[Federal Register: May 15, 1998 (Volume 63, Number 94)]
[Proposed Rules]
[Page 27125-27158]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15my98-44]

[[Page 27125]]

_______________________________________________________________________

Part II

Department of Transportation

_______________________________________________________________________

Federal Highway Administration

_______________________________________________________________________

49 CFR Parts 375 and 377

Transportation of Household Goods; Consumer Protection Regulations;
Proposed Rule

[[Page 27126]]

DEPARTMENT OF TRANSPORTATION

Federal Highway Administration

49 CFR Parts 375 and 377

[Docket No. FHWA-97-2979]
RIN 2125-AE30


Transportation of Household Goods; Consumer Protection
Regulations

AGENCY: Federal Highway Administration (FHWA), DOT.

ACTION: Notice of proposed rulemaking (NPRM); request for comments.

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

SUMMARY: The FHWA is proposing to amend the regulations governing the
transportation of household goods. These regulations protect consumers
who ship household goods by motor vehicle. This action is necessary to
implement the ICC Termination Act of 1995 (ICCTA) and to update the
regulations. This proposal would make the regulations easier to read
and understand, require household goods carriers to file an annual
arbitration report in place of the outdated annual performance report,
address hostage freight problems, modify a consumer protection
publication, and make conforming and technical amendments.

DATES: Comments to this NPRM should be received no later than July 14,
1998. Late comments will be considered to the extent practicable.

ADDRESSES: Signed, written comments should refer to the docket number
appearing at the top of this document and must be submitted to the
Docket Clerk, U.S. DOT Dockets, Room PL-401, 400 Seventh Street, SW.,
Washington, DC 20590-0001. All comments received will be available for
examination at the above address between 10 a.m. and 5 p.m., e.t.,
Monday through Friday, except Federal holidays. Those desiring
notification of receipt of comments must include a self-addressed,
stamped envelope or postcard.

FOR FURTHER INFORMATION CONTACT: Mr. Thomas Vining, Chief, Licensing
and Insurance Division (HIA-30), Office of Motor Carrier Information
Analysis, (202) 358-7055, Mr. Michael Falk, Motor Carrier Law Division,
Office of the Chief Counsel (HCC-20), (202) 366-1384, or Mr. David
Miller, Office of Motor Carrier Research and Standards (HCS-10), (202)
366-1790, Federal Highway Administration, Department of Transportation,
400 Seventh Street, SW., Washington, DC 20590.

SUPPLEMENTARY INFORMATION:

Electronic Access

    Internet users may access all comments received by the U.S. DOT
Dockets, Room PL-401, by using the universal resource locator (URL):
http://dms.dot.gov. It is available 24 hours each day, 365 days each
year. Please follow the instructions on-line for more information and
help.
    You may download an electronic copy of this document using a
personal computer, modem, and suitable communications software from the
Federal Register Electronic Bulletin Board Service at (202) 512-1661.
Internet users may reach the Federal Register's home page at URL:
http://www.nara.gov/nara/fedreg and at the Government Printing Office's
databases at URL: http://www.access.gpo.gov/su__docs.

Background

    Many customers of household goods carriers, particularly those
customers who move at their own expense and are infrequent users of
transportation services, are unsophisticated and less able to protect
themselves than commercial shippers. In order to ensure these consumers
are protected, the Interstate Commerce Commission (ICC) prescribed
regulations governing the transportation of household goods. These
regulations were codified at 49 CFR Part 1056.
    Following the termination of the ICC, the responsibility for the
household goods regulations was delegated to the Secretary of
Transportation pursuant to the ICCTA, Pub. L. 104-88, 109 Stat. 803,
effective January 1, 1996. The Surface Transportation Board (STB) and
the FHWA transferred these regulations from 49 CFR chapter X, Part 1056
to 49 CFR chapter III, Part 375 on October 21, 1996. See 61 FR 54706.
On December 27, 1996 (61 FR 68162), the Secretary of Transportation
delegated to the Federal Highway Administrator the responsibilities to
carry out certain functions and exercise the authority vested in the
Secretary under the ICCTA, including 49 U.S.C. 14104, Household goods
carrier operations.
    In a report to Congress dated October 24, 1994, the ICC reported it
received over 8,000 complaints from household goods shippers between
October 1, 1992, and August 25, 1994. Since January 1, 1996, the FHWA
has also received a high volume of complaints from household goods
shippers. The FHWA believes regulations designed to protect this large
population of unsophisticated shippers continue to be necessary.
    Enactment of the ICCTA requires deletion from the regulations of
all references to the former ICC and repealed sections of the
Interstate Commerce Act, revision of the regulations to codify the
transfer to the FHWA of oversight responsibilities for the household
goods moving industry, and other editorial corrections. We are also
redrafting all sections in a more reader-friendly style for clarity.

New Definition of Household Goods

    Since the ICCTA changed the definition of ``household goods'' to
eliminate office and trade show movements, it is no longer appropriate
to include this kind of transportation within the scope of the
household goods regulations. Therefore, we are making conforming
changes to the definitions contained in 49 CFR 375.103.

Elimination of Former ICC Dispute Resolution Functions

    The House of Representatives' report accompanying the ICCTA
specifically requested that DOT refrain from allocating scarce
resources to resolve private disputes, but only to oversee the
regulations. Congress modified the arbitration system to afford
consumers a forum for resolving loss and damage claims arising from
transportation of household goods and to replace the informal dispute
resolution functions conducted by the ICC without a statutory
requirement. Congress wants ``private, commercial disputes to be
resolved the way all other commercial disputes are resolved-- by the
parties.'' See H.R. Rep. No. 104-311, at 87-88 (1995). See also pages
117 and 121.

Your Rights and Responsibilities When You Move

    The FHWA is proposing to retain most of the former ICC's
regulations, including the requirement for motor common carriers of
household goods to copy or publish, and distribute a modified version
of the ICC's consumer protection publication ``Your Rights And
Responsibilities When You Move.'' This modified publication would
provide shippers of household goods the same type of common consumer
protection information previously required by the ICC. Prior to
contracting with an individual shipper, a motor common carrier of
property transporting household goods would be required to provide the
individual shipper with the booklet explaining the individual shipper's
rights and responsibilities under Federal law. The rights and
responsibilities booklet basically restates in plain, common English a
household goods carrier's obligation to follow specifically 49 CFR
Parts 375 and

[[Page 27127]]

377, and generally other regulations for all motor carriers.
    The FHWA proposes to print the entire revised text of the ``Your
Rights and Responsibilities When You Move'' booklet in appendix A to 49
CFR 375. Household goods carriers would furnish the text of appendix A
to their customers. The large number of household goods carriers
located throughout the country would ensure appendix A is readily
available to any individual who contracts with a household goods
carrier.

Discontinuance of Annual Performance Reports

    Under 49 CFR 375.18, household goods carriers were required to
submit annual performance reports on Form OCE-101 containing 16 items
regarding the number of shipments transported, the number and type of
estimates provided, charges billed, timeliness of pickups and
deliveries, and claims for loss and damage. The FHWA proposes to
abolish this requirement. This is consistent with the intent of the
Household Goods Transportation Act of 1980 (Pub. L. 96-454, 94 stat.
2011) and the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.)
to minimize paperwork requirements on household goods carriers in a
manner not compromising the protection of individual shippers. Despite
the ICC's best efforts to ensure accurate reporting by requiring
carrier certification of the reports, the FHWA is not convinced the
performance data is reliable. Periodic audits would be necessary to
ensure the performance information reported is accurate. Resources
simply do not exist for such review of the carriers. Any value this
information would be to the individual shipper would come from a
comparative analysis of the data submitted by the carriers. However,
requiring motor carriers to report comparative data the FHWA cannot
verify is inherently unfair, especially to those carriers who
scrupulously comply with the reporting requirements.

Notifying Shippers of Arbitration Procedures

    The overwhelming majority of household goods complaints received by
the ICC, and now the FHWA, involve loss and damage claims. The ICCTA
imposes an arbitration requirement to handle such claims against all
motor carriers providing transportation of household goods in
interstate commerce. 49 U.S.C. 14708. The FHWA proposes to amend the
former ``information for shippers'' section of the regulations,
formerly 49 CFR 375.2 (proposed to be Sec. 375.213), to replace the
required summary of the carrier's dispute settlement program with a
summary of the arbitration procedure.

Arbitration Program Review by the FHWA

    The ICCTA also requires the FHWA to--

``complete a review of the dispute settlement program established
under this section. If, after notice and opportunity for comment,
the [FHWA] determines that changes are necessary to such a program
to ensure the fair and equitable resolution of disputes under this
section, the [FHWA must] implement such changes and transmit a
report to Congress on such changes.'' 49 U.S.C. 14708(g).

    The FHWA is reviewing the dispute settlement (arbitration) program
established by 49 U.S.C. 14708. The FHWA would like comments from the
public whether the arbitration program Congress mandated ensures fair
and equitable resolution of disputes. If you believe the arbitration
program fails to ensure fair and equitable resolutions of disputes,
please provide specific comments why it does not and what you would
change to make it more fair and equitable. The FHWA will consider these
comments in determining whether changes must be made to the arbitration
program.

Arbitration Results Report

    The FHWA proposes to require all carriers who presently must file
an annual performance report, to file in its place an ``arbitration
results report.'' This new report would list the motor carrier's
arbitration requests and dispositions. Such a report would assist the
FHWA in carrying out its statutory responsibility to report to Congress
regarding the dispute settlement program, and to provide individual
shippers with relevant claims handling information. This report will
reduce the existing reporting burden on carriers and provide relevant
information concerning the most common household goods shipper
complaint, unsatisfactory settlement of loss and damage claims.
    The FHWA also proposes to apply a modified version of the ICC's
performance report certification requirement to the arbitration results
report. The existing certification requires a verification under
penalty of perjury and identifies 18 U.S.C. 1001 as the Federal
criminal penalty applicable to false statements made in the report.
This provision provides for penalties if carriers or their employees
fail to make a truthful and accurate report to the Secretary of
Transportation. In addition, the FHWA proposes to reference the civil
penalty provisions under 49 U.S.C. 14901 by incorporating them into
proposed Sec. 375.1001. The FHWA believes arbitration data submitted by
the carriers will be inherently more reliable than the performance-
based data in the current reports because of the formal nature of the
proceedings and the ability of the FHWA to easily spot check the
reported results.

Hostage Freight

    The FHWA has been receiving an increasing number of complaints from
individual shippers who claim carriers refuse to deliver their goods
after the individual shippers offer to pay 110 percent of the estimate
as prescribed by 49 CFR 375.3(d). These so-called hostage freight
situations defeat the protections of the 110-percent rule and cause
serious inconvenience to individual shippers. The FHWA does not have
the resources to seek court injunctions to require these carriers to
comply with the regulations and release the household goods. The FHWA,
therefore, proposes changes to enhance an individual shipper's claim
for damages based upon expenses incurred as a result of the carrier's
refusal to deliver the household goods, reduce the number of disputes
contributing to delays in delivery, and restore price certainty to the
transaction.
    The FHWA proposes to include in Sec. 375.407 language expressly
providing that an individual shipper may assert a cargo delay claim in
circumstances where a carrier fails to relinquish a shipment upon the
shipper's offer to pay 110 percent of the non-binding estimate. The
proviso would state any shipment deliberately withheld from delivery by
a carrier after an individual shipper has offered to pay 110 percent of
the estimate constitutes a failure to transport a shipment with
reasonable dispatch. Thus, hostage freight situations could be the
basis for cargo delay claims under 49 CFR part 370.
    In addition, the FHWA proposes to require carriers provide each
individual shipper a written estimate. The FHWA believes most carriers
already provide estimates to individual shippers, though we have heard
from individual shippers who allege an estimate was not provided. In
many instances, individual shippers allege their carrier explained the
price provided to the individual shipper was a ``rate quote'' but not
an estimate.
    The FHWA would not require the estimate be binding. The FHWA would
continue to allow carriers to negotiate with individual shippers
whether the estimated charges would be binding or non-binding upon the
parties.

[[Page 27128]]

    The regulations also would provide, in Sec. 375.403, that a carrier
transporting a shipment under a binding estimate reaffirms that
estimate and waives any subsequent claims about additional transported
items unless its objection is made at the time of pickup. Once the
objection is made, the carrier would be required to execute a new
binding or non-binding estimate.

Proposed Changes to the Credit Regulations

    The American Movers Conference and the Household Goods Carrier's
Bureau Committee filed a petition with the ICC on May 3, 1995,
requesting an amendment to the credit regulations (now contained in 49
CFR 377.215) to prescribe an increased minimum service charge for the
extension of credit. They also petitioned to require assessment of the
service charge until the freight bill is paid. Ex Parte No. MC-1 (Sub-
No.6), Payment of Rates and Charges of Motor Carriers--Credit
Regulations--Household Goods (Petition of American Movers Conference
and Household Goods Carrier's Bureau To Amend Credit Regulations). On
March 26, 1996, the STB served a notice on the parties indicating the
ICCTA transferred the regulatory function for the proceeding from the
ICC to the Secretary of Transportation. The responsibility for
considering such regulatory issues has been delegated to the FHWA. The
American Movers Conference changed its name to the American Moving and
Storage Association (AMSA) on January 1, 1998.
    The household goods transportation regulations require carriers to
present their freight bills within 15 days of date of delivery and
provide for a credit period of 7 days (excluding weekends and legal
holidays). The regulations further provide for the automatic extension
of the prescribed 7-day credit period to a total of 30 calendar days
for any shipper who has not paid the freight bill within the 7-day
period. However, a service charge of one percent of the amount of the
freight bill, subject to a minimum charge of $10.00, must be applied to
the extended credit period. The Petitioners requested the ICC to amend
this regulation to do both of the following two things:
    (1) Increase the minimum service charge from $10.00 to $20.00; and
    (2) Extend the one percent service charge to each 30-day period or
fraction thereof after the initial credit period. The Petitioners noted
that since the existing credit regulation does not assess any credit
charge to shippers who have not paid the carrier's freight bill within
the initial 30-day credit period, delinquent shippers thereafter obtain
free credit indefinitely.
    The ICC took no action on this petition. The FHWA will incorporate
this petition in this rulemaking and discontinue Ex Parte No. MC-1
(Sub-No. 6). For purposes of this rulemaking, the FHWA proposes to
adopt the above-described amendments to the credit regulations and
solicits public comment regarding their propriety. The FHWA also
proposes to move the credit regulations pertaining to household goods
transportation from 49 CFR 377.215(c) to 49 CFR 375.807 for ease of
reference.

On-Board Trailer Scales

    The public has alerted the FHWA to a few motor carriers who have
begun to use on-board trailer scales. These are generally non-certified
scales and expressly prohibited. The FHWA believes their use is a
violation of the former ICC's regulations. The FHWA is affirming the
prohibited use of such on-board trailer scales.
    The FHWA, however, solicits comments regarding the accuracy,
reliability, and acceptability of such non-certified on-board trailer
scales, preferably supported by scientific data.

The Maximum Threshold for Weighing Shipments Upon a Certified Platform
or Warehouse Scale

    The AMSA has asked the FHWA to consider amending Sec. 375.7(a)(5)
by raising the 454 kilogram (1,000 pound) maximum threshold requirement
for weighing shipments upon a certified platform or warehouse scale.
This threshold requirement has remained unchanged since 1939, when the
ICC first allowed the practice of weighing small shipments on platform
or warehouse scales rather than weighing the entire motor vehicle. See
17 M.C.C. 467.
    The AMSA's October 1997 petition states average weights for private
transferee C.O.D. household goods shipments have increased from 4,611
pounds in 1982 to 6,023 pounds today. The AMSA believes the industry
now considers 1,362 kilograms or less (3,000 pounds or less) shipments
to be small rather than 454 kilograms or less (1,000 pounds or less)
shipments.
    Although the rationale behind the 1,000 pounds weight threshold in
Sec. 375.7(a)(5) is unclear, it is possible that the ICC may have
linked the 1,000 pounds weight threshold to tariff provisions assessing
a minimum charge for shipments weighing less than 1,000 pounds.
    The FHWA believes raising the limit to a higher maximum (i.e.,
1,362 kilograms) might, in essence, allow movers to charge a minimum
rate at the higher weight threshold when the shipment actually weighs
less than the higher weight threshold. We are concerned that by
adopting the AMSA's definition of a small shipment as one weighing
3,000 pounds or less (1,362 kilograms or less), we could be perceived
as giving our blessing to an increase in the minimum rate threshold in
household goods carriers' tariffs. The FHWA has no authority to approve
or disapprove of household goods carriers' tariff charges. The statute
gives this responsibility to the STB.
    In addition, the FHWA believes that should an increase in the
weight threshold result in higher minimum charges for small shipments,
there may be a negative impact upon highway and motor carrier safety.
Higher minimum charges might force individual shippers to reconsider
using professional carriers to perform the transportation service.
These individual shippers, who would otherwise ship their own household
goods, might decide to save money by transporting their own household
goods using rental trucks. The FHWA believes allowing more individual
shippers to operate large, unfamiliar rental vehicles, would add more
risks to highway safety than maintaining a lower weight threshold,
thereby maintaining a lower minimum charge. The risks might include
more accidents, near misses, and personal injuries due to carrying
goods improperly or unsecured.
    The FHWA would like comments about whether the FHWA should retain,
raise, or lower the 454 kilogram maximum threshold. In your comments,
please provide any historical background information you may have on
this subject.

Replacement of the Term ``Money Order''

    The FHWA is proposing to replace the individual shipper's use of
the term ``money order'' to pay for transportation of household goods
with a much more general term, a ``cashier's check.'' The FHWA proposes
to use this term, as it is defined in 12 CFR 229.2(i).
    This would allow individual shippers to use financial or depository
institutions' official checking systems, or U.S. Postal Service money
orders. The regulations at 12 CFR 229.2(k) define a money order as a
check, too. Thus, an individual shipper could use a cashier's ``money
order.'' The FHWA believes the use of general money orders may
compromise the individual shipper's financial safety during a time
period when the individual shipper is at a greater risk of losing his
ability to pay

[[Page 27129]]

for transportation charges. The FHWA believes the use of money orders,
generally payable to the bearer, increases the risks of lost funds. The
FHWA believes the use of a cashier's check (including a U.S. Postal
Service money order) is much safer, allowing the check to be replaced
more easily. The individual shipper might ask a financial institution
(e.g., a State savings bank, a national bank, credit union, or savings
association) or a U.S. Post Office to draw an official cashier's check
for the transportation charges estimated and possibly another check for
ten percent of the estimated charges, in case the shipment moves under
a non-binding estimate and the resulting transportation charges are
more than the non-binding estimate. The FHWA believes the use of the 12
CFR 229.2 definitions will provide consistency. This would eliminate
possible duplicative and contradictory definitions of these common
terms. The FHWA solicits comments regarding this change.

Order of the Proposed Regulations

    The following table specifies the proposed section of each rule,
the old section (if any) where the rule originated, and the title of
the proposed section.

                       Part 375.--Transportation of Household Goods in Interstate Commerce
----------------------------------------------------------------------------------------------------------------
             Proposed section                             Old section                 Title of proposed section
----------------------------------------------------------------------------------------------------------------
                                         SUBPART A--GENERAL REQUIREMENTS
----------------------------------------------------------------------------------------------------------------
375.101..................................  375.1(a)................................  Who must follow these
                                                                                      regulations?
375.103..................................  375.1(b)................................  What are the definitions of
                                                                                      terms used in this part?
----------------------------------------------------------------------------------------------------------------
                                 SUBPART B--BEFORE OFFERING SERVICES TO CUSTOMERS

                                            Liability Considerations
----------------------------------------------------------------------------------------------------------------
375.201..................................  375.12..................................  What is my normal liability
                                                                                      for loss and damage when I
                                                                                      accept goods from an
                                                                                      individual shipper?
375.203..................................  What actions of an individual shipper
375.12...................................   may limit or reduce my normal
                                            liability?.
----------------------------------------------------------------------------------------------------------------
                                            General Responsibilities
----------------------------------------------------------------------------------------------------------------
375.205..................................  375.14..................................  May I have agents?
375.207..................................  375.17..................................  What items must be in my
                                                                                      advertisements?
375.209..................................  375.13..................................  How must I handle
                                                                                      complaints and inquiries?
375.211..................................  None....................................  Must I have an arbitration
                                                                                      program?
375.213..................................  375.2...................................  What information must I
                                                                                      provide to a prospective
                                                                                      individual shipper?
                                       Collecting Transportation Charges
----------------------------------------------------------------------------------------------------------------
375.215..................................  373, subpart A..........................  How must I collect charges?
375.217..................................  377, subpart A..........................  May I collect charges upon
                                                                                      delivery?
375.219..................................  377.215(a) and (b)......................  May I extend credit to
                                                                                      shippers?
375.221..................................  375.19..................................  May I use a charge card
                                                                                      plan for payments?
----------------------------------------------------------------------------------------------------------------
                                       SUBPART C--SERVICE OPTIONS PROVIDED
----------------------------------------------------------------------------------------------------------------
375.301..................................  None....................................  What service options may I
                                                                                      provide?
375.303..................................  375.11..................................  If I sell excess liability
                                                                                      insurance coverage, what
                                                                                      must I do?
----------------------------------------------------------------------------------------------------------------
                                          SUBPART D--ESTIMATING CHARGES
----------------------------------------------------------------------------------------------------------------
375.401..................................  None....................................  Must I estimate charges?
375.403..................................  375.3...................................  How must I provide a
                                                                                      binding estimate?
375.405..................................  375.3...................................  How must I provide a non-
                                                                                      binding estimate?
375.407..................................  375.3...................................  Under what circumstances
                                                                                      must I relinquish
                                                                                      possession of a collect-on-
                                                                                      delivery shipment
                                                                                      transported under a non-
                                                                                      binding estimate?
----------------------------------------------------------------------------------------------------------------
                               SUBPART E--PICK UP OF SHIPMENTS OF HOUSEHOLD GOODS

                                                 Before Loading
----------------------------------------------------------------------------------------------------------------
375.501..................................  375.5...................................  Must I write up an order
                                                                                      for service?
375.503..................................  375.6...................................  Must I write up a bill of
                                                                                      lading?
----------------------------------------------------------------------------------------------------------------
                                              Weighing The Shipment
----------------------------------------------------------------------------------------------------------------
375.505..................................  375.7...................................  Must I determine the weight
                                                                                      of a shipment?
375.507..................................  375.7...................................  What is a certified scale?
375.509..................................  375.7...................................  How must I determine the
                                                                                      weight of a shipment?
375.511..................................  375.7...................................  May I use an alternative
                                                                                      method for shipments
                                                                                      weighing 454 kilograms or
                                                                                      less?
375.513..................................  375.7...................................  Must I give the individual
                                                                                      shipper an opportunity to
                                                                                      observe the weighing?
375.515..................................  375.7...................................  May an individual shipper
                                                                                      waive his/her right to
                                                                                      observe each weighing?
375.517..................................  375.7...................................  May an individual shipper
                                                                                      demand re-weighing?
375.519..................................  375.7...................................  Must I obtain weight
                                                                                      tickets?

