[Federal Register Volume 65, Number 154 (Wednesday, August 9, 2000)]
[Rules and Regulations]
[Pages 48601-48605]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-19018]



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  Federal Register / Vol. 65, No. 154 / Wednesday, August 9, 2000 / 
Rules and Regulations  

[[Page 48601]]



SMALL BUSINESS ADMINISTRATION

13 CFR Part 121


Small Business Size Standards; Arrangement of Transportation of 
Freight and Cargo

AGENCY: Small Business Administration.

ACTION: Final rule.

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

SUMMARY: The Small Business Administration (SBA) is establishing a size 
standard of $5.0 million in average annual receipts for the Arrangement 
of Transportation of Freight and Cargo industry (Standard Industrial 
Classification (SIC) code 4731). In addition, for brokers and agents in 
this industry such as Freight Forwarders and Customs Brokers, SBA is 
also changing the way average annual receipts are calculated for these 
firms to allow pass-through of funds held in trust for unaffiliated 
third parties. SBA is adopting two exceptions to this size standard. 
For Non-Vessel Owning Common Carriers and for Household Goods 
Forwarders (who sometimes classify themselves in SIC 4731), the current 
$18.5 million size standard will remain in effect. These revisions 
better define the size of business in this industry that SBA believes 
should be eligible for Federal small business assistance programs.

DATES: This rule is effective on September 8, 2000.

FOR FURTHER INFORMATION CONTACT: Patricia Holden, Office of Size 
Standards, (202) 205-6385.

SUPPLEMENTARY INFORMATION: SBA has received requests from the public to 
review the size standard for the Arrangement of Transportation of 
Freight and Cargo industry (Standard Industrial Classification (SIC) 
code 4731). In particular, these requests express a concern about the 
method in which average annual receipts are calculated for Freight 
Forwarders and Custom Brokers within this industry. In response to 
those requests, on July 26, 1999, SBA published a proposed rule to 
revise the size standard for the Arrangement of Transportation of 
Freight and Cargo industry from $18.5 million to $5.0 million. (See 64 
FR 40314.) The rule also proposed to revise the way average annual 
receipts are calculated to exclude pass-through of funds held in trust 
for unaffiliated third parties.
    SBA proposed this size standard based on its analysis of the latest 
available U.S. Bureau of the Census (the Census Bureau) industry data 
for SIC 4731 and Federal contract award data from the Federal 
Procurement Data Center. SBA evaluated certain factors describing the 
economic characteristics of firms in the Arrangement of Transportation 
of Freight and Cargo industry. These factors were average firm size, 
the distribution of industry revenues by size of firm, start-up costs, 
and industry competition. SBA compared the characteristics of the 
Arrangement of Transportation of Freight and Cargo industry to the 
average characteristics of all industries with a $5.0 million size 
standard which is the most common size standard established for 
nonmanufacturing industries and is referred to as the ``anchor'' size 
standard for the nonmanufacturing industries. Doing so enabled SBA to 
determine if the size standard for Arrangement of Transportation of 
Freight and Cargo industry should be higher, lower or the same as the 
$5 million anchor size standard. In addition, SBA reviewed the percent 
of total Federal contract dollars awarded to small businesses to 
determine if they were obtaining a reasonable share of Federal 
contracts. For a further discussion of SBA's size standards methodology 
and the analyses leading to the proposed size standard see the proposed 
rule of July 26, 1999 (64 FR 40314).
    We also evaluated whether certain funds should be excluded in the 
calculation of a firm's average annual receipts. We examined five 
industry characteristics under which it might be appropriate to exclude 
from a firm's receipts funds received for and then later transmitted to 
an unaffiliated third party. These five characteristics are: (1) A 
broker or agent-like relationship exists between a firm and a third 
party provider and this relationship represents a dominant or crucial 
activity of firms in the industry; (2) the pass-through funds 
associated with the broker or agent-like relationship are a significant 
portion of the firm's total receipts; (3) consistent with the normal 
business practice of firms in the industry, a firm's income remaining 
after the pass-through funds are remitted to a third party is typically 
derived from a standard commission or fee; (4) the firm does not 
usually consider billings that are reimbursed to other firms as its own 
income, preferring instead to count only receipts that are retained for 
its own use; and, (5) Federal government agencies which engage in the 
collection of statistics and other industry analysts typically 
represent receipts of the industry firms on an adjusted receipts basis. 
SBA's review of information found that these characteristics generally 
exist for the bulk of firms in the industry. Since most firms 
classified in this industry are Freight Forwarders and Customs Brokers 
who work on commission, those characteristics supported the proposal to 
exclude from the calculation of a firm's receipts funds received in 
trust for unaffiliated third parties.
    The comments we received revealed that among the 19 activities 
listed in SIC 4731, there are two major types of firms in the 
industry--those that operate as agents/brokers and have funds held in 
trust for others, and those that do not. For those that operate as 
agents/brokers the two changes proposed in the rule work together and 
result in an effective increase in their size standard. For those that 
do not, the size standard is effectively reduced because they do not 
benefit from the pass-through provision. To address the different 
situations between the two groups, we are retaining the current size 
standard for some of the 19 activities, while adopting the proposed 
size standard for most other types of firms in SIC 4731. The final rule 
makes explicit how the remaining non-agent/broker firms included in SIC 
4731 are affected by this change in the size standard. We clarify which 
activities in SIC 4731 will have a size standard of $5.0 million, which 
activities will benefit from the exclusion of pass-through of funds 
held in trust in calculating average annual receipts, and which 
activities continue to use the $18.5 million on gross receipts.

