[Federal Register: March 5, 2004 (Volume 69, Number 44)]
[Rules and Regulations]
[Page 10569-10589]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05mr04-17]
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Part IV
Department of Transportation
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Federal Motor Carrier Safety Administration
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49 CFR Part 375
Transportation of Household Goods; Consumer Protection Regulations;
Interim Final Rule
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DEPARTMENT OF TRANSPORTATION
Federal Motor Carrier Safety Administration
49 CFR Part 375
[Docket No. FMCSA-97-2979]
RIN 2126-AA32
Transportation of Household Goods; Consumer Protection
Regulations
AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.
ACTION: Interim final rule; technical amendments.
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SUMMARY: The Federal Motor Carrier Safety Administration (FMCSA) amends
its interim final rule governing the interstate transportation of
household goods (68 FR 35064, Jun. 11, 2003). On August 25, 2003, the
U.S. Department of Transportation (DOT) received two petitions for
reconsideration of the interim final rule. The petitioners requested
both substantive and technical amendments. Today's rule incorporates
the technical amendments. Substantive amendments requested by the
petitioners will require consideration in a future rulemaking
proceeding, to give the public an opportunity to comment. This amended
interim final rule will benefit both the industry and consumers by more
accurately reflecting current industry practices.
DATES: The interim final rule (68 FR 35064) issued on June 11, 2003,
was effective September 9, 2003; these technical amendments are
effective April 5, 2004. The compliance date for the interim rule was
delayed at 68 FR 56208 (September 30, 2003); the new compliance date
for the interim rule and these amendments is April 5, 2004.
FOR FURTHER INFORMATION CONTACT: Mr. Nathaniel Jackson, Office of
Commercial Enforcement, (202) 385-2369, Federal Motor Carrier Safety
Administration, Suite 600, 400 Virginia Avenue, SW., Washington, DC
20024. Docket: For access to the docket to read background documents or
comments received, go to http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://dms.dot.gov at any time or to Room PL-
401 on the plaza level of the Nassif Building, 400 Seventh Street, SW.,
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays. Privacy Act: Anyone is able to search the
electronic form of all comments received into any of DOT's dockets by
the name of the individual submitting the comment (or signing the
comment, if submitted on behalf of an association, business, labor
union, etc.). You may review DOT's complete Privacy Act Statement in
the Federal Register published on April 11, 2000 (65 FR 19477). This
statement is also available at http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://dms.dot.gov.
SUPPLEMENTARY INFORMATION:
Background
In the Motor Carrier Safety Improvement Act of 1999 (Pub. L. 106-
159, December 9, 1999, 113 Stat. 1749), which established FMCSA as a
separate agency within DOT, Congress authorized the agency to regulate
motor carriers transporting household goods for individual shippers.
Our regulations setting forth Federal requirements for motor carriers
that provide interstate transportation of household goods are found in
49 CFR part 375. The regulations governing payment of transportation
charges are in 49 CFR part 377.
In May 1998, the Federal Highway Administration published a notice
of proposed rulemaking (NPRM) requesting comments on its proposal to
update the household goods regulations (63 FR 27126, May 15, 1998). The
Federal Highway Administration is the predecessor agency to FMCSA
within DOT.
The public submitted more than 50 comments to the NPRM. FMCSA
subsequently modified the substance of the proposal in light of
concerns raised by some of the commenters, and published an interim
final rule in June 2003 (68 FR 35064, Jun. 11, 2003). We published an
interim final rule rather than a final rule to allow the Office of
Management and Budget (OMB) additional time to complete its review of
information collection requirements.
In order to publish the rule text in the October 1, 2003, edition
of the Code of Federal Regulations (CFR), we established the interim
final rule's effective date as September 9, 2003. However, compliance
was not required until March 1, 2004. On August 25, 2003, we received
two petitions for reconsideration of the interim final rule. The
petitioners are (1) the American Moving and Storage Association (the
Association) and (2) United Van Lines, LLC and Mayflower Transit, LLC
(Unigroup). On the same date, the Association submitted a separate
Petition for Stay of Effective Date.
The reconsideration petitions address a variety of issues, both
substantive and technical. On September 30, 2003, FMCSA delayed the
compliance date for the rule indefinitely in order to consider fully
the petitioners' concerns (68 FR 56208). The Association's petition
noted that movers will require ample time to prepare for compliance
with the rule. The compliance date for the interim final rule and
today's technical amendments provides the moving industry with this
vital lead time.
Today's rule adopts all of the petitioners' requested technical
amendments, either wholly or with minor modifications. These amendments
provide uniformity between the rule text and the appendix, clarify
certain provisions, reflect current industry practice, or correct
typographical errors. Equally important, some of the technical
amendments revise language that was contrary to the statutory intent of
the ICC Termination Act of 1995 (ICCTA) (Pub. L. 104-88, 109 Stat.
803), as codified at 49 U.S.C. 14104 and 14708.
The substantive amendments requested by the petitioners involve
changes to prescribed operating practices of movers. These changes
would have a more significant impact on the moving industry and
consumers than the technical amendments being adopted today. We will
consider certain of the requested substantive amendments in a future
rulemaking, so that the public will have an opportunity to comment.
The interim final rule, together with these technical amendments,
is intended to (1) increase the public's understanding of the
regulations with which movers must comply, and (2) help individual
shippers and the moving industry understand the roles and
responsibilities of movers, brokers, and shippers, to prevent moving
disputes. Individual shippers--substantial numbers of whom are either
relocating for business reasons or retired--may use for-hire truck
transportation services infrequently. Thus, these consumers may be
poorly informed about the regulations with which movers must comply and
have little understanding of how moving companies operate. Appendix A
to part 375--the pamphlet Your Rights and Responsibilities When You
Move--is intended to help individual shippers understand the
regulations so that they can make informed decisions in selecting a
mover and planning a satisfactory move. Section 375.213 requires movers
to furnish the information in this appendix to prospective customers.
Discussion of the Technical Amendments
In what follows we summarize the more significant technical
amendments requested by the petitioners and adopted in today's rule.
Although we made all of the proposed technical amendments, our
discussion omits typographical and certain other minor
[[Page 10571]]
changes. Technical deviations from the petitioners' recommendations are
noted. The amendatory text of today's rule constitutes all changes to
part 375 as published at 68 FR 35064 (Jun. 11, 2003) and in the October
1, 2003, edition of title 49 of the Code of Federal Regulations.
Our discussion of the technical amendments is organized by subject
area as follows:
Arbitration Programs
Credit
Liability insurance coverage
Notification options
Pickup of shipments: bill of lading, order for service, inventory
Collection of charges
Presentation of freight bills
Appendix A to Part 375--Your Rights and Responsibilities When You
Move
Subpart A--General Requirements
Subpart B--Before requesting services from
any mover
Subpart E--Pickup of My Shipment of Household
Goods
Subpart H--Collection of Charges
Revisions for Consistency With Amendments to
Part 375
Amending ``cubic yards or meters'' to ``cubic
feet (or yards or meters)'' (Subparts C and E)
Continued Applicability to Foreign Commerce
Arbitration Programs
We amended the first sentence of Sec. 375.211(a), subpart B (``You
must have an arbitration program for individual shippers.''). The
amended regulation reads: ``You must have an arbitration program to
resolve property loss and damage disputes for individual shippers.''
This achieves consistency with 49 U.S.C. 14708(a), which requires
movers to provide arbitration only for loss and damage disputes. We
agree with the petitioners that the regulation should require no more
than the statute.
In Sec. 375.211(a)(2), ``* * * your arbitration program must
provide notice to the individual shipper of the availability of neutral
arbitration * * *'', we replaced ``your arbitration program'' with
``you.'' This is consistent with 49 U.S.C. 14708(b)(2), which clearly
requires that the carrier, not its arbitration program, provide such
notice.
Section 375.211(a)(2) is further amended by replacing ``Before the
household goods are tendered for transport,'' with ``Before execution
of the order for service,'' to require that movers furnish shippers
with information about the availability of neutral arbitration before
drawing up the contract. This also achieves internal consistency with
Sec. 375.213 (``Before you execute an order for service for a shipment
of household goods * * *'').
Credit
In Sec. 375.217(c)(1) of subpart B, we amended the requirement
that movers arrange for the delivery of household goods ``during the
time your credit/collection department is open * * *.'' to: ``only at a
time when you can obtain authorization for the shipper's credit card
transaction.'' This reflects real-world efficiency. Today's drivers
often have a telephone number to call for credit card authorizations 24
hours a day, 7 days a week.
Liability Insurance Coverage
Former paragraphs (c) through (h) of Sec. 375.303, subpart C, are
amended to clarify that a mover is not required to comply with these
provisions unless it elects to sell liability insurance coverage.
Former paragraphs Sec. 375.303(c) through (h) are renumbered as (c)(1)
through (6), and the introductory clause ``If you sell, offer to sell,
or procure liability insurance coverage for loss or damage to
shipments:'' is added at Sec. 373.303(c).
Notification Options
The petitioners noted that Sec. Sec. 375.403(a)(7) and
375.405(b)(9) permit the mover only one method--fax transmission-- of
notifying individual shippers of additional services the mover proposes
to perform. The petitioners requested that the regulation give movers
the option of notifying shippers of additional services electronically.
