[Federal Register Volume 68, Number 112 (Wednesday, June 11, 2003)]
[Rules and Regulations]
[Pages 35064-35113]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-14439]



[[Page 35063]]

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Part II





Department of Transportation





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Federal Motor Carrier Safety Administration



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49 CFR Parts 375 and 377



Transportation of Household Goods; Consumer Protection Regulations; 
Interim Rule

  Federal Register / Vol. 68, No. 112 / Wednesday, June 11, 2003 / 
Rules and Regulations  

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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

49 CFR Parts 375 and 377

[Docket No. FMCSA-97-2979]
RIN 2126-AA32; formerly RIN 2125-AE30


Transportation of Household Goods; Consumer Protection 
Regulations

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.

ACTION: Interim final rule; request for comments.

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SUMMARY: FMCSA is amending its regulations governing the interstate 
transportation of personal effects or property used, or to be used, in 
a private residence (household goods). Our regulations specify how 
motor carriers who transport household goods by motor vehicle in 
interstate commerce (movers) must assist their individual customers who 
ship household goods. We are updating the regulations to make them 
easier to understand and have made several changes designed to assist 
consumers. We seek additional public comment on the information 
collection requirements for this interim final rule. We will not 
enforce the information collection requirements of this interim final 
rule until we obtain approval for them from the Office of Management 
and Budget (OMB).

DATES: Effective Date: This interim final rule is effective on 
September 9, 2003.
    Compliance Date: Mandatory compliance with this interim final rule 
must begin on March 1, 2004.
    Comment Date: You must submit comments concerning the information 
collection requirements of this interim final rule on or before August 
11, 2003.
    If you submit copies of your comments to the Office of Management 
and Budget (OMB) concerning the information collection requirements of 
this document, your comments to OMB will be most useful if received at 
OMB by July 11, 2003. The OMB prefers to receive them by July 11, 2003, 
but you can submit them to OMB until August 11, 2003.

ADDRESSES: You may submit comments identified by DOT DMS Docket Number 
FMCSA-1997-2979 by any of the following methods:
    [sbull] Web Site: http://dms.dot.gov. Follow the instructions for 
submitting comments on the DOT electronic docket site.
    [sbull] Fax: 1-202-493-2251.
    [sbull] Mail: Docket Management Facility; U.S. Department of 
Transportation, 400 Seventh Street, SW., Nassif Building, Room PL-401, 
Washington, DC 20590-0001.
    [sbull] Hand Delivery: Room PL-401 on the plaza level of the Nassif 
Building, 400 Seventh Street, SW., Washington, DC, between 9 a.m. and 5 
p.m., Monday through Friday, except Federal Holidays.
    [sbull] Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting 
comments.
    Instructions: All submissions must include the agency name and 
docket number or Regulatory Identification Number (RIN) for this 
rulemaking. Note that all comments received will be posted without 
change to http://dms.dot.gov, including any personal information 
provided. Please see the Privacy Act heading for further information.
    Docket: For access to the docket to read background documents or 
comments received, go to http://dms.dot.gov at any time or to Room PL-
401 on the plaza level of the Nassif Building, 400 Seventh Street, SW., 
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, 
except Federal Holidays.
    Privacy Act: Anyone is able to search the electronic form of all 
comments received into any of DOT's dockets by the name of the 
individual submitting the comment (or signing the comment, if submitted 
on behalf of an association, business, labor union, etc.). You may 
review DOT's complete Privacy Act Statement in the Federal Register 
published on April 11, 2000 (Volume 65, Number 70; Pages 19477-78). 
This statement is also available at http://dms.dot.gov.
    Comments to OMB: If you submit copies of comments to the OMB 
concerning the information collection requirements of this document, 
you should mail, hand deliver, or fax a copy of your comments to: 
Attention: Desk Officer for the Department of Transportation, Docket 
Library, Office of Information and Regulatory Affairs, Office of 
Management and Budget, Room 10102, 725 17th Street, NW., Washington, DC 
20503, fax: (202) 395-6566.

FOR FURTHER INFORMATION CONTACT: Mr. Nathaniel Jackson, Household Goods 
Enforcement Team Leader, (202) 385-2423, Insurance Compliance Division 
(MC-ECI), FMCSA, Suite 600, 400 Virginia Avenue, SW., Washington, DC 
20024.

SUPPLEMENTARY INFORMATION:

Background

    In 1999 Congress authorized FMCSA to regulate household goods 
carriers engaged in interstate operations for individual shippers in 
the Motor Carrier Safety Improvement Act of 1999 (MCSIA) (Public Law 
106-159, December 9, 1999, 113 Stat. 1749). The Interstate Commerce 
Commission (ICC) administered household goods regulations from 1940 to 
1995. In the ICC Termination Act of 1995 (ICCTA) (Pub. L. 104-88), 
Congress terminated the ICC and transferred the household goods program 
to the Federal Highway Administration (FHWA) effective January 1, 1996. 
The FHWA administered the household goods program through its Office of 
Motor Carrier and Highway Safety. The regulations governing interstate 
household goods transportation are in 49 CFR part 375.
    The FHWA published a notice of proposed rulemaking (NPRM) on May 
15, 1998 (63 FR 27126) requesting comments on its proposal to update 
the household goods regulations. These regulations set forth regulatory 
requirements for moving companies who provide transportation for 
individual shippers. An individual shipper is generally a retired 
person or someone changing jobs. The individual shipper uses for-hire 
truck transportation services infrequently and may have little or no 
information about the regulations movers must follow and how they 
operate. This information may be essential in enabling a shipper to 
make informed decisions in selecting a mover and ensuring a 
satisfactory move.
    On March 5, 2001, the General Accounting Office (GAO) released its 
report to Congressional Committees, ``Consumer Protection: Federal 
Actions Are Needed to Improve Oversight of the Household Goods Moving 
Industry,'' No. GAO-01-318. Section 209 of the MCSIA directed that GAO 
study the effectiveness of DOT's consumer protection activities for the 
interstate household goods moving industry and identify alternative 
approaches for providing consumer protection in the industry. A copy of 
the report is in the docket. The GAO findings on the FMCSA's household 
goods program included the following: (1) The Department of 
Transportation has done little to oversee the Household Goods moving 
industry; (2) Consumer education activities have been minimal; (3) The 
Department does not know the extent to which it has examined carriers' 
compliance with Household Goods rules; and (4) The Department

[[Page 35065]]

has not determined whether its level of enforcement is appropriate.
    These regulations represent FMCSA's effort to provide a reasonable 
level of protection to consumers of household goods moves. Comments to 
the NPRM and FMCSA enforcement actions have established the need to 
address weaknesses in the system for movement of household goods. Given 
the volume and scope of household goods movements each year, FMCSA 
acknowledges that it cannot intervene in individual cases to assure 
consumers their desired result. With these regulations, FMCSA attempts 
to establish parameters of fair dealing for household goods movers and 
a reasonable level of protection for consumers. The agency seeks to 
equip consumers with information adequate to make informed decisions 
about moving their household goods.

Interim Final Rule: Request for Comments on Information Collection 
Requirements

    When the FHWA published the NPRM on May 15, 1998 (63 FR 27126) 
requesting comments on its proposal to update the household goods 
regulations, it failed to send the package separately to OMB for its 
review of the information collection requirements. Because of this 
error, it is necessary to publish this document as an Interim Final 
Rule, rather than a Final Rule, to allow OMB time to complete its 
review and to allow the public additional time to submit comments on 
the information collection requirements. As described above under 
``DATES: Comment Date:'' OMB allows 60 days for public comment, but the 
rule becomes effective September 9, 2003, allowing time for FMCSA and 
OMB to resolve any concerns about the information collection 
requirements in this Interim Final Rule. For more information on 
FMCSA's analysis of the paperwork impact, see ``Paperwork Reduction 
Act'' later in this preamble.

Docket Comments

    In response to the NPRM, the agency received 53 letters from 48 
different individuals or entities. Twenty-four (24) letters did not 
comment on any specific aspect of the NPRM. Each of these 24 letters 
told of alleged abuses the authors had suffered in past moves of their 
own household goods. Each supported in general terms the goals of the 
NPRM to protect individual shippers.
    The docket received substantive responses from the following 
entities:

Action Scale & Weighing Systems, Inc. (Action)
Air Weigh
The American Moving and Storage Association, Inc. (AMSA)
    As a combined comment, the Attorneys General of Alabama, Arkansas, 
Arizona, Florida, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, 
Massachusetts, Maryland, Missouri, New Jersey, Nevada, New York, Ohio, 
Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Washington, 
Wisconsin, and West Virginia (25AG)
The Attorney General of Connecticut (AGCT)
Cat Scale Company (Cat)
The Commonwealth of Pennsylvania's Department of Agriculture
Deskin Scale Company, Inc. (Deskin)
The National Association of Consumer Agency Administrators (NACAA)
The Oklahoma Corporation Commission (OCC)
Sisson Scale and Equipment Co., Inc. (Sisson)
Starving Students
The State of California's Department of Agriculture
The State of Colorado's Department of Agriculture
The State of Idaho's Department of Agriculture
The State of Michigan's Department of Agriculture
The State of New Hampshire's Department of Agriculture
The State of Oregon's Department of Agriculture
The State of New York's Department of Transportation (NYDOT)
The University of Minnesota's Student Legal Services
Weighing Consultants, Inc. (WCI)

FMCSA will discuss each of the substantive comments in relation to the 
specific sections they addressed.

Section 375.101 Who Must Follow These Regulations?

    AMSA objected to the use of the term ``motor common carrier engaged 
in the transportation of household goods'' in this section and Appendix 
A. AMSA notes the ICCTA deleted reference to ``common'' carriers. It 
refers to section 13102(12) of the ICCTA. AMSA believes the part 375 
regulations should reflect the terms used in the ICCTA and we should 
strike the word ``common'' wherever it appears in connection with 
``motor carrier(s).''
Response to Comments
    Although the ICCTA no longer includes a definition of ``common 
carrier,'' FMCSA is still registering household goods carriers subject 
to these regulations as ``common'' carriers, under the transitional 
rule of 49 U.S.C. 13902(d). However, FMCSA, in implementing the Uniform 
Carrier Registration System required by 49 U.S.C. 13908 expects to 
eventually eliminate the distinction between common and contract 
carriers in registering motor carriers. Consequently, we are adopting 
AMSA's suggestion by applying the regulations to for-hire motor 
carriers engaged in the interstate transportation of household goods 
for individual shippers.

Section 375.103 What Are the Definitions of Terms Used in this Part?

    AMSA comments that the term ``advertisement'' is defined as ``any 
communication to the public in connection with an offer or sale of any 
interstate transportation service.'' It believes we should define this 
term more accurately in the context of part 375 by adding the words 
``household goods'' before the word ``transportation.'' The revised 
definition would read as follows:

    ``Advertisement'' means any communication to the public in 
connection with an offer or sale of any interstate household goods 
transportation service.

    The AGCT comments that the proposed definition of ``transportation 
of household goods'' should include handling of a shipper's goods by 
the carrier or his agent, while loading at the point of pickup, 
unloading at the point of delivery, and all handling in between, 
whether in storage or in transit.
    AMSA believes that FMCSA should change the regulatory definition 
``Transportation of household goods'' by eliminating subparagraph (2), 
reading ``Another party arranges and pays for the transportation of 
household goods.'' AMSA believes this recommended change is also 
consistent with the clear intention of the original 49 CFR part 1056 
(1995) regulations that restricted their application to transportation 
paid for by the householder, specifically referencing 49 CFR 
1056.1(b)(1) (1995). AMSA comments that we should change the definition 
to read as follows:

    ``Transportation of household goods'' means the householder (an 
individual shipper) arranges and pays for the 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 dwelling.

    AMSA comments on the AGCT's comments, stating that it believes that 
such a change is not necessary. The definition of ``Transportation'' 
contained in 49 U.S.C. 13102(19) includes each of the services 
enumerated in the AGCT's recommendation and, for purposes of

[[Page 35066]]

these regulations, the statutory definition is controlling.
    AMSA also comments about this section's definition of an 
``individual shipper or householder,'' contending that it does not 
correspond to the definition of an individual shipper contained in 49 
U.S.C. 13102(10)(A). It provides, in addition to owning the goods being 
transported, the individual shipper is also the party paying for the 
move. This ``arranged and paid for by the householder'' provision 
serves to distinguish moves on behalf of individual shippers from those 
paid for by national accounts ``corporations'' for their employees as 
identified in 49 U.S.C. 13102(10)(B). AMSA states that national account 
shippers differ from individual shippers in that orders for service are 
not required (purchase orders or other similar documents are frequently 
issued in lieu of orders for service). National accounts also often 
have relocation policies that conflict with or supersede certain 
requirements of the existing regulations. Since this is an important 
distinction, AMSA believes, it suggests we change the wording of this 
provision to accurately define an individual shipper as follows:

    ``Individual shipper or householder'' means any person who is 
the consignor or consignee of a household goods shipment identified 
as such in the bill of lading contract, who also owns the goods 
being transported and pays the moving charges.

    AMSA believes the agency should modify the definition of 
``reasonable dispatch'' to make it clear that shippers are liable for 
charges related to additional services they request or require, as 
follows:

    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, plus the costs 
for additional services that were performed en route or at 
destination which were necessary to complete the transportation, you 
have not transported the goods with reasonable dispatch.
Response to Comments
    We agree with AMSA's suggestion to eliminate proposed subparagraph 
(2) from the definition of ``transportation of household goods.'' In 
the interim final rule we have combined the definitions for ``household 
goods'' and ``transportation of household goods.'' This is consistent 
with 49 U.S.C. 13102(10). We believe the AGCT recommendation regarding 
``transportation of household goods'' could have an unintended 
consequence for many individual shippers. If the agency were to adopt 
its recommendation, a mover may be able to convince an individual 
shipper that a mover or its agents, and only a mover or its agents, 
could handle the shipper's goods for loading at the point of pickup, 
unloading at the point of delivery, and all handling in between whether 
in storage or in transit. Depending on how the individual shipper 
contracts for moving services, other companies or the shipper herself 
may perform the other services.
    Movers and their agents perform many services, including what AMSA 
states on page 36 of its comments as ``the precise requirements 
necessary to properly remove the contents of a residence, secure them 
in an over-the-road vehicle and effect delivery at the new residence'' 
that ``can result in additional services which, in turn, require the 
assessment of additional charges.''
    The individual shipper may determine he/she wants to perform the 
additional services or have another party do them. Adopting the AGCT's 
comments may have the unintended consequence of having a disreputable 
mover claim to be the only entity that can handle the shipper's goods. 
FMCSA does not question that reputable movers and their reputable 
agents perform these extra services with value to the shipper, but the 
shipper may be on a tight budget, and the shipper may choose not to 
have the mover perform those ``precise requirements necessary to 
properly'' effect delivery.
    We do not agree with AMSA's suggested change to the definition of 
``reasonable dispatch'' because the change would imply that carriers 
could demand payment for additional services before delivery. Under 
this interim final rule, the most that a carrier could demand before 
delivery is 100 percent of a binding estimate or 110 percent of a non-
binding estimate.
    The agency has adopted AMSA's comments regarding the definition of 
``advertisement'' and ``individual shipper.'' We also removed the 
exclusion of advertisements on radio and television from the definition 
and clarified that Yellow Pages advertising is included in the 
definition. FMCSA also has chosen to keep the definitions for 
``Commercial shipper'' and ``Government bill of lading shipper'' the 
same as in the current rules. We are moving the definition of 
``Certified scale'' from proposed Sec.  375.507 to this section. 
Finally, we are adding new definitions to explain the terms ``Tariff'' 
and ``Surface Transportation Board.''

Section 375.201 What Is My Normal Liability for Loss and Damage When I 
Accept Goods From an Individual Shipper?

    The AGCT recommended the title of the section should be changed 
from ``loss and damage'' to ``loss or damage'' to clarify the 
differences between contractually agreed upon increases in the 
carrier's liability and the availability of insurance coverage. The 
AGCT believes we should require the carrier to disclose the limits of 
its liability in a clear, concise manner and preclude a carrier from 
characterizing contractually agreed upon increases in liability as 
``insurance.'' AGCT also believes the rules should provide that a 
carrier may have additional liability if it sells excess liability 
insurance. It is unclear to AGCT whether the proposed rule used the 
term ``excess liability insurance'' as it is normally used in the 
insurance industry or as a term of art meaning insurance in excess of 
the carrier's liability as limited by its released rates. If FMCSA 
intended to define insurance in excess of the carrier's liability as 
limited by its released rates, AGCT recommends we should simply refer 
to it as ``liability insurance.''
    AMSA believes that the AGCT suggestion that we clarify language in 
Sec.  375.201 to explain the difference between carrier liability under 
released rates orders (RRO) and the availability of excess liability 
insurance is unnecessary. Section 375.201 is directed to movers and 
AMSA believes we intended to restate the mover's understanding of the 
parameters of liability. AMSA believes movers do not require additional 
explanations along these lines to understand their liability.
    AMSA comments that paragraph (a) of this section, which states the 
mover is legally liable for loss or damage occurring during the 
transportation of household goods, should be modified to eliminate 
confusion as to the full extent of a mover's liability. Proposed 
paragraph (a) reads as follows:
    (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.
    AMSA proposes revising paragraph (a) to read as follows:
    (a) In general, you are legally liable for loss or damage if it 
happens during

[[Page 35067]]

performance of any transportation of household goods and all related 
services identified on your lawful bill of lading.
    AMSA comments that paragraph (c) of this section provides that the 
mover may incur additional liability if it sells excess liability 
insurance. AMSA states when a mover arranges for the purchase of 
insurance and a shipment is transported under separate liability 
insurance, the mover's liability is specifically limited to 60 cents 
per pound per article. AMSA believes the regulations provide for no 
additional coverage by the mover unless the mover fails to issue a copy 
of the insurance policy or other appropriate evidence of insurance as 
explained in proposed Sec.  375.303(h). Given these circumstances, AMSA 
recommends we delete this provision.
Response to Comments
    We do not agree with AGCT's suggestion to change ``loss and 
damage'' in the title of the section to ``loss or damage'' because we 
believe the words are interchangeable and essentially mean the same 
thing. We agree with AMSA's comments on paragraph (a). By using the 
phrase ``and all related services'' we can eliminate subparagraphs 
(a)(1)-(a)(3). This clarifies that the mover has liability for any 
services offered in the bill of lading.
    We are also adopting the AGCT's comments to change ``excess 
liability insurance'' to ``liability insurance.'' We agree with AGCT 
concerning the need for additional explanations regarding carrier 
liability in this section and have included appropriate language in 
Sec.  375.201(d). We do not agree with AMSA's comments concerning 
paragraph (c). Paragraph (c) builds upon proposed Sec.  375.303(h) by 
noting the full liability the carrier may be subject to if it fails to 
issue a copy of the insurance policy or other appropriate evidence of 
insurance as explained in proposed Sec.  375.303(h). Thus, we are 
keeping the provision, but have added clarifying language concerning 
Sec.  375.303(h) (Sec.  375.303(g) in this interim final rule).
    In addition, FMCSA is replacing the reference in paragraph (b) to 
the 1993 released rates order with a more generic reference. This order 
was recently amended, effective May 12, 2002. Because Surface 
Transportation Board released rates orders may change over time, the 
regulations should not be date-specific in referencing such orders.

Section 375.203 What Actions of an Individual Shipper May Limit or 
Reduce My Normal Liability?

    AMSA comments that paragraph (a) provides that the inclusion of 
perishable household goods in a shipment without notice to the mover 
relieves the mover of liability. It suggests that to comport with 
generally applicable tariff provisions that allow the mover to limit 
liability when perishables are disclosed and accepted for 
transportation, this provision should be expanded to include reference 
to hazardous and dangerous articles, as follows:

    If an individual shipper includes perishable, dangerous or 
hazardous articles in the shipment without your knowledge, you need 
not assume liability for those articles or for the loss or damage 
caused by their inclusion in the shipment. If the shipper requests 
that you accept such articles for transportation, you may elect to 
limit your liability for any loss or damage by appropriately 
published tariff provisions.

    AMSA believes paragraph (b), by including reference to units of 
weight and measure in metric terms with the Imperial equivalent 
expressed parenthetically, will prove unduly confusing to both 
individual shippers and the moving industry. It recommends that until 
such time as the metric system is more commonly recognized in the 
United States, the terms should be reversed, with the metric equivalent 
shown in parenthesis.
Response to Comments
    We have adopted AMSA's comments concerning dangerous and hazardous 
articles. This change also comports with 49 CFR 175.25 concerning 
passengers transporting dangerous or hazardous materials in airline 
baggage and 18 U.S.C. 1716 and U.S. Postal publication number 52, July 
1999 (available at http://www.usps.com/cpim/ftp/pubs/pub52.pdf and 
http://www.usps.com/cpim/ftp/pubs/pub52.htm) concerning hazardous, 
restricted, and perishable articles being proper for mailing. We have 
also placed a warning similar to Sec.  175.25(a)(1) in Appendix A to 
part 375--Your Rights and Responsibilities When You Move (YRRWYM), 
noting that the mover may limit its liability for the transportation of 
such materials in household goods.
    The National Institute of Standards and Technology (NIST) has 
advised FMCSA that we should primarily use SI (metric) measurements. 
The Omnibus Trade and Competitiveness Act of 1988 cites metric units 
before inch-pound units where both units appear together and places 
separate sections containing requirements in metric units before 
corresponding sections containing requirements in inch-pound units. In 
some cases, however, trade practice is currently restricted to the use 
of inch-pound units; therefore, some NIST requirements continue to 
specify only inch-pound units until the National Conference of Weights 
and Measures achieves a broad consensus on the permitted metric units. 
In accord with NIST policy, FMCSA will use trade practice until the 
National Conference on Weights and Measures achieves a broad consensus 
on the permitted metric units.

Section 375.205 May I Have Agents?

    The AGCT comments that we should require disclosure of any agency 
relationships to a shipper. AMSA does not object to such a requirement 
since it is normal industry practice to explain agency relationships. 
In fact, subpart B of YRRWYM contains an explicit explanation that 
alerts shippers to the existence of these relationships.
Response to Comments
    We note that requiring disclosure of any agency relationships to a 
shipper would subject us to additional information collection 
requirements of 5 CFR part 120 for that disclosure. We note the largest 
motor carriers have agents and transport the most household goods 
shipments. Since we explain in the YRRWYM that motor carriers may have 
agents and AMSA believes it is normal industry practice to make such 
disclosures, we believe it is not necessary to require a separate 
notice for shippers. We believe shippers have plenty of notice that 
agency relationships may exist and may ask about them. If a mover 
transports a shipment that used the services of an agent, and the agent 
acted upon, or omitted, items in its performance of such 
transportation, the shipper has the right to file a complaint with us 
against the motor carrier or the agent.

Section 375.209 How Must I Handle Complaints and Inquiries?

    NACAA supports the requirement that movers maintain a procedure for 
handling complaints. The AGCT requested that FMCSA impose an explicit 
affirmative requirement upon a mover to respond promptly and 
appropriately to complaints by a shipper.
    AMSA disagrees with the AGCT because:

* * * as the [AGCT] concedes, the proposed language contemplates 
that movers maintain internal systems that are responsive to 
shippers' complaints. The requirement that telephone numbers be 
furnished to shippers is sufficient to ensure ready access to the 
mover's system and, obviously, what may constitute an 
``appropriate'' response is dependent upon the facts of each 
situation. This is not a matter that warrants a more explicit 
attempt to regulate.

[[Page 35068]]

Response to Comments
    We believe it is sufficient to ensure ready access to the carrier's 
system by requiring a telephone number. As AMSA points out, what may 
constitute an ``appropriate'' response, and even a prompt response, is 
dependent upon the facts of each situation. We do not believe explicit 
regulation is warranted. We believe shippers are knowledgeable enough, 
and should be responsible enough, to inquire with better business 
bureaus and us if they are dissatisfied with a mover's complaint 
handling. Better business bureaus also monitor the number of and types 
of complaints businesses receive.

Section 375.211 Must I Have an Arbitration Program?

    A majority of household goods complaints we receive involve loss 
and damage claims. The 24 individual shippers who submitted docket 
comments generally complain about the handling of their loss and damage 
claims rather than commenting directly about any particular aspect of 
the proposed rule or solutions to correct such problems. The ICCTA 
imposes an arbitration requirement for the handling of most loss and 
damage claims against interstate movers. See 49 U.S.C. 14708. We 
proposed to amend the former ``information for shippers'' section of 
the regulations, formerly 49 CFR 375.2 (proposed Sec.  375.213), to 
replace the required summary of the carrier's dispute settlement 
program with a summary of its arbitration procedures and results.
    As we discussed in the NPRM, Congress established the arbitration 
system in the ICCTA 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 previously handed by 
the ICC. The ICC conducted the informal dispute resolution functions 
under its general authority to regulate movers, but did not have a 
specific statutory requirement to perform that function. The Congress 
wanted ``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. The MCSIA 
expanded the availability of arbitration by requiring that carriers 
provide arbitration, upon shipper request, for claims of up to $5,000 
(as opposed to the $1,000 limit in the ICCTA). The GAO report also 
studied the roles of consumers in preventing and resolving disputes.
    NACAA supports having movers maintain an arbitration program for 
loss and damage claims.
    The Consumers Union recommends we require each mover give its 
arbitration information at the time an estimate is made rather than 
before executing an order for service.
    The OCC believes arbitration should be expanded to include a format 
for alternative dispute resolution. Arbitration alone limits available 
dispute resolution means, and inasmuch as alternative dispute 
resolution enjoys widespread recognition, it would seem illogical to 
omit it.
    The AGCT requests FMCSA require the mover to provide a fair and 
prompt process that is paid for by the mover. By requiring the mover to 
bear the cost of the arbitration, the mover has an incentive to resolve 
claims and arbitration proceedings in a timely manner.
    The 25AG suggest modifying proposed Sec.  375.211(a)(2) to include 
a paragraph (iv) to require conspicuous disclosure of the right to the 
information contained in Sec.  375.211(a)(3). They believe that Sec.  
375.211(a)(2) and (b) are inadequate as disclosure requirements because 
they provide no guidance as to either the timing or manner of 
disclosure.
    The 25AG also believe consumers need to know of their right to 
forego arbitration and pursue court action under 49 U.S.C. 14704. They 
claim that many movers refuse to participate in their own program or do 
so in a dilatory fashion. They recommend that we require arbitration be 
provided at a reasonable cost and at a reasonable location, without 
undue delay before a neutral independent third party. The arbitrator 
should be empowered to grant whatever relief would be available in 
court under law or in equity.
    In AMSA's view, a requirement that all household goods carriers 
file annual arbitration reports would likely not be useful to 
consumers, itself, and the moving industry. AMSA disagrees that such 
reports would assist us in meeting our statutory responsibility to 
report to Congress regarding arbitration, and in providing individual 
consumers with relevant claims information.
    Details regarding arbitration and the relative success or failure 
of the single program that represents virtually all movers are readily 
available from AMSA, it asserts. To assist us in meeting our statutory 
reporting requirements, AMSA stated that it sent reports to FHWA 
containing the results of its arbitration program, both in advance of 
the June 1997 due date of the FHWA report to Congress and after June 
1997.
    AMSA believes that the information contained in the periodic AMSA 
reports is sufficient. It believes we can use its reports to monitor 
the moving industry under 49 U.S.C. 14708(g). From a consumer 
standpoint, AMSA is not convinced that the requested claims handling 
information would provide consumers with meaningful claims data. 
Furthermore, it also is not convinced that individual consumers are 
interested in claims data when it comes to their selection of a mover. 
Consumers are more interested, AMSA believes, in whether the mover is 
properly licensed, has insurance, has a good professional reputation, 
and complies with the regulations. AMSA reported the industry has a 
claims frequency ratio of roughly 21 percent, i.e., only one in every 
five shipments results in a claim. AMSA interprets this to mean that 
the proposed report would have no relevance to almost 80 percent of the 
consumer shippers whose shipments do not sustain loss or damage. It 
asserts that the incidence of arbitration is even less frequent. AMSA's 
experience is that less than one percent of all claims result in 
arbitration; thus more than 99 percent of the shipments transported 
will not become involved in the arbitration process.
    From a technical standpoint, AMSA believes the proposed report only 
requires the reporting of the total number of shipments transported and 
the number of claims less than and over the statutory maximum for 
mandatory arbitration. It believes the meaning of our ``total 
shipments'' (all household goods shipments; only COD shipments, 
excluding civilian government, military and national accounts) is 
unclear, as is the ``number of claims'' (claims filed; claims paid, and 
so on). AMSA presumes that it would be left to consumers to try to 
calculate a claims frequency ratio from the data provided and, if they 
get that far, to compare their particular mover's frequency with that 
of other movers or with industry average data. Complicating this 
situation is the fact that some carriers encourage the use of 
arbitration, while others do not. Therefore, individual carrier data 
may be entirely misleading, e.g., a high number of arbitration cases 
could be construed to mean the carrier has an unacceptable claims 
experience when precisely the opposite may be true since the number of 
arbitrations may bear no relation to the number of claims.
    In addition, AMSA asserts that the language of the proposal makes 
it clear that FMCSA will be required to process and maintain over 2,000 
carrier annual

[[Page 35069]]

reports in order to respond to consumer requests for information. Also, 
FMCSA would be required to allocate resources to answer consumer 
questions regarding the reports and compile aggregate statistics to be 
in a position to answer consumer questions regarding the importance and 
meaning of a given carrier's data. Consumers will be unable to make 
informed decisions regarding report data unless they know how specific 
carrier data compares to industry average data. All of this assumes 
that we have the necessary staff to collect, process, and disseminate 
more than 2,000 such reports each year to even a fraction of the 
600,000 individual shippers who may choose to request a copy. Since 
experience has shown AMSA that considerably less than 1,000 shippers 
will request arbitration in any year, any benefits that may be derived 
from this system will be overshadowed by the time, effort, and money 
expended preparing, filing, copying, and disseminating such reports.
    AMSA also comments that paragraph (a)(3) would require that, upon 
an individual shipper's request for arbitration, the mover must furnish 
forms and information necessary to initiate an action to resolve a 
dispute. It believes the requirement that specific forms be furnished 
will be unduly burdensome.
    Section 14703 of the Code, it argues, requires that movers furnish 
shippers with written information explaining the availability of their 
dispute settlement programs. One of the benefits of these programs is 
that the process (at least the AMSA version of the process) is quite 
informal and easy to use. No forms are required. Instead, shippers need 
only submit a written request for arbitration by letter or facsimile. 
AMSA believes requiring the use of specific forms to initiate the 
procedure will only serve to unduly complicate a program that has been 
running effectively without such forms for more than two years. 
Accordingly, it recommends that the words ``forms and'' should be 
deleted from paragraph (a)(3).
    The AGCT recommends that the cost of arbitration be borne entirely 
by movers to provide an incentive to resolve claims promptly.
    AMSA believes that Congress has addressed this point. Shippers may 
not be assessed more than one-half the cost of arbitration and 
arbitrators' decisions may include cost assessments. See 49 U.S.C. 
14708(b)(5). It argues that Congress no doubt viewed the payment by 
shippers of a portion of the expense of arbitration as a means to 
discourage the presentation of frivolous claims. Of course, movers may 
elect to bear a greater portion or all of these costs if they so elect.
    The OCC recommends that arbitration be expanded to include 
``Alternative Dispute Resolution,'' arguing that arbitration alone is 
limiting. AMSA believes that Congress has also addressed this point. 
The applicable statute, 49 U.S.C. 14708, refers to ``arbitration'' as a 
means of settling disputes between movers and shippers. That aside, 
``Alternative Dispute Resolution'' is a generic term that refers to a 
wide array of practices which are intended to resolve disagreements at 
lower cost than would be incurred in litigation and includes 
arbitration.
    The 25AG recommend that the proposed arbitration section should be 
strengthened in several respects by the addition of requirements for 
prominent disclosure of consumers' rights at the outset of the 
transportation transaction and expeditious processing of requests for 
arbitration by impartial third parties.
    AMSA is not opposed to an explicit recitation of mover 
responsibilities related to disclosure and other aspects of statutorily 
mandated arbitration programs. However, it argues that the predicate 
for the 25AG's argument is that if the regulations are not explicit, 
``* * * many movers will not participate in arbitration in good faith 
otherwise.'' Such a proposition is obviously inconsistent, it states.
    If a mover is intent on violating the requirements of law, AMSA 
argues, explicit regulatory language will not act as a deterrent. This 
is a matter of enforcement. To the extent the 25AG have, as they 
assert, encountered movers that do not participate in an arbitration 
program, AMSA argues that those movers should be reported to FMCSA for 
enforcement action.
    Moreover, AMSA notes that the proposed regulation contains no less 
than 14 explicit directives that will govern all aspects of mover 
arbitration programs. One of those requirements states that: ``You must 
produce and distribute a concise, easy-to-read, accurate summary of 
your arbitration program, including the items in this section.'' Sec.  
375.211(b). In addition, paragraph (a)(2) requires that ``Before the 
household goods are tendered for transport, your arbitration program 
must provide notice to the individual shipper of the availability of 
neutral arbitration. * * *'' Thus AMSA believes these and other 
provisions of the proposed regulations clearly address the 25AG's 
concerns.
Response to Comments
    We agree with AMSA. We believe the annual arbitration report 
(proposed Sec. Sec.  375.901-375.907) will not be a benefit to 
shippers, the industry, or FMCSA. We also believe we should not retain 
the ICC's annual performance report elements for a combined annual 
report. Consumers will have to make informed decisions regarding 
movers' products and services without past performance reports that 
have been, and most likely would continue to be, inaccurate. FMCSA does 
not have the necessary staff to collect, process, verify, and 
disseminate such reports each year to all individual shippers, consumer 
advocacy organizations, and attorneys general who may choose to request 
a copy.
    AMSA was correct that FMCSA would be required to process and 
maintain over 4,000 carrier annual reports in order to respond to 
consumer requests for information. (The NPRM used the figure 2,000 for 
the number of motor carriers, but we are using 4,000 in this Interim 
Final Rule, based on the FMCSA Motor Carrier Management Information 
System and Insurance Division's best estimate in March 2002 of the 
number of active household goods carriers authorized to operate in 
interstate commerce.) Also, the agency would have to allocate resources 
to answer consumer questions regarding the reports and compile 
aggregate statistics if we were to be in a position to answer consumer 
questions regarding the importance and meaning of a given carrier's 
data. Consumers would be unable to make informed decisions regarding 
report data unless they know how specific carrier data compares to 
industry average data. All of this would assume that FMCSA would have 
the necessary staff to collect, process, and disseminate more than 
4,000 such reports each year to even a fraction of the 600,000 
individual shippers who may choose to request a copy. Any benefits that 
may be derived from a reporting system would be outweighed by the time, 
effort, and money expended preparing, filing, copying, and 
disseminating such reports. FMCSA cannot justify the information 
collection costs in accordance with the Paperwork Reduction Act of 1995 
(44 U.S.C. 3501-3520). Therefore, FMCSA is withdrawing the proposal to 
require the filing of an annual arbitration report.
    We congratulate AMSA for not needing forms to initiate its 
arbitration programs. As AMSA points out, however, it does not 
represent all interstate movers. FMCSA does not want to preclude a 
mover who finds it

[[Page 35070]]

necessary to have a form from requiring that form and we would require 
the mover provide it upon the individual shipper's request.
    We note, in response to comments by NACAA and OCC, that consumers 
have numerous remedies available to them before entering the 
arbitration process or if carriers fail to establish and maintain 
arbitration processes. As the 25AG note, consumers, NACAA, and the OCC 
should know of the consumer's right to decline from participating in 
arbitration, and, instead, pursue court action under 49 U.S.C. 14704. 
We believe it is not necessary to inform movers of this right in part 
375 since AMSA has shown through its comments that its members have a 
good understanding of the statute. FMCSA has added this information to 
the YRRWYM appendix, though, to be provided to shippers for their 
benefit.
    NACAA should not be surprised about our position regarding our 
limited role in dispute resolution. The Congress, as the NPRM noted, 
provided a clear understandable directive against allocating scarce 
resources to resolve private disputes and indicated that our primary 
role was to oversee the regulations. The GAO report also noted this 
Congressional directive.
    We are not adopting the NACAA recommendation that the regulations 
require that other Federal, State, and local agencies retain 
jurisdiction over movers' acts and practices. This can be accomplished 
only by statute, not through these regulations.