[[Page 27130]]


375.521..................................  375.7...................................  What must I do if an
                                                                                      individual shipper wants
                                                                                      to know the actual weight
                                                                                      or charges for a shipment
                                                                                      before I tender delivery?
----------------------------------------------------------------------------------------------------------------
                                     SUBPART F--TRANSPORTATION OF SHIPMENTS
----------------------------------------------------------------------------------------------------------------
375.601..................................  375.8...................................  Must I transport the
                                                                                      shipment in a timely
                                                                                      manner?
375.603..................................  375.8...................................  When must I tender a
                                                                                      shipment for delivery?
375.605..................................  375.8...................................  How must I notify an
                                                                                      individual shipper of any
                                                                                      service delays?
375.607..................................  375.8...................................  What must I do if I am able
                                                                                      to tender a shipment for
                                                                                      final delivery more than
                                                                                      24 hours before a
                                                                                      specified date?
375.609..................................  375.12(c)...............................  What must I do for shippers
                                                                                      who store household goods
                                                                                      in transit?
----------------------------------------------------------------------------------------------------------------
                                        SUBPART G--DELIVERY OF SHIPMENTS
----------------------------------------------------------------------------------------------------------------
375.701..................................  375.10..................................  May I provide for a release
                                                                                      of liability on my
                                                                                      delivery receipt?
375.703..................................  375.3(d)................................  What is the maximum collect-
                                                                                      on-delivery amount I may
                                                                                      demand at the time of
                                                                                      delivery?
375.705..................................  375.16..................................  If a shipment is
                                                                                      transported on more than
                                                                                      one vehicle, what charges
                                                                                      may I collect at delivery?
375.707..................................  375.15..................................  If a shipment is partially
                                                                                      lost or destroyed, what
                                                                                      charges may I collect at
                                                                                      delivery?
375.709..................................  375.15..................................  If a shipment is totally
                                                                                      lost or destroyed, what
                                                                                      charges may I collect at
                                                                                      delivery?
----------------------------------------------------------------------------------------------------------------
                                     SUBPART H--COLLECTION OF ACTUAL CHARGES
----------------------------------------------------------------------------------------------------------------
375.801..................................  None....................................  What types of charges apply
                                                                                      to subpart H?
375.803..................................  377.205.................................  How must I present my
                                                                                      freight or expense bill?
375.805..................................  375.3(d)................................  If I was forced to
                                                                                      relinquish a collect-on-
                                                                                      delivery shipment before
                                                                                      the payment of ALL
                                                                                      charges, how do I collect
                                                                                      the balance?
375.807..................................  377.215.................................  (c)What actions may I take
                                                                                      to collect the charges
                                                                                      upon my freight bill?
----------------------------------------------------------------------------------------------------------------
                                  SUBPART I--FILING ANNUAL ARBITRATION REPORTS
----------------------------------------------------------------------------------------------------------------
375.901..................................  375.18..................................  What is an annual
                                                                                      arbitration report?
375.903..................................  None....................................  Who must file an annual
                                                                                      arbitration report?
375.905..................................  None....................................  Where and when do I file an
                                                                                      annual arbitration report?
375.907..................................  None....................................  How must I prepare and
                                                                                      submit an annual
                                                                                      arbitration report?
----------------------------------------------------------------------------------------------------------------
                                               SUBPART J--PENALTIES
----------------------------------------------------------------------------------------------------------------
375.1001.................................  None....................................  What penalties do we impose
                                                                                      for violations of this
                                                                                      part?
----------------------------------------------------------------------------------------------------------------
                                                    APPENDIX A
----------------------------------------------------------------------------------------------------------------
Part 375, Appendix A.....................  Part 375--Form: Office of Compliance and  Your Rights and
                                            Enforcement (OCE)-100.                    Responsibilities When You
                                                                                      Move.
----------------------------------------------------------------------------------------------------------------

Rulemaking Analyses and Notices

    All comments received before the close of business on the comment
closing date indicated above will be considered and will be available
for examination in the docket number appearing at the top of this
document. The FHWA will file comments received after the comment
closing date in the docket and will consider late comments to the
extent practicable. The FHWA may, however, issue a final rule at any
time after the close of the comment period. In addition to late
comments, the FHWA will also continue to file, in the docket, relevant
information becoming available after the comment closing date, and
interested persons should continue to examine the docket for new
material.
    Internet users may access all comments received by the U.S. DOT
Dockets, Room PL-401, by using the universal resource locator (URL):
http://dms.dot.gov. It is available 24 hours each day, 365 days each
year. Please follow the instructions on-line for more information and
help.

Executive Order 12866 (Regulatory Planning and Review) and DOT
Regulatory Policies and Procedures

    The FHWA has determined this action is neither a significant
regulatory action under Executive Order 12866 nor significant under the
Department of Transportation's regulatory policies and procedures. It
is anticipated the economic impact of this action will not be
substantial because this proposed rule makes minor, technical changes
to the Federal Motor Carrier Commercial Regulations for household goods
carriers. A full regulatory evaluation, therefore, is not warranted.

Regulatory Flexibility Act

    In compliance with the Regulatory Flexibility Act (5 U.S.C. 601-
612), the FHWA has evaluated the effects of this rule upon small
entities. The Small Business Administration (SBA) requires Federal
agencies to analyze the impact of proposed rules on small businesses
using the SBA Small Business Size Standards. These standards are based
on the number of employees or revenue generated, and small businesses
are listed by standard industrial classification (SIC) code.
    The FHWA believes there is no way to estimate the proportion of
small

[[Page 27131]]

entities that are affected by motor carrier consumer protection
regulations because the Motor Carrier Management Information System
(MCMIS), the FHWA database of all entities which operate commercial
motor vehicles, does not contain information pertaining to revenue,
number of employees, or SIC codes. The most reliable method of
determining the size of the motor carrier using MCMIS is by number of
power units. For purposes of this analysis, a small motor carrier means
a motor carrier with 10 power units or fewer.
    The FHWA has, in its August 1996 databases, 10,097 motor common
carriers who identified themselves as transporting household goods in
interstate or foreign commerce. Of this number, 9,179 (or 90.9 percent)
have identified themselves as having ten or fewer power units (i.e.,
straight trucks or truck tractors).
    The FHWA believes this database significantly overstates the actual
number of motor carriers subject to the household goods consumer
protection regulations. The ICCTA created a new, more restrictive
definition of transportation of household goods than the ICC had used.
The FHWA's MCMIS database contains information based upon a motor
carrier's determination of what it transported at the initial filing of
the form MCS-150. This information may have been filed before the ICCTA
and may have significantly changed since the filing.
    The AMSA claims, as its members, most of the motor common carriers
who transport household goods in interstate commerce. On March 4, 1997,
the AMSA informed the FHWA that it had 1,754 members, who hold FHWA
authority to operate in interstate commerce transporting household
goods. The FHWA will assume the AMSA membership roll is closer to the
true number. The FHWA will add 246 motor carriers as a cushion for
those motor carriers who may not be AMSA members. Based upon the AMSA
membership data, for purposes of these analyses, we will use 2,000
carriers as the estimated size of the regulated industry subject to
this proposed rule.
    This NPRM would amend and clarify the requirements for motor common
carriers of household goods to provide service to each prospective
individual shipper. These requirements include the following thirteen
items:
    (1) Minimum advertising information soliciting prospective
individual shippers.
    (2) Distribution of a document, specified in appendix A to part
375, noting the individual shipper's rights and responsibilities under
Federal Highway Administration regulations.
    (3) A binding or non-binding estimate of transportation,
accessorial, and incidental charges.
    (4) An order for service.
    (5) The selling of insurance policies.
    (6) A bill of lading.
    (7) Weight tickets.
    (8) Notifications of reasonable dispatch service delays.
    (9) Complaint and inquiry handling.
    (10) Use of charge card plans.
    (11) Agreements with agents
    (12) Notification of storage-in-transit liability assignments.
    (13) An arbitration results report.
    The former ICC required motor common carriers to follow these
requirements with the exception of item number 13. Congress transferred
the authority to protect individual shippers to the FHWA in the ICCTA.
The FHWA believes these are minimum requirements necessary to protect
individual shippers. The AMSA has advised the FHWA, in correspondence
placed in the docket, its members want these requirements to be
continued with minor modifications, as discussed above, to protect
individual shippers.
    The FHWA calculates each entity will have to spend an average of
$7,967 and 2,105 annual burden hours to comply with all of the
paperwork requirements of this action. The FHWA based this estimate
upon the estimated costs identified below to create records, duplicate
records, store the original and duplicated copies of records, and
practice inventory control for the records.
    The information required for preparing these documents is the type
of information already developed by such entities in the normal course
of conducting a household goods transportation business. The time
necessary to compile the incremental data for the documents required in
these regulations should be minimal and would vary proportionately with
the number of shipments transported by the carrier.
    Although transportation consumers will benefit from the
availability of this information, the cost to small carriers should be
relatively minimal. Accordingly, the FHWA certifies this action would
not have a significant impact on a substantial number of small entities
within the meaning of the Regulatory Flexibility Act.

Executive Order 12612 (Federalism Assessment)

    This NPRM has been analyzed in accordance with the principles and
criteria contained in Executive Order 12612. We have determined this
action does not have sufficient federalism implications to warrant the
preparation of a federalism assessment. The amendments made by this
proposed rule would not have a substantial direct effect on States nor
on the relationship or distribution of power between the national
government and the States because these changes do little to limit the
policy making discretion of the States.
    The rule is not intended to preempt any State law or State
regulation. Moreover, the changes made by this rule would impose no
additional cost or burden upon any State. The rule would not have a
significant effect upon the ability of the States to discharge
traditional State governmental functions. The FHWA, therefore, is not
required to prepare a separate Federalism Assessment for this rule.

Unfunded Mandates Reform Act of 1995

    This NPRM has been analyzed in accordance with the principles and
criteria contained in the Unfunded Mandates Reform Act of 1995 (UMRA)
(Pub. L. 104-4, 109 Stat. 48). The FHWA has determined this action does
not have sufficient unfunded mandate implications to warrant the
preparation of an unfunded mandate assessment.
    The amendments made by this proposed rule would not have a
substantial direct effect on States nor on the relationship or
distribution of power between the national government and the States
because these changes do little to limit the policy making discretion
of the States.
    The rule is not intended to preempt any State law or State
regulation. Moreover, the changes made by this rule would impose no
additional cost or burden upon any State. The rule will not have a
significant effect upon the ability of the States to discharge
traditional State governmental functions.
    For purposes of section 203 of the UMRA, the replacement of the
annual performance report with an annual arbitration report would not
impose a burden greater than $100 million. Also, the addition of an
explicit requirement to provide an estimate, either binding or non-
binding, would not impose a $100 million burden, either.
    Under the Regulatory Flexibility Act discussion above, the FHWA
estimates this proposal would have an annual burden of just under $16
million. The FHWA, therefore, is not required to prepare a separate
Unfunded Mandate Assessment for this rule.

[[Page 27132]]

Paperwork Reduction Act

    Under the OMB regulations, 5 CFR 1320, Controlling Paperwork
Burdens on the Public, the OMB requires the FHWA to estimate the burden
its regulations impose to generate, maintain, retain, disclose, or
provide information to or for the FHWA, including the nine following
items:
    1. Reviewing instructions.
    2. Developing, acquiring, installing, and utilizing technology and
systems for the purpose of collecting, validating, and verifying
information.
    3. Developing, acquiring, installing, and utilizing technology and
systems for the purpose of processing and maintaining information.
    4. Developing, acquiring, installing, and utilizing technology and
systems for the purpose of disclosing and providing information.
    5. Adjusting the existing ways to comply with any previously
applicable instructions and requirements.
    6. Training personnel to be able to respond to a collection of
information.
    7. Searching data sources.
    8. Completing and reviewing the collection of information.
    9. Transmitting, or otherwise disclosing the information.
    The OMB regulations permit the time, effort, and financial
resources necessary to comply with a collection of information incurred
by persons in the normal course of their activities (e.g., in compiling
and maintaining business records) to be excluded from the burden
estimate if the FHWA demonstrates to the OMB that the reporting,
recordkeeping, or disclosure activities needed to comply are usual and
customary. A collection of information conducted or sponsored by the
FHWA and also conducted or sponsored by a unit of State, local, or
tribal government is presumed to impose a Federal burden, except to the
extent the FHWA shows such State, local, or tribal requirement would be
imposed even in the absence of a Federal requirement.
    The collection of information requirements in this NPRM are to
generate, maintain, retain, disclose, and provide information to or for
the FHWA under 49 CFR part 375 to individual shippers as a consumer
protection service. The collection of information would be used by
prospective shippers to make informed decisions about contracts and
services to be ordered, executed, and settled with interstate household
goods carriers. The only information collection items the FHWA is
changing from the former ICC's rules are the elimination of the annual
performance report (previously submitted to OMB) and the addition of an
annual arbitration report. All other items were required under the
former ICC regulations, although no assigned OMB control number was
transferred from the ICC to the FHWA covering these collections of
information.
    The FHWA has calculated the 5 CFR 1320 paperwork financial
resources burden for the collection of information contained in this
NPRM. The FHWA used national averages of cost indicators developed by
the Association of Records Managers and Administrators, Inc. (ARMA
International). The ARMA International publication ``Cost Indicators
for Selected Records Management Activities (A Guide to Unit Costing for
the Records Manager--Volume 1)'' (1993) and its companion ``Cost
Finding for Records Management Activities (A Guide to Unit Costing for
the Records Manager--Volume II)'' (1996) by Jose-Marie Griffiths,
Ph.D., and Donald W. King were used by the FHWA in calculating activity
and organizational unit costs. The ARMA International guides determine
organizational unit costs to be costs a parent organization may attach
to records management activities. They include activity unit costs and
records management general and administrative costs. Activity unit
costs include salaries, benefits, supervision, training, staff and
storage space, equipment, and supplies. General and administrative
costs include staff compensation and space, non-productive time,
furniture, supplies, and other direct and indirect costs associated
with management and administration. The FHWA believes using
organizational unit costs will more accurately estimate the actual
costs for the entire CMV industry rather than activity unit costs and
records management unit costs.

                       Estimated Paperwork Burden
------------------------------------------------------------------------
                                                 Financial      Hourly
                Type of burden                      cost        burden
------------------------------------------------------------------------
Advertising...................................       $4,814          351
``Your Rights'' Booklet.......................      894,710        4,167
Estimates.....................................    4,251,240    3,060,000
Order for Service.............................    1,417,080      300,000
Insurance Policy Sales........................      236,180      100,000
Bills of Lading...............................    2,877,240      300,000
Weight Tickets................................    2,702,808       90,000
Notice (Reasonable Dispatch)..................      507,816       10,000
Complaint Handling............................    1,502,696      310,000
Charge Card Plans.............................        1,502          584
Notice (SIT)..................................      228,348       30,000
Arbitration Report............................    1,310,722        4,000
                                               -------------------------
    Total.....................................   15,935,156    4,209,102
------------------------------------------------------------------------

    As stated above, the FHWA will use the figure of 2,000 motor
carriers engaged in transportation of household goods in interstate or
foreign commerce.
    The FHWA has broken down each discussion of information collection
requirements into the major areas of 49 CFR Part 375's requirements.

Minimum Advertising Information Soliciting Prospective Individual
Shippers

    Section 375.207 requires each advertisement of a motor carrier, or
its agent, to include the name or trade name of the originating service
motor carrier and the applicable FHWA-assigned U.S. DOT number. The
FHWA believes identifying the name or trade name of a business entity
in an advertisement is a usual and customary business practice. If the
OMB agrees with the FHWA's assertion, this requirement would not be
considered a burden defined by 5 CFR 1320, but would require approval
by the OMB.
    The requirement to specify the applicable FHWA-assigned U.S. DOT
number in an advertisement, except for advertisements on radio
broadcasts, would impose a slight burden. The FHWA estimates the 2,000
carriers subject to this requirement would have one advertisement in
their local telephone yellow pages. In addition, each carrier would
have one advertisement per year created for its local paper. The FHWA
estimates the 17 large van lines would have 12 different advertisements
per year created. The FHWA will estimate the cost of placing the U.S.
DOT number in the created advertisement, but believes the
advertisement's other time and financial costs are usual and customary
business practices.
    The ARMA International guide indicates the creation of one record
costs an organization $1.145. The FHWA determines 2,000 local telephone
advertisements, 2,000 local newspaper advertisements, and 204 large van
line advertisements must be created specifying the FHWA-assigned
number. Multiplying 4,204 by $1.145 results in $4,814 (the FHWA rounds
money up to the next whole dollar).
    The FHWA has calculated the 5 CFR 1320 paperwork time burden for
the

[[Page 27133]]

advertisement collection of information. Based upon 4,204
advertisements, the FHWA estimates each motor carrier would need 5
minutes to create the assigned number upon the advertisement. This
result multiplied by 4,202 advertisements equals 351 hours for the
household goods carrier industry.

Your Rights and Responsibilities When You Move

    In February 1997, the FHWA asked the AMSA to estimate how many
booklets would be distributed to individual shippers. The AMSA believes
580,000 orders for service are executed each year and recommends the
FHWA round this number up by 20,000 to 600,000 orders for service. This
would capture the additional booklets of ``Your Rights And
Responsibilities When You Move'' distributed to prospective individual
shippers who decide not to use the services of a motor common carrier,
but who were supplied the booklet at the appropriate time based upon
the regulation.
    In the past, the ICC required motor common carriers to obtain the
booklet ``Your Rights and Responsibilities When You Move'' from the
ICC. A motor common carrier could add supplementary text about carrier-
specific items relevant to its operations and its own carrier logo. The
motor carrier would then distribute the booklet.
    Although the FHWA does not have the resources to publish massive
quantities of this important consumer publication, we strongly believe
this publication should continue to be distributed. The AMSA agrees
with us. The AMSA has advised us its members would provide the modified
publication to consumers even without a regulatory requirement.
However, we propose to continue requiring distribution of the
publication to ensure consumers are provided with important knowledge
to deal effectively with household goods carriers, particularly the
few, unscrupulous carriers who treat them unfairly and are unlikely to
provide this information voluntarily.
    The FHWA would allow motor common carriers to reproduce or
photocopy this document in one of the following three ways.
    1. Distribute a subsequent Federal Register final rule (and
successor final rules).
    2. Distribute the appendix to 49 CFR Part 375 when it is published
in October of each year (by the U.S. Government Printing Office).
    3. Publish independently their own publication containing the text
of appendix A to Part 375.
    This would provide flexibility to small entities who are not agents
for other larger motor common carriers. The FHWA expects large van
lines will want to produce their own booklets containing the appendix
to part 375.
    Based upon an organizational unit cost analysis, the FHWA estimates
the household goods carrier industry will incur an annual paperwork
burden of $894,710 to comply with the publication and distribution of
the booklet. Each carrier may create its own carrier identifiable
document for distribution. The organizational unit cost for creating a
record using the ARMA International guide is $1.145 per record.
Multiplying 2,000 carriers by $1.145 results in $2,290 for all carriers
to produce an original record. The organizational unit cost for
duplicating the carrier's document is $1.076 per record. This would
cost $645,600 for 600,000 requests for estimates. The organizational
unit cost for storage of the documents is $0.0228 per record. The FHWA
estimates 602,000 must be stored. This is the sum for the storage of
the original document plus all the duplicated documents. The storage
cost is estimated to be $13,726. The FHWA also estimates the document
must be in inventory and must be controlled. The organizational unit
cost for the practice of inventory control of documents is $0.387 per
record. The FHWA estimates this to be $232,974. The total cost is
$894,710 based upon the organizational unit cost method.

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

    The paperwork time burden for the 600,000 requests for orders for
service requiring the distribution of this important consumer
publication by 2,000 motor carriers results in an average of 300 copies
distributed annually for each carrier. The FHWA estimates each carrier
would need 1 hour to create each original document and approximately
one additional hour to photocopy 300 copies of this document for
distribution. The FHWA estimates carriers would need an additional 5
minutes to inventory their stored documents. The FHWA believes all
household goods carriers usually and customarily distribute carrier-
produced sales and information brochures and this document would be
distributed with those documents when the prospective shipper is
contacted. The FHWA, therefore, finds good cause to forego estimating a
burden for distribution of the information in the brochure in this
NPRM. The FHWA's total time estimate per carrier for this action is 2
hours 5 minutes. This result multiplied by 2,000 carriers equals 4,167
hours for the household goods carrier industry.

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

    Motor carriers are not required under current FHWA regulations to
furnish individual shippers with any type of estimate, binding or non-
binding. If an estimate is calculated, however, the regulations do
specify certain information is to be recorded, maintained, retained,
and provided to the individual shipper. The proposed retention period
of one year would remain the same as the current period. See 49 CFR
379.13, Appendix A, item J.1.(a) (62 FR 32040, June 12, 1997).
    The FHWA believes household goods carriers provide almost every
individual shipper with an estimate of charges prior to loading. The
FHWA is proposing to require motor carriers to provide an estimate to
every individual shipper. The ICC's unpublished 1995 HHG Performance
Report Study found motor carriers wrote binding estimates for about
55.8 percent of the 384,003 collect-on-delivery shipments transported.
The FHWA will use 60 percent for the percentage of estimates motor
carriers will write as binding estimates (an exact estimate of the
charges to be paid) and 40 percent written as non-binding estimates (an
approximate cost of the transportation charges). The FHWA believes each
shipper obtains an average of three estimates before deciding upon a
motor carrier to transport its household goods.
    For binding estimates, the motor carrier calculates what the total
bill would be based upon a detailed analysis of the services to be
provided. If the individual shipper has additional services or items to
be performed at the time of loading the shipment, the motor carrier may
either reaffirm the binding estimate, reject the binding estimate,
recalculate a new binding estimate, or calculate a non-binding
estimate. If the motor carrier does nothing, this NPRM would require
the carrier to honor the binding estimate.
    The FHWA estimates a motor carrier's binding estimate takes an
average of 2 hours to complete. This involves the following ten items:
    1. Traveling to the shipment location.
    2. Estimating the items to be transported and their weight.
    3. Estimating accessorial/incidental charges.

[[Page 27134]]

    4. Reviewing and obtaining information from tariffs, guides,
schedules, etc.
    5. Calculating the estimate.
    6. Recording the estimate.
    7. Copying the estimate.
    8. Attaching the copy to the order for service/bill of lading.
    9. Providing the estimate to the prospective individual shipper.
    10. Return travel to the motor carrier's terminal.
    Calculation of 2 hours multiplied by 1,080,000 binding estimates
(600,000 times 60 percent times an average of 3 estimates per order for
service) results in 2,160,000 hours.
    The FHWA assumes 50 percent of non-binding estimates are completed
exclusively by telephone and 50 percent are completed through a
personal visit to the individual shipper's residence. The FHWA
estimates a motor carrier's non-binding estimate takes an average of 30
minutes to complete by telephone. This involves the following eight
items:
    1. Asking the individual on the telephone certain questions (such
as number of rooms, any extra heavy items, automobiles, etc.).
    2. Estimating the weight to be transported.
    3. Estimating accessorial/incidental charges.
    4. Reviewing and obtaining information from tariffs, guides,
schedules, etc.
    5. Calculating an estimate.
    6. Recording the estimate.
    7. Copying the estimate and attaching the copy to the order for
service/bill of lading.
    8. Providing the estimate to the prospective individual shipper
over the telephone.
    Calculation of 30 minutes multiplied by 360,000 non-binding
estimates (600,000 times 40 percent (non-binding estimate) times 50
percent (estimate by telephone) times 3 estimates per order for service
(average)) results in 180,000 hours.
    Providing a non-binding estimate by a personal visit involves
essentially the same elements as a binding estimate and would consume
the same amount of time.
    Calculation of 2 hours multiplied by 360,000 non-binding estimates
(600,000 times 40 percent (non-binding estimate) times 50 percent
(estimate by personal visit) times 3 estimates per order for service
(average)) results in 720,000 hours.
    Thus, the FHWA calculates the total burden hours as 2,160,000 for
binding estimates, 180,000 for non-binding telephone estimates, and
720,000 for non-binding personal visit estimates for a grand total of
3,060,000 burden hours for estimates.
    The FHWA estimates the financial burden in providing estimates
would be creating a record of the estimate, copying the estimate,
attaching it to the bill of lading, and filing and storing the estimate
with the bill of lading. As discussed above, the FHWA estimates 600,000
orders for service are executed each year and the FHWA assumes each
shipper obtains an average of 3 estimates prior to deciding upon a
motor carrier. This means 1,800,000 estimates would be made each year,
and 1,800,000 copies made, filed and stored. The FHWA assumes the
records would be active rather than inactive.
    Thus, the FHWA calculates the organizational unit cost analysis to
provide estimates of charges with the following four acts: 1,800,000
times $1.145 for creating one record equals $2,061,000. 1,800,000 times
$1.076 for duplicating one record equals $1,936,800. 1,800,000 times
$0.118 for filing one record equals $212,400. 1,800,000 times $0.0228
for storing one record equals $41,040. The total of the four results is
$4,251,240.

