[Federal Register: May 15, 1998 (Volume 63, Number 94)] [Proposed Rules] [Page 27125-27158] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr15my98-44] [[Page 27125]] _______________________________________________________________________ Part II Department of Transportation _______________________________________________________________________ Federal Highway Administration _______________________________________________________________________ 49 CFR Parts 375 and 377 Transportation of Household Goods; Consumer Protection Regulations; Proposed Rule [[Page 27126]] DEPARTMENT OF TRANSPORTATION Federal Highway Administration 49 CFR Parts 375 and 377 [Docket No. FHWA-97-2979] RIN 2125-AE30 Transportation of Household Goods; Consumer Protection Regulations AGENCY: Federal Highway Administration (FHWA), DOT. ACTION: Notice of proposed rulemaking (NPRM); request for comments. ----------------------------------------------------------------------- SUMMARY: The FHWA is proposing to amend the regulations governing the transportation of household goods. These regulations protect consumers who ship household goods by motor vehicle. This action is necessary to implement the ICC Termination Act of 1995 (ICCTA) and to update the regulations. This proposal would make the regulations easier to read and understand, require household goods carriers to file an annual arbitration report in place of the outdated annual performance report, address hostage freight problems, modify a consumer protection publication, and make conforming and technical amendments. DATES: Comments to this NPRM should be received no later than July 14, 1998. Late comments will be considered to the extent practicable. ADDRESSES: Signed, written comments should refer to the docket number appearing at the top of this document and must be submitted to the Docket Clerk, U.S. DOT Dockets, Room PL-401, 400 Seventh Street, SW., Washington, DC 20590-0001. All comments received will be available for examination at the above address between 10 a.m. and 5 p.m., e.t., Monday through Friday, except Federal holidays. Those desiring notification of receipt of comments must include a self-addressed, stamped envelope or postcard. FOR FURTHER INFORMATION CONTACT: Mr. Thomas Vining, Chief, Licensing and Insurance Division (HIA-30), Office of Motor Carrier Information Analysis, (202) 358-7055, Mr. Michael Falk, Motor Carrier Law Division, Office of the Chief Counsel (HCC-20), (202) 366-1384, or Mr. David Miller, Office of Motor Carrier Research and Standards (HCS-10), (202) 366-1790, Federal Highway Administration, Department of Transportation, 400 Seventh Street, SW., Washington, DC 20590. SUPPLEMENTARY INFORMATION: Electronic Access Internet users may access all comments received by the U.S. DOT Dockets, Room PL-401, by using the universal resource locator (URL): http://dms.dot.gov. It is available 24 hours each day, 365 days each year. Please follow the instructions on-line for more information and help. You may download an electronic copy of this document using a personal computer, modem, and suitable communications software from the Federal Register Electronic Bulletin Board Service at (202) 512-1661. Internet users may reach the Federal Register's home page at URL: http://www.nara.gov/nara/fedreg and at the Government Printing Office's databases at URL: http://www.access.gpo.gov/su__docs. Background Many customers of household goods carriers, particularly those customers who move at their own expense and are infrequent users of transportation services, are unsophisticated and less able to protect themselves than commercial shippers. In order to ensure these consumers are protected, the Interstate Commerce Commission (ICC) prescribed regulations governing the transportation of household goods. These regulations were codified at 49 CFR Part 1056. Following the termination of the ICC, the responsibility for the household goods regulations was delegated to the Secretary of Transportation pursuant to the ICCTA, Pub. L. 104-88, 109 Stat. 803, effective January 1, 1996. The Surface Transportation Board (STB) and the FHWA transferred these regulations from 49 CFR chapter X, Part 1056 to 49 CFR chapter III, Part 375 on October 21, 1996. See 61 FR 54706. On December 27, 1996 (61 FR 68162), the Secretary of Transportation delegated to the Federal Highway Administrator the responsibilities to carry out certain functions and exercise the authority vested in the Secretary under the ICCTA, including 49 U.S.C. 14104, Household goods carrier operations. In a report to Congress dated October 24, 1994, the ICC reported it received over 8,000 complaints from household goods shippers between October 1, 1992, and August 25, 1994. Since January 1, 1996, the FHWA has also received a high volume of complaints from household goods shippers. The FHWA believes regulations designed to protect this large population of unsophisticated shippers continue to be necessary. Enactment of the ICCTA requires deletion from the regulations of all references to the former ICC and repealed sections of the Interstate Commerce Act, revision of the regulations to codify the transfer to the FHWA of oversight responsibilities for the household goods moving industry, and other editorial corrections. We are also redrafting all sections in a more reader-friendly style for clarity. New Definition of Household Goods Since the ICCTA changed the definition of ``household goods'' to eliminate office and trade show movements, it is no longer appropriate to include this kind of transportation within the scope of the household goods regulations. Therefore, we are making conforming changes to the definitions contained in 49 CFR 375.103. Elimination of Former ICC Dispute Resolution Functions The House of Representatives' report accompanying the ICCTA specifically requested that DOT refrain from allocating scarce resources to resolve private disputes, but only to oversee the regulations. Congress modified the arbitration system to afford consumers a forum for resolving loss and damage claims arising from transportation of household goods and to replace the informal dispute resolution functions conducted by the ICC without a statutory requirement. Congress wants ``private, commercial disputes to be resolved the way all other commercial disputes are resolved-- by the parties.'' See H.R. Rep. No. 104-311, at 87-88 (1995). See also pages 117 and 121. Your Rights and Responsibilities When You Move The FHWA is proposing to retain most of the former ICC's regulations, including the requirement for motor common carriers of household goods to copy or publish, and distribute a modified version of the ICC's consumer protection publication ``Your Rights And Responsibilities When You Move.'' This modified publication would provide shippers of household goods the same type of common consumer protection information previously required by the ICC. Prior to contracting with an individual shipper, a motor common carrier of property transporting household goods would be required to provide the individual shipper with the booklet explaining the individual shipper's rights and responsibilities under Federal law. The rights and responsibilities booklet basically restates in plain, common English a household goods carrier's obligation to follow specifically 49 CFR Parts 375 and [[Page 27127]] 377, and generally other regulations for all motor carriers. The FHWA proposes to print the entire revised text of the ``Your Rights and Responsibilities When You Move'' booklet in appendix A to 49 CFR 375. Household goods carriers would furnish the text of appendix A to their customers. The large number of household goods carriers located throughout the country would ensure appendix A is readily available to any individual who contracts with a household goods carrier. Discontinuance of Annual Performance Reports Under 49 CFR 375.18, household goods carriers were required to submit annual performance reports on Form OCE-101 containing 16 items regarding the number of shipments transported, the number and type of estimates provided, charges billed, timeliness of pickups and deliveries, and claims for loss and damage. The FHWA proposes to abolish this requirement. This is consistent with the intent of the Household Goods Transportation Act of 1980 (Pub. L. 96-454, 94 stat. 2011) and the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) to minimize paperwork requirements on household goods carriers in a manner not compromising the protection of individual shippers. Despite the ICC's best efforts to ensure accurate reporting by requiring carrier certification of the reports, the FHWA is not convinced the performance data is reliable. Periodic audits would be necessary to ensure the performance information reported is accurate. Resources simply do not exist for such review of the carriers. Any value this information would be to the individual shipper would come from a comparative analysis of the data submitted by the carriers. However, requiring motor carriers to report comparative data the FHWA cannot verify is inherently unfair, especially to those carriers who scrupulously comply with the reporting requirements. Notifying Shippers of Arbitration Procedures The overwhelming majority of household goods complaints received by the ICC, and now the FHWA, involve loss and damage claims. The ICCTA imposes an arbitration requirement to handle such claims against all motor carriers providing transportation of household goods in interstate commerce. 49 U.S.C. 14708. The FHWA proposes to amend the former ``information for shippers'' section of the regulations, formerly 49 CFR 375.2 (proposed to be Sec. 375.213), to replace the required summary of the carrier's dispute settlement program with a summary of the arbitration procedure. Arbitration Program Review by the FHWA The ICCTA also requires the FHWA to-- ``complete a review of the dispute settlement program established under this section. If, after notice and opportunity for comment, the [FHWA] determines that changes are necessary to such a program to ensure the fair and equitable resolution of disputes under this section, the [FHWA must] implement such changes and transmit a report to Congress on such changes.'' 49 U.S.C. 14708(g). The FHWA is reviewing the dispute settlement (arbitration) program established by 49 U.S.C. 14708. The FHWA would like comments from the public whether the arbitration program Congress mandated ensures fair and equitable resolution of disputes. If you believe the arbitration program fails to ensure fair and equitable resolutions of disputes, please provide specific comments why it does not and what you would change to make it more fair and equitable. The FHWA will consider these comments in determining whether changes must be made to the arbitration program. Arbitration Results Report The FHWA proposes to require all carriers who presently must file an annual performance report, to file in its place an ``arbitration results report.'' This new report would list the motor carrier's arbitration requests and dispositions. Such a report would assist the FHWA in carrying out its statutory responsibility to report to Congress regarding the dispute settlement program, and to provide individual shippers with relevant claims handling information. This report will reduce the existing reporting burden on carriers and provide relevant information concerning the most common household goods shipper complaint, unsatisfactory settlement of loss and damage claims. The FHWA also proposes to apply a modified version of the ICC's performance report certification requirement to the arbitration results report. The existing certification requires a verification under penalty of perjury and identifies 18 U.S.C. 1001 as the Federal criminal penalty applicable to false statements made in the report. This provision provides for penalties if carriers or their employees fail to make a truthful and accurate report to the Secretary of Transportation. In addition, the FHWA proposes to reference the civil penalty provisions under 49 U.S.C. 14901 by incorporating them into proposed Sec. 375.1001. The FHWA believes arbitration data submitted by the carriers will be inherently more reliable than the performance- based data in the current reports because of the formal nature of the proceedings and the ability of the FHWA to easily spot check the reported results. Hostage Freight The FHWA has been receiving an increasing number of complaints from individual shippers who claim carriers refuse to deliver their goods after the individual shippers offer to pay 110 percent of the estimate as prescribed by 49 CFR 375.3(d). These so-called hostage freight situations defeat the protections of the 110-percent rule and cause serious inconvenience to individual shippers. The FHWA does not have the resources to seek court injunctions to require these carriers to comply with the regulations and release the household goods. The FHWA, therefore, proposes changes to enhance an individual shipper's claim for damages based upon expenses incurred as a result of the carrier's refusal to deliver the household goods, reduce the number of disputes contributing to delays in delivery, and restore price certainty to the transaction. The FHWA proposes to include in Sec. 375.407 language expressly providing that an individual shipper may assert a cargo delay claim in circumstances where a carrier fails to relinquish a shipment upon the shipper's offer to pay 110 percent of the non-binding estimate. The proviso would state any shipment deliberately withheld from delivery by a carrier after an individual shipper has offered to pay 110 percent of the estimate constitutes a failure to transport a shipment with reasonable dispatch. Thus, hostage freight situations could be the basis for cargo delay claims under 49 CFR part 370. In addition, the FHWA proposes to require carriers provide each individual shipper a written estimate. The FHWA believes most carriers already provide estimates to individual shippers, though we have heard from individual shippers who allege an estimate was not provided. In many instances, individual shippers allege their carrier explained the price provided to the individual shipper was a ``rate quote'' but not an estimate. The FHWA would not require the estimate be binding. The FHWA would continue to allow carriers to negotiate with individual shippers whether the estimated charges would be binding or non-binding upon the parties. [[Page 27128]] The regulations also would provide, in Sec. 375.403, that a carrier transporting a shipment under a binding estimate reaffirms that estimate and