.

Based upon an organizational unit cost analysis, the FHWA estimates

the household goods carrier industry will incur an annual paperwork

burden of $894,710 to comply with the publication and distribution of

the booklet. Each carrier may create its own carrier identifiable

document for distribution. The organizational unit cost for creating a

record using the ARMA International guide is $1.145 per record.

Multiplying 2,000 carriers by $1.145 results in $2,290 for all carriers

to produce an original record. The organizational unit cost for

duplicating the carrier's document is $1.076 per record. This would

cost $645,600 for 600,000 requests for estimates. The organizational

unit cost for storage of the documents is $0.0228 per record. The FHWA

estimates 602,000 must be stored. This is the sum for the storage of

the original document plus all the duplicated documents. The storage

cost is estimated to be $13,726. The FHWA also estimates the document

must be in inventory and must be controlled. The organizational unit

cost for the practice of inventory control of documents is $0.387 per

record. The FHWA estimates this to be $232,974. The total cost is

$894,710 based upon the organizational unit cost method.

Distribution of ``Your Rights and Responsibilities When You Move''

Booklet

The paperwork time burden for the 600,000 requests for orders for

service requiring the distribution of this important consumer

publication by 2,000 motor carriers results in an average of 300 copies

distributed annually for each carrier. The FHWA estimates each carrier

would need 1 hour to create each original document and approximately

one additional hour to photocopy 300 copies of this document for

distribution. The FHWA estimates carriers would need an additional 5

minutes to inventory their stored documents. The FHWA believes all

household goods carriers usually and customarily distribute carrier-

produced sales and information brochures and this document would be

distributed with those documents when the prospective shipper is

contacted. The FHWA, therefore, finds good cause to forego estimating a

burden for distribution of the information in the brochure in this

NPRM. The FHWA's total time estimate per carrier for this action is 2

hours 5 minutes. This result multiplied by 2,000 carriers equals 4,167

hours for the household goods carrier industry.

Binding or Non-binding Estimate of Transportation, Accessorial, and

Incidental Charges

Motor carriers are not required under current FHWA regulations to

furnish individual shippers with any type of estimate, binding or non-

binding. If an estimate is calculated, however, the regulations do

specify certain information is to be recorded, maintained, retained,

and provided to the individual shipper. The proposed retention period

of one year would remain the same as the current period. See 49 CFR

379.13, Appendix A, item J.1.(a) (62 FR 32040, June 12, 1997).

The FHWA believes household goods carriers provide almost every

individual shipper with an estimate of charges prior to loading. The

FHWA is proposing to require motor carriers to provide an estimate to

every individual shipper. The ICC's unpublished 1995 HHG Performance

Report Study found motor carriers wrote binding estimates for about

55.8 percent of the 384,003 collect-on-delivery shipments transported.

The FHWA will use 60 percent for the percentage of estimates motor

carriers will write as binding estimates (an exact estimate of the

charges to be paid) and 40 percent written as non-binding estimates (an

approximate cost of the transportation charges). The FHWA believes each

shipper obtains an average of three estimates before deciding upon a

motor carrier to transport its household goods.

For binding estimates, the motor carrier calculates what the total

bill would be based upon a detailed analysis of the services to be

provided. If the individual shipper has additional services or items to

be performed at the time of loading the shipment, the motor carrier may

either reaffirm the binding estimate, reject the binding estimate,

recalculate a new binding estimate, or calculate a non-binding

estimate. If the motor carrier does nothing, this NPRM would require

the carrier to honor the binding estimate.

The FHWA estimates a motor carrier's binding estimate takes an

average of 2 hours to complete. This involves the following ten items:

1. Traveling to the shipment location.

2. Estimating the items to be transported and their weight.

3. Estimating accessorial/incidental charges.

[[Page 27134]]

4. Reviewing and obtaining information from tariffs, guides,

schedules, etc.

5. Calculating the estimate.

6. Recording the estimate.

7. Copying the estimate.

8. Attaching the copy to the order for service/bill of lading.

9. Providing the estimate to the prospective individual shipper.

10. Return travel to the motor carrier's terminal.

Calculation of 2 hours multiplied by 1,080,000 binding estimates

(600,000 times 60 percent times an average of 3 estimates per order for

service) results in 2,160,000 hours.

The FHWA assumes 50 percent of non-binding estimates are completed

exclusively by telephone and 50 percent are completed through a

personal visit to the individual shipper's residence. The FHWA

estimates a motor carrier's non-binding estimate takes an average of 30

minutes to complete by telephone. This involves the following eight

items:

1. Asking the individual on the telephone certain questions (such

as number of rooms, any extra heavy items, automobiles, etc.).

2. Estimating the weight to be transported.

3. Estimating accessorial/incidental charges.

4. Reviewing and obtaining information from tariffs, guides,

schedules, etc.

5. Calculating an estimate.

6. Recording the estimate.

7. Copying the estimate and attaching the copy to the order for

service/bill of lading.

8. Providing the estimate to the prospective individual shipper

over the telephone.

Calculation of 30 minutes multiplied by 360,000 non-binding

estimates (600,000 times 40 percent (non-binding estimate) times 50

percent (estimate by telephone) times 3 estimates per order for service

(average)) results in 180,000 hours.

Providing a non-binding estimate by a personal visit involves

essentially the same elements as a binding estimate and would consume

the same amount of time.

Calculation of 2 hours multiplied by 360,000 non-binding estimates

(600,000 times 40 percent (non-binding estimate) times 50 percent

(estimate by personal visit) times 3 estimates per order for service

(average)) results in 720,000 hours.

Thus, the FHWA calculates the total burden hours as 2,160,000 for

binding estimates, 180,000 for non-binding telephone estimates, and

720,000 for non-binding personal visit estimates for a grand total of

3,060,000 burden hours for estimates.

The FHWA estimates the financial burden in providing estimates

would be creating a record of the estimate, copying the estimate,

attaching it to the bill of lading, and filing and storing the estimate

with the bill of lading. As discussed above, the FHWA estimates 600,000

orders for service are executed each year and the FHWA assumes each

shipper obtains an average of 3 estimates prior to deciding upon a

motor carrier. This means 1,800,000 estimates would be made each year,

and 1,800,000 copies made, filed and stored. The FHWA assumes the

records would be active rather than inactive.

Thus, the FHWA calculates the organizational unit cost analysis to

provide estimates of charges with the following four acts: 1,800,000

times $1.145 for creating one record equals $2,061,000. 1,800,000 times

$1.076 for duplicating one record equals $1,936,800. 1,800,000 times

$0.118 for filing one record equals $212,400. 1,800,000 times $0.0228

for storing one record equals $41,040. The total of the four results is

$4,251,240.

Order For Service

An order for service must contain the following eleven information

items:

1. The carrier's name and address and the FHWA U.S. DOT number

assigned to the carrier who is responsible for performing the service.

2. The individual shipper's name, address and, if available,

telephone number.

3. The name, address and telephone number of the delivering

carrier's office or agent located at or nearest to the destination of

the shipment.

4. A telephone number where the individual shipper/consignee may

contact the carrier or his designated agent.

5. Dates and times. One of the following three dates and times.

(a) The agreed pickup date and agreed delivery date of the move.

(b) The agreed period or periods of time of the entire move.

(c) If the shipment is to be transported on a guaranteed service

basis, the guaranteed dates or periods of time for pickup,

transportation, and delivery. Any penalty or per diem requirements of

the agreement must be entered under this item.

6. A complete description of any special or accessorial services

ordered and minimum weight or volume charges applicable to the

shipment.

7. Any identification or registration number assigned to the

shipment.

8. For non-binding estimated charges, the amount of the charges,

the method of payment of total charges, and, the maximum amount

required to be paid at time of delivery to obtain possession of the

shipment.

9. For binding estimated charges, the amount of charges required to

be paid based upon a binding estimate and the terms of payment under

this estimate.

10. Whether the individual shipper requests notification of the

charges prior to delivery and the telephone number or address where

such communications will be received.

11. Signature of the individual shipper, who is ordering the

service, and signature of the carrier or his agent.

A copy of the order for service must be dated and furnished to the

individual shipper at the time it is executed. The proposed retention

period of one year would remain the same as the current period. See 49

CFR 379.13, Appendix A, item J.1.(b).

The FHWA estimates an order for service takes 30 minutes to

complete. Multiplying this by 600,000 orders for service results in

300,000 burden hours.

The FHWA estimates the financial burden in providing orders for

service would be in creating the order of service record, copying the

order, attaching it to the bill of lading, and filing and storing the

order with the bill of lading. As discussed above, the FHWA estimates

600,000 estimates for orders for service are executed each year. This

means 600,000 orders would be made each year, and 600,000 copies made,

filed and stored. The FHWA assumes the records would be active rather

than inactive.

Thus, the FHWA calculates the organizational unit cost analysis to

provide orders for service using the following four calculations.

600,000 times $1.145 for creating one record equals $687,000. 600,000

times $1.076 for duplicating one record equals $645,600. 600,000 times

$0.118 for filing one record equals $70,800. 600,000 times $0.0228 for

storing one record equals $13,680. The total of the four results is

$1,417,080.

Selling Insurance Policies

The regulations do not require motor carriers to sell insurance to

individual shippers. If a motor carrier does sell insurance, however,

the insurance policy must be in plain English and clearly specify the

nature and extent of coverage. The proposed retention period (until

expiration of coverage plus one year) would remain the same as the

current period. See 49 CFR 379.13, Appendix A, item F.1.(c).

[[Page 27135]]

The FHWA estimates motor carriers sell excess liability insurance

policies on 100,000 shipments of the 600,000 shipments each year. The

FHWA also estimates each policy takes 1 hour to process and copy. This

would result in 100,000 hours of burden for selling insurance policies

to individual shippers.