Order For Service

    An order for service must contain the following eleven information
items:
    1. The carrier's name and address and the FHWA U.S. DOT number
assigned to the carrier who is responsible for performing the service.
    2. The individual shipper's name, address and, if available,
telephone number.
    3. The name, address and telephone number of the delivering
carrier's office or agent located at or nearest to the destination of
the shipment.
    4. A telephone number where the individual shipper/consignee may
contact the carrier or his designated agent.
    5. Dates and times. One of the following three dates and times.
    (a) The agreed pickup date and agreed delivery date of the move.
    (b) The agreed period or periods of time of the entire move.
    (c) If the shipment is to be transported on a guaranteed service
basis, the guaranteed dates or periods of time for pickup,
transportation, and delivery. Any penalty or per diem requirements of
the agreement must be entered under this item.
    6. A complete description of any special or accessorial services
ordered and minimum weight or volume charges applicable to the
shipment.
    7. Any identification or registration number assigned to the
shipment.
    8. For non-binding estimated charges, the amount of the charges,
the method of payment of total charges, and, the maximum amount
required to be paid at time of delivery to obtain possession of the
shipment.
    9. For binding estimated charges, the amount of charges required to
be paid based upon a binding estimate and the terms of payment under
this estimate.
    10. Whether the individual shipper requests notification of the
charges prior to delivery and the telephone number or address where
such communications will be received.
    11. Signature of the individual shipper, who is ordering the
service, and signature of the carrier or his agent.
    A copy of the order for service must be dated and furnished to the
individual shipper at the time it is executed. The proposed retention
period of one year would remain the same as the current period. See 49
CFR 379.13, Appendix A, item J.1.(b).
    The FHWA estimates an order for service takes 30 minutes to
complete. Multiplying this by 600,000 orders for service results in
300,000 burden hours.
    The FHWA estimates the financial burden in providing orders for
service would be in creating the order of service record, copying the
order, attaching it to the bill of lading, and filing and storing the
order with the bill of lading. As discussed above, the FHWA estimates
600,000 estimates for orders for service are executed each year. This
means 600,000 orders would be made each year, and 600,000 copies made,
filed and stored. The FHWA assumes the records would be active rather
than inactive.
    Thus, the FHWA calculates the organizational unit cost analysis to
provide orders for service using the following four calculations.
600,000 times $1.145 for creating one record equals $687,000. 600,000
times $1.076 for duplicating one record equals $645,600. 600,000 times
$0.118 for filing one record equals $70,800. 600,000 times $0.0228 for
storing one record equals $13,680. The total of the four results is
$1,417,080.

Selling Insurance Policies

    The regulations do not require motor carriers to sell insurance to
individual shippers. If a motor carrier does sell insurance, however,
the insurance policy must be in plain English and clearly specify the
nature and extent of coverage. The proposed retention period (until
expiration of coverage plus one year) would remain the same as the
current period. See 49 CFR 379.13, Appendix A, item F.1.(c).

[[Page 27135]]

    The FHWA estimates motor carriers sell excess liability insurance
policies on 100,000 shipments of the 600,000 shipments each year. The
FHWA also estimates each policy takes 1 hour to process and copy. This
would result in 100,000 hours of burden for selling insurance policies
to individual shippers.
    The FHWA estimates the financial burden in selling insurance
policies would be creating the insurance policy record, copying the
policy, providing one copy to the individual shipper, and filing and
storing the policy. As discussed above, the FHWA estimates 100,000
insurance policies would be executed each year. This means 100,000
policies would be made each year, and 100,000 copies would be made,
filed, and stored. The FHWA assumes the records would be active rather
than inactive.
    Thus, the FHWA calculates the organizational unit cost analysis to
provide insurance policies using the following four calculations.
100,000 times $1.145 for creating one record equals $114,500. 100,000
times $1.076 for duplicating one record equals $107,600. 100,000 times
$0.118 for filing one record equals $11,800. 100,000 times $0.0228 for
storing one record equals $2,280. The total of the four results is
$236,180.

Bills of Lading

    A bill of lading must include the following twelve information
items:
    1. The carrier's name and address, or the name and address of the
motor carrier issuing the bill of lading.
    2. The names and addresses of any other motor carriers, when known,
who will participate, through interline, in the transportation of the
shipment.
    3. The name, address, and telephone number of the office of the
motor carrier to contact in relation to the transportation of
shipments.
    4. When the transportation is to be performed on a collect-on-
delivery basis, the name, the address and, if furnished, the telephone
number of a person to whom notification is provided for in proposed
Sec. 375.605 must be given.
    5. For non-guaranteed service, the agreed date or period of time
for pickup of the shipment and the agreed date or period of time for
the delivery of the shipment. The agreed dates or periods of time for
pickup and delivery entered upon the bill of lading must conform to the
agreed dates or periods of time for pickup and delivery entered upon
the order for service or a proper amendment to the order for service.
    6. For guaranteed service subject to tariff provisions, the dates
for pickup and delivery and any penalty or per diem entitlements due
the individual shipper under the agreement.
    7. The actual date of pickup.
    8. The company or carrier identification number of the vehicle(s)
on which the motor carrier loads the shipment.
    9. The terms and conditions for payment of the total charges
including notice of any minimum charges.
    10. When the transportation is to be performed on a collect-on-
delivery basis and if a pre-move estimate of the charges is provided to
the individual shipper, the maximum amount required to be paid at the
time of delivery to obtain delivery of the shipment.
    11. The required released rates valuation statement (see RELEASED
RATES OF MOTOR COMMON CARRIERS OF HHG, 9 I.C.C. 2d 523 (1993)) (as
amended), and the charges, if any, for optional valuation coverage.
    12. Evidence of any insurance coverage sold to or procured for the
individual shipper from an independent insurer, including the amount of
the premium for such insurance.
    A copy of the bill of lading must accompany a shipment at all
times. When the shipment is loaded upon a vehicle for transportation,
the bill of lading must be in the possession of the driver responsible
for the shipment. The proposed retention period would remain the same
as the current period. See 49 CFR 379.13, Appendix A, item I.1.
    The FHWA estimates a bill of lading takes 30 minutes to complete.
Multiplying this by the estimated 600,000 bills of lading executed each
year results in 300,000 burden hours.
    The FHWA estimates the financial burden in providing bills of
lading would be creating the bill of lading record, copying through the
use of carbon or carbonless paper, attaching a copy to the estimate and
order for service, providing a copy to accompany the load, and filing
and storing the bill of lading with the estimate of charges and order
for service. As discussed above, the FHWA estimates 600,000 orders for
service are executed each year. This means 600,000 bills of lading
would be made each year. The FHWA estimates at least three copies for
each bill of lading would be made (1,800,000 copies), and 1,800,000
copies filed and stored. The FHWA assumes the records would be active
rather than inactive.
    Thus, the FHWA calculates the organizational unit cost analysis to
write bills of lading using the following four calculations: 600,000
times $1.145 for creating one record equals $687,000. 1,800,000 times
$1.076 for duplicating one record equals $1,936,800. 1,800,000 times
$0.118 for filing one record equals $212,400. 1,800,000 times $0.0228
for storing one record equals $41,040. The total of the four results is
$2,877,240.

Weight Tickets

    Every weight ticket must be signed by the person performing the
weighing and must contain the following six information items:
    1. The complete name and location of the scale.
    2. The date of each weighing.
    3. Identification of the weight entries as being the tare, gross,
or net weights.
    4. The company or carrier identification of the vehicle.
    5. The last name of the individual shipper as it appears on the
Bill of Lading.
    6. The carrier's shipment registration or Bill of Lading number.
    When both weighings are performed on the same scale, one weight
ticket may be used to record both weighings. All freight bills
presented to collect any shipment charges dependent on the weight
transported must be accompanied by true copies of all weight tickets
obtained in the determination of the shipment weight. The proposed
retention period would remain the same as the current period. See 49
CFR 379.13, Appendix A, item J.5 for the current retention period.
    The FHWA estimates weighing freight takes 5 minutes to complete.
The FHWA estimates 5 percent of shipments move under a binding estimate
and an additional 5 percent move under an estimate based upon volume.
These two types of estimates do not require weighing-- therefore, the
FHWA will exclude 60,000 shipments from our calculations. The FHWA
calculates 540,000 shipments times two weighings per shipment equals
1,080,000 weighings. This multiplied by 5 minutes per weighing results
in 90,000 burden hours.
    The FHWA estimates the financial burden in providing a weighing
would be in creating the weight record, copying would generally be done
through the use of carbon or carbonless paper, attaching a copy to the
bill of lading and order for service, and filing and storing the weight
ticket with the bill of lading and order for service.
    The FHWA estimates one copy for each weight ticket would be made
(1,080,000 copies), and 2,160,000 copies filed and stored. The FHWA
assumes the records would be active rather than inactive.
    Thus, the FHWA calculates the organizational unit cost analysis to
record weight tickets using the

[[Page 27136]]

following four calculations: 1,080,000 times $1.145 for creating one
record equals $1,236,600. 1,080,000 times $1.076 for duplicating one
record equals $1,162,080. 2,160,000 times $0.118 for filing one record
equals $254,880. 2,160,000 times $0.0228 for storing one record equals
$49,248. The total is $2,702,808.

Notifications of Reasonable Dispatch Service Delays

    At the time of notification of delay, a carrier must advise the
individual shipper of the alternative dates or periods of time the
carrier may be able to pickup and/or deliver the shipment. The needs of
the individual shipper must always be considered in this advisement.
Additional requirements include the following six information items:
    1. If the notification of delay occurs prior to the pickup of the
shipment, the carrier must amend the order for service.
    2. If the notification of delay occurs subsequent to the pickup of
the shipment, the carrier must notify the individual shipper of the
delay.
    3. The carrier must prepare a written record of the date, time and
manner of notification.
    4. The carrier must prepare a written record of the amended date or
period of time for delivery.
    5. These records must be retained by the carrier as part of its
file on the shipment. The retention period would be one year from the
date of notification.
    6. A true copy of the written delay notification noting the date,
time and manner of notification, along with a record of the amended
date or period of time for delivery must be furnished to the individual
shipper by first class mail or in person.
    The proposed retention period of one year would remain the same as
the current period. See 49 CFR 379.13, Appendix A. item I.4.(b).
    The FHWA estimates 20 percent of the 600,000 shipments transported
each year experience some sort of delay requiring notification. This
would result in 120,000 notifications. The FHWA believes 99.9 percent
of these notifications occur by telephone and take an average of 5
minutes to complete. The FHWA believes telegram and in person
notification is used rarely. The FHWA also believes 99.9 percent of the
written records provided to the individual shipper are delivered by
first class mail and not in person.
    Multiplying 120,000 notifications by an average of 5 minutes
results in 10,000 burden hours.
    The FHWA estimates the financial burden in providing a notification
of delay would be in disclosing information in a 5 minute telephone
call, creating a record of the notification, copying the record through
the use of carbon or carbonless paper, mailing a copy to the individual
shipper, and filing and storing the written notice with the bill of
lading and order for service documents.
    The FHWA estimates one copy for each notice would be made (120,000
copies), and 120,000 copies must be filed and stored. The FHWA assumes
the records would be active rather than inactive.
    Thus, the FHWA calculates the organizational unit cost analysis to
notify individual shippers about reasonable dispatch delays using the
following six calculations:

120,000 times $0.31 per minute (A.T.&T. long distance telephone rate
for a call from New York, NY, to Los Angeles, CA) times 5 minutes
equals $186,000.
120,000 times $1.145 for creating one record equals $137,400.
120,000 times $1.076 for duplicating one record equals $129,120.
120,000 times $0.32 for mailing by U.S. Postal Service first class
service to the individual shipper equals $38,400.
120,000 times $0.118 for filing one record equals $14,160.
120,000 times $0.0228 for storing one record equals $2,736. The total
is $507,816.

Complaint and Inquiry Handling

    The regulations require carriers establish and maintain a procedure
for responding to inquiries and complaints from individual shippers.
The procedure must be specified in a concise, easy to read summary of
the program and include a communications system allowing individual
shippers to communicate with the carrier's principal place of business
by telephone. The carrier must make a written record of all inquiries
and complaints received from an individual shipper by any means of
communication. The proposed retention period of one year after
settlement would remain the same as the current period. See 49 CFR
379.13, Appendix A, item F.2.(a).
    The FHWA estimates all 600,000 shipments transported each year have
some sort of inquiry made about them by an individual shipper. The FHWA
believes at least two are made by each shipper. This would result in
1,200,000 records of complaints and inquiries. The FHWA estimates each
carrier would use an average of 30 minutes to establish, document, and
distribute its complaint and inquiry handling system in a concise, easy
to read summary.
    The FHWA multiplies 1,200,000 records by an average of 5 minutes
and 600,000 records of summaries distributed by an average of 30
minutes. This results in 310,000 hours annual burden.
    The FHWA estimates the financial burden in conducting complaint and
inquiry procedures would include the following twelve information
items:
    1. Establishing the complaint and inquiry system.
    2. Creating a concise, easy to read summary record of the system.
    3. Copying the summary record 600,000 times.
    4. Filing the summary record until needed.
    5. Storing the summary record until needed.
    6. Distributing the summary record with other sales brochures as
needed (including ``Your Rights and Responsibilities When You Move''
and the arbitration procedure).
    7. Disclosing information about complaints and inquiries in a 5
minute telephone call.
    8. Creating a record of the notification.
    9. Copying the record through the use of carbon or carbonless
paper.
    10. Mailing a copy to the individual shipper (by regular mail).
    11. Filing the written notice.
    12. Storing the written notice with the bill of lading and order
for service documents.
    The FHWA estimates one copy for each complaint or inquiry notice
would be made (120,000 copies), and 120,000 copies filed and stored.
The FHWA assumes the records would be active rather than inactive.
    Thus, the FHWA calculates the organizational unit cost analysis to
notify individual shippers about complaint and inquiry handling using
the following twelve calculations:

2,000 concise, easy to read summary records of the system times $1.145
for creating one record equals $2,000.
600,000 times $1.076 for duplicating the summary record equals
$645,600.
600,000 times $0.32 for mailing by regular service U.S. Mail to agents
and salespeople for distribution equals $192,000.
600,000 times $0.118 for filing the summary record until needed equals
$70,800.
600,000 times $0.0228 for storing the summary record until needed
equals $13,680.
600,000 times $0.118 for distributing the summary record with other
sales brochures equals $70,800.

[[Page 27137]]

120,000 times $0.31 per minute (A.T.&T. long distance telephone rate
for a call from New York, NY to Los Angeles, CA) times 5 minutes equals
$186,000.
120,000 times $1.145 for creating one record equals $137,400.
120,000 times $1.076 for duplicating one record equals $129,120.
120,000 times $0.32 for mailing by U.S. Postal Service first class
service to the individual shipper equals $38,400.
120,000 times $0.118 for filing one record equals $14,160.
120,000 times $0.0228 for storing one record equals $2,736. The total
is $1,502,696.

Use of Charge Card Plans

    The regulations allow for the use of charge card plans, but do not
require information collection requirements as a part of the
regulation.

Agreements With Agents

    The regulations require motor carriers have written agreements with
their prime agents. The AMSA's information shows 1,151 motor carriers
do not affiliate with any van line, while 1,167 carriers are affiliated
with one of 17 van lines. These 1,167 carriers are probably prime
agents. The prime agents must have written agreements with their motor
carrier principal.
    The FHWA estimates all 1,167 carriers have one written agreement
with another motor carrier. This would result in 1,167 records of
written agreements. The FHWA multiplies 1,167 records by an average of
30 minutes. This results in 584 annual burden hours.
    The FHWA estimates the financial burden in executing a written
agreement with prime agents would be in discussing the information with
a potential agent, creating a record of the agreement, and filing and
storing of the written agreement. The FHWA assumes the records would be
active rather than inactive.
    Thus, the FHWA calculates the organizational unit cost analysis to
execute written agreements with prime agents using the following three
calculations:

1,167 times $1.145 for creating one record equals $1,337.
1,167 times $0.118 for filing one record equals $138.
1,167 times $0.0228 for storing one record equals $27.
The total is $1,502.

Notification of Storage-in-Transit Liability Assignments

    Motor carriers who are holding goods for storage-in-transit and
this period of storage is about to expire must notify the individual
shipper in writing about the following four information items:
    1. The date of conversion to permanent storage.
    2. The existence of a nine-month period subsequent to the date of
conversion to permanent storage when the individual shipper may file
claims against the carrier for loss or damage occurring to the goods in
transit or during the storage-in-transit period.
    3. The fact the carrier's liability will end.
    4. The fact the individual shipper's property will be subject to
the rules, regulations, and charges of the warehouseman.
    The motor carrier must make this notification at least 10 days
prior to the expiration date of one of the following two conditions.
    (1) The specified period of time when the goods are to be held in
storage.
    (2) The maximum period of time provided in its tariff for storage-
in-transit.
    The motor carrier must notify the individual shipper by certified
mail, return receipt requested. If the motor carrier is holding
household goods in storage-in-transit for a period of time less than 10
days, within one day prior to the expiration date of the specified time
when the goods are to be held in such storage, the carrier must give
notification to the individual shipper.
    The carrier must maintain a record of notifications as part of the
records of the shipment.
    The FHWA assumes 10 percent of the 600,000 shipments result in
storage-in-transit situations where the time period expires. This would
result in 60,000 records of notifications.
    The FHWA multiplies 60,000 records by an estimated average of 30
minutes. This results in 30,000 annual burden hours.
    The FHWA estimates the financial burden in notifying an individual
shipper about the storage-in-transit expiration date and conditions
would be creating a record, copying the record, mailing the original by
certified (return receipt requested) service, filing the record, and
storing the active record.
    The FHWA estimates the original agreement would be made and mailed
to the individual shipper. The carrier would file and store the copy.
The FHWA assumes the records would be active rather than inactive.
    Thus, the FHWA calculates the organizational unit cost analysis to
notify shippers regarding the expiration of storage-in-transit using
the following four calculations:

60,000 times $1.145 for creating one record equals $68,700.
60,000 times $2.52 for postage (certified, return receipt requested
U.S. Postal Service) for one record equals $151,200.
60,000 times $0.118 for filing one record equals $7,080.
60,000 times $0.0228 for storing one record equals $1,368.
The total is $228,348.

Arbitration Results Report

    Every motor carrier must have an arbitration program by statute.
Each motor carrier must include in its annual arbitration report the
following nine information items:
    1. The total number of shipments transported.
    2. The total number of claims in excess of $1000.
    3. The total number of claims of $1000 or less.
    4. The number of requests for arbitration on claims of $1000 or
less.
    5. The results of those arbitrations (claim amounts and
disposition).
    6. The number of requests for arbitration on claims in excess of
$1000.
    7. The number of requests for arbitration on claims in excess of
$1000 accepted by the carrier.
    8. The results of the arbitrations the carrier accepted and
reported under item 7 of this list, providing the claim amount and
disposition.
    9. An oath, completed by the carrier and signed by a company
officer.
    The FHWA requires all 600,000 orders for service include a concise,
easy to read summary of the arbitration procedures. This would result
in 600,000 records being distributed. In addition, the FHWA would
require all motor carriers file annually a prepared summary of the
previous year's results of their arbitration programs.
    The FHWA estimates each carrier would use an average of 2 hours to
establish, document, and distribute its arbitration program in a
concise, easy to read summary.
    The FHWA multiplies 2,000 motor carriers by an average of 2 hours
to establish, document, copy, and distribute 600,000 records of
summaries. This results in 4,000 annual burden hours.
    The FHWA estimates the financial burden in establishing an
arbitration program and filing the results of the program annually
would include the following nineteen information items:
    1. Establishing the arbitration program.
    2. Creating a concise, easy to read summary record of the program.
    3. Copying the summary record 600,000 times.

[[Page 27138]]

    4. Filing the summary record until needed.
    5. Storing the summary record until needed.
    6. Distributing the summary record with other sales brochures as
needed (including ``Your Rights and Responsibilities When You Move''
and the compliant and inquiry handling system).
    7. Creating a record of each arbitration result.
    8. Filing the record of the arbitration result.
    9. Storing the active record of the arbitration result.
    10. Requesting the active records of all arbitration results be
sent to the annual record preparer's location.
    11. Reviewing and compiling the records of all arbitration results.
    12. Reviewing the regulations for the items to be reported.
    13. Creating an annual record of the results of the program.
    14. Copying the annual record for the carrier's files.
    15. Mailing the annual record to Washington, DC.
    16. Filing the copy of the annual record.
    17. Storing the copy of the annual record.
    18. Re-filing each record of arbitration results.
    19. Storing each record of arbitration results.
    The FHWA assumes 10 percent of household goods shippers would seek
arbitration each year. This would result in 60,000 arbitrations being
made each year. The FHWA assumes the records would be active rather
than inactive.
    Thus, the FHWA calculates the organizational unit cost analysis to
provide arbitration program summaries and preparation of a filed
arbitration report using the following sixteen calculations:

2,000 concise, easy to read summary records of the system times $1.145
for creating one record equals $2,290.
600,000 times $1.076 for duplicating the summary record equals
$645,600.
600,000 times $0.32 for mailing by regular service U.S. Mail to agents
and salespeople for distribution equals $192,000.
600,000 times $0.118 for filing the summary record until needed equals
$70,800.
600,000 times $0.0228 for storing the summary record until needed
equals $13,680.
600,000 times $0.118 for distributing the summary record with other
sales brochures equals $70,800.
60,000 times $1.145 for creating one record of the arbitration result
equals $68,700.
60,000 times $0.118 for filing one record equals $7,080.
60,000 times $0.0228 for storing one record equals $1,368.
60,000 times $1.789 for retrieving active records of all arbitration
results be sent to the annual record preparer's location equals
$107,340.
2,000 times $1.145 for creating an annual record of the results of the
program equals $2,290.
2,000 times $1.076 for copying the annual record for the carrier's
files equals $2,152.
2,000 times $0.32 for posting the annual record to Washington, DC by
U.S. Postal Service equals $640.
2,000 times $0.118 for filing the copy of the annual record equals
$236.
2,000 times $0.0228 for storing the copy of the annual record equals
$46.
60,000 times $2.095 for re-filing each record of arbitration results
equals $125,700.
The total is $1,310,722.