waives any subsequent claims about additional transported items unless its objection is made at the time of pickup. Once the objection is made, the carrier would be required to execute a new binding or non-binding estimate. Proposed Changes to the Credit Regulations The American Movers Conference and the Household Goods Carrier's Bureau Committee filed a petition with the ICC on May 3, 1995, requesting an amendment to the credit regulations (now contained in 49 CFR 377.215) to prescribe an increased minimum service charge for the extension of credit. They also petitioned to require assessment of the service charge until the freight bill is paid. Ex Parte No. MC-1 (Sub- No.6), Payment of Rates and Charges of Motor Carriers--Credit Regulations--Household Goods (Petition of American Movers Conference and Household Goods Carrier's Bureau To Amend Credit Regulations). On March 26, 1996, the STB served a notice on the parties indicating the ICCTA transferred the regulatory function for the proceeding from the ICC to the Secretary of Transportation. The responsibility for considering such regulatory issues has been delegated to the FHWA. The American Movers Conference changed its name to the American Moving and Storage Association (AMSA) on January 1, 1998. The household goods transportation regulations require carriers to present their freight bills within 15 days of date of delivery and provide for a credit period of 7 days (excluding weekends and legal holidays). The regulations further provide for the automatic extension of the prescribed 7-day credit period to a total of 30 calendar days for any shipper who has not paid the freight bill within the 7-day period. However, a service charge of one percent of the amount of the freight bill, subject to a minimum charge of $10.00, must be applied to the extended credit period. The Petitioners requested the ICC to amend this regulation to do both of the following two things: (1) Increase the minimum service charge from $10.00 to $20.00; and (2) Extend the one percent service charge to each 30-day period or fraction thereof after the initial credit period. The Petitioners noted that since the existing credit regulation does not assess any credit charge to shippers who have not paid the carrier's freight bill within the initial 30-day credit period, delinquent shippers thereafter obtain free credit indefinitely. The ICC took no action on this petition. The FHWA will incorporate this petition in this rulemaking and discontinue Ex Parte No. MC-1 (Sub-No. 6). For purposes of this rulemaking, the FHWA proposes to adopt the above-described amendments to the credit regulations and solicits public comment regarding their propriety. The FHWA also proposes to move the credit regulations pertaining to household goods transportation from 49 CFR 377.215(c) to 49 CFR 375.807 for ease of reference. On-Board Trailer Scales The public has alerted the FHWA to a few motor carriers who have begun to use on-board trailer scales. These are generally non-certified scales and expressly prohibited. The FHWA believes their use is a violation of the former ICC's regulations. The FHWA is affirming the prohibited use of such on-board trailer scales. The FHWA, however, solicits comments regarding the accuracy, reliability, and acceptability of such non-certified on-board trailer scales, preferably supported by scientific data. The Maximum Threshold for Weighing Shipments Upon a Certified Platform or Warehouse Scale The AMSA has asked the FHWA to consider amending Sec. 375.7(a)(5) by raising the 454 kilogram (1,000 pound) maximum threshold requirement for weighing shipments upon a certified platform or warehouse scale. This threshold requirement has remained unchanged since 1939, when the ICC first allowed the practice of weighing small shipments on platform or warehouse scales rather than weighing the entire motor vehicle. See 17 M.C.C. 467. The AMSA's October 1997 petition states average weights for private transferee C.O.D. household goods shipments have increased from 4,611 pounds in 1982 to 6,023 pounds today. The AMSA believes the industry now considers 1,362 kilograms or less (3,000 pounds or less) shipments to be small rather than 454 kilograms or less (1,000 pounds or less) shipments. Although the rationale behind the 1,000 pounds weight threshold in Sec. 375.7(a)(5) is unclear, it is possible that the ICC may have linked the 1,000 pounds weight threshold to tariff provisions assessing a minimum charge for shipments weighing less than 1,000 pounds. The FHWA believes raising the limit to a higher maximum (i.e., 1,362 kilograms) might, in essence, allow movers to charge a minimum rate at the higher weight threshold when the shipment actually weighs less than the higher weight threshold. We are concerned that by adopting the AMSA's definition of a small shipment as one weighing 3,000 pounds or less (1,362 kilograms or less), we could be perceived as giving our blessing to an increase in the minimum rate threshold in household goods carriers' tariffs. The FHWA has no authority to approve or disapprove of household goods carriers' tariff charges. The statute gives this responsibility to the STB. In addition, the FHWA believes that should an increase in the weight threshold result in higher minimum charges for small shipments, there may be a negative impact upon highway and motor carrier safety. Higher minimum charges might force individual shippers to reconsider using professional carriers to perform the transportation service. These individual shippers, who would otherwise ship their own household goods, might decide to save money by transporting their own household goods using rental trucks. The FHWA believes allowing more individual shippers to operate large, unfamiliar rental vehicles, would add more risks to highway safety than maintaining a lower weight threshold, thereby maintaining a lower minimum charge. The risks might include more accidents, near misses, and personal injuries due to carrying goods improperly or unsecured. The FHWA would like comments about whether the FHWA should retain, raise, or lower the 454 kilogram maximum threshold. In your comments, please provide any historical background information you may have on this subject. Replacement of the Term ``Money Order'' The FHWA is proposing to replace the individual shipper's use of the term ``money order'' to pay for transportation of household goods with a much more general term, a ``cashier's check.'' The FHWA proposes to use this term, as it is defined in 12 CFR 229.2(i). This would allow individual shippers to use financial or depository institutions' official checking systems, or U.S. Postal Service money orders. The regulations at 12 CFR 229.2(k) define a money order as a check, too. Thus, an individual shipper could use a cashier's ``money order.'' The FHWA believes the use of general money orders may compromise the individual shipper's financial safety during a time period when the individual shipper is at a greater risk of losing his ability to pay [[Page 27129]] for transportation charges. The FHWA believes the use of money orders, generally payable to the bearer, increases the risks of lost funds. The FHWA believes the use of a cashier's check (including a U.S. Postal Service money order) is much safer, allowing the check to be replaced more easily. The individual shipper might ask a financial institution (e.g., a State savings bank, a national bank, credit union, or savings association) or a U.S. Post Office to draw an official cashier's check for the transportation charges estimated and possibly another check for ten percent of the estimated charges, in case the shipment moves under a non-binding estimate and the resulting transportation charges are more than the non-binding estimate. The FHWA believes the use of the 12 CFR 229.2 definitions will provide consistency. This would eliminate possible duplicative and contradictory definitions of these common terms. The FHWA solicits comments regarding this change. Order of the Proposed Regulations The following table specifies the proposed section of each rule, the old section (if any) where the rule originated, and the title of the proposed section. Part 375.--Transportation of Household Goods in Interstate Commerce ---------------------------------------------------------------------------------------------------------------- Proposed section Old section Title of proposed section ---------------------------------------------------------------------------------------------------------------- SUBPART A--GENERAL REQUIREMENTS ---------------------------------------------------------------------------------------------------------------- 375.101.................................. 375.1(a)................................ Who must follow these regulations? 375.103.................................. 375.1(b)................................ What are the definitions of terms used in this part? ---------------------------------------------------------------------------------------------------------------- SUBPART B--BEFORE OFFERING SERVICES TO CUSTOMERS Liability Considerations ---------------------------------------------------------------------------------------------------------------- 375.201.................................. 375.12.................................. What is my normal liability for loss and damage when I accept goods from an individual shipper? 375.203.................................. What actions of an individual shipper 375.12................................... may limit or reduce my normal liability?. ---------------------------------------------------------------------------------------------------------------- General Responsibilities ---------------------------------------------------------------------------------------------------------------- 375.205.................................. 375.14.................................. May I have agents? 375.207.................................. 375.17.................................. What items must be in my advertisements? 375.209.................................. 375.13.................................. How must I handle complaints and inquiries? 375.211.................................. None.................................... Must I have an arbitration program? 375.213.................................. 375.2................................... What information must I provide to a prospective individual shipper? Collecting Transportation Charges ---------------------------------------------------------------------------------------------------------------- 375.215.................................. 373, subpart A.......................... How must I collect charges? 375.217.................................. 377, subpart A.......................... May I collect charges upon delivery? 375.219.................................. 377.215(a) and (b)...................... May I extend credit to shippers? 375.221.................................. 375.19.................................. May I use a charge card plan for payments? ---------------------------------------------------------------------------------------------------------------- SUBPART C--SERVICE OPTIONS PROVIDED ---------------------------------------------------------------------------------------------------------------- 375.301.................................. None.................................... What service options may I provide? 375.303.................................. 375.11.................................. If I sell excess liability insurance coverage, what must I do? ---------------------------------------------------------------------------------------------------------------- SUBPART D--ESTIMATING CHARGES ---------------------------------------------------------------------------------------------------------------- 375.401.................................. None.................................... Must I estimate charges? 375.403.................................. 375.3................................... How must I provide a binding estimate? 375.405.................................. 375.3................................... How must I provide a non- binding estimate? 375.407.................................. 375.3................................... Under what circumstances must I relinquish possession of a collect-on- delivery shipment transported under a non- binding estimate? ---------------------------------------------------------------------------------------------------------------- SUBPART E--PICK UP OF SHIPMENTS OF HOUSEHOLD GOODS Before Loading ---------------------------------------------------------------------------------------------------------------- 375.501.................................. 375.5................................... Must I write up an order for service? 375.503.................................. 375.6................................... Must I write up a bill of lading? ---------------------------------------------------------------------------------------------------------------- Weighing The Shipment ---------------------------------------------------------------------------------------------------------------- 375.505.................................. 375.7................................... Must I determine the weight of a shipment? 375.507.................................. 375.7................................... What is a certified scale? 375.509.................................. 375.7................................... How must I determine the weight of a shipment? 375.511.................................. 375.7................................... May I use an alternative method for shipments weighing 454 kilograms or less? 375.513.................................. 375.7................................... Must I give the individual shipper an opportunity to observe the weighing? 375.515.................................. 375.7................................... May an individual shipper waive his/her right to observe each weighing? 375.517.................................. 375.7................................... May an individual shipper demand re-weighing? 375.519.................................. 375.7................................... Must I obtain weight tickets? [[Page 27130]] 375.521.................................. 375.7................................... What must I do if an individual shipper wants to know the actual weight or charges for a shipment before I tender delivery? ---------------------------------------------------------------------------------------------------------------- SUBPART F--TRANSPORTATION OF SHIPMENTS ---------------------------------------------------------------------------------------------------------------- 375.601.................................. 