Section 375.213 What Information Must I Provide to a Prospective 
Individual Shipper?

    NACAA supports requiring movers to provide all prospective 
customers with the YRRWYM booklet. NACAA further believes movers should 
be required to insert their prior two years arbitration reports in 
YRRWYM to enable consumers to examine the claims history of a 
prospective mover. It believes the expense to movers will be 
negligible. It also recommends that all movers post annual arbitration 
reports on the Internet with references to their web site in YRRWYM and 
that FMCSA audit these arbitration reports.
    The AGCT suggests requiring movers to provide a prospective shipper 
with a copy of a blank uniform bill of lading used by the mover before 
loading the shipment, to give the shipper an opportunity to review and 
ask meaningful questions about the terms listed on the form. It also 
would require movers to provide copies of their tariffs to properly 
inform the consumer of possible charges that may be levied by the 
mover.
    The Consumers Union recommends that the information required by 
this section be provided at the time an estimate is given rather than 
before an order for service is executed.
    AMSA believes the AGCT's recommendation that movers be required to 
provide a blank bill of lading and their tariffs to prospective 
shippers is unrealistic and burdensome. AMSA alleges that industry data 
indicates that roughly three shipment surveys are performed for each 
shipment booked. AMSA did not provide the data for the docket. AMSA 
believes requiring the distribution of bills of lading and tariffs 
containing several hundred pages of technical matter to prospective 
shippers would burden shippers and movers alike. In any event, Congress 
has addressed this issue by requiring in 49 U.S.C. 13702(c)(1) that 
movers provide notice of the availability of their tariffs for shippers 
who would elect to examine tariff provisions related to their move.
    Consumers Union strongly urges FMCSA to redraft YRRWYM into even 
plainer language. As one example it states that subpart K should be at 
the front of the pamphlet.
    AMSA disagrees with the Consumers Union. The proposed YRRWYM 
publication is a substantial revision of the former ICC publication. 
AMSA believes it significantly clarifies many points that are important 
to consumers in language that represents a major improvement over the 
former ICC language.
Response to Comments
    FMCSA will adopt the specific recommendation provided by the 
Consumers Union by moving Subpart K to the front of the pamphlet.
    In the interim final rule, FMCSA has added a paragraph (a)(3) 
requiring movers to provide notice of the availability of the 
applicable sections of their tariffs for shippers' examination or have 
copies sent to them upon request. FMCSA believes this addition provides 
shippers with adequate information to assist themselves in asking 
informed questions.
    To require significant additional consumer information be provided 
by carriers, as recommended by some commenters (arbitration reports, 
blank bills of lading, complete copies of tariff) at the time an 
estimate is given, would add significant burdens on carriers beyond 
anything proposed in the NPRM. Since shippers frequently obtain more 
than one estimate, the additional burden on carriers could be 
multiplied several times. Also, because most tariffs are voluminous 
documents, FMCSA believes that it is beneficial to both shippers and 
carriers to limit the additional requirements in paragraph (a)(3) to 
the applicable sections of the tariff.

Section 375.215 How Must I Collect Charges?

    The OCC recommends the option of pre-payment be made available at 
the shipper's election, especially for weight-based shipments. The 
mover would insure an accurate weight before shipping to protect its 
weight-based revenues. The shipper, in turn, would have more confidence 
in the weight and pre-payment of freight charges would eliminate 
unexpected destination or other charges.
    AMSA questions whether OCC's recommendation would serve the 
interests of shippers. Section 375.401(a)(1) of the proposed 
regulations provides a mechanism for guaranteed charges. Shippers have 
the option of electing to tender their goods under a binding estimate 
and, in fact, many exercise that option. AMSA states that its data 
indicates that 47.2 percent of all COD consumer shipments were 
transported under binding estimate tariff provisions in 1996. (AMSA did 
not provide this data for the docket.) AMSA believes that authorizing 
payment of transportation charges in advance of the actual delivery of 
goods could provide unscrupulous movers with the opportunity to deceive 
shippers. As a case in point, it notes the experience of Ms. Josephine 
Meany, whose complaint is included in the NACAA comments. 
Unfortunately, Ms. Meany paid thousands of dollars to an unlicensed 
mover for what amounted to essentially no service. Her son's goods were 
not transported to the intended destination and she was forced to hire 
and pay a second mover to transport the goods. AMSA urges that we 
reject the OCC recommendation.
Response to Comments
    FMCSA agrees with AMSA. The shipper may not know at the time he or 
she contracts for transportation whether circumstances related to the 
move may cause additional freight charges beyond those agreed upon at 
origin. The mover should not be held accountable for poor planning on 
the shipper's part. FMCSA, however, has added regulatory text to the 
interim final rule that specifies that all rates and charges for the 
transportation and services rendered must be in accordance with the 
mover's applicable tariff in effect, including the method of payment.

[[Page 35071]]

Section 375.217 How Must I Collect Charges Upon Delivery?

    NACAA requests a modification stating that the mover ``may specify 
two forms of payment acceptable, only one being cash or a cash 
equivalent.''
    The AGCT suggested FMCSA establish nondiscriminatory rules 
governing cash-on-delivery (COD) service and collection of COD funds 
rather than allowing movers to develop their own procedures in the 
tariff. It suggested modifying paragraph (b) to require movers to 
relinquish possession of a shipment upon payment by the consumer of an 
amount substantially less than the binding or non-binding estimate. 
This provides the consumer with some leverage over the mover in the 
event of a dispute. The mover would have to pursue a claim against the 
consumer rather than requiring full payment by the consumer and forcing 
the consumer to pursue the mover. Such a burden shift provides greater 
protection for the consumer.
    AMSA comments that the NACAA proposal, if adopted, would limit the 
options available to movers and their customers to effect the payment 
of transportation charges. The generally applicable options for payment 
are cash, certified check, traveler's check, or bank check (drawn by a 
bank and signed by a bank officer). See HGB Tariff 400-M, Item 29. In 
addition, the existing credit regulations in Sec.  377.215, the 
household goods regulations in Sec.  375.19, and proposed Sec.  
375.221, authorize the credit card option for payment and provide 
specific requirements related to the use of credit. Taken as a whole, 
AMSA believes these provisions adequately address the concerns 
expressed by NACAA.
    AMSA believes the AGCT proposal for adopting nondiscriminatory 
rules for the collection of transportation charges in this proceeding 
is addressed in the preceding paragraph. Additionally, AMSA asserts 
that the AGCT has apparently neglected to consider the discussion at 
page 27128 of the NPRM that outlines the FHWA response to the moving 
industry's request for amendment of the existing credit regulations. 
AMSA states ``obviously, household goods movers are not at liberty to 
fashion payment and/or extension of credit tariff provisions that would 
violate the existing or proposed FHWA regulations.''
    The 25AG argue that the form of payment issue is directly related 
to consumer overcharge complaints. The 25AG therefore propose that 
Sec.  375.221 require that, if a mover agrees to accept a credit card 
at the beginning of the shipment transaction, the credit card should be 
accepted at delivery. They also propose a related amendment to Sec.  
375.503(b)(9) dealing with bill of lading contents, which would require 
disclosure of the form of payment required upon delivery if it is 
different from that agreed to at the outset of the transaction.
    In a similar vein, the AGCT is opposed to permitting movers to 
treat the reversal of a credit card transaction as an involuntary 
extension of credit. It argues that consumers should be authorized to 
treat a mover's failure to pay a claim for delay or loss/damage as an 
``involuntary extension of the shipper's credit to the mover,'' thus 
subjecting the mover to the same financial penalties as the consumer 
bears under the credit regulations at Sec.  375.807.
    AMSA asserts that each of these proposals is fraught with the 
potential for endless controversies between movers and shippers. More 
importantly, it believes, they reflect a misunderstanding of 
Congressional intent. Section 13707 provides that a motor carrier ``* * 
* shall give up possession at the destination of the property 
transported by it only when payment for the transportation or service 
is made.'' Since the extension of credit by movers is permissive, it 
would be foolhardy to adopt regulations that would attempt to address 
these issues since they cannot adequately anticipate the many 
circumstances that occur when drivers and consumers settle accounts at 
the time of delivery. AMSA argues that accepting a credit card at 
origin, for example, provides the consumer with sufficient time to seek 
alternative means of payment should the charge amount be declined by 
the card issuer. If a driver delivers on weekends or after hours and 
the mover's credit/collection department is closed, the driver cannot 
call in the charges and the mover will not be in a position to make 
certain that the card issuer will accept the charge. Dealing with a 
credit card at delivery may also cause unnecessary delays. If the 
charge is declined, the consumer must seek alternative means of payment 
that could unnecessarily delay delivery. In the meantime, the mover 
must wait, which could result in additional charges, vehicle detention, 
or storage-in-transit. These proposals could have the unfortunate 
result of forcing movers to limit the payment alternatives that are 
presently offered to shippers.
    AMSA strongly opposes the AGCT proposal that movers should be 
required to relinquish possession of a shipment upon payment of an 
amount ``substantially less than the binding or non-binding estimate'' 
in order to provide consumers with ``leverage'' in the event a dispute 
arises. AMSA believes it obviously ignores the requirements of 49 
U.S.C. 13707 and the important requirement contained in 49 U.S.C. 
13702(a)(2) that:

    The mover may not charge or receive a different compensation for 
the transportation or service than the rate specified in the tariff, 
whether by returning a part of that rate to a person, giving a 
person a privilege, allowing the use of a facility that affects the 
value of that transportation or service, or another device.

    AMSA believes the 25AG have approached this and a number of other 
issues as if the regulations to be promulgated should be treated in a 
vacuum with no consideration given to underlying statutory directives 
or restraints. They also ignore the fact that movers have a lien on the 
goods they transport and may refuse to deliver until their charges are 
paid or guaranteed. Illinois Steel Co. v. Baltimore & Ohio Railroad 
Co., 320 U.S. 508 (1944).
Response to Comments
    FMCSA appreciates the comments received regarding this section and 
has incorporated the recommendation that we require the mover to 
specify the form of payment when the mover prepares the estimate. The 
mover and its agents must honor the form of payment at delivery, except 
when a shipper agrees to a change. The mover must include the same 
information on the order for service and bill of lading. It is 
important to state in the rule that the carrier must accept the method 
of payment originally agreed in order to avoid unnecessarily burdening 
the shipper, who may not be prepared to make an alternative form of 
payment. For example, in a case where a cashier's check is the agreed 
payment and the carrier demands cash on a Saturday evening when the 
bank is closed, a serious problem would be created for the shipper, 
most likely resulting in the driver leaving without unloading the 
shipment.
    FMCSA has also added another requirement to the interim final rule. 
If the mover or its agent agrees to accept a charge or credit card 
payment as the method to pay for receipt of goods at delivery, then the 
mover must arrange for delivery during the time the mover's credit/
collection department is open to seek approval of payment by card 
issuer, unless the vehicle is equipped to process credit card payments.

[[Page 35072]]

Section 375.221 May I Use a Charge or Credit Card Plan for Payments?

    The OCC believes the term ``cashier's check'' should not supplant 
the term ``money order.'' A loss of an open money order that does not 
denote a payee can result in a stop payment of the same. No stop 
payment is available for the loss of cash. A shipper may hesitate to 
carry a large sum of cash and may want to go to a convenience store and 
convert the cash into consecutive money orders. AMSA agrees that both 
terms should be used.
    The 25AG believe the regulations should mandate that the mover's 
payment policy be the same at all stages of the transaction. If charge 
or credit cards are permitted at the order for service, the cards 
should be allowed at the time of delivery. They suggest that carriers 
should inform consumers of their payment policies.
    The AGCT suggests the regulations should not allow carriers to 
treat reversal of credit card transactions as an involuntary extension 
of credit. This is not consumer protection, it believes. If carriers 
suffer financial loss due to actions of the consumer, carriers should 
be required to rely on the same avenues of dispute resolution that are 
available to the shipper. It further recommends that FMCSA should allow 
a consumer to treat a carrier's failure to pay a claim for untimely 
shipments or damage or loss as an involuntary extension of the 
shipper's credit to the carrier, subjecting the carrier to the same 
financial penalties as the consumer listed in Sec.  375.807.
Response to Comments
    FMCSA has added money orders as a form of acceptable payment in the 
interim final rule. If a mover accepts money orders as an acceptable 
form of payment, the mover must include the provision in its tariff.
    FMCSA has also added language to Sec.  375.221(a) to make it clear 
that a carrier is bound by the payment provisions in its tariff from 
the time it gives an estimate until completion of any transaction that 
results from that estimate, unless otherwise agreed with a shipper 
under Sec.  375.217(a).
    FMCSA has retained the rule language that allows a carrier to treat 
a reversal of a credit card transaction as an involuntary extension of 
credit because the use of a credit card is considered an alternative to 
payment in cash, certified check, money order, or cashiers check, which 
are payment methods that cannot be reversed.
    However, FMCSA has not added a provision allowing a consumer to 
treat an unpaid claim against a carrier as an involuntary extension of 
credit. Adding such a provision would be beyond the scope of the NPRM. 
Resolution of a claim that may be in dispute is traditionally resolved 
in a State court.

Section 375.301 What Service Options May I Provide?

    The AGCT recommends that the regulations should require carriers to 
have liability insurance covering casualty losses resulting from the 
actions of the carrier.
    AMSA comments that the rationale underlying the AGCT recommendation 
is not clear. AMSA states that carriers are liable for cargo loss and 
damage under 49 U.S.C. 14706 and must provide evidence of insurance 
pursuant to 49 U.S.C. 13906(a)(3). As a general proposition, casualty 
insurance coverage contemplates personal injury losses, a subject that 
is not related to this proceeding. In any event, carriers are also 
required by statute to maintain liability insurance in amounts 
prescribed by the Secretary covering bodily injury, etc. See 49 U.S.C. 
13906(a)(1).
Response to Comments
    FMCSA agrees with AMSA. The AGCT's recommendation appears to 
contemplate requiring personal injury loss coverage in these 
regulations. This is not within the scope of this rulemaking and is 
already required by statute and regulation.

Section 375.303 If I Sell Liability Insurance Coverage, What Must I Do?

    The 25AG recommend requiring clear and conspicuous disclosure to 
consumers of all limitations on liability coverage and any inventory 
requirements needed for valuation of their shipments, as well as 
requiring disclosure, at the time of delivery, of whether any agents 
were used during the move and whether the consumer's goods were stored 
during the shipment. They further recommend that upon the consumer's 
request, carriers should provide numerous pieces of information. Such 
information would include the agents or subcontractors used during the 
move, liability coverage for that move, identification of all storage 
facilities used, and liability coverage attendant to that storage. They 
also suggest development of regulations that will sharply limit the use 
of disreputable tactics by some carriers to avoid legitimate liability 
coverage obligations.
    The AGCT suggested the regulations require carriers to procure 
insurance on behalf of the shipper. If a carrier sells or offers to 
sell liability insurance to the shipper, the carrier must comply with 
any applicable licensing requirements of a State insurance regulatory 
body. If the carrier sells or procures insurance on behalf of the 
consumer, the consumer must be the named insured on the policy and the 
carrier must provide the consumer with a copy of the policy and a 
certificate of insurance indicating the period of coverage.
    AMSA comments that the language proposed in Sec.  375.303(a)(1) and 
(2) is unclear in establishing the conditions under which carriers may 
sell or procure insurance coverage for cargo loss or damage. As 
written, paragraph (a) provides that insurance may be procured only 
under the two conditions set out in paragraphs (a)(1) and (2). However, 
those paragraphs are not connected with the conjunctive ``and'' or the 
disjunctive ``or.'' Moreover, AMSA believes the language in paragraph 
(a)(2) is confusing. It describes a situation where the shipper fails 
to declare a valuation of $1.25 per pound and pays or agrees to pay the 
carrier for assuming liability equal to ``the declared value.'' This 
condition is at odds with itself.
    AMSA points out that under the outstanding Surface Transportation 
Board released rates order (RRO), the failure to declare a lump sum 
value or valuation of $1.25 per pound will result in the shipment being 
deemed to have been released to a declared lump sum value of $1.25 per 
pound times the weight of the shipment. See 9 I.C.C. 2d 523.
    In any event, AMSA believes paragraph (a)(2) can be eliminated as 
unnecessary. Historically, carriers were authorized to sell or procure 
excess insurance only when the shipment was released to a value not 
exceeding 60 cents per pound. Although current Sec.  375.11(a) contains 
the additional condition that ``the shipper does not declare a 
valuation of $1.25 or more,'' it is clear that the latter condition is 
superfluous. Although stated as two conditions, they are actually the 
same. If a shipper releases a shipment at 60 cents per pound, he could 
not declare a valuation at $1.25 per pound or more. Conversely, if he 
declares a valuation at $1.25 or more, he could not release the 
shipment at 60 cents per pound. This mutual exclusivity is made clear 
in the RRO giving rise to this language. See RRO No. MC-505, Released 
Rates of Motor Common Carriers of Household Goods, June 7, 1966, and 
Released Rates Decision No. MC-999, 9 ICC. 2d 523 (1993). AMSA 
therefore recommends that paragraph (a)(2) be deleted.

[[Page 35073]]

    AMSA further argues that paragraphs (b) and (c) are duplicative to 
some extent. Current Sec.  375.11(a) is limited to insurance for loss 
and damage just as appears in proposed paragraph (c). It therefore 
recommends that paragraph (b) be deleted, paragraph (c) be redesignated 
as (b), and the remaining paragraphs be redesignated accordingly.
    With respect to the 25AG recommendation that more explicit language 
should be employed to preclude carrier avoidance of payment of loss or 
damage claims, AMSA believes that proposed Sec.  375.303 is not 
intended to deal with this issue. Carriers, it asserts, are required to 
process claims for loss or damage in accordance with the regulations 
contained in 49 CFR part 370. If, as the 25AG argue, they encounter 
situations in which they believe carriers have violated part 370, a 
complaint can be made to FMCSA.
    AMSA believes that the AGCT recommendation that carriers be 
required to procure insurance on behalf of shippers and, if 
appropriate, comply with any applicable State licensing requirements, 
confuses the carrier's role in procuring insurance. Carriers do not 
sell insurance, but may procure insurance on behalf of a shipper from 
an insurance entity that is authorized to issue a policy under 
applicable State law.
Response to Comments
    In response to the 25AG, we believe that the carrier, its 
employees, and agents are essentially one and the same, in that the 
carrier is responsible for the acts of both the employees and agents. 
Therefore, the authorized carrier named in the bill of lading would be 
primarily responsible for any activity involving the move, including 
the selling of insurance and providing the shipper with a policy from 
the insurance carrier. If the authorized carrier used an owner-operator 
under lease agreement, the carrier would be fully liable for the move.
    The Surface Transportation Board's revised RRO states that unless 
the shipper expressly releases the shipment to a value not exceeding 60 
cents per pound per article, the carrier's maximum liability for loss 
and damage shall be either the lump sum value declared by the shipper 
or an amount equal to $4.00 times the actual weight of the shipment, 
whichever is greater. Additionally, the shipper may purchase additional 
liability insurance coverage from the carrier. The revised RRO provides 
that the $4.00 rate may be increased annually by the carrier based on 
the Department of Commerce's Cost of Living Adjustment.
    As we noted in our response to Sec.  375.201, we have added 
regulatory text to Sec.  375.201 concerning the full liability to which 
the carrier may be subject if it fails to issue a copy of the insurance 
policy or other appropriate evidence of insurance. Also, we have 
adopted AMSA's recommendation to delete proposed paragraphs (a)(2) and 
(b) in Sec.  375.303.

Section 375.401 Must I Estimate Charges?

    NACAA supports estimates being given in writing. The AGCT suggests 
changing ``binding estimate'' everywhere in the proposed regulations to 
``guaranteed delivery price.'' It believes that the term ``estimate'' 
implies approximation rather than a fixed price. It further suggests 
changing paragraph (b) to reflect the fact that the final charges will 
be based on the actual weight ``or volume'' because this is consistent 
with estimates to be given based on weight or volume.
    Starving Students has a deep concern about requiring written 
estimates. It states that a written estimate requires a personal visit 
to the shipper's residence, which is costly. It estimates that 
requiring a prior written estimate would add $250 or more to the cost 
of the move and believes adding such costs would discourage many 
shippers from hiring a mover for small moves.
    Starving Students also believes that there is not enough advance 
time to perform a visual inspection for a written estimate. Shippers 
often schedule moves with very short notice, which does not permit a 
prior visual inspection to be performed. The majority of Starving 
Students' bookings are booked within seven days of the scheduled move.
    Starving Students also notes that numerous moves occur from 
locations where movers do not have a local office in the vicinity. A 
prior visual inspection will be impossible in these cases. The consumer 
would have to select a mover not based on price or service, but on the 
proximity of a field estimator. Small movers offer low cost, no frills 
alternatives to the large van lines. It argues that excluding small 
movers, like Starving Students, from interstate moves based on a lack 
of a national network of estimators is an unfair restraint of trade. In 
summary, Starving Students believes that shippers and carriers want the 
same thing, i.e., for the consumer to pay, and the carrier to receive, 
a reasonable price for the transportation of household goods across 
state lines.
    AMSA believes this section provides that individual shippers must 
be given a written estimate before an order for service is executed and 
commends FMCSA for including these provisions in the proposed 
regulations. Providing as many written estimates as possible will 
certainly serve to reduce shipper complaints and misunderstandings over 
final charges. However, AMSA believes there are certain aspects of this 
requirement that should be considered further.
    AMSA believes that most moves are booked at least two weeks in 
advance with the majority booked a month or more in advance. However, 
situations arise when moves are booked on much less than two weeks' 
notice or sudden last-minute changes make the preparation of a written 
estimate in advance of the move impossible. Situations brought about by 
unusual circumstances such as unexpected employment changes, domestic 
disputes, evictions, foreclosures, or emergency evacuations do not 
always permit much in the way of advance notice. AMSA believes that 
requiring a written estimate, which is, in turn, subject to the 110 
percent rule, will cause some movers to refuse short notice shipments 
to avoid being held to the 110 percent payment provision because there 
is no opportunity to perform a visual inspection. Shippers will then be 
left with fewer options to accommodate their requirements, e.g., move 
on their own or use unlicensed movers who ignore FMCSA regulations.
    AMSA recommends that an alternative procedure be adopted for short 
notice shipments. Shippers would be given the opportunity to waive the 
requirement for a written estimate (or to waive the 110 percent rule) 
in short notice situations. The shipper will nonetheless receive 
service from a licensed professional mover subject to all of the other 
protections provided by the proposed regulations, it believes. It 
suggests that paragraph (a)(2) should be amended by revising paragraph 
(a) and adding a new paragraph (e), as follows:

    (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, except as provided in paragraph (e) below. 
The written estimate must be in one of the following two types:
* * * * *
    (e) Waiver--Signatures Required. Subject to the shipper's 
agreement to waive the requirement for a written binding or non-
binding estimate, pursuant to the provisions of Sec.  375.407, you 
may provide a price quotation which shall be your reasonably 
accurate estimate of the approximate costs the individual shipper 
can expect to pay. The

[[Page 35074]]

shipper's agreement to waive the written estimate requirement must 
also include collection or credit arrangements acceptable to the 
shipper for payment of the total charges. The waiver agreement must 
be in writing and signed by the shipper before the shipment is 
loaded, and a copy must be retained as an addendum to the bill of 
lading.

    AMSA believes for situations other than short-notice shipments, the 
provisions of Sec.  375.407 that have been designed to deal with 
``hostage shipments'' are a welcome addition to the proposed 
regulations. AMSA routinely receives complaints from desperate shippers 
whose shipments are being held by unscrupulous movers to be exchanged 
for the payment of charges in excess of the 110 percent maximum. If the 
government enforces these provisions, AMSA asserts, many complaints of 
this nature will be eliminated.
    In response to AGCT's suggestion that the term ``guaranteed 
delivery price'' be used in this section and throughout in lieu of 
``binding estimate,'' AMSA notes the term ``binding estimate'' is 
rooted in the underlying statute, 49 U.S.C. 13704(a)(1).
Response to Comments
    We did not require that a personal visit had to be made to execute 
the written estimate when we proposed the section regarding written 
estimates. We believe a written estimate could be executed after any 
telephone interview with a prospective shipper. Whatever the estimator 
estimates the total to be and communicates it to the shipper, the 
estimator would follow it up in writing.
    We believe that the requirement to provide a written non-binding 
estimate, subject to the 110 percent rule, would cause some movers to 
make more accurate estimates for short notice shipments. This is 
because the incentive to add charges for additional services should be 
less when a carrier would not have to be paid for at least 30 days 
after delivery, and when the additional charges could be disputed by 
the shipper. This should provide shippers with a more accurate estimate 
to compare to other movers. Shippers would then be in a better position 
to compare and pay a more realistic amount than what some movers have 
allowed their agents to estimate.
    In the interim final rule, we have added a requirement that the 
mover provide each shipper with an explanation in writing of the 
formula used when an estimate is given in terms of volume and then 
converted to weight. We have added a requirement that the mover specify 
the final charges will be based on actual weight and services, subject 
to the 110 percent rule at delivery.
    We have also added a requirement that the mover must determine 
charges for any accessorial services such as elevators, long carries, 
etc., before preparing the order for service and the bill of lading. If 
the mover fails to ask the shipper about such charges and fails to 
determine such charges before preparing the order for service and the 
bill of lading, the mover must deliver the goods and bill the shipper 
after 30 days for the additional charges.
    In addition the interim final rule contains a new paragraph (b) 
specifying that, at the time the estimate is presented, the mover must 
specify the form of payment that it will accept at delivery.
    To clarify the role of household goods brokers in the estimating 
process, FMCSA has added a new Sec.  375.409, discussed below.

Section 375.403 How Must I Provide a Binding Estimate?

    The AGCT suggests requiring all carriers include a binding estimate 
provision in their tariffs and to provide a binding estimate if 
requested by the consumer. It suggests the rules should not allow 
carriers to unilaterally refuse to honor the binding estimate and 
carriers should be required to provide the service as originally agreed 
on. It recommends that carriers be permitted to negotiate with the 
consumer for any additional services requested at the time of pickup, 
either as a binding or non-binding estimate, and that the rules should 
affirmatively require carriers to inquire of site conditions at the 
destination or other matters which may result in the imposition of 
additional charges at the delivery point. If the carrier fails to ask 
whether there are any long flights of stairs, AGCT states, the carrier 
should ``not be permitted to charge for any additional services at the 
destination which may have reasonably been anticipated and not listed 
as an additional charge in its estimate. This is reasonable, since the 
carrier has experience in this area, and knows such services often 
require additional charges.''
    The AGCT believes carriers should be required to relinquish 
possession and bill the consumer for such additional services rather 
than demand immediate payment at the time of delivery.
    AMSA comments about paragraph (a)(5), which provides three options 
for the carrier if the shipper tenders additional household goods or 
requests additional services that were not included in the original 
binding estimate. While the first three options will cover most 
situations, AMSA writes, other circumstances may result in a failure 
between the mover and the shipper to agree to a price for the 
additional services. Therefore, AMSA believes it is appropriate to 
include a fourth option to address this situation as follows:

    (iv) If an agreement cannot be reached as to the price and/or 
service requirements for the additional goods or services, you are 
not required to service the shipment.

