Registration and Financial Security Requirements for Freight Forwarders; International Association of Movers Exemption Application, 78470-78472 [2013-30898]

Download as PDF emcdonald on DSK67QTVN1PROD with NOTICES 78470 Federal Register / Vol. 78, No. 248 / Thursday, December 26, 2013 / Notices Each submission must include the Agency name and the docket number for this Notice. Note that DOT posts all comments received without change to https://www.regulations.gov, including any personal information included in a comment. Please see the Privacy Act heading below. Docket: For access to the docket to read background documents or comments, go to https:// www.regulations.gov at any time or Room W12–140 on the ground level of the West Building, 1200 New Jersey Avenue SE., Washington, DC, 20590– 0001 between 9:00 a.m. and 5:00 p.m., Monday through Friday, except Federal holidays. The DMS is available 24 hours each day, 365 days each year. If you want acknowledgement that we received your comments, please include a self-addressed, stamped envelope or post card or print the acknowledgement page that appears after submitting them on-line. Privacy Act: Anyone is able to search the electronic form of all comments received into any of our dockets by the name of the individual submitting the comment (or of the person signing the comment, if submitted on behalf of an association, business, labor union, etc.). You may review DOT’s complete Privacy Act Statement for the Federal Docket Management System published in the Federal Register on January 17, 2008 (73 FR 3316), or you may visit https://edocket.access.gpo..gov/2008/ pdf/E8-785.pdf. FOR FURTHER INFORMATION CONTACT: Ms. Tura Gatling, Office of Registration and Safety Information, U.S. Department of Transportation, Federal Motor Carrier Safety Administration, West Building 6th Floor, 1200 New Jersey Avenue SE., Washington, DC 20590. Telephone: 202–385–2405/2412; email tura.gatling@dot.gov. mailto: Office hours are from 8:00 a.m. to 5:00 p.m., e.t., Monday through Friday, except Federal holidays. SUPPLEMENTARY INFORMATION: Title: Request for Revocation of Authority Granted. OMB Approval Number: 2126–0018. Type of Request: To revise a currently-approved information collection. Form Number: OCE–46. Respondents: Motor carriers, freight forwarders and property brokers. Estimated Number of Respondents: 3,000. Estimated Time per Response: 15 minutes. Expiration Date: May 31, 2014. Frequency of Response: On occasion. Estimated Total Annual Burden: 750 hours [3,000 annual Form OCE–46 filers VerDate Mar<15>2010 18:06 Dec 24, 2013 Jkt 232001 × 15 minutes/60 minutes per filing = 750]. Background: Title 49 of the United States Code (U.S.C.) authorizes the Secretary of Transportation (Secretary) to promulgate regulations governing the registration of for-hire motor carriers of regulated commodities (49 U.S.C. 13902), surface transportation freight forwarders (49 U.S.C. 13903), and property brokers (49 U.S.C. 13904). The FMCSA carries out this registration program under authority delegated by the Secretary (49 CFR 1.87). Under 49 U.S.C. 13905, each registration is effective from the date specified and remains in effect for such period as the Secretary determines appropriate by regulation. Section 13905(c) of title 49, U.S.C., grants the Secretary the authority to amend or revoke a registration at the registrant’s request. On complaint, or on the Secretary’s own initiative, the Secretary may also suspend, amend, or revoke any part of the registration of a motor carrier, broker, or freight forwarder for willful failure to comply with the regulations, an order of the Secretary, or a condition of its registration. Form OCE–46 is used by transportation entities to voluntarily apply for revocation of their registration authority in whole or in part. FMCSA uses the form to seek information concerning the registrant’s docket number, name and address, and the reasons for the revocation request. Public Comments Invited: You are asked to comment on any aspect of this revised information collection request, including: (1) The necessity and usefulness of the information collection for FMCSA to meet its goal in reducing truck crashes; (2) the accuracy of the estimated burdens; (3) ways to enhance the quality, usefulness, and clarity of the collected information; and (4) ways to minimize the collection burden without reducing the quality of the collected information. The agency will summarize and/or include your comments in the request for OMB’s clearance of this information collection. Issued under the authority of 49 CFR 1.87 on: December 6, 2013 G. Kelly Leone, Associate Administrator for Office of Research and Information Technology and Chief Information Officer. [FR Doc. 2013–30913 Filed 12–24–13; 8:45 am] BILLING CODE 4910–EX–P PO 00000 Frm 00146 Fmt 4703 Sfmt 4703 DEPARTMENT OF TRANSPORTATION Federal Motor Carrier Safety Administration [FMCSA–2013–0514] Registration and Financial Security Requirements for Freight Forwarders; International Association of Movers Exemption Application Federal Motor Carrier Safety Administration (FMCSA). ACTION: Notice of application