The petitioners also pointed out the advantages of standardizing
notification options in part 375.
We agree that the notification options should be as similar as
possible throughout part 375. However, telephone notification is
inappropriate when written transaction is required--for example, when
the mover must provide the shipper a statement of additional services
needed (Sec. 375.405(b)(9)). We amended Sec. 375.403(a)(7) (under
``How must I provide a binding estimate?''), Sec. 375.405(b)(9) (under
``How must I provide a non-binding estimate?''), Sec. 375.501(a)(15)
(under ``Must I write up an order for service?''), Sec. 375.505(b)(5)
(under ``Must I write up a bill of lading?''), Sec. 375.515(b) (under
``May an individual shipper waive his or her right to observe each
weighing?''), Sec. 375.521(a) (under ``What must I do if an individual
shipper wants to know the actual weight or charges for a shipment
before I tender delivery?''), Sec. 375.605(a) (under ``How must I
notify an individual shipper of any service delays?''), and Sec.
375.609(d) (under ``What must I do for shippers who store household
goods in transit?'') so that each of these regulations provides the
widest variety of notification options (telephone, in-person contact,
fax transmission; e-mail; overnight courier; or certified mail, return
receipt requested) appropriate to the matter being communicated. This
allows the industry and individual shippers the greatest flexibility
possible.
Pickup of Shipments: Bill of Lading, Order for Service, Inventory
The petitioners requested several amendments to regulations
governing the bill of lading, inventory, and order for service,
particularly in relation to pickup of shipments. We amended Sec. Sec.
375.501, 375.503, and 375.505 to more accurately reflect movers'
current practices, as summarized below:
We removed the prohibition in Sec. 375.501(d) against a mover's
requiring the shipper ``to sign any incomplete * * * documents
pertaining to the move.'' As the petitioners note, the bill of lading
is seldom complete when a shipment leaves its origin. There are two
reasons for this. Weighing cannot occur until the shipment is in
transit, and other charges for service, such as unpacking, storage-in-
transit, and various destination charges, cannot be determined until
the shipment reaches its destination. If the bill of lading contains
all relevant shipping information, except the actual shipment weight
and any other information necessary to determine the final charges, the
shipper will need to sign it at origin in order to choose the valuation
option, request special services, and/or acknowledge the terms and
conditions of released valuation.
Therefore, we amended Sec. 375.501(d)(2) as follows: ``You may
require the individual shipper to sign an incomplete document at origin
provided it contains all relevant shipping information except the
actual shipment weight and any other information necessary to determine
the final charges for all services performed.''
In addition, we amended Sec. 375.505(a) by revising the sentence
``You must furnish a complete copy of the bill of lading to the
individual shipper * * *.'' to read: ``You must furnish a partially
complete copy * * *.''
The petitioners note that movers have discretion under the Surface
Transportation Board's Released Rates Order to place the valuation
statement on either the order for service or the bill of lading,
provided the order for service or bill of lading states the appropriate
valuation selected by the shipper. We
[[Page 10572]]
amended Sec. Sec. 375.501 and 375.505 to make this clear.
Specifically, in Sec. Sec. 375.501 and 375.505, we added identical
paragraphs (h) and (e), respectively, as follows: ``You have the option
of placing the valuation statement on either the order for service or
the bill of lading, provided the order for service or bill of lading
states the appropriate valuation selected by the shipper.'' This
language allows the mover, if it chooses, to combine the bill of lading
and order for service in a single document. This could help reduce the
paper and administrative burden of implementing the new rules.
In addition, we amended Sec. 375.505(b)(14) to make it clear that
movers are not bound to provide the estimate, order for service, and
inventory to the individual shipper as attachments to the bill of
lading. The revised language specifies that the estimate, order for
service, and inventory must be attached to the bill of lading, but only
``[i]f not provided elsewhere to the shipper.''
The petitioners note that Sec. Sec. 375.503 and 375.505 require
movers to furnish the shipper a complete copy of the inventory and bill
of lading, respectively, before the goods are loaded onto the vehicle.
They point out that this requirement is overly restrictive and
inconsistent with industry practice. Movers provide the inventory and
bill of lading to individual shippers either before or at the time of
loading the vehicle, as dictated by circumstances. Moreover, a
requirement to provide a complete copy of the bill of lading before
loading the shipper's goods contradicts what has historically been the
purpose and effect of the bill of lading--to serve, among other things,
as a receipt for articles accepted for transportation under the
contract of carriage.
Therefore, we amended Sec. 375.503(b) and (c) to require that the
inventory be prepared and signed, and that a copy be provided to the
shipper, ``before or at the time of loading the shipment.'' Further, in
Sec. 375.505(c), we amended the sentence ``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.'' The amended
language reads: ``Before the vehicle leaves the residence at origin,
the bill of lading must be in the possession of the driver responsible
for the shipment.''
Collection of Charges (Subpart H, Sec. 375.801)
In the interim final rule published on June 11, 2003, subpart H
applied only to household goods shipments ``subject to binding
estimates.'' This limited applicability has the effect of excluding
shipments for which the mover gives a non-binding estimate. The
petitioners recommend we broaden the applicability to all shipments of
household goods that:
(1) Entail a balance due freight or expense bill; or
(2) Are transported on an extension of credit basis.
We agree that this change more accurately reflects industry
practice, and have amended Sec. 375.801 as requested.
Presentation of Freight Bills
The petitioners point out a significant typographical error in
Sec. 375.803. The sentence ``You must present your freight or expense
bill in accordance with Sec. 377.205 * * *.'' should read ``* * * in
accordance with Sec. 375.807.'' We have corrected this error as
requested. This consolidates the household goods regulations into part
375.
Appendix A to Part 375--Your Rights and Responsibilities When You Move
Subpart A--General Requirements
(1) The introductory paragraph of Appendix A, Subpart A--General
Requirements, states it is the customer's responsibility to understand
his rights and remedies ``when'' problems arise. The Association
believes the word ``when'' implies that problems are the rule rather
than the exception. It requests that ``when'' be amended to ``if.''
While agreeing with the Association's basic point, we made a stylistic
decision to amend ``when problems arise'' to ``in case problems
arise,'' rather than ``if problems arise.''
(2) ``What Definitions Are Used in This Pamphlet?'' At the
petitioners' request, we amended several definitions in this section to
improve clarity and reflect industry practice. The amended definitions
are accessorial (additional) services, appliance service by third
party, flight charge, line haul charges, long carry, and storage-in-
transit. The new definition of storage-in-transit, for example,
corrects misinformation concerning the circumstances in which storage-
in-transit may occur, the responsibility for the added charges, and the
storage period (the 180-day limit in the old definition is inaccurate).
Subpart B--Before Requesting Services From Any Mover
(1) ``How Must My Mover Handle Complaints and Inquiries?'' In the
previous version of the pamphlet, the closing sentence suggests that
individual shippers ``may want to test'' a mover's complaint system
``to see how it works for you.'' The Association considers this advice
an open invitation to prospective customers to make ``practice''
complaints, and believes such bogus complaints would hamper movers''
efficiency in serving their actual customers. The Association requested
we remove the sentence.
Although we recognize the Association's concerns, we also support
the consumer's right to choose a mover that practices good customer
service. Therefore, rather than removing the sentence, we instead
amended it to read: ``You may want to be certain that the system is in
place.''
(2) ``Do I Have the Right To Inspect My Mover's Tariffs (Schedule
of Charges) Applicable to My Move?'' The closing paragraph of this
section indicates that a mover's tariff ``may contain other provisions
that apply to your move. Ask your mover what they might be.'' We agree
with the petitioners that prospective shippers should be encouraged to
exercise their right to request public information, and have amended
the final sentence by adding the clause ``and request a copy.''
(3) ``May My Mover Accept Charge or Credit Cards for Payment?'' For
consistency with the revision to Sec. 375.217(c)(1), we amended the
sentences ``The mover must arrange with you for delivery during the
time when the mover's credit or collection department is open * * *.
The mover does not have to make these delivery arrangements with you
when it has equipped its motor vehicle(s) with card transaction
processing machines.'' The amended language reads: ``If your mover
agrees to accept payment by charge or credit card, you must arrange
with your mover for the delivery only at a time when your mover can
obtain authorization for your credit card transaction.''
Subpart E--Pickup of My Shipment of Household Goods
In the previous version of the pamphlet, the last paragraph of the
section ``Should I Reach an Agreement With My Mover About Pickup and
Delivery Times?'' contained outdated information about ``long carries''
and ``flight stair carries.'' The petitioners point out that ``long
carries'' and ``flight stair carries'' are no longer separate charges
under the tariff most commonly used by movers. We amended the second
sentence of this paragraph to read: ``For example, because of
restrictions trucks must follow at your new location, the mover may not
be able
[[Page 10573]]
to take its truck down the street of your residence and may need to
shuttle the shipment using another type of vehicle.'' As suggested by
the petitioners, we also deleted the last sentence of the paragraph.
Subpart H--Collection of Charges
(1) In the section ``How Must My Mover Present Its Freight or
Expense Bill to Me?'' (second paragraph), we amended ``the rate per
unit for each shipment'' to ``rate or charge per service performed.''