The FHWA estimates the financial burden in selling insurance

policies would be creating the insurance policy record, copying the

policy, providing one copy to the individual shipper, and filing and

storing the policy. As discussed above, the FHWA estimates 100,000

insurance policies would be executed each year. This means 100,000

policies would be made each year, and 100,000 copies would be made,

filed, and stored. The FHWA assumes the records would be active rather

than inactive.

Thus, the FHWA calculates the organizational unit cost analysis to

provide insurance policies using the following four calculations.

100,000 times $1.145 for creating one record equals $114,500. 100,000

times $1.076 for duplicating one record equals $107,600. 100,000 times

$0.118 for filing one record equals $11,800. 100,000 times $0.0228 for

storing one record equals $2,280. The total of the four results is

$236,180.

Bills of Lading

A bill of lading must include the following twelve information

items:

1. The carrier's name and address, or the name and address of the

motor carrier issuing the bill of lading.

2. The names and addresses of any other motor carriers, when known,

who will participate, through interline, in the transportation of the

shipment.

3. The name, address, and telephone number of the office of the

motor carrier to contact in relation to the transportation of

shipments.

4. When the transportation is to be performed on a collect-on-

delivery basis, the name, the address and, if furnished, the telephone

number of a person to whom notification is provided for in proposed

Sec. 375.605 must be given.

5. For non-guaranteed service, the agreed date or period of time

for pickup of the shipment and the agreed date or period of time for

the delivery of the shipment. The agreed dates or periods of time for

pickup and delivery entered upon the bill of lading must conform to the

agreed dates or periods of time for pickup and delivery entered upon

the order for service or a proper amendment to the order for service.

6. For guaranteed service subject to tariff provisions, the dates

for pickup and delivery and any penalty or per diem entitlements due

the individual shipper under the agreement.

7. The actual date of pickup.

8. The company or carrier identification number of the vehicle(s)

on which the motor carrier loads the shipment.

9. The terms and conditions for payment of the total charges

including notice of any minimum charges.

10. When the transportation is to be performed on a collect-on-

delivery basis and if a pre-move estimate of the charges is provided to

the individual shipper, the maximum amount required to be paid at the

time of delivery to obtain delivery of the shipment.

11. The required released rates valuation statement (see RELEASED

RATES OF MOTOR COMMON CARRIERS OF HHG, 9 I.C.C. 2d 523 (1993)) (as

amended), and the charges, if any, for optional valuation coverage.

12. Evidence of any insurance coverage sold to or procured for the

individual shipper from an independent insurer, including the amount of

the premium for such insurance.

A copy of the bill of lading must accompany a shipment at all

times. When the shipment is loaded upon a vehicle for transportation,

the bill of lading must be in the possession of the driver responsible

for the shipment. The proposed retention period would remain the same

as the current period. See 49 CFR 379.13, Appendix A, item I.1.

The FHWA estimates a bill of lading takes 30 minutes to complete.

Multiplying this by the estimated 600,000 bills of lading executed each

year results in 300,000 burden hours.

The FHWA estimates the financial burden in providing bills of

lading would be creating the bill of lading record, copying through the

use of carbon or carbonless paper, attaching a copy to the estimate and

order for service, providing a copy to accompany the load, and filing

and storing the bill of lading with the estimate of charges and order

for service. As discussed above, the FHWA estimates 600,000 orders for

service are executed each year. This means 600,000 bills of lading

would be made each year. The FHWA estimates at least three copies for

each bill of lading would be made (1,800,000 copies), and 1,800,000

copies filed and stored. The FHWA assumes the records would be active

rather than inactive.

Thus, the FHWA calculates the organizational unit cost analysis to

write bills of lading using the following four calculations: 600,000

times $1.145 for creating one record equals $687,000. 1,800,000 times

$1.076 for duplicating one record equals $1,936,800. 1,800,000 times

$0.118 for filing one record equals $212,400. 1,800,000 times $0.0228

for storing one record equals $41,040. The total of the four results is

$2,877,240.

Weight Tickets

Every weight ticket must be signed by the person performing the

weighing and must contain the following six information items:

1. The complete name and location of the scale.

2. The date of each weighing.

3. Identification of the weight entries as being the tare, gross,

or net weights.

4. The company or carrier identification of the vehicle.

5. The last name of the individual shipper as it appears on the

Bill of Lading.

6. The carrier's shipment registration or Bill of Lading number.

When both weighings are performed on the same scale, one weight

ticket may be used to record both weighings. All freight bills

presented to collect any shipment charges dependent on the weight

transported must be accompanied by true copies of all weight tickets

obtained in the determination of the shipment weight. The proposed

retention period would remain the same as the current period. See 49

CFR 379.13, Appendix A, item J.5 for the current retention period.

The FHWA estimates weighing freight takes 5 minutes to complete.

The FHWA estimates 5 percent of shipments move under a binding estimate

and an additional 5 percent move under an estimate based upon volume.

These two types of estimates do not require weighing-- therefore, the

FHWA will exclude 60,000 shipments from our calculations. The FHWA

calculates 540,000 shipments times two weighings per shipment equals

1,080,000 weighings. This multiplied by 5 minutes per weighing results

in 90,000 burden hours.

The FHWA estimates the financial burden in providing a weighing

would be in creating the weight record, copying would generally be done

through the use of carbon or carbonless paper, attaching a copy to the

bill of lading and order for service, and filing and storing the weight

ticket with the bill of lading and order for service.

The FHWA estimates one copy for each weight ticket would be made

(1,080,000 copies), and 2,160,000 copies filed and stored. The FHWA

assumes the records would be active rather than inactive.

Thus, the FHWA calculates the organizational unit cost analysis to

record weight tickets using the

[[Page 27136]]

following four calculations: 1,080,000 times $1.145 for creating one

record equals $1,236,600. 1,080,000 times $1.076 for duplicating one

record equals $1,162,080. 2,160,000 times $0.118 for filing one record

equals $254,880. 2,160,000 times $0.0228 for storing one record equals

$49,248. The total is $2,702,808.

Notifications of Reasonable Dispatch Service Delays

At the time of notification of delay, a carrier must advise the

individual shipper of the alternative dates or periods of time the

carrier may be able to pickup and/or deliver the shipment. The needs of

the individual shipper must always be considered in this advisement.

Additional requirements include the following six information items:

1. If the notification of delay occurs prior to the pickup of the

shipment, the carrier must amend the order for service.

2. If the notification of delay occurs subsequent to the pickup of

the shipment, the carrier must notify the individual shipper of the

delay.

3. The carrier must prepare a written record of the date, time and

manner of notification.

4. The carrier must prepare a written record of the amended date or

period of time for delivery.

5. These records must be retained by the carrier as part of its

file on the shipment. The retention period would be one year from the

date of notification.

6. A true copy of the written delay notification noting the date,

time and manner of notification, along with a record of the amended

date or period of time for delivery must be furnished to the individual

shipper by first class mail or in person.

The proposed retention period of one year would remain the same as

the current period. See 49 CFR 379.13, Appendix A. item I.4.(b).

The FHWA estimates 20 percent of the 600,000 shipments transported

each year experience some sort of delay requiring notification. This

would result in 120,000 notifications. The FHWA believes 99.9 percent

of these notifications occur by telephone and take an average of 5

minutes to complete. The FHWA believes telegram and in person

notification is used rarely. The FHWA also believes 99.9 percent of the

written records provided to the individual shipper are delivered by

first class mail and not in person.

Multiplying 120,000 notifications by an average of 5 minutes

results in 10,000 burden hours.

The FHWA estimates the financial burden in providing a notification

of delay would be in disclosing information in a 5 minute telephone

call, creating a record of the notification, copying the record through

the use of carbon or carbonless paper, mailing a copy to the individual

shipper, and filing and storing the written notice with the bill of

lading and order for service documents.

The FHWA estimates one copy for each notice would be made (120,000

copies), and 120,000 copies must be filed and stored. The FHWA assumes

the records would be active rather than inactive.

Thus, the FHWA calculates the organizational unit cost analysis to

notify individual shippers about reasonable dispatch delays using the

following six calculations:

120,000 times $0.31 per minute (A.T.&T. long distance telephone rate

for a call from New York, NY, to Los Angeles, CA) times 5 minutes

equals $186,000.

120,000 times $1.145 for creating one record equals $137,400.

120,000 times $1.076 for duplicating one record equals $129,120.

120,000 times $0.32 for mailing by U.S. Postal Service first class

service to the individual shipper equals $38,400.

120,000 times $0.118 for filing one record equals $14,160.

120,000 times $0.0228 for storing one record equals $2,736. The total

is $507,816.

Complaint and Inquiry Handling

The regulations require carriers establish and maintain a procedure

for responding to inquiries and complaints from individual shippers.

The procedure must be specified in a concise, easy to read summary of

the program and include a communications system allowing individual

shippers to communicate with the carrier's principal place of business

by telephone. The carrier must make a written record of all inquiries

and complaints received from an individual shipper by any means of

communication. The proposed retention period of one year after

settlement would remain the same as the current period. See 49 CFR

379.13, Appendix A, item F.2.(a).

The FHWA estimates all 600,000 shipments transported each year have

some sort of inquiry made about them by an individual shipper. The FHWA

believes at least two are made by each shipper. This would result in

1,200,000 records of complaints and inquiries. The FHWA estimates each

carrier would use an average of 30 minutes to establish, document, and

distribute its complaint and inquiry handling system in a concise, easy

to read summary.

The FHWA multiplies 1,200,000 records by an average of 5 minutes

and 600,000 records of summaries distributed by an average of 30

minutes. This results in 310,000 hours annual burden.

The FHWA estimates the financial burden in conducting complaint and

inquiry procedures would include the following twelve information

items:

1. Establishing the complaint and inquiry system.

2. Creating a concise, easy to read summary record of the system.

3. Copying the summary record 600,000 times.

4. Filing the summary record until needed.

5. Storing the summary record until needed.

6. Distributing the summary record with other sales brochures as

needed (including ``Your Rights and Responsibilities When You Move''

and the arbitration procedure).