375.8................................... Must I transport the shipment in a timely manner? 375.603.................................. 375.8................................... When must I tender a shipment for delivery? 375.605.................................. 375.8................................... How must I notify an individual shipper of any service delays? 375.607.................................. 375.8................................... What must I do if I am able to tender a shipment for final delivery more than 24 hours before a specified date? 375.609.................................. 375.12(c)............................... What must I do for shippers who store household goods in transit? ---------------------------------------------------------------------------------------------------------------- SUBPART G--DELIVERY OF SHIPMENTS ---------------------------------------------------------------------------------------------------------------- 375.701.................................. 375.10.................................. May I provide for a release of liability on my delivery receipt? 375.703.................................. 375.3(d)................................ What is the maximum collect- on-delivery amount I may demand at the time of delivery? 375.705.................................. 375.16.................................. If a shipment is transported on more than one vehicle, what charges may I collect at delivery? 375.707.................................. 375.15.................................. If a shipment is partially lost or destroyed, what charges may I collect at delivery? 375.709.................................. 375.15.................................. If a shipment is totally lost or destroyed, what charges may I collect at delivery? ---------------------------------------------------------------------------------------------------------------- SUBPART H--COLLECTION OF ACTUAL CHARGES ---------------------------------------------------------------------------------------------------------------- 375.801.................................. None.................................... What types of charges apply to subpart H? 375.803.................................. 377.205................................. How must I present my freight or expense bill? 375.805.................................. 375.3(d)................................ If I was forced to relinquish a collect-on- delivery shipment before the payment of ALL charges, how do I collect the balance? 375.807.................................. 377.215................................. (c)What actions may I take to collect the charges upon my freight bill? ---------------------------------------------------------------------------------------------------------------- SUBPART I--FILING ANNUAL ARBITRATION REPORTS ---------------------------------------------------------------------------------------------------------------- 375.901.................................. 375.18.................................. What is an annual arbitration report? 375.903.................................. None.................................... Who must file an annual arbitration report? 375.905.................................. None.................................... Where and when do I file an annual arbitration report? 375.907.................................. None.................................... How must I prepare and submit an annual arbitration report? ---------------------------------------------------------------------------------------------------------------- SUBPART J--PENALTIES ---------------------------------------------------------------------------------------------------------------- 375.1001................................. None.................................... What penalties do we impose for violations of this part? ---------------------------------------------------------------------------------------------------------------- APPENDIX A ---------------------------------------------------------------------------------------------------------------- Part 375, Appendix A..................... Part 375--Form: Office of Compliance and Your Rights and Enforcement (OCE)-100. Responsibilities When You Move. ---------------------------------------------------------------------------------------------------------------- Rulemaking Analyses and Notices All comments received before the close of business on the comment closing date indicated above will be considered and will be available for examination in the docket number appearing at the top of this document. The FHWA will file comments received after the comment closing date in the docket and will consider late comments to the extent practicable. The FHWA may, however, issue a final rule at any time after the close of the comment period. In addition to late comments, the FHWA will also continue to file, in the docket, relevant information becoming available after the comment closing date, and interested persons should continue to examine the docket for new material. Internet users may access all comments received by the U.S. DOT Dockets, Room PL-401, by using the universal resource locator (URL): http://dms.dot.gov. It is available 24 hours each day, 365 days each year. Please follow the instructions on-line for more information and help. Executive Order 12866 (Regulatory Planning and Review) and DOT Regulatory Policies and Procedures The FHWA has determined this action is neither a significant regulatory action under Executive Order 12866 nor significant under the Department of Transportation's regulatory policies and procedures. It is anticipated the economic impact of this action will not be substantial because this proposed rule makes minor, technical changes to the Federal Motor Carrier Commercial Regulations for household goods carriers. A full regulatory evaluation, therefore, is not warranted. Regulatory Flexibility Act In compliance with the Regulatory Flexibility Act (5 U.S.C. 601- 612), the FHWA has evaluated the effects of this rule upon small entities. The Small Business Administration (SBA) requires Federal agencies to analyze the impact of proposed rules on small businesses using the SBA Small Business Size Standards. These standards are based on the number of employees or revenue generated, and small businesses are listed by standard industrial classification (SIC) code. The FHWA believes there is no way to estimate the proportion of small [[Page 27131]] entities that are affected by motor carrier consumer protection regulations because the Motor Carrier Management Information System (MCMIS), the FHWA database of all entities which operate commercial motor vehicles, does not contain information pertaining to revenue, number of employees, or SIC codes. The most reliable method of determining the size of the motor carrier using MCMIS is by number of power units. For purposes of this analysis, a small motor carrier means a motor carrier with 10 power units or fewer. The FHWA has, in its August 1996 databases, 10,097 motor common carriers who identified themselves as transporting household goods in interstate or foreign commerce. Of this number, 9,179 (or 90.9 percent) have identified themselves as having ten or fewer power units (i.e., straight trucks or truck tractors). The FHWA believes this database significantly overstates the actual number of motor carriers subject to the household goods consumer protection regulations. The ICCTA created a new, more restrictive definition of transportation of household goods than the ICC had used. The FHWA's MCMIS database contains information based upon a motor carrier's determination of what it transported at the initial filing of the form MCS-150. This information may have been filed before the ICCTA and may have significantly changed since the filing. The AMSA claims, as its members, most of the motor common carriers who transport household goods in interstate commerce. On March 4, 1997, the AMSA informed the FHWA that it had 1,754 members, who hold FHWA authority to operate in interstate commerce transporting household goods. The FHWA will assume the AMSA membership roll is closer to the true number. The FHWA will add 246 motor carriers as a cushion for those motor carriers who may not be AMSA members. Based upon the AMSA membership data, for purposes of these analyses, we will use 2,000 carriers as the estimated size of the regulated industry subject to this proposed rule. This NPRM would amend and clarify the requirements for motor common carriers of household goods to provide service to each prospective individual shipper. These requirements include the following thirteen items: (1) Minimum advertising information soliciting prospective individual shippers. (2) Distribution of a document, specified in appendix A to part 375, noting the individual shipper's rights and responsibilities under Federal Highway Administration regulations. (3) A binding or non-binding estimate of transportation, accessorial, and incidental charges. (4) An order for service. (5) The selling of insurance policies. (6) A bill of lading. (7) Weight tickets. (8) Notifications of reasonable dispatch service delays. (9) Complaint and inquiry handling. (10) Use of charge card plans. (11) Agreements with agents (12) Notification of storage-in-transit liability assignments. (13) An arbitration results report. The former ICC required motor common carriers to follow these requirements with the exception of item number 13. Congress transferred the authority to protect individual shippers to the FHWA in the ICCTA. The FHWA believes these are minimum requirements necessary to protect individual shippers. The AMSA has advised the FHWA, in correspondence placed in the docket, its members want these requirements to be continued with minor modifications, as discussed above, to protect individual shippers. The FHWA calculates each entity will have to spend an average of $7,967 and 2,105 annual burden hours to comply with all of the paperwork requirements of this action. The FHWA based this estimate upon the estimated costs identified below to create records, duplicate records, store the original and duplicated copies of records, and practice inventory control for the records. The information required for preparing these documents is the type of information already developed by such entities in the normal course of conducting a household goods transportation business. The time necessary to compile the incremental data for the documents required in these regulations should be minimal and would vary proportionately with the number of shipments transported by the carrier. Although transportation consumers will benefit from the availability of this information, the cost to small carriers should be relatively minimal. Accordingly, the FHWA certifies this action would not have a significant impact on a substantial number of small entities within the meaning of the Regulatory Flexibility Act. Executive Order 12612 (Federalism Assessment) This NPRM has been analyzed in accordance with the principles and criteria contained in Executive Order 12612. We have determined this action does not have sufficient federalism implications to warrant the preparation of a federalism assessment. The amendments made by this proposed rule would not have a substantial direct effect on States nor on the relationship or distribution of power between the national government and the States because these changes do little to limit the policy making discretion of the States. The rule is not intended to preempt any State law or State regulation. Moreover, the changes made by this rule would impose no additional cost or burden upon any State. The rule would not have a significant effect upon the ability of the States to discharge traditional State governmental functions. The FHWA, therefore, is not required to prepare a separate Federalism Assessment for this rule. Unfunded Mandates Reform Act of 1995 This NPRM has been analyzed in accordance with the principles and criteria contained in the Unfunded Mandates Reform Act of 1995 (UMRA) (Pub. L. 104-4, 109 Stat. 48). The FHWA has determined this action does not have sufficient unfunded mandate implications to warrant the preparation of an unfunded mandate assessment. The amendments made by this proposed rule would not have a substantial direct effect on States nor on the relationship or distribution of power between the national government and the States because these changes do little to limit the policy making discretion of the States. The rule is not intended to preempt any State law or State regulation. Moreover, the changes made by this rule would impose no additional cost or burden upon any State. The rule will not have a significant effect upon the ability of the States to discharge traditional State governmental functions. For purposes of section 203 of the UMRA, the replacement of the annual performance report with an annual arbitration report would not impose a burden greater than $100 million. Also, the addition of an explicit requirement to provide an estimate, either binding or non- binding, would not impose a $100 million burden, either. Under the Regulatory Flexibility Act discussion above, the FHWA estimates this proposal would have an annual burden of just under $16 million. The FHWA, therefore, is not required to prepare a separate Unfunded Mandate Assessment for this rule. [[Page 27132]] Paperwork Reduction Act Under the OMB regulations, 5 CFR 1320, Controlling Paperwork Burdens on the Public, the OMB requires the FHWA to estimate the burden its regulations impose to generate, maintain, retain, disclose, or provide information to or for the FHWA, including the nine following items: 1. Reviewing instructions. 2. Developing, acquiring, installing, and utilizing technology and systems for the purpose of collecting, validating, and verifying information. 3. Developing, acquiring, installing, and utilizing technology and systems for the purpose of processing and maintaining information. 4. Developing, acquiring, installing, and utilizing technology and systems for the purpose of disclosing and providing information. 5. Adjusting the existing ways to comply with any previously applicable instructions and requirements. 6. Training personnel to be able to respond to a collection of information. 7. Searching data sources. 8. Completing and reviewing the collection of information. 