CCSB Contact: William F. Mascaro Telephone (703) Item Description Class

Transcription

1 Re: Household Goods, including Personal Effects or Military Baggage CCSB Contact: William F. Mascaro Telephone (703) Proponent: Commodity Classification Standards Board Present Classification Provisions Item Description Class HOUSEHOLD GOODS GROUP: subject to item Household Goods, as described in Note, item , including Personal Effects or Military Baggage, in shipping vans or prepared for shipment as required by Note, item , other than shipments moving under the U.S. Department of Defense Personal Property Program; subject to Note, item ; each article released in value in accordance with the following, see Note, item : Sub 1 Released value not exceeding 10 cents per pound Sub 2 Released value exceeding 10 cents but not exceeding 20 cents per pound Sub 3 Released value exceeding 20 cents but not exceeding 50 cents per Sub 4 pound Released value exceeding 50 cents but not exceeding $2.00 per pound Sub 5 Released value exceeding $2.00 but not exceeding $5.00 per pound Household Goods, as described in Note, item , including Personal Effects or Military Baggage, packed in accordance with Note, item , moving under the U.S. Department of Defense Personal Property Program, see Note, item NOTE Pursuant to 10 USC Chapter 157, 2636a, enacted by Congress on November 26, 2003, as amended by the Department of Defense Authorizations Act for Fiscal Year 2007, Transportation Service Providers (TSPs) are required to provide Full Replacement Value (FRV) coverage to all customers of the U.S. Department of Defense Personal Property Program. FRV is defined as the greater of: (1) $5,000 per shipment; or (2) $4.00 times the net weight of the household goods shipped or $4.00 times the gross weight of the unaccompanied baggage shipped, in pounds, not to exceed $50,000. This definition of FRV does not apply on motor vehicles, including automobiles or motorcycles Household Goods, as described in Note, item , including Personal Effects or Military Baggage, not packed according to Note, item National Motor Freight Traffic Association, Inc. Subject 1, Page 1 of 10

2 Present Classification Provisions Continued Item Description Class NOTE Provisions on household goods apply only on second-hand (used) household or personal effects such as clothing, furniture or furnishings for residence with not to exceed one piano; and with each shipment weighing 12,000 pounds or more, there may also be included not to exceed one second-hand (used) freight (not driving trucks for freight vehicles or fire apparatus) or passenger automobile, or one second-hand (used) motorcycle. Does not apply on articles of extraordinary value nor on goods shipped for sale or speculation NOTE Household goods in shipping vans, boxes or crates exceeding 400 cubic feet displacement or exceeding 16 feet in length will be subject to the applicable minimum charges provided in carriers tariffs NOTE The following packing requirements must be observed, except when shipments are made in iron or steel or iron or steel and wood wheeled carriers completely filled, and except also that trunks or articles of furniture (when themselves packed or prepared for shipment as required by this Note) may be used as substitutes for boxes: Bedding, in boxes, crates, drums, wrapped bundles or wrapped rolls; Books, in boxes or drums; Carpets or rugs, in boxes, crates, drums, wrapped bundles or wrapped rolls; Clothing, draperies or linens, in boxes or drums; Furniture having surfaces liable to damage, or upholstered furniture, must be fully protected by boxing, crating or wrapping. Excelsior pads or their equivalent must be used when necessary to properly protect the articles; Glassware, packed in boxes or drums; Marble slabs, mirrors or pictures, in boxes or crates; Musical instruments, in boxes or drums; Pottery, packed in boxes or drums; Refrigerators, mechanical, must have compressor unit held securely in position, in boxes or crates, or wrapped in fiberboard and skidded, or wrapped in quilted pads; Sewing machines, in boxes or crates; Stoves or ranges, in boxes or crates when with shipments weighing less than 12,000 pounds; Trunks containing household or personal effects, when in shipments weighing less than 12,000 pounds, must be corded and locked or sealed, or in boxes or crates; All other household goods, requiring protection against breakage or chafing, must be in bags, boxes, drums, wrapped bundles or crates. Subject 1, Page 2 of National Motor Freight Traffic Association, Inc.

3 Present Classification Provisions Continued Item Description Class NOTE The release, which shall be deemed to relate to each article separately and not to the shipment as a whole, must be entered on the shipping order and bill of lading in the following form: The agreed or declared value of each article in this shipment 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 Order No. MC-314, as amended April 23, 1952 and August 9, 1966, FF-56, of September 14, 1950.) ITEM 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 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 1 Published in Supplement 5 to NMF 100-AN, issued on October 30, 2014 with an effective date of November 29, National Motor Freight Traffic Association, Inc. Subject 1, Page 3 of 10