The Association pointed out that household goods tariffs do not
ordinarily state rates in terms of definable units.
(2) In the section ``Do I Have a Right To File a Claim To Recover
Money for Property My Mover Lost or Damaged?'' (second paragraph), we
amended language that was contrary to the requirements of 49 U.S.C.
14708(d). The Association noted that the original language (``You have
nine months following either the date of delivery, or the date when the
shipment should have been delivered, to file a claim. * * * If you fail
to file a claim within nine months * * * and later bring a legal action
against the mover to recover the damage, you may not be able to recover
your attorney fees even though you win the court action'') was both
incorrect and misleading. First, section 14708(d) is clear that
recovery of attorney's fees in a court action by the shipper is
contingent upon the shipper's submitting the claim to the carrier
within 120 days, not 9 months. Second, except in rare cases, failure to
submit a claim within 9 months bars recovery not merely of attorney's
fees but of any fees whatsoever. We have rewritten this paragraph for
clarity and accuracy:
You should file a claim as soon as possible. If you fail to file
a claim within 9 months, your mover may not be required to accept
your claim. If you institute a court action and win, you may be
entitled to attorney's fees, but only in either of two
circumstances. You may be entitled to attorney's fees if you
submitted your claim to the carrier within 120 days after delivery,
and a decision was not rendered through arbitration within the time
required by law. You also may be entitled to attorney's fees if you
submitted your claim to the carrier within 120 days after delivery,
the court enforced an arbitration decision in your favor, and the
time for the carrier to comply with the decision has passed.
Appendix A--Revisions for Consistency With Amendments to Part 375
For consistency with the amendments to part 375 in today's rule, we
revised the corresponding sections of appendix A. These changes
include:
(1) Revising subpart E--``Must my mover write up an order for
service?''--to clarify that movers may require individual shippers to
sign partially complete documents. The amended language reads:
Your mover should provide you with documents that are as
complete as possible, and with all charges clearly identified.
However, as a practical matter, your mover usually cannot give you a
complete bill of lading before transporting your goods. This is both
because the shipment cannot be weighed until it is in transit and
because other charges for service, such as unpacking, storage-in-
transit (SIT), and various destination charges, cannot be determined
until the shipment reaches its destination.
Therefore, your mover can require you to sign a partially
complete bill of lading if it contains all relevant information
except the actual shipment weight and any other information
necessary to determine the final charges for all service provided.
Signing the bill of lading allows you to choose the valuation
option, request special services, and/or acknowledge the terms and
conditions of released valuation.
Your mover also may provide you, strictly for informational
purposes, with blank or incomplete documents pertaining to the move.
(2) Revising subpart E, ``Must my mover write up an inventory of
the shipment?'' (first paragraph), to clarify that the mover has
latitude as to when to prepare the inventory and provide it to the
shipper. The mover is required to do this not before loading the
shipment, but instead ``before or at the time of loading.''
(3) Revising subpart H--Collection of Charges to clarify that this
provision applies to all shipments that involve a balance due freight
or expense bill or are shipped on credit.
(4) Amending the introductory section ``Why Was I Given This
Pamphlet?'' for consistency with Sec. 375.209. In the previous version
of appendix A, the second paragraph of this section stated, ``The mover
will also furnish you with another booklet describing its procedure for
handling your questions and complaints.'' Section 375.209, however,
merely requires that the mover's complaint procedures be distributed to
individual shippers in writing, not that they be contained in a
separate booklet.
Appendix A--Amending the words ``cubic yards or meters'' to ``cubic
feet (or yards or meters)'' to reflect industry practice. Movers
routinely calculate volume in cubic feet, not cubic yards. This
language appears in the appendix sections Subpart C--Service Options
Provided (``What service options may my mover provide?'') and Subpart
E--Pickup of My Shipment of Household Goods (``Must my mover determine
the weight of my shipment?'').
Continued Applicability to Foreign Commerce
Section 375.101 (``Who must follow these regulations?'') of the
interim final rule published on June 11, 2003, limits the applicability
of part 375 to ``interstate commerce,'' whereas former Sec. 375.1
specified that part 375 is applicable to both ``interstate and foreign
commerce.'' This apparent change in applicability was unintentional on
our part. To avoid ambiguity, we have amended Sec. 375.101 by cross-
referencing the term ``interstate commerce'' to the definition of the
same term in 49 CFR Sec. 390.5. This makes it clear that FMCSA also
regulates foreign motor carriers transporting household goods into or
out of the United States.
Rulemaking Analyses and Notices
Executive Order 12866 (Regulatory Planning and Review) and DOT
Regulatory Policies and Procedures
We have determined these amendments do not meet the criteria for a
``significant regulatory action'' as specified in Executive Order 12866
and within the meaning of DOT regulatory policies and procedures (44 FR
11034, Feb. 26, 1979). This document was not reviewed by the Office of
Management and Budget.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) (5 U.S.C. 601-612), as amended
by the Small Business Regulatory Enforcement and Fairness Act (Pub. L.
104-121), requires Federal agencies to analyze the impact of
rulemakings on small entities, unless the agency certifies that the
rule will not have a significant economic impact on a substantial
number of small entities.
As noted in the Regulatory Flexibility Act section of the interim
final rule published on June 11, 2003, this rule does not impose a
significant economic impact on a substantial number of small entities.
The original rule issued by the former Interstate Commerce Commission
imposed paperwork requirements (creating, duplicating, and storing
records, and practicing inventory control for those records) that were
estimated at 785 hours for each entity (moving company). The interim
final rule published on June 11, 2003, increased this time-and-cost
burden by 458 hours, to an estimated total of 1,243 burden hours per
entity.
Today's technical amendments do not increase the estimated burden
hours for compliance with the household goods transportation
regulations. The amendments respond to industry petitions, and make the
interim final
[[Page 10574]]
rule more consistent with industry practice. Most entities, including
small entities, already follow the principles, practices, and
procedures captured in the technical amendments. Therefore, FMCSA
certifies that these technical amendments will not have a significant
impact on a substantial number of small entities.
Executive Order 13132 (Federalism)
The Federalism section in our interim final rule published on June
11, 2003, noted that the rule has been analyzed in accordance with the
principles and criteria contained in Executive Order 13132, dated
August 4, 1999 (64 FR 43255, Aug. 10, 1999). State Attorneys General
and other State and local officials submitted comments to the May 1998
NPRM (63 FR 27126, May 15, 1998). We considered these comments in
developing the interim final rule, and placed the comments in the
rulemaking docket.
FMCSA certifies that the rule published on June 11, 2003, has
federalism implications because it directly impacts the distribution of
power and responsibilities among the various levels of government.
Federalism implications likewise attach to today's technical
amendments.
We have submitted a federalism summary impact statement for the
June 11, 2003, interim final rule to the Director of the Office of
Management and Budget.
Unfunded Mandates Reform Act of 1995
The Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4; 2 U.S.C.
1532) requires each agency to assess the effects of its regulatory
actions on State, local, and tribal governments and the private sector.
Any agency promulgating a final rule likely to result in a Federal
mandate requiring expenditures by a State, local, or tribal government
or by the private sector of $100 million or more in any one year must
prepare a written statement incorporating various assessments,
estimates, and descriptions that are delineated in the Act. FMCSA
determined that the changes in the June 11, 2003, interim final rule
will not have an impact of $100 million or more in any one year. No
significant additional impact is associated with today's technical
amendments.
Paperwork Reduction Act
Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501-
3520), a Federal agency must obtain approval from OMB for each
collection of information it conducts, sponsors, or requires through
regulations. FMCSA sought approval of the information collection
requirements in the ``Transportation of Household Goods; Consumer
Protection Regulations'' interim final rule published on June 11, 2003.
On June 19, 2003, OMB assigned control number 2126-0025 to this
information collection, and the approval expires on June 30, 2006.
OMB approved 600,000 annual responses, 4,370,037 annual burden
hours, and an annual information collection burden of $37,247,000. It
also approved FMCSA form number MCSA-2P to be used as part of the
information collection process.
The following table summarizes the approved burden hours of the
existing interim final rule by correlating the information collection
activities with the sections of part 375 CFR in which they appear. A
detailed analysis of the burden hours can be found in the OMB
Supporting Statement for this rule. The Supporting Statement and its
attachments are in Docket No. FMCSA-97-2979.
------------------------------------------------------------------------
Type of burden Section Hourly burden
------------------------------------------------------------------------
Agency Agreements................... 375.205 19
Minimum Advertising Information 375.207 684
Soliciting Prospective Individual
Shippers...........................
Complaint and Inquiry Handling...... 375.209 500,000
Arbitration Program Summary......... 375.211 8,000
Your Rights and Responsibilities 375.213 8,334
When You Move Booklet..............
Selling Insurance Policies.......... 375.303 100,000
Estimates--Binding.................. 375.401 1,836,000
Estimates--Non-binding.............. 375.401 1,224,000
Orders for Service.................. 375.501 300,000
Inventory........................... 375.503 \*\ 0
Bills of Lading..................... 375.505 300,000
Volume to Weight Conversions........ 375.507 4,000
Weight Tickets...................... 375.519 42,000
Notifications of Reasonable Dispatch 375.605 16,000
Service Delays.....................