[[Page 48602]]

    This final rule adopts a size standard of $5.0 million in average 
annual receipts (after excluding funds received in trust for 
unaffiliated third parties) for all firms in SIC 4731, except for 
Household Goods Forwarders and Non-Vessel Owning Common Carriers. Firms 
engaged in agent/broker activities, such as Freight Forwarder and 
Customs Broker, receive a significant amount of receipts as pass-
through funds which will not be counted in calculating their size. 
Activities listed in SIC 4731 in which firms do not operate as agents/
brokers, such as Freight Consolidation, Freight Rate Auditors, and 
Tariff Consultants, will also have a size standard of $5.0 million in 
average annual receipts. However, the calculation of their average 
annual receipts will be the same as before since they do not receive 
pass-through funds. Although these firms will not benefit directly from 
the pass-through exclusion, SBA's analysis of the characteristics of 
firms in SIC 4731 strongly support the $5 million size standard for 
this industry. We received no comments from any of these firms in SIC 
4731 indicating otherwise.
    Included in SIC 4731 but not listed among the 19 activities, is one 
activity which does not operate either as auditor/consultant or as 
broker/agent. It is the Non-Vessel Owning Common Carriers. They acquire 
bulk space on vessels they do not own and sell that space in smaller 
units to shippers. They do not operate on an agency basis or hold funds 
in trust for unaffiliated third parties. They therefore must calculate 
average annual receipts based on gross receipts. These firms have 
substantial expenses not usually incurred by either the ``arranging'' 
or ``auditing'' types of firms. The $5.0 million size standard would 
not be reflective of their size operation, therefore we have decided to 
retain the size standard of $18.5 million for Non-Vessel Owning Common 
Carriers.
    A group of firms not included as part of SIC 4731, but who 
sometimes use that SIC code for Federal contracting purposes, is 
Household Goods Forwarders. These firms also incur substantial 
investment and overhead (such as owning or leasing large trucks and 
employing drivers) not usually found in the ``arranging'' or 
``auditing'' firms. They do not operate on commission as agents and do 
not hold funds in trust for unaffiliated third parties that can be 
``passed-through'' when calculating average annual receipts. To change 
their size standard from $18.5 million to $5.0 million without benefit 
of the pass-through provision would have an unintentional adverse 
impact. Therefore, we are also retaining the $18.5 million size 
standard for Household Goods Forwarders. This is the same size standard 
for movers in the transportation industries in Major Group 42.