    Paragraph (a)(7) provides that the carrier may require full payment 
for additional services requested by the shipper or required to be 
performed at destination (such as stair carry, long carry, storage, 
etc.). AMSA notes that during a typical moving scenario, the shipper 
may also request additional services while a shipment is en-route, such 
as a diversion with an extra pick-up or delivery to a friend or 
relative at an intermediate point. AMSA believes that the proposed 
language should be clarified to accommodate such requests as follows:

    (7) If the individual shipper adds or requires additional 
services en-route or at destination to complete the transportation, 
and the services fail to appear on your estimate, you may require 
full payment at the time of delivery for such added services.

    AMSA states that AGCT's proposal that carriers be required to 
include a binding estimate provision in their tariffs conflicts with 
the permissive authority conferred by 49 U.S.C. 13704(a) (1) and 
14104(b)(l), which provide that carriers ``may'' provide binding 
estimates of charges.
    AMSA believes that the AGCT's suggestions reflect a failure to 
understand the operational conditions carriers often confront in order 
to properly service shipments. During a typical move, additional 
services may be required to complete the move or the shipper may 
request additional services while the shipment is en-route or before 
delivery. Since the transportation of household goods is a labor 
intensive process, the failure of the shipper to properly inform the 
carrier of the precise requirements necessary to properly remove the 
contents of a residence, secure them in an over-the-road vehicle and 
effect delivery at the new residence, can result in additional services 
which, in turn, require the assessment of additional charges.
    AMSA asserts that owner-operators perform the majority of the labor 
services that are required to load, transport, and unload household 
goods shipments. These individuals cannot, nor should they be expected 
to, perform their services without compensation or

[[Page 35075]]

for compensation that is less than is necessary to attract their 
services. AMSA believes that it should be apparent that the fact that 
the costs and related charges incurred to perform a move may not agree 
with an estimate of charges is not the exclusive result of carrier 
misfeasance or deception as certain arguments suggest.
    For example, AMSA notes, NACAA proposes that, by paying an 
additional 10 percent, the shipper is not admitting the legitimacy of 
the expense or waiving any rights to bring a private action under State 
or local law. NACAA also proposes that the regulations state that it is 
an unfair, misleading or deceptive act or practice for a mover to fail 
to deliver the goods after an offer to pay 110 percent is made.
    In response to the AGCT's recommendation that consumers be allowed 
to reduce the amount they must pay for a carrier to relinquish a COD 
shipment to ``substantially'' less than 100 percent of the estimate, 
and that they be allowed to offset any damages from the balance of any 
remaining charges owed to the carrier, AMSA states that certain AMSA 
testimony in 1998 before the U.S. House of Representatives Subcommittee 
on Surface Transportation of the Committee on Transportation and 
Infrastructure warrants repeating:

    The overwhelming majority of all movers are reputable, regulated 
businesses. They perform an essential public service by complying 
with the consumer and other regulations that govern our business and 
were put in place by the former ICC. * * *
    In its evaluation of this situation, and in its consideration of 
possible legislative solutions, we urge Congress not to lose sight 
of the fact that the moving industry performs 1.3 million interstate 
moves each year, the vast majority of which are accomplished without 
incidence and to the customer's satisfaction. It is the exceptional, 
out of the norm ``horror story'' that attracts media attention and 
portrays the industry in a bad light. No attention is paid to the 
hundreds of thousands of incident-free moves that take place each 
year. [footnote omitted] This is somewhat understandable since the 
media concentrates on the exception rather than the rule in its 
attempt to alert the public to what it perceives to be potential 
problems. My industry understands that motivation. In fact, we also 
firmly believe the public should be encouraged to make certain they 
are selecting a licensed, reputable mover when they require moving 
services. My point is, given the existing, somewhat negative climate 
the moving industry is dealing with, Congress should not react in a 
manner that will unduly burden the industry by imposing regulatory 
obstacles that translate into less efficient, more costly service to 
the public. (Testimony of Joseph M, Harrison, President, AMSA, 
delivered August 5, 1998.)

    Attached to Mr. Harrison's testimony were copies of a small 
sampling of congratulatory letters AMSA members received from customers 
expressing their satisfaction with the carrier's service. AMSA noted 
those letters reflect the high level of service all reputable movers 
strive to achieve. AMSA also noted no publicity was paid to the 
customer's laudatory comments.
    AMSA comments that in the context of estimates of charges versus 
actual lawful charges, changes in service requirements usually occur 
either because the shipper requested the changes or because the mover 
determined they were necessary to properly service a shipment. AMSA 
argues that one needs merely to review carrier tariffs to understand 
the many services carriers must perform that may result in changes in 
estimates of charges. These include vehicle detention, distance and 
stair carries, impracticable operations, pickup or delivery on 
Saturdays, Sundays or Holidays, stop-offs, appliance service, shuttle 
service, and storage-in-transit. Available industry statistics obtained 
from the AMSA Continuing Traffic Study for COD shipments transported in 
1995 indicate the following:
    11.7 percent of COD shipments required either an extra pick-up, an 
extra delivery, or both;
    14.2 percent required long carry service or elevator service;
    14.0 percent required stair carries; and
    2.8 percent required shuttle service to complete pickup or delivery 
at inaccessible locations or waiting time to accommodate shippers' 
schedules when accomplishing delivery.
    In the aggregate, 56.8 percent of the COD shipments required these 
or other additional services either at the shippers' specific request 
or because such service was required to accomplish delivery.
    AMSA also believes it is appropriate to consider the former ICC's 
analysis of the difficulties associated with estimating. In concluding 
that 10 percent above estimated charges is the appropriate margin for 
collection by carriers at delivery, the Commission stated:

    In doing so, we recognize that carriers should be permitted some 
leeway in estimating charges. Calculating approximately the weights 
of various items of household goods, arriving at an opinion of the 
total weight of a shipment, and working out the probable costs of 
accessorial services at origin and destination, all coupled with the 
element of human error, should not be the bases for establishing the 
amount beyond which the carrier should be required to extend credit 
to the shipper. We therefore conclude that a 10 percent margin 
should be allowed to the carrier in arriving at its reasoned 
judgment of total charges, and that such a variation will not be an 
unreasonable burden to the shipper. Practices of Motor Common 
Carriers of Household Goods, 111 M.C.C. 427, 468 (1970). See also 
Practices of Motor Common Carriers of Household Goods, 132 M.C.C. 
599, 609 (1981).
Response to Comments
    FMCSA agrees with the AGCT that, at the time of pickup, movers 
should inquire of site conditions at the destination or other 
circumstances which may result in the imposition of additional charges 
at the delivery point. If the mover fails to ask whether there are any 
long flights of stairs, for example, the mover would relinquish 
possession and bill the shipper for such additional services rather 
than demand immediate payment at the time of delivery. We have added 
appropriate language to the interim final rule to incorporate these 
comments.
    In addition, FMCSA requires in Sec.  375.403(a)(8) in the interim 
final rule that if a shipper asks for additional services after the 
goods are in-transit, the mover must inform the shipper additional 
money must be paid. If a mover believes additional services are 
necessary to properly service a shipment after goods are in-transit, 
the mover must inform the shipper what the additional services are 
before performing those services. The mover must allow the shipper at 
least one hour to determine whether he/she wants the additional 
services performed. If the shipper agrees to pay for the additional 
services, the mover must execute a written attachment to the bill of 
lading and have the shipper sign the written attachment. This could be 
accomplished through faxes between the parties.
    If the additional services are not acceptable by the shipper and 
the shipment is in transit, the carrier should deliver for the amount 
of the original estimate and bill for any remainder after 30 days.
    FMCSA believes it is the carrier's responsibility to ask and 
determine at origin if the conditions at the destination require 
additional services (i.e., shuttle, long carry, elevator, stairs, and 
other accessorial services) to effect delivery, and to advise the 
shipper of the cost of such additional services, as well as method of 
payment for the services at the time of delivery. If the shipper 
refuses to pay for additional services at origin and before loading, 
the carrier has the option to accept or deny the shipment. See Sec.  
375.403(a)(5) in the interim final rule. If the shipper refuses to pay 
for additional services at the

[[Page 35076]]

destination when the carrier arrives for delivery, then the carrier can 
attempt to negotiate different payment terms for the cost of additional 
services; however, the carrier must deliver the shipment.
    We disagree with AMSA that when the individual shipper adds or 
requires additional services en-route or at destination to complete the 
transportation, and the services failed to appear on the mover's 
binding estimate, the mover may require full payment at the time of 
delivery for such added services. We believe the better approach is to 
allow the binding estimate to be paid on delivery and the additional 
charges be billed at least 30 days after delivery. By requiring the 
mover to determine the appropriate accessorial charges before loading 
the shipment and permitting the carrier to refuse servicing the 
shipment before loading, the problem of inaccurate estimates because of 
surprise charges and services at destination will be minimized. If new 
charges or services do occur, we will require the individual shipper to 
pay them, but only after a period when the individual shipper has had 
the opportunity to establish his or her financial relationships in the 
new community. Requiring an individual shipper to raise hundreds, if 
not thousands, of dollars at the destination in a very short time can 
cause a severe hardship.

Section 375.405 How Must I Provide a Non-Binding Estimate?

    NACAA supports movers retaining shipping records, including written 
cost estimates, for a period of one year. The Consumers Union believes 
the rules should require that carriers give consumers a maximum price 
with a non-binding estimate. The Union suggests allowing a carrier to 
self-determine how it provides the maximum price, whether through a 
simplified tariff schedule handed to the consumer, or by calculating a 
maximum price above the estimate. It asserts that information about a 
maximum price enhances the consumer's ability to compare carriers.
    AMSA believes consistency requires expanding proposed paragraph (b) 
to address the circumstances presented when changes occur in the 
services required to transport a shipment that moves on a non-binding 
estimate just as is provided by Sec.  375.403(a)(5), (6), and (7) for 
binding estimate shipments. AMSA recommends adding the following 
similarly worded paragraphs to paragraph (b):

    (7) If it appears, before loading, that an individual shipper 
has tendered additional household goods or requires additional 
services not identified in the non-binding estimate, you are not 
required to honor that estimate. However, before loading the 
shipment, you must do one of the following three things:
    (i) Reaffirm your initial non-binding estimate;
    (ii) Negotiate a revised written non-binding estimate listing 
the additional household goods or services;
    (iii) If an agreement cannot be reached as to price and/or 
service requirements for the additional goods or services, you are 
not required to service the shipment.
    (8) Once you load a shipment, failure to execute a new non-
binding estimate signifies you have reaffirmed the original non-
binding estimate. You may not collect at delivery more than 110 
percent of the amount of the original non-binding estimate, plus the 
full payment for additional services that were performed en-route or 
at destination that do not appear on your non-binding estimate.

    AMSA believes the same additions should be made to the Your Rights 
and Responsibilities When You Move publication, under the explanation 
of Non-Binding Estimates.
    AMSA also believes the words ``best estimate'' contained in 
paragraph (b) should be changed to ``reasonably accurate estimate'' 
because estimates are just that and accuracy is the goal, not best or 
worst or some other misnomer.
    AMSA believes that the proposed requirement that movers retain 
records of all non-binding estimates of charges for at least one year 
from the date the estimate was prepared will be unnecessarily 
burdensome. As part of the normal course of arranging for a move, 
shippers are encouraged to obtain multiple estimates before their move. 
As a result, most movers perform many more estimates than moves. AMSA 
believes that the intent of paragraph (c) is to ensure that estimates 
are preserved only for the moves that are actually performed. Thus, 
AMSA suggests deleting paragraph (c) and adding the 1-year retention 
requirement paragraph (b)(4), as follows:

    (4) You must retain a copy of the non-binding estimate for each 
move you perform for at least one year from the date you made the 
estimate as an addendum to the bill of lading.

    AMSA also recommends that Sec.  375.403(c) and Sec.  375.407(d) 
should be amended to incorporate these recommended changes.
    AMSA comments that the Consumers Union proposal to require carriers 
to give consumers a maximum price with a non-binding estimate has been 
addressed by Congress in 49 U.S.C. 14104(b), which does not mandate 
binding estimates. According to AMSA, a requirement that carriers 
furnish maximum prices would be tantamount to a mandated binding 
estimate and inconsistent with the statute.
Response to Comments
    FMCSA believes that whether a mover provides an estimate via 
telephone or a personal visit, the estimate must be in writing. The 
carrier should provide an estimate that is reasonably accurate and 
include all services to be provided. The estimate should also be based 
on the carrier's applicable tariff. This would not be a new burden, as 
the carriers are already required to do this. The estimate must clearly 
note the shipper is only required to pay 110 percent of the non-binding 
estimate at time of delivery. We have added the following provisions to 
the interim final rule to clarify how to handle changes to non-binding 
estimates: Any changes in a non-binding estimate must be mutually 
agreed to in a written attachment to the bill of lading. If a shipper 
asks for additional services after the goods are in-transit, the mover 
must inform the shipper additional money must be paid. If a mover 
determines additional services are necessary to properly service a 
shipment after the goods are in-transit, the mover must inform the 
shipper what the additional services are. The mover must allow the 
shipper at least one hour to determine whether he/she wants the 
additional services performed. If the shipper agrees to pay for the 
additional services, the mover must execute a written attachment to the 
bill of lading and have the shipper sign the written attachment.
    FMCSA agrees with AMSA that a requirement that carriers furnish 
maximum prices would be tantamount to a mandatory binding estimate. 
FMCSA also agrees with AMSA that paragraphs (a)(7) and (8) of Sec.  
375.405 should parallel Sec.  375.403(a)(5)-(7) and has changed the 
interim final rule language accordingly.
    FMCSA also agrees with AMSA's comment on paragraph (b) and has 
changed ``best estimate'' to ``reasonably accurate estimate.''
    FMCSA also agrees that requiring the retention of all estimates for 
one year would be burdensome, and has changed Sec. Sec.  375.403(c), 
375.405(d), and 375.407(d) so that a mover need only retain for one 
year copies of estimates for moves actually performed.

Section 375.407 Under What Circumstances Must I Relinquish Possession 
of a Collect-on-Delivery Shipment Transported Under a Non-Binding 
Estimate?

    NACAA supports the requirement that all goods be released upon 
payment of no more than 110 percent of the

[[Page 35077]]

estimated charge. It also suggests that language should be added 
clarifying that the consumer, in accepting delivery, is not waiving any 
rights to proceed against the mover in a private action to recover 
transportation charges, or waiving State or local enforcement. It 
argues that the rules should provide that it is unfair, misleading and 
a deceptive act or practice to fail to deliver household goods when a 
mover is offered 110 percent of the written estimate.
    The AGCT recommends the rules substantially reduce the amount of 
money that the consumer must pay to the carrier in order for the 
carrier to relinquish possession of the shipment. The AGCT strongly 
supports the deferred payment provision of paragraph (c) and believes 
the consumer should be permitted to offset any damages from the balance 
of any remaining charges owed to the carrier.
    AMSA recommends that to avoid potential misunderstandings, the 
wording of paragraph (a) should be changed to comport with the language 
contained in current Sec.  375.3(d), as follows:

    (a) If an individual shipper pays you at least 110 percent of 
the estimated charges on a collect-on-delivery shipment on which a 
non-binding estimate of the approximate costs was furnished, plus 
the costs for additional services that were performed en-route or at 
destination which were necessary to complete the transportation, you 
must relinquish possession of the shipment at the time of delivery. 
You may specify the form of payment acceptable to you.

    Paragraph (c) includes an explanation of how carriers must handle 
the collection of balances due in excess of the 110 percent amount paid 
on shipments that moved under non-binding estimates. Although it 
believes that the example provided in the NPRM is clear, AMSA would 
like language added to avoid any misunderstandings concerning the 
assessment of authorized service charges on delinquent payments as 
would be authorized by proposed Sec.  375.807. AMSA recommends adding 
the following sentence at the conclusion of paragraph (c) of Sec.  
375.407:

    If the $400 is not paid within the 30-day period following 
issuance of your freight or expense bill, you must assess a service 
charge of one percent of the freight bill, subject to a $20 minimum 
charge for each subsequent 30-day period or fraction thereof.

    AMSA also believes it is necessary to consider the language 
contained in proposed Sec.  375.801(b) What types of charges apply to 
subpart H?, and the discussion in Subpart H of the Your Rights and 
Responsibilities publication as they deal with the extension of credit 
to COD shippers.
    AMSA believes the existing credit regulations make it clear that 
they do not apply to COD non-binding estimate shipments that move under 
the 110 percent rule. It refers to 49 CFR 377.215(a), and its reference 
to 49 CFR 375.3(d). This language was lifted in its entirety from the 
former ICC credit regulations, 49 CFR 1320.8(a), which contained the 
same inapplicability reference, i.e., 49 CFR 1056.3(d). Under both 
versions of these regulations, COD shippers must pay not less than 110 
percent of the estimated charges on a non-binding estimate shipment at 
the time of delivery. If a balance remains beyond the 110 percent 
amount paid, the carrier may request payment of that amount not sooner 
than 30 days after the date of delivery. There are no other credit 
arrangements available for the COD customer. The extension of credit 
regulations contained in 49 CFR 377.215 and 49 CFR 1320.8 apply to 
shippers, other than COD shippers, to whom carriers extend credit. For 
example, a national account shipper may arrange for the transportation 
of its employees' goods under a carrier's tariff rather than under a 
contract. Because of the repetitive nature of that shipper's business, 
the carrier may elect to extend credit to the shipper for the payment 
of transportation charges, in which case the provisions of Sec.  
377.215 would apply.
    AMSA believes that in the drafting of proposed Sec.  375.801 and 
the narrative contained in Subpart H of Your Rights and 
Responsibilities, we incorrectly assumed that the existing credit 
regulations apply to COD shippers whose goods move under the 110 
percent rule. AMSA believes the language and instructions in proposed 
Sec.  375.801 are bound to create confusion among individual shippers 
who may assume that their mover will defer its request for payment and 
extend credit 30 days or more beyond the date of delivery. AMSA 
recommends rewriting Sec.  375.801 and subpart H to avoid 
misunderstandings between individual shippers and movers. It believes 
the regulations and shipper guidance must make it perfectly clear 
carriers will expect payment of not more than 110 percent of the 
estimated charges on a COD non-binding estimate shipment at the time of 
delivery. It also believes the mover rule and shipper guidance must 
make it perfectly clear the shipper will be billed for any balance due 
not sooner than 30 days after delivery.
Response to Comments
    We do not agree with the AGCT proposal to reduce the amount of 
payment required at delivery to substantially less than 110 percent of 
the estimated charges. We believe the 110 percent requirement strikes a 
fair balance between the carrier's right to receive prompt payment for 
its services and the shipper's right to pay an amount reasonably close 
to the estimated charges at the time of delivery. Allowing shippers to 
offset damages from any remaining charges owed the carrier would 
violate 49 U.S.C. 13702, which requires household goods carriers to 
charge and receive the rate specified in their tariffs. In response to 
NACAA, the right to take claims to court is established by law and does 
not need to be specifically mentioned in these regulations.
    FMCSA agrees with the AMSA comments. We have modified the section 
to state that the mover may expect payment of no more than 110 percent 
of the estimated charges on a COD non-binding estimate shipment at the 
time of delivery and that the shipper will be billed for any balance 
due not sooner than 30 days after delivery. We have also modified the 
last sentence in paragraph (a) to state the mover must accept the form 
of payment agreed upon at time of estimate, including credit card, and 
relinquish the shipment.

Section 375.409 May Household Goods Brokers Provide Estimates?

    We have added new Sec.  375.409 to eliminate confusion regarding 
the authority of household goods brokers to issue estimates of 
transportation charges. Twenty-five years ago, the Interstate Commerce 
Commission concluded that brokers were prohibited from providing 
estimates because the duty to comply with the household goods 
regulations rests with the carrier, and shippers aggrieved by an act or 
omission of a broker would be unprotected by the regulations. In Entry 
Control of Brokers, 126 M.C.C. 476, 520 (1977), the Commission stated:

    For example, if a broker provides a c.o.d. shipper with an 
estimate it has made, on which the shipper relies, the shipper would 
be deprived of the protection of 49 CFR 1056.8(b) of the household 
goods regulations, which provides that where the transportation 
charges exceed a carrier-made estimate by more than 10 percent, the 
shipper must pay only 110 percent of the charges upon delivery and 
is given a period of 15 days following delivery to make payment in 
full. Since this protection applies only to carrier-made estimates, 
a c.o.d. shipper who relies upon an incorrect estimate of a broker 
will have to pay the carrier's entire freight charges

[[Page 35078]]

upon delivery, regardless of the extent the actual charges might 
exceed the broker's estimate.

    In Exec-Van Systems, Inc., Broker Application, 128 M.C.C. 669, 678 
(1978), the ICC noted that a broker's proposal to make estimates 
``would appear to be inconsistent with our established regulations, 
since 49 CFR 1056.8(a) places the obligation for making estimates 
solely upon the carrier. Applicant would, therefore, be advised not to 
interfere with the carrier in the performance of his obligations in 
making estimates, as this responsibility is intended by our regulations 
to be performed solely by the carrier or his agent.''
    Along these same lines, the Commission, in Ward Moving & Storage 
Co., Inc., Household Goods Broker Application, 132 M.C.C. 589, 596 
(1981), stated that ``49 CFR 1045.7(b) * * * implicitly forbids the 
broker offering services or making contractual obligations which only a 
carrier may offer. It must be clear to the public that the broker is 
only an arranger of transportation, acting only in an advisory nature 
and offering services ancillary to the physical transportation.'' The 
rule cited in this quotation, now codified in 49 CFR 371.7(b), 
prohibits brokers from misrepresenting themselves, directly or 
indirectly, as carriers.
    Although brokers may not enter into agency agreements with 
household goods carriers because they are required to exercise 
discretion in allocating traffic among carriers, we believe it would be 
permissible for a carrier to enter into a more limited type of 
agreement authorizing the broker to provide estimates on behalf of the 
carrier. Under such an agreement, the carrier would have to adopt the 
broker's estimate as a carrier-issued estimate and incorporate it into 
the order for service and bill of lading for purposes of compliance 
with part 375, particularly the 110 percent rule. We believe that under 
these circumstances, the individual shipper would not be deprived of 
the protections provided in part 375 because the carrier would still be 
held accountable for complying with this part. However, a household 
goods broker may not issue an estimate without entering into such an 
agreement with a carrier because otherwise the requirements of part 375 
would not apply to the broker-issued estimate.

Section 375.501 Must I Write Up an Order for Service?

    NACAA supports requiring all prices, terms and services to be 
presented in written documents signed by the mover and delivered to the 
shipper before the household goods are packed and loaded; and that 
these documents must be retained for a period of one year. NACAA also 
urges us to prohibit movers from requiring shippers to sign blank or 
incomplete documents, such as estimates, orders for service, or bills 
of lading.
    The AGCT suggests the rules should allow a shipper to proceed 
against the mover if the mover fails to deliver the shipment in 
accordance with the time requirements in the contract. It believes that 
the shipper should not have to pay an additional fee to the mover to 
ensure pickup and delivery of the goods on the specific dates or within 
a specific period. The AGCT argues that we should grant the shipper a 
three-day grace period allowing the shipper to rescind the order for 
service without any penalty, provided the ordered services are 
scheduled more than three days after the order is written and that the 
mover should provide shippers with the items listed in Sec.  
375.503(b)(2), (4), (9), (10), and (11).
    The AGCT argues that paragraph (a)(5) should allow the shipper to 
deduct any penalties or per diem amount due to the shipper from any 
amounts that the shipper owes to the carrier. Alternatively, the mover 
should be required to make payment to the shipper at the time of 
delivery in the manner specified by the shipper to level the playing 
field and allow both parties to collect amounts due them at the same 
time. Paragraph (a)(6) should require the carrier to affirmatively note 
the shipper's denial of any special or accessorial services that might 
be reasonably expected.
    In response to the AGCT comments, AMSA argues that shippers do not 
ordinarily incur additional costs for delivery date commitments unless 
equipment availability is limited and a specific request requires 
special operations. With respect to the shipper remedies suggested by 
the AGCT, AMSA states that: (1) Shippers routinely cancel orders for 
service for a variety of personal reasons and incur no penalty for 
doing so; (2) as a general rule, the information listed in Sec.  
375.503(b)(2), (4), (9), (10), and (11) is routinely furnished when an 
order for service is executed; (3) any amount that may be due a shipper 
as a result of loss, damage or inconvenience must be presented and 
processed pursuant to the regulations at 49 CFR part 370, or the 
carrier's lawful tariffs; and (4) if an accessorial service is 
requested or required, presumably performance of that service is 
necessary to safely transport a shipment. AMSA questions the 
advisability of a rule that would permit shippers to refuse services 
that ``might be reasonably expected.''
Response to Comments
    Although carriers may routinely permit shippers to cancel orders 
for service without penalty and furnish references to several bill of 
lading provisions when an order for service is executed, the comments 
from the AGCT indicate that not all carriers adopt such practices. We 
believe that mandating a 3-day grace period and reference to the bill 
of lading provisions provides additional consumer protection (See new 
paragraphs (e) and (a)(6) through (a)(10) in the interim final rule).
    We adopt the AGCT's comment about paragraph (a)(6) (which is 
codified at (a)(11) in the final rule) and agree with AMSA that a 
required accessorial service may be necessary to safely transport a 
shipment if the mover could reasonably expect it. We require, in new 
paragraph (b) of the interim final rule, that if an accessorial service 
is necessary to safely transport a shipment, the mover must refuse to 
accept the shipment. As a safety agency, we will not allow the mover to 
provide unsafe transportation even when requested by an individual 
shipper.
    In response to comments by NACAA, in new paragraph (d) in the 
interim final rule we are prohibiting movers from requiring shippers to 
sign blank or incomplete estimates, orders for service, bills of 
lading, or any other blank or incomplete documents pertaining to the 
move.
Must I Write Up an Inventory?
    NACAA believes the rules should mandate shipment inventories that 
itemize every box and item consigned to protect shippers and movers for 
all weight-rated and hour-rated moves, unless the shipper signs a clear 
and conspicuous waiver of the inventory. NACAA recommends that an 
inventory form also be required.
    AMSA concurs in the NACAA recommendation stating that detailed 
inventories of the goods tendered for transportation serve to protect 
the interests of shippers and carriers. AMSA recommends inclusion of 
the following provision:

Proposed Sec.  375.502 Must I Write Up an Inventory?

    (a) You must prepare a written, itemized inventory for each 
shipment of household goods you transport for an individual shipper. 
The inventory must identify every carton and every uncartoned item 
that is included in the shipment. When you prepare the inventory, an 
identification number that corresponds to the inventory must be 
placed

[[Page 35079]]

on each article that is included in the shipment.
    (b) You must prepare the inventory before the shipment is loaded 
in the vehicle for transportation in a manner that provides the 
individual shipper with the opportunity to observe and verify the 
accuracy of the inventory if he or she so requests.
    (c) You must furnish a complete copy of the inventory to the 
individual shipper before beginning to load the shipment. A copy of 
the inventory, signed by both you and the shipper, must be provided 
to the shipper, together with a copy of the bill of lading, before 
you begin to load the shipment.
    (d) Upon delivery, you must provide the shipper with the 
opportunity to observe and verify that the same articles are being 
delivered and the condition of those articles. You must also provide 
the shipper the opportunity to note, in writing, any missing 
articles and the condition of any damaged or destroyed articles. In 
addition, you must also provide the shipper with a copy of all such 
notations.
    (e) You must retain inventory forms for at least one year from 
the date you created the form.

    AMSA noted its recommended addition would also entail a change in 
that portion of the Your Rights and Responsibilities publication which 
deals with this issue (Subpart E--Pick Up of My Shipment of Household 
Goods).
    AMSA therefore recommends adopting the following language in lieu 
of that proposed:

    Should my mover write up an inventory of the shipment?
    Yes. Your mover should prepare an inventory of your shipment 
before loading. The inventory should be a detailed listing of the 
cartons and uncartoned articles included in your shipment noting any 
damage or unusual wear to any articles. The purpose of the inventory 
is to make a list of the articles included in your shipment and a 
record of the condition of each article.
    After completing the inventory both you and the driver should 
sign each page. Before you sign it, make sure that the inventory 
lists every item in the shipment and that the entries regarding the 
condition of each article are accurate. You have the right to note 
any disagreement in the form. When your mover delivers your 
shipment, your ability to prove that any articles were lost or 
damaged may depend on the accuracy of the inventory. Your mover 
should give you a copy of the inventory. Be sure to keep your copy 
in a safe place; it is an important part of your shipment records. 
Your mover will keep the original. If your mover's driver completed 
the inventory, the mover will attach the complete inventory to the 
bill of lading as an addendum.
Response to Comments
    FMCSA agrees with NACAA and AMSA. We have added the proposed 
requirements in Sec.  375.503 of the interim final rule and included 
that a mover must write an inventory of all items involved in a move, 
assigning each item an identification number. The mover must prepare an 
inventory before it allows its agents or drivers to load the shipment. 
The mover must provide a complete copy to the shipper before loading 
the shipment. Upon delivery, the mover must provide the shipper with an 
opportunity to verify the same articles are being delivered and the 
condition of those articles. The mover must provide the shipper the 
opportunity to note any missing articles and the condition of any 
damaged or destroyed articles. Finally, the mover must provide the 
shipper with a copy of all such notations.

Section 375.503 Must I Write Up a Bill of Lading?

    NACAA supports the requirement that all prices, terms, and services 
be presented in written documents signed by the mover and delivered to 
the shipper before the household goods are packed and loaded and that 
the allowable form of payment be specified in writing. NACAA supports 
requiring movers to retain shipping records, including bills of lading, 
for a period of one year.
    The 25AG recommend that the rules should require clear and 
conspicuous disclosure on all documents, including estimates and bills 
of lading, of what form of payment will be required upon delivery of 
household goods, if different from the form of payment received at the 
outset of the transaction. If a carrier accepts a credit card as only a 
guarantee, the 25AG assert, the carrier should disclose that the credit 
card is not the form of payment that will be accepted upon delivery and 
also must disclose the form acceptable at delivery.
Response to Comments
    FMCSA has modified this section (renumbered as Sec.  375.505 in the 
interim final rule) based on the comments. New paragraph (b)(4) 
requires movers to specify on the bill of lading the form of payment 
acceptable at delivery, which must be the same form of payment entered 
on the estimate and order for service. New paragraph (b)(14) specifies 
that the attachments to the bill of lading are an integral part of the 
bill of lading contract. Also, proposed paragraph (b)(4) has been 
deleted as unnecessary.

Section 375.505 Must I Determine the Weight of a Shipment?

