Re: Paintings or Pictures Items 56157, , , , , , and

Transcription

1 Re: Paintings or Pictures Items 56157, , , , , , and CCSB Contact: Walter A. Whalen Telephone (703) Proponent: Commodity Classification Standards Board Present Classification Provisions Item Description Class DECORATIONS GROUP: subject to item Pictures, printed on paper or paperboard, framed, with or without glass, see Note, item 56159, in boxes: Sub 1 Actual value not exceeding $25.00 each, see Note, item Sub 2 Actual value exceeding $25.00 each, or value not declared in writing at time of shipment. See item for class dependent upon agreed or released value NOTE Shipper must certify on shipping orders and bills of lading at time of shipment that the actual value of the pictures does not exceed $25.00 each NOTE Does not apply on limited edition prints signed by the artist and numbered Original Works of Art, other than when moving subject to items or Paintings or Pictures, NOI, value declared in writing by the shipper, or agreed upon in writing as the released value of the property, in accordance with the following, see Note, item : Sub 1 Released value not exceeding 50 cents per pound, in boxes Sub 2 Released value exceeding 50 cents per pound but not exceeding $2.00 per pound, in boxes Sub 3 Sub 4 Sub 5 Released value exceeding $2.00 per pound but not exceeding $5.00 per pound, in boxes If declared or released value exceeds $5.00 per pound... Not Taken If consignor declines to declare value or agree to released value in writing, the shipment will not be accepted NOTE The value declared in writing by the shipper, or agreed upon in writing as the released value of the property, as the case may be, must be entered on shipping order and bill of lading as follows: "The agreed or declared value of the property is hereby specifically stated by the shipper to be not exceeding per pound." (Classes herein based on released value have been authorized by the Interstate Commerce Commission in Released Rates Orders MC No. 1 of January 16, 1936, as amended October 20, 1948, August 9, 1966, October 7, 1966, October 12, 1970 and March 31, 1980.) 2016 National Motor Freight Traffic Association, Inc. Subject 3, Page 1 of 10

2 Present Classification Provisions Continued Item Description Class Pictures, paperboard, framed with plastic frame, without glass, nested, actual value not exceeding 40 cents each, see Note, item , in boxes NOTE Shipper must certify on shipping orders and bills of lading at time of shipment that the actual value of each framed picture does not exceed 40 cents. If the shipper fails to so certify the actual value, item 56157, sub 2, naming 'Pictures, printed on paper or paperboard, framed, with or without glass, value not declared in writing at time of shipment,' will apply Pictures, lenticular, see Note, item , framed or not framed, in boxes NOTE Applies only on pictures laminated to glass or plastic sheets, with or without plastic backing sheets, with molded lenses designed to produce a three-dimensional effect Pictures, lithographed or printed on sheet steel, in boxes PRINTED MATTER GROUP: subject to item Calendar Pictures, in packages Pictures or Posters, printed on paper or paperboard, not framed, other than advertising, other than limited edition prints numbered and signed by the artist, and other than photographs: Sub 1 Individually rolled, in boxes Sub 2 Other than individually rolled, in boxes THIS SPACE INTENTIONALLY LEFT BLANK Subject 3, Page 2 of National Motor Freight Traffic Association, Inc.

3 Present Classification Provisions Concluded ITEM 172 LIMITATION OF CARRIER LIABILITY WHERE VALUE IS NOT DECLARED BY SHIPPER Where item 62820, 63025, 70080, 88160, 99400, , , , , or of this Classification applies, and shipper fails to declare a value as required by those provisions, the shipment will not be accepted, but if the shipment is inadvertently accepted, the carrier's liability shall be limited as follows: ITEM NO. DESCRIPTION VALUE LIMITATION Radio, Radio-telephone or Television Transmitting or Transmitting and Receiving Sets or other Radio Impulse or Wireless Audio (Sound) Impulse Transmitting or Transmitting $10.00 per pound and Receiving Sets, separate or combined Semiconductors, viz.: Devices, NOI; Diodes; Rectifiers; Thermistors; Transistors $20.00 per pound Flatware, Dresserware or Holloware, sterling silver; or Flatware, Dresserware or Holloware, with sterling silver parts, such as $5.00 per pound backs, covers, frames, handles or tops Glassware, NOI $19.00 per pound Hides, Pelts or Skins, dressed or tanned or not dressed nor tanned, NOI, dry $7.50 per pound Household Goods, Personal Effects or Military Baggage, other than shipments moving under the U.S. Department of $0.10 per pound Defense Personal Property Program Jewelry, costume or novelty, made of materials other than solid or filled precious metals, not mounted nor set with $5.00 per pound precious stones Machines, Systems or Devices, data processing, or Components, Parts or Peripherals thereof $25.00 per pound Metal, NOI, or Metal Alloys, NOI $5.00 per pound Radioactive Materials $25.00 per pound Watches or Watch Movements $10.00 each Where the provisions of other tariffs apply, and those provisions specify a limitation of the carrier s liability absent a release or value declaration by the shipper, the carrier s liability shall be limited to the extent provided by such applicable provisions when the shipper does not make the requisite or specified release or value declaration National Motor Freight Traffic Association, Inc. Subject 3, Page 3 of 10