9. Transmitting, or otherwise disclosing the information. The OMB regulations permit the time, effort, and financial resources necessary to comply with a collection of information incurred by persons in the normal course of their activities (e.g., in compiling and maintaining business records) to be excluded from the burden estimate if the FHWA demonstrates to the OMB that the reporting, recordkeeping, or disclosure activities needed to comply are usual and customary. A collection of information conducted or sponsored by the FHWA and also conducted or sponsored by a unit of State, local, or tribal government is presumed to impose a Federal burden, except to the extent the FHWA shows such State, local, or tribal requirement would be imposed even in the absence of a Federal requirement. The collection of information requirements in this NPRM are to generate, maintain, retain, disclose, and provide information to or for the FHWA under 49 CFR part 375 to individual shippers as a consumer protection service. The collection of information would be used by prospective shippers to make informed decisions about contracts and services to be ordered, executed, and settled with interstate household goods carriers. The only information collection items the FHWA is changing from the former ICC's rules are the elimination of the annual performance report (previously submitted to OMB) and the addition of an annual arbitration report. All other items were required under the former ICC regulations, although no assigned OMB control number was transferred from the ICC to the FHWA covering these collections of information. The FHWA has calculated the 5 CFR 1320 paperwork financial resources burden for the collection of information contained in this NPRM. The FHWA used national averages of cost indicators developed by the Association of Records Managers and Administrators, Inc. (ARMA International). The ARMA International publication ``Cost Indicators for Selected Records Management Activities (A Guide to Unit Costing for the Records Manager--Volume 1)'' (1993) and its companion ``Cost Finding for Records Management Activities (A Guide to Unit Costing for the Records Manager--Volume II)'' (1996) by Jose-Marie Griffiths, Ph.D., and Donald W. King were used by the FHWA in calculating activity and organizational unit costs. The ARMA International guides determine organizational unit costs to be costs a parent organization may attach to records management activities. They include activity unit costs and records management general and administrative costs. Activity unit costs include salaries, benefits, supervision, training, staff and storage space, equipment, and supplies. General and administrative costs include staff compensation and space, non-productive time, furniture, supplies, and other direct and indirect costs associated with management and administration. The FHWA believes using organizational unit costs will more accurately estimate the actual costs for the entire CMV industry rather than activity unit costs and records management unit costs. Estimated Paperwork Burden ------------------------------------------------------------------------ Financial Hourly Type of burden cost burden ------------------------------------------------------------------------ Advertising................................... $4,814 351 ``Your Rights'' Booklet....................... 894,710 4,167 Estimates..................................... 4,251,240 3,060,000 Order for Service............................. 1,417,080 300,000 Insurance Policy Sales........................ 236,180 100,000 Bills of Lading............................... 2,877,240 300,000 Weight Tickets................................ 2,702,808 90,000 Notice (Reasonable Dispatch).................. 507,816 10,000 Complaint Handling............................ 1,502,696 310,000 Charge Card Plans............................. 1,502 584 Notice (SIT).................................. 228,348 30,000 Arbitration Report............................ 1,310,722 4,000 ------------------------- Total..................................... 15,935,156 4,209,102 ------------------------------------------------------------------------ As stated above, the FHWA will use the figure of 2,000 motor carriers engaged in transportation of household goods in interstate or foreign commerce. The FHWA has broken down each discussion of information collection requirements into the major areas of 49 CFR Part 375's requirements. Minimum Advertising Information Soliciting Prospective Individual Shippers Section 375.207 requires each advertisement of a motor carrier, or its agent, to include the name or trade name of the originating service motor carrier and the applicable FHWA-assigned U.S. DOT number. The FHWA believes identifying the name or trade name of a business entity in an advertisement is a usual and customary business practice. If the OMB agrees with the FHWA's assertion, this requirement would not be considered a burden defined by 5 CFR 1320, but would require approval by the OMB. The requirement to specify the applicable FHWA-assigned U.S. DOT number in an advertisement, except for advertisements on radio broadcasts, would impose a slight burden. The FHWA estimates the 2,000 carriers subject to this requirement would have one advertisement in their local telephone yellow pages. In addition, each carrier would have one advertisement per year created for its local paper. The FHWA estimates the 17 large van lines would have 12 different advertisements per year created. The FHWA will estimate the cost of placing the U.S. DOT number in the created advertisement, but believes the advertisement's other time and financial costs are usual and customary business practices. The ARMA International guide indicates the creation of one record costs an organization $1.145. The FHWA determines 2,000 local telephone advertisements, 2,000 local newspaper advertisements, and 204 large van line advertisements must be created specifying the FHWA-assigned number. Multiplying 4,204 by $1.145 results in $4,814 (the FHWA rounds money up to the next whole dollar). The FHWA has calculated the 5 CFR 1320 paperwork time burden for the [[Page 27133]] advertisement collection of information. Based upon 4,204 advertisements, the FHWA estimates each motor carrier would need 5 minutes to create the assigned number upon the advertisement. This result multiplied by 4,202 advertisements equals 351 hours for the household goods carrier industry. Your Rights and Responsibilities When You Move In February 1997, the FHWA asked the AMSA to estimate how many booklets would be distributed to individual shippers. The AMSA believes 580,000 orders for service are executed each year and recommends the FHWA round this number up by 20,000 to 600,000 orders for service. This would capture the additional booklets of ``Your Rights And Responsibilities When You Move'' distributed to prospective individual shippers who decide not to use the services of a motor common carrier, but who were supplied the booklet at the appropriate time based upon the regulation. In the past, the ICC required motor common carriers to obtain the booklet ``Your Rights and Responsibilities When You Move'' from the ICC. A motor common carrier could add supplementary text about carrier- specific items relevant to its operations and its own carrier logo. The motor carrier would then distribute the booklet. Although the FHWA does not have the resources to publish massive quantities of this important consumer publication, we strongly believe this publication should continue to be distributed. The AMSA agrees with us. The AMSA has advised us its members would provide the modified publication to consumers even without a regulatory requirement. However, we propose to continue requiring distribution of the publication to ensure consumers are provided with important knowledge to deal effectively with household goods carriers, particularly the few, unscrupulous carriers who treat them unfairly and are unlikely to provide this information voluntarily. The FHWA would allow motor common carriers to reproduce or photocopy this document in one of the following three ways. 1. Distribute a subsequent Federal Register final rule (and successor final rules). 2. Distribute the appendix to 49 CFR Part 375 when it is published in October of each year (by the U.S. Government Printing Office). 3. Publish independently their own publication containing the text of appendix A to Part 375. This would provide flexibility to small entities who are not agents for other larger motor common carriers. The FHWA expects large van lines will want to produce their own booklets containing the appendix to part 375. Based upon an organizational unit cost analysis, the FHWA estimates the household goods carrier industry will incur an annual paperwork burden of $894,710 to comply with the publication and distribution of the booklet. Each carrier may create its own carrier identifiable document for distribution. The organizational unit cost for creating a record using the ARMA International guide is $1.145 per record. Multiplying 2,000 carriers by $1.145 results in $2,290 for all carriers to produce an original record. The organizational unit cost for duplicating the carrier's document is $1.076 per record. This would cost $645,600 for 600,000 requests for estimates. The organizational unit cost for storage of the documents is $0.0228 per record. The FHWA estimates 602,000 must be stored. This is the sum for the storage of the original document plus all the duplicated documents. The storage cost is estimated to be $13,726. The FHWA also estimates the document must be in inventory and must be controlled. The organizational unit cost for the practice of inventory control of documents is $0.387 per record. The FHWA estimates this to be $232,974. The total cost is $894,710 based upon the organizational unit cost method. Distribution of ``Your Rights and Responsibilities When You Move'' Booklet The paperwork time burden for the 600,000 requests for orders for service requiring the distribution of this important consumer publication by 2,000 motor carriers results in an average of 300 copies distributed annually for each carrier. The FHWA estimates each carrier would need 1 hour to create each original document and approximately one additional hour to photocopy 300 copies of this document for distribution. The FHWA estimates carriers would need an additional 5 minutes to inventory their stored documents. The FHWA believes all household goods carriers usually and customarily distribute carrier- produced sales and information brochures and this document would be distributed with those documents when the prospective shipper is contacted. The FHWA, therefore, finds good cause to forego estimating a burden for distribution of the information in the brochure in this NPRM. The FHWA's total time estimate per carrier for this action is 2 hours 5 minutes. This result multiplied by 2,000 carriers equals 4,167 hours for the household goods carrier industry. Binding or Non-binding Estimate of Transportation, Accessorial, and Incidental Charges Motor carriers are not required under current FHWA regulations to furnish individual shippers with any type of estimate, binding or non- binding. If an estimate is calculated, however, the regulations do specify certain information is to be recorded, maintained, retained, and provided to the individual shipper. The proposed retention period of one year would remain the same as the current period. See 49 CFR 379.13, Appendix A, item J.1.(a) (62 FR 32040, June 12, 1997). The FHWA believes household goods carriers provide almost every individual shipper with an estimate of charges prior to loading. The FHWA is proposing to require motor carriers to provide an estimate to every individual shipper. The ICC's unpublished 1995 HHG Performance Report Study found motor carriers wrote binding estimates for about 55.8 percent of the 384,003 collect-on-delivery shipments transported. The FHWA will use 60 percent for the percentage of estimates motor carriers will write as binding estimates (an exact estimate of the charges to be paid) and 40 percent written as non-binding estimates (an approximate cost of the transportation charges). The FHWA believes each shipper obtains an average of three estimates before deciding upon a motor carrier to transport its household goods. For binding estimates, the motor carrier calculates what the total bill would be based upon a detailed analysis of the services to be provided. If the individual shipper has additional services or items to be performed at the time of loading the shipment, the motor carrier may either reaffirm the binding estimate, reject the binding estimate, recalculate a new binding estimate, or calculate a non-binding estimate. If the motor carrier does nothing, this NPRM would require the carrier to honor the binding estimate. The FHWA estimates a motor carrier's binding estimate takes an average of 2 hours to complete. This involves the following ten items: 1. Traveling to the shipment location. 2. Estimating the items to be transported and their weight. 3. Estimating accessorial/incidental charges. [[Page 27134]] 4. Reviewing and obtaining information from tariffs, guides, schedules, etc. 5. Calculating the estimate. 6. Recording the estimate. 7. Copying the estimate. 8. Attaching the copy to the order for service/bill of lading. 9. Providing the estimate to the prospective individual shipper. 10. Return travel to the motor carrier's terminal. Calculation of 2 hours multiplied by 1,080,000 binding estimates (600,000 times 60 percent times an average of 3 estimates per order for service) results in 2,160,000 hours. The FHWA assumes 50 percent of non-binding estimates are completed exclusively by telephone and 50 percent are completed through a personal visit to the individual shipper's residence. The FHWA estimates a motor carrier's non-binding estimate takes an average of 30 minutes to complete by telephone. This involves the following eight items: 1. Asking the individual on the telephone certain questions (such as number of rooms, any extra heavy items, automobiles, etc.). 2. Estimating the weight to be transported. 3. Estimating accessorial/incidental charges. 4. Reviewing and obtaining information from tariffs, guides, schedules, etc. 5. Calculating an estimate. 6. Recording the estimate. 7. Copying the estimate and attaching the copy to the order for service/bill of lading. 