New Information Collection Request Summary

    Title: Transportation of Household Goods; Consumer Protection
Regulations.
    Background: The Secretary of Transportation may promulgate
``reasonable regulations, including regulations protecting individual
shippers * * *'' 49 U.S.C. 14104. The FHWA's regulations require motor
common carriers of household goods to generate, maintain, retain,
disclose, and provide information to the FHWA or for the motor carriers
to provide to third parties (individual shippers). The FHWA would
continue most of these regulations. The FHWA would propose no
requirement for specific forms. The FHWA regulations would also allow
motor carriers to provide electronic documents. The FHWA estimates
providing the information electronically may not be useful. It would,
however, allow such disclosures provided the consumer has a system to
read the electronic information readily. The FHWA believes the use of
such electronic information is uncommon and is not likely to grow
significantly based upon the current proposed regulations.
    The FHWA believes these requirements are necessary for motor common
carriers to properly protect the rights and responsibilities of
individual shippers. The FHWA believes these requirements are not
unnecessarily duplicative of information otherwise reasonably
accessible to an individual shipper. The FHWA believes most individual
shippers would not know about the FHWA or its regulations published in
Title 49, Code of Federal Regulations.
    Respondents: Approximately 2,000 motor carriers who provide
transportation of household goods in interstate commerce.
    Average Burden per Year: 3,466,602 total hours divided by 2,000
motor carriers equals 1,734 hours annually.
    Collection of Information Frequency: Upon set-up of a household
goods motor carrier business, each time an individual shipper of
household goods contemplates ordering service from a motor carrier,
each time an individual shipper of household goods makes inquiries or
complaints, each time a household goods shipment delay occurs, upon
settlement of charges due, and annually for a report.
    The FHWA will send a new burden estimate for this collection of
information requirement to the Office of Management and Budget. This
document serves as the FHWA's 60-day notice under 5 CFR 1320.8(d)(1).
    The FHWA requests your comments regarding the accuracy of each
estimate. If you believe an estimate is accurate, please tell us the
reason why you believe it is accurate. If you believe the FHWA has
miscalculated the burdens of time or financial burden, please tell us
the reason why you believe it is inaccurate and provide us with better
information to accurately estimate the burdens. The FHWA also requests
your comments on the need for the collection of information
requirements proposed in this NPRM, and on ways the FHWA may reduce the
information collection burden while protecting consumers.

National Environmental Policy Act

    The agency has analyzed this action for the purpose of the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and has
determined this action will not have any effect on the quality of the
environment.

Regulation Identification Number

    A regulation identification number (RIN) is assigned to each
regulatory action listed in the Unified Agenda of Federal Regulations.
The Regulatory Information Service Center publishes the Unified Agenda
in April and October of each year. The RIN contained in the heading of
this document can be used to cross reference this action with the
Unified Agenda.

List of Subjects in 49 CFR Part 375

    Advertising, Arbitration, Consumer protection, Freight, Highways
and roads, Insurance, Motor carriers, Moving of household goods,
Reporting and recordkeeping requirements.

[[Page 27139]]

List of Subjects in 49 CFR Part 377

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

    Issued on: May 5, 1998.
Kenneth R. Wykle,
Administrator, Federal Highway Administration.

    For the reasons set out in the preamble, the FHWA proposes to amend
49 CFR Chapter III as set forth below:
    1. Part 375 is revised to read as follows:

PART 375--TRANSPORTATION OF HOUSEHOLD GOODS IN INTERSTATE COMMERCE;
CONSUMER PROTECTION REGULATIONS

Subpart A--General Requirements

Sec.
375.101  Who must follow these regulations?
375.103  What are the definitions of terms used in this part?

Subpart B--Before Offering Services to My Customers

Liability Considerations

Sec.
375.201  What is my normal liability for loss and damage when I
accept goods from an individual shipper?
375.203  What actions of an individual shipper may limit or reduce
my normal liability?

General Responsibilities

Sec.
375.205  May I have agents?
375.207  What items must be in my advertisements?
375.209  How must I handle complaints and inquiries?
375.211  Must I have an arbitration program?
375.213  What information must I provide to a prospective individual
shipper?

Collecting Transportation Charges

Sec.
375.215  How must I collect charges?
375.217  May I collect charges upon delivery?
375.219  May I extend credit to shippers?
375.221  May I use a charge card plan for payments?

Subpart C--Service Options Provided

Sec.
375.301  What service options may I provide?
375.303  If I sell excess liability insurance coverage, what must I
do?

Subpart D--Estimating Charges

Sec.
375.401  Must I estimate charges?
375.403  How must I provide a binding estimate?
375.405  How must I provide a non-binding estimate?
375.407  Under what circumstances must I relinquish possession of a
collect-on-delivery shipment transported under a non-binding
estimate?

Subpart E--Pick up of Shipments of Household Goods

Before Loading

Sec.
375.501  Must I write up an order for service?
375.503  Must I write up a bill of lading?

Weighing the Shipment

Sec.
375.505  Must I determine the weight of a shipment?
375.507  What is a certified scale?
375.509  How must I determine the weight of a shipment?
375.511  May I use an alternative method for shipments weighing 454
kilograms or less?
375.513  Must I give the individual shipper an opportunity to
observe the weighing?
375.515  May an individual shipper waive his/her right to observe
each weighing?
375.517  May an individual shipper demand re-weighing?
375.519  Must I obtain weight tickets?
375.521  What must I do if an individual shipper wants to know the
actual weight or charges for a shipment before I tender delivery?

Subpart F--Transportation of Shipments

Sec.
375.601  Must I transport the shipment in a timely manner?
375.603  When must I tender a shipment for delivery?
375.605  How must I notify an individual shipper of any service
delays?
375.607  What must I do if I am able to tender a shipment for final
delivery more than 24 hours before a specified date or period of
time?
375.609  What must I do for shippers who store household goods in
transit?

Subpart G--Delivery of Shipments

Sec.
375.701  May I provide for a release of liability on my delivery
receipt?
375.703  What is the maximum collect-on-delivery amount I may demand
at the time of delivery?
375.705  If a shipment is transported on more than one vehicle, what
charges may I collect at delivery?
375.707  If a shipment is partially lost or destroyed, what charges
may I collect at delivery?
375.709  If a shipment is totally lost or destroyed, what charges
may I collect at delivery?

Subpart H--Collection of Charges

Sec.
375.801  What types of charges apply to subpart H?
375.803  How must I present my freight or expense bill?
375.805  If I am forced to relinquish a collect-on-delivery shipment
before the payment of ALL charges, how do I collect the balance?
375.807  What actions may I take to collect the charges upon my
freight bill?

Subpart I--Filing Annual Arbitration Reports

Sec.
375.901  What is an annual arbitration report?
375.903  Who must file an annual arbitration report?
375.905  Where and when do I file an annual arbitration report?
375.907  How must I prepare and submit an annual arbitration report?

Subpart J--Penalties

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

Appendix A--Your Rights and Responsibilities When You Move

    Authority: 5 U.S.C. 553; 49 U.S.C. 13301 and 14104; and 49 CFR
1.48.

Subpart A--General Requirements

Sec. 375.101  Who must follow these regulations?

    You, a motor common carrier engaged in the transportation of
household goods, must follow the regulations in this part when offering
your services to individual shippers. You are subject to this part only
when you transport household goods for individual shippers by motor
vehicle in interstate commerce.

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

    (a) Terms used in this part:
    Advertisement means any communication to the public in connection
with an offer or sale of any interstate transportation service. This
includes written or electronic database listings of your name, address,
and telephone number in an on-line database. This excludes
advertisements over airwaves, including radio and television, and
listings of your name, address, and telephone number in a telephone
directory or similar publication.
    Cashier's check means a check that has all four of the following
characteristics:
    (1) Drawn on a bank as defined in 12 CFR 229.2.
    (2) Signed by an officer or employee of the bank on behalf of the
bank as drawer.
    (3) A direct obligation of the bank.
    (4) Provided to a customer of the bank or acquired from the bank
for remittance purposes.
    Household goods, as used in connection with transportation, means

[[Page 27140]]

the personal effects or property used, or to be used, in a dwelling.
The personal effects and property must be a part of the equipment or
supplies of such a dwelling or similar property.
    Individual shipper or householder means any person who is the
consignor or consignee of a household goods shipment and you identify
him or her as such in the bill of lading contract. The individual
shipper owns the goods being transported.
    May means an option. You may do something, but it is not a
requirement.
    Must means a legal obligation. You must do something.
    Order for service means a document authorizing you to transport an
individual shipper's household goods.
    Reasonable dispatch means the performance of transportation on the
dates, or during the period of time, agreed upon by you and the
individual shipper and shown on the Order For Service/Bill of Lading.
For example, if you deliberately withhold any shipment from delivery
after an individual shipper offers to pay the binding estimate or 110
percent of a non-binding estimate, you have not transported the goods
with reasonable dispatch. The term ``reasonable dispatch'' excludes
transportation provided under your tariff provisions requiring
guaranteed service dates. You will have the defenses of force majeure,
i.e., superior or irresistible force, as construed by the courts.
``Force majeure'' in this context, means a defense protecting the
parties in the event that a part of the contract cannot be performed
due to causes which are outside the control of the parties and could
not be avoided by exercise of due care.
    Should means a recommendation. We recommend you do something, but
it is not a requirement.
    Transportation of household goods means either one of the following
two provisions:
    (1) The householder (an individual shipper) arranges and pays for
transportation of household goods. This may include transportation from
a factory or store, when the individual shipper purchases the household
goods with the intent to use the goods in his or her own dwelling.
    (2) Another party arranges and pays for the transportation of
household goods.
    We, us, and our means the Federal Highway Administration (FHWA).
    You and your means a motor common carrier engaged in the
transportation of household goods and its household goods agents.
    (b) Where may other terms used in this part be defined? You may
find other terms used in this part defined in 49 U.S.C. 13102. The
definitions in that statute control. If terms are used in this part and
the terms are neither defined here nor in 49 U.S.C. 13102, the terms
will have the ordinary practical meaning of such terms.

Subpart B--Before Offering Services to Customers

Liability Considerations

Sec. 375.201  What is my normal liability for loss and damage when I
accept goods from an individual shipper?

    (a) In general, you are legally liable for loss or damage if it
happens during performance of any one of the following three services
identified on your lawful bill of lading:
    (1) Transportation of household goods.
    (2) Storage-in-transit of household goods, including incidental
pickup or delivery service.
    (3) Servicing of an appliance or other article, if you or your
agent performs the servicing.
    (b) You are liable for loss of, or damage to, any household goods
to the extent provided in the current Surface Transportation Board's
released rates order (see RELEASED RATES OF MOTOR COMMON CARRIERS OF
HHG, 9 I.C.C. 2d 523 (1993)).
    (c) You may have additional liability if you sell excess liability
insurance.

Sec. 375.203  What actions of an individual shipper may limit or reduce
my normal liability?

    (a) If an individual shipper includes perishable household goods
without your knowledge, you need not assume liability for these items.
    (b) If an individual shipper agrees to ship household goods
released at a value greater than $1.32 per kilogram (60 cents per
pound) per article, your liability for loss and damage may be limited
to $220 per kilogram ($100 per pound) per article if the individual
shipper fails to notify you in writing of articles valued at more than
$220 per kilogram ($100 per pound).
    (c) If an individual shipper notifies you in writing that an
article valued at greater than $220 per kilogram ($100 per pound) will
be included in the shipment, the shipper will be entitled to full
recovery up to the declared value of the article or articles, not to
exceed the declared value of the entire shipment.

General Responsibilities

Sec. 375.205  May I have agents?

    (a) You may have agents provided you comply with paragraphs (b) and
(c) of this section. A household goods agent is defined as either one
of the following two types of agents:
    (1) A prime agent provides a transportation service for you or on
your behalf, including the selling of, or arranging for, a
transportation service. You permit or require the agent to provide
services under the terms of an agreement or arrangement with you. A
prime agent does not provide services on an emergency or temporary
basis. A prime agent does not include a household goods broker or
freight forwarder.
    (2) An emergency or temporary agent provides origin or destination
services on your behalf, excluding the selling of, or arranging for, a
transportation service. You permit or require the agent to provide such
services under the terms of an agreement or arrangement with you. The
agent performs such services only on an emergency or temporary basis.
    (b) If you have agents, you must have written agreements between
you and your prime agents. You and your retained prime agent must sign
the agreements.
    (c) Copies of all your prime agent agreements must be in your files
for a period of at least 24 months following the date of termination of
each agreement.

Sec. 375.207  What items must be in my advertisements?

    (a) You and your agents must publish and use only truthful,
straightforward, and honest advertisements.
    (b) You must include, and you must require each of your agents to
include, in all advertisements for all services (including any
accessorial services incidental to or part of interstate
transportation), the following two elements:
    (1) Your name or trade name, as it appears on our document
assigning you a U.S. DOT number, or the name or trade name of the motor
carrier under whose operating authority the advertised service will
originate.
    (2) U.S. DOT number, assigned by us authorizing you to operate as a
for-hire motor carrier.
    (c) Your FHWA-assigned U.S. DOT number must be displayed only in
the following form in every advertisement: U.S. DOT No. (assigned
number).

Sec. 375.209  How must I handle complaints and inquiries?

    (a) You must establish and maintain a procedure for responding to
complaints and inquiries from your individual shippers.
    (b) Your procedure must include all four of the following items:

[[Page 27141]]

    (1) A communications system allowing individual shippers to
communicate with your principal place of business by telephone.
    (2) A telephone number.
    (3) A clear and concise statement about who must pay for complaint
and inquiry telephone calls.
    (4) A written or electronic record system for recording all
inquiries and complaints received from an individual shipper by any
means of communication.
    (c) You must produce a clear and concise written description of
your procedure for distribution to individual shippers.

Sec. 375.211  Must I have an arbitration program?

    (a) You must have an arbitration program for individual shippers.
You must establish and maintain an arbitration program with the
following eleven minimum elements:
    (1) You must design your arbitration program to prevent you from
having any special advantage in any case where the claimant resides or
does business at a place distant from your principal or other place of
business.
    (2) Before the household goods are tendered for transport, your
arbitration program must provide notice to the individual shipper of
the availability of neutral arbitration, including all three of the
following items:
    (i) A summary of the arbitration procedure.
    (ii) Any applicable costs.
    (iii) A disclosure of the legal effects of election to use
arbitration.
    (3) Upon the individual shipper's request, you must provide forms
and information necessary for initiating an action to resolve a dispute
under arbitration.
    (4) You must require each person you authorize to arbitrate to be
independent of the parties to the dispute and capable of resolving such
disputes, and you must ensure the arbitrator is authorized and able to
obtain from you or the individual shipper any material or relevant
information to carry out a fair and expeditious decision making
process.
    (5) You must not charge the individual shipper more than one-half
of the total cost for instituting the arbitration proceeding against
you. In the arbitrator's decision, the arbitrator may determine which
party must pay the cost or a portion of the cost of the arbitration
proceeding, including the cost of instituting the proceeding.
    (6) You must refrain from requiring the individual shipper to agree
to use arbitration before a dispute arises.
    (7) Arbitration must be binding for claims of $1000 or less, if the
individual shipper requests arbitration.
    (8) Arbitration must be binding for claims of more than $1000, if
the individual shipper requests arbitration and the carrier agrees to
it.
    (9) If all parties agree, the arbitrator may provide for an oral
presentation of a dispute by a party or representative of a party.
    (10) The arbitrator must render a decision within 60 days of
receipt of written notification of the dispute, and a decision by an
arbitrator may include any remedies appropriate under the
circumstances.
    (11) The arbitrator may extend the 60-day period for a reasonable
period of time if you or the individual shipper fail to provide, in a
timely manner, any information the arbitrator reasonably requires to
resolve the dispute.
    (b) You must produce and distribute a concise, easy-to-read,
accurate summary of the your arbitration program, including the items
in this section.

Sec. 375.213  What information must I provide to a prospective
individual shipper?

    (a) Before you execute an order for service for a shipment of
household goods, you must furnish to your prospective individual
shipper, all four of the following documents:
    (1) The contents of Appendix A of this part, ``Your Rights and
Responsibilities When You Move.''
    (2) A concise, easy-to-read, accurate estimate of your charges.
    (3) A concise, easy-to-read, accurate summary of the your
arbitration program.
    (4) A concise, easy to read, accurate summary of your customer
complaint and inquiry handling procedures. Included in this description
must be both of the following two items:
    (i) The main telephone number the individual shipper may use to
communicate with you.
    (ii) A clear and concise statement concerning who must pay for
telephone calls.
    (b) To comply with paragraph (a)(1) of this section, you must
produce and distribute a document with the text and general order of
appendix A to this part as it appears. The following three items also
apply:
    (1) If we, the Federal Highway Administration, choose to modify the
text or general order of appendix A, we will provide the public
appropriate notice in the Federal Register and an opportunity for
comment as required by part 389 of this subchapter before making you
change anything.
    (2) If you publish the document, you may choose the dimensions of
the publication as long as the type font size is at least 10 point or
greater and the size of the booklet is at least as large as 232 square
centimeters (36 square inches).
    (3) If you publish the document, you may choose the color and
design of the front and back covers of the publication. The following
words must appear prominently on the front cover in at least 12 point
or greater bold or full-faced type: ``YOUR RIGHTS AND RESPONSIBILITIES
WHEN YOU MOVE. OMB No. 2125-________, Expires on________ , 200______ .
Furnished By Your Mover, As Required By Federal Law.'' You may
substitute your name or trade name in place of ``Your Mover'' if you
wish (for example, Furnished by XYZ Van Lines, As Required By Federal
Law).
    (c) Paragraphs (b)(2) and (b)(3) of this section do not apply to
exact copies of appendix A published in the Federal Register or the
Code of Federal Regulations.

Collecting Transportation Charges

Sec. 375.215  How must I collect charges?

    You must issue an honest, truthful freight or expense bill in
accordance with subpart A of part 373 of this subchapter.

Sec. 375.217  May I collect charges upon delivery?

    (a) Yes. You may maintain a tariff setting forth nondiscriminatory
rules governing collect-on-delivery service and the collection of
collect-on-delivery funds.
    (b) If an individual shipper pays you at least 110 percent of the
approximate costs of a non-binding estimate on a collect-on-delivery
shipment, you must relinquish possession of the shipment at the time of
delivery. You may specify the form of payment acceptable to you.

Sec. 375.219  May I extend credit to shippers?

    You may extend credit to shippers in accordance with Sec. 375.807.

Sec. 375.221  May I use a charge card plan for payments?

    (a) You may provide in your tariffs for the acceptance of charge
cards for the payment of freight charges.
    (b) You may accept charge cards whenever shipments are transported
under agreements and tariffs requiring payment by cash, certified
check, or a cashier's check.
    (c) If you allow an individual shipper to pay for a freight or
expense bill by charge card, you are deeming such payment to be
equivalent to payment by

[[Page 27142]]

cash, certified check, or a cashier's check.
    (d) The charge card plans you participate in must be identified in
your tariff rules as items permitting the acceptance of the charge
cards.
    (e) If an individual shipper causes a charge card issuer to reverse
a charge transaction, you may consider the individual shipper's action
tantamount to forcing you to provide an involuntary extension of your
credit. In such instances, the rules in Sec. 375.807 apply.

Subpart C--Service Options Provided

Sec. 375.301  What service options may I provide?

    (a) You may design your household goods service to provide
individual shippers with a wide range of specialized service and
pricing features. Many carriers provide at least the following five
service options:
    (1) Space reservation.
    (2) Expedited service.
    (3) Exclusive use of a vehicle.
    (4) Guaranteed service on or between agreed dates.
    (5) Excess liability insurance.
    (b) If you sell excess liability insurance, you must follow the
requirements in Sec. 375.303.

Sec. 375.303  If I sell excess liability insurance coverage, what must
I do?

    (a) You, your employee, or an agent, may sell, offer to sell, or
procure excess liability insurance coverage for loss and damage to
shipments of any individual shippers only under the following two
conditions:
    (1) The individual shipper releases the shipment for transportation
at a value not exceeding $1.32 per kilogram (60 cents per pound) per
article.
    (2) The individual shipper fails to declare a valuation of $2.75 or
more per kilogram ($1.25 or more per pound) and pays, or agrees to pay,
you for assuming liability for the shipment equal to the declared
value.
    (b) You may offer, sell, or procure any kind of excess liability
insurance coverage.
    (c) You may offer, sell, or procure any type of policy covering
loss or damage in excess of the specified carrier liability.
    (d) You must issue to the individual shipper a policy or other
appropriate evidence of the insurance the individual shipper purchased.
    (e) You must provide a copy of the policy or other appropriate
evidence to the individual shipper at the time you sell or procure the
insurance.
    (f) You must issue policies written in plain English.
    (g) You must clearly specify the nature and extent of coverage
under the policy.
    (h) Your failure to issue a policy, or other appropriate evidence
of insurance purchased, to an individual shipper will subject you to
full liability for any claims to recover loss or damage attributed to
you.
    (i) You must provide in your tariff for the provision of selling,
offering to sell, or procuring excess liability insurance service. The
tariff must also provide for the base transportation charge, including
your assumption for full liability for the value of the shipment. This
would be in the event you fail to issue a policy or other appropriate
evidence of insurance to the individual shipper at the time of
purchase.

Subpart D--Estimating Charges

Sec. 375.401  Must I estimate charges?

    (a) Before you execute an order for service for a shipment of
household goods for an individual shipper, you must estimate the total
charges in writing. The written estimate must be one of the following
two types:
    (1) A binding estimate, an agreement made in advance with your
individual shipper. It guarantees the total cost of the move based upon
the quantities and services shown on your estimate.
    (2) A non-binding estimate, what you believe the total cost will be
for the move, based upon the estimated weight or volume of the shipment
and the accessorial services requested. A non-binding estimate is not
binding on you. You will base the final charges upon the actual weight
of the individual shipper's shipment and the tariff provisions in
effect.
    (b) For non-binding estimates, you should provide your best
estimate of the approximate costs the individual shipper should expect
to pay for the transportation and services of such shipments. If you
provide an inaccurately low estimate, you may be limiting the amount
you will collect at the time of delivery as provided in Sec. 375.407.
    (c) You and the individual shipper must sign the estimate of
charges. You must provide a dated copy of the estimate of charges to
the individual shipper at the time you sign the estimate.
    (d) Before loading a household goods shipment, and upon mutual
agreement of both you and the individual shipper, you may amend an
estimate of charges.

Sec. 375.403  How must I provide a binding estimate?

    (a) You may provide a guaranteed binding estimate of the total
shipment charges to the individual shipper, so long as it is provided
for in your tariff. The individual shipper must pay the amount for the
services included in your estimate. You must comply with the following
eight requirements:
    (1) You must provide a binding estimate in writing to the
individual shipper or other person responsible for payment of the
freight charges.
    (2) You must retain a copy of each binding estimate as an addendum
to the bill of lading.
    (3) You must clearly indicate upon each binding estimate's face the
estimate is binding upon you and the individual shipper. Each binding
estimate must also clearly indicate on its face the charges shown are
the charges being assessed for only those services specifically
identified in the estimate.
    (4) You must clearly describe binding estimate shipments and all
services you are providing.
    (5) If it appears an individual shipper has tendered additional
household goods or requires additional services not identified in the
binding estimate, you are not required to honor the estimate. However,
before loading the shipment, you must do one of the following three
things:
    (i) Reaffirm your binding estimate.
    (ii) Negotiate a revised written binding estimate listing the
additional household goods or services.
    (iii) Agree with the individual shipper, in writing, that both of
you will consider the original binding estimate as a non-binding
estimate subject to Sec. 375.405.
    (6) Once you load a shipment, failure to execute a new binding
estimate or a non-binding estimate signifies you have reaffirmed the
original binding estimate. You may not collect more than the amount of
the original binding estimate, except as provided in paragraph (a)(7)
of this section.
    (7) If the individual shipper adds additional services at the
destination and the services fail to appear on your estimate, you may
require full payment at the time of delivery for those services your
individual shipper added at destination.
    (8) Failure to relinquish possession of a shipment upon an
individual shipper's offer to pay the binding estimate amount
constitutes a failure to transport a shipment with ``reasonable
dispatch'' and subjects you to cargo delay claims pursuant to 49 CFR
part 370.
    (b) If you do not provide a binding estimate to an individual
shipper, you must provide a non-binding estimate to

[[Page 27143]]

the individual shipper in accordance with Sec. 375.405.
    (c) You must retain a record of all estimates of charges for at
least one year from the date you made the estimate.

Sec. 375.405  How must I provide a non-binding estimate?