Delivery More Than 24 Hrs. Ahead of 375.607 1,000
Time...............................
Notification of Storage-in-Transit 375.609 30,000
Liability Assignments..............
-------------------
Total Approved Burden Hours for ................ 4,370,037
Information Collection.........
------------------------------------------------------------------------
\*\ Making inventories was a usual and customary moving industry
practice that FMCSA adopted on June 11, 2003, at the suggestion of the
National Association of Consumer Agency Administrators and the
American Moving and Storage Association. The PRA regulations at 5 CFR
1320.3(b)(2) allow FMCSA to calculate no burden when the agency
demonstrates to OMB that the activity needed to comply with the
specific regulation is usual and customary.
National Environmental Policy Act
The agency analyzed this rulemaking for purposes of the National
Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321 et seq.) and
has determined that this action does not have any effect on the quality
of the environment.
Executive Order 12630 (Taking of Private Property)
This rule would not effect a taking of private property or
otherwise have takings implications under Executive Order 12630,
Governmental Actions and Interference with Constitutionally Protected
Property Rights.
Executive Order 12372 (Intergovernmental Review)
Catalog of Federal Domestic Assistance Program Number 20.217, Motor
Carrier Safety. The regulations implementing Executive Order 12372
regarding intergovernmental consultation on Federal programs and
activities do not apply to this program.
[[Page 10575]]
Executive Order 13211 (Energy Supply, Distribution, or Use)
We have analyzed this action under Executive Order 13211, Actions
Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use. This action is not a significant energy action
within the meaning of section 4(b) of the Executive Order because as a
procedural action it is not economically significant and will not have
a significant adverse effect on the supply, distribution, or use of
energy.
Executive Order 12988 (Civil Justice Reform)
This action meets applicable standards in sections 3(a) and 3(b)(2)
of Executive Order 12988, Civil Justice Reform, to minimize litigation,
eliminate ambiguity, and reduce burden.
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.
0
For the reasons set out in the preamble, FMCSA amends 49 CFR part 375
as set forth below:
PART 375--TRANSPORTATION OF HOUSEHOLD GOODS IN INTERSTATE COMMERCE;
CONSUMER PROTECTION REGULATIONS
0
1. The authority citation for part 375 continues to read as follows:
Authority: 5 U.S.C. 553; 49 U.S.C. 13301, 13704, 13707, 14104,
14706; and 49 CFR 1.73.
0
2. Revise Sec. 375.101 to read as follows:
Sec. 375.101 Who must follow these regulations?
You, a for-hire motor carrier engaged in the interstate
transportation of household goods, must follow these regulations 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 as defined in Sec. 390.5 of this
subchapter.
0
3. Revise Sec. 375.105 to read as follows:
Sec. 375.105 What are the information collection requirements of this
part?
(a) The information collection requirements of this part have been
reviewed by the Office of Management and Budget pursuant to the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) and have been
assigned OMB control number 2126-0025.
(b) The information collection requirements are found in the
following sections: Section 375.205, Section 375.207, Section 375.209,
Section 375.211, Section 375.213, Section 375.215, Section 375.217,
Section 375.303, Section 375.401, Section 375.403, Section 375.405,
Section 375.409, Section 375.501, Section 375.503, Section 375.505,
Section 375.507, Section 375.515, Section 375.519, Section 375.521,
Section 375.605, Section 375.607, Section 375.609, Section 375.803,
Section 375.805, and Section 375.807.
0
4. Amend Sec. 375.211 to revise paragraphs (a), (a)(2), and (b) to
read as follows:
Sec. 375.211 Must I have an arbitration program?
(a) You must have an arbitration program to resolve property loss
and damage disputes for individual shippers. You must establish and
maintain an arbitration program with the following 11 minimum elements:
(1) * * *
(2) Before execution of the order for service, you 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.
* * * * *
(b) You must produce and distribute a concise, easy-to-read,
accurate summary of your arbitration program, including the items in
this section.
0
5. Amend Sec. 375.217 to revise paragraph (c)(1) to read as follows:
Sec. 375.217 How must I collect charges upon delivery?
* * * * *
(c) * * *
(1) If you agree to accept payment by charge or credit card, you
must arrange with the individual shipper for the delivery only at a
time when you can obtain authorization for the shipper's credit card
transaction.
* * * * *
0
6. Revise Sec. 375.303 to read as follows:
Sec. 375.303 If I sell liability insurance coverage, what must I do?
(a) You, your employee, or an agent may sell, offer to sell, or
procure liability insurance coverage for loss or damage to shipments of
any individual shipper only when the individual shipper releases the
shipment for transportation at a value not exceeding 60 cents per pound
($1.32 per kilogram) per article.
(b) You may offer, sell, or procure any type of insurance policy on
behalf of the individual shipper covering loss or damage in excess of
the specified carrier liability.
(c) If you sell, offer to sell, or procure liability insurance
coverage for loss or damage to shipments:
(1) You must issue to the individual shipper a policy or other
appropriate evidence of the insurance that the individual shipper
purchased.
(2) 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.
(3) You must issue policies written in plain English.
(4) You must clearly specify the nature and extent of coverage
under the policy.
(5) 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.
(6) You must provide in your tariff for the provision of selling,
offering to sell, or procuring liability insurance coverage. The tariff
must also provide for the base transportation charge, including your
assumption of 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.
0
7. Amend Sec. 375.403 to revise paragraph (a)(7) to read as follows:
Sec. 375.403 How must I provide a binding estimate?
(a) * * *
(7) If you believe additional services are necessary to properly
service a shipment after the household goods are in transit, you must
inform the individual shipper what the additional services are before
performing those services. You must allow the shipper at least one hour
to determine whether he or she wants the additional services performed.
If the individual shipper agrees to pay for the additional services,
you must execute a written attachment to be made an integral part of
the bill of lading contract and have the individual shipper sign the
written attachment. This may be done through fax transmissions; e-mail;
overnight courier; or certified mail, return receipt requested. You
must bill the individual shipper for the additional services after 30
days from delivery. If the individual shipper does not agree to pay the
additional services, the carrier should
[[Page 10576]]
perform only those additional services as are required to complete the
delivery, and bill the individual shipper for the additional services
after 30 days from delivery.
* * * * *
0
8. Amend Sec. 375.405 to revise paragraph (b)(9) to read as follows:
Sec. 375.405 How must I provide a non-binding estimate?
* * * * *
(b) * * *
(9) If you believe additional services are necessary to properly
service a shipment after the household goods are in transit, you must
inform the individual shipper what the additional services are before
performing those services. You must allow the shipper at least one hour
to determine whether he or she wants the additional services performed.
If the individual shipper agrees to pay for the additional services,
you must execute a written attachment to be made an integral part of
the bill of lading contract and have the individual shipper sign the
written attachment. This may be done through fax transmissions; e-mail;
overnight courier; or certified mail, return receipt requested. You
must bill the individual shipper for the additional services after 30
days from delivery. If the individual shipper does not agree to pay the
additional services, the carrier should perform only those additional
services as are required to complete the delivery, and bill the
individual shipper for the additional services after 30 days from
delivery.
* * * * *
0
9. Amend Sec. 375.501 to revise paragraphs (a)(2), (a)(15), and (d)(2)
and to add paragraph (h) to read as follows:
Sec. 375.501 Must I write up an order for service?
(a) * * *
(2) The individual shipper's name, address, and, if available,
telephone number(s).
* * * * *
(15) Whether the individual shipper requests notification of the
charges before delivery. The individual shipper must provide you with
the fax number(s) or address(es) where you will transmit the
notifications by fax transmission; e-mail; overnight courier; or
certified mail, return receipt requested.
* * * * *
(d) * * *
(2) You may require the individual shipper to sign an incomplete
document at origin provided it contains all relevant shipping
information except the actual shipment weight and any other information
necessary to determine the final charges for all services performed.
* * * * *
(h) You have the option of placing the valuation statement on
either the order for service or the bill of lading, provided the order
for service or bill of lading states the appropriate valuation selected
by the shipper.
0
10. Amend Sec. 375.503 to revise paragraphs (b) and (c) to read as
follows:
Sec. 375.503 Must I write up an inventory?
* * * * *
(b) You must prepare the inventory before or at the time of loading
in the vehicle for transportation in a manner that provides the
individual shipper with the opportunity to observe and verify the
accuracy of the inventory if he or she so requests.
(c) You must furnish a complete copy of the inventory to the
individual shipper before or at the time of loading the shipment. A
copy of the inventory, signed by both you and the individual shipper,
must be provided to the shipper, together with a copy of the bill of
lading, before or at the time you load the shipment.
* * * * *
0
11. Amend Sec. 375.505 to revise paragraphs (a), (b)(5), (b)(14), and
(c) and to add paragraph (e) to read as follows:
Sec. 375.505 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. A bill of lading may
be combined with an order for service to include all the items required
by Sec. 375.501 of this subpart. You must furnish a partially complete
copy of the bill of lading to the individual shipper before the vehicle
leaves the residence at origin. The partially complete bill of lading
must contain all relevant shipment information, except the actual
shipment weight and any other information necessary to determine the
final charges for all services performed.