Discussion of Comments

    SBA received 12 timely comments on the proposed SIC 4731 size 
standards. Two comments are from associations and 10 are from 
businesses. Nine of the 12 comments opposed the proposed size standard. 
The objections are from Household Goods Forwarders and Non-Vessel 
Owning Common Carriers who do not receive any funds that would qualify 
for the pass-through provision and so would see their size standard 
reduced. The three comments in support of the proposed size standard 
are from the Freight Forwarders and Customs Brokers who operate on 
commissions and fees and who comprise the majority of the firms in SIC 
4731. The benefit to this group by allowing average annual receipts to 
be calculated after excluding pass-through funds effectively increases 
their size standard by about three times even though the nominal size 
standard is decreased.
    One firm, that operates as a freight forwarder on a commission 
basis, was strongly in favor of the proposed changes. The commenter 
discussed the substantial benefit the proposed change in size standard 
would have for his firm and the approximately 500 other similar firms 
in his area.
    A Freight Forwarder and Customs Broker association, representing 
over 1,000 members, discussed the diversity of its membership. It noted 
that ``SIC 4731 is not a homogenous classification''. It explained that 
there are two subsets of activities that operate within the Arrangement 
of Transportation of Freight and Cargo industry: Household Goods 
Forwarders and Non-Vessel Owning Common Carriers. The association 
expressed support for the speedy adoption of the proposed rule for its 
members who operate as agents/brokers on commission. It also urged SBA 
to segregate the industries within SIC 4731 and to establish a 
different size standard for those industries that operate on contract 
or profit from leasing and sub-leasing activities. Their alternate 
recommendation, if SBA was to adopt a ``one-size-fits-all'' size 
standard, is to make the size standard $10.0 million, not $5.0 million.
    Another association also partially supported the proposed rule 
changes. It represents a large membership divided between those who 
operate as Freight Forwarders and Customs Brokers for commissions and 
fees and those who operate as Household Movers on a contract (and sub-
contract) basis. It discussed how the activities of its members are 
diverse enough that different regulatory agencies are responsible for 
licensing and oversight. The Household Movers are licensed by the 
Federal Highway Administration (FHWA) while the Freight Forwarders are 
licensed by the Federal Maritime Commission (FMC). This association 
also urged us to adopt two different size standards for the industries 
within SIC 4731. It recommended that SBA retain ``the present $18.5 
million standard for FHWA freight forwarders and adopt the $5 million 
standard with its concomitant reduction in receipts for pass-through 
funds for companies that are engaged in business as FMC ocean freight 
forwarders and/or customs brokers.''
    One group of comments opposing the proposed rule changes was from 
firms engaged in household moving and storage. Many of these firms 
obtain contracts from the Department of Defense on a ``Single Rate 
Factor'' for ``door-to-door'' service and subcontract out parts of the 
contract. They pay the subcontractor (e.g., the long-distance hauler) 
out of the single rate. Since these firms do not operate on commission 
and hold no pass-through funds, the proposed rule would have 
significantly reduced their size standard. Some of these firms have the 
word ``forwarder'' in their names, but their comments describe their 
activities as the actual mover or as the general contractor responsible 
for the entire move. For example, their comments included statements 
such as: ``they have to invest in equipment/trucks; * * * sometimes use 
third parties in providing door-to-door service, but never on an agent-
like relationship;'' they are ``active in the movement of personal 
household goods''; ``sometimes they provide storage;'' ``they use the 
services of port agents, etc., but not as brokers;'' they are 
``primarily a household goods forwarder providing door-to-door moving 
service for the Department of Defense * * * using the ``Single-Rate 
Factor'' on a contract basis;'' and ``as a small business in the moving 
industry * * *'' Only one of the comments from these firms noted that 
the five industry characteristics discussed in the proposed rule 
``clearly defines brokers'' and agreed that, ``it might be appropriate 
to exclude certain funds'' in those cases.
    The other group of firms that objected to the change in the 
proposed size standard operate as entrepreneurs. They are not agents or 
brokers and they do

[[Page 48603]]