    The 25AG strongly agree with the proposed opposition to the use of 
non-certified on-board trailer scales.
    Air-Weigh states that its scales convert truck and trailer air-
spring air pressure to accurate weight display. Its scale determines 
how much weight per pound of air pressure the suspension is supporting 
by comparing empty and loaded vehicle weights with air pressure 
required to support the weight. It states that once calibrated, the 
scale displays the on-the-ground weight of each axle group to within 
200 to 300 pounds of an accurate platform scale. Comparative 
statistical research is being conducted, which Air Weigh intends to 
forward to the FMCSA when it becomes available.
    The Cat Scale Company believes that on-board weighing is not in the 
best interest of the shipper when addressing the issue of shipper 
protection. It stated that ``the allowance of on-board weighing would 
eliminate the customer being given a certified, `legal for trade' 
weight of their goods as performed by a third party. The owner of the 
on-board scale would actually be the party transporting the goods and 
therefore have an interest in the weight of those goods.''
    Cat Scale states further that full length certified scales are 
governed by regulations established by the National Institute of 
Standards and Technology (NIST) under the U.S. Department of Commerce. 
Cat states these regulations are published in the Handbook 44 
publication. Most States have adopted Handbook 44 as the State's 
governing regulations or have regulations in force that are based, in 
large part, on Handbook 44. Cat asserts that each State very 
aggressively checks certified scales to insure their compliance with 
Handbook 44 and in turn seals the scale to show that the scale may be 
used to give a ``legal for trade'' weight.
    Cat also states that significant ongoing maintenance of a certified 
scale is necessary in order to keep it 100 percent accurate and able to 
meet Handbook 44 requirements. For example, Cat uses a 200,000 pound 
capacity scale, having 10,000 graduations of 20 pounds each found in 
Table 6 Handbook 44 Section 2.20, Scales, pages 2-23. In order for Cat 
to maintain proper calibration of that scale, when Cat applies 25,000 
pounds of test weights to the scale, the maximum deviation tolerance 
allowed by NIST would be three graduations or 60 pounds. When Cat 
initially placed into service the scale, the maximum allowable 
deviation was one half that or 30 pounds. It is Cat's understanding 
that the deviation of an on-board scale (using Air-Weigh's model 5600 
as an example) is 200-300 pounds per axle group. That equates to as 
much as 900 pounds of potential error per typical load. If the average 
household goods load weighs 6,023 pounds, Cat believes 900 pounds 
represents a significant percentage of

[[Page 35080]]

that total and could translate into significant unnecessary costs to 
the shipper.
    Cat re-calibrates its scale every 90 days or four times per year. 
Cat states that typically a State will check calibration and reseal the 
scale once per year. However, Cat's scale is subject to a random check 
by the State at any time.
    Important to the certified weighing process, Cat believes, is the 
necessity of the scale to be constructed on a level plane with a 10-
foot level approach at each end of the scale. If the scale is not 
absolutely level, the potential for error exists and is multiplied the 
more out of level the condition is. Cat asserts it is very difficult to 
achieve a level surface on many streets or driveways.
    Cat states the remote sensor processor on an on-board scale 
converts the pressure readings at the axle group's air spring to a 
number and updates the scale every 4.8 seconds. By contrast, on its 
scale unit, the scale indicator reads data from each load cell 16 times 
per second, or 76 times more often.
    In addition, Cat states Air Weigh's on-board scale systems are not 
approved by the National Type Evaluation Program of the NIST and are 
totally unregulated by any standards organization. Cat states it is 
concerned with shipper protection and customer satisfaction and 
guarantees its weights to be accurate. If a driver weighs legal on its 
scale and then receives an overweight citation, Cat states it will 
either reimburse the driver or trucking company for the amount of the 
fine, or it will appear in court with the driver as an expert witness. 
Cat also keeps copies of all of its scale tickets for seven years as 
required by law. This gives the shipper the opportunity to request a 
copy of the original ticket if he/she suspects fraud. In the case of 
its weights being used for billing purposes, Cat's guarantee still 
applies to make sure that drivers get paid for what they've hauled--no 
more, no less.
    Cat does not think it is in the best interest of the shipper for 
FMCSA to approve on-board scales for the moving and storage industry 
because of the potential for error and the lack of a governing body to 
check the accuracy of the scale system. These factors could equate to 
shippers incurring additional unnecessary expenses in connection with 
their household moves.
    Weighing Consultants, Inc., (WCI) believes that on-board weighing 
systems for trucks and trailers are available that meet the tolerance 
requirements for commercial application, which are 0.1 percent of the 
applied (net) load. WCI attached to its comments the National Type 
Evaluation Program of the NIST Certificate of Conformance 99-091 issued 
to NORAC Systems International for an on-board weighing system. WCI 
stated the request by Air-Weigh for FMCSA to accept Air-Weigh's 
technology was based on data accurate at best to 1.0 percent of applied 
load. WCI recommends rejecting it based on product already available 
that meets commercial requirements.
    A WCI representative made a household move and the net weight of 
the household goods was 9,540 pounds. WCI stated that this represented 
the contents of a four-bedroom house and was above the average net 
weight of a household move. On a certified platform scale the tolerance 
allowed on this 9,540 pounds would be plus or minus 20 pounds. (WCI 
refers to Table 6 Handbook 44 Class IIIL scale). The 200-300 pound 
weight differential stated by Air-Weigh is 10 to 15 times greater. WCI 
stated, ``If in fact the differential of the Air-Weigh system is 200-
300 pounds per axle group, the differential from a certified scale 
would be 20 to 30 times greater than the presently allowable tolerance. 
Handbook 44 also states the allowable tolerance for Class IIII scales, 
allowed for use by law enforcement only, at a maximum of 5 divisions 
which would be 100 pounds on an axle scale. The Air-Weigh product 
accuracy is stated as 2 to 3 times the generous Class IIII tolerance.''
    WCI believes FMCSA should continue the policy of requiring all 
weights to be determined on scales certified by a State's Weights and 
Measures Department. This policy, it believes, will continue to ensure 
equity in the marketplace and leave the statutory authority for weights 
and measures with the states. WCI asserts that the National Conference 
on Weights and Measures and NIST Office of Weights and Measures have 
always encouraged the development of new technology and evaluate many 
new weighing device types each year under the National Type Evaluation 
Program. WCI believes Air-Weigh should be encouraged to submit its 
product to the National Type Evaluation Program for evaluation as its 
competitor NORAC System International did.
    The Sisson Scale and Equipment Company, Inc., supports the current 
regulation requiring the use of certified scales for independent 
shippers by the moving and storage industry.
    The Deskin Scale Company, Inc. states that the regulatory guide for 
its industry has been Handbook 44 since 1949. The NIST has a statutory 
responsibility for ``cooperation with States in securing uniformity of 
weights and measures laws and methods of inspection,'' Deskins states.
    The only on-board weighing systems that Deskin was aware of that 
are actually accepted for commercial use are fork lift scales and 
lifting devices for trash haulers, which use load cells connected to 
the forks for measuring and do not in any way derive weight information 
from the pressure of hydraulics or air. Deskin stated its experience 
has been that ``those who do rely on hydraulics or air pressure do not 
repeat to any degree of accuracy which is demanded by H-44 and 
therefore in the interest of the shipper should not be considered for 
use.'' It is Deskin's opinion that the shipper's best interest will 
only be served by use of those devices that meet the requirements of 
Handbook 44.
    The Action Scale & Weighing Systems, Inc., states Toledo, Ohio is a 
``hub'' for truck traffic coming from the North, South, East, and West, 
including Michigan ``train trucks'' and grain vehicles from Canada. It 
is Action's opinion that ``on-board weighing would not be in the best 
interest of the public, as the fox would virtually be guarding the hen 
house. The only way to insure accurate weights is on a static scale 
operated by a third party.''
    The California, Colorado, Idaho, Michigan, New Hampshire, Oregon, 
and Pennsylvania Departments of Agriculture strongly support the use of 
certified scales for all aspects of commerce done by weight. They 
support the retention of the regulation requiring the moving and 
storage industry to use certified scales when conducting commerce where 
cost is determined by weight. The Pennsylvania Department of 
Agriculture believes the use of on-board non-certified scales will be 
an invitation for unscrupulous operators to defraud shippers, based on 
its experience discovering and prosecuting moving and storage companies 
for falsifying weighmaster certificates by ``bumping.'' ``Bumping'' is 
any method where additional charges to the customer are claimed by the 
moving and storage company by adding additional weight to the load or 
by adding weight to the scale and then weighing the load.
    The State of Idaho Department of Agriculture, Bureau of Weights & 
Measures, does not dictate what type of scales the moving and storage 
industry uses, as long as they are commercial type scales, and are 
therefore capable of being certified. It believes there are a myriad of 
devices made today that fall short of the requirements for commercial 
use, but are manufactured for estimation, internal accounting, sorting, 
or other non-commercial applications. The Idaho Department of

[[Page 35081]]

Agriculture states there is at least one on-board weighing system for 
semi-trailer use (Weigh-Tronix, model STS-50, 50,000 times 20 pounds) 
that has a certificate of compliance on the market today.
    The Idaho Department of Agriculture is concerned that non-
commercial type on-board weighing systems are being used. It is also 
concerned that manufacturers are using this rulemaking to try to 
circumvent the National Type Evaluation Program of the NIST 
requirements being met by other scale manufacturers. The Idaho 
Department of Agriculture encourages Air-Weigh and Hi-Tech Scale to 
work to get their products approved through the National Type 
Evaluation Program system.
    The Idaho Department of Agriculture notes that the National 
Conference on Weights and Measures along with NIST advisers have 
determined the requirements for commercial scales. The tolerances and 
performance requirements have been set to prevent either the buyer or 
seller from being damaged in transactions. These standards are 
recognized not only in every jurisdiction in this country but 
throughout the world. The Idaho Department of Agriculture urges FMCSA 
to ensure any rule change continues to require shipping and storage 
charges be determined on a commercial scale--whatever form that scale 
may be, a vehicle scale or on-board scale system.
    The Michigan Department of Agriculture would not object to the non-
commercial use of non-certified scales, provided they are clearly 
marked ``Not Legal For Trade'' and could thus be used for estimates 
only. Otherwise, the Michigan Department of Agriculture strongly 
supports maintaining the ``certified scale'' requirement for commercial 
sales.
    The Handbook 44 serves the California Department of Agriculture as 
a uniform model governing performance, use, and testing of commercial 
weighing and measuring devices. The California Department of 
Agriculture urges FMCSA to retain a policy of requiring weights upon 
which charges are based to be determined on scales that have been 
tested and sealed by State weights and measures officials applying the 
requirements of Handbook 44. Companies who wish to offer weighing and 
measuring devices for use in determining charges for goods or services, 
should ensure that they comply with the uniform standards contained in 
Handbook 44, and should continue to be required by FMCSA to submit such 
devices to testing and verification by weights and measures officials.
    The Oregon Department of Agriculture requires that: (1) Any 
weighing or measuring device must be licensed, tested and approved by 
the Oregon Department of Agriculture Measurement Standards Division 
when the device is used commercially for the measurement of vehicles; 
and (2) any commercial weighing or measuring instrument or device must 
be issued a Certificate of Conformance traceable to NIST.
    The New Hampshire Department of Agriculture believes that on-board 
scales are not in the best interest of shippers and competitors. The 
potential error of 200-300 pounds per axle group is unacceptable, as 
well as its ``incorrect'' status under Handbook 44.
    The Colorado Department of Agriculture does not have a problem with 
on-board weighing. It believes any rules that are adopted must take 
into account the individual State requirements for commercial measuring 
devices. All states currently have requirements for commercial 
measuring devices that are rooted in years of experience. These 
requirements manifest themselves as Handbook 44.
    The Colorado Department of Agriculture states that if FMCSA elects 
to allow the use of on-board weighing systems, it must (1) ensure that 
the system is as accurate as the certified scales that are currently 
used for shipping; and (2) ensure the on-board weighing system meets 
the same standards, with regard to specifications, as other commercial 
devices, i.e., that it meets the criteria of Handbook 44. The Colorado 
Department of Agriculture believes that meeting Handbook 44 
requirements will ensure that both the shipper and carrier are treated 
equally, and scale manufacturers can compete equitably.
    AMSA urges us to acknowledge the advantages of advances in 
technology that have become available throughout the moving industry 
for the weighing of shipments. It asserts that the use of on-board 
scales promotes shipper satisfaction by producing immediate, on-site 
shipment weights without the need to follow a tractor-trailer to an 
available scale. It proposed adding new Sec.  375.523, which it 
believes will protect shippers' rights by requiring that shippers 
observe the weighing procedure, and allow them to reject the results of 
the on-board weighing procedure and elect to have the shipment weighed 
on a traditional scale. The recommended provision would read as 
follows:

    If a trailer is so equipped, at the shipper's option, shipment 
weight may be determined with an on-board trailer scale if the 
shipper observes the weighing of the trailer both before and after 
the loading of the shipment. If the shipper accepts the final weight 
determination, you must obtain a signed statement to that effect and 
retain it as part of the shipment file. If the shipper rejects the 
on-board scale weight determination, the shipment must be weighed on 
a certified motor vehicle scale in accordance with the requirements 
of Sec.  375.509.
Response to Comments
    FMCSA opposes the use of non-certified on-board trailer scales. The 
comments show they are not in the best interest of shippers. On-board 
weighing has the potential for manipulation of actual weight. While we 
acknowledge there may be advantages to using new technology for the 
weighing of shipments, AMSA and its device manufacturer have not 
produced evidence that its system is compliant with Handbook 44.
    FMCSA believes the issue of on-board trailer scales should be 
discussed in a separate and specific rulemaking. We believe the moving 
industry must work with the NIST and the States before asking us to 
allow their use. The NIST is the government agency responsible for 
promoting uniformity in United States weights and measures laws, 
regulations, and standards. The NIST regulations achieve equity between 
buyers and sellers in the marketplace and enhance shipper confidence in 
the marketplace. FMCSA does not have this expertise and will defer to 
the NIST for its opinions in this matter. The NIST does not want FMCSA 
approving a device that may set non-uniform weight regulations and may 
achieve inequality between buyers and sellers in the marketplace and 
degrade shipper confidence in the marketplace.
    The moving industry may also want the NIST to research the issue as 
allowed by 15 CFR 200.101 Measurement research. The NIST provides basic 
research and development activities aimed at meeting broad general 
needs. The NIST may also undertake investigations or developments to 
meet specialized physical measurement problems of an industrial group 
using funds supplied by the requesting organization.
    AMSA has not indicated how it will safeguard shippers' rights other 
than requiring that shippers observe the on-board weighing procedure 
and permitting them to reject the results of this procedure. The 
comments by the weighing industry and State regulatory agencies suggest 
that AMSA's methods and device may provide false weights.

[[Page 35082]]

AMSA does not specify how often the device would be calibrated, who 
would ensure calibration accuracy, and what happens if the calibration 
was done in another State and the shipper wishes to contest the weight 
in another State.
    FMCSA has added a requirement in the interim final rule that the 
mover must provide a written explanation of volume to weight 
conversions, when the mover provides an estimate by volume and converts 
the volume to weight. Also, this section has been renumbered as Sec.  
375.507.

Section 375.507 What Is a Certified Scale?

    The regulatory text of proposed Sec.  375.507, which defined 
``certified scale,'' has been moved to Sec.  375.103, where it is more 
appropriate.

Section 375.509 How Must I Determine the Weight of a Shipment?

    The 25AG believe the proposed rule fails to provide the shipper 
disclosures necessary to assure that carriers do not double bill on so-
called split loads. They allege shippers are presented with recently 
issued official weight tickets from a nearby certified public scale at 
the time of delivery; however, the shipper is unaware that a partial 
load bound for another destination remains onboard, and that it formed 
a portion of the total load reflected on the ticket. They believe the 
rules should require that each shipper's shipment must be weighed 
separately.
    AMSA states that a requirement that each shipper's shipment be 
weighed separately would result in operating gridlock. To comply with 
such a rule, carriers would be required to unload one shipment that is 
on a van to accommodate a second shipment solely for weighing purposes. 
The impracticalities of coordinating such operations should be obvious.
Response to Comments
    FMCSA is not adopting the 25AG's proposal. FMCSA believes it is 
economically costly and time consuming to weigh each shipment 
separately as suggested by the 25AG. The rules as proposed are 
adequate. The weight must be determined by weighing the shipment at 
origin or back weighing the shipment. The shipper is further protected 
by the regulations that allow a shipper to witness the weighing and the 
right to request a re-weigh. Final transportation charges are based on 
actual weight in accordance with applicable tariff provisions.

Section 375.511 May I Use an Alternative Method for Shipments Weighing 
454 Kilograms or Less?

    AMSA states this section adopts the provisions of the current 
regulations, which provide that shipments weighing 1,000 pounds or less 
may be weighed on a certified platform or warehouse scale in lieu of a 
scale designed for weighing motor vehicles. AMSA understands the 
agency's concerns that an increase in the minimum shipment weight 
threshold might allow movers to charge a minimum rate at the higher 
weight threshold when the shipment actually weighs less and that 
defining a small shipment as one weighing 3,000 pounds or less could be 
perceived as giving our blessing to an increase in the minimum rate 
threshold in household goods carriers' tariffs. However, AMSA does not 
agree that these concerns will actually occur if the 1,000 pound small 
shipment weight is increased. AMSA argues that tariff charges, 
historically, have not been linked to the minimum weight determination 
threshold. For more than 40 years, AMSA states, the tariff minimum 
weight remained at 500 pounds (even though the minimum scale weight was 
1,000 pounds) as personal effects shipments continued to gradually 
increase in weight. As a result, in June 1984, the tariff minimum was 
increased to 1,000 pounds, not because the increase corresponded to the 
threshold, but because of increases in the fixed administrative costs 
associated with the servicing of small shipments.
    As a matter of practice, the moving industry already considers 
shipments weighing less than 3,000 pounds to be classified as small 
shipments and has adjusted its principal tariff series accordingly. A 
small shipment surcharge applicable to shipments weighing less that 
3,000 pounds was initiated in May 1989 to offset the administrative 
costs associated with handling these shipments. This surcharge remained 
in effect until May 1996 when it was incorporated into the line-haul 
tariff rates. Therefore, an increase in the minimum scale weight would 
not impact existing tariff provisions since they have already been 
adjusted to reflect the costs associated with the handling of small 
shipments.
    With this history in mind, and because the minimum scale weight and 
the minimum tariff rate have been unrelated to one another, AMSA does 
not agree that an increase in the minimum scale weight to 3,000 pounds 
will have a causal effect on tariff rates. Instead, AMSA believes that 
increasing the weight limit to 3,000 pounds would promote greater 
efficiency in the weighing of shipments on certified warehouse and 
platform scales which will, in turn, help reduce tractor-trailer 
traffic and congestion in areas where larger motor vehicle scales are 
operated.
    AMSA notes that the proposed and current regulations require that 
if shipment charges are weight-based, the carrier must obtain a gross 
and tare weight for each shipment. Separate weight tickets identifying 
each weighing of a shipment are required to be provided to the shipper. 
The certificates list the scale name, location, weighing date, 
identification of tare, gross or net weights, vehicle identifications, 
and the name of the shipper. Clearly, this is sufficient to ensure that 
carriers obtain accurate shipment weights.
Response to Comments
    We agree with the AMSA comments on this section and have modified 
the interim final rule to raise the weight threshold from 454 kilograms 
(1,000 pounds) to 3,000 pounds.

Section 375.513 Must I Give the Individual Shipper an Opportunity to 
Observe the Weighing?

    NACAA supports requiring movers to afford shippers an opportunity 
to observe weighing of their shipments.
Response to Comments
    The proposed observation requirement is adopted without change.

Section 375.515 May an Individual Shipper Waive His/Her Right To 
Observe Each Weighing?

    AMSA argues this provision should be modified. AMSA recommends the 
provision should indicate that the shipper's decision not to observe 
weighings constitutes a waiver of that right. It argues that proposed 
Sec.  375.513 clearly requires that carriers ``* * * must give the 
person who will observe the weighings a reasonable opportunity to be 
present to observe the weighings.'' Assuming a shipper elects not to 
observe the weighings, to be consistent, Sec.  375.515 should be 
amended to indicate that right was waived. 49 U.S.C. 14104(c) requires 
that shipper waiver of the right to observe re-weighings must be 
accomplished in writing. Therefore, to accommodate both situations, 
AMSA recommends revising the section to read as follows:

    If an individual shipper elects not to observe a weighing, the 
shipper is presumed to have waived that right. If an individual 
shipper elects not to observe a re-weighing, the shipper shall waive 
that right in writing. This does not affect any other rights of the 
individual shipper under this part or otherwise.

[[Page 35083]]

Response to Comments
    FMCSA agrees with AMSA and has added language to the interim final 
rule that a shipper's waiver of the right to observe a re-weighing must 
be in writing. We allow the shipper to send the writing via fax, e-
mail, or any other electronic means.

Section 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?

    NACAA supports requiring movers to comply with the shipper's 
requests for notice of the shipment weight and charges before delivery.
Response to Comments
    The proposed notification requirement is adopted without change.

Section 375.601 Must I Transport the Shipment in a Timely Manner?

    NACAA supports requiring movers to transport goods in a timely 
manner.
Response to Comments
    The proposed reasonable dispatch requirement is adopted without 
change.

Section 375.605 How Must I Notify an Individual Shipper of Any Service 
Delays?

    NACAA supports requiring movers to retain notices relating to 
service delays for a period of one year and supports requiring movers 
to notify shippers of service delays.
    AMSA believes there is a basic problem with the language employed 
in this section. The section states that a carrier must notify a 
shipper of service delays. AMSA believes the inconsistency lies in the 
fact that if a carrier is unable to pick up a shipment on the agreed 
upon date(s), it must notify the shipper of the delay and amend the 
order for service. It makes little sense to AMSA to amend an order for 
service for delay at origin. The practical result of this section, as 
written, is that carriers will never be responsible for delays at 
origin because the order for service will reflect that the shipment was 
actually loaded on the agreed upon pick-up date. Appropriate changes 
should be made.
    In addition, AMSA notes that paragraph (b)(6) requires the mover, 
in the instance of delay notification, to furnish the shipper with a 
``true copy'' of the notice by first class mail or in person. AMSA 
believes this provision, while carried over from the existing 
regulations, will be no more feasible to perform under the proposed 
regulations than it is under the existing regulations. During the 
course of a move, while both the shipment and the shipper are in 
transit, there is no practical benefit in mailing a copy of the delay 
notification to the shipper. Since the shipper, who has already 
received notice of a delay by telephone, telegram, or in person is not 
at his old or his future address, no purpose is served by mailing a 
duplicate notice. AMSA submits that the solution lies in simply adding 
the words ``if the shipper requests a copy of the notice.'' Such a 
revision would ensure that ``interested shippers'' who desire a copy of 
the notice for their records or to support a claim for delay or 
inconvenience will be furnished a copy, while duplicate copies would 
not be automatically forwarded to other shippers who have already 
received their shipments and have no need for the notice.
Response to Comments
    FMCSA agrees with AMSA's comments on this section and has made 
appropriate changes in the interim final rule language.

Section 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?

    The AGCT comments that carriers should be required to deliver the 
shipment in accordance with the delivery dates or periods specified in 
the contract. Paragraph (c) should preclude a carrier from limiting its 
liability for storage-in-transit to the delivery period. It is 
inequitable to allow a carrier to avoid any liability for delays in 
shipment while providing no similar mechanism to excuse a shipper's 
delay, even if the delay is caused by circumstances beyond the 
shipper's control. It recommends we should permit movers only limit 
their liability to the last day of the delivery period specified in the 
bill of lading.
    AMSA comments on this AGCT proposal that paragraph (c) preclude 
movers from limiting their ``liability'' for storage-in-transit. In 
addition, it is suggested that this subsection be modified to only 
permit the mover to limit its ``liability'' to the last day of the 
period specified in the bill of lading. The proposed regulation speaks 
in terms of ``responsibility'' and not ``liability.'' The rule is 
apparently intended to authorize movers, at their option, to not assess 
storage charges, or, alternatively, to assess charges beyond the agreed 
date. In support of the AGCT's position, it argues that it is 
``inequitable'' to allow carriers to avoid liability for delays with no 
similar mechanism to excuse shipper delays. AMSA believes that movers 
routinely honor delay and/or inconvenience claims in accordance with 
their tariff provisions that are not intended to avoid carrier 
liability.
Response to Comments
    FMCSA agrees with the comments of this section.

Section 375.609 What Must I Do for Shippers Who Store Household Goods 
in Transit?

    NACAA supports requiring movers to retain notices issued under this 
section for a period of one year.
    The AGCT comments that the nine-month limitation on a shipper's 
right to file a claim against the carrier for damage or loss of goods 
in paragraph (b)(2) runs counter to a shipper's right to bring an 
action within the State of Connecticut's statutory period. It believes 
the rules should acknowledge the shipper's right to rely on a State-
established statutory period for bringing an action against the 
carrier. Any other action is not shipper protection in its opinion. It 
also recommends that we modify paragraphs (a) and (b) to impose 
liability on the carrier until ten days after the carrier actually gave 
notice to the shipper that the period of storage-in-transit will expire 
and the shipment will be governed by rules and charges of the 
warehouseman. It believes the ten-day period is consistent with the 
provisions in paragraph (c).
    AMSA asserts that paragraph (d) will require that notifications to 
shippers regarding the expiration of storage-in-transit (SIT) be 
accomplished by certified mail, return receipt requested. This 
provision should be expanded to include notification by facsimile 
transmission and overnight courier. Such a change will permit movers to 
take advantage of faster methods of transmitting the required 
notifications. This is particularly important for SIT periods of less 
than 10 days when only 1-day notice is required as contemplated by 
Sec.  375.609(e).
    In connection with paragraph (b)(2), AMSA believes that the AGCT's 
suggestion conflicts with the nine-month statutory period provided for 
the filing of claims for loss or damage in 49 U.S.C. 14706(e)(1).
    In response to the AGCT proposal to retain carrier liability until 
10 days after the carrier actually gives notice, AMSA does not believe 
that a notice related to the expiration of storage-in-transit should be 
allowed to unduly extend the SIT period. AMSA states shippers are 
advised at the time their goods are placed in storage that the SIT 
storage period is 90 days and if a longer period

[[Page 35084]]

applies by virtue of a particular carrier's tariff, the shipper is so 
advised.
Response to Comments
    In the interim final rule, FMCSA has added to paragraph (d) that 
notification can be made by facsimile, overnight courier, e-mail, or 
certified mail return receipt. All of these methods can confirm 
delivery notification to the shipper. We cannot adopt the AGCT's 
comment about the shipper's right to bring an action within a State's 
statutory limitation period. The Federal statute takes precedence for 
interstate moves. Also, FMCSA cannot add a new requirement that would 
impose on carriers a potential additional 9 days of liability when it 
has failed to give the 10 day notification under paragraph (c). The 
rule, as adopted, imposes liability on a carrier for an indefinite 
period if it does not give notice and ensures the shipper of at least 
24 hours notice that a carrier liability for goods in storage will end.

Section 375.701 May I Provide for a Release of Liability on My Delivery 
Receipt?

    NACAA supports the requirement that movers must not include in 
their paperwork a release from liability for damages, but believes 
permitting carriers to include the ``statement the property was 
received in apparent good condition except as noted in the shipping 
documents'' is not justified and can lead to serious shipper harm. It 
suggests that proposed Sec.  375.701(b) be removed. It also proposes 
requiring check boxes with statements such as ``I have not had an 
opportunity to open all boxes to verify the condition of their contents 
or determine if anything is missing.'' It believes the rules should 
mandate inclusion of a statement that the ``mover remains liable for 
all losses suffered by shipper'' with an explanation of the procedure 
and time limits for making a claim.
    The AGCT recommends amending this section to make explicit that the 
``apparent good condition'' language is not binding and the rules 
should not allow a carrier to include a statement that the property was 
received in good condition unless otherwise noted. It asserts that the 
shipper does not have the time to inspect all goods as the carrier 
unloads them. This is especially true for any items that are boxed and 
unavailable for inspection at the time of delivery. It believes the 
regulation creates a barrier to the shipper's ability to successfully 
assert damage claims against the carrier.
    AMSA argues that paragraph (a) makes it clear that any carrier 
statement attempting to release it from liability is not permitted. The 
statement NACAA objects to is a general acknowledgment indicating that 
the services ordered have been accomplished and the shipment has been 
delivered in ``apparent'' good condition. The shipper is only expected 
to note conspicuous loss or damage at the time of delivery. The 
presumption of ``apparent'' good condition is routinely rebutted by 
shippers after they have had an opportunity to unpack and perform a 
more thorough inspection.
Response to Comments
    FMCSA agrees with AMSA's comments on this section and believes no 
changes are necessary.

Section 375.703 What Is the Maximum Collect-on-Delivery Amount I May 
Demand at the Time of Delivery?

    The AGCT recommends requiring carriers to relinquish possession of 
the shipment in an amount substantially less than 100 percent of the 
estimate.
    AMSA comments that the maximum COD amount that may be collected on 
a non-binding estimate shipment is 110 percent of the estimated amount. 
It states that this provision should be revised to mirror its earlier 
suggested change in Sec.  375.403(a)(7), to provide that the carrier 
may also require full payment for additional services requested or 
required by the shipper that do not appear on the estimate and were 
performed by the mover en-route or at destination. The proposed 
subsection would read as follows:

    (b) On a non-binding estimate, the maximum amount is 110 percent 
of the non-binding estimate of charges, except that full payment may 
be collected at the time of delivery for any added additional 
services that were performed en-route or at destination which were 
necessary to complete the transportation and do not appear on your 
non-binding estimate. You may specify the form of payment acceptable 
to you.
Response to Comments
    We have not made the changes to this section suggested by AMSA 
since we are providing in Sec.  375.403(a)(7) that the carrier may not 
require full payment for additional services required by the shipper 
that do not appear on the estimate and were performed by the mover en-
route or at destination. We believe that all shipments based on non-
binding estimates should be released to the shipper for no more than 
110 percent of the original estimate and the remainder billed after 30 
days.

Section 375.705 If a Shipment Is Transported on More Than One Vehicle, 
What Charges May I Collect at Delivery?

    The AGCT requested the rules should not permit demand for payment 
until the entire shipment is delivered. Shipments are not split for the 
shipper's benefit, but only for the convenience of the carrier. 
Shippers should only be required to tender payment upon the carrier 
delivering the entire shipment.
    AMSA comments that the proposed section is patterned after the 
existing regulation and, on split delivery shipments, it would 
authorize carriers to defer collection of transportation charges until 
final delivery or collection of a pro-rata portion of those charges 
based upon the quantity of goods included in the first delivery.
    AMSA argues the AGCT also ignored the requirements of 49 U.S.C. 
13707, that provides that carriers must not relinquish possession of 
goods until transportation charges are paid. Thus, collection of a pro-
rata portion of transportation charges equal to the quantity of goods 
delivered is required by statute.
    From an operational standpoint, AMSA alleges, industry data 
indicates that less than 2 percent of the shipments transported in 1994 
moved in two or more vans. This percentage is nearly equal to the 
number of shipments (2 percent) that weighed more than 18,000 to 20,000 
pounds, the normal capacity of a moving van, and required the service 
of two or more vans. AMSA stated this data came from the latest year 
for which such data was available from the AMSA Continuing Traffic 
Study, though AMSA did not submit the study as part of its comments. 
Therefore, AMSA contends that, contrary to the AGCT's position, most 
shipments that involve split deliveries are not the result of carrier 
convenience. They are dictated by operational requirements.
Response to Comments
    FMCSA agrees with the AMSA comments on this section and has made no 
changes to the proposed rule.

Section 375.707 If a Shipment Is Partially Lost or Destroyed, What 
Charges May I Collect at Delivery?

    The AGCT comments that it is unimaginable that a carrier can lose 
or destroy part of a shipment and yet demand full payment before being 
obligated to relinquish possession of the remainder of the shipment. It 
believes this provision is abhorrent and strongly anti-shipper. The 
proposed regulation is silent as to when the carrier must refund

[[Page 35085]]

the amount of the lost or destroyed shipment to the shipper. The AGCT 
argues the carrier should be forced to relinquish possession of a 
shipment and only bill the shipper for amounts due and owing 30 days 
after delivering the shipment to the shipper.
    AMSA comments that as proposed, in the event of partial loss or 
destruction of a shipment, the mover must determine, at its own 
expense, the portion of the shipment that was delivered intact. It 
recommends that the wording of this provision be revised for clarity to 
avoid confusion concerning the basis for refunding charges that were 
applicable to lost or destroyed portions of shipments, as follows:

    (b)(4) You must determine, at your own expense, the proportion 
of the shipment, based on actual or constructive weight, not lost or 
destroyed in transit.