for exemption; request for public comments. AGENCY: FMCSA announces that it has received an application from the International Association of Movers (IAM) for an exemption for all domestic freight forwarders which operate solely in the Department of Defense’s (DOD) household goods (HHG) program from the $75,000 bond requirement at 49 CFR 387.403(c). FMCSA promulgated this requirement pursuant to Section 32918 of the Moving Ahead for Progress in the 21st Century Act (MAP–21), now codified at 49 U.S.C. 13906. On September 5, 2013, FMCSA published guidance in the Federal Register concerning section 32918, and on October 1, 2013, the Agency published a final rule amending 49 CFR part 387 to set a minimum $75,000 surety bond/ trust fund requirement for brokers of property and freight forwarders. FMCSA requests comments from all interested parties on IAM’s exemption request. DATES: Comments must be received on or before January 27, 2014. ADDRESSES: You may submit comments, identified by docket number FMCSA– 2013–0514, by any of the following methods: • Federal eRulemaking Portal: https:// www.regulations.gov. • Fax: 1–202–493–2251. • Mail: Docket Management Facility (M–30), U.S. Department of Transportation, West Building Ground Floor, Room W12–140, 1200 New Jersey Avenue SE., Washington, DC 20590– 0001. • Hand delivery: Same as mail address above, between 9 a.m. and 5 p.m. ET, Monday through Friday, except Federal holidays. The telephone number is 202–366–9329. To avoid duplication, please use only one of these four methods. FOR FURTHER INFORMATION CONTACT: Mr. Thomas Yager, Chief of Driver and Carrier Operations, (202) 366–4001 or thomas.yager@dot.gov, FMCSA, Department of Transportation, 1200 New Jersey Ave. SE., Washington, DC 20590. SUMMARY: E:\FR\FM\26DEN1.SGM 26DEN1 Federal Register / Vol. 78, No. 248 / Thursday, December 26, 2013 / Notices Public Participation and Request for Comments FMCSA encourages you to participate in this proceeding by submitting comments, data, and related materials. All comments received will be posted without change to https:// www.regulations.gov and will include any personal and/or copyrighted information you provide. Submitting Comments If you submit a comment, please include the docket number for this proceeding (FMCSA–2013–0514), indicate the specific section of this document to which each comment applies, and provide a reason for each suggestion or recommendation. You may submit your comments and material online or by fax, mail, or hand delivery, but please use only one of these means. FMCSA recommends that you include your name and a mailing address, an email address, or a phone number in the body of your document so that FMCSA can contact you if there are questions regarding your submission. However, see the Privacy Act section below regarding availability of this information to the public. To submit your comment online, go to https://www.regulations.gov and click on the ‘‘Submit a Comment’’ box, which will then become highlighted in blue. In the ‘‘Document Type’’ drop down menu, select ‘‘Rules,’’ insert ‘‘FMCSA–2013– 0514’’ in the ‘‘Keyword’’ box, and click ‘‘Search.’’ When the new screen appears, click on ‘‘Submit a Comment’’ in the ‘‘Actions’’ column. If you submit your comments by mail or hand delivery, submit them in an unbound format, no larger than 81⁄2 by 11 inches, suitable for copying and electronic filing. If you submit comments by mail and would like to know that they reached the facility, please enclose a stamped, self-addressed postcard or envelope. FMCSA will consider all comments and material received during the comment period. emcdonald on DSK67QTVN1PROD with NOTICES Viewing Comments and Documents All public comments are available in the public docket. To view comments filed in this docket, go to https:// www.regulations.gov and click on the ‘‘Read Comments’’ box in the upper right hand side of the screen. Then, in the ‘‘Keyword’’ box, insert ‘‘FMCSA– 2013–0514’’ and click ‘‘Search.’’ Next, click the ‘‘Open Docket Folder’’ in the ‘‘Actions’’ column. Finally, in the ‘‘Title’’ column, click on the document you would like to review. If you do not have access to the Internet, you may VerDate Mar<15>2010 18:06 Dec 24, 2013 Jkt 232001 view the docket online by visiting the Docket Management Facility in Room W12–140 on the ground floor of the Department of Transportation West Building, 1200 New Jersey Avenue SE., Washington, DC 20590, between 9 a.m. and 5 p.m. ET, Monday through Friday, except Federal holidays. Privacy Act Anyone is able to search the electronic docket for all comments received into any of our dockets by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). You may review the DOT Privacy Act system of records notice for the Federal Docket Management System (FDMS) that DOT published in the Federal Register on January 17, 2008 (73 FR 3316). SUPPLEMENTARY INFORMATION: Legal Basis Section 13541 of title 49 of the United States Code (49 U.S.C. 13541) requires the Secretary of Transportation (Secretary) to exempt a person, class of persons, or a transaction or service from the application, in whole or in part, of a provision of 49 U.S.C. Part B (Chapters 131–149), or to use the exemption authority to modify the application of a provision of 49 U.S.C. Part B (Chapters 131–149) as it applies to such person, class, transaction, or service when the Secretary finds that the application of the provision: • Is not necessary to carry out the transportation policy of 49 U.S.C. 13101 • Is not needed to protect shippers from the abuse of market power or that the transaction or service is of limited scope; and • Is in the public interest. Further, the exemption authority provided by section 13541 ‘‘may not be used to relieve a person from the application of, and compliance with, any law, rule, regulation, standard, or order pertaining to cargo loss and damage [or] insurance . . ..’’ 