8. Providing the estimate to the prospective individual shipper over the telephone. Calculation of 30 minutes multiplied by 360,000 non-binding estimates (600,000 times 40 percent (non-binding estimate) times 50 percent (estimate by telephone) times 3 estimates per order for service (average)) results in 180,000 hours. Providing a non-binding estimate by a personal visit involves essentially the same elements as a binding estimate and would consume the same amount of time. Calculation of 2 hours multiplied by 360,000 non-binding estimates (600,000 times 40 percent (non-binding estimate) times 50 percent (estimate by personal visit) times 3 estimates per order for service (average)) results in 720,000 hours. Thus, the FHWA calculates the total burden hours as 2,160,000 for binding estimates, 180,000 for non-binding telephone estimates, and 720,000 for non-binding personal visit estimates for a grand total of 3,060,000 burden hours for estimates. The FHWA estimates the financial burden in providing estimates would be creating a record of the estimate, copying the estimate, attaching it to the bill of lading, and filing and storing the estimate with the bill of lading. As discussed above, the FHWA estimates 600,000 orders for service are executed each year and the FHWA assumes each shipper obtains an average of 3 estimates prior to deciding upon a motor carrier. This means 1,800,000 estimates would be made each year, and 1,800,000 copies made, filed and stored. The FHWA assumes the records would be active rather than inactive. Thus, the FHWA calculates the organizational unit cost analysis to provide estimates of charges with the following four acts: 1,800,000 times $1.145 for creating one record equals $2,061,000. 1,800,000 times $1.076 for duplicating one record equals $1,936,800. 1,800,000 times $0.118 for filing one record equals $212,400. 1,800,000 times $0.0228 for storing one record equals $41,040. The total of the four results is $4,251,240. Order For Service An order for service must contain the following eleven information items: 1. The carrier's name and address and the FHWA U.S. DOT number assigned to the carrier who is responsible for performing the service. 2. The individual shipper's name, address and, if available, telephone number. 3. The name, address and telephone number of the delivering carrier's office or agent located at or nearest to the destination of the shipment. 4. A telephone number where the individual shipper/consignee may contact the carrier or his designated agent. 5. Dates and times. One of the following three dates and times. (a) The agreed pickup date and agreed delivery date of the move. (b) The agreed period or periods of time of the entire move. (c) If the shipment is to be transported on a guaranteed service basis, the guaranteed dates or periods of time for pickup, transportation, and delivery. Any penalty or per diem requirements of the agreement must be entered under this item. 6. A complete description of any special or accessorial services ordered and minimum weight or volume charges applicable to the shipment. 7. Any identification or registration number assigned to the shipment. 8. For non-binding estimated charges, the amount of the charges, the method of payment of total charges, and, the maximum amount required to be paid at time of delivery to obtain possession of the shipment. 9. For binding estimated charges, the amount of charges required to be paid based upon a binding estimate and the terms of payment under this estimate. 10. Whether the individual shipper requests notification of the charges prior to delivery and the telephone number or address where such communications will be received. 11. Signature of the individual shipper, who is ordering the service, and signature of the carrier or his agent. A copy of the order for service must be dated and furnished to the individual shipper at the time it is executed. The proposed retention period of one year would remain the same as the current period. See 49 CFR 379.13, Appendix A, item J.1.(b). The FHWA estimates an order for service takes 30 minutes to complete. Multiplying this by 600,000 orders for service results in 300,000 burden hours. The FHWA estimates the financial burden in providing orders for service would be in creating the order of service record, copying the order, attaching it to the bill of lading, and filing and storing the order with the bill of lading. As discussed above, the FHWA estimates 600,000 estimates for orders for service are executed each year. This means 600,000 orders would be made each year, and 600,000 copies made, filed and stored. The FHWA assumes the records would be active rather than inactive. Thus, the FHWA calculates the organizational unit cost analysis to provide orders for service using the following four calculations. 600,000 times $1.145 for creating one record equals $687,000. 600,000 times $1.076 for duplicating one record equals $645,600. 600,000 times $0.118 for filing one record equals $70,800. 600,000 times $0.0228 for storing one record equals $13,680. The total of the four results is $1,417,080. Selling Insurance Policies The regulations do not require motor carriers to sell insurance to individual shippers. If a motor carrier does sell insurance, however, the insurance policy must be in plain English and clearly specify the nature and extent of coverage. The proposed retention period (until expiration of coverage plus one year) would remain the same as the current period. See 49 CFR 379.13, Appendix A, item F.1.(c). [[Page 27135]] The FHWA estimates motor carriers sell excess liability insurance policies on 100,000 shipments of the 600,000 shipments each year. The FHWA also estimates each policy takes 1 hour to process and copy. This would result in 100,000 hours of burden for selling insurance policies to individual shippers. The FHWA estimates the financial burden in selling insurance policies would be creating the insurance policy record, copying the policy, providing one copy to the individual shipper, and filing and storing the policy. As discussed above, the FHWA estimates 100,000 insurance policies would be executed each year. This means 100,000 policies would be made each year, and 100,000 copies would be made, filed, and stored. The FHWA assumes the records would be active rather than inactive. Thus, the FHWA calculates the organizational unit cost analysis to provide insurance policies using the following four calculations. 100,000 times $1.145 for creating one record equals $114,500. 100,000 times $1.076 for duplicating one record equals $107,600. 100,000 times $0.118 for filing one record equals $11,800. 100,000 times $0.0228 for storing one record equals $2,280. The total of the four results is $236,180. Bills of Lading A bill of lading must include the following twelve information items: 1. The carrier's name and address, or the name and address of the motor carrier issuing the bill of lading. 2. The names and addresses of any other motor carriers, when known, who will participate, through interline, in the transportation of the shipment. 3. The name, address, and telephone number of the office of the motor carrier to contact in relation to the transportation of shipments. 4. When the transportation is to be performed on a collect-on- delivery basis, the name, the address and, if furnished, the telephone number of a person to whom notification is provided for in proposed Sec. 375.605 must be given. 5. For non-guaranteed service, the agreed date or period of time for pickup of the shipment and the agreed date or period of time for the delivery of the shipment. The agreed dates or periods of time for pickup and delivery entered upon the bill of lading must conform to the agreed dates or periods of time for pickup and delivery entered upon the order for service or a proper amendment to the order for service. 6. For guaranteed service subject to tariff provisions, the dates for pickup and delivery and any penalty or per diem entitlements due the individual shipper under the agreement. 7. The actual date of pickup. 8. The company or carrier identification number of the vehicle(s) on which the motor carrier loads the shipment. 9. The terms and conditions for payment of the total charges including notice of any minimum charges. 10. When the transportation is to be performed on a collect-on- delivery basis and if a pre-move estimate of the charges is provided to the individual shipper, the maximum amount required to be paid at the time of delivery to obtain delivery of the shipment. 11. The required released rates valuation statement (see RELEASED RATES OF MOTOR COMMON CARRIERS OF HHG, 9 I.C.C. 2d 523 (1993)) (as amended), and the charges, if any, for optional valuation coverage. 12. Evidence of any insurance coverage sold to or procured for the individual shipper from an independent insurer, including the amount of the premium for such insurance. A copy of the bill of lading must accompany a shipment at all times. When the shipment is loaded upon a vehicle for transportation, the bill of lading must be in the possession of the driver responsible for the shipment. The proposed retention period would remain the same as the current period. See 49 CFR 379.13, Appendix A, item I.1. The FHWA estimates a bill of lading takes 30 minutes to complete. Multiplying this by the estimated 600,000 bills of lading executed each year results in 300,000 burden hours. The FHWA estimates the financial burden in providing bills of lading would be creating the bill of lading record, copying through the use of carbon or carbonless paper, attaching a copy to the estimate and order for service, providing a copy to accompany the load, and filing and storing the bill of lading with the estimate of charges and order for service. As discussed above, the FHWA estimates 600,000 orders for service are executed each year. This means 600,000 bills of lading would be made each year. The FHWA estimates at least three copies for each bill of lading would be made (1,800,000 copies), and 1,800,000 copies filed and stored. The FHWA assumes the records would be active rather than inactive. Thus, the FHWA calculates the organizational unit cost analysis to write bills of lading using the following four calculations: 600,000 times $1.145 for creating one record equals $687,000. 1,800,000 times $1.076 for duplicating one record equals $1,936,800. 1,800,000 times $0.118 for filing one record equals $212,400. 1,800,000 times $0.0228 for storing one record equals $41,040. The total of the four results is $2,877,240. Weight Tickets Every weight ticket must be signed by the person performing the weighing and must contain the following six information items: 1. The complete name and location of the scale. 2. The date of each weighing. 3. Identification of the weight entries as being the tare, gross, or net weights. 4. The company or carrier identification of the vehicle. 5. The last name of the individual shipper as it appears on the Bill of Lading. 6. The carrier's shipment registration or Bill of Lading number. When both weighings are performed on the same scale, one weight ticket may be used to record both weighings. All freight bills presented to collect any shipment charges dependent on the weight transported must be accompanied by true copies of all weight tickets obtained in the determination of the shipment weight. The proposed retention period would remain the same as the current period. See 49 CFR 379.13, Appendix A, item J.5 for the current retention period. The FHWA estimates weighing freight takes 5 minutes to complete. The FHWA estimates 5 percent of shipments move under a binding estimate and an additional 5 percent move under an estimate based upon volume. These two types of estimates do not require weighing-- therefore, the FHWA will exclude 60,000 shipments from our calculations. The FHWA calculates 540,000 shipments times two weighings per shipment equals 1,080,000 weighings. This multiplied by 5 minutes per weighing results in 90,000 burden hours. The FHWA estimates the financial burden in providing a weighing would be in creating the weight record, copying would generally be done through the use of carbon or carbonless paper, attaching a copy to the bill of lading and order for service, and filing and storing the weight ticket with the bill of lading and order for service. The FHWA estimates one copy for each weight ticket would be made (1,080,000 copies), and 2,160,000 copies filed and stored. The FHWA assumes the records would be active rather than inactive. Thus, the FHWA calculates the organizational unit cost analysis to record weight tickets using the [[Page 27136]] following four calculations: 1,080,000 times $1.145 for creating one record equals $1,236,600. 1,080,000 times $1.076 for duplicating one record equals $1,162,080. 2,160,000 times $0.118 for filing one record equals $254,880. 2,160,000 times $0.0228 for storing one record equals $49,248. The total is $2,702,808. Notifications of Reasonable Dispatch Service Delays At the time of notification of delay, a carrier must advise the individual shipper of the alternative dates or periods of time the carrier may be able to pickup and/or deliver the shipment. The needs of the individual shipper must always be considered in this advisement. Additional requirements include the following six information items: 1. If the notification of delay occurs prior to the pickup of the shipment, the carrier must amend the order for service. 2. If the notification of delay occurs subsequent to the pickup of the shipment, the carrier must notify the individual shipper of the delay. 3. The carrier must prepare a written record of the date, time and manner of notification. 4. The carrier must prepare a written record of the amended date or period of time for delivery. 5. These records must be retained by the carrier as part of its file on the shipment. The retention period would be one year from the date of notification. 6. A true copy of the written delay notification noting the date, time and manner of notification, along with a record of the amended date or period of time for delivery must be furnished to the individual shipper by first class mail or in person. The proposed retention period of one year would remain the same as the current period. See 49 CFR 379.13, Appendix A. item I.4.