7. Disclosing information about complaints and inquiries in a 5

minute telephone call.

8. Creating a record of the notification.

9. Copying the record through the use of carbon or carbonless

paper.

10. Mailing a copy to the individual shipper (by regular mail).

11. Filing the written notice.

12. Storing the written notice with the bill of lading and order

for service documents.

The FHWA estimates one copy for each complaint or inquiry notice

would be made (120,000 copies), and 120,000 copies filed and stored.

The FHWA assumes the records would be active rather than inactive.

Thus, the FHWA calculates the organizational unit cost analysis to

notify individual shippers about complaint and inquiry handling using

the following twelve calculations:

2,000 concise, easy to read summary records of the system times $1.145

for creating one record equals $2,000.

600,000 times $1.076 for duplicating the summary record equals

$645,600.

600,000 times $0.32 for mailing by regular service U.S. Mail to agents

and salespeople for distribution equals $192,000.

600,000 times $0.118 for filing the summary record until needed equals

$70,800.

600,000 times $0.0228 for storing the summary record until needed

equals $13,680.

600,000 times $0.118 for distributing the summary record with other

sales brochures equals $70,800.

[[Page 27137]]

120,000 times $0.31 per minute (A.T.&T. long distance telephone rate

for a call from New York, NY to Los Angeles, CA) times 5 minutes equals

$186,000.

120,000 times $1.145 for creating one record equals $137,400.

120,000 times $1.076 for duplicating one record equals $129,120.

120,000 times $0.32 for mailing by U.S. Postal Service first class

service to the individual shipper equals $38,400.

120,000 times $0.118 for filing one record equals $14,160.

120,000 times $0.0228 for storing one record equals $2,736. The total

is $1,502,696.

Use of Charge Card Plans

The regulations allow for the use of charge card plans, but do not

require information collection requirements as a part of the

regulation.

Agreements With Agents

The regulations require motor carriers have written agreements with

their prime agents. The AMSA's information shows 1,151 motor carriers

do not affiliate with any van line, while 1,167 carriers are affiliated

with one of 17 van lines. These 1,167 carriers are probably prime

agents. The prime agents must have written agreements with their motor

carrier principal.

The FHWA estimates all 1,167 carriers have one written agreement

with another motor carrier. This would result in 1,167 records of

written agreements. The FHWA multiplies 1,167 records by an average of

30 minutes. This results in 584 annual burden hours.

The FHWA estimates the financial burden in executing a written

agreement with prime agents would be in discussing the information with

a potential agent, creating a record of the agreement, and filing and

storing of the written agreement. The FHWA assumes the records would be

active rather than inactive.

Thus, the FHWA calculates the organizational unit cost analysis to

execute written agreements with prime agents using the following three

calculations:

1,167 times $1.145 for creating one record equals $1,337.

1,167 times $0.118 for filing one record equals $138.

1,167 times $0.0228 for storing one record equals $27.

The total is $1,502.

Notification of Storage-in-Transit Liability Assignments

Motor carriers who are holding goods for storage-in-transit and

this period of storage is about to expire must notify the individual

shipper in writing about the following four information items:

1. The date of conversion to permanent storage.

2. The existence of a nine-month period subsequent to the date of

conversion to permanent storage when the individual shipper may file

claims against the carrier for loss or damage occurring to the goods in

transit or during the storage-in-transit period.

3. The fact the carrier's liability will end.

4. The fact the individual shipper's property will be subject to

the rules, regulations, and charges of the warehouseman.

The motor carrier must make this notification at least 10 days

prior to the expiration date of one of the following two conditions.

(1) The specified period of time when the goods are to be held in

storage.

(2) The maximum period of time provided in its tariff for storage-

in-transit.

The motor carrier must notify the individual shipper by certified

mail, return receipt requested. If the motor carrier is holding

household goods in storage-in-transit for a period of time less than 10

days, within one day prior to the expiration date of the specified time

when the goods are to be held in such storage, the carrier must give

notification to the individual shipper.

The carrier must maintain a record of notifications as part of the

records of the shipment.

The FHWA assumes 10 percent of the 600,000 shipments result in

storage-in-transit situations where the time period expires. This would

result in 60,000 records of notifications.

The FHWA multiplies 60,000 records by an estimated average of 30

minutes. This results in 30,000 annual burden hours.

The FHWA estimates the financial burden in notifying an individual

shipper about the storage-in-transit expiration date and conditions

would be creating a record, copying the record, mailing the original by

certified (return receipt requested) service, filing the record, and

storing the active record.

The FHWA estimates the original agreement would be made and mailed

to the individual shipper. The carrier would file and store the copy.

The FHWA assumes the records would be active rather than inactive.

Thus, the FHWA calculates the organizational unit cost analysis to

notify shippers regarding the expiration of storage-in-transit using

the following four calculations:

60,000 times $1.145 for creating one record equals $68,700.

60,000 times $2.52 for postage (certified, return receipt requested

U.S. Postal Service) for one record equals $151,200.

60,000 times $0.118 for filing one record equals $7,080.

60,000 times $0.0228 for storing one record equals $1,368.

The total is $228,348.

Arbitration Results Report

Every motor carrier must have an arbitration program by statute.

Each motor carrier must include in its annual arbitration report the

following nine information items:

1. The total number of shipments transported.

2. The total number of claims in excess of $1000.

3. The total number of claims of $1000 or less.

4. The number of requests for arbitration on claims of $1000 or

less.

5. The results of those arbitrations (claim amounts and

disposition).

6. The number of requests for arbitration on claims in excess of

$1000.

7. The number of requests for arbitration on claims in excess of

$1000 accepted by the carrier.

8. The results of the arbitrations the carrier accepted and

reported under item 7 of this list, providing the claim amount and

disposition.

9. An oath, completed by the carrier and signed by a company

officer.

The FHWA requires all 600,000 orders for service include a concise,

easy to read summary of the arbitration procedures. This would result

in 600,000 records being distributed. In addition, the FHWA would

require all motor carriers file annually a prepared summary of the

previous year's results of their arbitration programs.

The FHWA estimates each carrier would use an average of 2 hours to

establish, document, and distribute its arbitration program in a

concise, easy to read summary.

The FHWA multiplies 2,000 motor carriers by an average of 2 hours

to establish, document, copy, and distribute 600,000 records of

summaries. This results in 4,000 annual burden hours.

The FHWA estimates the financial burden in establishing an

arbitration program and filing the results of the program annually

would include the following nineteen information items:

1. Establishing the arbitration program.

2. Creating a concise, easy to read summary record of the program.

3. Copying the summary record 600,000 times.

[[Page 27138]]

4. Filing the summary record until needed.

5. Storing the summary record until needed.

6. Distributing the summary record with other sales brochures as

needed (including ``Your Rights and Responsibilities When You Move''

and the compliant and inquiry handling system).

7. Creating a record of each arbitration result.

8. Filing the record of the arbitration result.

9. Storing the active record of the arbitration result.

10. Requesting the active records of all arbitration results be

sent to the annual record preparer's location.

11. Reviewing and compiling the records of all arbitration results.

12. Reviewing the regulations for the items to be reported.

13. Creating an annual record of the results of the program.

14. Copying the annual record for the carrier's files.

15. Mailing the annual record to Washington, DC.

16. Filing the copy of the annual record.

17. Storing the copy of the annual record.

18. Re-filing each record of arbitration results.

19. Storing each record of arbitration results.

The FHWA assumes 10 percent of household goods shippers would seek

arbitration each year. This would result in 60,000 arbitrations being

made each year. The FHWA assumes the records would be active rather

than inactive.

Thus, the FHWA calculates the organizational unit cost analysis to

provide arbitration program summaries and preparation of a filed

arbitration report using the following sixteen calculations:

2,000 concise, easy to read summary records of the system times $1.145

for creating one record equals $2,290.

600,000 times $1.076 for duplicating the summary record equals

$645,600.

600,000 times $0.32 for mailing by regular service U.S. Mail to agents

and salespeople for distribution equals $192,000.

600,000 times $0.118 for filing the summary record until needed equals

$70,800.

600,000 times $0.0228 for storing the summary record until needed

equals $13,680.

600,000 times $0.118 for distributing the summary record with other

sales brochures equals $70,800.

60,000 times $1.145 for creating one record of the arbitration result

equals $68,700.

60,000 times $0.118 for filing one record equals $7,080.

60,000 times $0.0228 for storing one record equals $1,368.

60,000 times $1.789 for retrieving active records of all arbitration

results be sent to the annual record preparer's location equals

$107,340.

2,000 times $1.145 for creating an annual record of the results of the

program equals $2,290.

2,000 times $1.076 for copying the annual record for the carrier's

files equals $2,152.

2,000 times $0.32 for posting the annual record to Washington, DC by

U.S. Postal Service equals $640.

2,000 times $0.118 for filing the copy of the annual record equals

$236.

2,000 times $0.0228 for storing the copy of the annual record equals

$46.

60,000 times $2.095 for re-filing each record of arbitration results

equals $125,700.

The total is $1,310,722.

New Information Collection Request Summary

Title: Transportation of Household Goods; Consumer Protection

Regulations.

Background: The Secretary of Transportation may promulgate

``reasonable regulations, including regulations protecting individual

shippers * * *'' 49 U.S.C. 14104. The FHWA's regulations require motor

common carriers of household goods to generate, maintain, retain,

disclose, and provide information to the FHWA or for the motor carriers

to provide to third parties (individual shippers). The FHWA would

continue most of these regulations. The FHWA would propose no

requirement for specific forms. The FHWA regulations would also allow

motor carriers to provide electronic documents. The FHWA estimates

providing the information electronically may not be useful. It would,

however, allow such disclosures provided the consumer has a system to

read the electronic information readily. The FHWA believes the use of

such electronic information is uncommon and is not likely to grow

significantly based upon the current proposed regulations.