4 Proposed Classification Provisions Item Description Class DECORATIONS GROUP: subject to item A-NEW Original Works of Art, other than when moving subject to items or B-NEW... 0 B-NEW Paintings or Pictures, NOI, framed or unframed, with or without glass, see Note, item C-NEW, in boxes, see Note, item D-NEW, released to a value not exceeding $25.00 per pound, see Note, item E-NEW, subject to Item 170 and having a density in pounds per cubic foot of: Sub 1 Less than Sub 2 4 but less than Sub 3 8 or greater C-NEW NOTE Also applies on Printed Posters, other than those used for advertising, or Lenticular Pictures. D-NEW NOTE Articles must be protected by interior packing forms necessary to afford adequate protection against damage. E-NEW NOTE Unless otherwise provided in individual participating carriers' tariffs, articles moving under the provisions of shall only be accepted subject to a maximum liability of $25.00 per pound. If shipper fails to declare a value, or declares a value in excess of $25.00 per pound, shipment will not be accepted, but if the shipment is inadvertently accepted, it will be considered as being released to a value not exceeding $25.00 per pound and the shipment will move subject to such limitation of liability. In no instance will carriers' liability exceed the actual value of the article lost or damaged Pictures, printed on paper or paperboard, framed, with or without glass, etc... Cancel; see NOTE Cancel; no further application NOTE Cancel; no further application Original Works of Art, etc... Cancel; see item A-NEW Paintings or Pictures, NOI, etc... Cancel; see NOTE Cancel; no further application Pictures, paperboard, framed with plastic frame, without glass, etc... Cancel; see NOTE Cancel; no further application Pictures, lenticular, etc... Cancel; see NOTE Cancel; no further application Pictures, lithographed or printed on sheet steel, etc... Cancel; see Subject 3, Page 4 of National Motor Freight Traffic Association, Inc.

5 Proposed Classification Provisions Continued Item Description Class PRINTED MATTER GROUP: subject to item Calendar Pictures, etc... Cancel; see Pictures or Posters, printed on paper or paperboard, etc... Cancel; see ITEM 172 LIMITATION OF CARRIER LIABILITY WHERE VALUE IS NOT DECLARED BY SHIPPER Where item B-NEW, 62820, 63025, 70080, 88160, 99400, , , , , or of this Classification applies, and shipper fails to declare a value as required by those provisions, the shipment will not be accepted, but if the shipment is inadvertently accepted, the carrier's liability shall be limited as follows: ITEM NO. DESCRIPTION VALUE LIMITATION B-NEW Paintings or Pictures, NOI, framed or unframed, with or $25.00 per without glass pound Radio, Radio-telephone or Television Transmitting or Transmitting and Receiving Sets or other Radio Impulse or Wireless Audio (Sound) Impulse Transmitting or Transmitting $10.00 per pound and Receiving Sets, separate or combined Semiconductors, viz.: Devices, NOI; Diodes; Rectifiers; Thermistors; Transistors $20.00 per pound Flatware, Dresserware or Holloware, sterling silver; or Flatware, Dresserware or Holloware, with sterling silver parts, such as $5.00 per pound backs, covers, frames, handles or tops Glassware, NOI $19.00 per pound Hides, Pelts or Skins, dressed or tanned or not dressed nor tanned, NOI, dry $7.50 per pound Household Goods, Personal Effects or Military Baggage, other than shipments moving under the U.S. Department of $0.10 per pound Defense Personal Property Program Jewelry, costume or novelty, made of materials other than solid or filled precious metals, not mounted nor set with $5.00 per pound precious stones Machines, Systems or Devices, data processing, or Components, Parts or Peripherals thereof $25.00 per pound Metal, NOI, or Metal Alloys, NOI $5.00 per pound Radioactive Materials $25.00 per pound Watches or Watch Movements $10.00 each 2016 National Motor Freight Traffic Association, Inc. Subject 3, Page 5 of 10

