400N Tariff

Posted by David Piotrowski

As many people may already know, many moving companies have used the 400N tariff in the past.

400N Tariff - What Is it?

The 400N tariff is put together by the American Moving and Storage Association (AMSA), and has been available for AMSA members to use for a fee. (I’ve discussed the definition of a tariff in a previous post.) The 400N tariff simplifies tariff publishing requirements for many small, medium, and even large-sized movers who may not have the knowledge, desire, or the resources to create their own tariff.

400N Tariff - Changes Taking Place

The Surface Transportation Board (STB) recently ended antitrust immunity for ratemaking in the moving industry (see my article on this subject here). This new ruling is planned to take effect on January 1, 2008. This means that after January 1, 2008, moving companies will not be able to blanketly utilize the 400N tariff (the STB had been concerned over antitrust issues). AMSA had sought a business review letter from the U.S. Department of Justice for an evaluation on whether or not AMSA could license copies of the 400N tariff to individual movers who would then be able to customize and modify the 400N tariff to fit their individual needs. Up until now, AMSA had been licensing the 400N to movers based on the assumption of a favorable letter from the USDOJ. However, the U.S. Department of Justice has now denied AMSA’s request to issue such a letter.

400N Tariff - Uncertainty Is In The Air

Without a business review letter from the U.S. Department of Justice, a concrete determination as to whether or not AMSA can continue to license the 400N tariff to individual movers (who would then need to modify it to meet their needs), cannot be made. The U.S. Department of Justice did not find AMSA’s licensing of the 400N tariff to be unlawful, but instead worried about setting a precedent for other industries going through rate deregulation that could be viewed as standing in the way of rate-differentiation. Therefore, the USDOJ chose not to provide guidance to AMSA on this issue. As a result, AMSA has decided to disclaim any copyright it has in the 400N tariff, apparently allowing any mover to utilize any part of the 400N tariff that they deem useful to their business without having to first receive a license from AMSA to do so.

400N Tariff - What Movers Should Do

The new ruling is planned to take effect on January 1, 2008. Before that time, all interstate movers should have their own tariff published. Tariffs can be customized to meet the individual needs of each mover, or movers can take portions of the 400N tariff and modify it to meet their needs. Movers should NOT take the 400N tariff without any changes and adopt is as their own, as this may subject movers to liability under the new STB ruling.

Option 1

Movers are recommended to create their own tariff customized for their individual market and business plan. This allows for the most flexibility and freedom. Please note, however, if a mover decides to create a custom tariff, they must still comply with the regulations governing household goods tariffs. If interested, David Piotrowski, Esq. can work with individual movers to create a custom tariff.

Option 2

Movers can adopt sections of the 400N tariff that meet their needs, while customizing it to make it “their own.”

Option 3

Movers can get a sample tariff from a publishing company or alternative source and change it to fit their needs. Movers should be careful however not to run afoul of antitrust and other issues that the STB seeks to stop with its recent ruling.

Under any option above, it will be the responsibility of the mover to ensure that their tariff complies with the applicable tariff regulations.

Timing Is Important!

The 400N tariff, as it has been used in the past, is changing. Movers must have their new tariff in place prior to January 1, 2008, to remain compliant with the law.

Customized Tariffs

Posted by David Piotrowski

Changes in the law mean that many moving companies will be required to create and publish custom tariffs. These custom tariffs will explain each companies rules and provide their rates for the moving services that they offer.

If you are a moving company and would like assistance in creating a custom tariff, please contact a transportation attorney.

For more detailed information on tariffs, please refer to this link on moving company tariffs. For more information on the changes in tariff rules, please click here.