49 U.S.C. 13541(e)(1). IAM seeks an exemption, on behalf of all domestic freight forwarders operating solely in the DOD’s HHG program, from the $75,000 financial security requirements at 49 CFR 387.403(c). Section 387.403(c)’s $75,000 surety bond/trust fund requirement is promulgated pursuant to Section 32918 of MAP–21 (codified at 49 U.S.C. 13906). Section 13906 is located in 49 U.S.C. Title 49 Part B (chapter 139) and therefore may be considered within the general scope of the exemption authority of section 13541. The Secretary may begin a section 13541 PO 00000 Frm 00147 Fmt 4703 Sfmt 4703 78471 exemption proceeding on the Secretary’s own initiative or on the application of an interested party. 49 U.S.C. 13541(b). See, e.g., Motor Carrier Financial Information Reporting Requirements-Request for Public Comments, 68 FR 48987 (Aug. 15, 2003). The Secretary may ‘‘specify the period of time during which an exemption’’ is effective and may revoke the exemption ‘‘to the extent specified, on finding that application of a provision of [49 U.S.C. Chapters 131– 149] to the person, class, or transportation is necessary to carry out the transportation policy of [49 U.S.C.] section 13101.’’ 49 U.S.C. 13541(c), (d). The Administrator of FMCSA has been delegated authority under 49 CFR 1.87 to carry out the functions vested in the Secretary by 49 U.S.C. 13541. Background On July 6, 2012, the President signed MAP–21 into law, which included a number of mandatory, non-discretionary changes to FMCSA programs. Some of these changes amended the financial security requirements applicable to property brokers and freight forwarders operating under FMCSA’s jurisdiction. Public Law 112–141, § 32918, 126 Stat. 405 (codified at 49 U.S.C. 13906(b) & (c)). On September 5, 2013, FMCSA published guidance (78 FR 54720) ‘‘concerning the implementation of certain provisions of . . . (MAP–21) concerning persons acting as a broker or a freight forwarder.’’ On October 1, 2013, FMCSA issued regulations requiring brokers and freight forwarders to have a $75,000 surety bond or trust fund in effect. 49 CFR 387.307(a), 387.403(c). 78 FR 60226, 60233. IAM Exemption Application In a November 25, 2013 email to FMCSA’s Office of Chief Counsel, IAM requested, on behalf of domestic freight forwarders operating solely under the DOD’s HHG program, an exemption from the requirement that freight forwarders obtain a $75,000 bond. IAM’s exemption request is included in this docket. IAM indicated that transportation service providers in the DOD’s HHG program must maintain motor carrier or freight forwarder authority from FMCSA. And, because freight forwarders must obtain the $75,000 bond as a result of FMCSA’s requirements, the DOD requires freight forwarders in their HHG program to obtain the requisite $75,000 bond or face losing their approval to continue operating in the DOD program. E:\FR\FM\26DEN1.SGM 26DEN1 78472 Federal Register / Vol. 78, No. 248 / Thursday, December 26, 2013 / Notices IAM argues that the new bond requirement is ‘‘geared toward commercial consumer protection’’ and therefore it is unnecessary to require freight forwarders in the DOD HHG program to obtain a $75,000 bond. It believes that the bond is an additional cost of doing business that is being mandated by FMCSA and that this cost is being passed on to DOD with no benefit to the DOD. IAM explains that DOD freight forwarders will be forced to add this cost to the rates they provide DOD. IAM argues there is a precedent for providing an exemption for transportation service providers for the DOD. It cites the Federal Maritime Commission (FMC) regulation at 46 CFR 515.4(e), exempting entities exclusively involved in the movement of Federal military and civilian household goods from certain FMC licensing requirements. Institution of Proceeding and Request for Comments emcdonald on DSK67QTVN1PROD with NOTICES Pursuant to 49 U.S.C. 13541(b), FMCSA is instituting a proceeding to consider whether domestic freight forwarders operating solely within the DOD HHG program should be exempt from the new $75,000 financial security requirements at 49 U.S.C. 13906(c) and 49 CFR 387.403(c). FMCSA requests public comment, and comment from DOD and FMC, on the IAM exemption application. Specifically, FMCSA requests comments on whether the Agency should grant or deny the application, in whole or in part. The Agency also requests