6 Proposed Classification Provisions Concluded Where the provisions of other tariffs apply, and those provisions specify a limitation of the carrier s liability absent a release or value declaration by the shipper, the carrier s liability shall be limited to the extent provided by such applicable provisions when the shipper does not make the requisite or specified release or value declaration. Analysis Research Project 1243 This proposal is based on the information developed through Research Project 1243, which was initiated in December 2014 due to a low-density report of paintings or pictures, as named in item The project was expanded to include items 56157, , , , , and History of Provisions The released value provisions of item and Note, item , for Paintings or Pictures, NOI, were adopted from the rails and first appeared in LTL-1, effective April 1, With the exception of the current class 110 in sub 1, the provisions have remained substantially unchanged to the present 1. The provisions of item , for Pictures, lithographed or printed on sheet steel, were also adopted from the rails and first appeared in LTL-1, effective April 1, The provisions have remained substantially unchanged to the present. Over the years, there have been numerous proposals and amendments resulting in the various other provisions involved herein. About Paintings or Pictures A picture is a visual representation of a person, object or scene 2, usually depicted on a two-dimensional space. For the purpose of this proposal, pictures are articles that are displayed for a viewer to make a statement or to serve an aesthetic or decorative purpose. Examples of pictures include drawings, photographs, posters and prints. Paintings are a type of picture that are created with paint, pigment or other mediums. 3 Paintings and pictures vary in significance and value, depending upon factors such as age, who the creator was or the material used. Paintings or pictures may be framed or shielded from external elements with glass. Examples of paintings or pictures are shown on the following page. 1 The current class 110 in sub 1 of item was assigned as a result of action taken on Special Docket No. 1 (issued July 20, 1949) to remain competitive with the rails. The change first appeared in NMFC A-1, effective July 10, (accessed November 2016) 3 (accessed November 2016) Subject 3, Page 6 of National Motor Freight Traffic Association, Inc.

7 Transportation Characteristics Density The information of record includes 14,036 density observations submitted by shippers and carriers, observed firsthand on CCSB dock surveys and gathered from the CCSB s Density Study 4. The densities range from 0.13 to pcf, with an overall average of 5.70 pcf. The data can be divided into three density groupings of less than 4 pcf, 4 but less than 8 pcf, and 8 pcf or greater. When evaluated on the basis of these three density groupings, the ranges and averages shown in the table below are calculated. Density Group (pcf) Density Range (pcf) Average Density (pcf) Less than but less than or greater The Density Study is part of an ongoing effort by the CCSB to collect information on actual shipments; it is not tied to any particular research project, nor does it target any particular product category. Carriers that choose to participate in the study periodically submit shipment data captured through their respective freight auditing programs. The data is identified by NMFC item, and only verifiable data points, which include the weight and the dimensions and/or cube of the shipping unit involved, are used National Motor Freight Traffic Association, Inc. Subject 3, Page 7 of 10