(b). The FHWA estimates 20 percent of the 600,000 shipments transported each year experience some sort of delay requiring notification. This would result in 120,000 notifications. The FHWA believes 99.9 percent of these notifications occur by telephone and take an average of 5 minutes to complete. The FHWA believes telegram and in person notification is used rarely. The FHWA also believes 99.9 percent of the written records provided to the individual shipper are delivered by first class mail and not in person. Multiplying 120,000 notifications by an average of 5 minutes results in 10,000 burden hours. The FHWA estimates the financial burden in providing a notification of delay would be in disclosing information in a 5 minute telephone call, creating a record of the notification, copying the record through the use of carbon or carbonless paper, mailing a copy to the individual shipper, and filing and storing the written notice with the bill of lading and order for service documents. The FHWA estimates one copy for each notice would be made (120,000 copies), and 120,000 copies must be filed and stored. The FHWA assumes the records would be active rather than inactive. Thus, the FHWA calculates the organizational unit cost analysis to notify individual shippers about reasonable dispatch delays using the following six calculations: 120,000 times $0.31 per minute (A.T.&T. long distance telephone rate for a call from New York, NY, to Los Angeles, CA) times 5 minutes equals $186,000. 120,000 times $1.145 for creating one record equals $137,400. 120,000 times $1.076 for duplicating one record equals $129,120. 120,000 times $0.32 for mailing by U.S. Postal Service first class service to the individual shipper equals $38,400. 120,000 times $0.118 for filing one record equals $14,160. 120,000 times $0.0228 for storing one record equals $2,736. The total is $507,816. Complaint and Inquiry Handling The regulations require carriers establish and maintain a procedure for responding to inquiries and complaints from individual shippers. The procedure must be specified in a concise, easy to read summary of the program and include a communications system allowing individual shippers to communicate with the carrier's principal place of business by telephone. The carrier must make a written record of all inquiries and complaints received from an individual shipper by any means of communication. The proposed retention period of one year after settlement would remain the same as the current period. See 49 CFR 379.13, Appendix A, item F.2.(a). The FHWA estimates all 600,000 shipments transported each year have some sort of inquiry made about them by an individual shipper. The FHWA believes at least two are made by each shipper. This would result in 1,200,000 records of complaints and inquiries. The FHWA estimates each carrier would use an average of 30 minutes to establish, document, and distribute its complaint and inquiry handling system in a concise, easy to read summary. The FHWA multiplies 1,200,000 records by an average of 5 minutes and 600,000 records of summaries distributed by an average of 30 minutes. This results in 310,000 hours annual burden. The FHWA estimates the financial burden in conducting complaint and inquiry procedures would include the following twelve information items: 1. Establishing the complaint and inquiry system. 2. Creating a concise, easy to read summary record of the system. 3. Copying the summary record 600,000 times. 4. Filing the summary record until needed. 5. Storing the summary record until needed. 6. Distributing the summary record with other sales brochures as needed (including ``Your Rights and Responsibilities When You Move'' and the arbitration procedure). 7. Disclosing information about complaints and inquiries in a 5 minute telephone call. 8. Creating a record of the notification. 9. Copying the record through the use of carbon or carbonless paper. 10. Mailing a copy to the individual shipper (by regular mail). 11. Filing the written notice. 12. Storing the written notice with the bill of lading and order for service documents. The FHWA estimates one copy for each complaint or inquiry notice would be made (120,000 copies), and 120,000 copies filed and stored. The FHWA assumes the records would be active rather than inactive. Thus, the FHWA calculates the organizational unit cost analysis to notify individual shippers about complaint and inquiry handling using the following twelve calculations: 2,000 concise, easy to read summary records of the system times $1.145 for creating one record equals $2,000. 600,000 times $1.076 for duplicating the summary record equals $645,600. 600,000 times $0.32 for mailing by regular service U.S. Mail to agents and salespeople for distribution equals $192,000. 600,000 times $0.118 for filing the summary record until needed equals $70,800. 600,000 times $0.0228 for storing the summary record until needed equals $13,680. 600,000 times $0.118 for distributing the summary record with other sales brochures equals $70,800. [[Page 27137]] 120,000 times $0.31 per minute (A.T.&T. long distance telephone rate for a call from New York, NY to Los Angeles, CA) times 5 minutes equals $186,000. 120,000 times $1.145 for creating one record equals $137,400. 120,000 times $1.076 for duplicating one record equals $129,120. 120,000 times $0.32 for mailing by U.S. Postal Service first class service to the individual shipper equals $38,400. 120,000 times $0.118 for filing one record equals $14,160. 120,000 times $0.0228 for storing one record equals $2,736. The total is $1,502,696. Use of Charge Card Plans The regulations allow for the use of charge card plans, but do not require information collection requirements as a part of the regulation. Agreements With Agents The regulations require motor carriers have written agreements with their prime agents. The AMSA's information shows 1,151 motor carriers do not affiliate with any van line, while 1,167 carriers are affiliated with one of 17 van lines. These 1,167 carriers are probably prime agents. The prime agents must have written agreements with their motor carrier principal. The FHWA estimates all 1,167 carriers have one written agreement with another motor carrier. This would result in 1,167 records of written agreements. The FHWA multiplies 1,167 records by an average of 30 minutes. This results in 584 annual burden hours. The FHWA estimates the financial burden in executing a written agreement with prime agents would be in discussing the information with a potential agent, creating a record of the agreement, and filing and storing of the written agreement. The FHWA assumes the records would be active rather than inactive. Thus, the FHWA calculates the organizational unit cost analysis to execute written agreements with prime agents using the following three calculations: 1,167 times $1.145 for creating one record equals $1,337. 1,167 times $0.118 for filing one record equals $138. 1,167 times $0.0228 for storing one record equals $27. The total is $1,502. Notification of Storage-in-Transit Liability Assignments Motor carriers who are holding goods for storage-in-transit and this period of storage is about to expire must notify the individual shipper in writing about the following four information items: 1. The date of conversion to permanent storage. 2. The existence of a nine-month period subsequent to the date of conversion to permanent storage when the individual shipper may file claims against the carrier for loss or damage occurring to the goods in transit or during the storage-in-transit period. 3. The fact the carrier's liability will end. 4. The fact the individual shipper's property will be subject to the rules, regulations, and charges of the warehouseman. The motor carrier must make this notification at least 10 days prior to the expiration date of one of the following two conditions. (1) The specified period of time when the goods are to be held in storage. (2) The maximum period of time provided in its tariff for storage- in-transit. The motor carrier must notify the individual shipper by certified mail, return receipt requested. If the motor carrier is holding household goods in storage-in-transit for a period of time less than 10 days, within one day prior to the expiration date of the specified time when the goods are to be held in such storage, the carrier must give notification to the individual shipper. The carrier must maintain a record of notifications as part of the records of the shipment. The FHWA assumes 10 percent of the 600,000 shipments result in storage-in-transit situations where the time period expires. This would result in 60,000 records of notifications. The FHWA multiplies 60,000 records by an estimated average of 30 minutes. This results in 30,000 annual burden hours. The FHWA estimates the financial burden in notifying an individual shipper about the storage-in-transit expiration date and conditions would be creating a record, copying the record, mailing the original by certified (return receipt requested) service, filing the record, and storing the active record. The FHWA estimates the original agreement would be made and mailed to the individual shipper. The carrier would file and store the copy. The FHWA assumes the records would be active rather than inactive. Thus, the FHWA calculates the organizational unit cost analysis to notify shippers regarding the expiration of storage-in-transit using the following four calculations: 60,000 times $1.145 for creating one record equals $68,700. 60,000 times $2.52 for postage (certified, return receipt requested U.S. Postal Service) for one record equals $151,200. 60,000 times $0.118 for filing one record equals $7,080. 60,000 times $0.0228 for storing one record equals $1,368. The total is $228,348. Arbitration Results Report Every motor carrier must have an arbitration program by statute. Each motor carrier must include in its annual arbitration report the following nine information items: 1. The total number of shipments transported. 2. The total number of claims in excess of $1000. 3. The total number of claims of $1000 or less. 4. The number of requests for arbitration on claims of $1000 or less. 5. The results of those arbitrations (claim amounts and disposition). 6. The number of requests for arbitration on claims in excess of $1000. 7. The number of requests for arbitration on claims in excess of $1000 accepted by the carrier. 8. The results of the arbitrations the carrier accepted and reported under item 7 of this list, providing the claim amount and disposition. 9. An oath, completed by the carrier and signed by a company officer. The FHWA requires all 600,000 orders for service include a concise, easy to read summary of the arbitration procedures. This would result in 600,000 records being distributed. In addition, the FHWA would require all motor carriers file annually a prepared summary of the previous year's results of their arbitration programs. The FHWA estimates each carrier would use an average of 2 hours to establish, document, and distribute its arbitration program in a concise, easy to read summary. The FHWA multiplies 2,000 motor carriers by an average of 2 hours to establish, document, copy, and distribute 600,000 records of summaries. This results in 4,000 annual burden hours. The FHWA estimates the financial burden in establishing an arbitration program and filing the results of the program annually would include the following nineteen information items: 1. Establishing the arbitration program. 2. Creating a concise, easy to read summary record of the program. 3. Copying the summary record 600,000 times. [[Page 27138]] 4. Filing the summary record until needed. 5. Storing the summary record until needed. 6. Distributing the summary record with other sales brochures as needed (including ``Your Rights and Responsibilities When You Move'' and the compliant and inquiry handling system). 7. Creating a record of each arbitration result. 8. Filing the record of the arbitration result. 9. Storing the active record of the arbitration result. 10. Requesting the active records of all arbitration results be sent to the annual record preparer's location. 11. Reviewing and compiling the records of all arbitration results. 12. Reviewing the regulations for the items to be reported. 13. Creating an annual record of the results of the program. 14. Copying the annual record for the carrier's files. 15. Mailing the annual record to Washington, DC. 16. Filing the copy of the annual record. 17. Storing the copy of the annual record. 18. Re-filing each record of arbitration results. 19. Storing each record of arbitration results. The FHWA assumes 10 percent of household goods shippers would seek arbitration each year. This would result in 60,000 arbitrations being made each year. The FHWA assumes the records would be active rather than inactive. Thus, the FHWA calculates the organizational unit cost analysis to provide arbitration program summaries and preparation of a filed arbitration report using the following sixteen calculations: 2,000 concise, easy to read summary records of the system times $1.145 for creating one record equals $2,290. 600,000 times $1.076 for duplicating the summary record equals $645,600. 600,000 times $0.32 for mailing by regular service U.S. Mail to agents and salespeople for distribution equals $192,000. 600,000 times $0.118 for filing the summary record until needed equals $70,800. 600,000 times $0.0228 for storing the summary record until needed equals $13,680. 600,000 times $0.118 for distributing the summary record with other sales brochures equals $70,800. 60,000 times $1.145 for creating one record of the arbitration result equals $68,700. 60,000 times $0.118 for filing one record equals $7,080. 60,000 times $0.0228 for storing one record equals $1,368. 60,000 times $1.789 for retrieving active records of all arbitration results be sent to the annual record preparer's location equals $107,340. 2,000 times $1.145 for creating an annual record of the results of the program equals $2,290. 2,000 times $1.076 for copying the annual record for the carrier's files equals $2,152. 2,000 times $0.32 for posting the annual record to Washington, DC by U.S. Postal Service equals $640. 2,000 times $0.118 for filing the copy of the annual record equals $236. 2,000 times $0.0228 for storing the copy of the annual record equals $46. 