(b) * * *
(5) When you transport on a collect-on-delivery basis, the name,
address, and if furnished, the telephone number, facsimile number, or
e-mail address of a person to notify about the charges. The
notification may also be made by overnight courier or certified mail,
return receipt requested.
* * * * *
(14) Each attachment to the bill of lading. Each attachment is an
integral part of the bill of lading contract. If not provided elsewhere
to the shipper, the following three items must be added as an
attachment to the bill of lading.
(i) The binding or non-binding estimate.
(ii) The order for service.
(iii) The inventory.
* * * * *
(c) A copy of the bill of lading must accompany a shipment at all
times while in your (or your agent's) possession. Before the vehicle
leaves the residence of origin, the bill of lading must be in the
possession of the driver responsible for the shipment.
* * * * *
(e) You have the option of placing the valuation statement on
either the order for service or the bill of lading, provided the order
for service or bill of lading states the appropriate valuation selected
by the shipper.
0
12. Amend Sec. 375.515 to revise paragraph (b) to read as follows:
Sec. 375.515 May an individual shipper waive his or her right to
observe each weighing?
* * * * *
(b) If an individual shipper elects not to observe a reweighing,
the shipper must waive that right in writing. The individual shipper
may send the waiver notification via fax transmission; e-mail;
overnight courier; or certified mail, return receipt requested.
* * * * *
0
13. Amend Sec. 375.521 to revise paragraph (a) to read as follows:
Sec. 375.521 What must I do if an individual shipper wants to know
the actual weight or charges for a shipment before I tender delivery?
(a) If an individual shipper of a shipment being transported on a
collect-on-delivery basis specifically requests notification of the
actual weight or volume and charges on the shipment, you must comply
with this request. This requirement is conditioned upon the individual
shipper's supplying you with an address or telephone number where the
individual shipper will receive the communication. You must make your
notification by telephone; in person; fax transmissions; e-mail;
overnight courier; or certified mail, return receipt requested.
* * * * *
0
14. Amend Sec. 375.605 to revise paragraph (a) to read as follows:
Sec. 375.605 How must I notify an individual shipper of any service
delays?
(a) When you are unable to perform either the pickup or delivery of
a shipment on the dates or during the periods specified in the order
for service and as soon as the delay becomes
[[Page 10577]]
apparent to you, you must notify the individual shipper of the delay,
at your expense, in one of the following six ways:
(1) By telephone.
(2) In person.
(3) Fax transmissions.
(4) E-mail.
(5) Overnight courier.
(6) Certified mail, return receipt requested.
* * * * *
0
15. Amend Sec. 375.609 to revise paragraph (d) to read as follows:
Sec. 375.609 What must I do for shippers who store household goods in
transit?
* * * * *
(d) You must notify the individual shipper by facsimile
transmission; e-mail; overnight courier; or certified mail, return
receipt requested.
* * * * *
0
16. Revise Sec. 375.801 to read as follows:
Sec. 375.801 What types of charges apply to subpart H?
This subpart applies to all shipments of household goods that:
(a) Entail a balance due freight or expense bill, or
(b) Are transported on an extension of credit basis.
0
17. Revise Sec. 375.803 to read as follows:
Sec. 375.803 How must I present my freight or expense bill?
You must present your freight or expense bill in accordance with
Sec. 375.807 of this subpart.
0
18. Revise Appendix A to Part 375 to read as follows:
Appendix A to Part 375--Your Rights and Responsibilities When You Move
You must furnish this document to prospective individual
shippers as required by 49 CFR 375.213. The text as it appears in
this appendix may be reprinted in a form and manner chosen by you,
provided it complies with Sec. 375.213(b)(2) and (b)(3). You are
not required to italicize titles of sections.
YOUR RIGHTS AND RESPONSIBILITIES WHEN YOU MOVE
OMB No. 2126-0025.
Furnished by Your Mover, as Required by Federal Law
Authority: 49 U.S.C. 13301, 13704, 13707, and 14104; 49 CFR
1.73.
What Is Included in This Pamphlet?
In this pamphlet, you will find a discussion of each of these
topics:
Why Was I Given This Pamphlet?
What Are the Most Important Points I Should Remember From This
Pamphlet?
What If I Have More Questions?
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 or damage when my
mover accepts goods from me?
What actions by me limit or reduce my mover's normal liability?
What are dangerous or hazardous materials that may 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 or credit cards for my payments?
Subpart C--Service Options Provided
What service options may my mover provide?
If my mover sells 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?
Must 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?
What must my mover do if I want to know the actual weight or
charges for my shipment before delivery?
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?
Subpart G--Delivery of My shipment
May my mover ask me to sign a delivery receipt releasing 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 most shipments?
How must my mover present its freight or expense bill to me?
If I forced my mover to relinquish a collect-on-delivery
shipment before the payment of ALL charges, how must my mover
collect the balance?
What actions may my mover take to collect from me the charges in
its freight bill?
Do I have a right to file a claim to recover money for property
my mover lost or damaged?
Subpart I--Resolving Disputes With My Mover
What may I do to resolve disputes with my mover?
Why Was I Given This Pamphlet?
The Federal Motor Carrier Safety Administration's (FMCSA)
regulations protect consumers on interstate moves and define the
rights and responsibilities of consumers and household goods
carriers.
The household goods carrier (mover) gave you this booklet to
provide information about your rights and responsibilities as an
individual shipper of household goods. Your primary responsibility
is to select a reputable household goods carrier, ensure that you
understand the terms and conditions of the contract, and understand
and pursue the remedies that are available to you in case problems
arise. You should talk to your mover if you have further questions.
The mover will also furnish you with additional written information
describing its procedure for handling your questions and complaints.
The additional written information will include a telephone number
you can call to obtain additional information about your move.
What Are the Most Important Points I Should Remember From This
Pamphlet?
1. Movers must give written estimates.
2. Movers may give binding estimates.
[[Page 10578]]
3. Non-binding estimates are not always accurate; actual charges
may exceed the estimate.
4. If your mover provides you (or someone representing you) with
any partially complete document for your signature, you should
verify the document is as complete as possible before signing it.
Make sure the document contains all relevant shipping information,
except the actual shipment weight and any other information
necessary to determine the final charges for all services performed.
5. You may request from your mover the availability of
guaranteed pickup and delivery dates.
6. Be sure you understand the mover's responsibility for loss or
damage, and request an explanation of the difference between
valuation and actual insurance.
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 agree to move under a non-binding estimate, you should
confirm with your mover--in writing--the method of payment at
delivery as cash, certified check, cashier's check, money order, or
credit card.
10. Movers must offer a dispute settlement program as an
alternative means of settling loss or damage claims. Ask your mover
for details.
11. You should ask the person you speak to whether he or she
works for the actual mover or a household goods broker. A household
goods broker only arranges for the transportation. A household goods
broker must not represent itself as a mover. A household goods
broker does not own trucks of its own. The broker is required to
find an authorized mover to provide the transportation. You should
know that a household goods broker generally has no authority to
provide you an estimate on behalf of a specific mover. If a
household goods broker provides you an estimate, it may not be
binding on the actual mover and you may have to pay the actual
charges the mover incurs. A household goods broker is not
responsible for loss or damage.
12. You may request complaint information about movers from the
Federal Motor Carrier Safety Administration under the Freedom of
Information Act. You may be assessed a fee to obtain this
information. See 49 CFR part 7 for the schedule of fees.
13. You should seek estimates from at least three different
movers. You should not disclose any information to the different
movers about their competitors, as it may affect the accuracy of
their estimates.
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.
Subpart A--General Requirements
The primary responsibility for your protection lies with you in
selecting a reputable household goods carrier, ensuring you
understand the terms and conditions of your contract with your
mover, and understanding and pursuing the remedies that are
available to you in case problems arise.
Who Must Follow the Regulations?
The regulations inform motor carriers engaged in the interstate
transportation of household goods (movers) what standards they must
follow when offering services to you. You, an individual shipper,
are not directly subject to the regulations. However, your mover may
be required by the regulations to force you to pay on time. The
regulations only apply to your mover when the mover transports your
household goods by motor vehicle in interstate commerce--that is,
when you are moving from one State to another. The regulations do
not apply when your interstate move takes place within a single
commercial zone. A commercial zone is roughly equivalent to the
local metropolitan area of a city or town. For example, a move
between Brooklyn, NY, and Hackensack, NJ, would be considered to be
within the New York City commercial zone and would not be subject to
these regulations. Commercial zones are defined in 49 CFR part 372.
What Definitions Are Used in This Pamphlet?
Accessorial (Additional) Services--These are services such as
packing, appliance servicing, unpacking, or piano stair carries that
you request to be performed (or that are necessary because of
landlord requirements or other special circumstances). Charges for
these services may be in addition to the line haul charges.
Advanced Charges--These are charges for services performed by
someone other than the mover. 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 household goods
transportation service. This will include written or electronic
database listings of your mover's name, address, and telephone
number in an on-line database. This excludes listings of your
mover's name, address, and telephone number in a telephone directory
or similar publication. However, Yellow Pages advertising is
included within the definition.
