[Federal Register Volume 59, Number 243 (Tuesday, December 20, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31152]
[[Page Unknown]]
[Federal Register: December 20, 1994]
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INTERSTATE COMMERCE COMMISSION
49 CFR Parts 1011 and 1130
[Ex Parte No. MC-222 (Sub-No. 1)]
Procedures for Shippers To Contest or Carriers To Rebill Motor
Common Carrier Freight Charges Under Section 206 of the Trucking
Industry Regulatory Reform Act of 1994
AGENCY: Interstate Commerce Commission.
ACTION: Final rule.
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SUMMARY: The Commission explains how it intends to handle any disputes
that may arise concerning the applicability or reasonableness of motor
common carrier rates under Section 206 of TIRRA.
EFFECTIVE DATE: The final rule is effective on December 20, 1994.
FOR FURTHER INFORMATION CONTACT: Lawrence C. Herzig, (202) 927-5536.
[TDD for the hearing impaired: (202) 927-5721.]
SUPPLEMENTARY INFORMATION: Section 206 of The Trucking Industry
Regulatory Reform Act of 1994, Pub. L. No. 103-311 (August 26, 1994),
(TIRRA), creates new procedures for shippers seeking to contest motor
carrier freight charges and for carriers seeking to rebill customers to
collect additional freight charges.1 We addressed this provision
in our recent policy statement observing,
\1\As pertinent here, Section 206 provides:
(3) A motor common carrier of property (other than a motor
common carrier providing transportation of household goods or in
noncontiguous domestic trade) shall provide to the shipper, on
request of the shipper, a written or electronic copy of the rate,
classification, rules, and practices, upon which any rate agreed to
between the shipper and carrier may have been based. When the
applicability or reasonableness of the rates and related provisions
billed by a motor common carrier is challenged by the person paying
the freight charges, the Commission shall determine whether such
rates and provisions are reasonable or applicable based on the
record before it. In those cases where a motor common carrier (other
than a motor common carrier providing transportation of household
goods or in noncontiguous domestic trade) seeks to collect charges
in addition to those billed and collected which are contested by the
payor, the carrier may request that the Commission determine whether
any additional charges over those billed and collected must be paid.
A carrier must issue any bill for charges in addition to those
originally billed within 180 days of the original bill in order to
have the right to collect such charges.
(4) If a shipper seeks to contest the charges originally billed,
the shipper may request that the Commission determine whether the
charges originally billed must be paid. A shipper must contest the
original bill within 180 days in order to have the right to contest
such charges.
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We do not foresee a great need for rate dispute resolution once
carriers and their customers develop appropriate systems for quoting
and confirming unfiled rates. Based on the economics of truck
transportation there is little incentive for carriers or their
customers to become involved in rate disputes.
Under TIRRA, the future of motor carrier pricing is no different
from pricing by other businesses in our economy. Industrial
concerns, large and small, have devised systems for quoting,
agreeing upon and billing prices for their products and services. We
are confident that comparable methods will be devised for the
trucking industry.2
\2\Policy Statement on Regulatory Reform Act of 1994, 10
I.C.C.2d 251, 257 (1994).
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Recently, we have received inquiries about various aspects of
Section 206. In order to avoid confusion, we will explain in greater
detail how we interpret Section 206 and how we intend to handle Section
206 disputes that may arise. We will consider taking further action if
the need develops for establishing more formal rules and procedures.
Section 206 provides an uncomplicated way to resolve any disputes
concerning the applicability or reasonableness of rates charged by
motor carriers of property (other than household goods or those
providing transportation in noncontiguous domestic trade). First, it
entitles the shipper to request and receive a written or electronic
copy of the basis for the agreed-upon charges. If the shipper is not
satisfied with the documentation provided by the carrier, it must
contest the original bill with the carrier. Section 206 also allows the
carrier to rebill the shipper for additional charges. The law allots a
180 day period from the date the carrier issues the original freight
bill for the shipper to contest the rate or the carrier to rebill. The
180 day period is not the time to come to the Commission, although
either party may do so if the carrier has already responded to the
shipper's contest or the shipper has resisted the rebilling. In other
words, shippers and carriers should file with us only to resolve
disputes, not to satisfy the 180 day statutory period. The satisfaction
of the 180 day statutory period is accomplished by the shipper
contesting the rate with the carrier or the carrier rebilling the
shipper. There is no explicit time limit for a shipper to contest
rebilled charges. However we would urge shippers to do so promptly, and
in any event no later than 180 days after rebilling, in order to permit
carriers to obtain a determination from us as to whether any additional
charges must be paid before going to court.
In the event the shipper and carrier cannot resolve their dispute,
the complaining party should file an informal complaint with us that
documents the dispute. We intend to handle such cases informally under
the rules at 49 CFR 1130. Filings with us must include either a copy of
whatever the shipper submitted to the carrier to contest the charges
and any response by the carrier or the carrier rebilling and any
response by the shipper. We are delegating authority to the Suspension/
Special Permission Board to handle these complaints.
If our handling of the dispute does not terminate it, the aggrieved
party must be mindful of the statute of limitations for filing court
actions which is now 2 years from the date the claim accrues but is
reduced to 18 months on December 3, 1994, 49 U.S.C. 11706(a)&(b).
Congress has given the Commission the jurisdiction to adjudicate these
disputes, but only a court can order the payment of monies that may be
owed. In other words, a court action must be filed within the statute
of limitations period. Filing with the Commission does not toll the
statute of limitations for bringing court action.
Environmental And Energy Considerations
We conclude that the rule adopted here will not significantly
affect either the quality of the human environment or the conservation
of energy resources.
Regulatory Flexibility Analysis
We conclude that our action will not have a significant economic
impact on a substantial number of small entities. This action only
involves delegation of responsibilities to the Suspension/Special
Permission Board to handle these complaints.
List of Subjects
49 CFR Part 1011
Administrative practice and procedure, Authority delegations
(Government agencies), Organization and functions (Government
agencies).
49 CFR Part 1130
Administrative practice and procedure.
Decided: December 8, 1994.
By the Commission, Chairman McDonald, Vice Chairman Morgan, and
Commissioners Simmons and Owen.
Vernon A. Williams,
Secretary.
For the reasons set forth in the preamble, title 49, chapter X,
part 1011 is amended as set forth below:
PART 1011--COMMISSION ORGANIZATION; DELEGATIONS OF AUTHORITY
1. The authority citation for part 1011 is revised to read as
follows:
Authority: 5 U.S.C. 553; 31 U.S.C. 9701; 49 U.S.C. 10301, 10302,
10304, 10305, 10321, 10762.
2. In Sec. 1011.6 a new paragraph (a)(1)(iv) is added to read as
follows:
Sec. 1011.6 Employee boards.
* * * * *
(a) ***
(1) ***
(iv) To handle any disputes that may arise concerning the
applicability or reasonableness of motor common carrier rates under 49
U.S.C. 10762(a) (3) and (4).
* * * * *
[FR Doc. 94-31152 Filed 12-19-94; 8:45 am]
BILLING CODE 7035-01-P