    (a) If you do not provide a binding estimate to an individual
shipper in accordance with Sec. 375.403, you must provide a non-binding
estimate to the individual shipper.
    (b) If you provide a non-binding estimate to an individual shipper,
you must provide your best estimate of the approximate costs the
individual shipper should expect to pay for the transportation and
services of such shipments. You must comply with the following six
requirements:
    (1) You must provide reasonably accurate non-binding estimates
based upon the estimated weight or volume of the shipment and services
required.
    (2) You must explain to the individual shipper all final charges
calculated for shipments moved on non-binding estimates will be those
appearing in your tariffs applicable to the transportation. You must
explain to the individual shipper these final charges may exceed the
approximate costs appearing in your estimate.
    (3) You must furnish non-binding estimates without charge and in
writing to the individual shipper or other person responsible for
payment of the freight charges.
    (4) You must retain a copy of each non-binding estimate as an
addendum to the bill of lading.
    (5) You must clearly indicate on the face of a non-binding
estimate, the estimate is not binding upon you and the charges shown
are the approximate charges to be assessed for the services identified
in the estimate.
    (6) You must clearly describe on the face of a non-binding estimate
the entire shipment and all services you are providing.
    (b) If you furnish a non-binding estimate, you must enter the
estimated charges upon the order for service and upon the bill of
lading.
    (c) You must retain a record of all estimates of charges for at
least one year from the date you made the estimate.

Sec. 375.407  Under what circumstances must I relinquish possession of
a collect-on-delivery shipment transported under a non-binding
estimate?

    (a) If an individual shipper pays you at least 110 percent of the
approximate costs of a non-binding estimate on a collect-on-delivery
shipment, you must relinquish possession of the shipment at the time of
delivery. You may specify the form of payment acceptable to you.
    (b) Failure to relinquish possession of a shipment upon an
individual shipper's offer to pay 110 percent of the estimated charges
constitutes a failure to transport the shipment with ``reasonable
dispatch'' and subjects you to cargo delay claims pursuant to 49 CFR
part 370.
    (c) You must defer demand for the payment of the balance of any
remaining charges for a period of 30 days following the date of
delivery. After this 30-day period, you must demand payment of the
balance of any remaining charges. For example, if your non-binding
estimate to an individual shipper estimated total charges at delivery
should be $1,000, but your actual charges at destination are $1,500,
you must deliver the shipment upon payment of $1,100 (110 percent of
the estimated charges) and forego demanding payment. You then must
issue a freight or expense bill demanding payment of the remaining $400
after the 30-day period expires.
    (d) You must retain a record of all estimates of charges for at
least one year from the date you made the estimate.

Subpart E--Pick Up of Shipments of Household Goods

Before Loading

Sec. 375.501  Must I write up an order for service?

    (a) Before you receive a shipment of household goods you will move
for an individual shipper, you must prepare an order for service. The
order for service must contain the information described in the
following ten items:
    (1) Your name and address and the FHWA U.S. DOT number assigned to
the carrier who is responsible for performing the service.
    (2) The individual shipper's name, address and, if available, its
telephone number(s).
    (3) The name, address and telephone number of the delivering
carrier's office or agent located at or nearest to the destination of
the shipment.
    (4) A telephone number where the individual shipper/consignee may
contact you or your designated agent.
    (5) Dates and times. One of the following three entries must be on
the order for service:
    (i) The agreed pickup date and agreed delivery date of the move.
    (ii) The agreed period or periods of time of the entire move.
    (iii) If you are transporting the shipment on a guaranteed service
basis, the guaranteed dates or periods of time for pickup,
transportation, and delivery. You must enter any penalty or per diem
requirements upon the agreement under this item.
    (6) A complete description of any special or accessorial services
ordered and minimum weight or volume charges applicable to the
shipment, subject to the following two conditions.
    (i) If you provide service for individual shippers on rates based
upon the transportation of a minimum weight or volume, you must
indicate on the order for service the minimum weight-or volume-based
rates, and the minimum charges applicable to the shipment.
    (ii) If you do not indicate the minimum rates and charges, your
tariff must provide you will compute the final charges relating to such
a shipment based upon the actual weight or volume of the shipment.
    (7) Any identification or registration number you assign to the
shipment.
    (8) For non-binding estimates, your best estimate of the amount of
the charges, the method of payment of total charges, and the maximum
amount (no more than 110 percent of the non-binding estimate) you will
demand at the time of delivery to relinquish possession of the
shipment.
    (9) For binding estimates, the amount of charges you will demand
based upon the binding estimate and the terms of payment under this
estimate.
    (10) Whether the individual shipper requests notification of the
charges before delivery. The individual shipper must provide you with
the telephone number(s) or address(es) where you will transmit the
notification.
    (b) You and the individual shipper must sign the order for service.
You must provide a dated copy of the order for service to the
individual shipper at the time you sign the order.
    (c) Before loading the shipment, and upon mutual agreement of both
you and the individual shipper, you may amend an order for service.
    (d) You must retain records of an order for service for at least
one year from the date you made the order.

Sec. 375.503  Must I write up a bill of lading?

    (a) You must issue a bill of lading. The bill of lading must
contain the terms and conditions of the contract. You must furnish a
complete copy of the bill of lading to the individual shipper before
beginning to load the shipment.
    (b) On a bill of lading, you must include the following twelve
items:
    (1) Your name and address, or the name and address of the motor
carrier issuing the bill of lading.
    (2) The names and addresses of any other motor carriers, when
known, who

[[Page 27144]]

will participate in interline transportation of the shipment.
    (3) The name, address, and telephone number of your office (or the
office of your agent) where the individual shipper can contact you in
relation to the transportation of the shipment.
    (4) When you transport under a collect-on-delivery basis, the name,
address and, if furnished, the telephone number of a person to notify
about the charges, as required in Sec. 375.605.
    (5) For non-guaranteed service, the agreed date or period of time
for pickup of the shipment and the agreed date or period of time for
the delivery of the shipment. The agreed dates or periods of time for
pickup and delivery entered upon the bill of lading must conform to the
agreed dates or periods of time for pickup and delivery entered upon
the order for service or a proper amendment to the order for service.
    (6) For guaranteed service, subject to tariff provisions, the dates
for pickup and delivery and any penalty or per diem entitlements due
the individual shipper under the agreement.
    (7) The actual date of pickup.
    (8) The company or carrier identification number of the vehicle(s)
upon which you load the individual shipper's shipment.
    (9) The terms and conditions for payment of the total charges,
including notice of any minimum charges.
    (10) The maximum amount you will demand at the time of delivery to
obtain possession of the shipment, when you transport under a collect-
on-delivery basis.
    (11) The Surface Transportation Board's required released rates
valuation statement, and the charges, if any, for optional valuation
coverage (see RELEASED RATES OF MOTOR COMMON CARRIERS OF HHG, 9 I.C.C.
2d 523 (1993)).
    (12) Evidence of any insurance coverage sold to or procured for the
individual shipper from an independent insurer, including the amount of
the premium for such insurance.
    (c) A copy of the bill of lading must accompany a shipment at all
times while in your (or your agent's) possession. When you load the
shipment upon a vehicle for transportation, the bill of lading must be
in the possession of the driver responsible for the shipment.
    (d) You must retain bills of lading for at least one year from the
date you created the bill of lading.

Weighing the Shipment

Sec. 375.505  Must I determine the weight of a shipment?

    (a) When you transport household goods on a non-binding estimate
dependent upon the shipment weight, you must determine the weight of
each shipment transported before the assessment of any charges.
    (b) You must weigh the shipment upon a certified scale.

Sec. 375.507  What is a certified scale?

    A certified scale is any scale designed for weighing motor
vehicles, including trailers or semi-trailers not attached to a
tractor, and certified by an authorized scale inspection and licensing
authority (e.g., a State). A certified scale may also be a platform or
warehouse type scale properly inspected and certified.

Sec. 375.509  How must I determine the weight of a shipment?

    (a) You must weigh the shipment by using one of the following two
methods:
    (1) First method--origin weigh. You determine the difference
between the tare weight of the vehicle before loading at the origin of
the shipment and the gross weight of the same vehicle after loading the
shipment.
    (2) Second method--back weigh. You determine the difference between
the gross weight of the vehicle with the shipment loaded and the tare
weight of the same vehicle after you unload the shipment.
    (b) The following three conditions must exist for both the tare and
gross weighings:
    (1) The vehicle must have installed or loaded all pads, dollies,
hand trucks, ramps, and other equipment required in the transportation
of the shipment.
    (2) The driver and other persons must be off the vehicle at the
time of either weighing.
    (3) The fuel tanks on the vehicle must be full at the time of each
weighing, except when you use the first method--origin weigh, in
paragraph (a)(1) of this section, where the tare weighing is the first
weighing performed, you must refrain from adding fuel between the two
weighings.
    (c) You may detach the trailer of a tractor-trailer vehicle
combination from the tractor and the trailer weighed separately at each
weighing provided the length of the scale platform is adequate to
accommodate and support the entire trailer at one time.
    (d) You must use the net weight of shipments transported in
containers. You must calculate the difference between the tare weight
of the container (including all pads, blocking and bracing used in the
transportation of the shipment) and the gross weight of the container
with the shipment loaded in the container.

Sec. 375.511  May I use an alternative method for shipments weighing
454 kilograms or less?

    For shipments weighing 454 kilograms or less (1,000 pounds or
less), you may weigh the shipment upon a platform or warehouse
certified scale before loading for transportation or after unloading.

Sec. 375.513  Must I give the individual shipper an opportunity to
observe the weighing?

    You must give the individual shipper or any other person
responsible for the payment of the freight charges the right to observe
all weighings of the shipment. You must advise the individual shipper,
or any other person entitled to observe the weighings, where and when
each weighing will occur. You must give the person who will observe the
weighings a reasonable opportunity to be present to observe the
weighings.

Sec. 375.515  May an individual shipper waive his/her right to observe
each weighing?

    An individual shipper has the privilege to waive his/her right to
observe any weighing or reweighing. This does not affect any other
rights of the individual shipper under this part or otherwise.

Sec. 375.517  May an individual shipper demand reweighing?

    After you inform the individual shipper of the billing weight and
total charges and before actually beginning to unload a shipment
weighed at origin (first method under Sec. 375.509(a)(1), the
individual shipper may demand a reweigh. You must base your freight
bill charges upon the reweigh weight.

Sec. 375.519  Must I obtain weight tickets?

    (a) Yes, you must obtain weight tickets whenever we require you to
weigh the shipment in accordance with this subpart. You must obtain a
separate weight ticket for each weighing. The weigh master must sign
each weight ticket. Each weight ticket must contain the following six
items:
    (1) The complete name and location of the scale.
    (2) The date of each weighing.
    (3) The identification of the weight entries as being the tare,
gross, or net weights.
    (4) The company or carrier identification of the vehicle.
    (5) The last name of the individual shipper as it appears on the
bill of lading.

[[Page 27145]]

    (6) The carrier's shipment registration or bill of lading number.
    (b) When both weighings are performed on the same scale, one weight
ticket may be used to record both weighings.
    (c) As part of the file on the shipment, you must retain the
original weight ticket or tickets relating to the determination of the
weight of a shipment.
    (d) All freight bills you present to an individual shipper must
include true copies of all weight tickets obtained in the determination
of the shipment weight in order to collect any shipment charges
dependent upon the weight transported.

Sec. 375.521  What must I do if an individual shipper wants to know the
actual weight or charges for a shipment before I tender delivery?

    (a) You must comply with a request of an individual shipper of a
shipment being transported on a collect-on-delivery basis who
specifically requests notification of the actual weight or volume and
charges on a shipment. This requirement is conditioned upon the
individual shipper supplying you with an address or telephone number
where the individual shipper will receive the communication. You must
make your notification by telephone, telegram, or in person.
    (b) The individual shipper must receive your notification at least
one full 24-hour day before any tender of the shipment for delivery,
excluding Saturdays, Sundays and Federal holidays.
    (c) You may disregard the 24-hour notification requirement on
shipments subject to any one of the following three conditions:
    (1) Back weigh (when you weigh an individual shipper's shipment at
its destination).
    (2) Pickup and delivery encompassing two consecutive week days, if
the individual shipper agrees.
    (3) Maximum payment amounts at time of delivery of 110 percent of
the estimated charges, if the individual shipper agrees.

Subpart F--Transportation of Shipments

Sec. 375.601  Must I transport the shipment in a timely manner?

    Yes. Transportation in a timely manner is also known as
``reasonable dispatch service.'' You must provide reasonable dispatch
service to all individual shippers, except for transportation on the
basis of guaranteed pickup and delivery dates.

Sec. 375.603  When must I tender a shipment for delivery?

    You must tender a shipment for delivery for an individual shipper
on the agreed delivery date or within the period of time specified on
the bill of lading. Upon the request or concurrence of the individual
shipper, you may waive this requirement.

Sec. 375.605  How must I notify an individual shipper of any service
delays?

    (a) When you are unable to perform either the pickup or delivery of
a shipment on the dates or during the periods of time specified in the
order for service and as soon as the delay becomes apparent to you, you
must notify the individual shipper of the delay, at your expense, in
one of the following three ways:
    (1) By telephone.
    (2) By telegram.
    (3) In person.
    (b) At the time you notify the individual shipper of the delay, you
must advise the individual shipper of the dates or periods of time you
expect to be able to pickup and/or deliver the shipment. You must
consider the needs of the individual shipper in your advisement. You
also must do the following six things:
    (1) If your notification of delay occurs before the pickup of the
shipment, you must amend the order for service.
    (2) If your notification of delay occurs after you pick up the
shipment, you or your agent must notify the individual shipper of the
delay.
    (3) You must prepare a written record of the date, time, and manner
of notification.
    (4) You must prepare a written record of your amended date or
period of time for delivery.
    (5) You must retain these records as a part of your file on the
shipment. The retention period is one year from the date of
notification.
    (6) You must furnish a true copy to the individual shipper by first
class mail or in person.

Sec. 375.607  What must I do if I am able to tender a shipment for
final delivery more than 24 hours before a specified date or period of
time?

    (a) You may ask the individual shipper to accept an early delivery
date. If the individual shipper does not concur with your request or
the individual shipper does not request an early delivery date, you
may, at your discretion, place a shipment in storage under your own
account and at your own expense in a warehouse located near the
destination of the shipment. If you place the shipment in storage, you
must comply with paragraph (b) of this section. You may comply with
paragraph (c) of this section, at your discretion.
    (b) You must immediately notify the individual shipper of the name
and address of the warehouse where you place the shipment. You must
make and keep a record of your notification as a part of your shipment
records. You have responsibility for the shipment under the terms and
conditions of the bill of lading. You are responsible for the charges
for redelivery, handling, and storage until you make final delivery.
    (c) You may limit your responsibility to the agreed delivery date
or the first day of the period of time of delivery as specified in the
bill of lading.

Sec. 375.609  What must I do for shippers who store household goods in
transit?

    (a) If you are holding goods for storage-in-transit (SIT) and the
period of time is about to expire, you must comply with this section.
    (b) You must notify the individual shipper, in writing of the
following four items:
    (1) The date of conversion to permanent storage.
    (2) The existence of a nine-month period after the date of
conversion to permanent storage when the individual shipper may file
claims against you for loss or damage occurring to the goods in transit
or during the storage-in-transit period.
    (3) The fact your liability is ending.
    (4) The fact the individual shipper's property will be subject to
the rules, regulations, and charges of the warehouseman.
    (c) You must make this notification at least 10 days before the
expiration date of either one of the following two periods:
    (1) The specified period of time when the goods are to be held in
storage.
    (2) The maximum period of time provided in your tariff for storage-
in-transit.
    (d) You must notify the individual shipper by certified mail,
return receipt requested.
    (e) If you are holding household goods in storage-in-transit for a
period of time less than 10 days, within one day before the expiration
date of the specified time when the goods are to be held in such
storage, you must give notification to the individual shipper of the
information specified in paragraph (b) of this section.
    (f) You must maintain a record of notifications as part of the
records of the shipment.
    (g) Your failure or refusal to notify the individual shipper will
automatically

[[Page 27146]]

effect a continuance of your carrier liability according to the
applicable tariff provisions with respect to storage-in-transit, until
the end of the day following the date when you actually gave notice.

Subpart G--Delivery of Shipments

Sec. 375.701  May I provide for a release of liability on my delivery
receipt?

    (a) No. Your delivery receipt or shipping document must not contain
any language purporting to release or discharge you or your agents from
liability.
    (b) The delivery receipt may include a statement the property was
received in apparent good condition except as noted on the shipping
documents.

Sec. 375.703  What is the maximum collect-on-delivery amount I may
demand at the time of delivery?

    (a) On a binding estimate, the maximum amount is the exact estimate
of the charges. You may specify the form of payment acceptable to you.
    (b) On a non-binding estimate, the maximum amount is 110 percent of
the non-binding estimate of the charges. You may specify the form of
payment acceptable to you.

Sec. 375.705  If a shipment is transported on more than one vehicle,
what charges may I collect at delivery?

    (a) At your discretion, you may do one of the following three
things:
    (1) You may defer the collection of all charges until you deliver
the entire shipment.
    (2) If you have determined the charges for the entire shipment, you
may collect the portion of the shipment tendered for delivery. You must
determine a percentage of the charges represented by the portion of the
shipment tendered for delivery.
    (3) If you cannot reasonably calculate the charges for the entire
shipment, you must determine the charges for the portion of the
shipment being delivered. You must collect this amount. The total
charges you assess for the transportation of the separate portions of
the shipment must not be more than the charges due for the entire
shipment.
    (b) In the event of the loss or destruction of any part of a
shipment transported on more than one vehicle, you must collect the
charges as provided in Sec. 375.707.

Sec. 375.707  If a shipment is partially lost or destroyed, what
charges may I collect at delivery?

    (a) If a shipment is partially lost or destroyed, you may first
collect your freight charges for the entire shipment, if you choose. If
you do this, you must refund the portion of your published freight
charges corresponding to the portion of the lost or destroyed shipment
(including any charges for accessorial or terminal services), at the
time you dispose of claims for loss, damage, or injury to the articles
in the shipment under 49 CFR part 370.
    (b) To calculate the amount of charges applicable to the shipment
as delivered, you must multiply the percentage corresponding to the
delivered shipment by the total charges applicable to the shipment
tendered by the individual shipper. The following four conditions also
apply:
    (1) If the charges computed exceed the charges otherwise applicable
to the shipment as delivered, the lesser of those charges must apply.
This will apply only to the transportation of household goods and not
to charges for other services the individual shipper ordered.
    (2) You must collect any specific valuation charge due.
    (3) You may disregard paragraph (b) of this section if loss or
destruction was due to an act or omission of the individual shipper.
    (4) You must determine, at your own expense, the proportion of the
shipment not lost or destroyed in transit.
    (c) The individual shipper's rights are in addition to, and not in
lieu of, any other rights the individual shipper may have with respect
to a shipment of household goods you or your agent(s) partially lost or
destroyed in transit. This applies whether or not the individual
shipper exercises its rights provided in paragraph (a) of this section.

Sec. 375.709  If a shipment is totally lost or destroyed, what charges
may I collect at delivery?

    (a) You are forbidden from collecting, or requiring an individual
shipper to pay, any freight charges (including any charges for
accessorial or terminal services) when a household goods shipment is
totally lost or destroyed in transit. The following three conditions
also apply:
    (1) You must collect any specific valuation charge due.
    (2) You may apply paragraph (a) of this section only to the
transportation of household goods and not to charges for other services
the individual shipper ordered.
    (3) You may disregard paragraph (a) of this section if loss or
destruction was due to an act or omission of the individual shipper.
    (b) The individual shipper's rights are in addition to, and not in
lieu of, any other rights the individual shipper may have with respect
to a shipment of household goods you or your agent(s) totally lost or
destroyed in transit. This applies whether or not the individual
shipper exercises its rights provided in paragraph (a) of this section.

Subpart H--Collection of Charges

Sec. 375.801  What types of charges apply to subpart H?

    (a) This subpart applies to all shipments, except as provided in
paragraph (b) of this section.
    (b) Exception. This subpart does not apply to collect-on-delivery
shipments subject to the 110 percent rule for non-binding estimates.

Sec. 375.803  How must I present my freight or expense bill?

    You must present your freight or expense bill in accordance with
Sec. 377.205 of this subchapter.

Sec. 375.805  If I am forced to relinquish a collect-on-delivery
shipment before the payment of ALL charges, how do I collect the
balance?

    On ``collect-on-delivery'' shipments, you must present your freight
bill for all transportation charges within seven days, measured from
the date the shipment was delivered at its destination. This time
period excludes Saturdays, Sundays, and Federal holidays.

Sec. 375.807  What actions may I take to collect the charges upon my
freight bill?

    (a) You must present a freight bill within 15 days (excluding
Saturdays, Sundays, and Federal holidays) of the date of delivery of a
shipment at its destination.
    (b) The credit period must be seven days (excluding Saturdays,
Sundays, and Federal holidays).
    (c) You must provide in your tariffs the following four things:
    (1) You must automatically extend the credit period to a total of
30 calendar days for any shipper who has not paid your freight bill
within the 7-day period.
    (2) The individual shipper will be assessed a service charge by you
equal to one percent of the amount of the freight bill, subject to a
$20 minimum charge, for the extension of the credit period.
    (3) You must deny credit to any shipper who fails to pay a duly
presented freight bill within the 30-day period. You may grant credit
to the individual shipper when the individual shipper satisfies he/she
will promptly pay all future freight bills duly presented.
    (4) You must ensure all payments of freight bills are strictly in
accordance

[[Page 27147]]

with the rules and regulations of this part for the settlement of your
rates and charges.

Subpart I--Filing Annual Arbitration Reports

Sec. 375.901  What is an annual arbitration report?

    An annual arbitration report describes the results of all
arbitrations requested and concluded in the previous calendar year.

Sec. 375.903  Who must file an annual arbitration report?

    If you pickup or deliver shipments for individual shippers during
the calendar year, you must file an annual arbitration report.

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

    You must file an annual arbitration report on, or before, March 31
of each year. Send the report to the following address: Annual
Arbitration Report, Licensing and Insurance Division (HIA-30), Office
of Motor Carrier Information Analysis, Federal Highway Administration,
400 Virginia Avenue, S.W., Suite 600, Washington, D.C. 20024.

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

    You must include in the annual arbitration report the following
nine items:
    (a) The total number of shipments transported for the calendar year
covered by the report.
    (b) The total number of claims in excess of $1000.
    (c) The total number of claims of $1000 or less.
    (d) The number of requests for arbitration on claims of $1000 or
less.
    (e) The results of those arbitrations (list claim amount and
disposition).
    (f) The number of requests for arbitration on claims in excess of
$1000.
    (g) The number of requests for arbitration on claims in excess of
$1000 you accepted.
    (h) The results of the arbitrations you accepted and reported under
paragraph (g) of this section, listing the claim amount and disposition
of the arbitration you accepted.
    (i) An oath, completed by you. The oath must be signed by one of
your officers (e.g., President, Vice President, Secretary/Treasurer,
Owner, Partner). The oath must be substantially in the following form:

    Household Goods Carrier Oath (Must be Completed by a Carrier
Official)
    I, (name and title of carrier official), certify all information
supplied in this report is true, correct and complete to the best of
my knowledge. Further, I certify I am qualified and authorized to
certify the accuracy of the data. I know failing to file a complete
and truthful report with the Federal Highway Administration could
result in the assessment of civil penalties under 49 U.S.C. 14901
and criminal penalties under 18 U.S.C. 1001.