    AMSA argues that the AGCT's comments evoke the same degree of 
incredulity that the AGCT professes regarding the proposed rule. AMSA 
argues that carriers routinely process claims for loss or damage, the 
sum of which includes a portion of the transportation charge related to 
lost goods. It is difficult to understand the rationale that would deny 
payment on a 10,000 pound shipment if, for example, cartons weighing 
500 pounds were not tendered at the time of delivery. In such a 
situation, the carrier is liable for the value of the lost goods and a 
pro-rata portion of the transportation charges. As AMSA had commented 
previously, the ICCTA requires that carriers ``* * * shall give up 
possession at the destination of the property transported by it only 
when payment for the transportation or service is made.''
Response to Comments
    FMCSA agrees with the AMSA comments on this section and has 
modified paragraph (b)(4) in the interim final rule accordingly.

Section 375.709 If a Shipment Is Totally Lost or Destroyed, What 
Charges May I Collect at Delivery?

    The AGCT comments that carriers should be required to pay shippers 
the declared value of a lost or destroyed shipment on or before the 
last day of the contractually agreed on delivery date, less the 
specific valuation charge.
    AMSA comments that under this section as proposed, movers will not 
be entitled to collect or require shippers to pay freight charges 
(including charges for accessorial or terminal services) when a 
shipment is totally lost or destroyed in transit. The provisions of 
paragraph (a)(2) appear to be in conflict by providing that ``you may 
apply paragraph (a) of this section only to the transportation of 
household goods and not to charges for other services the individual 
shipper ordered.'' AMSA is unclear as to the difference between the 
prohibited ``accessorial services'' charges referred to in paragraph 
(a) and the permitted ``other services'' charges referred to in 
paragraph (a)(2). AMSA recommends that paragraph (a)(2) be deleted to 
avoid confusion concerning the meaning of this section.
    AMSA states that the settlement of claims for loss or damage does 
not fall into the simple scenario presented by the AGCT. All such 
claims must be substantiated. If a claimant declared a shipment value 
of $100,000, that does not automatically entitle the claimant to that 
amount in the event of a total loss. If the goods are actually valued 
at $75,000 and the claimant can substantiate that amount, the carrier 
will honor a claim for the same amount. 49 U.S.C. 14706 imposes 
liability ``* * * for the actual loss or injury to the property * * *'' 
The regulations require that claims for loss or damage be submitted, in 
writing in accordance with the requirements of 49 CFR part 370, and 
that they, inter alia, include a ``certification of values [and] 
depreciation reflected thereon.'' 49 CFR 370.7(b). Obviously, the 
processing and settlement of claims for loss or damage by carriers must 
follow the explicit requirements of the regulations.
Response to Comments
    FMCSA agrees with AMSA's comments for this section and has changed 
the interim final rule accordingly.

Section 375.801 What Types of Charges Apply to Subpart H?

    The AGCT again asserts the rules should require carriers to 
relinquish possession of shipments in an amount substantially less than 
100 percent of the estimate.
Response to Comments
    FMCSA does not agree with the AGCT comments. We believe that all 
binding estimates should be released to the shipper for no more than 
100 percent of the original estimate. Sections 375.801-375.807 do not 
apply to non-binding estimates.

Section 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?

    The AGCT comments that carriers should not be allowed to present 
freight or expense bills before the expiration of a 30-day period after 
delivery.
    AMSA comments that in order to collect the balance of charges due 
on collect-on-delivery shipments, proposed Sec.  375.805 would require 
carriers to present the freight bill within 7 days from the date the 
shipment was delivered at destination. Such a requirement is 
unreasonably short and unrealistic. Typically, a freight bill cannot be 
prepared until all shipment paperwork is received from the delivering 
driver. It is not uncommon for this process to consume most of the 
proposed 7-day period. A 7-day requirement is also inconsistent with 
the 15-day requirement contained in proposed Sec.  375.807, and there 
is no justification for the two different time periods. It therefore 
recommends that Sec.  375.805 be revised to read:

    On ``collect-on-delivery'' shipments, you must present your 
freight bill for all transportation charges as provided in Sec.  
375.807(a).
Response to Comments
    FMCSA agrees with AMSA's comment and has changed the rule text to 
be 15 days as required by Sec.  375.807.

Section 375.807 What Actions May I Take To Collect the Charges Upon My 
Freight Bill?

    The AGCT comments that shippers should not be automatically 
subjected to a one percent service charge by the operation of a 
regulation and believes the FMCSA should consider imposing a one 
percent ceiling on any service charge imposed by the carrier.
    AMSA comments that as proposed, individual shippers will be 
assessed a service charge equal to one percent of the amount of the 
freight bill, subject to a $20 minimum charge, for extension of the 
normal credit period. AMSA believes this wording should be clarified to 
indicate that the one-percent fee applies in 30-day increments, rather 
than once for the entire extended credit period. For example, if the 
bill remains unpaid for 60 additional days following the initial 30-day 
period (for a total of 90 days), the one percent service charge would 
be applied three times, once for each 30-day extension or fraction 
thereof.
    AMSA believes the AGCT suggestion that the regulation should limit 
to one percent any service charge imposed by carriers is an 
unreasonable request. AMSA asserts the cost of credit and capital and 
the cost to carriers of carrying delinquent accounts does not equate to 
a flat one percent of an outstanding amount.

[[Page 35086]]

Response to Comments
    FMCSA agrees with AMSA's comments and has modified paragraph (c)(2) 
in the interim final rule to state the service charge will be assessed 
for each 30-day extension of the credit period during which the charges 
go unpaid.

Section 375.901 What Is An Annual Arbitration Report?

    We discussed the comments concerning the arbitration report under 
Sec.  375.211 in our discussion of the arbitration program as a whole. 
As we have decided to not require such a report, we have removed 
proposed Sec. Sec.  375.901-375.907.

Section 375.1001 What Penalties Do We Impose for Violations of This 
Part? (Section 375.901 in Interim Final Rule)

    NACAA supports movers being subject to statutory penalties for 
failure to comply with these regulations. In addition to these 
penalties, NACAA proposes that carriers be made subject to actions 
brought pursuant to State unfair or deceptive trade practices laws by 
adding the following language to this section:

    The regulations are supplementary law; that is, the remedies 
provided herein shall be cumulative and supplementary to all other 
remedies otherwise provided by Federal, State and local law.

    The OCC requests this section include the following language. ``Not 
withstanding the above civil penalties, nothing in this Section shall 
deprive any holder of a receipt of bill of lading any remedy or right 
of action under existing law. Where litigation is pursued under other 
existing rights, the prevailing party shall be allowed attorney fees, 
trial preparation costs, and court costs.'' The OCC believes its 
proposed language should also be paraphrased in YRRWYM on the front 
page. It believes that shippers should be able to choose the choice of 
forum in the State of shipping or destination and that a list of State 
agencies that take complaints concerning household goods moves should 
be included.
    AMSA comments that the NPRM attempted to explain and/or define the 
penalties, civil and criminal, arising from violations of the proposed 
regulations. AMSA believes this to be inadvisable. AMSA notes that 49 
U.S.C. Chapter 149 consists of 14 specific laws that require 36 pages 
of written text (sections and related statutory and case notes) 
defining the scope of these penalty provisions. An attempt to restate 
these provisions in a short-hand version is likely to lead to 
misinterpretations and debate over Congressional intent. AMSA believes 
the statutory penalty provisions speak for themselves and, if invoked, 
they will prevail and not the proposed regulations. Therefore, AMSA 
recommends that all but the first two sentences of proposed Sec.  
375.1001 be eliminated.
Response to Comments
    FMCSA agrees with AMSA's comments on this section and has removed 
all but the first two sentences of Sec.  375.1001 (renumbered as 
375.901 in the interim final rule). Regarding NACAA's comments, the 
Carmack amendment, now codified at 49 U.S.C. 14706, imposes a uniform 
regime of carrier liability for interstate shipments of property 
designed to eliminate the uncertainty resulting from potentially 
conflicting State laws. Federal and State courts have consistently held 
that Carmack preempts (or supercedes) a broad range of State consumer 
protection laws potentially applicable to interstate household goods 
carriers, regardless of whether these laws are consistent with Carmack. 
The language proposed by NACAA is inconsistent with prevailing case law 
and beyond the authority of FMCSA to impose in this rulemaking 
proceeding.
    We agree with OCC's recommendation that this section include the 
following language: ``Notwithstanding the above civil penalty, nothing 
in this section shall deprive any holder of a receipt of a bill of 
lading, any remedy or right of action under existing law.''

Appendix A Your Rights and Responsibilities When You Move

    FMCSA has modified appendix A to be consistent with the interim 
final rules as modified by the above comments.

Order of the Final Regulations

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

                       Part 375.--Transportation of Household Goods in Interstate Commerce
----------------------------------------------------------------------------------------------------------------
             New section                     Old section                      Title of new 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?
375.105..............................  None...................  What are the information collection requirements
                                                                 of this part?
--------------------------------------
                                SUBPART B--BEFORE OFFERING SERVICES TO CUSTOMERS
----------------------------------------------------------------------------------------------------------------
                                            Liability Considerations
----------------------------------------------------------------------------------------------------------------
375.201..............................  375.12.................  What is my normal liability for loss or damage
                                                                 when I accept goods from an individual shipper?
375.203..............................  375.12.................  What actions of an individual shipper may limit
                                                                 or reduce my normal liability?
--------------------------------------
                                            General Responsibilities
----------------------------------------------------------------------------------------------------------------
375.205..............................  375.14.................  May I have agents?
375.207..............................  375.17.................  What items must be in my advertisements?
375.209..............................  375.13.................  How must I handle complaints and inquiries?
375.211..............................  None...................  Must I have an arbitration program?
375.213..............................  375.2..................  What information must I provide to a prospective
                                                                 individual shipper?
--------------------------------------
                                        Collecting Transportation Charges
----------------------------------------------------------------------------------------------------------------
375.215..............................  373, subpart A.........  How must I collect charges?

[[Page 35087]]

 
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 liability insurance coverage, what
                                                                 must I do?
--------------------------------------
                                          SUBPART D--ESTIMATING CHARGES
----------------------------------------------------------------------------------------------------------------
375.401..............................  375.3..................  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?
375.409..............................  None...................  May household goods brokers provide estimates?
--------------------------------------
                        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..............................  None...................  Must I write up an inventory?
375.505..............................  375.6..................  Must I write up a bill of lading?
--------------------------------------
                                              Weighing the Shipment
----------------------------------------------------------------------------------------------------------------
375.507..............................  375.7..................  Must I determine the weight of a shipment?
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 3,000 pounds 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?
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 or period of time?
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--PENALTIES
----------------------------------------------------------------------------------------------------------------
375.901..............................  None...................  What penalties do we impose for violations of
                                                                 this part?
--------------------------------------
                                                   APPENDIX A
----------------------------------------------------------------------------------------------------------------
Part 375, Appendix A.................  Part 375 Form: Office    Your Rights and Responsibilities When You Move.
                                        of Compliance and
                                        Enforcement (OCE)-100.
----------------------------------------------------------------------------------------------------------------


[[Page 35088]]

Compliance and Effective Dates

    The agency is specifying when motor carriers and drivers must 
comply with this interim final rule. The effective date cited in the 
DATES heading at the top of this document is the date that this interim 
final rule's amendments affect the current Code of Federal Regulations 
published by the Office of the Federal Register. Motor carriers and 
drivers transporting household goods may not begin to comply with this 
interim final rule on that date.
    The compliance date is the date that motor carriers and drivers 
must begin to comply with this interim final rule. Motor carriers, 
drivers, and the FMCSA must do many necessary things before the rules 
can be enforced. The FMCSA must update motor carrier information, 
compliance, and enforcement computer systems and manuals. The FMCSA has 
eight computer software packages where it must find the correct code, 
write new code, test the new software, and distribute it to its 
division offices.
    The agency must develop training, distribute training materials, 
and ensure training materials are read, taught, and understood by the 
FMCSA's inspectors, investigators, and auditors. The agency also plans 
to provide training and presentations to the public about the new 
rules.
    Motor carriers must develop training or use FMCSA's training 
materials, distribute training materials, and ensure training materials 
are read, taught, and understood by the drivers engaged in interstate 
commerce who transport household goods. The FMCSA cannot do its part, 
and cannot expect motor carriers to do their part, within 90 days after 
today.
    The agency believes a compliance date near the end of the ``off-
season'' will be the least burdensome to all carriers and enforcement 
officials. Most affected carriers subject to this interim final rule 
have fewer household goods shipments between October and March and most 
affected carriers would suffer less disruption to their operations if 
the rule took effect near the beginning of a new moving season (April 
through September). Therefore, the agency is providing a compliance 
date when all carriers, drivers, and enforcement officials will switch 
from the current rule to the new rule: Monday, March 1, 2004.

Rulemaking Analyses and Notices

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

    FMCSA has determined that this action is a significant regulatory 
action within the meaning of Executive Order 12866 and the Department 
of Transportation regulatory policies and procedures (44 FR 11034, 
February 26, 1979) because there is substantial public interest. It is 
anticipated that the economic impact of this rulemaking will be 
minimal.
    The rules affect a broad segment of the public. In addition, the 
agency received comments to the NPRM from the California, Colorado, 
Idaho, Michigan, New Hampshire, Oregon, and Pennsylvania Departments of 
Agriculture, the elected Attorney Generals from 26 States, and numerous 
consumer groups.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) (5 U.S.C. 601-612), as amended 
by the Small Business Regulatory Enforcement and Fairness Act (Pub. L. 
104-121), requires federal agencies to analyze the impact of 
rulemakings on small entities, unless the Agency certifies that the 
rule will not have a significant economic impact on a substantial 
number of small entities.
    The changes being made to the existing rule by FMCSA do not impose 
a significant economic impact on a substantial number of small 
entities. The original rule issued by the ICC imposed paperwork 
requirements that would take 785 hours for each entity. Today's IFR 
increases that burden by 458 hours; the new total of the burden hours 
is 1,243 hours. The total is being added to FMCSA's information 
collection budget, since the original amount was never ``transferred'' 
from the ICC.
    The interim final rule bases this estimate of 1,243 hours upon the 
estimated costs identified 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.
    FMCSA did not propose any different requirements or timetables for 
small entities. As noted above, we do not believe these requirements 
will be onerous, with many carriers already having to comply with these 
requirements. Furthermore, FMCSA has eliminated existing performance 
reporting requirements for both large and small carriers.
    As explained above, FMCSA cannot exempt small carriers from these 
proposals without seriously diminishing the agency's ability to ensure 
the protection of consumers. Exempting them could have the same impact 
as not issuing (or enforcing) these proposals. Therefore, FMCSA 
certifies that this interim final rule will not have a significant 
impact on a substantial number of small entities.

Executive Order 13132 (Federalism)

    This action has been analyzed in accordance with the principles and 
criteria contained in Executive Order 13132, dated August 4, 1999 (64 
FR 43255, August 10, 1999). State Attorneys General submitted comments 
to the May 2, 1998 NPRM, which were considered in developing this 
interim final regulation. The FMCSA has addressed the concerns of the 
Attorneys General in the interim final rule. The FMCSA certifies that 
this interim final rule has federalism implications because it directly 
impacts the distribution of power and responsibilities among the 
various levels of government.

Federalism Summary Impact Statement

The FMCSA Position Supporting the Need To Issue This Regulation
    The State Attorneys General generally believe they hold authority 
to enforce laws and regulations governing the interstate transportation 
of household goods and want FMCSA to acknowledge their role. However, 
the interstate transportation of household goods involves issues that 
are national in scope that have been regulated exclusively by the 
Federal government for many years. Regulations implementing the 
Household Goods Transportation Act of 1980 were promulgated by the 
Interstate Commerce Commission (ICC) in 1981 and were subsequently 
transferred to DOT by the ICC Termination Act of 1995 where Congress, 
in 49 U.S.C. 14104, conferred authority on the Secretary of 
Transportation to `issue regulations protecting individual shippers.' 
The Secretary subsequently delegated this authority to FMCSA under 49 
CFR 1.73(a)(6). Thus, the Carmack Amendment, now codified at 49 U.S.C. 
14706, imposes a uniform regime of carrier liability for interstate 
shipments of property designed to eliminate the uncertainty resulting 
from potentially conflicting State laws. Federal and State courts have 
consistently held that

[[Page 35089]]

Carmack preempts a broad range of State consumer protection laws 
potentially applicable to interstate household goods carriers. As was 
the case with the former ICC regulation amended by today's interim 
final rule, under current case law this rule preempts all State 
regulations that purport to regulate the interstate transportation of 
household goods subject to Federal jurisdiction.
    AMSA commented that the NPRM's conclusion that this rule is not 
intended to preempt any State law or regulation was incorrect and is 
likely to promote uncertainty and potential conflicts with States. AMSA 
wrote ``In promulgating these regulations FHWA has expressly preempted 
application of any State law that would impact the services required to 
perform interstate transportation of household goods. States, for 
example, may not regulate the manner in which household goods carriers 
are required by FHWA to execute orders for service nor may they enforce 
any State regulation that would affect any other aspect of the 
interstate moving service performed by household goods carriers 
regulated by FHWA. See, e.g., Fidelity Federal S. Sr L. Assn. v. de la 
Cuesta, 458 U.S. 141, 73 L.Ed.Zd 664 (1982) (Even where Congress has 
not completely displaced State regulation in a specific area, State law 
is nullified to the extent that it actually conflicts with Federal law. 
Federal regulations have no less pre-emptive effect than Federal 
statutes.) FHWA authority to issue the proposed regulations is without 
question. As the NPRM notes, in enacting section 14104 of the 
Termination Act, the enabling statute in this proceeding-Congress 
conferred authority on the Secretary to `issue regulations protecting 
individual shippers.' That is precisely what the Secretary proposes and 
his action in doing so preempts all State regulations that would 
purport to regulate the same activities. For these reasons, the cited 
sentence should be removed or clarified in the final decision in this 
proceeding. In a similar vein, it is appropriate at this point to 
address certain comments of NACAA. NACAA urges that the proposed 
regulations should announce that they are supplementary law only and 
that violations will also subject movers to remedies provided by other 
Federal, State and local laws, such as State deceptive trade practices 
laws. (Comments, p. 7). This suggestion reflects a fundamental 
misconception of the Supremacy Clause, U.S. Constitution, Art. VI, 
clause 2, and Federal preemption. There is not the slightest suggestion 
in the law or its precedent that Congress ever intended this explicit 
and comprehensive regulatory scheme to be supplemental to or superseded 
by any State law or regulation. Congress could not have been clearer in 
expressing its intent to occupy the field of interstate household goods 
transportation regulation. AMSA asserts the NACAA's contention is 
flatly wrong.'' The FMCSA agrees that AMSA has correctly stated current 
case law on the preemption issue.
Prior Consultations With State and Local Officials
    As the AMSA pointed out, the NPRM's conclusion that this rule is 
not intended to preempt any State law or regulation was incorrect. 
Thus, the requirement in section 6(c) to consult ``with State and local 
officials early in the process of developing the proposed regulation'' 
in accordance with OMB guidance to send letters to State and local 
officials or their regional or national representative organizations, 
such as the National Association of Governors, did not occur. The 
agency did receive comments to the docket from State and local 
officials.
Summary of the Nature of State and Local Officials' Concerns
    State officials recommended that the rules incorporate additional 
consumer protection provisions, including: (1) More comprehensive 
disclosure requirements, particularly with respect to insurance and 
carrier liability; (2) stronger arbitration requirements; (3) uniform 
rules governing cash-on-delivery service, including requiring movers to 
relinquish possession of a shipment upon payment of an amount 
substantially less than the amount of the estimate; (4) requiring 
movers to offer guaranteed delivery prices if requested by the shipper; 
(5) restricting billing for additional services not contained in the 
estimate; (6) establishing a three-day grace period allowing a shipper 
to rescind an order for service without penalty; (7) permitting the 
shipper to deduct penalties for late deliveries from the transportation 
charges; (8) relaxing limitations on a shipper's right to file loss and 
damage claims, including claims for loss and damage occurring during 
storage-in-transit; and (9) prohibiting demands for payment until the 
entire shipment is delivered.
Statement of the Extent To Which the FMCSA Has Addressed the Concerns 
of State and Local Officials
    In response to these comments, FMCSA modified the proposed rules 
by: (1) Revising the consumer information pamphlet that movers must 
give shippers to include guidance regarding their right to decline 
arbitration; (2) clarifying carrier liability disclosure requirements; 
(3) requiring movers to disclose the identity of subcontractors used to 
handle the move; (4) requiring movers to relinquish delivery and defer 
demanding payment for charges not in the estimate which the mover could 
have reasonably determined at the time of pick-up; and (5) mandating a 
three-day grace period for shippers to cancel orders for service 
without penalty.
Conclusion
    The FMCSA submitted State and local official comments to the docket 
and this federalism summary impact statement to the Director of the 
Office of Management and Budget.

Unfunded Mandates Reform Act of 1995

    The Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4; 2 U.S.C. 
1532) requires each agency to assess the effects of its regulatory 
actions on State, local, and tribal governments and the private sector. 
Any agency promulgating a final rule likely to result in a Federal 
mandate requiring expenditures by a State, local, or tribal government 
or by the private sector of $100 million or more in any one year must 
prepare a written statement incorporating various assessments, 
estimates, and descriptions that are delineated in the Act. FMCSA has 
determined that the changes in this interim final rule will not have an 
impact of $100 million or more in any one year.

Paperwork Reduction Act

    Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501-
3520), a Federal agency must obtain approval from the Office of 
Management and Budget (OMB) for each collection of information it 
conducts, sponsors, or requires through regulations. The majority of 
the information collection (IC) requirements in this IFR are not new. 
Yet, the FMCSA has determined, for reasons set forth below, that the 
information collection requirements in this IFR would technically 
constitute a new collection of information undertaking, thus needing a 
new OMB approval and control number.
    The FMCSA seeks approval of the collection of information 
requirements in this IFR to generate, maintain, retain, disclose, and 
provide information to, or for, the agency under 49 CFR part 375. The 
information collected will assist individual household goods shippers 
in their commercial dealings with interstate household goods carriers, 
thereby providing a desirable consumer

[[Page 35090]]

protection service. The collection of information would be used by 
prospective household goods shippers to make informed decisions about 
contracts and services to be ordered, executed, and settled within the 
interstate household goods carrier industry. These information 
collection items were required by the former ICC regulations. When 
these items transferred from the ICC to the FMCSA, however, no OMB 
control number was assigned to cover this information collection 
transfer. It is therefore necessary to calculate the old information 
collection burden hours for these items approved under the ICC rules 
versus the new burden generated by this IFR. The only information 
collection items changing from the former ICC's rules regarding 
household goods transportation are the addition of an arbitration 
program summary, written non-binding estimates and inventory, and the 
elimination of the annual performance reporting requirement.
    Assumptions used for calculations in this PRA section include the 
following: (1) There are currently approximately 4,000 active household 
goods carriers--up from the 2,000 estimated in the 1998 NPRM; (2) an 
estimated 75 new household goods carriers will start-up business each 
year; (3) over the next 3 years, two large van lines will start-up 
business; and (4) the arbitration report that was proposed at NPRM 
stage will not be required.
    The following table summarizes the information collection burden 
hours of this IFR by setting forth the appropriate section of part 375 
that is affected. The total annual burden hour estimate in this IFR is 
4,370,037 (the estimate at NPRM stage was 4,811,127 burden hours, a 
difference of 441,090 burden hours). The chart also shows which 
information collection activities were required under the former-ICC 
regulations and those which are new, set forth for the first time in 
this IFR. A detailed analysis of the burden hours can be found in the 
OMB Supporting Statement that corresponds with this IFR. The Supporting 
Statement and its attachments are in the docket associated with this 
rule (Docket No. FMCSA-97-2979).

----------------------------------------------------------------------------------------------------------------
                                                   Proposed
                Type of burden                      section      Hourly burden             New burden?
----------------------------------------------------------------------------------------------------------------
Agency Agreements.............................         375.205              19  No
Minimum Advertising Information Soliciting             375.207             684  No
 Prospective Individual Shippers.
Complaint and Inquiry Handling................         375.209         500,000  No
Arbitration Program Summary...................         375.211           8,000  Yes
Your Rights and Responsibilities When You Move         375.213           8,334  No
 Booklet.
Selling Insurance Policies....................         375.303         100,000  No
Estimates--Binding............................         375.401       1,836,000  No
Estimates--Non-binding........................         375.401       1,224,000  Yes
Orders for Service............................         375.501         300,000  No
Inventory.....................................         375.503           0 (1)  Yes
Bills of Lading...............................         375.505         300,000  No
Volume to Weight Conversions..................         375.507           4,000  No
Weight Tickets................................         375.519          42,000  No
Notifications of Reasonable Dispatch Service           375.605          16,000  No
 Delays.
Delivery More Than 24 Hrs. Ahead of Time......         375.607           1,000  No
Notification of Storage-in-Transit Liability           375.609          30,000  No
 Assignments.
                                               -----------------
    ``Old'' Burden Hours......................  ..............  ..............  3,138,037
    ``New'' Burden Hours......................  ..............  ..............  1,232,000
                                               =================
        Total Burden Hours for IC.............  ..............       4,370,037  ................................
----------------------------------------------------------------------------------------------------------------
\1\ Making inventories is a usual and customary moving industry practice that the FMCSA is adopting at the
  suggestion of the NACAA and the AMSA. The PRA regulations at 5 CFR 1320.3(b)(2) allow the FMCSA to calculate
  no burden when the agency demonstrates that the activity needed to comply is usual and customary. The
  supporting statement in the docket demonstrates that moving industry drivers usually and customarily write
  inventories before loading shipments, although drivers have not been required by law to do so before today's
  Federal Register.

    We particularly request your comments on whether the collection of 
information is necessary for the FMCSA to meet the goal of 49 CFR part 
375 to protect consumers, including: (1) Whether the information is 
useful to this goal; (2) the accuracy of the estimate of the burden of 
the information collection; (3) ways to enhance the quality, utility 
and clarity of the information collected; and (4) ways to minimize the 
burden of the collection of information on respondents, including the 
use of automated collection techniques or other forms of information 
technology.
    You may submit comments on the information collection burden 
addressed by this interim final rule to the Office of Management and 
Budget (OMB). The OMB must receive your comments by July 11, 2003. You 
must mail or hand deliver your comments to: Attention: Desk Officer for 
the Department of Transportation, Docket Library, Office of Information 
and Regulatory Affairs, Office of Management and Budget, Room 10102, 
725 17th Street, NW., Washington, DC 20503.

National Environmental Policy Act

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

Executive Order 12630 (Taking of Private Property)

    This final rule would not effect a taking of private property or 
otherwise have taking implications under Executive Order 12630, 
Governmental Actions and Interference with Constitutionally Protected 
Property Rights.

Executive Order 12372 (Intergovernmental Review)

    Catalog of Federal Domestic Assistance Program Number 20.217, Motor 
Carrier Safety. The regulations implementing Executive Order 12372 
regarding intergovernmental consultation on Federal programs and 
activities do not apply to this program.

[[Page 35091]]

Executive Order 13211 (Energy Supply, Distribution, or Use)

    We have analyzed this action under Executive Order 13211, Actions 
Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use. This action is not a significant energy action 
within the meaning of section 4(b) of the Executive Order because as a 
procedural action it is not economically significant and will not have 
a significant adverse effect on the supply, distribution, or use of 
energy.

Executive Order 12988 (Civil Justice Reform)

    This action meets applicable standards in sections 3(a) and 3(b)(2) 
of Executive Order 12988, Civil Justice Reform, to minimize litigation, 
eliminate ambiguity, and reduce burden.

List of Subjects

49 CFR Part 375

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

49 CFR Part 377

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


0
For the reasons set out in the preamble, FMCSA amends 49 CFR parts 375 
and 377 as set forth below:
0
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?
375.105 What are the information collection requirements of this 
part?
Subpart B--Before Offering Services to My Customers

Liability Considerations

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

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

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 or credit card plan for payments?
Subpart C--Service Options Provided
375.301 What service options may I provide?
375.303 If I sell liability insurance coverage, what must I do?
Subpart D--Estimating Charges
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?
375.409 May household goods brokers provide estimates?
Subpart E--Pick Up of Shipments of Household Goods

Before Loading

375.501 Must I write up an order for service?
375.503 Must I write up an inventory?
375.505 Must I write up a bill of lading?

Weighing the Shipment

375.507 Must I determine the weight of a shipment?
375.509 How must I determine the weight of a shipment?
375.511 May I use an alternative method for shipments weighing 3,000 
pounds 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
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?
375.609 What must I do for shippers who store household goods in 
transit?
Subpart G--Delivery of Shipments
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
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--Penalties
375.901 What penalties do we impose for violations of this part?
Appendix A to Part 375--Your Rights and Responsibilities When You 
Move

    Authority: 5 U.S.C. 553; 49 U.S.C. 13301, 13704, 13707, 14104, 
14706; and 49 CFR 1.73.

Subpart A--General Requirements


Sec.  375.101  Who must follow these regulations?

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


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

    Terms used in this part are defined as follows. You may find other 
terms used in these regulations defined in 49 U.S.C. 13102. The 
definitions contained in this 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.
    Advertisement means any communication to the public in connection 
with an offer or sale of any interstate household goods transportation 
service. This includes written or electronic database listings of your 
name, address, and telephone number in an on-line database. This 
excludes listings of your name, address, and telephone number in a 
telephone directory or similar publication. However, Yellow Pages 
advertising is included in the definition.

[[Page 35092]]

    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.
    Certified scale means any scale inspected and certified by an 
authorized scale inspection and licensing authority, and designed for 
weighing motor vehicles, including trailers or semi-trailers not 
attached to a tractor, or designed as a platform or warehouse type 
scale.
    Commercial shipper means any person who is named as the consignor 
or consignee in a bill of lading contract who is not the owner of the 
goods being transported but who assumes the responsibility for payment 
of the transportation and other tariff charges for the account of the 
beneficial owner of the goods. The beneficial owner of the goods is 
normally an employee of the consignor and/or consignee. A freight 
forwarder tendering a shipment to a carrier in furtherance of freight 
forwarder operations is also a commercial shipper. The Federal 
government is a government bill of lading shipper, not a commercial 
shipper.
    Force majeure 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.
    Government bill of lading shipper means any person whose property 
is transported under the terms and conditions of a government bill of 
lading issued by any department or agency of the Federal government to 
the carrier responsible for the transportation of the shipment.
    Household goods, as used in connection with transportation, means 
the personal effects or property used, or to be used, in a dwelling, 
when part of the equipment or supplies of the dwelling. Transportation 
of the household goods must be arranged and paid for by the individual 
shipper or by another individual on behalf of the shipper. Household 
goods includes property moving from a factory or store if purchased 
with the intent to use in a dwelling and transported at the request of 
the householder, who also pays the transportation charges.
    Individual shipper means any person who is the consignor or 
consignee of a household goods shipment identified as such in the bill 
of lading contract. The individual shipper owns the goods being 
transported and pays the transportation charges.
    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, 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.
    Should means a recommendation. We recommend you do something, but 
it is not a requirement.
    Surface Transportation Board means an agency within the Department 
of Transportation. The Surface Transportation Board regulates household 
goods carrier tariffs among other responsibilities.
    Tariff means an issuance (in whole or in part) containing rates, 
rules, regulations, classifications or other provisions related to a 
motor carrier's transportation services. The Surface Transportation 
Board requires a tariff contain specific items under Sec.  1312.3(a) of 
this title. These specific items include an accurate description of the 
services offered to the public and the specific applicable rates (or 
the basis for calculating the specific applicable rates) and service 
terms. A tariff must be arranged in a way that allows for the 
determination of the exact rate(s) and service terms applicable to any 
given shipment.
    We, us, and our means the Federal Motor Carrier Safety 
Administration (FMCSA).
    You and your means a motor carrier engaged in the interstate 
transportation of household goods and its household goods agents.