Agent--A local moving company authorized to act on behalf of a
larger, national company.
Appliance Service by Third Party--The preparation of major
electrical appliances to make them safe for shipment. Charges for
these services may be in addition to the line haul charges.
Bill of Lading--The receipt for your goods and the contract for
their transportation.
Carrier--The mover transporting your household goods.
Cash on Delivery (COD)--This means payment is required at the
time of delivery at the destination residence (or warehouse).
Certified Scale--Any scale designed for weighing motor vehicles,
including trailers or semitrailers 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
that is properly inspected and certified.
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 your mover 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, the services provided, 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--A charge for carrying items up or down flights of
stairs. Charges for these services may be in addition to the line
haul charges.
Guaranteed Pickup and Delivery Service--An additional level of
service featuring 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 $100 per pound ($220 per kilogram).
Household Goods, as used in connection with transportation,
means the personal effects or property used, or to be used, in a
dwelling, when part of the equipment or supplies of the dwelling.
Transportation of the household goods must be arranged and paid for
by you or by another individual on your behalf. This may include
items moving from a factory or store when you purchase them to use
in your dwelling. You must request that these items be transported,
and you (or another individual on your behalf) must pay the
transportation charges to the mover.
Inventory--The detailed descriptive list of your household goods
showing the number and condition of each item.
Line Haul Charges--The charges for the vehicle transportation
portion of your move. These charges, if separately stated, apply in
addition to the accessorial service charges.
Long Carry--A charge for carrying articles excessive distances
between the mover's vehicle and your residence. Charges for these
services may be in addition to the line haul charges.
May--An option. You or your mover may do something, but it is
not a requirement.
Mover--A motor 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 line haul charges applicable during
the summer months.
[[Page 10579]]
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 defense
of force majeure, i.e., that the contract cannot be performed owing
to causes that are outside the control of the parties and that 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 line haul
vehicles.
Storage-In-Transit (SIT)--The temporary warehouse storage of
your shipment pending further transportation, with or without
notification to you. If you (or someone representing you) cannot
accept delivery on the agreed-upon date or within the agreed-upon
time period (for example, because your home is not quite ready to
occupy), your mover may place your shipment into SIT without
notifying you. In those circumstances, you will be responsible for
the added charges for SIT service, as well as the warehouse handling
and final delivery charges.
However, your mover also may place your shipment into SIT if
your mover was able to make delivery before the agreed-upon date (or
before the first day of the agreed-upon delivery period), but you
did not concur with early delivery. In those circumstances, your
mover must notify you immediately of the SIT, and your mover is
fully responsible for redelivery charges, handling charges, and
storage charges.
Surface Transportation Board--An agency within the U.S.
Department of Transportation that regulates household goods carrier
tariffs, among other responsibilities. The Surface Transportation
Board's address is 1925 K Street, NW., Washington, DC 20423-0001
Tele. 202-565-1674.
Tariff--An issuance (in whole or in part) containing rates,
rules, regulations, classifications, or other provisions. The
Surface Transportation Board requires that a tariff contain three
specific items. First, an accurate description of the services the
mover offers to the public. Second, the specific applicable rates
(or the basis for calculating the specific applicable rates) and
service terms for services offered to the public. Third, the mover's
tariff must be arranged in a way that allows you to determine the
exact rate(s) and service terms applicable to your shipment.
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--A charge may be applicable each time SIT
service is provided. Charges for these services may be in addition
to the line haul charges. This charge compensates the mover for the
physical placement and removal of items within the warehouse.
We, Us, and Our--The Federal Motor Carrier Safety Administration
(FMCSA).
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 and pay the transportation
charges to the mover.
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 statute controls the definitions in this pamphlet. If terms are
used in this pamphlet and the terms are defined neither 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 or Damage When My Mover
Accepts Goods From Me?
In general, your mover is legally liable for loss or damage that
occurs during performance of any transportation of household goods
and of all related services identified on your mover's lawful bill
of lading.
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. You may obtain a copy of the current
Released Rates Order by contacting the Surface Transportation Board
at the address provided under the definition of the Surface
Transportation Board. The rate may be increased annually by your
mover based on the U.S. Department of Commerce's Cost of Living
Adjustment. Your mover may have additional liability if your mover
sells 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 two different levels of liability
(options 1 and 2 below) under the terms of their tariffs and 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 60 cents per
pound ($1.32 cents per kilogram), per article. Loss or damage claims
are settled based upon the pound (kilogram) weight of the article
multiplied by 60 cents per pound ($1.32 cents per kilogram). For
example, if your mover lost or destroyed a 10-pound (4.54-kilogram)
stereo component valued at $1,000, 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: Full Value Protection (FVP)
Under this option, the mover is liable for the replacement value
of lost or damaged goods (as long as it doesn't exceed the total
declared value of the shipment). If you elect to purchase full value
protection, and 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. The minimum declared value of a shipment
under this option is $5,000 or $4.00 times the actual total weight
(in pounds) of the shipment, whichever is greater. For example, the
minimum declared value for a 4,000-pound (1,814.4-kilogram) shipment
would be $16,000. Your mover may offer you FVP with a $250 or $500
deductible, or with no deductible at all. The amount of the
deductible will affect the cost of your FVP coverage. The $4.00 per
pound minimum valuation rate may be increased annually by your mover
based on changes in the household furnishings element of the
Consumer Price Index established by the U.S. Department of Labor's
Bureau of Labor Statistics.
Unless you specifically agree to other arrangements, the mover
must assume liability for the entire shipment based upon this
option. The approximate cost for FVP is $8.50 for each $1,000 of
declared value; however, it may vary by mover. In the example above,
the valuation charge for a shipment valued at $16,000 would be
$136.00. As noted above, this fee may be adjusted annually by your
mover based on changes in the household furnishings element of the
Consumer Price Index.
Under both of these liability 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 $100 per pound ($220 per kilogram). Ask
your mover for a complete explanation of this limitation before your
move. It is your responsibility to study this provision carefully
and 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 60 cents per pound
($1.32
[[Page 10580]]
per kilogram) 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 and your mover is
responsible for loss or damage, the mover is liable only for an
amount not exceeding 60 cents per pound ($1.32 per kilogram) 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, dangerous, or hazardous materials in
your household goods without your mover's knowledge.
(2) You choose liability option 1 but ship household goods
valued at more than 60 cents per pound ($1.32 per kilogram) per
article.
(3) You fail to notify your mover in writing of articles valued
at more than $100 per pound ($220 per kilogram). (If you do notify
your mover, 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.)
What Are Dangerous or Hazardous Materials That May Limit or Reduce My
Mover's Normal Liability?
Federal law forbids you to ship hazardous materials in your
household goods boxes or luggage without informing your mover. A
violation can result in five years' imprisonment and penalties of
$250,000 or more (49 U.S.C. 5124). You could also lose or damage
your household goods by fire, explosion, or contamination.
If you offer hazardous materials to your mover, you are
considered a hazardous materials shipper and must comply with the
hazardous materials requirements in 49 CFR parts 171, 172, and 173,
including but not limited to package labeling and marking, shipping
papers, and emergency response information. Your mover must comply
with 49 CFR parts 171, 172, 173, and 177 as a hazardous materials
carrier.
Hazardous materials include explosives, compressed gases,
flammable liquids and solids, oxidizers, poisons, corrosives, and
radioactive materials. Examples: Nail polish remover, paints, paint
thinners, lighter fluid, gasoline, fireworks, oxygen bottles,
propane cylinders, automotive repair and maintenance chemicals, and
radio-pharmaceuticals.
There are special exceptions for small quantities (up to 70
ounces total) of medicinal and toilet articles carried in your
household goods and certain smoking materials carried on your
person. For further information, contact your mover.
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
your mover's prime agent agreements must be in your mover's 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 mover under whose USDOT number the
advertised service will originate.
(2) USDOT number, assigned by FMCSA, authorizing your mover to
operate. Your mover must display the information as: USDOT No.
(assigned number).
You should compare the name or trade name of the mover and its
USDOT number to the name and USDOT number on the sides of the
truck(s) that arrive at your residence. The names and numbers should
be identical. If the names and numbers are not identical, you should
ask your mover immediately why they are not. You should not allow
the mover to load your household goods on its truck(s) until you
obtain a satisfactory response from the mover's local agent. The
discrepancies may warn of problems you will have later in your
business dealings with this mover.
How Must My Mover Handle Complaints and Inquiries?
All movers are expected to respond promptly to complaints or
inquiries from you, the 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 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 loss or damage disputes involving
loss of or damage to household goods. Your mover is required to
provide you with information regarding its arbitration program. You
have the right to pursue court action under 49 U.S.C. 14704 to seek
judicial redress directly rather than participate in your mover's
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 mover, 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. You may want to be certain that the system is in
place.
Do I Have the Right to Inspect My Mover's Tariffs (Schedules of
Charges) Applicable to My Move?
Federal law requires your mover to advise you of your right to
inspect your mover's tariffs (its schedules of rates or charges)
governing your shipment. Movers' 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.