60,000 times $2.095 for re-filing each record of arbitration results equals $125,700. The total is $1,310,722. New Information Collection Request Summary Title: Transportation of Household Goods; Consumer Protection Regulations. Background: The Secretary of Transportation may promulgate ``reasonable regulations, including regulations protecting individual shippers * * *'' 49 U.S.C. 14104. The FHWA's regulations require motor common carriers of household goods to generate, maintain, retain, disclose, and provide information to the FHWA or for the motor carriers to provide to third parties (individual shippers). The FHWA would continue most of these regulations. The FHWA would propose no requirement for specific forms. The FHWA regulations would also allow motor carriers to provide electronic documents. The FHWA estimates providing the information electronically may not be useful. It would, however, allow such disclosures provided the consumer has a system to read the electronic information readily. The FHWA believes the use of such electronic information is uncommon and is not likely to grow significantly based upon the current proposed regulations. The FHWA believes these requirements are necessary for motor common carriers to properly protect the rights and responsibilities of individual shippers. The FHWA believes these requirements are not unnecessarily duplicative of information otherwise reasonably accessible to an individual shipper. The FHWA believes most individual shippers would not know about the FHWA or its regulations published in Title 49, Code of Federal Regulations. Respondents: Approximately 2,000 motor carriers who provide transportation of household goods in interstate commerce. Average Burden per Year: 3,466,602 total hours divided by 2,000 motor carriers equals 1,734 hours annually. Collection of Information Frequency: Upon set-up of a household goods motor carrier business, each time an individual shipper of household goods contemplates ordering service from a motor carrier, each time an individual shipper of household goods makes inquiries or complaints, each time a household goods shipment delay occurs, upon settlement of charges due, and annually for a report. The FHWA will send a new burden estimate for this collection of information requirement to the Office of Management and Budget. This document serves as the FHWA's 60-day notice under 5 CFR 1320.8(d)(1). The FHWA requests your comments regarding the accuracy of each estimate. If you believe an estimate is accurate, please tell us the reason why you believe it is accurate. If you believe the FHWA has miscalculated the burdens of time or financial burden, please tell us the reason why you believe it is inaccurate and provide us with better information to accurately estimate the burdens. The FHWA also requests your comments on the need for the collection of information requirements proposed in this NPRM, and on ways the FHWA may reduce the information collection burden while protecting consumers. National Environmental Policy Act The agency has analyzed this action for the purpose of the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and has determined this action will not have any effect on the quality of the environment. Regulation Identification Number A regulation identification number (RIN) is assigned to each regulatory action listed in the Unified Agenda of Federal Regulations. The Regulatory Information Service Center publishes the Unified Agenda in April and October of each year. The RIN contained in the heading of this document can be used to cross reference this action with the Unified Agenda. List of Subjects in 49 CFR Part 375 Advertising, Arbitration, Consumer protection, Freight, Highways and roads, Insurance, Motor carriers, Moving of household goods, Reporting and recordkeeping requirements. [[Page 27139]] List of Subjects in 49 CFR Part 377 Credit, Freight forwarders, Highways and roads, Motor carriers. Issued on: May 5, 1998. Kenneth R. Wykle, Administrator, Federal Highway Administration. For the reasons set out in the preamble, the FHWA proposes to amend 49 CFR Chapter III as set forth below: 1. Part 375 is revised to read as follows: PART 375--TRANSPORTATION OF HOUSEHOLD GOODS IN INTERSTATE COMMERCE; CONSUMER PROTECTION REGULATIONS Subpart A--General Requirements Sec. 375.101 Who must follow these regulations? 375.103 What are the definitions of terms used in this part? Subpart B--Before Offering Services to My Customers Liability Considerations Sec. 375.201 What is my normal liability for loss and damage when I accept goods from an individual shipper? 375.203 What actions of an individual shipper may limit or reduce my normal liability? General Responsibilities Sec. 375.205 May I have agents? 375.207 What items must be in my advertisements? 375.209 How must I handle complaints and inquiries? 375.211 Must I have an arbitration program? 375.213 What information must I provide to a prospective individual shipper? Collecting Transportation Charges Sec. 375.215 How must I collect charges? 375.217 May I collect charges upon delivery? 375.219 May I extend credit to shippers? 375.221 May I use a charge card plan for payments? Subpart C--Service Options Provided Sec. 375.301 What service options may I provide? 375.303 If I sell excess liability insurance coverage, what must I do? Subpart D--Estimating Charges Sec. 375.401 Must I estimate charges? 375.403 How must I provide a binding estimate? 375.405 How must I provide a non-binding estimate? 375.407 Under what circumstances must I relinquish possession of a collect-on-delivery shipment transported under a non-binding estimate? Subpart E--Pick up of Shipments of Household Goods Before Loading Sec. 375.501 Must I write up an order for service? 375.503 Must I write up a bill of lading? Weighing the Shipment Sec. 375.505 Must I determine the weight of a shipment? 375.507 What is a certified scale? 375.509 How must I determine the weight of a shipment? 375.511 May I use an alternative method for shipments weighing 454 kilograms or less? 375.513 Must I give the individual shipper an opportunity to observe the weighing? 375.515 May an individual shipper waive his/her right to observe each weighing? 375.517 May an individual shipper demand re-weighing? 375.519 Must I obtain weight tickets? 375.521 What must I do if an individual shipper wants to know the actual weight or charges for a shipment before I tender delivery? Subpart F--Transportation of Shipments Sec. 375.601 Must I transport the shipment in a timely manner? 375.603 When must I tender a shipment for delivery? 375.605 How must I notify an individual shipper of any service delays? 375.607 What must I do if I am able to tender a shipment for final delivery more than 24 hours before a specified date or period of time? 375.609 What must I do for shippers who store household goods in transit? Subpart G--Delivery of Shipments Sec. 375.701 May I provide for a release of liability on my delivery receipt? 375.703 What is the maximum collect-on-delivery amount I may demand at the time of delivery? 375.705 If a shipment is transported on more than one vehicle, what charges may I collect at delivery? 375.707 If a shipment is partially lost or destroyed, what charges may I collect at delivery? 375.709 If a shipment is totally lost or destroyed, what charges may I collect at delivery? Subpart H--Collection of Charges Sec. 375.801 What types of charges apply to subpart H? 375.803 How must I present my freight or expense bill? 375.805 If I am forced to relinquish a collect-on-delivery shipment before the payment of ALL charges, how do I collect the balance? 375.807 What actions may I take to collect the charges upon my freight bill? Subpart I--Filing Annual Arbitration Reports Sec. 375.901 What is an annual arbitration report? 375.903 Who must file an annual arbitration report? 375.905 Where and when do I file an annual arbitration report? 375.907 How must I prepare and submit an annual arbitration report? Subpart J--Penalties Sec. 375.1001 What penalties do we impose for violations of this part? Appendix A--Your Rights and Responsibilities When You Move Authority: 5 U.S.C. 553; 49 U.S.C. 13301 and 14104; and 49 CFR 1.48. Subpart A--General Requirements Sec. 375.101 Who must follow these regulations? You, a motor common carrier engaged in the transportation of household goods, must follow the regulations in this part when offering your services to individual shippers. You are subject to this part only when you transport household goods for individual shippers by motor vehicle in interstate commerce. Sec. 375.103 What are the definitions of terms used in this part? (a) Terms used in this part: Advertisement means any communication to the public in connection with an offer or sale of any interstate transportation service. This includes written or electronic database listings of your name, address, and telephone number in an on-line database. This excludes advertisements over airwaves, including radio and television, and listings of your name, address, and telephone number in a telephone directory or similar publication. Cashier's check means a check that has all four of the following characteristics: (1) Drawn on a bank as defined in 12 CFR 229.2. (2) Signed by an officer or employee of the bank on behalf of the bank as drawer. (3) A direct obligation of the bank. (4) Provided to a customer of the bank or acquired from the bank for remittance purposes. Household goods, as used in connection with transportation, means [[Page 27140]] the personal effects or property used, or to be used, in a dwelling. The personal effects and property must be a part of the equipment or supplies of such a dwelling or similar property. Individual shipper or householder means any person who is the consignor or consignee of a household goods shipment and you identify him or her as such in the bill of lading contract. The individual shipper owns the goods being transported. May means an option. You may do something, but it is not a requirement. Must means a legal obligation. You must do something. Order for service means a document authorizing you to transport an individual shipper's household goods. Reasonable dispatch means the performance of transportation on the dates, or during the period of time, agreed upon by you and the individual shipper and shown on the Order For Service/Bill of Lading. For example, if you deliberately withhold any shipment from delivery after an individual shipper offers to pay the binding estimate or 110 percent of a non-binding estimate, you have not transported the goods with reasonable dispatch. The term ``reasonable dispatch'' excludes transportation provided under your tariff provisions requiring guaranteed service dates. You will have the defenses of force majeure, i.e., superior or irresistible force, as construed by the courts. ``Force majeure'' in this context, means a defense protecting the parties in the event that a part of the contract cannot be performed due to causes which are outside the control of the parties and could not be avoided by exercise of due care. Should means a recommendation. We recommend you do something, but it is not a requirement. Transportation of household goods means either one of the following two provisions: (1) The householder (an individual shipper) arranges and pays for transportation of household goods. This may include transportation from a factory or store, when the individual shipper purchases the household goods with the intent to use the goods in his or her own dwelling. (2) Another party arranges and pays for the transportation of household goods. We, us, and our means the Federal Highway Administration (FHWA). You and your means a motor common carrier engaged in the transportation of household goods and its household goods agents. (b) Where may other terms used in this part be defined? You may find other terms used in this part defined in 49 U.S.C. 13102. The definitions in that statute control. If terms are used in this part and the terms are neither defined here nor in 49 U.S.C. 13102, the terms will have the ordinary practical meaning of such terms. Subpart B--Before Offering Services to Customers Liability Considerations Sec. 375.201 What is my normal liability for loss and damage when I accept goods from an individual shipper? (a) In general, you are legally liable for loss or damage if it happens during performance of any one of the following three services identified on your lawful bill of lading: (1) Transportation of household goods. (2) Storage-in-transit of household goods, including incidental pickup or delivery service. (3) Servicing of an appliance or other article, if you or your agent performs the servicing. (b) You are liable for loss of, or damage to, any household goods to the extent provided in the current Surface Transportation Board's released rates order (see RELEASED RATES OF MOTOR COMMON CARRIERS OF HHG, 9 I.C.C. 2d 523 (1993)). (c) You may have additional liability if you sell excess liability insurance. Sec. 375.203 What actions of an individual shipper may limit or reduce my normal liability? (a) If an individual shipper includes perishable household goods without your knowledge, you need not assume liability for these items. (b) If an individual shipper agrees to ship household goods released at a value greater than $1.32 per kilogram (60 cents per pound) per article, your liability for loss and damage may be limited to $220 per kilogram ($100 per pound) per article if the individual shipper fails to notify you in writing of articles valued at more than $220 per kilogram ($100 per pound). (c) If an individual shipper notifies you in writing that an article valued at greater than $220 per kilogram ($100 per pound) will be included in the shipment, the shipper will be entitled to full recovery up to the declared value of the article or articles, not to exceed the declared value of the entire shipment. General Responsibilities Sec. 375.205 May I have agents? (a) You may have agents provided you comply with paragraphs (b) and (c) of this section. A household goods agent is defined as either one of the following two types of agents: (1) A prime agent provides a transportation service for you or on your behalf, including the selling of, or arranging for, a transportation service. You permit or require the agent to provide services under the terms of an agreement or arrangement with you. A prime agent does not provide services on an emergency or temporary basis. A prime agent does not include a household goods broker or freight forwarder. (2) An emergency or temporary agent provides origin or destination services on your behalf, excluding the selling of, or arranging for, a transportation service. You permit or require the agent to provide such services under the terms of an agreement or arrangement with you. The agent performs such services only on an emergency or temporary basis. (b) If you have agents, you must have written agreements between you and your prime agents. You and your retained prime agent must sign the agreements. (c) Copies of all your prime agent agreements must be in your files for a period of at least 24 months following the date of termination of each agreement. Sec. 375.207 What items must be in my advertisements? (a) You and your agents must publish and use only truthful, straightforward, and honest advertisements. (b) You must include, and you must require each of your agents to