comments on how it should apply 49 U.S.C. 13541(a)(1–3) to IAM’s request. Additionally, FMCSA seeks comment on whether section 13541(e)(1)’s reference to ‘‘cargo loss and damage’’ and/or ‘‘insurance’’ bars FMCSA from granting the requested exemption as a matter of law and without application of the 3-part statutory test under section 13541(a). Commenters are encouraged to provide data or information concerning the impact of the new bond requirements and/or the impact of granting this exemption request on carriers, brokers, freight forwarders and shippers. Issued on: December 18, 2013. Larry W. Minor, Associate Administrator for Policy. [FR Doc. 2013–30898 Filed 12–24–13; 8:45 am] BILLING CODE 4910–EX–P VerDate Mar<15>2010 18:06 Dec 24, 2013 Jkt 232001 DEPARTMENT OF TRANSPORTATION Public Participation and Request for Comments Federal Motor Carrier Safety Administration FMCSA encourages you to participate in this proceeding by submitting comments, data, and related materials. All comments received will be posted without change to https:// www.regulations.gov and will include any personal and/or copyrighted information you provide. [FMCSA–2013–0513] Registration and Financial Security Requirements for Brokers of Property and Freight Forwarders; Association of Independent Property Brokers and Agents’ Exemption Application Federal Motor Carrier Safety Administration (FMCSA). ACTION: Notice of application for exemption; request for public comments. AGENCY: FMCSA announces that it has received an application from the Association of Independent Property Brokers and Agents (AIPBA) for an exemption for all property brokers and freight forwarders from the $75,000 bond provision included in section 32918 of the Moving Ahead for Progress in the 21st Century Act (MAP–21), now codified in 49 U.S.C. 13906. AIPBA filed its request pursuant to 49 U.S.C. 13541. On September 5, 2013, FMCSA published guidance in the Federal Register concerning section 32918 and on October 1, 2013, the Agency published a final rule amending 49 CFR part 387 to set a minimum $75,000 surety bond/trust fund requirement for brokers of property and freight forwarders. FMCSA requests comments from all interested parties on AIPBA’s exemption request. DATES: Comments must be received on or before January 27, 2014. ADDRESSES: You may submit comments, identified by docket number FMCSA– 2013–0513, by any of the following methods: • Federal eRulemaking Portal: https:// www.regulations.gov. • Fax: 1–202–493–2251. • Mail: Docket Management Facility (M–30), U.S. Department of Transportation, West Building Ground Floor, Room W12–140, 1200 New Jersey Avenue SE., Washington, DC 20590– 0001. • Hand delivery: Same as mail address above, between 9 a.m. and 5 p.m. ET, Monday through Friday, except Federal holidays. The telephone number is 202–366–9329. To avoid duplication, please use only one of these four methods. FOR FURTHER INFORMATION CONTACT: Mr. Thomas Yager, Chief of Driver and Carrier Operations, (202) 366–4001 or thomas.yager@dot.gov, FMCSA, Department of Transportation, 1200 New Jersey Ave., SE., Washington, DC 20590. SUMMARY: PO 00000 Frm 00148 Fmt 4703 Sfmt 4703 Submitting Comments If you submit a comment, please include the docket number for this proceeding (FMCSA–2013–0513), indicate the specific section of this document to which each comment applies, and provide a reason for each suggestion or recommendation. You may submit your comments and material online or by fax, mail, or hand delivery, but please use only one of these means. FMCSA recommends that you include your name and a mailing address, an email address, or a phone number in the body of your document so that FMCSA can contact you if there are questions regarding your submission. However, see the Privacy Act section below regarding availability of this information to the public. To submit your comment online, go to https://www.regulations.gov and click on the ‘‘Submit a Comment’’ box, which will then become highlighted in blue. In the ‘‘Document Type’’ drop down menu, select ‘‘Rules,’’ insert ‘‘FMCSA–2013– 0513’’ in the ‘‘Keyword’’ box, and click ‘‘Search.’’ When the new screen appears, click on ‘‘Submit a Comment’’ in the ‘‘Actions’’ column. If you submit your comments by mail or hand delivery, submit them in an unbound format, no larger than 81⁄2 by 11 inches, suitable for copying and electronic filing. If you submit comments by mail and would like to know that they reached the facility, please enclose a stamped, self-addressed postcard or envelope. FMCSA will consider all comments and material received during the comment period. Viewing Comments and Documents AIPBA’s exemption application and all public comments are available in the public docket. To view comments filed in this docket, go to https:// www.regulations.gov and click on the ‘‘Read Comments’’ box in the upper right hand side of the screen. Then, in the ‘‘Keyword’’ box, insert ‘‘FMCSA– 2013–0513’’ and click ‘‘Search.’’ Next, click the ‘‘Open Docket Folder’’ in the ‘‘Actions’’ column. Finally, in the ‘‘Title’’ column, click on the document you would like to review. If you do not E:\FR\FM\26DEN1.SGM 26DEN1

