[Federal Register Volume 59, Number 10 (Friday, January 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-1010]
[[Page Unknown]]
[Federal Register: January 14, 1994]
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INTERSTATE COMMERCE COMMISSION
49 CFR Parts 1051, 1053 and 1312
[Ex Parte No. MC-180 (Sub-No. 3)]
Regulations Implementing Section 7 of the ``Negotiated Rates Act
of 1993''
AGENCY: Interstate Commerce Commission (ICC).
ACTION: Final rule.
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SUMMARY: The ``Negotiated Rates Act of 1993'' amends the Interstate
Commerce Act by adding section 10767. Section 10767 requires that the
Commission establish regulations to prohibit, except for certain
services, motor common and contract carriers of property from providing
a reduction in a tariff rate or contract rate to a person who is a
nonpayer of freight charges. This proceeding establishes, as set forth
below, the regulations required by the statute.
EFFECTIVE DATE: February 13, 1994.
FOR FURTHER INFORMATION CONTACT: Charles E. Langyher (202) 927-5160 or
Ronald A. Hall (202) 927-5595; TDD for hearing impaired: (202) 927-
5721.
SUPPLEMENTARY INFORMATION: By a Notice of Proposed Rulemaking (NPR) in
Ex Parte No. MC-180 (Sub-No. 2), Rulemaking--Payment of Discounts by
Motor Carriers of Property to the Nonpayer of Freight Charges (not
printed) served June 4, 1993 (58 FR 32340, June 9, 1993), the
Commission instituted a proceeding to determine whether off-bill
discounting where it does or may result in a misrepresentation of
shipping charges should be found to be an unreasonable practice or
otherwise unlawful. However, the ``Negotiated Rates Act of 1993'' (Pub.
L. 103-180) since has been enacted and amends subchapter IV of chapter
107 of title 49, United States Code, by adding section 10767, which
requires that the Commission issue regulations by April 2, 1994, that
will:
(1) Prohibit, except as described in (4) below, motor common and
contract carriers of property from providing a reduction in a tariff or
contract rate to any party other than the person directly responsible
to the carrier for payment of the transportation service according to
the bill of lading, receipt, or contract, or an agent of the person
paying for the transportation. 49 U.S.C. 10767(a).
(2) Require a motor common carrier of property to disclose, either
by a shipping document or an electronic transmission, the actual tariff
rate, charge, or allowance to the person directly responsible for
payment for the transportation service. 49 U.S.C. 10767(b).
(3) Prohibit any person from causing a motor common carrier of
property to present a document to any party of the transaction, which
contains false or misleading information about the actual tariff rate,
charge, or allowance. 49 U.S.C. 10767(b).
(4) Permit motor common and contract carriers of property to make
actual tariff or contract payments or allowances to a party to the
transaction, when such party performs a transportation service that
would otherwise be performed by the carrier, such as a loading and
unloading service, provided that the payment or allowance is reasonably
related to the cost that such party knows or has reason to know would
otherwise be incurred by the motor carrier if it had performed the
service. 49 U.S.C. 10767(c).
Because section 10767 supersedes the NPR, the Ex Parte No. MC-180
(Sub-No. 2) proceeding is discontinued.
The Commission does not believe this revision requires notice and
comment rulemaking under section 553 of the Administrative Procedure
Act (5 U.S.C. 553) because it establishes regulations mandated by
Congress.
This decision will not affect significantly either the quality of
the human environment or the conservation of energy resources.
List of Subjects
49 CFR Part 1051
Buses, Freight, Motor carriers, Reporting and recordkeeping
requirements.
49 CFR Part 1053
Motor contract carriers.
49 CFR Part 1312
Motor carriers, Moving of household goods, Pipelines, Tariffs.
Decided: December 30, 1993.
By the Commission, Chairman McDonald, Vice Chairman Simmons,
Commissioners Phillips, and Philbin.
Sidney L. Strickland, Jr.,
Secretary.
For the reasons set forth in the preamble, the Commission amends
chapter X of title 49 of the Code of Federal Regulations as follows:
PART 1051--RECEIPTS AND BILLS
1. The authority citation for part 1051 is revised to read as
follows:
Authority: 5 U.S.C. 553; 49 U.S.C. 10321, 10767 and 11144.
2. In Sec. 1051.2, paragraph (a) introductory text and paragraphs
(a)(1) through (a)(11) are redesignated as paragraph (a)(1)
introductory text and paragraphs (a)(1)(i) through (a)(1)(xi),
respectively, and new paragraphs (a)(2) and (a)(3) are added to read as
follows:
Sec. 1051.2 Expense bills.
(a) Property. (1) * * *
(2) A documents for payment that is presented or transmitted
electronically by a motor carrier to the person directly responsible to
the motor carrier for payment, or to an agent of such responsible
person, must:
(i) Disclose the actual rates, charges, or allowances for the
transportation service.
(ii) Indicate that a reduction, allowance, or other adjustment may
apply when the actual rate, charge, or allowance is dependent upon the
performance of a service by a party to the transportation arrangement,
such as tendering a volume of freight over a stated period of time.
(3) No person shall cause a motor carrier to present false or
misleading information on a document for payment about the actual rate,
charge, or allowance to any party to the transaction.
* * * * *
3. A new part 1053 is added to read as follows:
PART 1053--LIMITATION ON CONTRACT CARRIER RATE REDUCTIONS
Sec. 1053.1 Rate reduction limitations.
Authority: 5 U.S.C. 553; 49 U.S.C. 10321 and 10767.
Sec. 1053.1 Rate reduction limitations.
(a) Except as provided in paragraph (b) of this section, a motor
contract carrier of property shall not establish or maintain contracts
providing a reduction in a rate set forth in its contract to any person
other than:
(1) The person directly responsible to the motor carrier for
payment for the transportation service, according to the bill of
lading, receipt or contract; or
(2) An agent of the person directly responsible to the motor
carrier.
(b) The provisions of paragraph (a) of this section shall not
prohibit a motor contract carrier of property from making contractual
payments or allowances to a party to the transaction for services that
would otherwise be performed by the motor carrier, e.g. loading or
unloading service, if the payments or allowances are reasonably related
to the cost that such party knows or has reason to know would otherwise
be incurred by the motor carrier.
PART 1312--REGULATIONS FOR THE PUBLICATION, POSTING AND FILING OF
TARIFFS, SCHEDULES AND RELATED DOCUMENTS
4. The authority citation for part 1312 is revised to read as
follows:
Authority: 5 U.S.C. 553; 49 U.S.C. 10321, 10762 and 10767.
5. In Sec. 1312.14, a new paragraph (a)(4) is added to read as
follows:
Sec. 1312.14 Statement of rates and fares.
(a) * * *
(4)(i) Except as provided in paragraph (a)(4)(ii) of this section,
a motor common carrier of property shall not establish or maintain
tariffs providing a reduction in a rate to any person other than:
(A) The person directly responsible to the motor carrier for
payment for the transportation service, according to the bill of lading
or receipt; or
(B) An agent of the person directly responsible to the motor
carrier. See also, Sec. 1051.2(a) of this chapter.
(ii) The provisions of paragraph (a)(4)(i) of this section shall
not prohibit a motor carrier from making tariff specified payments or
allowances to a party to the transaction for services that would
otherwise be performed by the motor carrier, e.g. as loading or
unloading service, if the payments or allowances are reasonably related
to the cost that such party knows or has reason to know would otherwise
be incurred by the motor carrier. See also, Sec. 1312.28.
* * * * *
[FR Doc. 94-1010 Filed 1-13-94; 8:45 am]
BILLING CODE 7035-01-P