Sec.  375.105  What are the information collection requirements of this 
part?

    (a) The information collection requirements of this part have been 
reviewed by the Office of Management and Budget pursuant to the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) and have been 
assigned OMB control number 2126------.
    (b) The information collection requirements are found in the 
following sections:
    Section 375.205, Section 375.207, Section 375.209, Section 375.211, 
Section 375.213, Section 375.215, Section 375.217, Section 375.303, 
Section 375.401, Section 375.403, Section 375.405, Section 375.409, 
Section 375.501, Section 375.503, Section 375.505, Section 375.507, 
Section 375.515, Section 375.519, Section 375.521, Section 375.605, 
Section 375.607, Section 375.609, Section 375.803, Section 375.805, and 
Section 375.807.

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?

    (a) In general, you are legally liable for loss or damage if it 
happens during performance of any transportation of household goods and 
all related services identified on your lawful bill of lading.
    (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. Contact the Surface Transportation Board for a 
current copy of the Released Rates of Motor Carrier Shipments of 
Household Goods. The rate may be increased annually by the carrier 
based on the Department of Commerce's Cost of Living Adjustment.
    (c) As required by Sec.  375.303(g), you may have additional 
liability if you sell liability insurance and you fail to issue a copy 
of the insurance policy or other appropriate evidence of insurance.
    (d) You must, in a clear and concise manner, disclose to the 
individual shipper the limits of your liability.


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

    (a) If an individual shipper includes perishable, dangerous, or 
hazardous articles in the shipment without your knowledge, you need not 
assume liability for those articles or for the loss or damage caused by 
their inclusion in the shipment. If the shipper requests that you 
accept such articles for

[[Page 35093]]

transportation, you may elect to limit your liability for any loss or 
damage by appropriately published tariff provisions.
    (b) If an individual shipper agrees to ship household goods 
released at a value greater than 60 cents per pound ($1.32 per 
kilogram) per article, your liability for loss and damage may be 
limited to $100 per pound ($220 per kilogram) per article if the 
individual shipper fails to notify you in writing of articles valued at 
more than $100 per pound ($220 per kilogram).
    (c) If an individual shipper notifies you in writing that an 
article valued at greater than $100 per pound ($220 per kilogram) 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 household 
goods 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) Your U.S. DOT number, assigned by us authorizing you to operate 
as a for-hire motor carrier transporting household goods.
    (c) Your FMCSA-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:
    (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 
information and forms you consider 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 decisionmaking 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 $5,000 or less, if 
the individual shipper requests arbitration.
    (8) Arbitration must be binding for claims of more than $5,000, 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 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 five of the following documents:
    (1) The contents of appendix A of this part, ``Your Rights and 
Responsibilities When You Move.''

[[Page 35094]]

    (2) A concise, easy-to-read, accurate estimate of your charges.
    (3) A notice of the availability of the applicable sections of your 
tariff for the estimate of charges, including an explanation that 
individual shippers may examine these tariff sections or have copies 
sent to them upon request.
    (4) A concise, easy-to-read, accurate summary of the your 
arbitration program.
    (5) 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 Motor Carrier Safety 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 chapter 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 36 square 
inches (232 square centimeters).
    (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. 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 chapter. All rates and 
charges for the transportation and related services must be in 
accordance with your appropriately published tariff provisions in 
effect, including the method of payment.


Sec.  375.217  How must I collect charges upon delivery?

    (a) You must specify the form of payment when you prepare the 
estimate. You and your agents must honor the form of payment at 
delivery, except when a shipper agrees to a change in writing.
    (b) You must specify the same form of payment provided in paragraph 
(a) of this section when you prepare the order for service and the bill 
of lading.
    (c) Charge or credit card payments:
    (1) If you agree to accept payment by charge or credit card, you 
must arrange with the individual shipper for the delivery of the 
household goods during the time your credit/collection department is 
open so you may seek approval of payment by the card issuer.
    (2) Paragraph (c)(1) of this section does not apply to you when you 
have equipped your motor vehicle(s) to process card transactions.
    (d) You may maintain a tariff setting forth nondiscriminatory rules 
governing collect-on-delivery service and the collection of collect-on-
delivery funds.
    (e) 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.


Sec.  375.219  May I extend credit to shippers?

    You may extend credit to shippers, but, if you do, it must be in 
accordance with Sec.  375.807.


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

    (a) You may provide in your tariff for the acceptance of charge or 
credit cards for the payment of freight charges. Accepting charge or 
credit card payments is different than extending credit to shippers in 
Sec. Sec.  375.219 and 375.807. Once you provide an estimate you are 
bound by the provisions in your tariff regarding payment as of the 
estimate date, until completion of any transaction that results from 
that estimate, unless otherwise agreed with a shipper under Sec.  
375.217(a).
    (b) You may accept charge or credit cards whenever shipments are 
transported under agreements and tariffs requiring payment by cash, 
certified check, money order, or a cashier's check.
    (c) If you allow an individual shipper to pay for a freight or 
expense bill by charge or credit card, you are deeming such payment to 
be the same as payment by cash, certified check, money order, or a 
cashier's check.
    (d) The charge or credit card plans you participate in must be 
identified in your tariff rules as items permitting the acceptance of 
the charge or credit cards.
    (e) If an individual shipper causes a charge or credit 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) Liability insurance.
    (b) If you sell liability insurance, you must follow the 
requirements in Sec.  375.303.


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

    (a) You, your employee, or an agent, may sell, offer to sell, or 
procure liability insurance coverage for loss or damage to shipments of 
any individual shippers only when the individual shipper releases the 
shipment for transportation at a value not exceeding 60 cents per pound 
($1.32 per kilogram) per article.
    (b) You may offer, sell, or procure any type of insurance policy on 
behalf of the individual shipper covering loss or damage in excess of 
the specified carrier liability.
    (c) You must issue to the individual shipper a policy or other 
appropriate evidence of the insurance the individual shipper purchased.
    (d) 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.
    (e) You must issue policies written in plain English.
    (f) You must clearly specify the nature and extent of coverage 
under the policy.
    (g) 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

[[Page 35095]]

claims to recover loss or damage attributed to you.
    (h) You must provide in your tariff for the provision of selling, 
offering to sell, or procuring liability insurance coverage. The tariff 
must also provide for the base transportation charge, including your 
assumption 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) You must specify the form of payment you and your agent will 
honor at delivery. Payment forms may include, but are not limited to, 
cash, a certified check, a money order, a cashier s check, a specific 
charge card such as American ExpressTM, a specific credit 
card such as VisaTM, or your credit as allowed by Sec.  
375.807.
    (c) For non-binding estimates, you must provide your reasonably 
accurate 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.
    (d) If you provide a shipper with an estimate based on volume that 
will later be converted to a weight-based rate, you must provide the 
shipper an explanation in writing of the formula used to calculate the 
conversion to weight. You must specify the final charges will be based 
on actual weight and services subject to the 110 percent rule at 
delivery.
    (e) You must determine charges for any accessorial services such as 
elevators, long carries, etc., before preparing the order for service 
and the bill of lading for binding or non-binding estimates. If you 
fail to ask the shipper about such charges and fail to determine such 
charges before preparing the order for service and the bill of lading, 
you must deliver the goods and bill the shipper after 30 days for the 
additional charges.
    (f) 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.
    (g) Before loading a household goods shipment, and upon mutual 
agreement of both you and the individual shipper, you may amend an 
estimate of charges. You may not amend the estimate after loading the 
shipment.


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 
nine 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 
attachment to be made an integral part of the bill of lading contract.
    (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. If an 
agreement cannot be reached as to the price or service requirements for 
the additional goods or services, you are not required to service the 
shipment. However, if you do service the shipment, 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.
    (7) If you believe additional services are necessary to properly 
service a shipment after the household goods are in-transit, you must 
inform the individual shipper what the additional services are before 
performing those services. You must allow the shipper at least one hour 
to determine whether he/she wants the additional services performed. If 
the individual shipper agrees to pay for the additional services, you 
must execute a written attachment to be made an integral part of the 
bill of lading contract and have the individual shipper sign the 
written attachment. This may be done through fax transmissions. You 
must bill the individual shipper for the additional services after 30 
days after delivery. If the shipper does not agree to pay the 
additional services performed by the carrier after the shipment is 
picked up, the carrier should perform the additional services as 
required to complete the delivery and bill the individual shipper for 
the additional services after 30 days after delivery.
    (8) If the individual shipper requests additional services after 
the household goods are in-transit, you must inform the individual 
shipper additional charges will be billed. You must require full 
payment at destination of the original binding estimate only. You must 
bill for the payment of the balance of any remaining charges after 30 
days after delivery. For example, if your binding estimate to an 
individual shipper estimated total charges at delivery as $1,000, but 
your actual charges at destination are $1,500, you must deliver the 
shipment upon payment of $1,000. You then must issue freight or expense 
bills after 30 days after delivery for the remaining $500.
    (9) 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 part 370 
of this chapter.
    (b) If you do not provide a binding estimate to an individual 
shipper, you

[[Page 35096]]

must provide a non-binding estimate to the individual shipper in 
accordance with Sec.  375.405.
    (c) You must retain a copy of the binding estimate for each move 
you perform for at least one year from the date you made the estimate 
and keep it as an attachment to be made an integral part of the bill of 
lading contract.


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

    (a) If you do not provide a binding estimate to an individual 
shipper in accordance with Sec.  375.403, you must provide a non-
binding written estimate to the individual shipper.
    (b) If you provide a non-binding estimate to an individual shipper, 
you must provide your reasonably accurate estimate of the approximate 
costs the individual shipper should expect to pay for the 
transportation and services of the shipment. You must comply with the 
following ten requirements:
    (1) You must provide reasonably accurate non-binding estimates 
based upon the estimated weight or volume of the shipment and services 
required. If you provide a shipper with an estimate based on volume 
that will later be converted to a weight-based rate, you must provide 
the shipper an explanation in writing of the formula used to calculate 
the conversion to weight.
    (2) You must explain to the individual shipper final charges 
calculated for shipments moved on non-binding estimates will be those 
appearing in your tariffs applicable to the transportation. You must 
explain to the individual shipper these final charges may exceed the 
approximate costs appearing in your estimate.
    (3) You must furnish non-binding estimates without charge and in 
writing to the individual shipper or other person responsible for 
payment of the freight charges.
    (4) You must retain a copy of each non-binding estimate as an 
attachment to be made an integral part of the bill of lading contract.
    (5) You must clearly indicate on the face of a non-binding 
estimate, the estimate is not binding upon you and the charges shown 
are the approximate charges to be assessed for the services identified 
in the estimate. The estimate must clearly state that the shipper may 
not be required to pay more than 110 percent of the non-binding 
estimate at the time of delivery.
    (6) You must clearly describe on the face of a non-binding estimate 
the entire shipment and all services you are providing.
    (7) If it appears an individual shipper has tendered additional 
household goods or requires additional services not identified in the 
non-binding estimate, you are not required to honor the estimate. If an 
agreement cannot be reached as to the price or service requirements for 
the additional goods or services, you are not required to service the 
shipment. However, if you do service the shipment, before loading the 
shipment, you must do one of the following two things:
    (i) Reaffirm your non-binding estimate.
    (ii) Negotiate a revised written non-binding estimate listing the 
additional household goods or services.
    (8) Once you load a shipment, failure to execute a new non-binding 
estimate signifies you have reaffirmed the original non-binding 
estimate. You may not collect more than 110 percent of the amount of 
the original non-binding estimate at destination.
    (9) If you believe additional services are necessary to properly 
service a shipment after the household goods are in-transit, you must 
inform the individual shipper what the additional services are before 
performing those services. You must allow the shipper at least one hour 
to determine whether he/she wants the additional services performed. If 
the individual shipper agrees to pay for the additional services, you 
must execute a written attachment to be made an integral part of the 
bill of lading contract and have the individual shipper sign the 
written attachment. This may be done through fax transmissions. You 
must bill the individual shipper for the additional services after 30 
days after delivery. If the shipper does not agree to pay the 
additional services performed by the carrier after the shipment is 
picked up, the carrier should perform the additional services as 
required to complete the delivery and bill the individual shipper for 
the additional services after 30 days after delivery.
    (10) If the individual shipper requests additional services after 
the household goods are in-transit, you must inform the individual 
shipper additional charges will be billed. You may require full payment 
at destination of no more than 110 percent of the original non-binding 
estimate. You must bill for the payment of the balance of any remaining 
charges after 30 days after delivery. For example, if your non-binding 
estimate to an individual shipper estimated total charges at delivery 
as $1,000, but your actual charges at destination are $1,500, you must 
deliver the shipment upon payment of $1,100 (110 percent of the 
estimated charges) and forego demanding immediate payment of the 
balance. You then must issue a freight or expense bill for the 
remaining $400 after the 30-day period expires.
    (c) If you furnish a non-binding estimate, you must enter the 
estimated charges upon the order for service and upon the bill of 
lading.
    (d) You must retain a copy of the non-binding estimate for each 
move you perform for at least one year from the date you made the 
estimate and keep it as an attachment to be made an integral part of 
the bill of lading contract.


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

    (a) If an individual shipper pays you at least 110 percent of the 
approximate costs of a non-binding estimate on a collect-on-delivery 
shipment, you must relinquish possession of the shipment at the time of 
delivery. You must accept the form of payment agreed to at the time of 
estimate, unless the shipper agrees in writing to a change in the form 
of payment.
    (b) Failure to relinquish possession of a shipment upon an 
individual shipper's offer to pay 110 percent of the estimated charges 
constitutes a failure to transport the shipment with ``reasonable 
dispatch'' and subjects you to cargo delay claims pursuant to part 370 
of this chapter.
    (c) You must defer billing for the payment of the balance of any 
remaining charges for a period of 30 days following the date of 
delivery. After this 30-day period, you may demand payment of the 
balance of any remaining charges, as explained in Sec.  375.405.


Sec.  375.409  May household goods brokers provide estimates?

    A household goods broker must not provide an individual shipper 
with an estimate of charges for the transportation of household goods 
unless there is a written agreement between the broker and you, the 
carrier, adopting the broker's estimate as your own estimate. If you 
make such an agreement with a broker, you must ensure compliance with 
all requirements of this part pertaining to estimates, including the 
requirement that you must relinquish possession of the shipment if the 
shipper pays you 110 percent of a non-binding estimate at the time of 
delivery.

[[Page 35097]]

Subpart E--Pick Up of Shipments of Household Goods

Before Loading


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

    (a) Before you receive a shipment of household goods you will move 
for an individual shipper, you must prepare an order for service. The 
order for service must contain the information described in the 
following 15 items:
    (1) Your name and address and the FMCSA U.S. DOT number assigned to 
the mover who is responsible for performing the service.
    (2) The individual shipper's name, address and, if available, its 
telephone number(s).
    (3) The name, address, and telephone number of the delivering 
mover's office or agent located at or nearest to the destination of the 
shipment.
    (4) A telephone number where the individual shipper/consignee may 
contact you or your designated agent.
    (5) One of the following three entries must be on the order for 
service:
    (i) The agreed pickup date and agreed delivery date of the move.
    (ii) The agreed period(s) of the entire move.
    (iii) If you are transporting the shipment on a guaranteed service 
basis, the guaranteed dates or periods for pickup, transportation, and 
delivery. You must enter any penalty or per diem requirements upon the 
agreement under this item.
    (6) The names and addresses of any other motor carriers, when 
known, who will participate in interline transportation of the 
shipment.
    (7) The form of payment you and your agents will honor at delivery. 
The payment information must be the same that was entered on the 
estimate.
    (8) The terms and conditions for payment of the total charges, 
including notice of any minimum charges.
    (9) The maximum amount you will demand at the time of delivery to 
obtain possession of the shipment, when you transport on a collect-on-
delivery basis.
    (10) The Surface Transportation Board's required released rates 
valuation statement, and the charges, if any, for optional valuation 
coverage. The released rates may be increased annually by the carrier 
based on the Department of Commerce's Cost of Living Adjustment.
    (11) A complete description of any special or accessorial services 
ordered and minimum weight or volume charges applicable to the 
shipment, subject to the following two conditions:
    (i) If you provide service for individual shippers on rates based 
upon the transportation of a minimum weight or volume, you must 
indicate on the order for service the minimum weight- or volume-based 
rates, and the minimum charges applicable to the shipment.
    (ii) If you do not indicate the minimum rates and charges, your 
tariff must provide you will compute the final charges relating to such 
a shipment based upon the actual weight or volume of the shipment.
    (12) Any identification or registration number you assign to the 
shipment.
    (13) For non-binding estimates, your reasonably accurate estimate 
of the amount of the charges, the method of payment of total charges, 
and the maximum amount (no more than 110 percent of the non-binding 
estimate) you will demand at the time of delivery to relinquish 
possession of the shipment.
    (14) For binding estimates, the amount of charges you will demand 
based upon the binding estimate and the terms of payment under this 
estimate.
    (15) Whether the individual shipper requests notification of the 
charges before delivery. The individual shipper must provide you with 
the telephone number(s) or address(es) where you will transmit the 
notification.
    (b) You, your agent, or your driver must inform the individual 
shipper if you reasonably expect a special or accessorial service is 
necessary to safely transport a shipment. You must refuse to accept the 
shipment when you reasonably expect a special or accessorial service is 
necessary to safely transport a shipment and the individual shipper 
refuses to purchase the special or accessorial service. You must make a 
written note if the shipper refuses any special or accessorial services 
that you reasonably expect to be necessary.
    (c) You and the individual shipper must sign the order for service. 
You must provide a dated copy of the order for service to the 
individual shipper at the time you sign the order.
    (d)(1) You may provide the individual shipper with blank or 
incomplete estimates, orders for service, bills of lading, or any other 
blank or incomplete documents pertaining to the move.
    (2) You are forbidden from requiring the individual shipper to sign 
any blank or incomplete estimates, orders for service, bills of lading, 
or any other blank or incomplete documents pertaining to the move.
    (e) You must provide the individual shipper the opportunity to 
rescind the order for service without any penalty for a three-day 
period after the shipper signs the order for service, if the shipper 
scheduled the shipment to be loaded more than three days after signing 
the order.
    (f) Before loading the shipment, and upon mutual agreement of both 
you and the individual shipper, you may amend an order for service.
    (g) You must retain a copy of the order for service for each move 
you perform for at least one year from the date you made the order for 
service and keep it as an attachment to be made an integral part of the 
bill of lading contract.


Sec.  375.503  Must I write up an inventory?

    (a) You must prepare a written, itemized inventory for each 
shipment of household goods you transport for an individual shipper. 
The inventory must identify every carton and every uncartoned item that 
is included in the shipment. When you prepare the inventory, an 
identification number that corresponds to the inventory must be placed 
on each article that is included in the shipment.
    (b) You must prepare the inventory before the shipment is loaded in 
the vehicle for transportation in a manner that provides the individual 
shipper with the opportunity to observe and verify the accuracy of the 
inventory if he or she so requests.
    (c) You must furnish a complete copy of the inventory to the 
individual shipper before beginning to load the shipment. A copy of the 
inventory, signed by both you and the individual shipper, must be 
provided to the shipper, together with a copy of the bill of lading, 
before you begin to load the shipment.
    (d) Upon delivery, you must provide the individual shipper with the 
opportunity to observe and verify that the same articles are being 
delivered and the condition of those articles. You must also provide 
the individual shipper the opportunity to note in writing any missing 
articles and the condition of any damaged or destroyed articles. In 
addition, you must also provide the shipper with a copy of all such 
notations.
    (e) You must retain inventories for each move you perform for at 
least one year from the date you made the inventory and keep it as an 
attachment to be made an integral part of the bill of lading contract.


Sec.  375.505  Must I write up a bill of lading?

    (a) You must issue a bill of lading. The bill of lading must 
contain the terms and conditions of the contract. You must furnish a 
complete copy of the bill of lading to the individual shipper before 
beginning to load the shipment.

[[Page 35098]]

    (b) On a bill of lading, you must include the following 14 items:
    (1) Your name and address, or the name and address of the motor 
carrier issuing the bill of lading.
    (2) The names and addresses of any other motor carriers, when 
known, who will participate in transportation of the shipment.
    (3) The name, address, and telephone number of your office (or the 
office of your agent) where the individual shipper can contact you in 
relation to the transportation of the shipment.
    (4) The form of payment you and your agents will honor at delivery. 
The payment information must be the same that was entered on the 
estimate and order for service.
    (5) When you transport on a collect-on-delivery basis, the name, 
address, and if furnished, the telephone number of a person to notify 
about the charges.
    (6) 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 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.
    (7) 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.
    (8) The actual date of pickup.
    (9) The company or carrier identification number of the vehicle(s) 
upon which you load the individual shipper's shipment.
    (10) The terms and conditions for payment of the total charges, 
including notice of any minimum charges.
    (11) The maximum amount you will demand at the time of delivery to 
obtain possession of the shipment, when you transport under a collect-
on-delivery basis.
    (12) The Surface Transportation Board's required released rates 
valuation statement, and the charges, if any, for optional valuation 
coverage. The released rates may be increased annually by the carrier 
based on the Department of Commerce's Cost of Living Adjustment.
    (13) 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.
    (14) Each attachment to the bill of lading. Each attachment is an 
integral part of the bill of lading contract. The following three items 
must be added as an attachment to the bill of lading.
    (i) The binding or non-binding estimate.
    (ii) The order for service.
    (iii) The inventory.
    (c) A copy of the bill of lading must accompany a shipment at all 
times while in your (or your agent's) possession. When you load the 
shipment upon a vehicle for transportation, the bill of lading must be 
in the possession of the driver responsible for the shipment.
    (d) You must retain bills of lading for each move you perform for 
at least one year from the date you created the bill of lading.

Weighing the Shipment


Sec.  375.507  Must I determine the weight of a shipment?

    (a) When you transport household goods on a non-binding estimate 
dependent upon the shipment weight, you must determine the weight of 
each shipment transported before the assessment of any charges.
    (b) You must weigh the shipment upon a certified scale.
    (c) You must provide a written explanation of volume to weight 
conversions, when you provide an estimate by volume and convert the 
volume to weight.


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

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


Sec.  375.511  May I use an alternative method for shipments weighing 
3,000 pounds or less?

    For shipments weighing 3,000 pounds or less (1,362 kilograms or 
less), you may weigh the shipment upon a platform or warehouse 
certified scale before loading for transportation or after unloading.


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

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


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

    (a) If an individual shipper elects not to observe a weighing, the 
shipper is presumed to have waived that right.
    (b) If an individual shipper elects not to observe a re-weighing, 
the shipper must waive that right in writing. The individual shipper 
may send the writing via fax, e-mail, or any other electronic means.
    (c) Waiver of the right to observe a weighing or re-weighing does 
not affect any other rights of the individual shipper under this part 
or otherwise.


Sec.  375.517  May an individual shipper demand re-weighing?

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

[[Page 35099]]

Sec.  375.519  Must I obtain weight tickets?

    (a) You must obtain weight tickets whenever we require you to weigh 
the shipment in accordance with this subpart. You must obtain a 
separate weight ticket for each weighing. The weigh master must sign 
each weight ticket. Each weight ticket must contain the following six 
items:
    (1) The complete name and location of the scale.
    (2) The date of each weighing.
    (3) The identification of the weight entries as being the tare, 
gross, or net weights.
    (4) The company or carrier identification of the vehicle.
    (5) The last name of the individual shipper as it appears on the 
bill of lading.
    (6) The carrier's shipment registration or bill of lading number.
    (b) When both weighings are performed on the same scale, one weight 
ticket may be used to record both weighings.
    (c) As part of the file on the shipment, you must retain the 
original weight ticket or tickets relating to the determination of the 
weight of a shipment.
    (d) All freight bills you present to an individual shipper must 
include true copies of all weight tickets obtained in the determination 
of the shipment weight in order to collect any shipment charges 
dependent upon the weight transported.


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

    (a) You must comply with a request of an individual shipper of a 
shipment being transported on a collect-on-delivery basis who 
specifically requests notification of the actual weight or volume and 
charges on a shipment. This requirement is conditioned upon the 
individual shipper supplying you with an address or telephone number 
where the individual shipper will receive the communication. You must 
make your notification by telephone, telegram, or in person.
    (b) The individual shipper must receive your notification at least 
one full 24-hour day before any tender of the shipment for delivery, 
excluding Saturdays, Sundays and Federal holidays.
    (c) You may disregard the 24-hour notification requirement on 
shipments in any one of the following three circumstances:
    (1) The shipment will be back weighed (i.e., weighed at 
destination).
    (2) Pickup and delivery encompass two consecutive weekdays, if the 
individual shipper agrees.
    (3) The shipment is moving under a non-binding estimate and the 
maximum payment required at time of delivery is 110 percent of the 
estimated charges, but only if the individual shipper agrees to waive 
the 24-hour notification requirement.

Subpart F--Transportation of Shipments


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

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


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

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


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

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


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

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


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

    (a) If you are holding goods for storage-in-transit (SIT) and the 
period of time is about to expire, you must comply with this section.
    (b) You must notify the individual shipper, in writing of the 
following four items:
    (1) The date of conversion to permanent storage.
    (2) The existence of a nine-month period after the date of 
conversion to permanent storage when the individual shipper may file 
claims against you for loss or damage occurring to the goods in transit 
or during the storage-in-transit period.
    (3) The fact your liability is ending.
    (4) The fact the individual shipper's property will be subject to 
the rules, regulations, and charges of the warehouseman.
    (c) You must make this notification at least 10 days before the 
expiration date of either one of the following two periods:
    (1) The specified period of time when the goods are to be held in 
storage.
    (2) The maximum period of time provided in your tariff for storage-
in-transit.
    (d) You must notify the individual shipper by facsimile 
transmission,

[[Page 35100]]

overnight courier, e-mail, or certified mail, return receipt requested.
    (e) If you are holding household goods in storage-in-transit for a 
period of time less than 10 days, you must give notification to the 
individual shipper of the information specified in paragraph (b) of 
this section one day before the expiration date of the specified time 
when the goods are to be held in such storage.
    (f) You must maintain a record of notifications as part of the 
records of the shipment.
    (g) Your failure or refusal to notify the individual shipper will 
automatically effect a continuance of your carrier liability according 
to the applicable tariff provisions with respect to storage-in-transit, 
until the end of the day following the date when you actually gave 
notice.

Subpart G--Delivery of Shipments


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

    (a) Your delivery receipt or shipping document must not contain any 
language purporting to release or discharge you or your agents from 
liability.
    (b) The delivery receipt may include a statement the property was 
received in apparent good condition except as noted on the shipping 
documents.


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

    (a) On a binding estimate, the maximum amount is the exact estimate 
of the charges.
    (b) On a non-binding estimate, the maximum amount is 110 percent of 
the non-binding estimate of the charges.


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

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


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

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


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

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

Subpart H--Collection of Charges


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

    (a) This subpart applies to all shipments subject to binding 
estimates.
    (b) This subpart does not apply to collect-on-delivery shipments 
subject to the 110 percent rule for non-binding estimates. You may 
expect payment of not more than 110 percent of the estimated charges on 
a collect-on-delivery non-binding estimate at the time of delivery. You 
must bill the individual shipper for any balance due not sooner than 30 
days after delivery.


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

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


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

    On ``collect-on-delivery'' shipments, you must present your freight 
bill for all transportation charges within 15 days as required by Sec.  
375.807.


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

    (a) You must present a freight bill within 15 days (excluding 
Saturdays, Sundays, and Federal holidays) of the date of delivery of a 
shipment at its destination.
    (b) The credit period must be seven days (including Saturdays, 
Sundays, and Federal holidays).
    (c) You must provide in your tariffs the following four things:
    (1) You must automatically extend the credit period to a total of 
30 calendar days for any shipper who has not paid your freight bill 
within the 7-day period.
    (2) You will assess a service charge to each individual shipper 
equal to one percent of the amount of the freight bill,

[[Page 35101]]

subject to a $20 minimum charge, for the extension of the credit 
period. You will assess the service charge for each 30-day extension 
the charges go unpaid.
    (3) You must deny credit to any shipper who fails to pay a duly-
presented freight bill within the 30-day period. You may grant credit 
to the individual shipper when the individual shipper satisfies he/she 
will promptly pay all future freight bills duly presented.
    (4) You must ensure all payments of freight bills are strictly in 
accordance with the rules and regulations of this part for the 
settlement of your rates and charges.

Subpart I--Penalties


Sec.  375.901  What penalties do we impose for violations of this part?

    The penalty provisions of 49 U.S.C. Chapter 149, Civil and Criminal 
Penalties apply to this part. These penalties do not overlap. 
Notwithstanding these civil penalties, nothing in this section shall 
deprive any holder of a receipt or a bill of lading any remedy or right 
of action under existing law.

Appendix A to Part 375--Your Rights and Responsibilities When You Move

    You must furnish this document to prospective individual 
shippers as required by Sec.  375.213. The text as it appears in 
this appendix may be reprinted in a form and manner chosen by you, 
provided it complies with Sec.  375.213(b)(2) and (b)(3). You do not 
have to italicize titles of sections.

YOUR RIGHTS AND RESPONSIBILITIES WHEN YOU MOVE

    OMB No. 2126-------.

Furnished By Your Mover, As Required By Federal Law

    Authority: 49 U.S.C. 13301, 13704, 13707, and 14104; 49 CFR 
1.73.

What is Included in This Pamphlet?

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

Why Was I Given This Pamphlet?

What Are The Most Important Points I Should Remember From This 
Pamphlet?

What If I Have More Questions?

Subpart A--General Requirements

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

Subpart B--Before Requesting Services From Any Mover

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

Subpart C--Service Options Provided

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

Subpart D--Estimating Charges

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

Subpart E--Pickup of My Shipment of Household Goods

    Must my mover write up an order for service?
    Must my mover write up an inventory of the shipment?
    Must my mover write up a bill of lading?
    Should I reach an agreement with my mover about pickup and 
delivery times?
    Must my mover determine the weight of my shipment?
    How must my mover determine the weight of my shipment?
    What must my mover do if I want to know the actual weight or 
charges for my shipment before delivery?

Subpart F--Transportation of My Shipment

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

Subpart G--Delivery of My Shipment

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

Subpart H--Collection of Charges

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

Subpart I--Resolving Disputes with My Mover

    What may I do to resolve disputes with my mover?

Why Was I Given This Pamphlet?

    The Federal Motor Carrier Safety Administration's (FMCSA) 
regulations protect consumers on interstate moves and define the 
rights and responsibilities of consumers and household goods 
carriers.
    The household goods carrier (mover) gave you this booklet to 
provide information about your rights and responsibilities as an 
individual shipper of household goods. Your primary responsibility 
is to select a reputable household goods carrier, ensure that you 
understand the terms and conditions of the contract, and understand 
and pursue the remedies that are available to you when problems 
arise. You should talk to your mover if you have further questions. 
The mover will also furnish you with another booklet describing its 
procedure for handling your questions and complaints. The other 
booklet will include a telephone number you can call to obtain 
additional information about your move.

What Are the Most Important Points I Should Remember From This 
Pamphlet?

    1. Movers must give written estimates.
    2. Movers may give binding estimates.
    3. Non-binding estimates are not always accurate; actual charges 
may exceed the estimate.
    4. You should not sign blank or incomplete documents or allow 
anyone representing you to do so.
    5. You may request from the mover the availability of guaranteed 
pick up and delivery dates.
    6. Be sure you understand the mover's responsibility for loss or 
damage, and request an explanation of the difference between 
valuation and actual insurance.
    7. You have the right to be present each time your shipment is 
weighed.
    8. You may request a re-weigh of your shipment.
    9. If you agree to move under a non-binding estimate, you should 
confirm with your mover--in writing--the method of payment at 
delivery as cash, certified check, cashier's check, money order, or 
credit card.
    10. Movers must offer a dispute settlement program as an 
alternative means of settling loss or damage claims. ASK YOUR MOVER 
FOR DETAILS.