The FHWA believes these requirements are necessary for motor common

carriers to properly protect the rights and responsibilities of

individual shippers. The FHWA believes these requirements are not

unnecessarily duplicative of information otherwise reasonably

accessible to an individual shipper. The FHWA believes most individual

shippers would not know about the FHWA or its regulations published in

Title 49, Code of Federal Regulations.

Respondents: Approximately 2,000 motor carriers who provide

transportation of household goods in interstate commerce.

Average Burden per Year: 3,466,602 total hours divided by 2,000

motor carriers equals 1,734 hours annually.

Collection of Information Frequency: Upon set-up of a household

goods motor carrier business, each time an individual shipper of

household goods contemplates ordering service from a motor carrier,

each time an individual shipper of household goods makes inquiries or

complaints, each time a household goods shipment delay occurs, upon

settlement of charges due, and annually for a report.

The FHWA will send a new burden estimate for this collection of

information requirement to the Office of Management and Budget. This

document serves as the FHWA's 60-day notice under 5 CFR 1320.8(d)(1).

The FHWA requests your comments regarding the accuracy of each

estimate. If you believe an estimate is accurate, please tell us the

reason why you believe it is accurate. If you believe the FHWA has

miscalculated the burdens of time or financial burden, please tell us

the reason why you believe it is inaccurate and provide us with better

information to accurately estimate the burdens. The FHWA also requests

your comments on the need for the collection of information

requirements proposed in this NPRM, and on ways the FHWA may reduce the

information collection burden while protecting consumers.

National Environmental Policy Act

The agency has analyzed this action for the purpose of the National

Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and has

determined this action will not have any effect on the quality of the

environment.

Regulation Identification Number

A regulation identification number (RIN) is assigned to each

regulatory action listed in the Unified Agenda of Federal Regulations.

The Regulatory Information Service Center publishes the Unified Agenda

in April and October of each year. The RIN contained in the heading of

this document can be used to cross reference this action with the

Unified Agenda.

List of Subjects in 49 CFR Part 375

Advertising, Arbitration, Consumer protection, Freight, Highways

and roads, Insurance, Motor carriers, Moving of household goods,

Reporting and recordkeeping requirements.

[[Page 27139]]

List of Subjects in 49 CFR Part 377

Credit, Freight forwarders, Highways and roads, Motor carriers.

Issued on: May 5, 1998.

Kenneth R. Wykle,

Administrator, Federal Highway Administration.

For the reasons set out in the preamble, the FHWA proposes to amend

49 CFR Chapter III as set forth below:

1. Part 375 is revised to read as follows:

PART 375--TRANSPORTATION OF HOUSEHOLD GOODS IN INTERSTATE COMMERCE;

CONSUMER PROTECTION REGULATIONS

Subpart A--General Requirements

Sec.

375.101 Who must follow these regulations?

375.103 What are the definitions of terms used in this part?

Subpart B--Before Offering Services to My Customers

Liability Considerations

Sec.

375.201 What is my normal liability for loss and damage when I

accept goods from an individual shipper?

375.203 What actions of an individual shipper may limit or reduce

my normal liability?

General Responsibilities

Sec.

375.205 May I have agents?

375.207 What items must be in my advertisements?

375.209 How must I handle complaints and inquiries?

375.211 Must I have an arbitration program?

375.213 What information must I provide to a prospective individual

shipper?

Collecting Transportation Charges

Sec.

375.215 How must I collect charges?

375.217 May I collect charges upon delivery?

375.219 May I extend credit to shippers?

375.221 May I use a charge card plan for payments?

Subpart C--Service Options Provided

Sec.

375.301 What service options may I provide?

375.303 If I sell excess liability insurance coverage, what must I

do?

Subpart D--Estimating Charges

Sec.

375.401 Must I estimate charges?

375.403 How must I provide a binding estimate?

375.405 How must I provide a non-binding estimate?

375.407 Under what circumstances must I relinquish possession of a

collect-on-delivery shipment transported under a non-binding

estimate?

Subpart E--Pick up of Shipments of Household Goods

Before Loading

Sec.

375.501 Must I write up an order for service?

375.503 Must I write up a bill of lading?

Weighing the Shipment

Sec.

375.505 Must I determine the weight of a shipment?

375.507 What is a certified scale?

375.509 How must I determine the weight of a shipment?

375.511 May I use an alternative method for shipments weighing 454

kilograms or less?

375.513 Must I give the individual shipper an opportunity to

observe the weighing?

375.515 May an individual shipper waive his/her right to observe

each weighing?

375.517 May an individual shipper demand re-weighing?

375.519 Must I obtain weight tickets?

375.521 What must I do if an individual shipper wants to know the

actual weight or charges for a shipment before I tender delivery?

Subpart F--Transportation of Shipments

Sec.

375.601 Must I transport the shipment in a timely manner?

375.603 When must I tender a shipment for delivery?

375.605 How must I notify an individual shipper of any service

delays?

375.607 What must I do if I am able to tender a shipment for final

delivery more than 24 hours before a specified date or period of

time?

375.609 What must I do for shippers who store household goods in

transit?

Subpart G--Delivery of Shipments

Sec.

375.701 May I provide for a release of liability on my delivery

receipt?

375.703 What is the maximum collect-on-delivery amount I may demand

at the time of delivery?

375.705 If a shipment is transported on more than one vehicle, what

charges may I collect at delivery?

375.707 If a shipment is partially lost or destroyed, what charges

may I collect at delivery?

375.709 If a shipment is totally lost or destroyed, what charges

may I collect at delivery?

Subpart H--Collection of Charges

Sec.

375.801 What types of charges apply to subpart H?

375.803 How must I present my freight or expense bill?

375.805 If I am forced to relinquish a collect-on-delivery shipment

before the payment of ALL charges, how do I collect the balance?

375.807 What actions may I take to collect the charges upon my

freight bill?

Subpart I--Filing Annual Arbitration Reports

Sec.

375.901 What is an annual arbitration report?

375.903 Who must file an annual arbitration report?

375.905 Where and when do I file an annual arbitration report?

375.907 How must I prepare and submit an annual arbitration report?

Subpart J--Penalties

Sec.

375.1001 What penalties do we impose for violations of this part?

Appendix A--Your Rights and Responsibilities When You Move

Authority: 5 U.S.C. 553; 49 U.S.C. 13301 and 14104; and 49 CFR

1.48.

Subpart A--General Requirements

Sec. 375.101 Who must follow these regulations?

You, a motor common carrier engaged in the transportation of

household goods, must follow the regulations in this part when offering

your services to individual shippers. You are subject to this part only

when you transport household goods for individual shippers by motor

vehicle in interstate commerce.

Sec. 375.103 What are the definitions of terms used in this part?

(a) Terms used in this part:

Advertisement means any communication to the public in connection

with an offer or sale of any interstate transportation service. This

includes written or electronic database listings of your name, address,

and telephone number in an on-line database. This excludes

advertisements over airwaves, including radio and television, and

listings of your name, address, and telephone number in a telephone

directory or similar publication.

Cashier's check means a check that has all four of the following

characteristics:

(1) Drawn on a bank as defined in 12 CFR 229.2.

(2) Signed by an officer or employee of the bank on behalf of the

bank as drawer.

(3) A direct obligation of the bank.

(4) Provided to a customer of the bank or acquired from the bank

for remittance purposes.

Household goods, as used in connection with transportation, means

[[Page 27140]]

the personal effects or property used, or to be used, in a dwelling.

The personal effects and property must be a part of the equipment or

supplies of such a dwelling or similar property.

Individual shipper or householder means any person who is the

consignor or consignee of a household goods shipment and you identify

him or her as such in the bill of lading contract. The individual

shipper owns the goods being transported.

May means an option. You may do something, but it is not a

requirement.

Must means a legal obligation. You must do something.

Order for service means a document authorizing you to transport an

individual shipper's household goods.

Reasonable dispatch means the performance of transportation on the

dates, or during the period of time, agreed upon by you and the

individual shipper and shown on the Order For Service/Bill of Lading.

For example, if you deliberately withhold any shipment from delivery

after an individual shipper offers to pay the binding estimate or 110

percent of a non-binding estimate, you have not transported the goods

with reasonable dispatch. The term ``reasonable dispatch'' excludes

transportation provided under your tariff provisions requiring

guaranteed service dates. You will have the defenses of force majeure,

i.e., superior or irresistible force, as construed by the courts.

``Force majeure'' in this context, means a defense protecting the

parties in the event that a part of the contract cannot be performed

due to causes which are outside the control of the parties and could

not be avoided by exercise of due care.

Should means a recommendation. We recommend you do something, but

it is not a requirement.

Transportation of household goods means either one of the following

two provisions:

(1) The householder (an individual shipper) arranges and pays for

transportation of household goods. This may include transportation from

a factory or store, when the individual shipper purchases the household

goods with the intent to use the goods in his or her own dwelling.

(2) Another party arranges and pays for the transportation of

household goods.

We, us, and our means the Federal Highway Administration (FHWA).

You and your means a motor common carrier engaged in the

transportation of household goods and its household goods agents.

(b) Where may other terms used in this part be defined? You may

find other terms used in this part defined in 49 U.S.C. 13102. The

definitions in that statute control. If terms are used in this part and

the terms are neither defined here nor in 49 U.S.C. 13102, the terms

will have the ordinary practical meaning of such terms.

Subpart B--Before Offering Services to Customers

Liability Considerations

Sec. 375.201 What is my normal liability for loss and damage when I

accept goods from an individual shipper?

(a) In general, you are legally liable for loss or damage if it

happens during performance of any one of the following three services

identified on your lawful bill of lading:

(1) Transportation of household goods.

(2) Storage-in-transit of household goods, including incidental

pickup or delivery service.

(3) Servicing of an appliance or other article, if you or your

agent performs the servicing.

(b) You are liable for loss of, or damage to, any household goods

to the extent provided in the current Surface Transportation Board's

released rates order (see RELEASED RATES OF MOTOR COMMON CARRIERS OF

HHG, 9 I.C.C. 2d 523 (1993)).

