27126 Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules

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report in place of the outdated annual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

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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/

suldocs.

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
Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules 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 § 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 § 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

§ 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.
27128 Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules

The regulations also would provide,

in § 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 (SubNo. 6). For purposes of this rulemaking,

the FHWA proposes to adopt the abovedescribed 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 onboard 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 § 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

§ 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
Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules 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 ...............................

375.12 .................................

What actions of an individual shipper 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?
27130 Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules

PART 375.—TRANSPORTATION OF HOUSEHOLD GOODS IN INTERSTATE COMMERCE—Continued

Proposed section Old section Title of proposed section

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 Enforcement (OCE)–100.

Your Rights and 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
Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules 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.
27132 Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules

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

Type of burden Financial

cost

Hourly

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

ESTIMATED PAPERWORK BURDEN—

Continued

Type of burden Financial

cost

Hourly

burden

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 FHWAassigned 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
Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules 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 carrierspecific 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.
27134 Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules

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).
Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules 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 § 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
27136 Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules

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.
Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules 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-intransit.

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-intransit 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.
27138 Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules

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.
Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules 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-ondelivery 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-ondelivery 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

§ 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.

§ 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
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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

§ 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.

§ 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

§ 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.

§ 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).

§ 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:
Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules 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.

§ 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.

§ 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 fullfaced type: ‘‘YOUR RIGHTS AND

RESPONSIBILITIES WHEN YOU

MOVE. OMB No. 2125–llll,

Expires onllll , 200lll .

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

§ 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.

§ 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.

§ 375.219 May I extend credit to shippers?

You may extend credit to shippers in

accordance with § 375.807.

§ 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
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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 § 375.807 apply.

Subpart C—Service Options Provided

§ 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 § 375.303.

§ 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

§ 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 nonbinding 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

§ 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.

§ 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

§ 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
Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules 27143

the individual shipper in accordance

with § 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.

§ 375.405 How must I provide a nonbinding estimate?

(a) If you do not provide a binding

estimate to an individual shipper in

accordance with § 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.

§ 375.407 Under what circumstances must

I relinquish possession of a collect-ondelivery shipment transported under a nonbinding 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

§ 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 weightor 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 nonbinding 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.

§ 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
27144 Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules

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 § 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

§ 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.

§ 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.

§ 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.

§ 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.

§ 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.

§ 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.

§ 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 § 375.509(a)(1), the

individual shipper may demand a

reweigh. You must base your freight bill

charges upon the reweigh weight.

§ 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.
Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules 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.

§ 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-ondelivery 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

§ 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.

§ 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.

§ 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.

§ 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.

§ 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-intransit.

(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
27146 Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules

effect a continuance of your carrier

liability according to the applicable

tariff provisions with respect to storagein-transit, until the end of the day

following the date when you actually

gave notice.

Subpart G—Delivery of Shipments

§ 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.

§ 375.703 What is the maximum collect-ondelivery 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.

§ 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 § 375.707.

§ 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.

§ 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

§ 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 nonbinding estimates.

§ 375.803 How must I present my freight or

expense bill?

You must present your freight or

expense bill in accordance with

§ 377.205 of this subchapter.

§ 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.

§ 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
Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules 27147

with the rules and regulations of this

part for the settlement of your rates and

charges.

Subpart I—Filing Annual Arbitration

Reports

§ 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.

§ 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.

§ 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.

§ 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 llllllllll

Title llllllllll

Date llllllllll

Subpart J—Penalties

§ 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—ll, Expires on ll, 200

ll.

Furnished By Your Mover, As Required By

Federal Law.
27148 Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules

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 onboard 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
Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules 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.
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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 addedvalue 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
Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules 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 collecton-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 collecton-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
27152 Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules

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:
Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules 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 nonbinding estimates will be those appearing in

your mover’s tariffs applicable to the

transportation. If your mover provides a nonbinding 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 nonbinding 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
27154 Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules

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.
Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules 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 noncertified 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 threestep 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.
27156 Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules

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
Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules 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 collecton-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.
27158 Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed Rules

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.

§ 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