[[Page 35102]]

    11. You should ask the person you speak to whether he/she works 
for the actual mover or a household goods broker. A household goods 
broker only arranges for the transportation. A household goods 
broker must not represent itself as a mover. A household goods 
broker does not own trucks of its own. The broker is required to 
find an authorized mover to provide the transportation. You should 
know a household goods broker generally has no authority to provide 
you an estimate on behalf of a specific mover. If a household goods 
broker provides you an estimate, it may not be binding on the actual 
mover and you may have to pay the actual charges the mover incurs. A 
household goods broker is not responsible for loss or damage.
    12. You may request complaint information about movers from the 
Federal Motor Carrier Safety Administration under the Freedom of 
Information Act. You may be assessed a fee to obtain this 
information. See 49 CFR part 7 for the schedule of fees.
    13. You should seek estimates from at least three different 
movers. You should not disclose any information to the different 
movers about their competitors, as it may affect the accuracy of 
their estimates.

What If I Have More Questions?

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

Subpart A--General Requirements

    The primary responsibility for your protection lies with you in 
selecting a reputable household goods carrier, ensuring you 
understand the terms and conditions of your contract with your 
mover, and understanding and pursuing the remedies that are 
available to you when problems arise.

Who Must Follow the Regulations?

    The regulations inform motor carriers engaged in the interstate 
transportation of household goods (movers) what standards the movers 
must follow when offering services to you. You, an individual 
shipper, are not directly subject to the regulations. However, your 
mover may be required by the regulations to force you to pay on 
time. The regulations only apply to your mover when the mover 
transports your household goods by motor vehicle in interstate 
commerce, i.e., when you are moving from one State to another. The 
regulations do not apply when your interstate move takes place 
within a single commercial zone. A commercial zone is roughly 
equivalent to the local metropolitan area of a city or town. For 
example, a move between Brooklyn, NY, and Hackensack, NJ, would be 
considered to be within the New York City commercial zone and would 
not be subject to these regulations. Commercial zones are defined in 
49 CFR part 372.

What Definitions Are Used in This Pamphlet?

    Accessorial (additional) services--These are services such as 
packing, appliance servicing, unpacking, or piano stair carries you 
request to be performed (or are necessary because of landlord 
requirements or other special circumstances). Charges for these 
services are in addition to the transportation charges.
    Advanced charges--These are charges for services not performed 
by the mover, but by someone else. A professional, craftsman, or 
other third party may perform these services at your request. The 
mover pays for these services and adds the charges to your bill of 
lading charges.
    Advertisement--This is any communication to the public in 
connection with an offer or sale of any interstate household goods 
transportation service. This will include written or electronic 
database listings of your mover's name, address, and telephone 
number in an on-line database. This excludes listings of your 
mover's name, address, and telephone number in a telephone directory 
or similar publication. However, Yellow Pages advertising is 
included within the definition.
    Agent--A local moving company authorized to act on behalf of a 
larger, national company.
    Appliance service--The preparation of major electrical 
appliances to make them safe for shipment. Charges for these 
services are in addition to the transportation charges.
    Bill of lading--The receipt for your goods and the contract for 
its transportation.
    Carrier--The mover transporting your household goods.
    Cash on delivery (COD)--This means payment is required at the 
time of delivery at the destination residence (or warehouse).
    Certified scale--Any scale designed for weighing motor vehicles, 
including trailers or semi-trailers not attached to a tractor, and 
certified by an authorized scale inspection and licensing authority. 
A certified scale may also be a platform or warehouse type scale 
properly inspected and certified.
    Estimate, binding--This is an agreement made in advance with 
your mover. It guarantees the total cost of the move based upon the 
quantities and services shown on the estimate.
    Estimate, non-binding--This is what your mover believes the cost 
will be based upon the estimated weight of the shipment and the 
accessorial services requested. A non-binding estimate is not 
binding on the mover. The final charges will be based upon the 
actual weight of your shipment, the services provided, and the 
tariff provisions in effect.
    Expedited service--This is an agreement with the mover to 
perform transportation by a set date in exchange for charges based 
upon a higher minimum weight.
    Flight charge--An extra charge for carrying items up or down 
flights of stairs.
    Guaranteed pickup and delivery service--An additional level of 
service featuring guaranteed dates of service. Your mover will 
provide reimbursement to you for delays. This premium service is 
often subject to minimum weight requirements.
    High value article--These are items included in a shipment 
valued at more than $100 per pound ($220 per kilogram).
    Household goods as used in connection with transportation, means 
the personal effects or property used, or to be used, in a dwelling, 
when part of the equipment or supplies of the dwelling. 
Transportation of the household goods must be arranged and paid for 
by you or by another individual on your behalf. This may include 
items moving from a factory or store when you purchase them to use 
in your dwelling. You must request that these items be transported 
and you (or another individual on your behalf) must pay the 
transportation charges to the mover.
    Inventory--The detailed descriptive list of your household goods 
showing the number and condition of each item.
    Linehaul charges--The charges for the vehicle transportation 
portion of your move. These charges apply in addition to the 
accessorial service charges.
    Long carry--An added charge for carrying articles excessive 
distances between the mover's vehicle and your residence.
    May--An option. You or your mover may do something, but it is 
not a requirement.
    Mover--A motor carrier engaged in the transportation of 
household goods and its household goods agents.
    Must--A legal obligation. You or your mover must do something.
    Order for service--The document authorizing the mover to 
transport your household goods.
    Order (bill of lading) number--The number used to identify and 
track your shipment.
    Peak season rates--Higher linehaul charges applicable during the 
summer months.
    Pickup and delivery charges--Separate transportation charges 
applicable for transporting your shipment between the storage-in-
transit warehouse and your residence.
    Reasonable dispatch--The performance of transportation on the 
dates, or during the period of time, agreed upon by you and your 
mover and shown on the Order For Service/Bill of Lading. For 
example, if your mover deliberately withholds any shipment from 
delivery after you offer to pay the binding estimate or 110 percent 
of a non-binding estimate, your mover has not transported the goods 
with reasonable dispatch. The term ``reasonable dispatch'' excludes 
transportation provided under your mover's tariff provisions 
requiring guaranteed service dates. Your mover will have the 
defenses of force majeure, i.e., that the contract cannot be 
performed due to causes which are outside the control of the parties 
and could not be avoided by exercise of due care.
    Should--A recommendation. We recommend you or your mover do 
something, but it is not a requirement.
    Shuttle service--The use of a smaller vehicle to provide service 
to residences not accessible to the mover's normal linehaul 
vehicles.
    Storage-in-transit (SIT)--The temporary warehouse storage of 
your shipment pending further transportation. For example, you may 
need SIT if your new home is not quite ready

[[Page 35103]]

to occupy. You must specifically request SIT service. This may not 
exceed a total of 180 days of storage. You will be responsible for 
the added charges for SIT service, as well as the warehouse handling 
and final delivery charges.
    Surface Transportation Board--An agency within the Department of 
Transportation that regulates household good carrier tariffs among 
other responsibilities. The Surface Transportation Board's address 
is 1925 K Street NW., Washington, DC 20423-0001 Tele. 202-565-1674.
    Tariff--An issuance (in whole or in part) containing rates, 
rules, regulations, classifications or other provisions. The Surface 
Transportation Board requires a tariff contain three specific items. 
First, an accurate description of the services the mover offers to 
the public. Second, the specific applicable rates (or the basis for 
calculating the specific applicable rates) and service terms for 
services offered to the public. Finally, the mover's tariff must be 
arranged in a way that allows you to determine the exact rate(s) and 
service terms applicable to your shipment.
    Valuation--The degree of ``worth'' of the shipment. The 
valuation charge compensates the mover for assuming a greater degree 
of liability than is provided for in its base transportation 
charges.
    Warehouse handling--An additional charge applicable each time 
SIT service is provided. This charge compensates the mover for the 
physical placement and removal of items within the warehouse.
    We, Us, and Our--The Federal Motor Carrier Safety Administration 
(FMCSA).
    You and Your--You are an individual shipper of household goods. 
You are a consignor or consignee of a household goods shipment and 
your mover identifies you as such in the bill of lading contract. 
You own the goods being transported and you pay the transportation 
charges to the mover.
    Where may other terms used in this pamphlet be defined? You may 
find other terms used in this pamphlet defined in 49 U.S.C. 13102. 
The statute controls the definitions in this pamphlet. If terms are 
used in this pamphlet and the terms are neither defined here nor in 
49 U.S.C. 13102, the terms will have the ordinary practical meaning 
of such terms.

Subpart B--Before requesting services from any mover

What Is My Mover's Normal Liability for Loss or Damage When My Mover 
Accepts Goods From Me?

    In general, your mover is legally liable for loss or damage if 
it happens during performance of any transportation of household 
goods and all related services identified on your mover's lawful 
bill of lading.
    Your mover is liable for loss of, or damage to, any household 
goods to the extent provided in the current Surface Transportation 
Board's Released Rates Order. You may obtain a copy of the current 
Released Rates Order by contacting the Surface Transportation Board 
at the address in the definition of the Surface Transportation 
Board. The rate may be increased annually by your mover based on the 
Department of Commerce's Cost of Living Adjustment. Your mover may 
have additional liability if your mover sells liability insurance to 
you.
    All moving companies are required to assume liability for the 
value of the goods transported. However, there are different levels 
of liability, and you should be aware of the amount of protection 
provided and the charges for each option.
    Basically, most movers offer two different levels of liability 
(options 1 and two, below) under the terms of their tariffs and the 
Surface Transportation Board's Released Rates Orders. These orders 
govern the moving industry.

Option 1: Released Value

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

Option 2: Full Value Protection (FVP)

    Under this option, the mover is liable for the replacement value 
of lost or damaged goods (as long as it doesn't exceed the total 
declared value of the shipment). If you elect to purchase full value 
protection, when your mover loses, damages or destroys your 
articles, your mover must repair, replace with like items, or settle 
in cash at the current market replacement value, regardless of the 
age of the lost or damaged item. The minimum declared value of a 
shipment under this option is $5,000 or $4.00 times the actual total 
weight (in pounds) of the shipment, whichever is greater. For 
example, the minimum declared value for a 4,000-pound (1,814.4-
kilogram) shipment would be $16,000. Your mover may offer you FVP 
with a $250 or $500 deductible, or with no deductible at all. The 
amount of the deductible will affect the cost of your FVP coverage. 
The $4.00 per pound minimum valuation rate may be increased annually 
by your mover based on changes in the household furnishings element 
of the Consumer Price Index established by the U.S. Department of 
Labor's Bureau of Labor Statistics.
    Unless you specifically agree to other arrangements, the mover 
must assume liability for the entire shipment based upon this 
option. The approximate cost for FVP is $8.50 for each $1000 of 
declared value; however, it may vary by mover. In the example above, 
the valuation charge for a shipment valued at $16,000 would be 
$136.00. This fee may be adjusted annually by your mover based on 
changes in the household furnishings element of the Consumer Price 
Index.
    Under these two options, movers are permitted to limit their 
liability for loss or damage to articles of extraordinary value, 
unless you specifically list these articles on the shipping 
documents. An article of extraordinary value is any item whose value 
exceeds $100 per pound ($220 per kilogram). Ask your mover for a 
complete explanation of this limitation before your move. It is your 
responsibility to study this provision carefully and to make the 
necessary declaration.
    These optional levels of liability are not insurance agreements 
governed by State insurance laws, but instead are authorized under 
Released Rates Orders of the Surface Transportation Board of the 
U.S. Department of Transportation.
    In addition to these options, some movers may also offer to 
sell, or procure for you, separate liability insurance from a third-
party insurance company when you release your shipment for 
transportation at the minimum released value of 60 cents per pound 
($1.32 per kilogram) per article (Option 1). This is not valuation 
coverage governed by Federal law, but optional insurance regulated 
under State law. If you purchase this separate coverage and your 
mover is responsible for loss or damage, the mover is liable only 
for an amount not exceeding 60 cents per pound ($1.32 per kilogram) 
per article, and the balance of the loss is recoverable from the 
insurance company up to the amount of insurance purchased. The 
mover's representative can advise you of the availability of such 
liability insurance and the cost.
    If you purchase liability insurance from or through your mover, 
the mover is required to issue a policy or other written record of 
the purchase and to provide you with a copy of the policy or other 
document at the time of purchase. If the mover fails to comply with 
this requirement, the mover becomes fully liable for any claim for 
loss or damage attributed to its negligence.

What Actions by Me Limit or Reduce My Mover's Normal Liability?

    Your actions may limit or reduce your mover's normal liability, 
under the following three circumstances:
    (1) You include perishable, dangerous, or hazardous materials in 
your household goods without your mover's knowledge.
    (2) You ship household goods valued at more than 60 cents per 
pound ($1.32 per kilogram) per article.
    (3) You fail to notify your mover in writing of articles valued 
at more than $100 per pound ($220 per kilogram). (If you do notify 
your mover, you will be entitled to full recovery up to the declared 
value of the article or articles, not to exceed the declared value 
of the entire shipment.)

What Are Dangerous or Hazardous Materials That May Limit or Reduce My 
Mover's Normal Liability?

    Federal law forbids you shipping hazardous materials in your 
household goods boxes or luggage without informing your mover. A 
violation can result in five years'

[[Page 35104]]

imprisonment and penalties of $250,000 or more (49 U.S.C. 5124). You 
may also lose or damage your household goods by fire, explosion, or 
contamination.
    If you offer hazardous materials to your mover, you are 
considered a hazardous materials shipper and must comply with the 
hazardous material requirements in 49 CFR parts 171, 172, and 173, 
including, but not limited to package labeling and marking, shipping 
papers, and emergency response information. Your mover must comply 
with 49 CFR parts 171, 172, 173, and 177 as a hazardous materials 
carrier.
    Hazardous materials include explosives, compressed gases, 
flammable liquids and solids, oxidizers, poisons, corrosives, and 
radioactive materials.
    Examples: Nail polish remover, paints, paint thinners, lighter 
fluid, gasoline, fireworks, oxygen bottles, propane cylinders, 
automotive repair and maintenance chemicals, and radio-
pharmaceuticals.
    There are special exceptions for small quantities (up to 70 
ounces total) of medicinal and toilet articles carried in your 
household goods and certain smoking materials carried on your 
person. For further information contact your mover.

May My Mover Have Agents?

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

What Items Must Be in My Mover's Advertisements?

    Your mover must publish and use only truthful, straightforward, 
and honest advertisements. Your mover must include certain 
information in all advertisements for all services (including any 
accessorial services incidental to or part of interstate 
transportation). Your mover must require each of its agents to 
include the same information in their advertisements. The 
information must include the following two pieces of information 
about your mover:
    (1) Name or trade name of the mover, under whose U.S. DOT number 
the advertised service will originate.
    (2) U.S. DOT number, assigned by the FMCSA authorizing your 
mover to operate. Your mover must display the information as: USDOT 
No. (assigned number).
    You should compare the name or trade name of the mover and its 
U.S. DOT number to the name and USDOT number on the sides of the 
truck(s) that arrive at your residence. The names and numbers should 
be identical. If the names and numbers are not identical, you should 
ask your mover immediately why the names and numbers are not 
identical. You should not allow the mover to load your household 
goods on its truck(s) until you obtain a satisfactory response from 
the mover's local agent. The discrepancies may warn of problems you 
will have later in your business dealings with this mover.

How Must My Mover Handle Complaints and Inquiries?

    All movers are expected to respond promptly to complaints or 
inquiries from you, the customer. Should you have a complaint or 
question about your move, you should first attempt to obtain a 
satisfactory response from the mover's local agent, the sales 
representative who handled the arrangements for your move, or the 
driver assigned to your shipment.
    If for any reason you are unable to obtain a satisfactory 
response from one of these persons, you should then contact the 
mover's principal office. When you make such a call, be sure to have 
available your copies of all the documents relating to your move. 
Particularly important is the number assigned to your shipment by 
your mover.
    Interstate movers are also required to offer neutral arbitration 
as a means of resolving consumer loss or damage disputes involving 
loss of, or damage to, household goods. Your mover is required to 
provide you with information regarding its arbitration program. You 
have the right to pursue court action under 49 U.S.C. 14704 to seek 
judicial redress directly and to not participate in your mover's 
arbitration program.
    All interstate moving companies are required to maintain a 
complaint and inquiry procedure to assist their customers. At the 
time you make the arrangements for your move, you should ask the 
mover's representative for a description of the mover's procedure, 
the telephone number to be used to contact the mover, and whether 
the mover will pay for such telephone calls. Your mover's procedure 
must include the following four things:
    (1) A communications system allowing you to communicate with 
your mover's principal place of business by telephone.
    (2) A telephone number.
    (3) A clear and concise statement about who must pay for 
complaint and inquiry telephone calls.
    (4) A written or electronic record system for recording all 
inquiries and complaints received from you by any means of 
communication.
    Your mover must give you a clear and concise written description 
of its procedure. You may want to test the system to see how it 
works for you.

Do I Have the Right To Inspect My Mover's Tariffs (Schedules of 
Charges) Applicable to My Move?

    Federal law requires your mover to advise you of your right to 
inspect your mover's tariffs (its schedules of rates or charges) 
governing your shipment. Mover tariffs are made a part of the 
contract of carriage (bill of lading) between you and the mover. You 
may inspect the tariff at the mover's facility, or, upon request, 
the mover will furnish you a free copy of any tariff provision 
containing the mover's rates, rules, or charges governing your 
shipment.
    Tariffs may include provisions limiting the mover's liability. 
This would generally be described in a section on declaring value on 
the bill of lading. A second tariff provision may set the periods 
for filing claims. This would generally be described in Section 6 on 
the reverse side of a bill of lading. A third tariff provision may 
reserve your mover's right to assess additional charges for 
additional services performed. For non-binding estimates, another 
tariff provision may base charges upon the exact weight of the goods 
transported. Your mover's tariff may contain other provisions that 
apply to your move. Ask your mover what they might be.

Must My Mover Have an Arbitration Program?

    Your mover must have an arbitration program for your use in 
resolving disputes concerning loss or damage to your household 
goods. You have the right not to participate in the arbitration 
program. You may pursue court action under 49 U.S.C. 14704 to seek 
judicial remedies directly. Your mover must establish and maintain 
an arbitration program with the following eleven minimum elements:
    (1) The arbitration program offered to you must prevent your 
mover from having any special advantage, because you live or work in 
a place distant from the mover's principal or other place of 
business.
    (2) Before your household goods are tendered for transport, your 
mover must provide notice to you of the availability of neutral 
arbitration, including the following three things.
    (a) A summary of the arbitration procedure.
    (b) Any applicable costs.
    (c) A disclosure of the legal effects of electing to use 
arbitration.
    (3) Upon your request, your mover must provide information and 
forms it considers necessary for initiating an action to resolve a 
dispute under arbitration.
    (4) Each person authorized to arbitrate must be independent of 
the parties to the dispute and capable of resolving such disputes 
fairly and expeditiously. Your mover must ensure the arbitrator is 
authorized and able to obtain from you or your mover any material or 
relevant information to carry out a fair and expeditious decision 
making process.
    (5) You must not be required to pay more than one-half of the 
arbitration's cost. The arbitrator may determine the percentage of 
payment of the costs for each party in the arbitration decision, but 
may not make you pay more than half.
    (6) Your mover must not require you to agree to use arbitration 
before a dispute arises.
    (7) You will be bound by arbitration for claims of $5,000 or 
less, if you request arbitration.
    (8) You will be bound by arbitration for claims of more than 
$5,000, only if you request arbitration and your mover agrees to it.
    (9) If you and your mover both agree, the arbitrator may provide 
for an oral presentation of a dispute by a party or representative 
of a party.
    (10) The arbitrator must render a decision within 60 days of 
receipt of written notification of the dispute, and a decision by an 
arbitrator may include any remedies appropriate under the 
circumstances.
    (11) The 60-day period may be extended for a reasonable period 
if you or your mover

[[Page 35105]]

fail to provide information in a timely manner.
    Your mover must produce and distribute a concise, easy-to-read, 
accurate summary of its arbitration program.

Must My Mover Inform Me About My Rights and Responsibilities Under 
Federal Law?

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

What Other Information Must My Mover Provide to Me?

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

How Must My Mover Collect Charges?

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

May My Mover Collect Charges Upon Delivery?

    Yes. Your mover must specify the form of payment acceptable at 
delivery when the mover prepares an estimate and order for service. 
The mover and its agents must honor the form of payment at delivery, 
except when you mutually agree to a change in writing. The mover 
must also specify the same form of payment when it prepares your 
bill of lading, unless you agree to a change. See also ``May my 
mover accept charge or credit cards for my payments?''
    You must prepare yourself to pay 10 percent more than the 
estimated amount, if your goods are moving under a non-binding 
estimate. Every collect-on-delivery shipper must have available 110 
percent of the estimate at the time of delivery.

May My Mover Extend Credit to Me?

    Extending credit to you is not the same as accepting your charge 
or credit card(s) as payment. Your mover may relinquish possession 
of freight before you pay its tariff charges, at its discretion. 
Your mover may extend credit to you in the amount of the tariff 
charges. Your mover must ensure you will pay its tariff charges 
within the credit period. If your mover extends credit to you, your 
mover becomes like a bank offering you a line of credit, whose size 
and interest rate are determined by your ability to pay its tariff 
charges within the credit period.
    The credit period must begin on the day following presentation 
of your mover's freight bill to you. Under Federal regulation, the 
standard credit period is 15 days, including Saturdays, Sundays, and 
Federal holidays, except your mover may establish its own standard 
credit period of up to 30 calendar days. Your mover may also 
establish a service charge for extending credit, including a minimum 
service charge. Your mover's service charge only applies when your 
payments are made after its established standard credit period. For 
example, if your mover's established standard credit period is less 
than the maximum 30-calendar-day period, your mover may extend 
credit including a service charge for the additional time up to the 
maximum 30-calendar-day period. If your mover extends such credit, 
you may elect to postpone payment, including the service charge 
until the end of the extended credit period.
    Your mover may establish additional service charges for payments 
made after the expiration of the 30-calendar-day period. If your 
mover establishes additional service charges, your mover must begin 
to compute service charges on the day following the last day of its 
standard credit period. If your mover establishes service charges, 
your mover must notify you about the following three things:
    (1) The only purpose of the service charge is to prevent you 
from having free use of the mover's funds.
    (2) The service charge encourages your prompt payment.
    (3) Your failure to pay within the credit period will require 
your mover to determine whether you will comply with the Federal-
household-goods-transportation credit regulations in good faith in 
the future before extending credit again.

May My Mover Accept Charge or Credit Cards for My Payments?

    Your mover may allow you to use a charge or credit card for 
payment of the freight charges. Your mover may accept charge or 
credit cards whenever you ship with it under an agreement and tariff 
requiring payment by cash or cash equivalents. Cash equivalents are 
a certified check, money order, or a cashier's check (a check drawn 
by a financial institution--bank, credit union, savings & loan, 
etc.--upon itself and signed by an officer of the financial 
institution).
    If your mover allows you to pay for a freight or expense bill by 
charge or credit card, your mover deems such a payment to be 
equivalent to payment by cash, certified check, or a cashier's 
check. It must note in writing on the order for service and the bill 
of lading whether you may pay for the transportation and related 
services using a charge or credit card. You should ask your mover at 
the time the estimate is written whether it will accept charge or 
credit cards at delivery.
    The mover must specify what charge or credit cards it will 
accept, such as American ExpressTM, 
DiscoverTM, MasterCard TM, or 
VisaTM. The mover must arrange with you for delivery 
during the time when the mover's credit or collection department is 
open so the mover may seek approval of the payment by the card 
issuer. The mover does not have to make these delivery arrangements 
with you when it has equipped its motor vehicle(s) with card 
transaction processing machines.
    If you cause a charge or credit card issuer to reverse a 
transaction, your mover may consider your action tantamount to 
forcing your mover to provide an involuntary extension of its 
credit.

Subpart C--Service Options Provided

What Service Options May My Mover Provide?

    Your mover may provide any service options it chooses. It is 
customary for movers to offer several price and service options.
    The total cost of your move may increase if you want additional 
or special services. Before you agree to have your shipment moved 
under a bill of lading providing special service, you should have a 
clear understanding with your mover what the

[[Page 35106]]

additional cost will be. You should always consider whether other 
movers may provide the services you require without requiring you to 
pay the additional charges.
    One service option is a Space Reservation. If you agree to have 
your shipment transported under a space reservation agreement, you 
will pay for a minimum number of cubic feet of space in the moving 
van regardless of how much space in the van your shipment actually 
occupies.
    A second option is Expedited Service. This aids you if you must 
have your shipments transported on or between specific dates when 
the mover could not ordinarily agree to do so in its normal 
operations.
    A third customary service option is Exclusive Use of a Vehicle. 
If for any reason you desire or require your shipment be moved by 
itself on the mover's truck or trailer, most movers will provide 
such service.
    Another service option is Guaranteed Service on or Between 
Agreed Dates. You enter into an agreement with the mover where the 
mover provides for your shipment to be picked up, transported to 
destination, and delivered on specific guaranteed dates. If the 
mover fails to provide the service as agreed, you are entitled to be 
compensated at a predetermined amount or a daily rate (per diem) 
regardless of the expense you actually might have incurred as a 
result of the mover's failure to perform.
    Before requesting or agreeing to any of these price and service 
options, be sure to ask the mover's representatives about the final 
costs you will pay.

Transport of Shipments on Two or More Vehicles

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

If My Mover Sells Liability Insurance Coverage, What Must My Mover Do?

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

Subpart D--Estimating Charges

Must My Mover Estimate the Transportation and Accessorial Charges for 
My Move?

    We require your mover to prepare a written estimate on every 
shipment transported for you. You are entitled to a copy of the 
written estimate when your mover prepares it. Your mover must 
provide you a written estimate of all charges, including 
transportation, accessorial, and advance charges. Your mover's 
``rate quote'' is not an estimate. You and your mover must sign the 
estimate of charges. Your mover must provide you with a dated copy 
of the estimate of charges at the time you sign the estimate.
    You should be aware that if you receive an estimate from a 
household goods broker, the mover is not required to accept the 
estimate. Be sure to obtain a written estimate from the mover if a 
mover tells you orally that it will accept the broker's estimate.
    Your mover must specify the form of payment it and its 
delivering agent will honor at delivery. Payment forms may include, 
but are not limited to, cash, a certified check, a money order, a 
cashier's check, a specific charge card such as American 
ExpressTM, a specific credit card such as 
VisaTM, or your mover's own credit.
    If your mover provides you with an estimate based on volume that 
will later be converted to a weight-based rate, the mover must 
provide you an explanation in writing of the formula used to 
calculate the conversion to weight. Your mover must specify that the 
final charges will be based on actual weight and services. Before 
loading your household goods, and upon mutual agreement of both you 
and your mover, your mover may amend an estimate of charges. Your 
mover may not amend the estimate after loading the shipment.
    A binding estimate is an agreement made in advance with your 
mover. It guarantees the total cost of the move based upon the 
quantities and services shown on your mover's estimate.
    A non-binding estimate is what your mover believes the total 
cost will be for the move, based upon the estimated weight of the 
shipment and the accessorial services requested. A non-binding 
estimate is not binding on your mover. Your mover will base the 
final charges upon the actual weight of your shipment, the services 
provided, and its tariff provisions in effect. You must prepare 
yourself to pay 10 percent more than the estimated amount at 
delivery.

How Must My Mover Estimate Charges Under the Regulations?

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

[[Page 35107]]

estimate, and you and your mover cannot reach an agreement, your 
mover may refuse to service the shipment. If your mover agrees to 
service the shipment, your mover must do one of the following three 
things:
    (a) Reaffirm the binding estimate.
    (b) Negotiate a revised written binding estimate listing the 
additional household goods or services.
    (c) Add an attachment to the contract, in writing, stating both 
of you will consider the original binding estimate as a non-binding 
estimate. You should read more below. This may seriously affect how 
much you may pay for the entire move.
    (5) Once your mover loads your shipment, your mover's failure to 
execute a new binding estimate or to agree with you to treat the 
original estimate as a non-binding estimate signifies it has 
reaffirmed the original binding estimate. Your mover may not collect 
more than the amount of the original binding estimate, except as 
provided in the next two paragraphs.
    (6) Your mover may believe additional services are necessary to 
properly service your shipment after your household goods are in-
transit. Your mover must inform you what the additional services are 
before performing those services. Your mover must allow you at least 
one hour to determine whether you want the additional services 
performed. Such additional services include carrying your furniture 
up additional stairs or using an elevator. If these services do not 
appear on your mover's estimate, your mover must deliver your 
shipment and bill you later for the additional services.
    If you agree to pay for the additional services, your mover must 
execute a written attachment to be made an integral part of the bill 
of lading and have you sign the written attachment. This may be done 
through fax transmissions. You will be billed for the additional 
services 30 days following the date of delivery.
    (7) If you add additional services after your household goods 
are in-transit, you will be billed for the additional services, but 
will only be expected to pay the full amount of the binding estimate 
to receive delivery. Thirty days after delivery, your mover must 
bill you for the balance of any remaining charges. For example, if 
your binding estimate shows total charges at delivery should be 
$1,000, but your actual charges at destination are $1,500, your 
mover must deliver the shipment upon payment of $1,000. The mover 
must bill you for the remaining $500 after 30 days after delivery.
    (8) Failure of your mover to relinquish possession of a shipment 
upon your offer to pay the binding estimate amount constitutes your 
mover's failure to transport a shipment with ``reasonable dispatch'' 
and subjects your mover to cargo delay claims pursuant to 49 CFR 
part 370.