not operate off of the ``one-rate'' fee schedule as do the Household 
Goods Forwarders. This group, known as Non-Vessel Owning Common 
Carriers, acquire large (bulk) space on ships they do not own, then 
``retail'' that space in smaller lots to actual shippers. They do not 
view themselves as transportation firms in Major Group 42 
(Transportation) because they neither own the ships nor drive the 
trucks (as do household movers). Their income is derived through the 
profit (or loss) from the resale of space they acquire in bulk from 
ship owners. If the ship sails before they have sold all their space, 
it is possible for the cost of the space to exceed the income derived 
from the space. They assume that risk as entrepreneurs. In this 
respect, they operate like wholesalers. The relevant point for this 
size standard is that their income (like Household Goods Forwarders) is 
not derived on a commission or fee basis. If the proposed size standard 
were adopted, they would be limited to the $5.0 million size standard 
without the benefit of the pass-through funds exclusion because they do 
not hold any such funds in trust for unaffiliated third parties. They 
are not currently listed as one of the 19 activities in SIC 4731. 
Never-the-less, the Census Bureau advised us that they are included in 
this SIC.
    The comments from Household Goods Forwarders and Non-Vessel Owning 
Common Carriers express a consistent and serious concern. For 
businesses between $5.0 million and $18.5 million in size that do not 
operate as agents or brokers that have substantial overhead such as 
buying trucks or bulk ship space, and that do not derive any receipts 
from commissions or fees that would qualify as pass-through funds, the 
change in the size standard from $18.5 million to $5.0 million would 
effectively lower the size standard and take away their current 
eligibility to compete for Federal contracts reserved for small 
business or obtain SBA financial assistance.
    The comments revealed that two types of firms who do not operate on 
commission would be significantly impacted by the proposed size 
standard through an unintended lowering of the size standard. The 
purpose of the proposed rule was to recognize that much of the receipts 
of Freight Forwarders and Customs Brokers (like real estate agents) are 
held in trust for others and should not be included in the calculation 
of their size. SBA accepts the significance of the concerns of the 
Household Goods Forwarders and the Non-Vessel Owning Common Carriers 
and is therefore retaining the $18.5 million gross average annual 
receipts size standard for these types of firms.
    SBA believes the Household Goods Forwarders who use SIC 4731 will 
be a small group. In most cases where firms do more than just 
``arrange'' transportation, and do not operate as agents/brokers, SBA 
believes that a different SIC code is usually more appropriate. 
Household goods moving and storage is listed by name in SIC 4213 
(Trucking, Except Local), SIC 4214 (Local Trucking with Storage), and 
SIC 4226 (Special Warehousing and Storage, Not Elsewhere Classified). 
The size standard for these industries is $18.5 million.
    The distinction between firms actually moving freight and cargo and 
those that only arrange or provide transportation services will be more 
obvious in the North American Industry Classification System (NAICS) 
which will be effective October 1, 2000 for size standard purposes (see 
further discussion below). Household movers will be classified in NAICS 
code 484210--``Used Household and Office Goods Moving,'' not Freight 
Forwarding. The same $18.5 million size standard now applicable to the 
Transportation industries was also included in the NAICS final rule (65 
FR 30836, dated May 15, 2000).
    NAICS code 484210 is comprised of parts of SIC 4212, 4213 and 4214 
(See NAICS Manual at 859). The definition states ``This industry 
comprises establishments primarily engaged in providing local or long-
distance trucking of used household, used institutional, or used 
commercial furniture and equipment. Incidental packing and storage 
activities are often provided by these establishments.''(See NAICS 
Manual at 471). We are aware that some of the activities in which 
moving firms engage can be classified as ``arranging'' transportation 
of freight or cargo. However, firms that provide multiple services 
should classify themselves under the SIC or NAICS code for their 
dominant activity. Firms that provide trucks and staff to actually 
pack, load trucks, drive trucks, store goods on a temporary basis, but 
who also subcontract out (``arrange for'') parts of the job they cannot 
or chose not to handle, are more properly classified under an 
appropriate code within Major Group 42 in the SIC Manual because acting 
as agents or brokers is not their dominant activity.
    In the proposed rule, SBA asked for comments on whether or not 
Freight Forwarders and Customs Brokers that work on commission usually 
work for about 6 percent to 10 percent of the total billing. One 
association responded to this question. It polled its members and 
verified that the range of commissions is approximately 6 percent to 10 
percent.
    We accepted the comments and are retaining the $18.5 million size 
standard for Household Goods Forwarders and Non-Vessel Owning Common 
Carriers who classify themselves in SIC 4731. This is also the size 
standard for the transportation industries in Major Group 42 
(Transportation) so that regardless of how a Moving and Storage or Non-
Vessel Owning Common Carrier firm is classified, it has the same size 
standard. We believe this is a better approach than establishing a 
$10.0 million size standard for all firms in SIC 4731 since it takes 
into account the differences in the firms currently classified under 
this size standard.
    Furthermore, the Census Bureau data does not support a size 
standard as high as $10.0 million for the entire industry. The Census 
data collects revenue information in this industry excluding funds 
received for unaffiliated third parties. Therefore, the data is 
collected as if the pass-through provision is in effect. We recognize 
that not all firms in SIC 4731 have trust funds to exclude. Even so, 
(except for the Non-Vessel Owning Common Carriers and the Household 
Goods Forwarders) a size standard of $5.0 million fit the data well 
when differences in how the broker/agent and auditor/consultant firms 
(classified in SIC 4731) account for their funds are explicitly 
recognized. The Census Bureau is already making that accommodation in 
data collection.

