HHG Valuation New Rules Effective Today

Posted by David Piotrowski

The new valuation rules are effective as of today (May 15, 2012). For more information, please visit the following posts:

RR 999 STB Valuation Video

New Valuation Rules Deadline Looming

Valuation Charges for FVP Coverage

New Valuation Rules / Procedures effective on April 2, 2012 Relating to Interstate Household Goods Moves

FMCSA Amends Its Rules Relating to Notice of Claims and Reincarnations

Posted by David Piotrowski

The Federal Motor Carrier Safety Administration (FMCSA) amends its Rules of Practice for Motor Carrier, Intermodal Equipment Provider, Broker, Freight Forwarder, and Hazardous Materials proceedings. The Agency clarifies that paying the full proposed civil penalty in an enforcement proceeding, either in response to a Notice of Claim (NOC) or later in the proceeding, does not allow respondents to unilaterally avoid an admission of liability for the violations charged.

Additionally, the Agency establishes procedures for issuing out-of service orders to motor carriers, intermodal equipment providers, brokers, and freight forwarders it determines are reincarnations of other entities with a history of failing to comply with statutory or regulatory requirements; these procedures will provide for an administrative review before the out-of- service order takes effect.

Finally, the Agency establishes a process for consolidating Agency records of reincarnated companies with their predecessor entities.

This rule is effective May 29, 2012.

For more information, please see http://www.gpo.gov/fdsys/pkg/FR-2012-04-26/pdf/2012-10162.pdf.

For interstate transportation household goods assistance, please contact the Law Office of David Piotrowski.

RR 999 STB Valuation Video

Posted by David Piotrowski

New Valuation Rules Deadline Looming

Posted by David Piotrowski

May 15, 2012 is the deadline for all interstate household goods moving companies to comply with the new federal laws governing valuation.

Under the new rules, known as RR 999, interstate motor carriers must make changes to their tariffs, Bill of Lading, Order for Service, and Estimate.

Tariff

Movers must amend their tariff to include the new valuation rules. Tariffs must also indicate the pricing that the mover charges for the Full Value Protection (FVP) valuation. The minimum declared value for full-value protection when the customer does not provide a declared value for a shipment will be the higher of $6.00 per pound (which may be indexed annually) or $6,000. However, when the customer elects a higher declared value, then a moving company can set its own rates for the valuation. The charges for the valuation coverage must be included in the carrier’s tariff.

Bill of Lading

Movers must print a new Bill of Lading that replaces the old valuation statement with the new valuation statement.

The following notice shall be placed in a prominent place, in at least 10-point type, on a moving company’s required bill of lading (if printed). If the bill of lading is provided electronically, this statement must be of a size that, when printed on 8 by 12 inch paper, equates to 10-point type.

REQUIRED VALUATION CLAUSE AND ESTIMATE OF COST OF SHIPMENT AT FULL-VALUE PROTECTION
_______________________________________________________________________
THE CONSUMER MUST SELECT ONE OF THESE OPTIONS FOR THE CARRIER’S LIABILITY FOR LOSS OR DAMAGE TO YOUR HOUSEHOLD GOODS
CUSTOMER’S DECLARATION OF VALUE
THIS IS A STATEMENT OF THE LEVEL OF CARRIER LIABILITY
—IT IS NOT INSURANCE
Option 1:
The Cost Estimate that you receive from your mover MUST INCLUDE Full (Replacement) Value Protection for the articles that are included in your shipment. If you wish to waive the Full (Replacement) Value level of protection, you must complete the WAIVER of Full (Replacement) Value Protection shown below.
Full (Replacement) Value Protection is the most comprehensive plan available for protection of your goods. If any article is lost, destroyed, or damaged while in your mover’s custody, your mover will, at its option, either: 1) repair the article to the extent necessary to restore it to the same condition as when it was received by your mover, or pay you for the cost of such repairs; or 2) replace the article with an article of like kind and quality, or pay you for the cost of such a replacement. Under Full (Replacement) Value Protection, if you do not declare a higher replacement value on this form prior to the time of shipment, the value of your goods will be deemed to be equal to $6.00 multiplied by the weight (in pounds) of the shipment, subject to a minimum valuation for the shipment of $6,000. Under this option, the cost of your move will be composed of a base rate plus an added cost reflecting the cost of providing this full value cargo liability protection for your shipment.
If you wish to declare a higher value for your shipment than these default amounts, you must indicate that value here. Declaring a higher value may increase the valuation charge in your cost estimate.
The Total Value of my shipment is: ________ (to be provided by customer)
Dollar Estimate of the cost of your move at Full (Replacement) Value Protection: ________________________ (to be provided by carrier)
I acknowledge that for my shipment I have: 1) ACCEPTED the Full (Replacement) Level of protection included in this estimate of charges and declared a higher Total Value of my shipment (if appropriate); and 2) received a copy of the “Your Rights and Responsibilities When You Move” brochure explaining these provisions.
X____________________________________ _____________
Customer’s signature Date
————————————————OR———————————————-
Option 2:
WAIVER of Full (Replacement) Value Protection. This lower level of protection is provided at no additional cost beyond the base rate; however, it provides only minimal protection that is considerably less than the average value of household goods. Under this option, a claim for any article that may be lost, destroyed, or damaged while in your mover’s custody will be settled based on the weight of the individual article multiplied by 60 cents. For example, the settlement for an audio component valued at $1,000 that weighs 10 pounds would be $6.00 (10 pounds times 60 cents).
Dollar Estimate of the cost of your move under the 60-cents option: _______________.
COMPLETE THIS PART ONLY if you wish to WAIVE The Full (Replacement) Level of Protection included in the higher cost estimate provided [above] [on the prior page] for your shipment and instead select the LOWER Released Value of 60-cents-per-pound Per Article; to do so you must initial and sign on the lines below-
I wish to Release My Shipment to a Maximum Value of 60-cents-per-pound per Article ____
(Initials)
I acknowledge that for my shipment I have: 1) WAIVED the Full (Replacement) Level of protection, for which I have received an estimate of charges, and 2) received a copy of the “Your Rights and Responsibilities When You Move” brochure explaining these provisions.
X____________________________________ _____________
Customer’s signature Date