include, in all advertisements for all services (including any accessorial services incidental to or part of interstate transportation), the following two elements: (1) Your name or trade name, as it appears on our document assigning you a U.S. DOT number, or the name or trade name of the motor carrier under whose operating authority the advertised service will originate. (2) U.S. DOT number, assigned by us authorizing you to operate as a for-hire motor carrier. (c) Your FHWA-assigned U.S. DOT number must be displayed only in the following form in every advertisement: U.S. DOT No. (assigned number). Sec. 375.209 How must I handle complaints and inquiries? (a) You must establish and maintain a procedure for responding to complaints and inquiries from your individual shippers. (b) Your procedure must include all four of the following items: [[Page 27141]] (1) A communications system allowing individual shippers to communicate with your principal place of business by telephone. (2) A telephone number. (3) A clear and concise statement about who must pay for complaint and inquiry telephone calls. (4) A written or electronic record system for recording all inquiries and complaints received from an individual shipper by any means of communication. (c) You must produce a clear and concise written description of your procedure for distribution to individual shippers. Sec. 375.211 Must I have an arbitration program? (a) You must have an arbitration program for individual shippers. You must establish and maintain an arbitration program with the following eleven minimum elements: (1) You must design your arbitration program to prevent you from having any special advantage in any case where the claimant resides or does business at a place distant from your principal or other place of business. (2) Before the household goods are tendered for transport, your arbitration program must provide notice to the individual shipper of the availability of neutral arbitration, including all three of the following items: (i) A summary of the arbitration procedure. (ii) Any applicable costs. (iii) A disclosure of the legal effects of election to use arbitration. (3) Upon the individual shipper's request, you must provide forms and information necessary for initiating an action to resolve a dispute under arbitration. (4) You must require each person you authorize to arbitrate to be independent of the parties to the dispute and capable of resolving such disputes, and you must ensure the arbitrator is authorized and able to obtain from you or the individual shipper any material or relevant information to carry out a fair and expeditious decision making process. (5) You must not charge the individual shipper more than one-half of the total cost for instituting the arbitration proceeding against you. In the arbitrator's decision, the arbitrator may determine which party must pay the cost or a portion of the cost of the arbitration proceeding, including the cost of instituting the proceeding. (6) You must refrain from requiring the individual shipper to agree to use arbitration before a dispute arises. (7) Arbitration must be binding for claims of $1000 or less, if the individual shipper requests arbitration. (8) Arbitration must be binding for claims of more than $1000, if the individual shipper requests arbitration and the carrier agrees to it. (9) If all parties agree, the arbitrator may provide for an oral presentation of a dispute by a party or representative of a party. (10) The arbitrator must render a decision within 60 days of receipt of written notification of the dispute, and a decision by an arbitrator may include any remedies appropriate under the circumstances. (11) The arbitrator may extend the 60-day period for a reasonable period of time if you or the individual shipper fail to provide, in a timely manner, any information the arbitrator reasonably requires to resolve the dispute. (b) You must produce and distribute a concise, easy-to-read, accurate summary of the your arbitration program, including the items in this section. Sec. 375.213 What information must I provide to a prospective individual shipper? (a) Before you execute an order for service for a shipment of household goods, you must furnish to your prospective individual shipper, all four of the following documents: (1) The contents of Appendix A of this part, ``Your Rights and Responsibilities When You Move.'' (2) A concise, easy-to-read, accurate estimate of your charges. (3) A concise, easy-to-read, accurate summary of the your arbitration program. (4) A concise, easy to read, accurate summary of your customer complaint and inquiry handling procedures. Included in this description must be both of the following two items: (i) The main telephone number the individual shipper may use to communicate with you. (ii) A clear and concise statement concerning who must pay for telephone calls. (b) To comply with paragraph (a)(1) of this section, you must produce and distribute a document with the text and general order of appendix A to this part as it appears. The following three items also apply: (1) If we, the Federal Highway Administration, choose to modify the text or general order of appendix A, we will provide the public appropriate notice in the Federal Register and an opportunity for comment as required by part 389 of this subchapter before making you change anything. (2) If you publish the document, you may choose the dimensions of the publication as long as the type font size is at least 10 point or greater and the size of the booklet is at least as large as 232 square centimeters (36 square inches). (3) If you publish the document, you may choose the color and design of the front and back covers of the publication. The following words must appear prominently on the front cover in at least 12 point or greater bold or full-faced type: ``YOUR RIGHTS AND RESPONSIBILITIES WHEN YOU MOVE. OMB No. 2125-________, Expires on________ , 200______ . Furnished By Your Mover, As Required By Federal Law.'' You may substitute your name or trade name in place of ``Your Mover'' if you wish (for example, Furnished by XYZ Van Lines, As Required By Federal Law). (c) Paragraphs (b)(2) and (b)(3) of this section do not apply to exact copies of appendix A published in the Federal Register or the Code of Federal Regulations. Collecting Transportation Charges Sec. 375.215 How must I collect charges? You must issue an honest, truthful freight or expense bill in accordance with subpart A of part 373 of this subchapter. Sec. 375.217 May I collect charges upon delivery? (a) Yes. You may maintain a tariff setting forth nondiscriminatory rules governing collect-on-delivery service and the collection of collect-on-delivery funds. (b) If an individual shipper pays you at least 110 percent of the approximate costs of a non-binding estimate on a collect-on-delivery shipment, you must relinquish possession of the shipment at the time of delivery. You may specify the form of payment acceptable to you. Sec. 375.219 May I extend credit to shippers? You may extend credit to shippers in accordance with Sec. 375.807. Sec. 375.221 May I use a charge card plan for payments? (a) You may provide in your tariffs for the acceptance of charge cards for the payment of freight charges. (b) You may accept charge cards whenever shipments are transported under agreements and tariffs requiring payment by cash, certified check, or a cashier's check. (c) If you allow an individual shipper to pay for a freight or expense bill by charge card, you are deeming such payment to be equivalent to payment by [[Page 27142]] cash, certified check, or a cashier's check. (d) The charge card plans you participate in must be identified in your tariff rules as items permitting the acceptance of the charge cards. (e) If an individual shipper causes a charge card issuer to reverse a charge transaction, you may consider the individual shipper's action tantamount to forcing you to provide an involuntary extension of your credit. In such instances, the rules in Sec. 375.807 apply. Subpart C--Service Options Provided Sec. 375.301 What service options may I provide? (a) You may design your household goods service to provide individual shippers with a wide range of specialized service and pricing features. Many carriers provide at least the following five service options: (1) Space reservation. (2) Expedited service. (3) Exclusive use of a vehicle. (4) Guaranteed service on or between agreed dates. (5) Excess liability insurance. (b) If you sell excess liability insurance, you must follow the requirements in Sec. 375.303. Sec. 375.303 If I sell excess liability insurance coverage, what must I do? (a) You, your employee, or an agent, may sell, offer to sell, or procure excess liability insurance coverage for loss and damage to shipments of any individual shippers only under the following two conditions: (1) The individual shipper releases the shipment for transportation at a value not exceeding $1.32 per kilogram (60 cents per pound) per article. (2) The individual shipper fails to declare a valuation of $2.75 or more per kilogram ($1.25 or more per pound) and pays, or agrees to pay, you for assuming liability for the shipment equal to the declared value. (b) You may offer, sell, or procure any kind of excess liability insurance coverage. (c) You may offer, sell, or procure any type of policy covering loss or damage in excess of the specified carrier liability. (d) You must issue to the individual shipper a policy or other appropriate evidence of the insurance the individual shipper purchased. (e) You must provide a copy of the policy or other appropriate evidence to the individual shipper at the time you sell or procure the insurance. (f) You must issue policies written in plain English. (g) You must clearly specify the nature and extent of coverage under the policy. (h) Your failure to issue a policy, or other appropriate evidence of insurance purchased, to an individual shipper will subject you to full liability for any claims to recover loss or damage attributed to you. (i) You must provide in your tariff for the provision of selling, offering to sell, or procuring excess liability insurance service. The tariff must also provide for the base transportation charge, including your assumption for full liability for the value of the shipment. This would be in the event you fail to issue a policy or other appropriate evidence of insurance to the individual shipper at the time of purchase. Subpart D--Estimating Charges Sec. 375.401 Must I estimate charges? (a) Before you execute an order for service for a shipment of household goods for an individual shipper, you must estimate the total charges in writing. The written estimate must be one of the following two types: (1) A binding estimate, an agreement made in advance with your individual shipper. It guarantees the total cost of the move based upon the quantities and services shown on your estimate. (2) A non-binding estimate, what you believe the total cost will be for the move, based upon the estimated weight or volume of the shipment and the accessorial services requested. A non-binding estimate is not binding on you. You will base the final charges upon the actual weight of the individual shipper's shipment and the tariff provisions in effect. (b) For non-binding estimates, you should provide your best estimate of the approximate costs the individual shipper should expect to pay for the transportation and services of such shipments. If you provide an inaccurately low estimate, you may be limiting the amount you will collect at the time of delivery as provided in Sec. 375.407. (c) You and the individual shipper must sign the estimate of charges. You must provide a dated copy of the estimate of charges to the individual shipper at the time you sign the estimate. (d) Before loading a household goods shipment, and upon mutual agreement of both you and the individual shipper, you may amend an estimate of charges. Sec. 375.403 How must I provide a binding estimate? (a) You may provide a guaranteed binding estimate of the total shipment charges to the individual shipper, so long as it is provided for in your tariff. The individual shipper must pay the amount for the services included in your estimate. You must comply with the following eight requirements: (1) You must provide a binding estimate in writing to the individual shipper or other person responsible for payment of the freight charges. (2) You must retain a copy of each binding estimate as an addendum to the bill of lading. (3) You must clearly indicate upon each binding estimate's face the estimate is binding upon you and the individual shipper. Each binding estimate must also clearly indicate on its face the charges shown are the charges being assessed for only those services specifically identified in the estimate. (4) You must clearly describe binding estimate shipments and all services you are providing. (5) If it appears an individual shipper has tendered additional household goods or requires additional services not identified in the binding estimate, you are not required to honor the estimate. However, before loading the shipment, you must do one of the following three things: (i) Reaffirm your binding estimate. (ii) Negotiate a revised written binding estimate listing the additional household goods or services. (iii) Agree with the individual shipper, in writing, that both of you will consider the original binding estimate as a non-binding estimate subject to Sec. 375.405. (6) Once you load a shipment, failure to execute a new binding estimate or a non-binding estimate signifies you have reaffirmed the original binding estimate. You may not collect more than the amount of the original binding estimate, except as provided in paragraph (a)(7) of this section. (7) If the individual shipper adds additional services at the destination and the services fail to appear on your estimate, you may require full payment at the time of delivery for those services your individual shipper added at destination. (8) Failure to relinquish possession of a shipment upon an individual shipper's offer to pay the binding estimate amount constitutes a failure to transport a shipment with ``reasonable dispatch'' and subjects you to cargo delay claims pursuant to 49 CFR part 370. (b) If you do not provide a binding estimate to an individual shipper, you must provide a non-binding estimate to [[Page 27143]] the individual shipper in accordance with Sec. 375.405. (c) You must retain a record of all estimates of charges for at least one year from the date you made the estimate. Sec. 375.405 How must I provide a non-binding