Reclassification of Activities Under the North American Industry 
Classification System

    The 19 activities currently listed in SIC 4731 will be divided into 
two industries under the NAICS, which SBA will adopt on October 1, 2000 
for its size standards. SBA published a final rule in the Federal 
Register May 15, 2000 to adopt the NAICS classification, listing each 
industry and its corresponding size standard (65 FR 30836). SBA's final 
rule established guidelines to use in cases where activities included 
in a SIC code were reclassified in NAICS. Newly created classifications 
generally retained the same size standards that the activity had under 
the SIC classification. In cases where an activity was removed from one 
industry group to be included in another industry group, the proposed 
rule stipulated that the size standard for that industry group would be 
that of the predominant activity.
    As mentioned above, activities currently listed in SIC 4731 will be 
put into two different classifications in

[[Page 48604]]

NAICS. Firms that do not operate as agent/brokers such as Freight Rate 
Auditors and Tariff Consultants currently listed in SIC 4731 will be 
classified as NAICS 541614, ``Process, Physical Distribution, and 
Logistics Consulting'' which is part of ``Management Consulting 
Services.'' Other non-agent/broker activities currently included in SIC 
4731 include Freight Rate Information Service, Tariff Rate Information 
Service, Transport Clearinghouse, Transportation Rate Service, Customs 
Clearance of Freight, Freight Consolidation, Shipping Documents 
Preparation, and Freight Agencies Railroad, (not operated by Railroad 
Companies). Of these, Freight Rate Information Service, Freight 
Consolidation, and Freight Agencies Railroad, (not operated by Railroad 
Companies) are reclassified as ``Freight Traffic Consulting Services,'' 
``Freight Rate Consulting Services'' or ``Transportation Management 
Consulting Services'' and are also in NAICS 541614.
    Using the NAICS procedures for establishing size standards when 
industries are reclassified, when Tariff Consultants and Freight Rate 
Auditors are added to the `Logistics' industry (NAICS code 541614), 
they will have the same $5.0 million size standard applicable to the 
entire `Logistics' industry. This size standard is consistent with what 
was proposed for these activities as part of SIC 4731 and what we are 
adopting in this final rule. All activities in NAICS 541614 will have 
the $5.0 million size standard and there is no pass-through of 
commissions for the non-commission entities.
    All other activities currently listed in SIC 4731, including agent/
broker activities who ``arrange transportation'' are classified in 
NAICS 488510, ``Freight Transportation Arrangement.'' It will be a more 
homogenous group of firms in NAICS than in the SIC. It is described in 
the NAICS manual (page 487) as establishments that are ``usually known 
as freight forwarders, marine shipping agents, or customs brokers, and 
offer a combination of services * * *.'' The SBA will also adopt the $5 
million size standard for NAICS 488510 when it establishes NAICS-based 
size standards. It will also allow pass-through of trust funds when 
calculating average annual receipts for those firms that hold funds in 
trust for unaffiliated third parties.

Compliance With Executive Orders 12866, 12988, and 13132, the 
Regulatory Flexibility Act (5 U.S.C. 601-612), and the Paperwork 
Reduction Act (44 U.S.C. 3501, Ch. 35.)

    This rule is a ``significant'' regulatory action under Executive 
Order 12866 and was reviewed by the Office of Management and Budget. 
However, it is noteworthy that the total value of Federal procurement 
and SBA guaranteed loans combined is less than $50 million annually to 
this $9.1 billion industry (1992 Economic data). It is unlikely that 
these programs would be significantly affected by this change to the 
size standard. Although potentially 1,000 firms could gain small 
business status as a result of this rule, historically only a very 
small percentage of firms in the industry compete for Federal 
procurements or obtain guaranteed loans through SBA's financial 
assistance programs.