(c) You may have additional liability if you sell excess liability

insurance.

Sec. 375.203 What actions of an individual shipper may limit or reduce

my normal liability?

(a) If an individual shipper includes perishable household goods

without your knowledge, you need not assume liability for these items.

(b) If an individual shipper agrees to ship household goods

released at a value greater than $1.32 per kilogram (60 cents per

pound) per article, your liability for loss and damage may be limited

to $220 per kilogram ($100 per pound) per article if the individual

shipper fails to notify you in writing of articles valued at more than

$220 per kilogram ($100 per pound).

(c) If an individual shipper notifies you in writing that an

article valued at greater than $220 per kilogram ($100 per pound) will

be included in the shipment, the shipper will be entitled to full

recovery up to the declared value of the article or articles, not to

exceed the declared value of the entire shipment.

General Responsibilities

Sec. 375.205 May I have agents?

(a) You may have agents provided you comply with paragraphs (b) and

(c) of this section. A household goods agent is defined as either one

of the following two types of agents:

(1) A prime agent provides a transportation service for you or on

your behalf, including the selling of, or arranging for, a

transportation service. You permit or require the agent to provide

services under the terms of an agreement or arrangement with you. A

prime agent does not provide services on an emergency or temporary

basis. A prime agent does not include a household goods broker or

freight forwarder.

(2) An emergency or temporary agent provides origin or destination

services on your behalf, excluding the selling of, or arranging for, a

transportation service. You permit or require the agent to provide such

services under the terms of an agreement or arrangement with you. The

agent performs such services only on an emergency or temporary basis.

(b) If you have agents, you must have written agreements between

you and your prime agents. You and your retained prime agent must sign

the agreements.

(c) Copies of all your prime agent agreements must be in your files

for a period of at least 24 months following the date of termination of

each agreement.

Sec. 375.207 What items must be in my advertisements?

(a) You and your agents must publish and use only truthful,

straightforward, and honest advertisements.

(b) You must include, and you must require each of your agents to

include, in all advertisements for all services (including any

accessorial services incidental to or part of interstate

transportation), the following two elements:

(1) Your name or trade name, as it appears on our document

assigning you a U.S. DOT number, or the name or trade name of the motor

carrier under whose operating authority the advertised service will

originate.

(2) U.S. DOT number, assigned by us authorizing you to operate as a

for-hire motor carrier.

(c) Your FHWA-assigned U.S. DOT number must be displayed only in

the following form in every advertisement: U.S. DOT No. (assigned

number).

Sec. 375.209 How must I handle complaints and inquiries?

(a) You must establish and maintain a procedure for responding to

complaints and inquiries from your individual shippers.

(b) Your procedure must include all four of the following items:

[[Page 27141]]

(1) A communications system allowing individual shippers to

communicate with your principal place of business by telephone.

(2) A telephone number.

(3) A clear and concise statement about who must pay for complaint

and inquiry telephone calls.

(4) A written or electronic record system for recording all

inquiries and complaints received from an individual shipper by any

means of communication.

(c) You must produce a clear and concise written description of

your procedure for distribution to individual shippers.

Sec. 375.211 Must I have an arbitration program?

(a) You must have an arbitration program for individual shippers.

You must establish and maintain an arbitration program with the

following eleven minimum elements:

(1) You must design your arbitration program to prevent you from

having any special advantage in any case where the claimant resides or

does business at a place distant from your principal or other place of

business.

(2) Before the household goods are tendered for transport, your

arbitration program must provide notice to the individual shipper of

the availability of neutral arbitration, including all three of the

following items:

(i) A summary of the arbitration procedure.

(ii) Any applicable costs.

(iii) A disclosure of the legal effects of election to use

arbitration.

(3) Upon the individual shipper's request, you must provide forms

and information necessary for initiating an action to resolve a dispute

under arbitration.

(4) You must require each person you authorize to arbitrate to be

independent of the parties to the dispute and capable of resolving such

disputes, and you must ensure the arbitrator is authorized and able to

obtain from you or the individual shipper any material or relevant

information to carry out a fair and expeditious decision making

process.

(5) You must not charge the individual shipper more than one-half

of the total cost for instituting the arbitration proceeding against

you. In the arbitrator's decision, the arbitrator may determine which

party must pay the cost or a portion of the cost of the arbitration

proceeding, including the cost of instituting the proceeding.

(6) You must refrain from requiring the individual shipper to agree

to use arbitration before a dispute arises.

(7) Arbitration must be binding for claims of $1000 or less, if the

individual shipper requests arbitration.

(8) Arbitration must be binding for claims of more than $1000, if

the individual shipper requests arbitration and the carrier agrees to

it.

(9) If all parties agree, the arbitrator may provide for an oral

presentation of a dispute by a party or representative of a party.

(10) The arbitrator must render a decision within 60 days of

receipt of written notification of the dispute, and a decision by an

arbitrator may include any remedies appropriate under the

circumstances.

(11) The arbitrator may extend the 60-day period for a reasonable

period of time if you or the individual shipper fail to provide, in a

timely manner, any information the arbitrator reasonably requires to

resolve the dispute.

(b) You must produce and distribute a concise, easy-to-read,

accurate summary of the your arbitration program, including the items

in this section.

Sec. 375.213 What information must I provide to a prospective

individual shipper?

(a) Before you execute an order for service for a shipment of

household goods, you must furnish to your prospective individual

shipper, all four of the following documents:

(1) The contents of Appendix A of this part, ``Your Rights and

Responsibilities When You Move.''

(2) A concise, easy-to-read, accurate estimate of your charges.

(3) A concise, easy-to-read, accurate summary of the your

arbitration program.

(4) A concise, easy to read, accurate summary of your customer

complaint and inquiry handling procedures. Included in this description

must be both of the following two items:

(i) The main telephone number the individual shipper may use to

communicate with you.

(ii) A clear and concise statement concerning who must pay for

telephone calls.

(b) To comply with paragraph (a)(1) of this section, you must

produce and distribute a document with the text and general order of

appendix A to this part as it appears. The following three items also

apply:

(1) If we, the Federal Highway Administration, choose to modify the

text or general order of appendix A, we will provide the public

appropriate notice in the Federal Register and an opportunity for

comment as required by part 389 of this subchapter before making you

change anything.

(2) If you publish the document, you may choose the dimensions of

the publication as long as the type font size is at least 10 point or

greater and the size of the booklet is at least as large as 232 square

centimeters (36 square inches).

(3) If you publish the document, you may choose the color and

design of the front and back covers of the publication. The following

words must appear prominently on the front cover in at least 12 point

or greater bold or full-faced type: ``YOUR RIGHTS AND RESPONSIBILITIES

WHEN YOU MOVE. OMB No. 2125-________, Expires on________ , 200______ .

Furnished By Your Mover, As Required By Federal Law.'' You may

substitute your name or trade name in place of ``Your Mover'' if you

wish (for example, Furnished by XYZ Van Lines, As Required By Federal

Law).

(c) Paragraphs (b)(2) and (b)(3) of this section do not apply to

exact copies of appendix A published in the Federal Register or the

Code of Federal Regulations.

Collecting Transportation Charges

Sec. 375.215 How must I collect charges?

You must issue an honest, truthful freight or expense bill in

accordance with subpart A of part 373 of this subchapter.

Sec. 375.217 May I collect charges upon delivery?

(a) Yes. You may maintain a tariff setting forth nondiscriminatory

rules governing collect-on-delivery service and the collection of

collect-on-delivery funds.

(b) If an individual shipper pays you at least 110 percent of the

approximate costs of a non-binding estimate on a collect-on-delivery

shipment, you must relinquish possession of the shipment at the time of

delivery. You may specify the form of payment acceptable to you.

Sec. 375.219 May I extend credit to shippers?

You may extend credit to shippers in accordance with Sec. 375.807.

Sec. 375.221 May I use a charge card plan for payments?

(a) You may provide in your tariffs for the acceptance of charge

cards for the payment of freight charges.

(b) You may accept charge cards whenever shipments are transported

under agreements and tariffs requiring payment by cash, certified

check, or a cashier's check.

(c) If you allow an individual shipper to pay for a freight or

expense bill by charge card, you are deeming such payment to be

equivalent to payment by

[[Page 27142]]

cash, certified check, or a cashier's check.

(d) The charge card plans you participate in must be identified in

your tariff rules as items permitting the acceptance of the charge

cards.

(e) If an individual shipper causes a charge card issuer to reverse

a charge transaction, you may consider the individual shipper's action

tantamount to forcing you to provide an involuntary extension of your

credit. In such instances, the rules in Sec. 375.807 apply.

Subpart C--Service Options Provided

Sec. 375.301 What service options may I provide?

(a) You may design your household goods service to provide

individual shippers with a wide range of specialized service and

pricing features. Many carriers provide at least the following five

service options:

(1) Space reservation.

(2) Expedited service.

(3) Exclusive use of a vehicle.

(4) Guaranteed service on or between agreed dates.

(5) Excess liability insurance.

(b) If you sell excess liability insurance, you must follow the

requirements in Sec. 375.303.

Sec. 375.303 If I sell excess liability insurance coverage, what must

I do?

(a) You, your employee, or an agent, may sell, offer to sell, or

procure excess liability insurance coverage for loss and damage to

shipments of any individual shippers only under the following two

conditions:

(1) The individual shipper releases the shipment for transportation

at a value not exceeding $1.32 per kilogram (60 cents per pound) per

article.

(2) The individual shipper fails to declare a valuation of $2.75 or

more per kilogram ($1.25 or more per pound) and pays, or agrees to pay,

you for assuming liability for the shipment equal to the declared

value.

(b) You may offer, sell, or procure any kind of excess liability

insurance coverage.

(c) You may offer, sell, or procure any type of policy covering

loss or damage in excess of the specified carrier liability.