Signature ____________________

Title ____________________

Date ____________________

Subpart J--Penalties

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

    (a) The penalty provisions of 49 U.S.C. Chapter 149, Civil and
Criminal Penalties, apply to this part. These penalties do not overlap.
The penalties are restated in this section for your convenience.
    (b) You, or an officer, employee, or agent of yours, who by any
means tries to evade regulation provided under this part for carriers
or brokers, are/is liable to the United States for a civil penalty of
$200 for the first violation and at least $250 for a subsequent
violation.
    (c) When another civil penalty is not provided under this part, if
you violate a regulation or order under this part, you are liable to
the United States for a civil penalty of $500 for each violation. A
separate violation occurs each day the violation continues.
    (d) An act or omission committed by your corporation is the same as
an act or omission by your director, officer, receiver, trustee,
lessee, agent, or employee providing transportation or service. The
penalties of this part apply to violations by the corporation. The
actions and omissions of individuals acting for or employed by you are
considered to be the actions and omissions of you as well as the
individual, when the individual acts in the scope of his or her
employment.
    (e) If you, as a provider of transportation of household goods, or
a receiver or trustee of yours, fail(s) or refuse(s) to comply with any
regulation in this part relating to protection of individual shippers,
you, the receiver, or the trustee are/is liable to the United States
for a civil penalty of not less than $1,000 for each violation and for
each additional day while the violation continues.
    (f) You are liable to the United States for a civil penalty of not
less than $2,000 for each violation, and of not less than $5,000 for
each subsequent violation, if you knowingly engage in or knowingly
authorize an agent or other person to do one of the following three
things:
    (1) Falsify documents used in the transportation of household goods
which evidence the weight of a shipment.
    (2) Charge for accessorial services you failed to perform.
    (3) Charge for accessorial services for which you are not entitled
to be compensated because such services are not reasonably necessary in
the safe and adequate movement of the shipment.
    (g) You are liable to the United States for a civil penalty of not
more than $5,000, if you must make a report to us, answer a question,
or make, prepare, or preserve a record under this part, and you or an
officer, agent, or employee of yours, commit(s) one of the following
seven acts:
    (1) Does not make the report.
    (2) Does not specifically, completely, and truthfully answer the
question in 30 days from the date we require the question to be
answered.
    (3) Does not make, prepare, or preserve the record in the form and
manner prescribed.
    (4) Falsifies, destroys, mutilates, or changes the report or
record.
    (5) Files a false report or record.
    (6) Makes a false or incomplete entry in the record about a
business related fact or transaction.
    (7) Makes, prepares, or preserves a record in violation of our
regulations or orders.
    (h) In determining and negotiating the amount of a civil penalty
under paragraphs (e) and (g) of this section concerning transportation
of household goods, we must take into account the following seven
things:
    (1) The degree of your culpability.
    (2) Your prior conduct.
    (3) The degree of harm you caused an individual shipper or
shippers.
    (4) Your ability to pay.
    (5) The effect on your ability to do business.
    (6) Whether you have adequately compensated the individual shipper
before we began our proceeding.
    (7) Other matters as fairness may require.

Appendix A--Your Rights and Responsibilities When You Move

    You must furnish this document to prospective individual
shippers as required by 49 CFR 375.213, or the text as it appears in
this appendix may be reprinted in a form and manner chosen by you,
the motor common carrier of household goods. You do not have to
italicize titles of sections.

YOUR RIGHTS AND RESPONSIBILITIES WHEN YOU MOVE

OMB No. 2125--____, Expires on ____, 200 ____.

Furnished By Your Mover, As Required By Federal Law.

[[Page 27148]]

    Authority: 49 U.S.C. 13501 et seq., 13704, 14104; and sec. 204,
Pub. L. 104-88, 109 Stat. 803.

Why Was I Given This Pamphlet?

    The Federal Highway Administration's (FHWA) regulations protect
consumers on interstate moves and define the rights and
responsibilities of consumers and household goods carriers.
    The household goods carrier (mover) gives you this booklet to
provide information about your rights and responsibilities as an
individual shipper of household goods. You should talk to your mover
if you have further questions. The mover will also furnish you with
another booklet describing its procedure for handling your questions
and complaints. The booklet will include a telephone number you can
call to obtain additional information about your move.

What Is Included in This Pamphlet?

    In this pamphlet, you will find a discussion of each of these
topics.

Subpart A--General Requirements

    Who must follow the regulations?
    What definitions are used in this pamphlet?

Subpart B--Before Requesting Services From any Mover

    What is my mover's normal liability for loss and damage when my
mover accepts goods from me?
    What actions by me limit or reduce my mover's normal liability?
    May my mover have agents?
    What items must be in my mover's advertisements?
    How must my mover handle complaints and inquiries?
    Do I have the right to inspect my mover's tariffs (schedules of
charges) applicable to my move?
    Must my mover have an arbitration program?
    Must my mover inform me about my rights and responsibilities
under Federal law?
    What other information must my mover provide to me?
    How must my mover collect charges?
    May my mover collect charges upon delivery?
    May my mover extend credit to me?
    May my mover accept charge cards for my payments?

Subpart C--Service Options Provided

    What service options may my mover provide?
    If my mover sells excess liability insurance coverage, what must
my mover do?

Subpart D--Estimating Charges

    Must my mover estimate the transportation and accessorial
charges for my move?
    How must my mover estimate charges under the regulations?
    What payment arrangements must my mover have in place to secure
delivery of my household goods shipment?

Subpart E--Pickup of My Shipment of Household Goods

    Must my mover write up an order for service?
    Should I or my mover write up an inventory of the shipment?
    Must my mover write up a bill of lading?
    Should I reach an agreement with my mover about pickup and
delivery times?
    Must my mover determine the weight of my shipment?
    How must my mover determine the weight of my shipment?

Subpart F--Transportation of My Shipment

    Must my mover transport the shipment in a timely manner?
    What must my mover do if it is able to deliver my shipment more
than 24 hours before I am able to accept delivery?
    What must my mover do for me when I store household goods in
transit?
    What must my mover do if I want to know the actual weight or
charges for my shipment before delivery?

Subpart G--Delivery of My Shipment

    May my mover ask me to sign a delivery receipt purporting to
release it from liability?
    What is the maximum collect-on-delivery amount my mover may
demand I pay at the time of delivery?
    If my shipment is transported on more than one vehicle, what
charges may my mover collect at delivery?
    If my shipment is partially or totally lost or destroyed, what
charges may my mover collect at delivery?
    How must my mover calculate the charges applicable to the
shipment as delivered?

Subpart H--Collection of Charges

    Does this subpart apply to all shipments?
    How must my mover present its freight or expense bill to me?
    If I requested my mover to relinquish a collect-on-delivery
shipment before the payment of ALL charges, how must my mover
collect the balance?
    What actions may my mover take to collect from me the charges
upon its freight bill?
    Do I have a right to file a claim to recover money for property
my mover lost or damaged?

Subpart I--Reports My Mover Files With the FHWA

    What is an annual arbitration report?
    Who must file an annual arbitration report?
    Where and when does my mover file an annual arbitration report?
    What is included in my mover's annual arbitration report?
    How may I get a copy of my mover's annual arbitration report?

Subpart J--Resolving Disputes With My Mover

    What may I do to resolve disputes with my mover?

Subpart K--What Else Should I Know?

    What if I have more questions?
    What are the most important points I should remember from this
pamphlet?

Subpart A--General Requirements

Who Must Follow the Regulations?

    The regulations inform motor common carriers engaged in the
transportation of household goods (movers) what standards the movers
must follow when offering services to you. You are not directly
subject to the regulations. Your mover may be required to force you
to pay on time, though. The regulations only apply to your mover
when the mover transports your household goods by motor vehicle in
interstate commerce.

What Definitions Are Used in This Pamphlet?

    Accessorial (Additional) Services--These are services such as
packing, appliance servicing, unpacking, or piano stair carries you
request to be performed (or are necessary because of landlord
requirements or other special circumstances). Charges for these
services are in addition to the transportation charges.
    Advanced Charges--These are charges for services not performed
by the mover, but by someone else. A professional, craftsman, or
other third party may perform these services at your request. The
mover pays for these services and adds the charges to your bill of
lading charges.
    Advertisement--This is any communication to the public in
connection with an offer or sale of any interstate transportation
service. This will include written or electronic database listings
of your mover's name, address, and telephone number in an on-line
database.
    Agent--A local moving company authorized to act on behalf of a
larger, national company.
    Appliance Service--The preparation of major electrical
appliances to make them safe for shipment.
    Bill of Lading--The receipt for your goods and the contract for
its transportation.
    Carrier--The mover transporting your household goods.
    Certified Scale--Any scale designed for weighing motor vehicles,
including trailers or semi-trailers not attached to a tractor, and
certified by an authorized scale inspection and licensing authority.
A certified scale may also be a platform or warehouse type scale
properly inspected and certified. An on-board trailer scale is not a
certified scale.
    C.O.D. (Cash on Delivery)--This means payment is required at the
time of delivery at the destination residence (or warehouse) for
transportation for you, as an individual shipper.
    Estimate, Binding--This is an agreement made in advance with
your mover. It guarantees the total cost of the move based upon the
quantities and services shown on the estimate.
    Estimate, Non-Binding--This is what the carrier believes the
cost will be based upon the estimated weight of the shipment and the
accessorial services requested. A non-binding estimate is not
binding on the mover. The final charges will be based upon the
actual weight of your shipment and the tariff provisions in effect.
    Expedited Service--This is an agreement with the mover to
perform transportation by a set date in exchange for charges based
upon a higher minimum weight.
    Flight Charge--An extra charge for carrying items up or down
flights of stairs.
    Guaranteed Pickup and Delivery Service--An additional level of
service featuring

[[Page 27149]]

guaranteed dates of service. Your mover will provide reimbursement
to you for delays. This premium service is often subject to minimum
weight requirements.
    High Value Article--These are items included in a shipment
valued at more than $220 per kilogram ($100 per pound).
    Household goods as used in connection with transportation, means
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.
    Household Goods Agents--There are two types of household goods
agents.
    (1) A prime agent provides a transportation service for your
mover or on its behalf, including the selling of, or arranging for,
a transportation service. Your mover permits or requires the agent
to provide services under the terms of an agreement or arrangement
with them. A prime agent does not provide services on an emergency
or temporary basis.
    (2) An emergency or temporary agent provides origin or
destination services on your mover's behalf, excluding the selling
of, or arranging for, a transportation service. Your mover permits
or requires the agent to provide such services under the terms of an
agreement or arrangement with them. The agent performs such services
only on an emergency or temporary basis.
    Inventory--The detailed descriptive list of your household goods
showing the number and condition of each item.
    Linehaul Charges--The charges of the vehicle transportation
portion of your move. These charges apply in addition to the
accessorial service charges.
    Long Carry--An added charge for carrying articles excessive
distances between the mover's vehicle and your residence.
    May--An option. You or your mover may do something, but it is
not a requirement.
    Mover--A motor common carrier engaged in the transportation of
household goods and its household goods agents.
    Must--A legal obligation. You or your mover must do something.
    Order for Service--The document authorizing the mover to
transport your household goods.
    Order (Bill of Lading) Number--The number used to identify and
track your shipment.
    Peak Season Rates--Higher linehaul charges applicable during the
summer months.
    Pickup and Delivery Charges--Separate transportation charges
applicable for transporting your shipment between the storage-in-
transit warehouse and your residence.
    Reasonable Dispatch--The performance of transportation on the
dates, or during the period of time, agreed upon by you and your
mover and shown on the Order For Service/Bill of Lading. For
example, if your mover deliberately withholds any shipment from
delivery after you offer to pay the binding estimate or 110 percent
of a non-binding estimate, your mover has not transported the goods
with reasonable dispatch. The term ``reasonable dispatch'' excludes
transportation provided under your mover's tariff provisions
requiring guaranteed service dates. Your mover 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--A recommendation. We recommend you or your mover do
something, but it is not a requirement.
    Shuttle Service--The use of a smaller vehicle to provide service
to residences not accessible to the mover's normal linehaul
vehicles.
    Storage-In-Transit (SIT)--The temporary warehouse storage of
your shipment pending further transportation. For example, you may
incur these charges if your new home is not quite ready to occupy.
You must specifically request SIT service. This may not exceed a
total of 180 days of storage. You will be responsible for the added
charges for SIT service, as well as the warehouse handling and final
delivery charges.
    Tariff--A schedule of rates or charges.
    Transportation of Household Goods--This means either one of the
following two things:
    (1) You arrange and pay for transportation of household goods.
This may include transportation from a factory or store, when you
purchase the household goods with the intent to use the goods in
your own dwelling.
    (2) Another party arranges and pays for the transportation of
your household goods.
    Valuation--The degree of ``worth'' of the shipment. The
valuation charge compensates the mover for assuming a greater degree
of liability than is provided for in its base transportation
charges.
    Warehouse Handling--An additional charge applicable each time
SIT service is provided. This charge compensates the mover for the
physical placement and removal of items within the warehouse.
    We, Us, and Our--The Federal Highway Administration (FHWA).
    You and Your--You are an individual shipper of household goods.
You are a consignor or consignee of a household goods shipment and
your mover identifies you as such in the bill of lading contract.
You own the goods being transported.
    Where may other terms used in this pamphlet be defined? You may
find other terms used in this pamphlet defined in 49 U.S.C. 13102.
The definitions in this statute control. If terms are used in this
pamphlet 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 Requesting Services From Any Mover

What is my mover's normal liability for loss and damage when my
mover accepts goods from me?

    In general, your mover is legally liable for loss or damage if
it happens during performance of any of these services identified on
your mover's 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 your mover or
its agent performs the servicing.
    Your mover is liable for loss of, or damage to, any household
goods to the extent provided in the current Surface Transportation
Board's Released Rates Order. Your mover may have additional
liability if your mover sells excess liability insurance to you.
    All moving companies are required to assume liability for the
value of the goods transported. However, there are different levels
of liability, and you should be aware of the amount of protection
provided and the charges for each option.
    Basically, most movers offer four different levels of liability
(options 1 through 4, below) under the terms of their tariffs and
pursuant to the Surface Transportation Board's Released Rates
Orders. These orders govern the moving industry.

Option 1: Released Value

    This is the most economical protection option available. This
no-additional cost option provides minimal protection. Under this
option, the mover assumes liability for no more than $1.32 cents per
kilogram (60 cents per pound), per article. Loss or damage claims
are settled based upon the kilogram (or pound) weight of the article
multiplied by $1.32 cents per kilogram (60 cents per pound). For
example, if your mover lost or destroyed a 4.54 kilogram (10 pound)
stereo component valued at $1000, your mover would be liable for no
more than $6.00. Obviously, you should think carefully before
agreeing to such an arrangement. There is no extra charge for this
minimal protection, but you must sign a specific statement on the
bill of lading agreeing to it.

Option 2: Declared Value

    Under this option, the valuation of your shipment is based upon
the total weight of the shipment times $2.75 per kilogram ($1.25 per
pound). For example, a 1,814.4 kilogram (4,000 pound) shipment would
have a maximum liability value of $5,000. Any loss or damage claim
under this option is settled based upon the depreciated value of the
lost or damaged item(s) up to the maximum liability value based upon
the weight of the entire shipment. Under this option, if you shipped
a 4.54 kilogram (10 pound) stereo component originally costing
$1000, your mover would be liable for up to $1000, based upon the
depreciated value of the item.
    Unless you specifically agree to other arrangements, the mover
must assume liability for the entire shipment based upon this
option. Also, the mover is entitled to charge you $7.00 for each
$1000 (or fraction thereof) of liability assumed for shipments
transported under this option. In the example above, the valuation
charge for a shipment valued at $5,000 would be $35.00. Under this
option, your shipment is protected based upon its depreciated value,
and the law allows your mover to charge you a fee for this extra
protection.

[[Page 27150]]

Option 3: Lump Sum Value

    Under this option, similar to Option 2, if the value of your
shipment exceeds $2.75 per kilogram ($1.25 per pound) times the
weight of the shipment, you may obtain additional liability
protection from your mover. You do this by declaring a specific
dollar value for your shipment. The amount you declare must exceed
$2.75 per kilogram ($1.25 per pound) times the weight of the
shipment. The amount of value you declare is subject to the same
valuation charge ($7.00 per $1000) as described in Option 2. For
example, if you declare your 1,814.4 kilogram (4,000 pound) shipment
is worth $10,000 (instead of the $5,000 under Option 2), the mover
will charge you $7.00 for each $1000 of declared value, or $70.00
for this increased level of liability. If you ship unusually
expensive articles, you may wish to declare this extra value. You
must make this declaration in writing on the bill of lading.

Option 4: Full Value Protection

    Many movers offer a fourth level of added-value protection,
often referred to as ``full value protection'' or ``full replacement
value.'' If you elect to purchase full value protection, when your
mover loses, damages or destroys your articles, your mover must
repair, replace with like items, or settle in cash at the current
market replacement value, regardless of the age of the lost or
damaged item. Unlike the other options, depreciation of the lost or
damaged item is not a factor in determining replacement value when
the shipment is moved under full value protection.
    The cost for full value protection is approximately $8.50 per
$1000 of declared value; however, your minimum value declared must
be equal to the weight of the shipment multiplied by $7.70 per
kilogram ($3.50 per pound). This is further subject to a minimum
declaration of $21,000. For example, if your shipment weighs 2,268
kilograms (5,000 pounds), the minimum declared value must be at
least $21,000. The exact cost for full value protection may vary by
mover and may be further subject to various deductible levels of
liability. These liability levels may reduce your cost. Ask your
mover for the details of its specific plan.
* * * * *
    Under these four options, movers are permitted to limit their
liability for loss or damage to articles of extraordinary value,
unless you specifically list these articles on the shipping
documents. An article of extraordinary value is any item whose value
exceeds $220 per kilogram ($100 per pound). Ask your mover for a
complete explanation of this limitation before your move. It is your
responsibility to study this provision carefully and to make the
necessary declaration.
    These optional levels of liability are not insurance agreements
governed by State insurance laws, but instead are authorized under
Released Rates Orders of the Surface Transportation Board of the
U.S. Department of Transportation.
    In addition to these options, some movers may also offer to
sell, or procure for you, separate liability insurance from a third-
party insurance company when you release your shipment for
transportation at the minimum released value of $1.32 per kilogram
(60 cents per pound) per article (Option 1). This is not valuation
coverage governed by Federal law, but optional insurance regulated
under State law. If you purchase this separate coverage, in the
event of loss or damage being the mover's responsibility, the mover
is liable only for an amount not exceeding $1.32 per kilogram (60
cents per pound) per article, and the balance of the loss is
recoverable from the insurance company up to the amount of insurance
purchased. The mover's representative can advise you of the
availability of such liability insurance and the cost.
    If you purchase liability insurance from or through your mover,
the mover is required to issue a policy or other written record of
the purchase and to provide you with a copy of the policy or other
document at the time of purchase. If the mover fails to comply with
this requirement, the mover becomes fully liable for any claim for
loss or damage attributed to its negligence.

What actions by me limit or reduce my mover's normal liability?

    Your actions may limit or reduce your mover's normal liability,
under the following three circumstances:
    (1) You include perishable household goods without your mover's
knowledge.
    (2) You ship household goods valued at more than $1.32 per
kilogram (60 cents per pound) per article.
    (3) You fail to notify your mover in writing of articles valued
at more than $220 per kilogram ($100 per pound).
    In such cases, you 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.

May my mover have agents?

    Yes, your mover may have agents. If your mover has agents, your
mover must have written agreements with its prime agents. Your mover
and its retained prime agent must sign their agreements. Copies of
all your mover's prime agent agreements must be in its files for a
period of at least 24 months following the date of termination of
each agreement.

What items must be in my mover's advertisements?

    Your mover must publish and use only truthful, straightforward,
and honest advertisements. Your mover must include certain
information in all advertisements for all services (including any
accessorial services incidental to or part of interstate
transportation). Your mover must require each of its agents to
include the same information in its advertisements. The information
must include the following two pieces of information about your
mover:
    (1) Name or trade name of the company or individual, under whose
U.S. DOT number the advertised service will originate.
    (2) U.S. DOT number, assigned by the FHWA authorizing your mover
to operate. Your mover must display the information as: USDOT No.
(assigned number.)

How must my mover handle complaints and inquiries?

    All movers are expected to respond promptly to complaints or
inquiries from you, its customer. Should you have a complaint or
question about your move, you should first attempt to obtain a
satisfactory response from the mover's local agent, the sales
representative who handled the arrangements for your move, or the
driver assigned to your shipment.
    If for any reason you are unable to obtain a satisfactory
response from one of these persons, you should then contact the
mover's principal office. When you make such a call, be sure to have
available your copies of all the documents relating to your move.
Particularly important is the number assigned to your shipment by
your mover.
    Interstate movers are also required to offer neutral arbitration
as a means of resolving consumer disputes. Your mover is required to
provide you with information regarding its arbitration program.
    All interstate moving companies are required to maintain a
complaint and inquiry procedure to assist their customers. At the
time you make the arrangements for your move, you should ask the
mover's representative for a description of the mover's procedure,
the telephone number to be used to contact the carrier, and whether
the mover will pay for such telephone calls. Your mover's procedure
must include the following four things:
    (1) A communications system allowing you to communicate with
your mover's 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 you by any means of
communication. Your mover must give you a clear and concise written
description of its procedure.

Do I have the right to inspect my mover's tariffs (schedules of
charges) applicable to my move?

    The Surface Transportation Board, another Federal agency,
requires your mover to advise you of your right to inspect your
mover's tariffs (its schedules of rates or charges) governing your
shipment. Mover tariffs are made a part of the contract of carriage
(bill of lading) between you and the mover. You may inspect the
tariff at the mover's facility, or, upon request, the mover will
furnish you a free copy of any tariff provision containing the
mover's rates, rules, or charges governing your shipment. The terms
of the tariff cannot be changed.
    Tariffs may include provisions limiting the mover's liability.
This would generally be described in a section on declaring value on
the bill of lading. A second tariff may set the time periods for
filing claims. This would generally be described in Section 6 on the
reverse side of a bill of lading. A third tariff may reserve your
mover's right to assess additional charges for additional services
performed. For non-binding estimates, another tariff may base
charges upon the

[[Page 27151]]

exact weight of the goods transported. Your mover may have other
tariffs, too. Please refer to your mover's tariffs for exactly what
those might be.

Must my mover have an arbitration program?

    Your mover must have an arbitration program for your use. Your
mover must establish and maintain an arbitration program with the
following eleven minimum elements:
    (1) The arbitration program offered to you must prevent your
mover from having any special advantage, because you live or work in
a place distant from the mover's principal or other place of
business.
    (2) Before your household goods are tendered for transport, your
mover's arbitration program must provide notice to you of the
availability of neutral arbitration, including the following three
things.
    (a) A summary of the arbitration procedure.
    (b) Any applicable costs.
    (c) A disclosure of the legal effects of election to use
arbitration.
    (3) Upon your request, your mover must provide forms and
information necessary for initiating an action to resolve a dispute
under arbitration.
    (4) Each person authorized to arbitrate must be independent of
the parties to the dispute and capable of resolving such disputes,
and your mover must ensure the arbitrator is authorized and able to
obtain from you or your mover any material or relevant information
to carry out a fair and expeditious decision making process.
    (5) You must not be required to pay more than one-half of the
arbitration's cost. If the arbitrator makes a determination as to
the percentage of payment of the costs for each party in the
arbitration decision, the arbitrator will maintain this right.
    (6) Your mover must refrain from requiring you to agree to use
arbitration before a dispute arises.
    (7) Arbitration is binding for claims of $1000 or less, if you
request arbitration.
    (8) Arbitration is binding for claims of more than $1000, only
if you request arbitration and your mover 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 60-day period may be extended for a reasonable period
if you or your mover fail to provide information in a timely manner.
    Your mover must produce and distribute a concise, easy-to-read,
accurate summary of its arbitration program.

Must my mover inform me about my rights and responsibilities under
Federal law?

    Yes, your mover must inform you about your rights and
responsibilities under Federal law. Your mover must produce and
distribute this document. It is the text and in the general order of
appendix A to 49 CFR Part 375.

What other information must my mover provide to me?