4 Present 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. Proposed Classification Provisions Item Description Class HOUSEHOLD GOODS GROUP: subject to item Household Goods, Personal Effects or Military Baggage, see Note, item A-NEW, other than shipments moving under the U.S. Department of Defense Personal Property Program, see Note, item B-NEW, each article released to a value not exceeding $25.00 per pound, see Note, item C-NEW: Sub 1 In boxes or crates, see Notes, items D-NEW and E-NEW Sub 2 Other than packaged as set forth in sub 1, see Note, item D-NEW... 0 A-NEW NOTE Provisions for household goods, personal effects or military baggage apply only on second-hand (used) household or personal effects such as clothing, personal property, furniture or furnishings for residence with not to exceed one piano. There may also be included not to exceed one second-hand (used) motor vehicle. Provisions do not apply on articles of extraordinary value, nor on goods shipped for sale or speculation. B-NEW NOTE For provisions applicable to household goods, personal effects or military baggage moving under the U.S. Department of Defense Personal Property Program, see item C-NEW NOTE Unless otherwise provided in individual participating carriers tariffs, articles moving under the provisions of item shall only be accepted subject to a maximum liability per article of $25.00 per pound. If shipper fails to declare a value, or declares a value per article 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 per article 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. D-NEW NOTE Household goods, personal effects or military baggage susceptible to breakage or having surfaces liable to damage must be protected by packing materials necessary to afford adequate protection against breakage or damage. Subject 1, Page 4 of National Motor Freight Traffic Association, Inc.

5 Proposed Classification Provisions Continued Item Description Class HOUSEHOLD GOODS GROUP: subject to item E-NEW NOTE The following departures from packing requirements are permitted: 1. Carpets or rugs may be shipped in wrapped bundles or rolls. 2. Mattresses or upholstered box springs may be shipped wrapped in fiberboard, plastic film or quilted pads. 3. Refrigerators may be shipped wrapped in fiberboard and skidded, or wrapped in quilted pads Household Goods, Personal Effects or Military Baggage, see Note, item A-NEW, moving under the U.S. Department of Defense Personal Property Program, see Note, item , in boxes or crates, see Notes, items D-NEW and E-NEW... No Change NOTE No Change Household Goods, as described in Note, item , including Personal Effects or Military Baggage, not packed according to Note, item Cancel; see item NOTE Cancel; see item A-NEW NOTE Cancel; no further application NOTE Cancel; no further application NOTE Cancel; no further application. 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 2014 National Motor Freight Traffic Association, Inc. Subject 1, Page 5 of 10

6 Proposed Classification Provisions Concluded ITEM NO. DESCRIPTION VALUE LIMITATION 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, $25.00 per other than shipments moving under the U.S. Department of 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. Analysis Research Project 1217 This proposal is based on information developed through Research Project 1217, which was initiated in February 2014 to review the transportation characteristics of household goods moving under the provisions of items , and , as shown herein under the Present Classification Provisions. Items , and are general provisions for household goods, personal effects and military baggage. Item provides classes predicated on released value for household goods, personal effects or military baggage that are prepared for shipment in accordance with Note, item , which sets forth minimum packing requirements. Item applies on shipments of household goods, personal effects or military baggage moving under the provisions of the U.S. Department of Defense Personal Property Program. Item also references Note, item for packing requirements, however it provides a 0 class. Item provides for household goods, personal effects or military baggage not prepared for shipment in accordance with Note, item Like item , item also provides a 0 class. In accordance with Sec. 3 of Item (Rule) 420, Classification of Articles General, when a 0 is shown in the class column, such articles are subject to rates and regulations of individual carriers. These provisions apply on a multitude of different articles that belong to an individual(s) or household and which are being transported from one residence or location to another. Given that anyone who has ever moved, or will ever move, may be a potential shipper of household goods, a questionnaire survey was deemed to be unfeasible. Notice of this Subject 1, Page 6 of National Motor Freight Traffic Association, Inc.

7 proposal has been provided to NMFC participants and to subscribers to the NMFC and ClassIT. History of Provisions The provisions of items and were adopted from the rail classification in 1936 with essentially the same structure and at ratings equivalent to the currently applicable classes. They have remained substantially unchanged since that time. The provisions of item , applying on shipments of household goods moving under the U.S. Department of Defense Personal Property Program, were established to reflect a DOD regulatory requirement. Notice was provided in Section III of Docket (February 2008), showing changes made necessary by law, by order of a regulatory body, or for clarification, and the provisions first appeared in NMF 100-AH, effective February 16, The provisions have remained unchanged since that time. About Household Goods As previously mentioned, the provisions for household goods, personal effects or military baggage apply on a multitude of different articles that belong to an individual(s) or household and which are being transported from one residence or location to another. While the general definition of what constitutes household goods, personal effects or military baggage has remained fairly constant over time, the variety and nature of articles considered to be household goods has changed dramatically. Many articles that were commonplace in 1936 are substantially different or no longer exist today, while many new articles that did not exist then are found in homes today. Given that these provisions are at least 78 years old, they contain terms, references and packaging requirements that do not reflect the current nature of today s shipments of household goods, personal effects or military baggage, nor the LTL transportation environment. For example, item refers to household goods, personal effects or military baggage tendered in shipping vans, which is an archaic term. Additionally, items , and all reference Note, item , which sets forth minimum packaging requirements for shipments of household goods, personal effects or military baggage. Note, item lists various types of articles and specifies how those articles are to be packaged. However, there is no reference to personal or consumer electronics, such as televisions and computers. Also, the reference to drums, which alternates with boxes as an allowable packaging method per Item (Rule) 685, is archaic as drums are typically no longer considered to be a type of packaging for non-bulk commodities. Distinguishing between individual articles packed in accordance with Note, item and those that are not packed in accordance with the Note within a given shipment of household goods may be difficult at best. This is further complicated by the fact that item provides classes predicated on released value when packaged in accordance with Note, item , however there is no inadvertence clause in the event that a released value is not stated on the shipping papers. Situations involving articles packed and not packed in accordance with Note, item and released or not released as to value may pose difficulties for carriers handling such shipments National Motor Freight Traffic Association, Inc. Subject 1, Page 7 of 10