8 Handling and Stowability Paintings or pictures are generally tendered for shipment in fiberboard boxes, such as those shown on the right. Boxes of paintings or pictures also may be secured on lift truck skids or pallets. As with similar articles, these products may require a certain degree of care and attention when handling and stowing, and the packages are frequently marked with directional arrows, which may restrict how a carrier can construct the load within the vehicle. The handling units may also include shipper instructions or precautionary markings, such as Handle with Care and/or Fragile. However, there have been no reports of unusual or significant handling or stowability problems. Liability The involved articles are not perishable, hazardous in nature, unusually liable to damage, nor do they appear likely to damage other freight. There is no evidence of record indicating that they are unusually susceptible to theft. Shippers reported four to 17 claims per year, and carriers indicated no claims on the involved products. The value per pound ranges from $0.20 to $26.67, with an average value of $6.78 per pound. It is also noted item currently provides classes based on released value, subject to a minimum of 50 cents per pound up to a maximum of $5.00 per pound. These valuations, however, have been applicable since the provisions were adopted from the rail classification in When updated/adjusted for inflation using the Producer Price Index year-end figures from 1947 (the first year available) and 2015 (the last year available), the adjusted maximum valuation is $34.31 per pound. Relationship to CCSB Policies and Guidelines CCSB policy calls for classification provisions to be as clear as possible to preclude the potential for interpretation disputes. It also calls for combining descriptions embracing related commodities. Therefore, it would be in keeping with CCSB policies to cancel items 56157, , , , , and with reference to a new item, which would name Paintings or Pictures, NOI, framed or unframed, with or without glass under the Decorations Group. Notes, items 56158, 56159, , and would be canceled with no further application. CCSB policy also calls for classification provisions to reflect a commodity s known transportation characteristics. Information of record indicates that the involved articles range in density from 0.13 to pcf, with an overall average of 5.70 pcf. While there are some handling and stowability concerns inherent with shipping paintings or pictures, they do not appear to significantly impact the transportability of these products. Under CCSB guidelines, an average density of 5.70 pcf is generally associated with class 175, which calls for a minimum average density of 5 pcf. However, when commodities exhibit a range of densities, which are not accurately represented by a single class, CCSB policies state that density-based provisions may be established. When the data of record is evaluated based on the proposed Subject 3, Page 8 of National Motor Freight Traffic Association, Inc.

9 density breaks at 4 and 8 pcf, the average densities and classes shown in the table below emerge. Density Group (pcf) Average Density (pcf) CCSB Minimum Average Density Guideline (pcf) Class Based on CCSB Density Guidelines Less than but less than or greater It would be in keeping with CCSB policy and precedent to establish classes predicated on two density breaks at 4 and 8 pcf 5. Further, in interest of clarification, a new attendant Note would be established and referenced in the new item to clarify that the provisions also apply on printed posters and lenticular pictures. CCSB packaging policies state that the CCSB is to establish and maintain packaging rules and specifications as necessary to ensure that freight is adequately protected so as to withstand the normal rigors of the LTL environment. Therefore, a new Note would be established and referenced in the new item to require interior packing forms sufficient to afford adequate protection against damage. Precedent for this approach can be found in Docket , Subject 2 (June 2015), involving newspaper inserts or supplements, or magazines or periodicals, as named in item Density was determined to be the primary transportation characteristic since there were no significant negative handling, stowability or liability characteristics when the articles were properly packaged for shipment. Two density breaks at 22.5 and 30 pcf were proposed to provide a more accurate representation of the identified range in density, and a new Note was also proposed to provide additional packaging requirements. That proposal was approved as modified, and the provisions first appeared in Supplement 2 to NMF 100-AO, effective August 22, As indicated in the history, the released value provisions of item were adopted from the rail classification in When adjusted for inflation using the Producer Price Index (PPI), the current maximum released valuation of $5.00 per pound would be adjusted to $34.31 per pound. However, the highest per pound released valuation in the NMFC is $25.00 per pound, which is found in item , for radioactive materials, and item , for data processing machines, systems or devices, or components, parts or peripherals thereof 6. Adjusting the released valuation in the new item to not exceeding $25.00 per pound would recognize the impact of inflation and be within NMFC precedent. Concurrently, a new Note would be added to the new item stipulating that unless otherwise provided in individual participating carriers tariffs, articles moving under the provisions of the new item shall only be 5 The density provisions would include reference to Item (Rule) 170, the inadvertence clause. 6 See CCSB Docket , Subject 5 (September 2014) and Docket , Subject 2 (September 2012), respectively National Motor Freight Traffic Association, Inc. Subject 3, Page 9 of 10

10 accepted subject to a maximum liability of $25.00 per pound. The Note would further provide an inadvertence clause to address situations where a value is not declared, or declared in excess of $25.00 per pound. Concurrently, Item (Rule) 172, Limitation of Carrier Liability Where Value Is Not Declared By Shipper, would be amended to reflect the proposed changes to the released value provisions for paintings or pictures. Lastly, the provisions of item would be canceled and reestablished accordingly under the Decorations Group. Based on the information of record, this proposal, as docketed, is in keeping with CCSB policy and precedent. Subject 3, Page 10 of National Motor Freight Traffic Association, Inc.