Order for Service

The valuation statement must be removed from the Order for Service. Alternatively, if the motor carrier wants to continue to include a valuation statement on the Order for Service, then it must be amended to be consistent with the new valuation wording.

Estimate

Estimates must now include a price that includes Full Value Protection (FVP). The motor carrier may also include a second price in the estimate that does not include FVP.

In addition, the following notice shall be placed in a prominent place, in at least 12-point type, on a moving company’s required written estimate (if printed). If the estimate is provided electronically, this statement must be of a size that, when printed on 8 by 12 inch paper, equates to 12-point type.

WARNING: If a moving company loses or damages your goods, there are 2 different standards for the company’s liability based on the types of rates you pay. BY FEDERAL LAW, THIS FORM MUST CONTAIN A FILLED-IN ESTIMATE OF THE COST OF A MOVE FOR WHICH THE MOVING COMPANY IS LIABLE FOR THE FULL (REPLACEMENT) VALUE OF YOUR GOODS in the event of loss of, or damage to, the goods. This form may also contain an estimate of the cost of a move in which the moving company is liable for FAR LESS than the replacement value of your goods, typically at a lower cost to you. You will select the liability level later, on the bill of lading (contract) for your move. Before selecting a liability level, please read “Your Rights and Responsibilities When You Move,” provided by the moving company, and seek further information at the government website www.protectyourmove.gov.

For help with your forms and tariff, please contact the Law Office of David Piotrowski.

New Valuation Rules / Procedures effective on April 2, 2012 Relating to Interstate Household Goods Moves

Posted by David Piotrowski

The Law Office of David Piotrowski represents interstate household goods moving companies.

Earlier this year, the Surface Transportation Board issued a ruling that modifies the way moving companies must place valuation notices and charges in their tariffs, estimates, and Bills of Lading. The new rules take effect on April 2, 2012. Interstate motor carriers that do not adopt the new rules will be in violation of federal law.

If you would like our assistance in updating your tariff, Estimates, and Bills of Lading, so that they comply with the new law, please contact the Law Office of David Piotrowski.

Estimates

Your estimates must include the following valuation information:

The following notice shall be placed in a prominent place, in at least 12-point type, on a moving company’s required written estimate (if printed). If the estimate is provided electronically, this statement must be of a size that, when printed on 8 by 12 inch paper, equates to 12-point type.

WARNING: If a moving company loses or damages your goods, there are 2 different standards for the company’s liability based on the types of rates you pay. BY FEDERAL LAW, THIS FORM MUST CONTAIN A FILLED-IN ESTIMATE OF THE COST OF A MOVE FOR WHICH THE MOVING COMPANY IS LIABLE FOR THE FULL (REPLACEMENT) VALUE OF YOUR GOODS in the event of loss of, or damage to, the goods. This form may also contain an estimate of the cost of a move in which the moving company is liable for FAR LESS than the replacement value of your goods, typically at a lower cost to you. You will select the liability level later, on the bill of lading (contract) for your move. Before selecting a liability level, please read “Your Rights and Responsibilities When You Move,” provided by the moving company, and seek further information at the government website www.protectyourmove.gov.

