# Transportation of Household Goods; Consumer Protection Regulations

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/fr%3A98-12582

## Record

- **Collection:** Federal Register
- **Document type:** Proposed Rule
- **Published:** May 15, 1998
- **Citation:** 63 FR 27126

## Text

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arbitration report in place of the outdated annual performance report,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
estimat

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A98-12582. Public record. Not legal advice.