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 provision may set the periods
for filing claims. This would generally be described in Section 6 on
the reverse side of a bill of lading. A third tariff provision may
reserve your mover's right to assess additional charges for
additional services performed. For non-binding estimates, another
tariff provision may base charges upon the exact weight of the goods
transported. Your mover's tariff may contain other provisions that
apply to your move. Ask your mover what they might be, and request a
copy.
Must My Mover Have an Arbitration Program?
Your mover must have an arbitration program for your use in
resolving disputes concerning loss or damage to your household
goods. You have the right not to participate in the arbitration
program. You may pursue court action under 49 U.S.C. 14704 to seek
judicial remedies directly. Your mover must establish and maintain
an arbitration program with the following 11 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.
[[Page 10581]]
(2) Before your household goods are tendered for transport, your
mover 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 electing to use
arbitration.
(3) Upon your request, your mover must provide information and
forms it considers 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
fairly and expeditiously. 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. The arbitrator may determine the percentage of
payment of the costs for each party in the arbitration decision, but
must not make you pay more than half.
(6) Your mover must not require you to agree to use arbitration
before a dispute arises.
(7) You will be bound by arbitration for claims of $5,000 or
less if you request arbitration.
(8) You will be bound by arbitration for claims of more than
$5,000 only if you request arbitration and your mover agrees to it.
(9) If you and your mover both 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 fail, or your mover fails, 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 should be in the general order and
contain the text of appendix A to 49 CFR part 375.
What Other Information Must My Mover Provide Me?
Before your mover executes an order for service for a shipment
of household goods, your mover must furnish you with the following
four 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 notice of availability of the applicable sections of your
mover's tariff for the estimate of charges, including an explanation
that you may examine the tariff sections or have copies sent to you
upon request.
(4) 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 the freight.
(8) 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) Disclosure of the actual rates, charges, and allowances for
the transportation service, when your mover electronically presents
or transmits freight or expense bills to you. These rates must be in
accordance with the mover's applicable tariff.
(13) An indication of whether adjustments may apply to the bill.
(14) Total charges due and acceptable methods of payment.
(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 mover 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
15 days of the date when sufficient information does become
available.
May My Mover Collect Charges Upon Delivery?
Yes. Your mover must specify the form of payment acceptable at
delivery when the mover prepares an estimate and order for service.
The mover and its agents must honor the form of payment at delivery,
except when you mutually agree to a change in writing. The mover
must also specify the same form of payment when it prepares your
bill of lading, unless you agree to a change. See also ``May my
mover accept charge or credit cards for my payments?'
You must be prepared to pay 10 percent more than the estimated
amount, if your goods are moving under a non-binding estimate. Every
collect-on-delivery shipper must have available 110 percent of the
estimate at the time of delivery.
May My Mover Extend Credit to Me?
Extending credit to you is not the same as accepting your charge
or credit card(s) as payment. Your mover may extend credit to you in
the amount of the tariff charges. If your mover extends credit to
you, your mover becomes like a bank offering you a line of credit,
whose size and interest rate are determined by your ability to pay
its tariff charges within the credit period. Your mover must ensure
you will pay its tariff charges within the credit period. Your mover
may relinquish possession of freight before you pay its tariff
charges, at its discretion.
The credit period must begin on the day following presentation
of your mover's 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 applies only 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 the mover's 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
household goods transportation credit regulations in good faith in
the future before extending credit again.
May My Mover Accept Charge or Credit Cards for My Payments?
Your mover may allow you to use a charge or credit card for
payment of the freight charges. Your mover may accept charge or
[[Page 10582]]
credit cards whenever you ship with it under an agreement and tariff
requiring payment by cash or cash equivalents. Cash equivalents are
a certified check, money order, or cashier's check (a check that a
financial institution--bank, credit union, savings and loan--draws
upon itself and that is signed by an officer of the financial
institution).
If your mover allows you to pay for a freight or expense bill by
charge or credit card, your mover deems such a payment to be
equivalent to payment by cash, certified check, or cashier's check.
It must note in writing on the order for service and the bill of
lading whether you may pay for the transportation and related
services using a charge or credit card. You should ask your mover at
the time the estimate is written whether it will accept charge or
credit cards at delivery.
The mover must specify what charge or credit cards it will
accept, such as American ExpressTM,
DiscoverTM, MasterCardTM, or
VisaTM. If your mover agrees to accept payment by charge
or credit card, you must arrange with your mover for the delivery
only at a time when your mover can obtain authorization for your
credit card transaction.
If you cause a charge or credit card issuer to reverse a
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 of what the additional cost will
be. You should always consider whether other movers 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.
A third customary service option is exclusive use of a vehicle.
If for any reason you desire or require that your shipment be moved
by itself on the mover's truck or trailer, most movers will provide
such service.
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 might actually 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
feet (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 later than the
first truck. When this occurs, your transportation charges will be
determined as if the entire shipment had 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 feet (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 feet
(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 Liability Insurance Coverage, What Must My Mover Do?
If your mover provides the service of selling additional
liability insurance, your mover must follow certain regulations.
Your mover, its employees, or its agents, may sell, offer to
sell, or procure additional liability insurance coverage for you for
loss or damage to your shipment if you release the shipment for
transportation at a value not exceeding 60 cents per pound ($1.32
per kilogram) per article.
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 it.
Your mover's tariff must provide for liability insurance
coverage. The tariff must also provide for the base transportation
charge, including its assumption of full liability for the value of
the shipment. This would offer you a degree of protection 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?
We require your mover to prepare a written estimate on every
shipment transported for you. You are entitled to a copy of the
written estimate when your mover prepares it. 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. You and your mover must sign the
estimate of charges. Your mover must provide you with a dated copy
of the estimate of charges at the time you sign the estimate.
You should be aware that if you receive an estimate from a
household goods broker, the mover is not required to accept the
estimate. Be sure to obtain a written estimate from the mover if a
mover tells you orally that it will accept the broker's estimate.
Your mover must specify the form of payment the mover and its
delivering agent will honor at delivery. Payment forms may include
but are not limited to cash, certified check, money order, cashier s
check, a specific charge card such as American Express
TM, a specific credit card such as Visa TM,
and your mover s own credit.
If your mover provides you with an estimate based on volume that
will later be converted to a weight-based rate, the mover must
provide you an explanation in writing of the formula used to
calculate the conversion to weight. Your mover must specify that the
final charges will be based on actual weight and services. Before
loading your household goods, and upon mutual agreement between you
and your mover, your mover may amend an estimate of charges. Your
mover may not amend the estimate after loading the shipment.
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 your mover. Your mover will base the
final charges upon the actual weight of your shipment, the services
provided, and its tariff provisions in effect. You must be prepared
to pay 10 percent more than the estimated amount at delivery.
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.
[[Page 10583]]
When you receive a binding estimate, you cannot be required to
pay any more than the estimated amount at delivery. If you have
requested the mover provide more services than those included in the
estimate, the mover must not demand full payment for those added
services at time of delivery. Instead, the mover must bill for those
services later, as explained below. Such services might include
destination charges that often are not known at origin (such as 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, money order, or
cashier's check. The charges are due your mover at the time of
delivery unless your mover agrees, before you move, to extend credit
or to accept payment by a specific charge card such as American
Express TM or a specific credit card such as Visa
TM. 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
eight elements:
(1) Your mover must retain a copy of each binding estimate as an
attachment to the bill of lading.
(2) Your mover must clearly indicate upon each binding
estimate's face that the estimate is binding upon you and your
mover. Each binding estimate must also clearly indicate on its face
that 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, before loading your shipment, your mover believes you
are tendering additional household goods or are requiring additional
services not identified in the binding estimate, and you and your
mover cannot reach an agreement, your mover may refuse to service
the shipment. If your mover agrees to service the shipment, your
mover must do one of the following three things:
(a) Reaffirm the binding estimate.
(b) Negotiate a revised written binding estimate listing the
additional household goods or services.
(c) Add an attachment to the contract, in writing, stating you
both 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 to agree with you to treat the
original estimate as 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 two paragraphs.
(6) Your mover may believe additional services are necessary to
properly service your shipment after your household goods are in
transit. Your mover must inform you what the additional services are
before performing them. Your mover must allow you at least one hour
to determine whether you want the additional services performed.
Such additional services include carrying your furniture up
additional stairs or using an elevator. If these services do not
appear on your mover's estimate, your mover must deliver your
shipment and bill you later for the additional services.
If you agree to pay for the additional services, your mover must
execute a written attachment to be made an integral part of the bill
of lading and have you sign the written attachment. This may be done
through fax transmissions. You will be billed for the additional
services 30 days following the date of delivery.
(7) If you add additional services after your household goods
are in transit, you will be billed for the additional services but
only be expected to pay the full amount of the binding estimate to
receive delivery. Thirty days after delivery, your mover must bill
you for the balance of any remaining charges. For example, if your
binding estimate shows total charges at delivery should be $1,000
but your actual charges at destination are $1,500, your mover must
deliver the shipment upon payment of $1,000. The mover must bill you
for the remaining $500 after 30 days from delivery.
(8) Failure of your mover to relinquish possession of a shipment
upon your offer to pay the binding estimate amount constitutes your
mover's 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
Your mover is not permitted to charge you for giving a non-
binding estimate.