(d) You must issue to the individual shipper a policy or other

appropriate evidence of the insurance the individual shipper purchased.

(e) You must provide a copy of the policy or other appropriate

evidence to the individual shipper at the time you sell or procure the

insurance.

(f) You must issue policies written in plain English.

(g) You must clearly specify the nature and extent of coverage

under the policy.

(h) Your failure to issue a policy, or other appropriate evidence

of insurance purchased, to an individual shipper will subject you to

full liability for any claims to recover loss or damage attributed to

you.

(i) You must provide in your tariff for the provision of selling,

offering to sell, or procuring excess liability insurance service. The

tariff must also provide for the base transportation charge, including

your assumption for full liability for the value of the shipment. This

would be in the event you fail to issue a policy or other appropriate

evidence of insurance to the individual shipper at the time of

purchase.

Subpart D--Estimating Charges

Sec. 375.401 Must I estimate charges?

(a) Before you execute an order for service for a shipment of

household goods for an individual shipper, you must estimate the total

charges in writing. The written estimate must be one of the following

two types:

(1) A binding estimate, an agreement made in advance with your

individual shipper. It guarantees the total cost of the move based upon

the quantities and services shown on your estimate.

(2) A non-binding estimate, what you believe the total cost will be

for the move, based upon the estimated weight or volume of the shipment

and the accessorial services requested. A non-binding estimate is not

binding on you. You will base the final charges upon the actual weight

of the individual shipper's shipment and the tariff provisions in

effect.

(b) For non-binding estimates, you should provide your best

estimate of the approximate costs the individual shipper should expect

to pay for the transportation and services of such shipments. If you

provide an inaccurately low estimate, you may be limiting the amount

you will collect at the time of delivery as provided in Sec. 375.407.

(c) You and the individual shipper must sign the estimate of

charges. You must provide a dated copy of the estimate of charges to

the individual shipper at the time you sign the estimate.

(d) Before loading a household goods shipment, and upon mutual

agreement of both you and the individual shipper, you may amend an

estimate of charges.

Sec. 375.403 How must I provide a binding estimate?

(a) You may provide a guaranteed binding estimate of the total

shipment charges to the individual shipper, so long as it is provided

for in your tariff. The individual shipper must pay the amount for the

services included in your estimate. You must comply with the following

eight requirements:

(1) You must provide a binding estimate in writing to the

individual shipper or other person responsible for payment of the

freight charges.

(2) You must retain a copy of each binding estimate as an addendum

to the bill of lading.

(3) You must clearly indicate upon each binding estimate's face the

estimate is binding upon you and the individual shipper. Each binding

estimate must also clearly indicate on its face the charges shown are

the charges being assessed for only those services specifically

identified in the estimate.

(4) You must clearly describe binding estimate shipments and all

services you are providing.

(5) If it appears an individual shipper has tendered additional

household goods or requires additional services not identified in the

binding estimate, you are not required to honor the estimate. However,

before loading the shipment, you must do one of the following three

things:

(i) Reaffirm your binding estimate.

(ii) Negotiate a revised written binding estimate listing the

additional household goods or services.

(iii) Agree with the individual shipper, in writing, that both of

you will consider the original binding estimate as a non-binding

estimate subject to Sec. 375.405.

(6) Once you load a shipment, failure to execute a new binding

estimate or a non-binding estimate signifies you have reaffirmed the

original binding estimate. You may not collect more than the amount of

the original binding estimate, except as provided in paragraph (a)(7)

of this section.

(7) If the individual shipper adds additional services at the

destination and the services fail to appear on your estimate, you may

require full payment at the time of delivery for those services your

individual shipper added at destination.

(8) Failure to relinquish possession of a shipment upon an

individual shipper's offer to pay the binding estimate amount

constitutes a failure to transport a shipment with ``reasonable

dispatch'' and subjects you to cargo delay claims pursuant to 49 CFR

part 370.

(b) If you do not provide a binding estimate to an individual

shipper, you must provide a non-binding estimate to

[[Page 27143]]

the individual shipper in accordance with Sec. 375.405.

(c) You must retain a record of all estimates of charges for at

least one year from the date you made the estimate.

Sec. 375.405 How must I provide a non-binding estimate?

(a) If you do not provide a binding estimate to an individual

shipper in accordance with Sec. 375.403, you must provide a non-binding

estimate to the individual shipper.

(b) If you provide a non-binding estimate to an individual shipper,

you must provide your best estimate of the approximate costs the

individual shipper should expect to pay for the transportation and

services of such shipments. You must comply with the following six

requirements:

(1) You must provide reasonably accurate non-binding estimates

based upon the estimated weight or volume of the shipment and services

required.

(2) You must explain to the individual shipper all final charges

calculated for shipments moved on non-binding estimates will be those

appearing in your tariffs applicable to the transportation. You must

explain to the individual shipper these final charges may exceed the

approximate costs appearing in your estimate.

(3) You must furnish non-binding estimates without charge and in

writing to the individual shipper or other person responsible for

payment of the freight charges.

(4) You must retain a copy of each non-binding estimate as an

addendum to the bill of lading.

(5) You must clearly indicate on the face of a non-binding

estimate, the estimate is not binding upon you and the charges shown

are the approximate charges to be assessed for the services identified

in the estimate.

(6) You must clearly describe on the face of a non-binding estimate

the entire shipment and all services you are providing.

(b) If you furnish a non-binding estimate, you must enter the

estimated charges upon the order for service and upon the bill of

lading.

(c) You must retain a record of all estimates of charges for at

least one year from the date you made the estimate.

Sec. 375.407 Under what circumstances must I relinquish possession of

a collect-on-delivery shipment transported under a non-binding

estimate?

(a) If an individual shipper pays you at least 110 percent of the

approximate costs of a non-binding estimate on a collect-on-delivery

shipment, you must relinquish possession of the shipment at the time of

delivery. You may specify the form of payment acceptable to you.

(b) Failure to relinquish possession of a shipment upon an

individual shipper's offer to pay 110 percent of the estimated charges

constitutes a failure to transport the shipment with ``reasonable

dispatch'' and subjects you to cargo delay claims pursuant to 49 CFR

part 370.

(c) You must defer demand for the payment of the balance of any

remaining charges for a period of 30 days following the date of

delivery. After this 30-day period, you must demand payment of the

balance of any remaining charges. For example, if your non-binding

estimate to an individual shipper estimated total charges at delivery

should be $1,000, but your actual charges at destination are $1,500,

you must deliver the shipment upon payment of $1,100 (110 percent of

the estimated charges) and forego demanding payment. You then must

issue a freight or expense bill demanding payment of the remaining $400

after the 30-day period expires.

(d) You must retain a record of all estimates of charges for at

least one year from the date you made the estimate.

Subpart E--Pick Up of Shipments of Household Goods

Before Loading

Sec. 375.501 Must I write up an order for service?

(a) Before you receive a shipment of household goods you will move

for an individual shipper, you must prepare an order for service. The

order for service must contain the information described in the

following ten items:

(1) Your name and address and the FHWA U.S. DOT number assigned to

the carrier who is responsible for performing the service.

(2) The individual shipper's name, address and, if available, its

telephone number(s).

(3) The name, address and telephone number of the delivering

carrier's office or agent located at or nearest to the destination of

the shipment.

(4) A telephone number where the individual shipper/consignee may

contact you or your designated agent.

(5) Dates and times. One of the following three entries must be on

the order for service:

(i) The agreed pickup date and agreed delivery date of the move.

(ii) The agreed period or periods of time of the entire move.

(iii) If you are transporting the shipment on a guaranteed service

basis, the guaranteed dates or periods of time for pickup,

transportation, and delivery. You must enter any penalty or per diem

requirements upon the agreement under this item.

(6) A complete description of any special or accessorial services

ordered and minimum weight or volume charges applicable to the

shipment, subject to the following two conditions.

(i) If you provide service for individual shippers on rates based

upon the transportation of a minimum weight or volume, you must

indicate on the order for service the minimum weight-or volume-based

rates, and the minimum charges applicable to the shipment.

(ii) If you do not indicate the minimum rates and charges, your

tariff must provide you will compute the final charges relating to such

a shipment based upon the actual weight or volume of the shipment.

(7) Any identification or registration number you assign to the

shipment.

(8) For non-binding estimates, your best estimate of the amount of

the charges, the method of payment of total charges, and the maximum

amount (no more than 110 percent of the non-binding estimate) you will

demand at the time of delivery to relinquish possession of the

shipment.

(9) For binding estimates, the amount of charges you will demand

based upon the binding estimate and the terms of payment under this

estimate.

(10) Whether the individual shipper requests notification of the

charges before delivery. The individual shipper must provide you with

the telephone number(s) or address(es) where you will transmit the

notification.

(b) You and the individual shipper must sign the order for service.

You must provide a dated copy of the order for service to the

individual shipper at the time you sign the order.

(c) Before loading the shipment, and upon mutual agreement of both

you and the individual shipper, you may amend an order for service.

(d) You must retain records of an order for service for at least

one year from the date you made the order.

Sec. 375.503 Must I write up a bill of lading?

(a) You must issue a bill of lading. The bill of lading must

contain the terms and conditions of the contract. You must furnish a

complete copy of the bill of lading to the individual shipper before

beginning to load the shipment.

(b) On a bill of lading, you must include the following twelve

items:

(1) Your name and address, or the name and address of the motor

carrier issuing the bill of lading.

(2) The names and addresses of any other motor carriers, when

known, who

[[Page 27144]]

will participate in interline transportation of the shipment.

(3) The name, address, and telephone number of your office (or the

office of your agent) where the individual shipper can contact you in

relation to the transportation of the shipment.

(4) When you transport under a collect-on-delivery basis, the name,

address and, if furnished, the telephone number of a person to notify

about the charges, as required in Sec. 375.605.