Bill of Lading

Your Bill of Lading must include the following valuation information:

The following notice shall be placed in a prominent place, in at least 10-point type, on a moving company’s required bill of lading (if printed). If the bill of lading is provided electronically, this statement must be of a size that, when printed on 8 by 12 inch paper, equates to 10-point type.

REQUIRED VALUATION CLAUSE AND ESTIMATE OF COST OF SHIPMENT AT FULL-VALUE PROTECTION
_______________________________________________________________________
THE CONSUMER MUST SELECT ONE OF THESE OPTIONS FOR THE CARRIER’S LIABILITY FOR LOSS OR DAMAGE TO YOUR HOUSEHOLD GOODS
CUSTOMER’S DECLARATION OF VALUE
THIS IS A STATEMENT OF THE LEVEL OF CARRIER LIABILITY
—IT IS NOT INSURANCE
Option 1:
The Cost Estimate that you receive from your mover MUST INCLUDE Full (Replacement) Value Protection for the articles that are included in your shipment. If you wish to waive the Full (Replacement) Value level of protection, you must complete the WAIVER of Full (Replacement) Value Protection shown below.
Full (Replacement) Value Protection is the most comprehensive plan available for protection of your goods. If any article is lost, destroyed, or damaged while in your mover’s custody, your mover will, at its option, either: 1) repair the article to the extent necessary to restore it to the same condition as when it was received by your mover, or pay you for the cost of such repairs; or 2) replace the article with an article of like kind and quality, or pay you for the cost of such a replacement. Under Full (Replacement) Value Protection, if you do not declare a higher replacement value on this form prior to the time of shipment, the value of your goods will be deemed to be equal to $6.00 multiplied by the weight (in pounds) of the shipment, subject to a minimum valuation for the shipment of $6,000. Under this option, the cost of your move will be composed of a base rate plus an added cost reflecting the cost of providing this full value cargo liability protection for your shipment.
If you wish to declare a higher value for your shipment than these default amounts, you must indicate that value here. Declaring a higher value may increase the valuation charge in your cost estimate.
The Total Value of my shipment is: ________ (to be provided by customer)
Dollar Estimate of the cost of your move at Full (Replacement) Value Protection: ________________________ (to be provided by carrier)
I acknowledge that for my shipment I have: 1) ACCEPTED the Full (Replacement) Level of protection included in this estimate of charges and declared a higher Total Value of my shipment (if appropriate); and 2) received a copy of the “Your Rights and Responsibilities When You Move” brochure explaining these provisions.
X____________________________________ _____________
Customer’s signature Date

————————————————OR———————————————-
Option 2:
WAIVER of Full (Replacement) Value Protection. This lower level of protection is provided at no additional cost beyond the base rate; however, it provides only minimal protection that is considerably less than the average value of household goods. Under this option, a claim for any article that may be lost, destroyed, or damaged while in your mover’s custody will be settled based on the weight of the individual article multiplied by 60 cents. For example, the settlement for an audio component valued at $1,000 that weighs 10 pounds would be $6.00 (10 pounds times 60 cents).
Dollar Estimate of the cost of your move under the 60-cents option: _______________.
COMPLETE THIS PART ONLY if you wish to WAIVE The Full (Replacement) Level of Protection included in the higher cost estimate provided [above] [on the prior page] for your shipment and instead select the LOWER Released Value of 60-cents-per-pound Per Article; to do so you must initial and sign on the lines below-
I wish to Release My Shipment to a Maximum Value of 60-cents-per-pound per Article ____
(Initials)
I acknowledge that for my shipment I have: 1) WAIVED the Full (Replacement) Level of protection, for which I have received an estimate of charges, and 2) received a copy of the “Your Rights and Responsibilities When You Move” brochure explaining these provisions.
X____________________________________ _____________
Customer’s signature Date

Tariff

Your tariff must specify the above new valuation procedures and information, including but not limited to, the charges for FVP.

Miscellaneous Notes

The $6.00 multiplied by the weight (in pounds) of the shipment, subject to a minimum valuation for the shipment of $6,000 (described above), will differ from the dollar amounts in “Your Rights and Responsibilities When You Move,” until the FMCSA updates that publication. This may cause confusion for your customers, so you will need to explain it to them.

In addition, if you are using a binding estimate and charging by cubic feet, but your customer elects FVP, you must still weigh the shipment for FVP calculations.

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