Non-Binding Estimates

    Your mover is not permitted to charge you for giving a non-
binding estimate.
    A non-binding estimate is not a bid or contract. Your mover 
provides it to you to give you a general idea of the cost of the 
move, but it does not bind your mover to the estimated cost. You 
should expect the final cost to be more than the estimate. The 
actual cost will be in accordance with your mover's tariffs. Federal 
law requires your mover to collect the charges shown in its tariffs, 
regardless of what your mover writes in its non-binding estimates. 
This is why it is important to ask for copies of the mover's tariffs 
before deciding on a mover. The charges contained in mover's tariffs 
are essentially the same for the same weight shipment moving the 
same distance. If you obtain differing non-binding estimates from 
different movers, you must pay only the amount specified in your 
mover's tariff. Therefore, a non-binding estimate may have no effect 
on the amount that you will ultimately have to pay.
    You must prepare yourself to pay 10 percent more than the 
estimated amount at the time of delivery. Every collect-on-delivery 
shipper must have available 110 percent of the estimate at the time 
of delivery. If you order additional services from your mover after 
your goods are in transit, the mover will then bill you 30 days 
after delivery for any remaining charges.
    Non-binding estimates must be in writing and clearly describe 
the shipment and all services provided. Any time a mover provides 
such an estimate, the amount of the charges estimated must be on the 
order for service and bill of lading relating to your shipment. When 
you are given a non-binding estimate, do not sign or accept the 
order for service or bill of lading unless the amount estimated is 
entered on each form when prepared by the mover.
    Other requirements of non-binding estimates include the 
following nine elements:
    (1) Your mover must provide reasonably accurate non-binding 
estimates based upon the estimated weight of the shipment and 
services required.
    (2) Your mover must explain to you that all charges on shipments 
moved upon non-binding estimates will be those appearing in your 
mover's tariffs applicable to the transportation. If your mover 
provides a non-binding estimate of approximate costs, your mover is 
not bound by such an estimate.
    (3) Your mover must furnish non-binding estimates without charge 
and in writing to you.
    (4) Your mover must retain a copy of each non-binding estimate 
as an attachment to the bill of lading.
    (5) Your mover must clearly indicate on the face of a non-
binding estimate, the estimate is not binding upon your mover and 
the charges shown are the approximate charges to be assessed for the 
services identified in the estimate.
    (6) Your mover must clearly describe on the face of a non-
binding estimate the entire shipment and all services to be 
provided.
    (7) If, before loading your shipment, your mover believes you 
are tendering additional household goods or are requiring additional 
services not identified in the non-binding estimate, and you and 
your mover cannot reach an agreement, your mover may refuse to 
service the shipment. If your mover agrees to service the shipment, 
your mover must do one of the following two things:
    (a) Reaffirm the non-binding estimate.
    (b) Negotiate a revised written non-binding estimate listing the 
additional household goods or services.
    (8) Once your mover loads your shipment, your mover's failure to 
execute a new estimate signifies it has reaffirmed the original non-
binding estimate. Your mover may not collect more than 110 percent 
of the amount of this estimate at destination.
    (9) Your mover may believe additional services are necessary to 
properly service your shipment after your household goods are in-
transit. Your mover must inform you what the additional services are 
before performing those services. Your mover must allow you at least 
one hour to determine whether you want the additional services 
performed. Such additional services include carrying your furniture 
up additional stairs or using an elevator. If these services do not 
appear on your mover's estimate, your mover must deliver your 
shipment and bill you later for the additional services.
    If you agree to pay for the additional services, your mover must 
execute a written attachment to be made an integral part of the bill 
of lading and have you sign the written attachment. This may be done 
through fax transmissions. You will be billed for the additional 
services after 30 days after delivery.
    (10) If you add additional services after your household goods 
are in-transit, you will be billed for the additional services, but 
will only be expected to pay no more than 110 percent of the non-
binding estimate to receive delivery. Thirty days after delivery, 
your mover must bill you for the balance of any remaining charges. 
For example, if your non-binding estimate shows total charges at 
delivery should be $1,000, but your actual charges at destination 
are $1,500, your mover must deliver the shipment upon payment of 
$1,100. The mover must bill you for the remaining $400 after 30 days 
after delivery.
    If your mover furnishes a non-binding estimate, your mover must 
enter the estimated charges upon the order for service and upon the 
bill of lading.
    Your mover must retain a record of all estimates of charges for 
each move performed for at least one year from the date your mover 
made the estimate.

What Payment Arrangements Must My Mover Have in Place To Secure 
Delivery of My Household Goods Shipment?

    If your total bill is 110 percent of the non-binding estimate or 
less, the mover can require payment in full upon delivery. If the 
bill exceeds 110 percent of the non-binding estimate, your mover 
must relinquish possession of the shipment at the time of delivery 
upon payment of 110 percent of the estimated amount. Your mover 
should have specified its acceptable form of payment on the 
estimate, order for service, and bill of lading. Your mover's 
failure to relinquish possession of a shipment after you offer to 
pay 110 percent of the estimated charges constitutes its failure to 
transport the shipment with ``reasonable dispatch'' and subjects 
your mover to your cargo delay claims under 49 CFR part 370.
    Your mover must bill for the payment of the balance of any 
remaining charges after 30 days after delivery.

[[Page 35108]]

Subpart E--Pickup of My Shipment of Household Goods

Must My Mover Write Up an Order for Service?

    We require your mover to prepare an order for service on every 
shipment transported for you. You are entitled to a copy of the 
order for service when your mover prepares it.
    The order for service is not a contract. Should you cancel or 
delay your move or if you decide not to use the mover, you should 
promptly cancel the order.
    If you or your mover change any agreed dates for pick up or 
delivery of your shipment, or agree to any change in the non-binding 
estimate, your mover may prepare a written change to the order for 
service. The written change must be attached to the order for 
service.
    The order for service must contain the following fifteen 
elements:
    (1) Your mover's name and address and the U.S. DOT number 
assigned to your mover.
    (2) Your name, address and, if available, your telephone 
number(s).
    (3) The name, address, and telephone number of the delivering 
mover's office or agent located at or nearest to the destination of 
your shipment.
    (4) A telephone number where you may contact your mover or its 
designated agent.
    (5) One of the following three dates and times:
    (a) The agreed pickup date and agreed delivery date of your 
move.
    (b) The agreed period(s) of the entire move.
    (c) If your mover is transporting the shipment on a guaranteed 
service basis, the guaranteed dates or periods of time for pickup, 
transportation, and delivery. Your mover must enter any penalty or 
per diem requirements upon the agreement under this item.
    (6) The names and addresses of any other motor carriers, when 
known, who will participate in interline transportation of the 
shipment.
    (7) The form of payment your mover will honor at delivery. The 
payment information must be the same that was entered on the 
estimate.
    (8) The terms and conditions for payment of the total charges, 
including notice of any minimum charges.
    (9) The maximum amount your mover will demand at the time of 
delivery to obtain possession of the shipment, when transported on a 
collect-on-delivery basis.
    (10) The Surface Transportation Board's required released rates 
valuation statement, and the charges, if any, for optional valuation 
coverage. The STB's required released rates may be increased 
annually by your mover based on the Department of Commerce's Cost of 
Living Adjustment.
    (11) A complete description of any special or accessorial 
services ordered and minimum weight or volume charges applicable to 
the shipment.
    (12) Any identification or registration number your mover 
assigns to the shipment.
    (13) For non-binding estimated charges, your mover's reasonably 
accurate estimate of the amount of the charges, the method of 
payment of total charges, and the maximum amount (110 percent of the 
non-binding estimate) your mover will demand at the time of delivery 
for you to obtain possession of the shipment.
    (14) For binding estimated charges, the amount of charges your 
mover will demand based upon the binding estimate and the terms of 
payment under the estimate.
    (15) An indication of whether you request notification of the 
charges before delivery. You must provide your mover with the 
telephone number(s) or address(es) where your mover will transmit 
such communications.
    You and your mover must sign the order for service. Your mover 
must provide a dated copy of the order for service to you at the 
time your mover signs the order. Your mover must provide you the 
opportunity to rescind the order for service without any penalty for 
a three-day period after you sign the order for service, if you 
scheduled the shipment to be loaded more than three days after you 
sign the order.
    Your mover may provide you with blank or incomplete estimates, 
orders for service, bills of lading, or any other blank or 
incomplete documents pertaining to the move for informational 
purposes. However, your mover is forbidden from requiring you to 
sign any blank or incomplete estimates, orders for service, bills of 
lading, or any other blank or incomplete documents pertaining to the 
move.
    Before loading your shipment, and upon mutual agreement of both 
you and your mover, your mover may amend an order for service. Your 
mover must retain records of an order for service it transported for 
at least one year from the date your mover wrote the order.
    Your mover must inform you if the mover reasonably expects a 
special or accessorial service is necessary to safely transport a 
shipment. Your mover must refuse to accept the shipment when your 
mover reasonably expects a special or accessorial service is 
necessary to safely transport a shipment and you refuse to purchase 
the special or accessorial service. Your must make a written note if 
you refuse any special or accessorial services that your move 
reasonably expects to be necessary.

Must My Mover Write Up an Inventory of the Shipment?

    Yes. Your mover must prepare an inventory of your shipment 
before loading. If your mover's driver fails to prepare an 
inventory, you should write a detailed inventory of your shipment 
listing any damage or unusual wear to any items. The purpose is to 
make a record of the existence and condition of each item.
    After completing the inventory, you should sign each page and 
ask the mover's driver to sign each page. Before you sign it, it is 
important you make sure the inventory lists every item in the 
shipment and the entries regarding the condition of each item are 
correct. You have the right to note any disagreement. When your 
mover delivers the shipment, if an item is missing or damaged, your 
ability to dispute the items lost or damaged may depend upon your 
notations.
    You should retain a copy of the inventory. Your mover may keep 
the original if the driver prepared it. If your mover's driver 
completed an inventory, the mover must attach the complete inventory 
to the bill of lading as an integral part of the bill of lading.

Must My Mover Write Up a Bill of Lading?

    The bill of lading is the contract between you and the mover. 
The mover is required by law to prepare a bill of lading for every 
shipment it transports. The information on a bill of lading is 
required to be the same information shown on the order for service. 
The driver who loads your shipment must give you a copy of the bill 
of lading before loading your furniture and other household goods.
    It is your responsibility to read the bill of lading before you 
accept it. It is your responsibility to understand the bill of 
lading before you sign it. If you do not agree with something on the 
bill of lading, do not sign it until you are satisfied it is 
correct.
    The bill of lading requires the mover to provide the service you 
have requested. You must pay the charges set forth in the bill of 
lading.
    The bill of lading is an important document. Do not lose or 
misplace your copy. Have it available until your shipment is 
delivered, all charges are paid, and all claims, if any, are 
settled.
    A bill of lading must include the following 14 elements:
    (1) Your mover's name and address, or the name and address of 
the motor carrier issuing the bill of lading.
    (2) The names and addresses of any other motor carriers, when 
known, who will participate in the transportation of the shipment.
    (3) The name, address, and telephone number of the office of the 
motor carrier you must contact in relation to the transportation of 
the shipment.
    (4) The form of payment your mover will honor at delivery. The 
payment information must be the same that was entered on the 
estimate and order for service.
    (5) When your mover transports your shipment under a collect-on-
delivery basis, your name, address, and telephone number where the 
mover will notify you about the charges.
    (6) For non-guaranteed service, the agreed 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 
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.
    (7) For guaranteed service, the dates for pickup and delivery 
and any penalty or per diem entitlements due you under the 
agreement.
    (8) The actual date of pickup.
    (9) The identification number(s) of the vehicle(s) in which your 
mover loads your shipment.
    (10) The terms and conditions for payment of the total charges 
including notice of any minimum charges.
    (11) The maximum amount your mover will demand from you at the 
time of delivery

[[Page 35109]]

for you to obtain possession of your shipment, when your mover 
transports under a collect-on-delivery basis.
    (12) The Surface Transportation Board's required released rates 
valuation statement, and the charges, if any, for optional valuation 
coverage. The STB's required released rates may be increased 
annually by your mover based on the Department of Commerce's Cost of 
Living Adjustment.
    (13) Evidence of any insurance coverage sold to or procured for 
you from an independent insurer, including the amount of the premium 
for such insurance.
    (14) Each attachment to the bill of lading. Each attachment is 
an integral part of the bill of lading contract. The following three 
items must be added as attachments:
    (i) The binding or non-binding estimate.
    (ii) The order for service.
    (iii) The inventory.
    A copy of the bill of lading must accompany your shipment at all 
times while in the possession of your mover or its agent(s). When 
your mover loads the shipment upon a vehicle for transportation, the 
bill of lading must be in the possession of the driver responsible 
for the shipment. Your mover must retain bills of lading for 
shipments it transported for at least one year from the date your 
mover created the bill of lading.

Should I Reach an Agreement With My Mover About Pickup and Delivery 
Times?

    You and your mover should reach an agreement for pickup and 
delivery times. It is your responsibility to determine on what date, 
or between what dates, you need to have the shipment picked up and 
on what date, or between what dates, you require delivery. It is 
your mover's responsibility to tell you if it can provide service on 
or between those dates, or, if not, on what other dates it can 
provide the service.
    In the process of reaching an agreement with your mover, you may 
find it necessary to alter your moving and travel plans if no mover 
can provide service on the specific dates you desire.
    Do not agree to have your shipment picked up or delivered ``as 
soon as possible.'' The dates or periods you and your mover agree 
upon should be definite.
    Once an agreement is reached, your mover must enter those dates 
upon the order for service and upon the bill of lading.
    Once your goods are loaded, your mover is contractually bound to 
provide the service described in the bill of lading. Your mover's 
only defense for not providing the service on the dates called for 
is the ``Defense of Force Majeure.'' This is a legal term. It means 
when circumstances change, were not foreseen, and are beyond the 
control of your mover, preventing your mover from performing the 
service agreed to in the bill of lading, your mover is not 
responsible for damages resulting from its non-performance.
    This may occur when you do not inform your mover of the exact 
delivery requirements. For example, because of restrictions trucks 
must follow in your new city, the mover may not be able to take its 
truck down the street of your residence and must find helpers to 
provide long carries to carry your furniture and other household 
goods down a street where it can drive and park its trucks. Another 
example would be if your mover is not aware that your new residence 
is on the third floor, requiring six flight stair carries and 
workmen that can carry your furniture and household goods up stairs.

Must My Mover Determine the Weight of My Shipment?

    Generally yes. If your mover transports your household goods on 
a non-binding estimate under the mover's tariffs based upon weight, 
your mover must determine the weight of the shipment. If your mover 
provided a binding estimate and has loaded your shipment without 
claiming you have added additional items or services, the weight of 
the shipment will not affect the charges you will pay. If your mover 
is transporting your shipment based upon the volume of the shipment 
(i.e., a set number of cubic yards or meters), the weight of the 
shipment will also not affect the charges you will pay.
    Your mover must determine the weight of your shipment before 
requesting you pay for any charges dependent upon your shipment's 
weight.
    Most movers usually have a minimum weight or volume charge for 
transporting a shipment. Usually the minimum is the charge for 
transporting a shipment of at least 3,000 pounds (1,362 kilograms).
    If your shipment appears to weigh less than the mover's minimum 
weight, your mover must advise you on the order for service of the 
minimum cost before transporting your shipment. Should your mover 
fail to advise you of the minimum charges and your shipment is less 
than the minimum weight, your mover must base your final charges 
upon the actual weight instead of the minimum weight.

How Must My Mover Determine the Weight of My Shipment?

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

Gross weight-tare weight before loading=net weight

    Destination weighing (Also called back weighing)--The mover is 
also permitted to determine the weight of your shipment at the 
destination after it delivers your load. The fact your mover weighs 
your shipment at the destination instead of the origin will not 
affect the accuracy of the weight of your shipment. The most 
important difference is your mover will not determine the exact 
charges on your shipment before it is unloaded.
    Destination weighing is done in reverse of origin weighing. 
After arriving in the city or area where you are moving, the driver 
will weigh the truck. Your shipment will still be on the truck. Your 
mover will determine the gross weight before coming to your new 
residence to unload. After unloading your shipment, the driver will 
again weigh the truck to obtain the tare weight. The net weight of 
your shipment will then be obtained by subtracting the tare weight 
after delivery from the gross weight.

Gross weight-tare weight after delivery=net weight

    At the time of both weighings, your mover's truck must have 
installed or loaded all pads, dollies, hand trucks, ramps, and other 
equipment required in the transportation of your shipment. The 
driver and other persons must be off the vehicle at the time of both 
weighings. The fuel tanks on the vehicle must be full at the time of 
each weighing. In lieu of this requirement, your mover must not add 
fuel between the two weighings when the tare weighing is the first 
weighing performed.
    Your mover may detach the trailer of a tractor-trailer vehicle 
combination from the tractor and have the trailer weighed separately 
at each weighing provided the length of the scale platform is 
adequate to accommodate and support the entire trailer at one time.
    Your mover may use an alternative method to weigh your shipment 
if it weighs 3,000 pounds or less (1,362 kilograms or less). The 
only alternative method allowed is weighing the shipment upon a 
platform or warehouse certified scale before loading your shipment 
for transportation or after unloading.
    Your mover must use the net weight of shipments transported in 
large containers, such as ocean or railroad containers. Your mover 
will calculate the difference between the tare weight of the 
container (including all pads, blocking and bracing used in the 
transportation of your shipment) and the gross weight of the 
container with your shipment loaded in the container.
    You have the right, and your mover must inform you of your 
right, to observe all weighings of your shipment. Your mover must 
tell you where and when each weighing will occur. Your mover must 
give you a reasonable opportunity to be present to observe the 
weighings.
    You may waive your right to observe any weighing or re-weighing. 
This does not affect any of your other rights you have under Federal 
law.
    Your mover may request you waive your right to have a shipment 
weighed upon a certified scale. Your mover may want to weigh the 
shipment upon a trailer's on-board non-certified scale. You should 
demand your right to have a certified scale used. The use of a non-
certified scale may cause you to pay a higher final bill for your 
move, if the non-

[[Page 35110]]

certified scale does not accurately weigh your shipment. Remember, 
certified scales are inspected and approved for accuracy by a 
government inspection or licensing agency. Non-certified scales are 
not inspected and approved for accuracy by a government inspection 
or licensing agency.
    Your mover must obtain a separate weight ticket for each 
weighing. The weigh master must sign each weight ticket. Each weight 
ticket must contain the following six items:
    (1) The complete name and location of the scale.
    (2) The date of each weighing.
    (3) Identification of the weight entries as being the tare, 
gross, or net weights.
    (4) The company or mover identification of the vehicle.
    (5) Your last name as it appears on the Bill of Lading.
    (6) Your mover's shipment registration or Bill of Lading number.
    Your mover must retain the original weight ticket or tickets 
relating to the determination of the weight of your shipment as part 
of its file on your shipment.
    When both weighings are performed on the same scale, one weight 
ticket may be used to record both weighings.
    Your mover must present all freight bills with true copies of 
all weight tickets. If your mover does not present its freight bill 
with all weight tickets, your mover is in violation of Federal law.
    Before the driver actually begins unloading your shipment 
weighed at origin and after your mover informs you of the billing 
weight and total charges, you have the right to demand a re-weigh of 
your shipment. If you believe the weight is not accurate, you have 
the right to request your mover re-weigh your shipment before 
unloading.
    You have the right, and your mover must inform you of your 
right, to observe all re-weighings of your shipment. Your mover must 
tell you where and when each re-weighing will occur. Your mover must 
give you a reasonable opportunity to be present to observe the re-
weighings.
    You may waive your right to observe any re-weighing, however, 
you must waive that right in writing. You may send the written 
waiver via fax, e-mail, or any other electronic means. This does not 
affect any of your other rights you have under Federal law.
    Your mover is prohibited from charging you for the re-weighing. 
If the weight of your shipment at the time of the re-weigh is 
different from the weight determined at origin, the mover must 
recompute the charges based upon the re-weigh weight.
    Before requesting a re-weigh, you may find it to your advantage 
to estimate the weight of your shipment using the following three-
step method:
    1. Count the number of items in your shipment. Usually there 
will be either 30 or 40 items listed on each page of the inventory. 
For example, if there are 30 items per page and your inventory 
consists of four complete pages and a fifth page with 15 items 
listed, the total number of items will be 135. If an automobile is 
listed on the inventory do not include this item in the count of the 
total items.
    2. Subtract the weight of any automobile included in your 
shipment from the total weight of the shipment. If the automobile 
was not weighed separately, its weight can be found on its title or 
license receipt.
    3. Divide the number of items in your shipment into the weight. 
If the average weight resulting from this exercise ranges between 35 
and 45 pounds (16 and 20 kilograms) per article, it is unlikely a 
re-weigh will prove beneficial to you and could result in you paying 
higher charges.
    Experience has shown the average shipment of household goods 
will weigh about 40 pounds (18 kilograms) per item. If a shipment 
contains a large number of heavy items, such as cartons of books, 
boxes of tools or heavier than average furniture, the average weight 
per item may be 45 pounds or more (20 kilograms or more).

What Must My Mover Do if I Want To Know the Actual Weight or Charges 
for My Shipment before Delivery?

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

Subpart F--Transportation of My Shipment

Must My Mover Transport the Shipment in a Timely Manner?

    Yes, your mover must transport your household goods in a timely 
manner. This is also known as ``reasonable dispatch service.'' Your 
mover must provide reasonable dispatch service to you, except for 
transportation on the basis of guaranteed delivery dates.
    When your mover is unable to perform either the pickup or 
delivery of your shipment on the dates or during the periods of time 
specified in the order for service, your mover must notify you of 
the delay by telephone, telegram, or in person, at your mover's 
expense. As soon as the delay becomes apparent to your mover, it 
must give you notification it will be unable to provide the service 
specified in the terms of the order for service.
    At the time of your mover's notification of delay, it must 
advise you of the dates or periods of time it may be able to pickup 
and/or deliver the shipment. Your mover must consider your needs in 
its advisement.
    Your mover must prepare a written record of the date, time, and 
manner of its notification. Your mover must prepare a written record 
of its amended date or period for delivery. Your mover must retain 
these records as a part of its file on your shipment. The retention 
period is one year from the date of notification. Your mover must 
furnish a copy of the notification to you by first class mail or in 
person if you request a copy of the notice.
    Your mover must tender your shipment for delivery upon the 
agreed delivery date or within the period specified on the bill of 
lading. Upon your request or concurrence, your mover may deliver 
your shipment on another day.
    The establishment of a delayed pickup or delivery date does not 
relieve your mover from liability for damages resulting from your 
mover's failure to provide service as agreed. However, when your 
mover notifies you of alternate delivery dates, it is your 
responsibility to be available to accept delivery on the dates 
specified. If you are not available and are not willing to accept 
delivery, your mover has the right to place your shipment in storage 
at your expense or hold the shipment on its truck and assess 
additional charges.
    If after the pickup of your shipment, you request your mover to 
change the delivery date, most movers will agree to do so providing 
your request will not result in unreasonable delay to its equipment 
or interfere with another customer's move. However, your mover is 
under no obligation to consent to amended delivery dates. Your mover 
has the right to place your shipment in storage at your expense if 
you are unwilling or unable to accept delivery on the date agreed to 
in the bill of lading.
    If your mover fails to pick up and deliver your shipment on the 
date entered on the bill of lading and you have expenses you 
otherwise would not have had, you may be able to recover those 
expenses from your mover. This is what is called an inconvenience or 
delay claim. Should your mover refuse to honor such a claim and you 
continue to believe you are entitled to be paid damages, you may 
take your mover to court under 49 U.S.C. 14704. The Federal Motor 
Carrier Safety Administration (FMCSA) has no authority to order your 
mover to pay such claims.
    While we hope your mover delivers your shipment in a timely 
manner, you should consider the possibility your shipment may be 
delayed and find out what payment you can expect if a mover delays 
service through its own fault before you agree with the mover to 
transport your shipment.

What Must My Mover Do if It Is Able To Deliver My Shipment More Than 24 
Hours Before I Am Able To Accept Delivery?

    At your mover's discretion, it may place your shipment in 
storage. This will be under its own account and at its own expense 
in a warehouse located in proximity to the destination of your 
shipment. Your mover may do this if you fail to request or concur 
with an early delivery date, and your mover is able to deliver your 
shipment more than 24 hours before your specified date or the first 
day of your specified period.
    If your mover exercises this option, your mover must immediately 
notify you of the

[[Page 35111]]

name and address of the warehouse where your mover places your 
shipment. Your mover must make and keep a record of its notification 
as a part of its shipment records. Your mover has full 
responsibility for the shipment under the terms and conditions of 
the bill of lading. Your mover is responsible for the charges for 
redelivery, handling, and storage until it makes final delivery. 
Your mover may limit its responsibility to the agreed delivery date 
or the first day of the period of delivery as specified in the bill 
of lading.

What Must My Mover Do for Me When I Store Household Goods in Transit?

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

Subpart G--Delivery of My Shipment

May My Mover Ask Me To Sign a Delivery Receipt Purporting To Release It 
From Liability?

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

What Is the Maximum Collect-on-Delivery Amount My Mover May Demand I 
Pay at the Time of Delivery?

    On a binding estimate, the maximum amount is the exact estimate 
of the charges. Your mover must specify on the estimate, order for 
service, and bill of lading the form of payment acceptable to it 
(e.g., a certified check).
    On a non-binding estimate, the maximum amount is 110 percent of 
the approximate costs. Your mover must specify on the estimate, 
order for service, and bill of lading the form of payment acceptable 
to it (e.g., cash).

If My Shipment Is Transported on More Than One Vehicle, What Charges 
May My Mover Collect at Delivery?

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

If My Shipment Is Partially Lost or Destroyed, What Charges May My 
Mover Collect at Delivery?

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

How Must My Mover Calculate the Charges Applicable to the Shipment as 
Delivered?

    Your mover must multiply the percentage corresponding to the 
delivered shipment times the total charges applicable to the 
shipment tendered by you to obtain the total charges it must collect 
from you.
    If your mover's computed charges exceed the charges otherwise 
applicable to the shipment as delivered, the lesser of those charges 
must apply. This will apply only to the transportation of your 
household goods.
    Your mover must require you to pay any specific valuation charge 
due.
    Your mover may not refund the freight charges if the loss or 
destruction was due to an act or omission by you. For example, you 
fail to disclose to your mover your shipment contains perishable 
live plants. Your mover may disregard its loss or destruction of 
your plants, because you failed to inform your mover you were 
transporting live plants.
    Your mover must determine, at its own expense, the proportion of 
the shipment, based on actual or constructive weight, not lost or 
destroyed in transit.
    Your rights are in addition to, and not in lieu of, any other 
rights you may have with respect to your shipment of household goods 
your mover lost or destroyed, or partially lost or destroyed, in 
transit. This applies whether or not you have exercised your rights 
provided above.

Subpart H--Collection of Charges

Does This Subpart Apply to Most Shipments?

    No, this subpart does not apply to most shipments. Most movers 
perform COD service subject to the 110 percent rule for non-binding 
estimates. Read and understand this subpart only if your mover is 
providing a shipment subject to a binding estimate.

How Must My Mover Present Its Freight or Expense Bill to Me?

    At the time for payment of transportation charges, your mover 
must give you a freight bill identifying the service provided and 
the charge for each service. It is customary for most movers to use 
a copy of the bill of lading as a freight bill; however, some movers 
use an entirely separate document for this purpose.
    Except in those instances where a shipment is moving on a 
binding estimate, the freight bill must specifically identify each 
service performed, the rate per unit for each service, and the total 
charges for each service. If this information is not on the freight 
bill, DO NOT accept or pay the freight bill.
    Movers customarily provide in tariffs the freight charges must 
be paid in cash, by

[[Page 35112]]

certified check, or by a cashier's check. When this requirement 
exists, the mover will not accept personal checks. At the time you 
order your move, you should ask your mover about the form of payment 
your mover requires.
    Some movers permit payment of freight charges by use of a charge 
or credit card. However, do not assume your nationally recognized 
charge, credit, or debit card will be acceptable for payment. Ask 
your mover at the time you request an estimate. Your mover must 
specify the form of payment it will accept at delivery.
    If you do not pay the transportation charges at the time of 
delivery, your mover has the right, under the bill of lading, to 
refuse to deliver your goods. The mover may place them in storage, 
at your expense, until the charges are paid. However, the mover must 
deliver your goods upon payment of 100 percent of a binding 
estimate.
    If, before payment of the transportation charges, you discover 
an error in the charges, you should attempt to correct the error 
with the driver, the mover's local agent, or by contacting the 
mover's main office. If an error is discovered after payment, you 
should write the mover (the address will be on the freight bill) 
explaining the error and request a refund.
    Movers customarily check all shipment files and freight bills 
after a move has been completed to make sure the charges were 
accurate. If an overcharge is found, you should be notified and a 
refund made. If an undercharge occurred, you may be billed for the 
additional charges due.
    On ``to be prepaid'' shipments, your mover must present its 
freight bill for all transportation charges within 15 days, from the 
date your mover received the shipment. This period excludes 
Saturdays, Sundays, and Federal holidays.
    On ``collect'' shipments, your mover must present its freight 
bill for all transportation charges on the date of delivery, or, at 
its discretion, within 15 days, measured from the date the shipment 
was delivered at your destination. This period excludes Saturdays, 
Sundays, and Federal holidays.
    Your mover's freight bills and accompanying written notices must 
state the following five items:
    (1) Penalties for late payment.
    (2) Credit time limits.
    (3) Service or finance charges.
    (4) Collection expense charges.
    (5) Discount terms.
    If your mover extends credit to you, freight bills or a separate 
written notice accompanying a freight bill or a group of freight 
bills presented at one time must state ``You may be subject to 
tariff penalties for failure to timely pay freight charges'' or a 
similar statement. Your mover must state on its freight bills or 
other notices when it expects payment, and any applicable service 
charges, collection expense charges and discount terms.
    When your mover lacks sufficient information to compute its 
tariff charges at its time of billing, your mover must present its 
freight bill for payment within 15 days following the day when 
sufficient information becomes available. This period excludes 
Saturdays, Sundays, and Federal holidays.
    Your mover must not extend more credit to you, if you fail to 
furnish sufficient information to your mover. Your mover must have 
sufficient information to render a freight bill within a reasonable 
time after the shipment.
    When your mover presents freight bills by mail, it must deem the 
time of mailing to be the time of presentation of the bills. The 
term ``freight bills,'' as used in this paragraph, includes both 
paper documents and billing by use of electronic media such as 
computer tapes, disks, or the Internet when the mails (U.S. mail, e-
mail) are used to transmit them.
    When you mail acceptable checks or drafts in payment of freight 
charges, your mover must deem the act of mailing the payment within 
the credit period to be the proper collection of the tariff charges 
within the credit period for the purposes of Federal law. In the 
case of a dispute as to the date of mailing, your mover must accept 
the postmark as the date of mailing.

If I Forced My Mover To Relinquish a Collect-on-Delivery Shipment 
Before the Payment of All Charges, How Must My Mover Collect the 
Balance?

    On ``collect-on-delivery'' shipments, your mover must present 
its freight bill for all transportation charges within 15 days, 
measured from the date the shipment was delivered at your 
destination. This period excludes Saturdays, Sundays, and Federal 
holidays.

What Actions May My Mover Take To Collect From Me the Charges Upon Its 
Freight Bill?

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

Do I Have a Right To File a Claim To Recover Money for Property My 
Mover Lost or Damaged?

    Should your move result in the loss or damage to any of your 
property, you have the right to file a claim with your mover to 
recover money for such loss or damage.
    You have nine months following either the date of delivery, or 
the date when the shipment should have been delivered, to file a 
claim. You should file a claim as soon as possible. If you fail to 
file a claim within nine months following delivery and later bring a 
legal action against the mover to recover the damages, you may not 
be able to recover your attorney fees even though you win the court 
action.
    While the Federal Government maintains regulations governing the 
processing of loss and damage claims (49 CFR part 370), it cannot 
resolve those claims. If you cannot settle a claim with the mover, 
you may file a civil action to recover your claim in court under 49 
U.S.C. 14704. You may obtain the name and address of the mover's 
agent for service of legal process in your state by contacting the 
Federal Motor Carrier Safety Administration. You may also obtain the 
name of a process agent via the Internet at http://www.fmcsa.dot.gov 
and click on Licensing and Insurance (L&I) section.
    In addition, your mover must participate in an Arbitration 
Program. The program, described earlier in this pamphlet, provides 
you with the opportunity to settle certain types of unresolved loss 
or damage claims through a neutral arbitrator. You may find 
submitting your claim to arbitration under such a program to be a 
less expensive and more convenient way to seek recovery of your 
claim. If the mover does not provide you with information about its 
arbitration program before you move as it must do, ask the mover for 
the details of the program.

Subpart I--Resolving Disputes With My Mover

What May I Do To Resolve Disputes With My Mover?

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

PART 377--PAYMENT OF TRANSPORTATION CHARGES

0
2. The authority citation for part 377 continues to read as follows:

    Authority: 49 U.S.C. 13101, 13301, 13701-13702, 13706, 13707, 
and 14101; 49 CFR 1.73.

[[Page 35113]]

Sec.  377.215  [Removed and Reserved]

0
3. Section 377.215 is removed and reserved.

    Issued on: June 4, 2003.
Annette M. Sandberg,
Acting Administrator.
[FR Doc. 03-14439 Filed 6-10-03; 8:45 am]
BILLING CODE 4910-EX-P