A non-binding estimate is not a bid or contract. Your mover
provides it to you 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 your mover's tariffs. Federal
law requires your mover to collect the charges shown in its tariffs,
regardless of what your mover writes in its non-binding estimates.
That is why it is important to ask for copies of the mover's tariffs
before deciding on a mover. The charges contained in movers' tariffs
are essentially the same for the same weight shipment moving the
same distance. If you obtain different non-binding estimates from
different movers, you must pay only the amount specified in your
mover's tariff. Therefore, a non-binding estimate may have no effect
on the amount that you will ultimately have to pay.
You must be prepared to pay 10 percent more than the estimated
amount at the time of delivery. Every collect-on-delivery shipper
must have available 110 percent of the estimate at the time of
delivery. If you order additional services from your mover after
your goods are in transit, the mover will then bill you 30 days
after delivery for any remaining charges.
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 related 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 mover enters the
amount estimated on each form it prepares.
Other requirements of non-binding estimates include the
following nine 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 that all charges on shipments
moved under non-binding estimates will be those appearing in your
mover's tariffs applicable to the transportation. If your mover
provides a non-binding estimate of approximate costs, your mover is
not bound by such an estimate.
(3) Your mover must furnish non-binding estimates without charge
and in writing to you.
(4) Your mover must retain a copy of each non-binding estimate
as an attachment to the bill of lading.
(5) Your mover must clearly indicate on the face of a non-
binding estimate that 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 estimate the entire shipment and all services to be
provided.
(7) If, before loading your shipment, your mover believes you
are tendering additional household goods or requiring additional
services not identified in the non-binding estimate, and you and
your mover cannot reach an agreement, your mover may refuse to
service the shipment. If your mover agrees to service the shipment,
your mover must do one of the following two things:
(a) Reaffirm the non-binding estimate.
(b) Negotiate a revised written non-binding estimate listing the
additional household goods or services.
(8) Once your mover loads your shipment, your mover's failure to
execute a new estimate signifies it has reaffirmed the original non-
binding estimate. Your mover may not collect more than 110 percent
of the amount of this estimate at destination.
(9) Your mover may believe additional services are necessary to
properly service your shipment after your household goods are in
transit. Your mover must inform you what the additional services are
before performing them. Your mover must allow you at least one hour
to determine whether you want the additional services performed.
Such additional services include carrying your furniture up
additional stairs or using an elevator. If these services do not
appear on your mover's estimate, your mover must deliver your
shipment and bill you later for the additional services.
If you agree to pay for the additional services, your mover must
execute a written attachment to be made an integral part of the bill
of lading and have you sign the written attachment. This may be done
through fax
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transmissions. You will be billed for the additional services after
30 days from delivery.
(10) If you add additional services after your household goods
are in transit, you will be billed for the additional services. To
receive delivery, however, you are required to pay no more than 110
percent of the non-binding estimate. Thirty days after delivery,
your mover must bill you for any remaining balance. For example, if
your non-binding estimate shows total charges at delivery should be
$1,000 but your actual charges at destination are $1,500, your mover
must deliver the shipment upon payment of $1,100. The mover must
bill you for the remaining $400 after 30 days from delivery.
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
each move performed 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?
If your total bill is 110 percent or less of the non-binding
estimate, the mover can require payment in full upon delivery. If
the bill exceeds 110 percent of the non-binding estimate, your mover
must relinquish possession of the shipment at the time of delivery
upon payment of 110 percent of the estimated amount. Your mover
should have specified its acceptable form of payment on the
estimate, order for service, and bill of lading. Your mover's
failure to relinquish possession of a shipment after you 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 bill for the payment of the balance of any
remaining charges after 30 days from delivery.
Subpart E--Pickup 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-upon dates for pickup or
delivery of your shipment, or agree to any change in the non-binding
estimate, your mover may prepare a written change to the order for
service. The written change must be attached to the order for
service.
The order for service must contain the following 15 elements:
(1) Your mover's name and address and the USDOT number assigned
to your mover.
(2) Your name, address and, if available, telephone number(s).
(3) The name, address, and telephone number of the delivering
mover's office or agent at or nearest to the destination of your
shipment.
(4) A telephone number where you may contact your mover or its
designated agent.
(5) One of the following three dates and times:
(i) The agreed-upon pickup date and agreed delivery date of your
move.
(ii) The agreed-upon period(s) of the entire move.
(iii) 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) The names and addresses of any other motor carriers, when
known, that will participate in interline transportation of the
shipment.
(7) The form of payment your mover will honor at delivery. The
payment information must be the same as was entered on the estimate.
(8) The terms and conditions for payment of the total charges,
including notice of any minimum charges.
(9) The maximum amount your mover will demand at the time of
delivery to obtain possession of the shipment, when transported on a
collect-on-delivery basis.
(10) The Surface Transportation Board's required released rates
valuation statement, and the charges, if any, for optional valuation
coverage. The STB's required released rates may be increased
annually by your mover based on the U.S. Department of Commerce's
Cost of Living Adjustment.
(11) A complete description of any special or accessorial
services ordered and minimum weight or volume charges applicable to
the shipment.
(12) Any identification or registration number your mover
assigns to the shipment.
(13) For non-binding estimated charges, your mover's reasonably
accurate 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.
(14) 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.
(15) 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. Your mover must provide you the
opportunity to rescind the order for service without any penalty for
a three-day period after you sign the order for service, if you
scheduled the shipment to be loaded more than three days after you
sign the order.
Your mover should provide you with documents that are as
complete as possible, and with all charges clearly identified.
However, as a practical matter, your mover usually cannot give you a
complete bill of lading before transporting your goods. This is both
because the shipment cannot be weighed until it is in transit and
because other charges for service, such as unpacking, storage-in-
transit, and various destination charges, cannot be determined until
the shipment reaches its destination.
Therefore, your mover can require you to sign a partially
complete bill of lading if it contains all relevant information
except the actual shipment weight and any other information
necessary to determine the final charges for all services provided.
Signing the bill of lading allows you to choose the valuation
option, request special services, and/or acknowledge the terms and
conditions of released valuation.
Your mover also may provide you, strictly for informational
purposes, with blank or incomplete documents pertaining to the move.
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 it transported for
at least one year from the date your mover wrote the order.
Your mover must inform you, before or at the time of loading, if
the mover reasonably expects a special or accessorial service is
necessary to transport a shipment safely. Your mover must refuse to
accept the shipment when your mover reasonably expects a special or
accessorial service is necessary to transport a shipment safely, but
you refuse to purchase the special or accessorial service. Your
mover must make a written note if you refuse any special or
accessorial services that your mover reasonably expects to be
necessary.
Must My Mover Write Up an Inventory of the Shipment?
Yes. Your mover must prepare an inventory of your shipment
before or at the time of 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 existence and 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 that the inventory lists every item in the
shipment and that the entries regarding the condition of each item
are correct. You have the right to note any disagreement. If an item
is missing or damaged when your mover delivers the shipment, your
subsequent 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 must attach the complete inventory
to the bill of lading as an integral part of 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
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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 or
at the time of 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 14 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) The form of payment your mover will honor at delivery. The
payment information must be the same that was entered on the
estimate and order for service.
(5) 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.
(6) For non-guaranteed service, the agreed-upon date or period
of time for pickup of the shipment and the agreed-upon date or
period of time for the delivery of the shipment. The agreed-upon
dates or periods for pickup and delivery entered upon the bill of
lading must conform to the agreed-upon dates or periods of time for
pickup and delivery entered upon the order for service or a proper
amendment to the order for service.
(7) For guaranteed service, the dates for pickup and delivery
and any penalty or per diem entitlements due you under the
agreement.
(8) The actual date of pickup.
(9) The identification number(s) of the vehicle(s) in which your
mover loads your shipment.
(10) The terms and conditions for payment of the total charges
including notice of any minimum charges.
(11) 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.
(12) The Surface Transportation Board's required released rates
valuation statement, and the charges, if any, for optional valuation
coverage. The Board's required released rates may be increased
annually by your mover based on the U.S. Department of Commerce's
Cost of Living Adjustment.
(13) Evidence of any insurance coverage sold to or procured for
you from an independent insurer, including the amount of the premium
for such insurance.
(14) Each attachment to the bill of lading. Each attachment is
an integral part of the bill of lading contract. If not provided to
you elsewhere by the mover, the following three items must be added
as attachments:
(i) The binding or non-binding estimate.
(ii) The order for service.
(iii) The inventory.
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 on 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
shipments it transported 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 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 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 that
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 nonperformance.
This may occur when you do not inform your mover of the exact
delivery requirements. For example, because of restrictions trucks
must follow at your new location, the mover may not be able to take
its truck down the street of your residence and may need to shuttle
the shipment using another type of vehicle.
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--that is, a set number of cubic feet (or yards or meters)--
the weight of the shipment likewise will not affect the charges you
will pay.
Your mover must determine the weight of your shipment before
requesting you to pay for any charges dependent upon your shipment's
weight.
Most movers have a minimum weight or volume charge for
transporting a shipment. Generally, the minimum is the charge for
transporting a shipment of at least 3,000 pounds (1,362 kilograms).
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 transporting your 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, not upon 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