    Before your mover executes an order for service for a shipment
of household goods, your mover must furnish to you the following
three documents:
    (1) The contents of appendix A, ``Your Rights and
Responsibilities When You Move,'' this pamphlet.
    (2) A concise, easy-to-read, accurate summary of your mover's
arbitration program.
    (3) A concise, easy to read, accurate summary of your mover's
customer complaint and inquiry handling procedures. Included in this
summary must be the following two items:
    (a) The main telephone number you may use to communicate with
your mover.
    (b) A clear and concise statement concerning who must pay for
telephone calls.
    Your mover may, at its discretion, provide additional
information to you.

How must my mover collect charges?

    Your mover must issue you an honest, truthful freight or expense
bill for each shipment transported. Your mover's freight or expense
bill must contain the following 19 items:
    (1) Name of the consignor.
    (2) Name of the consignees.
    (3) Date of the shipment.
    (4) Origin point.
    (5) Destination points.
    (6) Number of packages.
    (7) Description of freight.
    (8) The weight of the freight, if applicable to the rating of
the freight.
    (9) The volume of the freight, if applicable to the rating of
the freight.
    (10) The measurement of the freight, if applicable to the rating
of the freight.
    (11) Exact rate(s) assessed.
    (12) Disclose the actual rates, charges, and allowances for the
transportation service, when your mover electronically presents or
transmits freight or expense bills to you.
    (13) Indicate reductions, allowances, or other adjustments may
apply when the actual rate, charge, or allowance is dependent upon
the performance of a service by a third party to the transportation
arrangement (such as, tendering a volume of freight over a stated
period of time), when your mover electronically presents or
transmits freight or expense bills to you.
    (14) Total charges due.
    (15) The nature and amount of any special service charges.
    (16) The points where special services were rendered.
    (17) Route of movement and name of each carrier participating in
the transportation.
    (18) Transfer points where shipments moved.
    (19) Address where you must pay or address of bill issuer's
principal place of business.
    Your mover must present its freight or expense bill to you
within 15 days of the date of delivery of a shipment at its
destination. The computation of time excludes Saturdays, Sundays,
and Federal holidays.
    If your mover lacks sufficient information to compute its
charges, your mover must present its freight bill for payment within
7 days of the date when sufficient information does become
available.

May my mover collect charges upon delivery?

    Yes. Your mover may set nondiscriminatory rules governing
collect-on-delivery service and the collection of collect-on-
delivery funds. If you pay your mover at least 110 percent of the
approximate costs of a non-binding estimate on a collect-on-delivery
shipment, your mover must relinquish possession of the shipment at
the time of delivery. Your mover may specify the form of payment
acceptable to it.

May my mover extend credit to me?

    Your mover may relinquish possession of freight before you pay
its tariff charges. Your mover may extend credit to you in the
amount of the tariff charges. Your mover must ensure you will pay
its tariff charges within the credit period. The credit period must
begin on the day following presentation of its freight bill to you.
Under Federal regulation, the standard credit period is 15 days,
including Saturdays, Sundays, and Federal holidays, except your
mover may establish its own standard credit period of up to 30
calendar days. Your mover may also establish a service charge for
extending credit, including a minimum service charge. Your mover's
service charge only applies when your payments are made after its
established standard credit period. For example, if your mover's
established standard credit period is less than the maximum 30-
calendar-day period, your mover may extend credit including a
service charge for the additional time up to the maximum 30-
calendar-day period. If your mover extends such credit, you may
elect to postpone payment, including the service charge until the
end of the extended credit period.
    Your mover may establish additional service charges for payments
made after the expiration of the 30-calendar-day period. If your
mover establishes additional service charges, your mover must begin
to compute service charges on the day following the last day of its
standard credit period. If your mover establishes service charges,
your mover must notify you about the following three things:
    (1) The only purpose of the service charge is to prevent you
from having free use of its funds.
    (2) The service charge encourages your prompt payment.
    (3) Your failure to pay within the credit period will require
your mover to determine whether you will comply with the Federal
credit regulations in good faith in the future before extending
credit again.

May my mover accept charge cards for my payments?

    Your mover may allow you to use a charge card for the payment of
the freight charges. Your mover may accept charge cards whenever you
ship with it under an agreement and tariff requiring payment by
cash, certified check, or a cashier's check (a check drawn by a
financial institution--bank, credit union, savings & loan, etc.--
upon itself

[[Page 27152]]

and signed by an officer of the financial institution).
    If your mover allows you to pay for a freight or expense bill by
charge card, your mover deems such a payment to be equivalent to
payment by cash, certified check, or a cashier's check. The charge
card plans your mover participates in must be identified in its
tariff rules or items permitting the acceptance of the charge cards.
    If you cause a charge card issuer to reverse a charge
transaction, your mover may consider your action tantamount to
forcing your mover to provide an involuntary extension of its
credit.

Subpart C--Service Options Provided

What service options may my mover provide?

    Your mover may provide any service options it chooses. It is
customary for movers to offer several price and service options.
    The total cost of your move may increase if you want additional
or special services. Before you agree to have your shipment moved
under a bill of lading providing special service, you should have a
clear understanding with your mover what the additional cost will
be. You should always consider whether you may find other movers who
may provide the services you require without requiring you to pay
the additional charges.
    One service option is a SPACE RESERVATION. If you agree to have
your shipment transported under a space reservation agreement, you
will pay for a minimum number of cubic feet of space in the moving
van regardless of how much space in the van your shipment actually
occupies.
    A second option is EXPEDITED SERVICE. This aids you if you must
have your shipments transported on or between specific dates when
the mover could not ordinarily agree to do so in its normal
operations.
    Another customary service option is EXCLUSIVE USE OF A VEHICLE.
If for any reason you desire or require your shipment be moved by
itself on the mover's truck or trailer, most movers will provide
such service.
    Still another service option is GUARANTEED SERVICE ON OR BETWEEN
AGREED DATES. You enter into an agreement with the mover where the
mover provides for your shipment to be picked up, transported to
destination, and delivered on specific guaranteed dates. If the
mover fails to provide the service as agreed, you are entitled to be
compensated at a predetermined amount or a daily rate (per diem)
regardless of the expense you actually might have incurred as a
result of the mover's failure to perform.
    Before requesting or agreeing to any of these price and service
options, be sure to ask the mover's representatives about the final
costs you will pay.

Transport of Shipments on Two or More Vehicles

    Although all movers try to move each shipment on one truck, it
becomes necessary, at times, to divide a shipment among two or more
trucks. This may occur if your mover has underestimated the cubic
meters of space required for your shipment and it will not all fit
on the first truck. Your mover will pick up the remainder or ``leave
behind'' on a second truck at a later time and this part of your
shipment may arrive at the destination at a later time than the
first truck. When this occurs, your transportation charges will be
determined as if the entire shipment moved on one truck.
    If it is important for you to avoid this inconvenience of a
``leave behind,'' be sure your estimate includes an accurate
calculation of the cubic meters required for your shipment. Ask your
estimator to use a ``Table of Measurements'' form in making this
calculation. Consider asking for a binding estimate. A binding
estimate is more likely to be conservative with regard to cubic
meters than a non-binding estimate. If the mover offers space
reservation service, consider purchasing this service for the
necessary amount of space plus some margin for error. In any case,
you would be prudent to ``prioritize'' your goods in advance of the
move so the driver will load the more essential items on the first
truck if some are left behind.

If my mover sells excess liability insurance coverage, what must my
mover do?

    If your mover provides the service of selling excess liability
insurance, your mover must follow certain regulations.
    Your mover, its employees, or its agents, may sell, offer to
sell, or procure excess liability insurance coverage for you for
loss and damage to your shipment, if both of the following two
things are true:
    (1) You release the shipment for transportation at a value not
exceeding $1.32 per kilogram (60 cents per pound) per article.
    (2) You fail to declare a valuation of $2.75 or more per
kilogram ($1.25 or more per pound) and pay, or agree to pay, your
mover for assuming liability for your shipment equal to the declared
value.
    Your mover may offer, sell, or procure any type of insurance
policy covering loss or damage in excess of its specified liability.
    Your mover must issue you a policy or other appropriate evidence
of the insurance you purchased. Your mover must provide a copy of
the policy or other appropriate evidence to you at the time your
mover sells or procures the insurance. Your mover must issue
policies written in plain English.
    Your mover must clearly specify the nature and extent of
coverage under the policy. Your mover's failure to issue you a
policy, or other appropriate evidence of insurance you purchased,
will subject your mover to full liability for any claims to recover
loss or damage attributed to them.
    Your mover must provide in its tariffs for the provision of
excess liability insurance coverage. The tariff must also provide
for the base transportation charge, including its assumption for
full liability for the value of the shipment. This would be in the
event your mover fails to issue you a policy or other appropriate
evidence of insurance at the time of purchase.

Subpart D--Estimating Charges

Must my mover estimate the transportation and accessorial charges
for my move?

    Your mover must provide you a written estimate of all charges,
including transportation, accessorial, and advance charges. Your
mover's ``rate quote'' is not an estimate.
    A binding estimate is an agreement made in advance with your
mover. It guarantees the total cost of the move based upon the
quantities and services shown on your mover's estimate.
    A non-binding estimate is what your mover believes the total
cost will be for the move, based upon the estimated weight of the
shipment and the accessorial services requested. A non-binding
estimate is not binding on the your mover. Your mover will base the
final charges upon the actual weight of your shipment and its tariff
provisions in effect.

How must my mover estimate charges under the regulations?

Binding Estimates

    Your mover may charge you for providing a binding estimate. The
binding estimate must clearly describe the shipment and all services
provided.
    When you receive a binding estimate, you cannot be required to
pay any more than the estimated amount. However, if you have
requested the mover provide more services than those included in the
estimate, the mover may demand full payment for those added services
at time of delivery. Such services might include destination charges
often not known at origin (i.e., long carry charges, shuttle
charges, or extra stair carry charges).
    A binding estimate must be in writing and a copy must be made
available to you before you move.
    If you agree to a binding estimate, you are responsible for
paying the charges due by cash, certified check, or a cashier's
check. The charges are due your mover at the time of delivery unless
the mover agrees, before you move, to extend credit or to accept
payment by charge card. If you are unable to pay at the time the
shipment is delivered, the mover may place your shipment in storage
at your expense until you pay the charges.
    Other requirements of binding estimates include the following
seven elements:
    (1) Your mover must retain a copy of each binding estimate as an
addendum to the bill of lading.
    (2) Your mover must clearly indicate upon each binding
estimate's face the estimate is binding upon you and your mover.
Each binding estimate must also clearly indicate on its face the
charges shown are the charges to be assessed for only those services
specifically identified in the estimate.
    (3) Your mover must clearly describe binding estimate shipments
and all services to be provided.
    (4) If your mover believes you are tendering additional
household goods or are requiring additional services not identified
in the binding estimate, your mover may not honor the binding
estimate. However, before loading your shipment, your mover must do
one of the following four things:

[[Page 27153]]

    (a) Reaffirm the binding estimate.
    (b) Negotiate a revised written binding estimate listing the
additional household goods or services.
    (c) Make a new agreement with you.
    (d) Add an addendum to the contract, in writing, stating both of
you will consider the original binding estimate as a non-binding
estimate. You should read more below. This may seriously affect how
much you may pay for the entire move.
    (5) Once your mover loads your shipment, your mover's failure to
execute a new binding estimate or a non-binding estimate signifies
it has reaffirmed the original binding estimate. Your mover may not
collect more than the amount of the original binding estimate,
except as provided in the next paragraph.
    (6) If you add additional services at the destination and the
services fail to appear on your mover's estimate, your mover may
require full payment for these additional destination services at
the time of delivery.
    (7) Failure of your mover to relinquish possession of a shipment
upon your offer to pay the binding estimate amount constitutes a
failure to transport a shipment with ``reasonable dispatch'' and
subjects your mover to cargo delay claims pursuant to 49 CFR Part
370.

Non-Binding Estimates

    The mover is not permitted to charge you for giving a non-
binding estimate.
    A non-binding estimate is not a bid or contract. It is provided
by the mover to give you a general idea of the cost of the move, but
it does not bind your mover to the estimated cost. You should expect
the final cost to be more than the estimate. The actual cost will be
in accordance with the mover's tariffs. Your mover is legally
obligated to collect the charges shown in its tariffs, regardless of
what your mover writes in its non-binding estimates. The charges
contained in its tariffs are essentially the same for the same
weight shipment moving the same distance. If you obtain differing
non-binding estimates from different movers, you will be obligated
to pay only the amount specified in your mover's tariff. Therefore,
a non-binding estimate may have no effect on the amount you will
have to pay.
    Non-binding estimates must be in writing and clearly describe
the shipment and all services provided. Any time a mover provides
such an estimate, the amount of the charges estimated must be on the
order for service and bill of lading relating to your shipment. When
you are given a non-binding estimate, do not sign or accept the
order for service or bill of lading unless the amount estimated is
entered on each form when prepared by the mover.
    When you are given a non-binding estimate, the mover cannot
require you to pay more than the amount of the estimate, plus 10
percent, at the time of delivery. You will then have at least 30
days after delivery to pay any remaining charges.
    If You Request The Mover To Provide More Services Than Those
Included in The Estimate, The Mover May Demand Full Payment for
Those Added Services at The Time of Delivery.
    Other requirements of non-binding estimates include the
following six elements:
    (1) Your mover must provide reasonably accurate non-binding
estimates based upon the estimated weight of the shipment and
services required.
    (2) Your mover must explain to you all final charges on
shipments moved upon non-binding estimates will be those appearing
in your mover's tariffs applicable to the transportation. If your
mover provides a non-binding estimate of approximate costs, your
mover is not bound by such an estimate.
    (3) Your mover must furnish non-binding estimates without charge
and in writing to you.
    (4) Your mover must retain a copy of each non-binding estimate
as an addendum to the bill of lading.
    (5) Your mover must clearly indicate on the face of a non-
binding estimate, the estimate is not binding upon your mover and
the charges shown are the approximate charges to be assessed for the
services identified in the estimate.
    (6) Your mover must clearly describe on the face of a non-
binding estimates the entire shipment and all services to be
provided.
    If your mover furnishes a non-binding estimate, your mover must
enter the estimated charges upon the order for service and upon the
bill of lading.
    Your mover must retain a record of all estimates of charges for
at least one year from the date your mover made the estimate.

What payment arrangements must my mover have in place to secure
delivery of my household goods shipment?

    You may request delivery of your shipment at any time. If you
pay your mover at least 110 percent of the approximate costs of a
non-binding estimate on a collect-on-delivery shipment, your mover
must relinquish possession of the shipment at the time of delivery.
Your mover may specify its acceptable form of payment. Your mover's
failure to relinquish possession of a shipment upon your offer to
pay 110 percent of the estimated charges constitutes its failure to
transport the shipment with ``reasonable dispatch'' and subjects
your mover to your cargo delay claims under 49 CFR Part 370.
    Your mover 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 your mover may demand payment of
the balance of any remaining charges.

Subpart E--Pick Up of my Shipment of Household Goods

Must my mover write up an order for service?

    We require your mover to prepare an order for service on every
shipment transported for you. You are entitled to a copy of the
order for service when your mover prepares it.
    The order for service is not a contract. Should you cancel or
delay your move or if you decide not to use the mover, you should
promptly cancel the order.
    If you or your mover change any agreed dates for pick up or
delivery of your shipment, or agree to any change in the non-binding
estimate, your mover may prepare a written change to the order for
service. The written change must be attached to the order for
service.
    The order for service must contain the following ten elements:
    (1) Your mover's name and address and the U.S. DOT number
assigned to your mover.
    (2) Your name, address and, if available, your telephone
number(s).
    (3) The name, address, and telephone number of the delivering
carrier's office or agent located at or nearest to the destination
of your shipment.
    (4) A telephone number where you may contact your mover or its
designated agent.
    (5) Dates and times. One of the following three dates and times:
    (a) The agreed pickup date and agreed delivery date of your
move.
    (b) The agreed period or periods of time of the entire move.
    (c) If your mover is transporting the shipment on a guaranteed
service basis, the guaranteed dates or periods of time for pickup,
transportation, and delivery. Your mover must enter any penalty or
per diem requirements upon the agreement under this item.
    (6) A complete description of any special or accessorial
services ordered and minimum weight or volume charges applicable to
the shipment.
    (7) Any identification or registration number your mover assigns
to the shipment.
    (8) For non-binding estimated charges, your mover's best
estimate of the amount of the charges, the method of payment of
total charges, and the maximum amount (110 percent of the non-
binding estimate) your mover will demand at the time of delivery for
you to obtain possession of the shipment.
    (9) For binding estimated charges, the amount of charges your
mover will demand based upon the binding estimate and the terms of
payment under the estimate.
    (10) An indication of whether you request notification of the
charges before delivery. You must provide your mover with the
telephone number(s) or address(es) where your mover will transmit
such communications.
    You and your mover must sign the order for service. Your mover
must provide a dated copy of the order for service to you at the
time your mover signs the order.
    Before loading your shipment, and upon mutual agreement of both
you and your mover, your mover may amend an order for service. Your
mover must retain records of an order for service for at least one
year from the date your mover wrote the order.

Should I or my mover write up an inventory of the shipment?

    Yes. You or your mover should prepare an inventory of your
shipment before loading. If your mover's driver fails to prepare an
inventory, you should write a detailed inventory of your shipment
listing any damage or unusual wear to any items. The purpose is to
make a record of the condition of each item.
    After completing the inventory, you should sign each page and
ask the mover's driver to sign each page. Before you sign it, it is
important you make sure the inventory lists every item in the
shipment and the entries

[[Page 27154]]

regarding the condition of each item are correct. You have the right
to note any disagreement. When your mover delivers the shipment, if
an item is missing or damaged, your ability to dispute the items
lost or damaged may depend upon your notations.
    You should retain a copy of the inventory. Your mover may keep
the original if the driver prepared it. If your mover's driver
completed an inventory, the mover will generally attach the complete
inventory to the bill of lading as an addendum to the bill of
lading.

Must my mover write up a bill of lading?

    The bill of lading is the contract between you and the mover.
The mover is required by law to prepare a bill of lading for every
shipment it transports. The information on a bill of lading is
required to be the same information shown on the order for service.
The driver who loads your shipment must give you a copy of the bill
of lading before loading your furniture and other household goods.
    IT IS YOUR RESPONSIBILITY TO READ THE BILL OF LADING BEFORE YOU
ACCEPT IT. It is your responsibility to understand the bill of
lading before you sign it. If you do not agree with something on the
bill of lading, do not sign it until you are satisfied it is
correct.
    The bill of lading requires the mover to provide the service you
have requested. You must pay the charges set forth in the bill of
lading.
    THE BILL OF LADING IS AN IMPORTANT DOCUMENT. DO NOT LOSE OR
MISPLACE YOUR COPY. Have it available until your shipment is
delivered, all charges are paid, and all claims, if any, are
settled.
    A bill of lading must include the following twelve elements:
    (1) Your mover'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 in the transportation of the shipment.
    (3) The name, address, and telephone number of the office of the
motor carrier you must contact in relation to the transportation of
the shipment.
    (4) When your mover transports your shipment under a collect-on-
delivery basis, your name, address, and telephone number where the
mover will notify you about the charges.
    (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, the dates for pickup and delivery
and any penalty or per diem entitlements due you under the
agreement.
    (7) The actual date of pickup.
    (8) The company identification number(s) of the vehicle in which
your mover loads your shipment.
    (9) The terms and conditions for payment of the total charges
including notice of any minimum charges.
    (10) The maximum amount your mover will demand from you at the
time of delivery for you to obtain possession of your shipment, when
your mover transports under a collect-on-delivery basis.
    (11) The Surface Transportation Board's required released rates
valuation statement, and the charges, if any, for optional valuation
coverage.
    (12) Evidence of any insurance coverage sold to or procured for
you from an independent insurer, including the amount of the premium
for such insurance.
    A copy of the bill of lading must accompany your shipment at all
times while in the possession of your mover or its agent(s). When
your mover loads the shipment upon a vehicle for transportation, the
bill of lading must be in the possession of the driver responsible
for the shipment. Your mover must retain bills of lading for at
least one year from the date your mover created the bill of lading.

Should I reach an agreement with my mover about pickup and delivery
times?

    You and your mover should reach an agreement for pickup and
delivery times. It is your responsibility to determine on what date,
or between what dates, you need to have the shipment picked up and
on what date, or between what dates, you require delivery. It is
your mover's responsibility to tell you if it can provide service on
or between those dates, or, if not, on what other dates it can
provide the service.
    In the process of reaching an agreement with your mover, you may
find it necessary to alter your moving and travel plans if no mover
can provide service on the specific dates you desire.
    Do not agree to have your shipment picked up or delivered ``as
soon as possible.'' The dates or periods of time you and your mover
agree upon should be definite.
    Once an agreement is reached, your mover must enter those dates
upon the order for service and upon the bill of lading.
    Once your goods are loaded, your mover is contractually bound to
provide the service described in the bill of lading. Your mover's
only defense for not providing the service on the dates called for
is the ``Defense of Force Majeure.'' This is a legal term. It means
when circumstances change, were not foreseen, and are beyond the
control of your mover, preventing your mover from performing the
service agreed to in the bill of lading, your mover is not
responsible for damages resulting from its non-performance.

Must my mover determine the weight of my shipment?

    Generally yes. If your mover transports your household goods on
a non-binding estimate under the mover's tariffs based upon weight,
your mover must determine the weight of the shipment. If your mover
provided a binding estimate and has loaded your shipment without
claiming you have added additional items or services, the weight of
the shipment will not affect the charges you will pay. If your mover
is transporting your shipment based upon the volume of the shipment
(i.e., a set number of cubic meters or yards), the weight of the
shipment will also not affect the charges you will pay.
    Your mover must determine the weight of your shipment before
requesting you pay for any charges dependent upon your shipment's
weight.
    Most movers usually have a minimum weight or volume charge for
transporting a shipment. Usually the minimum is the charge for
transporting a shipment of at least 454 kilograms (1,000 pounds).
    If your shipment appears to weigh less than the mover's minimum
weight, your mover must advise you on the order for service of the
minimum cost before agreeing to transport the shipment. Should your
mover fail to advise you of the minimum charges and your shipment is
less than the minimum weight, your mover must base your final
charges upon the actual weight instead of the minimum weight.

How must my mover determine the weight of my shipment?

    Your mover must weigh your shipment upon a certified scale.
    The weight of your shipment must be obtained by using one of two
methods.
    Origin Weighing--Your mover may weigh your shipment in the city
or area where it loads your shipment. If it elects this option, the
driver must weigh the truck before coming to your residence. This is
called the TARE WEIGHT. At the time of this first weighing, the
truck may already be partially loaded with one or more other
shipments. This will not affect the weight of your shipment. The
truck should also contain the pads, dollies, hand-trucks, ramps, and
other equipment normally used in the transportation of household
goods shipments.
    After loading, the driver will weigh the truck again to obtain
the loaded weight, called the GROSS WEIGHT. The net weight of your
shipment is then obtained by subtracting the tare weight before
loading from the gross weight.

GROSS WEIGHT - TARE WEIGHT BEFORE LOADING = NET WEIGHT

    DESTINATION WEIGHING--The mover is also permitted to determine
the weight of your shipment at the destination after it delivers
your load. The fact your mover weighs your shipment at the
destination instead of the origin will not affect the accuracy of
the weight of your shipment. THE MOST IMPORTANT DIFFERENCE IS YOUR
MOVER WILL NOT DETERMINE THE EXACT CHARGES ON YOUR SHIPMENT BEFORE
IT IS UNLOADED.
    Destination weighing is done in reverse of origin weighing.
After arriving in the city or area where you are moving, the driver
will weigh the truck. Your shipment will still be on the truck. Your
mover will determine the GROSS WEIGHT before coming to your new
residence to unload. After unloading your shipment, the driver will
again weigh the truck to obtain the TARE WEIGHT. The net weight of
your shipment will then be obtained by subtracting the tare weight
after delivery from the gross weight.

