[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] ======================================================================= ----------------------------------------------------------------------- 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. ----------------------------------------------------------------------- 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. --------------------------------------------------------------------------- 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). --------------------------------------------------------------------------- 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