    For purposes of Executive Order 12988, SBA has determined that this 
rule is drafted, to the extent practicable, in accordance with the 
standards set forth in Section 3 of that Order.
    For purposes of Executive Order 13132, SBA has determined that this 
rule does not have federalism implications warranting the preparation 
of a Federalism Assessment.
    For purposes of the Regulatory Flexibility Act, this rule will not 
have a substantial impact on a significant number of small entities. As 
mentioned above, although potentially 1,000 additional firms could gain 
small business status as a result of this rule, historically only a 
very small percentage of firms in the industry compete for Federal 
procurements or obtain guaranteed loans through SBA's financial 
assistance programs.
    For the purpose of the Paperwork Reduction Act, 44 U.S.C. Ch. 35, 
SBA has determined that this rule will not impose new reporting or 
record-keeping requirements.

List of Subjects in 13 CFR Part 121

    Administrative practice and procedure, Government procurement, 
Government property, Grant programs--business, Loan programs--business, 
Reporting and recordkeeping requirements, Small businesses.

    For reasons stated in the preamble, SBA is amending 13 CFR part 121 
as follows:

PART 121--SMALL BUSINESS SIZE REGULATIONS

    1. The authority citation for part 121 continues to read as 
follows:

    Authority: 15 U.S.C. 632(a), 634(b)(6), 637(a), 644(c), and 
662(5); and Sec. 304, Pub. L. 103-403, 108 Stat. 4175, 4188.


    2. Revise Sec. 121.104(a)(1) to read as follows:


Sec. 121.104  How does SBA calculate annual receipts?

    (a) * * *
    (1) Receipts means ``total income'' (or in the case of a sole 
proprietorship, ``gross income'') plus ``cost of goods sold'' as these 
terms are defined or reported on Internal Revenue Service (IRS) Federal 
tax return forms; Form 1120 for corporations; Form 1120S for Subchapter 
S corporations; Form 1065 for partnerships; and Form 1040, Schedule F 
for farm or Schedule C for sole proprietorships). However, the term 
receipts excludes net capital gains or losses, taxes collected for and 
remitted to a taxing authority if included in gross or total income, 
proceeds from the transactions between a concern and its domestic or 
foreign affiliates (if also excluded from gross or total income on a 
consolidated return filed with the IRS), and amounts collected for 
another by a travel agent, real estate agent, advertising agent, 
conference management service provider, freight forwarder or customs 
broker.
* * * * *

    3. In Sec. 121.201, currently in effect, amend the table ``Size 
Standards by SIC Industry'' as follows:
    a. Under the heading Division E--Transportation, Communications, 
Electric, Gas, and Sanitary Services, Major Group 47--Transportation 
Services, revise the entry for 4731.
    b. Revise footnote 6 at the end of the table.
    The revisions read as follows:


Sec. 121.201  What size standards has SBA identified by Standard 
Industrial Classification codes?

* * * * *

[[Page 48605]]



                      Size Standard by SIC Industry
------------------------------------------------------------------------
                                                          Size standards
                                                           in number of
                SIC code and description                   employees or
                                                            millions of
                                                              dollars
------------------------------------------------------------------------
 
 
 *                  *                  *                  *
          *                  *                   *
------------------------------------------------------------------------
 Division E--Transportation, Communications, Electric, Gas, and Sanitary
                                Services
------------------------------------------------------------------------
 
*                  *                  *                  *
         *                  *                  *
4731 Arrangement of Transportation of Freight and Cargo.        \6\ $5.0
    Non-Vessel Owning Common Carriers and Household                $18.5
     Goods Forwarders...................................
 
*                  *                  *                  *
         *                  *                  *
------------------------------------------------------------------------
Footnotes:
 
* * * * *
 
\6\ SIC codes 4724, 4731 (part), 6531,7311,7312, 7313, 7319, and 8741
  (part): As measured by total revenues, but excluding funds received in
  trust for an unaffiliated third party, such as bookings or sales
  subject to commissions. The commissions received are included as
  revenue.
 
* * * * *


    Dated: July 14, 2000.
Fred P. Hochberg,
Deputy Administrator.
[FR Doc. 00-19018 Filed 8-8-00; 8:45 am]
BILLING CODE 8025-01-U