(5) For non-guaranteed service, the agreed date or period of time

for pickup of the shipment and the agreed date or period of time for

the delivery of the shipment. The agreed dates or periods of time for

pickup and delivery entered upon the bill of lading must conform to the

agreed dates or periods of time for pickup and delivery entered upon

the order for service or a proper amendment to the order for service.

(6) For guaranteed service, subject to tariff provisions, the dates

for pickup and delivery and any penalty or per diem entitlements due

the individual shipper under the agreement.

(7) The actual date of pickup.

(8) The company or carrier identification number of the vehicle(s)

upon which you load the individual shipper's shipment.

(9) The terms and conditions for payment of the total charges,

including notice of any minimum charges.

(10) The maximum amount you will demand at the time of delivery to

obtain possession of the shipment, when you transport under a collect-

on-delivery basis.

(11) The Surface Transportation Board's required released rates

valuation statement, and the charges, if any, for optional valuation

coverage (see RELEASED RATES OF MOTOR COMMON CARRIERS OF HHG, 9 I.C.C.

2d 523 (1993)).

(12) Evidence of any insurance coverage sold to or procured for the

individual shipper from an independent insurer, including the amount of

the premium for such insurance.

(c) A copy of the bill of lading must accompany a shipment at all

times while in your (or your agent's) possession. When you load the

shipment upon a vehicle for transportation, the bill of lading must be

in the possession of the driver responsible for the shipment.

(d) You must retain bills of lading for at least one year from the

date you created the bill of lading.

Weighing the Shipment

Sec. 375.505 Must I determine the weight of a shipment?

(a) When you transport household goods on a non-binding estimate

dependent upon the shipment weight, you must determine the weight of

each shipment transported before the assessment of any charges.

(b) You must weigh the shipment upon a certified scale.

Sec. 375.507 What is a certified scale?

A certified scale is any scale designed for weighing motor

vehicles, including trailers or semi-trailers not attached to a

tractor, and certified by an authorized scale inspection and licensing

authority (e.g., a State). A certified scale may also be a platform or

warehouse type scale properly inspected and certified.

Sec. 375.509 How must I determine the weight of a shipment?

(a) You must weigh the shipment by using one of the following two

methods:

(1) First method--origin weigh. You determine the difference

between the tare weight of the vehicle before loading at the origin of

the shipment and the gross weight of the same vehicle after loading the

shipment.

(2) Second method--back weigh. You determine the difference between

the gross weight of the vehicle with the shipment loaded and the tare

weight of the same vehicle after you unload the shipment.

(b) The following three conditions must exist for both the tare and

gross weighings:

(1) The vehicle must have installed or loaded all pads, dollies,

hand trucks, ramps, and other equipment required in the transportation

of the shipment.

(2) The driver and other persons must be off the vehicle at the

time of either weighing.

(3) The fuel tanks on the vehicle must be full at the time of each

weighing, except when you use the first method--origin weigh, in

paragraph (a)(1) of this section, where the tare weighing is the first

weighing performed, you must refrain from adding fuel between the two

weighings.

(c) You may detach the trailer of a tractor-trailer vehicle

combination from the tractor and the trailer weighed separately at each

weighing provided the length of the scale platform is adequate to

accommodate and support the entire trailer at one time.

(d) You must use the net weight of shipments transported in

containers. You must calculate the difference between the tare weight

of the container (including all pads, blocking and bracing used in the

transportation of the shipment) and the gross weight of the container

with the shipment loaded in the container.

Sec. 375.511 May I use an alternative method for shipments weighing

454 kilograms or less?

For shipments weighing 454 kilograms or less (1,000 pounds or

less), you may weigh the shipment upon a platform or warehouse

certified scale before loading for transportation or after unloading.

Sec. 375.513 Must I give the individual shipper an opportunity to

observe the weighing?

You must give the individual shipper or any other person

responsible for the payment of the freight charges the right to observe

all weighings of the shipment. You must advise the individual shipper,

or any other person entitled to observe the weighings, where and when

each weighing will occur. You must give the person who will observe the

weighings a reasonable opportunity to be present to observe the

weighings.

Sec. 375.515 May an individual shipper waive his/her right to observe

each weighing?

An individual shipper has the privilege to waive his/her right to

observe any weighing or reweighing. This does not affect any other

rights of the individual shipper under this part or otherwise.

Sec. 375.517 May an individual shipper demand reweighing?

After you inform the individual shipper of the billing weight and

total charges and before actually beginning to unload a shipment

weighed at origin (first method under Sec. 375.509(a)(1), the

individual shipper may demand a reweigh. You must base your freight

bill charges upon the reweigh weight.

Sec. 375.519 Must I obtain weight tickets?

(a) Yes, you must obtain weight tickets whenever we require you to

weigh the shipment in accordance with this subpart. You must obtain a

separate weight ticket for each weighing. The weigh master must sign

each weight ticket. Each weight ticket must contain the following six

items:

(1) The complete name and location of the scale.

(2) The date of each weighing.

(3) The identification of the weight entries as being the tare,

gross, or net weights.

(4) The company or carrier identification of the vehicle.

(5) The last name of the individual shipper as it appears on the

bill of lading.

[[Page 27145]]

(6) The carrier's shipment registration or bill of lading number.

(b) When both weighings are performed on the same scale, one weight

ticket may be used to record both weighings.

(c) As part of the file on the shipment, you must retain the

original weight ticket or tickets relating to the determination of the

weight of a shipment.

(d) All freight bills you present to an individual shipper must

include true copies of all weight tickets obtained in the determination

of the shipment weight in order to collect any shipment charges

dependent upon the weight transported.

Sec. 375.521 What must I do if an individual shipper wants to know the

actual weight or charges for a shipment before I tender delivery?

(a) You must comply with a request of an individual shipper of a

shipment being transported on a collect-on-delivery basis who

specifically requests notification of the actual weight or volume and

charges on a shipment. This requirement is conditioned upon the

individual shipper supplying you with an address or telephone number

where the individual shipper will receive the communication. You must

make your notification by telephone, telegram, or in person.

(b) The individual shipper must receive your notification at least

one full 24-hour day before any tender of the shipment for delivery,

excluding Saturdays, Sundays and Federal holidays.

(c) You may disregard the 24-hour notification requirement on

shipments subject to any one of the following three conditions:

(1) Back weigh (when you weigh an individual shipper's shipment at

its destination).

(2) Pickup and delivery encompassing two consecutive week days, if

the individual shipper agrees.

(3) Maximum payment amounts at time of delivery of 110 percent of

the estimated charges, if the individual shipper agrees.

Subpart F--Transportation of Shipments

Sec. 375.601 Must I transport the shipment in a timely manner?

Yes. Transportation in a timely manner is also known as

``reasonable dispatch service.'' You must provide reasonable dispatch

service to all individual shippers, except for transportation on the

basis of guaranteed pickup and delivery dates.

Sec. 375.603 When must I tender a shipment for delivery?

You must tender a shipment for delivery for an individual shipper

on the agreed delivery date or within the period of time specified on

the bill of lading. Upon the request or concurrence of the individual

shipper, you may waive this requirement.

Sec. 375.605 How must I notify an individual shipper of any service

delays?

(a) When you are unable to perform either the pickup or delivery of

a shipment on the dates or during the periods of time specified in the

order for service and as soon as the delay becomes apparent to you, you

must notify the individual shipper of the delay, at your expense, in

one of the following three ways:

(1) By telephone.

(2) By telegram.

(3) In person.

(b) At the time you notify the individual shipper of the delay, you

must advise the individual shipper of the dates or periods of time you

expect to be able to pickup and/or deliver the shipment. You must

consider the needs of the individual shipper in your advisement. You

also must do the following six things:

(1) If your notification of delay occurs before the pickup of the

shipment, you must amend the order for service.

(2) If your notification of delay occurs after you pick up the

shipment, you or your agent must notify the individual shipper of the

delay.

(3) You must prepare a written record of the date, time, and manner

of notification.

(4) You must prepare a written record of your amended date or

period of time for delivery.

(5) You must retain these records as a part of your file on the

shipment. The retention period is one year from the date of

notification.

(6) You must furnish a true copy to the individual shipper by first

class mail or in person.

Sec. 375.607 What must I do if I am able to tender a shipment for

final delivery more than 24 hours before a specified date or period of

time?

(a) You may ask the individual shipper to accept an early delivery

date. If the individual shipper does not concur with your request or

the individual shipper does not request an early delivery date, you

may, at your discretion, place a shipment in storage under your own

account and at your own expense in a warehouse located near the

destination of the shipment. If you place the shipment in storage, you

must comply with paragraph (b) of this section. You may comply with

paragraph (c) of this section, at your discretion.

(b) You must immediately notify the individual shipper of the name

and address of the warehouse where you place the shipment. You must

make and keep a record of your notification as a part of your shipment

records. You have responsibility for the shipment under the terms and

conditions of the bill of lading. You are responsible for the charges

for redelivery, handling, and storage until you make final delivery.

(c) You may limit your responsibility to the agreed delivery date

or the first day of the period of time of delivery as specified in the

bill of lading.

Sec. 375.609 What must I do for shippers who store household goods in

transit?

(a) If you are holding goods for storage-in-transit (SIT) and the

period of time is about to expire, you must comply with this section.

(b) You must notify the individual shipper, in writing of the

following four items:

(1) The date of conversion to permanent storage.

(2) The existence of a nine-month period after the date of

conversion to permanent storage when the individual shipper may file

claims against you for loss or damage occurring to the goods in transit

or during the storage-in-transit period.

(3) The fact your liability is ending.

(4) The fact the individual shipper's property will be subject to

the rules, regulations, and charges of the warehouseman.

(c) You must make this notification at least 10 days before the

expiration date of either one of the following two periods:

(1) The specified period of time when the goods are to be held in

storage.

(2) The maximum period of time provided in your tariff for storage-

in-transit.

(d) You must notify the individual shipper by certified mail,

return receipt requested.