8 Transportation Characteristics Density Information of record incorporates density observations obtained from carriersupplied data, CCSB dock surveys and the CCSB s Density Study 2. Combined, these sources yield 243,854 density observations on articles reported to be moving per items , and , and result in a density range from 0.48 to pcf, with an average density of 6.49 pcf. A frequency distribution of the overall density range is provided below. Frequency Distribution % of Figures in Interval 80.00% 60.00% 40.00% 20.00% 0.00% 75.72% 0.00% 0.33% 3.75% 7.41% 9.25% 2.00% 0.72% 0.54% 0.14% 0.15% Density Intervals (pcf) As depicted in the frequency distribution, while shipments of household goods, personal effects or military baggage have been found to have a wide density range, over 75% of the almost one-quarter of a million density observations of record are within the 6 to 8 pcf density interval, and over 92% of the observations are between 4 and 10 pcf. Handling and Stowability Based on the information available, shipments of household goods, personal effects or military baggage moving under the provisions of the NMFC are generally tendered in boxes, or wooden crates that usually provide access for forklift tines. They may also be tendered unitized on lift truck skids or pallets. Handling and stowability should be comparable to that of other like-packaged freight, and there have been no reports of unusual or significant handling or stowing problems. 2 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. Subject 1, Page 8 of National Motor Freight Traffic Association, Inc.

9 Liability While no current information is available on the value of shipments moving as household goods, personal effects or military baggage, it can be safely assumed that shipments of such articles may exhibit a considerable range in value. It is also noted that item currently provides classes based on released value, subject to a minimum value per article of 10 cents per pound up to a maximum value per article 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 yearend figures from 1947 (the first year available) and 2013 (the last year available), the adjusted maximum valuation is $35.47 per pound per article. Based on the information available, when packaged in boxes or crates, there is no indication that the remaining liability elements would significantly impact the evaluation of household goods. Relationship to CCSB Policies and Guidelines CCSB policy calls for classification provisions to reflect a commodity s known transportation characteristics. Information of record indicates that the involved household goods, personal effects or military baggage range in density from 0.48 to pcf, with an average density of 6.49 pcf. While the identified density range is wide, over 75% of the density observations are found in the 6 but less than 8 pcf density interval and over 92% of the observations are between 4 and 10 pcf. This indicates that the identified average density of 6.49 pcf is reflective of the overall density characteristic. Under CCSB guidelines, an average density of 6.49 pcf is generally associated with class 150, which calls for a minimum average density of 6 pcf. CCSB policy also calls for classification provisions to be as clear as possible to help preclude interpretation disputes. The current provisions have been the source of interpretation difficulties. This proposal would cancel the provisions of item with reference to item Concurrently, item would be amended to provide classes based on packaging. Household goods, personal effects or military baggage would be assigned class 150 when tendered in boxes or crates, with reference to a new Note allowing certain packaging exceptions, and a 0 class when not so packaged. Item would be amended to specify that articles be tendered in boxes or crates, and reference the same Note allowing certain packaging exceptions. Notes would be established to clarify the nature of articles considered to be household goods, personal effects or military baggage, and to direct the Classification user to the provisions of item when shipments are moving under the U.S. Department of Defense Personal Property Program. A Note would also be added to specify that articles susceptible to breakage or having surfaces liable to damage must be protected by adequate packing materials. Notes, items , , and would be canceled National Motor Freight Traffic Association, Inc. Subject 1, Page 9 of 10

10 As indicated in the history, the released value provisions in 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 $35.47 per pound. However, the highest per pound released valuation in the NMFC is $25.00 per pound, which is found in items , for radioactive materials, and , for data processing machines, systems or devices, or components, parts or peripherals thereof 3. Adjusting the released valuation in item to not exceeding $25.00 per pound per article would recognize the impact of inflation and be within NMFC precedent. Concurrently, a new Note would be added to item stipulating that unless otherwise provided in individual participating carriers tariffs, articles moving under the provisions of item shall only be accepted subject to a maximum liability of $25.00 per pound per article. The Note would further provide for an inadvertence clause to address situations where a value is not declared, or declared in excess of $25.00 per pound per article. 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 in item Based on the information of record, this proposal, as docketed, is in keeping with CCSB policy and precedent. 3 See CCSB Docket , Subject 5 (September 2014) and Docket , Subject 2 (September 2012). Subject 1, Page 10 of National Motor Freight Traffic Association, Inc.