[[Page 27155]]

GROSS WEIGHT - TARE WEIGHT AFTER DELIVERY = NET WEIGHT

    At the time of both weighings, your mover's truck must have
installed or loaded all pads, dollies, hand trucks, ramps, and other
equipment required in the transportation of your shipment. The
driver and other persons must be off the vehicle at the time of both
weighings. The fuel tanks on the vehicle must be full at the time of
each weighing. In lieu of this requirement, your mover must refrain
from adding fuel between the two weighings when the tare weighing is
the first weighing performed.
    Your mover may detach the trailer of a tractor-trailer vehicle
combination from the tractor and the trailer weighed separately at
each weighing provided the length of the scale platform is adequate
to accommodate and support the entire trailer at one time.
    Your mover may use an alternative method to weigh your shipment
if it weighs 454 kilograms or less (1,000 pounds or less). The only
alternative method allowed is weighing the shipment upon a platform
or warehouse certified scale before loading your shipment for
transportation or after unloading.
    Your mover must use the net weight of shipments transported in
large containers, such as ocean or railroad containers. Your mover
will calculate the difference between the tare weight of the
container (including all pads, blocking and bracing used in the
transportation of your shipment) and the gross weight of the
container with your shipment loaded in the container.
    You have the right, and your mover must inform you of your
right, to observe all weighings of your shipment. Your mover must
advise you where and when each weighing will occur. Your mover must
give you a reasonable opportunity to be present to observe the
weighings.
    You may waive your right to observe any weighing or reweighing.
This does not affect any of your other rights you have under Federal
law.
    Your mover may request you waive your right to have a shipment
weighed upon a certified scale. Your mover may want to weigh the
shipment upon a trailer's on-board non-certified scale. You should
demand your right to have a certified scale used. The use of a non-
certified scale may cause you to pay a higher final bill for your
move, if the non-certified scale does not accurately weigh your
shipment. Remember, certified scales are inspected and approved for
accuracy by a government inspection or licensing agency. Non-
certified scales are not.
    Your mover must obtain a separate weight ticket for each
weighing. The weigh master must sign each weight ticket. Each weight
ticket must contain the following six items:
    (1) The complete name and location of the scale.
    (2) The date of each weighing.
    (3) Identification of the weight entries as being the tare,
gross, or net weights.
    (4) The company or carrier identification of the vehicle.
    (5) Your last name as it appears on the Bill of Lading.
    (6) Your mover's shipment registration or Bill of Lading number.
    Your mover must retain the original weight ticket or tickets
relating to the determination of the weight of your shipment as part
of its file on your shipment.
    When both weighings are performed on the same scale, one weight
ticket may be used to record both weighings.
    Your mover must present all freight bills with true copies of
all weight tickets. If your mover does not present its freight bill
with all weight tickets, your mover is in violation of Federal law.
    Before the driver actually begins unloading your shipment
weighed at origin and after your mover informs you of the billing
weight and total charges, you have the right to demand a reweigh of
your shipment. If you believe the weight is not accurate, you have
the right to request your mover reweigh your shipment before
unloading.
    Your mover is prohibited from charging you for the reweighing.
If the weight of your shipment at the time of the reweigh is
different from the weight determined at origin, the mover must
recompute the charges based upon the reweigh weight.
    Before requesting a reweigh, you may find it to your advantage
to estimate the weight of your shipment using the following three-
step method:
    1. Count the number of items in your shipment. Usually there
will be either 30 or 40 items listed on each page of the inventory.
For example, if there are 30 items per page and your inventory
consists of four complete pages and a fifth page with 15 items
listed, the total number of items will be 135. If an automobile is
listed on the inventory do not include this item in the count of the
total items.
    2. Subtract the weight of any automobile included in your
shipment from the total weight of the shipment. If the automobile
was not weighed separately, its weight can be found on its title or
license receipt.
    3. Divide the number of items in your shipment into the weight.
If the average weight resulting from this exercise ranges between 16
and 20 kilograms (35 and 45 pounds) per article, it is unlikely a
reweigh will prove beneficial to you and could result in you paying
higher charges.
    Experience has shown the average shipment of household goods
will weigh about 18 kilograms (40 pounds) per item. If a shipment
contains a large number of heavy items, such as cartons of books,
boxes of tools or heavier than average furniture, the average weight
per item may be 20 kilograms or more (45 pounds or more).

Subpart F--Transportation of My Shipment

Must my mover transport the shipment in a timely manner?

    Yes, your mover must transport your household goods in a timely
manner. This is also known as ``reasonable dispatch service.'' Your
mover must provide reasonable dispatch service to you, except for
transportation on the basis of guaranteed pickup and delivery dates.
    When your mover is unable to perform either the pickup or
delivery of your shipment on the dates or during the periods of time
specified in the order for service, your mover must notify you of
the delay by telephone, telegram or in person, at your mover's
expense. As soon as the delay becomes apparent to your mover, it
must give you notification it will be unable to provide the service
specified in the terms of the order for service.
    At the time of your mover's notification of delay, it must
advise you of the dates or periods of time it may be able to pickup
and/or deliver the shipment. Your mover must consider your needs in
its advisement. If its notification of delay occurs before the
pickup of the shipment, your mover must amend the order for service.
If your mover's notification of delay occurs after it picked up your
shipment, your mover or its agent must notify you of the delay.
    Your mover must prepare a written record of the date, time, and
manner of its notification. Your mover must prepare a written record
of its amended date or period of time for delivery. Your mover must
retain these records as a part of its file on your shipment. The
retention period is one year from the date of notification. Your
mover must furnish a true copy of the notification to you by first
class mail or in person.
    Your mover must tender your shipment for delivery upon the
agreed delivery date or within the period of time specified on the
bill of lading. Upon your request or concurrence, your mover may
deliver your shipment on another day.
    The establishment of a delayed pickup or delivery date does not
relieve your mover from liability for damages resulting from your
mover's failure to provide service as agreed. However, when your
mover notifies you of alternate delivery dates, it is your
responsibility to be available to accept delivery on the dates
specified. If you are not available and are not willing to accept
delivery, your mover has the right to place your shipment in storage
at your expense or hold the shipment on its truck and assess
additional charges.
    If after the pickup of your shipment, you request your mover to
change the delivery date, most movers will agree to do so providing
your request will not result in unreasonable delay to its equipment
or interfere with another customer's move. However, your mover is
under no obligation to consent to amended delivery dates. Your mover
has the right to place your shipment in storage at your expense if
you are unwilling or unable to accept delivery on the date agreed to
in the bill of lading.
    If your mover fails to pick up and deliver your shipment on the
date entered on the bill of lading and you have expenses you
otherwise would not have had, you may be able to recover those
expenses from your mover. This is what is called an inconvenience or
delay claim. Should your mover refuse to honor such a claim and you
continue to believe you are entitled to be paid damages, you may sue
the mover. The FHWA has no authority to order the mover to pay such
claims.
    While we hope your mover delivers your shipment in a timely
manner, you should consider the possibility your shipment may be
delayed and find out what payment you can expect if your mover
delays service through its own fault before you agree with your
mover to transport your shipment.

[[Page 27156]]

What must my mover do if it is able to deliver my shipment more
than 24 hours before I am able to accept delivery?

    At your mover's discretion, it may place your shipment in
storage. This will be under its own account and at its own expense
in a warehouse located in proximity to the destination of your
shipment. Your mover may do this if you fail to request or concur
with an early delivery date, and your mover is able to deliver your
shipment more than 24 hours before your specified date or the first
day of your specified period of time.
    If your mover exercises this option, your mover must immediately
notify you of the name and address of the warehouse where your mover
places your shipment. Your mover must make and keep a record of its
notification as a part of its shipment records. Your mover has full
responsibility for the shipment under the terms and conditions of
the bill of lading. Your mover is responsible for the charges for
redelivery, handling, and storage until it makes final delivery.
Your mover may limit its responsibility to the agreed delivery date
or the first day of the period of time of delivery as specified in
the bill of lading.

What must my mover do for me when I store household goods in
transit?

    If you request your mover hold your household goods in storage-
in-transit (SIT) and the storage period of time is about to expire,
your mover must notify you, in writing, about the four following
items:
    (1) The date when storage-in-transit will convert to permanent
storage.
    (2) The existence of a nine-month period after the date of
conversion to permanent storage when you may file claims against
your mover for loss or damage occurring to your goods while in
transit or during the storage-in-transit period.
    (3) Your mover's liability will end.
    (4) Your property will be subject to the rules, regulations, and
charges of the warehouseman.
    Your mover must make this notification at least 10 days before
the expiration date of one of the following two periods of time:
    (1) The specified period of time when your mover is to hold your
goods in storage.
    (2) The maximum period of time provided in its tariff for
storage-in-transit.
    Your mover must notify you by mail.
    If your mover holds your household goods in storage-in-transit
for a period of time less than 10 days, within one day before the
expiration date of the specified time when your goods are to be held
in such storage, your mover must notify you of the same information
specified above.
    Your mover must maintain a record of all notifications to you as
part of the records of your shipment. Your mover's failure or
refusal to notify you will automatically effect a continuance of
your mover's liability according to the applicable tariff provisions
with respect to storage-in-transit, until the end of the day
following the date when your mover actually gives you notice.

What must my mover do if I want to know the actual weight or
charges for my shipment before delivery?

    If you request notification of the actual weight or volume and
charges upon your shipment, your mover must comply with your request
when it is moving your goods on a collect-on-delivery basis. This
requirement is conditioned upon you supplying your mover with an
address or telephone number where you will receive the
communication. Your mover must make its notification by telephone,
telegram, or in person.
    You must receive its notification at least one full 24-hour day
before your mover's delivery, excluding Saturdays, Sundays and
Federal holidays.
    Your mover may disregard this 24-hour notification requirement
on shipments subject to one of the following three things:
    (1) Back weigh (when your mover weighs your shipment at its
destination).
    (2) Pickup and delivery encompassing two consecutive week days,
if you agree.
    (3) Maximum payment amounts at time of delivery of 110 percent
of the estimated charges, if you agree.

Subpart G--Delivery of My Shipment

May my mover ask me to sign a delivery receipt purporting to
release it from liability?

    At the time of delivery, your mover will expect you to sign a
receipt for your shipment. You generally will sign each page of your
mover's copy of the inventory.
    Your mover must exclude on its delivery receipt or shipping
document any language purporting to release or discharge your mover
or its agents from liability.
    Your mover may include a statement about your receipt of your
property in apparent good condition, except as noted on the shipping
documents.
    DO NOT SIGN the delivery receipt, if any language purporting to
release or discharge your mover or its agents from liability appears
on the delivery receipt. Strike out such language before signing or
refuse delivery if the driver or mover refuses to provide a proper
delivery receipt.

What is the maximum collect-on-delivery amount my mover may demand
I pay at the time of delivery?

    On a binding estimate, the maximum amount is the exact estimate
of the charges. Your mover may specify the form of payment
acceptable to it (e.g., a certified check).
    On a non-binding estimate, the maximum amount is 110 percent of
the approximate costs. Your mover may specify the form of payment
acceptable to it (e.g., cash).

If my shipment is transported on more than one vehicle, what
charges may my mover collect at delivery?

    Although all movers try to move each shipment on one truck, it
becomes necessary at times to divide a shipment among two or more
trucks. This frequently occurs when an automobile is included in the
shipment and it is transported on a vehicle specially designed to
transport automobiles. When this occurs your transportation charges
are the same as if the entire shipment moved on one truck.
    If your shipment is divided for transportation on two or more
trucks, the mover may require payment for each portion as it is
delivered.
    Your mover may delay the collection of all the charges until the
entire shipment is delivered, at its discretion, not yours. At the
time you make the arrangements for your move, you should ask the
mover about its policies in this respect.

If my shipment is partially lost or destroyed, what charges may my
mover collect at delivery?

    Movers customarily make every effort to not lose, damage, or
destroy your items while your shipment is in their possession for
transportation. However, despite the precautions taken, articles are
sometimes lost or destroyed during the move.
    In addition to any money you may recover from your mover to
compensate for lost or destroyed articles, you may also recover the
transportation charges represented by the portion of the shipment
lost or destroyed.
    Your mover must require you to pay any specific valuation charge
due. Your mover may only apply this paragraph to the transportation
of household goods. Your mover may disregard this paragraph if loss
or destruction was due to an act or omission by you.
    For example, if you pack a hazardous material (i.e., gasoline,
aerosol cans, motor oil, etc.) and your shipment is partially lost
or destroyed by fire in storage or in the mover's trailer, your
mover may require you to pay for the full cost of transportation.
    Your mover may first collect its freight charges for the entire
shipment, if your mover chooses. At the time your mover disposes of
claims for loss, damage, or injury to the articles in your shipment,
it must refund the portion of its freight charges corresponding to
the portion of the lost or destroyed shipment (including any charges
for accessorial or terminal services).
    Your mover is forbidden from collecting, or requiring you to
pay, any freight charges (including any charges for accessorial or
terminal services) when your household goods shipment is totally
lost or destroyed in transit, unless the loss or destruction was due
to an act or omission by you.

How must my mover calculate the charges applicable to the shipment
as delivered?

    Your mover must multiply the percentage corresponding to the
delivered shipment times the total charges applicable to the
shipment tendered by you to obtain the total charges it must collect
from you.
    If your mover's computed charges exceed the charges otherwise
applicable to the shipment as delivered, the lesser of those charges
must apply. This will apply only to the transportation of your
household goods.
    Your mover must require you to pay any specific valuation charge
due.
    Your mover may disregard this paragraph if loss or destruction
was due to an act or omission by you. For example, you fail to
disclose to your mover your shipment contains perishable live
plants. Your mover

[[Page 27157]]

may disregard its loss or destruction of your plants, because you
failed to inform your mover you were transporting live plants.
    Your mover must determine, at its own expense, the proportion of
the shipment not lost or destroyed in transit.
    Your rights are in addition to, and not in lieu of, any other
rights you may have with respect to your shipment of household goods
your mover lost or destroyed, or partially lost or destroyed, in
transit. This applies whether or not you have exercised your rights
provided above.

Subpart H--Collection of Charges

Does this subpart apply to most shipments?

    No, this subpart does not apply to most shipments. Most movers
perform C.O.D. service subject to the 110 percent rule for non-
binding estimates. Read and understand this subpart only if your
mover is not providing this type of C.O.D. service subject to the
110 percent rule for non-binding estimates.

How must my mover present its freight or expense bill to me?

    At the time for payment of transportation charges, the mover is
required to give you a freight bill identifying the service provided
and the charge for each service. It is customary for most movers to
use a copy of the bill of lading as a freight bill; however, some
movers use an entirely separate document for this purpose.
    Except in those instances where a shipment is moving on a
binding estimate, the freight bill must specifically identify each
service performed, the rate per unit for each service, and the total
charges for each service. If this information is not on the freight
bill, DO NOT accept or pay the freight bill.
    Movers customarily provide in tariffs the freight charges must
be paid in cash, by certified check, or by a cashier's check. When
this requirement exists, the mover will not accept personal checks.
At the time you make arrangements for your move, you should ask your
mover about the form of payment your mover requires.
    Some movers permit payment of freight charges by use of a charge
card. However, do not assume your nationally recognized charge,
credit, or debit card will be acceptable for payment. Ask your mover
at the time you request an estimate.
    If you do not pay the transportation charges at the time of
delivery, your mover has the right, under the bill of lading, to
refuse to deliver your goods. The mover may place them in storage,
at your expense, until the charges are paid. However, the mover must
deliver your goods upon payment of 110 percent of a non-binding
estimate.
    If, before payment of the transportation charges, you discover
an error in the charges, you should attempt to correct the error
with the driver, the mover's local agent, or by contacting the
mover's main office. If an error is discovered after payment, you
should write the mover (the address will be on the freight bill)
explaining the error and request a refund.
    Movers customarily check all shipment files and freight bills
after a move has been completed to make sure the charges were
accurate. If an overcharge is found, you will be notified and a
refund made. If an undercharge occurred, you will be billed for the
additional charges due.
    On ``to be prepaid'' shipments, your mover must present its
freight bill for all transportation charges within 15 days, from the
date your mover received the shipment. This time period excludes
Saturdays, Sundays, and Federal holidays.
    On ``collect'' shipments, your mover must present its freight
bill for all transportation charges on the date of delivery, or, at
its discretion, within 15 days, measured from the date the shipment
was delivered at your destination. This time period excludes
Saturdays, Sundays, and Federal holidays.
    Your mover's freight bills and accompanying written notices must
state the following five items:
    (1) Penalties for late payment.
    (2) Credit time limits.
    (3) Service or finance charges.
    (4) Collection expense charges.
    (5) Discount terms.
    If your mover extends credit to you, freight bills or a separate
written notice accompanying a freight bill or a group of freight
bills presented at one time must state ``You may be subject to
tariff penalties for failure to timely pay freight charges'' or a
similar statement. Your mover must state on its freight bills or
other notices when it expects payment, and any applicable service
charges, collection expense charges and discount terms.
    When your mover lacks sufficient information to compute its
tariff charges at its time of billing, your mover must present its
freight bill for payment within seven days following the day when
sufficient information becomes available. This time period excludes
Saturdays, Sundays, and Federal holidays.
    Your mover must refrain from extending more credit to you, if
you fail to furnish sufficient information to your mover. Your mover
must have sufficient information to render a freight bill within a
reasonable time after the shipment.
    When your mover presents freight bills by mail, it must deem the
time of mailing to be the time of presentation of the bills. The
term ``freight bills,'' as used in this paragraph, includes both
paper documents and billing by use of electronic media such as
computer tapes, disks, or the Internet when the mails (U.S. mail, e-
mail) are used to transmit them.
    When you mail acceptable checks or drafts in payment of freight
charges, your mover must deem the act of mailing the payment within
the credit period to be the proper collection of the tariff charges
within the credit period for the purposes of Federal law. In the
case of a dispute as to the date of mailing, your mover must accept
the postmark as the date of mailing.

If I forced my mover to relinquish a collect-on-delivery shipment
before the payment of ALL charges, how must my mover collect the
balance?

    On ``collect-on-delivery'' shipments, your mover must present
its freight bill for all transportation charges within seven days,
measured from the date the shipment was delivered at your
destination. This time period excludes Saturdays, Sundays, and
Federal holidays.

What actions may my mover take to collect from me the charges upon
its freight bill?

    Your mover must present a freight bill within 15 days (excluding
Saturdays, Sundays, and Federal holidays) of the date of delivery of
a shipment at your destination.
    The credit period must be seven days (excluding Saturdays,
Sundays, and Federal holidays).
    Your mover must provide in its tariffs the following three
things:
    (1) A provision automatically extending the credit period to a
total of 30 calendar days for you if you have not paid its freight
bill within the 7-day period.
    (2) A provision indicating you will be assessed a service charge
by your mover equal to one percent of the amount of the freight
bill, subject to a $20 minimum charge, for the extension of the
credit period.
    (3) A provision your mover must deny credit to you, if you fail
to pay a duly presented freight bill within the 30-day period. Your
mover may grant credit to you, at its discretion, when you satisfy
your mover's conditions you will pay all future freight bills duly
presented. Your mover must ensure all your payments of freight bills
are strictly in accordance with Federal rules and regulations for
the settlement of its rates and charges.

Do I have a right to file a claim to recover money for property my
mover lost or damaged?

    Should your move result in the loss or damage to any of your
property, you have the right to file a claim with your mover to
recover money for such loss or damage.
    You have nine months following either the date of delivery, or
the date when the shipment should have been delivered, to file a
claim. You should file a claim as soon as possible. If you fail to
file a claim within 120 days following delivery and later bring a
legal action against the mover to recover the damages, you may not
be able to recover your attorney fees even though you win the court
action.
    While the Federal Government maintains regulations governing the
processing of loss and damage claims, it cannot resolve those
claims. If you cannot settle a claim with the mover, you may file a
civil action to recover your claim in court. In this connection, you
may obtain the name and address of the mover's agent for service of
legal process in your state by contacting the Federal Highway
Administration.
    In addition, your mover must participate in an Arbitration
Program. The program, described earlier in this pamphlet, provides
you with the opportunity to settle certain types of unresolved loss
or damage claims through a neutral arbitrator. You may find
submitting your claim to arbitration under such a program to be a
less expensive and more convenient way to seek recovery of your
claim. If the mover does not provide you with information about its
arbitration program before you move, ask the mover for the details
of the program.

[[Page 27158]]

Subpart I--Reports My Mover Files With the FHWA

What is an annual arbitration report?

    A report describing the results of all arbitrations requested
and concluded in the previous calendar year.

Who must file an annual arbitration report?

    If your mover picks up or delivers shipments for individual
shippers (like you) during any calendar year, your mover must file
an annual arbitration report.

Where and when does my mover file an annual arbitration report?

    Your mover must file an annual arbitration report with the
Federal Highway Administration in Washington, D.C. by March 31 each
year.

What is included in my mover's annual arbitration report?

    Your mover must include in its annual arbitration report the
following nine things:
    (1) The total number of shipments transported for the calendar
year covered by the report.
    (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 (listing claim amount 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 your mover accepted.
    (8) The results of the arbitrations your mover accepted and
reported listing claim amount and disposition.
    (9) An oath, completed by your mover. The oath must be signed by
a company officer of your mover.

How may I get a copy of my mover's annual arbitration report?

    Ask your mover for a copy of its report or write to the
following address: Licensing and Insurance Division (HIA-30), Office
of Motor Carrier Information Analysis, Federal Highway
Administration, 400 Virginia Avenue, SW., Suite 600, Washington,
D.C. 20024.

Subpart J--Resolving Disputes With My Mover

What may I do to resolve disputes with my mover?

    The Federal Highway Administration does not help you settle your
dispute with your mover.
    Generally, you must resolve your own disputes with your mover.
You enter a contractual arrangement with your mover. You are bound
by each of the following three things:
    (1) The terms and conditions you negotiated before your move.
    (2) The terms and conditions you accepted when you signed the
bill of lading.
    (3) The terms and conditions you accepted when you signed for
delivery of your goods.
    Your mover is required to offer you arbitration to settle your
disputes with it. Otherwise, you have the right to take your mover
to court.
    The Federal Highway Administration does not have the resources
to seek a court injunction on your behalf to obtain your household
goods if your mover is holding your goods ``hostage.''

Subpart K--What Else Should I Know

What if I have more questions?

    If this pamphlet does not answer all of your questions about
your move, do not hesitate to ask your mover's representative who
handled the arrangements for your move, the driver who transports
your shipment, or the mover's main office for additional
information.

What are the most important points I should remember from this
pamphlet?

    1. Movers must give written estimates.
    2. Movers may give binding estimates.
    3. Non-binding estimates are not always accurate; actual charges
often exceed the estimate.
    4. You should specify pickup and delivery dates in the order for
service.
    5. The bill of lading is your contract with the mover * * *.
READ IT CAREFULLY * * *. If you have any questions ask your mover.
    6. Be sure you understand the extent of your mover's liability
for loss and damage.
    7. You have the right to be present each time your shipment is
weighed.
    8. You may request a reweigh of your shipment.
    9. If you have moved on a non-binding estimate, you should have
enough cash, a certified check, or a cashier's check to pay the
estimated cost of your move plus 10 percent more, at the time of
delivery.
    10. Unresolved claims for loss or damage may be submitted to
arbitration; ask your mover for details.

PART 377--[AMENDED]

    2. The authority citation for part 377 continues to read as
follows:

    Authority: 49 U.S.C. 13101, 13301, 13701-13702, 13706, 13707,
and 14101; 49 CFR 1.48.

Sec. 377.215  [Amended]

    3. Section 377.215 is removed and reserved.

[FR Doc. 98-12582 Filed 5-14-98; 8:45 am]
BILLING CODE 4910-22-P