(e) If you are holding household goods in storage-in-transit for a

period of time less than 10 days, within one day before the expiration

date of the specified time when the goods are to be held in such

storage, you must give notification to the individual shipper of the

information specified in paragraph (b) of this section.

(f) You must maintain a record of notifications as part of the

records of the shipment.

(g) Your failure or refusal to notify the individual shipper will

automatically

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effect a continuance of your carrier liability according to the

applicable tariff provisions with respect to storage-in-transit, until

the end of the day following the date when you actually gave notice.

Subpart G--Delivery of Shipments

Sec. 375.701 May I provide for a release of liability on my delivery

receipt?

(a) No. Your delivery receipt or shipping document must not contain

any language purporting to release or discharge you or your agents from

liability.

(b) The delivery receipt may include a statement the property was

received in apparent good condition except as noted on the shipping

documents.

Sec. 375.703 What is the maximum collect-on-delivery amount I may

demand at the time of delivery?

(a) On a binding estimate, the maximum amount is the exact estimate

of the charges. You may specify the form of payment acceptable to you.

(b) On a non-binding estimate, the maximum amount is 110 percent of

the non-binding estimate of the charges. You may specify the form of

payment acceptable to you.

Sec. 375.705 If a shipment is transported on more than one vehicle,

what charges may I collect at delivery?

(a) At your discretion, you may do one of the following three

things:

(1) You may defer the collection of all charges until you deliver

the entire shipment.

(2) If you have determined the charges for the entire shipment, you

may collect the portion of the shipment tendered for delivery. You must

determine a percentage of the charges represented by the portion of the

shipment tendered for delivery.

(3) If you cannot reasonably calculate the charges for the entire

shipment, you must determine the charges for the portion of the

shipment being delivered. You must collect this amount. The total

charges you assess for the transportation of the separate portions of

the shipment must not be more than the charges due for the entire

shipment.

(b) In the event of the loss or destruction of any part of a

shipment transported on more than one vehicle, you must collect the

charges as provided in Sec. 375.707.

Sec. 375.707 If a shipment is partially lost or destroyed, what

charges may I collect at delivery?

(a) If a shipment is partially lost or destroyed, you may first

collect your freight charges for the entire shipment, if you choose. If

you do this, you must refund the portion of your published freight

charges corresponding to the portion of the lost or destroyed shipment

(including any charges for accessorial or terminal services), at the

time you dispose of claims for loss, damage, or injury to the articles

in the shipment under 49 CFR part 370.

(b) To calculate the amount of charges applicable to the shipment

as delivered, you must multiply the percentage corresponding to the

delivered shipment by the total charges applicable to the shipment

tendered by the individual shipper. The following four conditions also

apply:

(1) If the charges computed exceed the charges otherwise applicable

to the shipment as delivered, the lesser of those charges must apply.

This will apply only to the transportation of household goods and not

to charges for other services the individual shipper ordered.

(2) You must collect any specific valuation charge due.

(3) You may disregard paragraph (b) of this section if loss or

destruction was due to an act or omission of the individual shipper.

(4) You must determine, at your own expense, the proportion of the

shipment not lost or destroyed in transit.

(c) The individual shipper's rights are in addition to, and not in

lieu of, any other rights the individual shipper may have with respect

to a shipment of household goods you or your agent(s) partially lost or

destroyed in transit. This applies whether or not the individual

shipper exercises its rights provided in paragraph (a) of this section.

Sec. 375.709 If a shipment is totally lost or destroyed, what charges

may I collect at delivery?

(a) You are forbidden from collecting, or requiring an individual

shipper to pay, any freight charges (including any charges for

accessorial or terminal services) when a household goods shipment is

totally lost or destroyed in transit. The following three conditions

also apply:

(1) You must collect any specific valuation charge due.

(2) You may apply paragraph (a) of this section only to the

transportation of household goods and not to charges for other services

the individual shipper ordered.

(3) You may disregard paragraph (a) of this section if loss or

destruction was due to an act or omission of the individual shipper.

(b) The individual shipper's rights are in addition to, and not in

lieu of, any other rights the individual shipper may have with respect

to a shipment of household goods you or your agent(s) totally lost or

destroyed in transit. This applies whether or not the individual

shipper exercises its rights provided in paragraph (a) of this section.

Subpart H--Collection of Charges

Sec. 375.801 What types of charges apply to subpart H?

(a) This subpart applies to all shipments, except as provided in

paragraph (b) of this section.

(b) Exception. This subpart does not apply to collect-on-delivery

shipments subject to the 110 percent rule for non-binding estimates.

Sec. 375.803 How must I present my freight or expense bill?

You must present your freight or expense bill in accordance with

Sec. 377.205 of this subchapter.

Sec. 375.805 If I am forced to relinquish a collect-on-delivery

shipment before the payment of ALL charges, how do I collect the

balance?

On ``collect-on-delivery'' shipments, you must present your freight

bill for all transportation charges within seven days, measured from

the date the shipment was delivered at its destination. This time

period excludes Saturdays, Sundays, and Federal holidays.

Sec. 375.807 What actions may I take to collect the charges upon my

freight bill?

(a) You must present a freight bill within 15 days (excluding

Saturdays, Sundays, and Federal holidays) of the date of delivery of a

shipment at its destination.

(b) The credit period must be seven days (excluding Saturdays,

Sundays, and Federal holidays).

(c) You must provide in your tariffs the following four things:

(1) You must automatically extend the credit period to a total of

30 calendar days for any shipper who has not paid your freight bill

within the 7-day period.

(2) The individual shipper will be assessed a service charge by you

equal to one percent of the amount of the freight bill, subject to a

$20 minimum charge, for the extension of the credit period.

(3) You must deny credit to any shipper who fails to pay a duly

presented freight bill within the 30-day period. You may grant credit

to the individual shipper when the individual shipper satisfies he/she

will promptly pay all future freight bills duly presented.

(4) You must ensure all payments of freight bills are strictly in

accordance

[[Page 27147]]

with the rules and regulations of this part for the settlement of your

rates and charges.

Subpart I--Filing Annual Arbitration Reports

Sec. 375.901 What is an annual arbitration report?

An annual arbitration report describes the results of all

arbitrations requested and concluded in the previous calendar year.

Sec. 375.903 Who must file an annual arbitration report?

If you pickup or deliver shipments for individual shippers during

the calendar year, you must file an annual arbitration report.

Sec. 375.905 Where and when do I file an annual arbitration report?

You must file an annual arbitration report on, or before, March 31

of each year. Send the report to the following address: Annual

Arbitration Report, Licensing and Insurance Division (HIA-30), Office

of Motor Carrier Information Analysis, Federal Highway Administration,

400 Virginia Avenue, S.W., Suite 600, Washington, D.C. 20024.

Sec. 375.907 How must I prepare and submit an annual arbitration

report?

You must include in the annual arbitration report the following

nine items:

(a) The total number of shipments transported for the calendar year

covered by the report.

(b) The total number of claims in excess of $1000.

(c) The total number of claims of $1000 or less.

(d) The number of requests for arbitration on claims of $1000 or

less.

(e) The results of those arbitrations (list claim amount and

disposition).

(f) The number of requests for arbitration on claims in excess of

$1000.

(g) The number of requests for arbitration on claims in excess of

$1000 you accepted.

(h) The results of the arbitrations you accepted and reported under

paragraph (g) of this section, listing the claim amount and disposition

of the arbitration you accepted.

(i) An oath, completed by you. The oath must be signed by one of

your officers (e.g., President, Vice President, Secretary/Treasurer,

Owner, Partner). The oath must be substantially in the following form:

Household Goods Carrier Oath (Must be Completed by a Carrier

Official)

I, (name and title of carrier official), certify all information

supplied in this report is true, correct and complete to the best of

my knowledge. Further, I certify I am qualified and authorized to

certify the accuracy of the data. I know failing to file a complete

and truthful report with the Federal Highway Administration could

result in the assessment of civil penalties under 49 U.S.C. 14901

and criminal penalties under 18 U.S.C. 1001.

Signature ____________________

Title ____________________

Date ____________________

Subpart J--Penalties

Sec. 375.1001 What penalties do we impose for violations of this part?

(a) The penalty provisions of 49 U.S.C. Chapter 149, Civil and

Criminal Penalties, apply to this part. These penalties do not overlap.

The penalties are restated in this section for your convenience.

(b) You, or an officer, employee, or agent of yours, who by any

means tries to evade regulation provided under this part for carriers

or brokers, are/is liable to the United States for a civil penalty of

$200 for the first violation and at least $250 for a subsequent

violation.

(c) When another civil penalty is not provided under this part, if

you violate a regulation or order under this part, you are liable to

the United States for a civil penalty of $500 for each violation. A

separate violation occurs each day the violation continues.

(d) An act or omission committed by your corporation is the same as

an act or omission by your director, officer, receiver, trustee,

lessee, agent, or employee providing transportation or service. The

penalties of this part apply to violations by the corporation. The

actions and omissions of individuals acting for or employed by you are

considered to be the actions and omissions of you as well as the

individual, when the individual acts in the scope of his or her

employment.

(e) If you, as a provider of transportation of household goods, or

a receiver or trustee of yours, fail(s) or refuse(s) to comply with any

regulation in this part relating to protection of individual shippers,

you, the receiver, or the trustee are/is liable to the United States

for a civil penalty of not less than $1,000 for each violation and for

each additional day while the violation continues.

(f) You are liable to the United States for a civil penalty of not

less than $2,000 for each violation, and of not less than $5,000 for

each subsequent violation, if you knowingly engage in or knowingly

authorize an agent or other person to do one of the following three

things:

(1) Falsify documents used in the transportation of household goods

which evidence the weight of a shipment.

(2) Charge for accessorial services you failed to perform.

(3) Charge for accessorial services for which you are not entitled

to be compensated because such services are not reasonably necessary in

the safe and adequate movement of the shipment.

(g) You are liable to the United States for a c

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