Agencies

[Federal Register Volume 78, Number 248 (Thursday, December 26, 2013)]
[Notices]
[Pages 78470-78472]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-30898]


-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

[FMCSA-2013-0514]


Registration and Financial Security Requirements for Freight 
Forwarders; International Association of Movers Exemption Application

AGENCY: Federal Motor Carrier Safety Administration (FMCSA).

ACTION: Notice of application for exemption; request for public 
comments.

-----------------------------------------------------------------------

SUMMARY: FMCSA announces that it has received an application from the 
International Association of Movers (IAM) for an exemption for all 
domestic freight forwarders which operate solely in the Department of 
Defense's (DOD) household goods (HHG) program from the $75,000 bond 
requirement at 49 CFR 387.403(c). FMCSA promulgated this requirement 
pursuant to Section 32918 of the Moving Ahead for Progress in the 21st 
Century Act (MAP-21), now codified at 49 U.S.C. 13906. On September 5, 
2013, FMCSA published guidance in the Federal Register concerning 
section 32918, and on October 1, 2013, the Agency published a final 
rule amending 49 CFR part 387 to set a minimum $75,000 surety bond/
trust fund requirement for brokers of property and freight forwarders. 
FMCSA requests comments from all interested parties on IAM's exemption 
request.

DATES: Comments must be received on or before January 27, 2014.

ADDRESSES: You may submit comments, identified by docket number FMCSA-
2013-0514, by any of the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov.
     Fax: 1-202-493-2251.
     Mail: Docket Management Facility (M-30), U.S. Department 
of Transportation, West Building Ground Floor, Room W12-140, 1200 New 
Jersey Avenue SE., Washington, DC 20590-0001.
     Hand delivery: Same as mail address above, between 9 a.m. 
and 5 p.m. ET, Monday through Friday, except Federal holidays. The 
telephone number is 202-366-9329.
    To avoid duplication, please use only one of these four methods.

FOR FURTHER INFORMATION CONTACT: Mr. Thomas Yager, Chief of Driver and 
Carrier Operations, (202) 366-4001 or thomas.yager@dot.gov, FMCSA, 
Department of Transportation, 1200 New Jersey Ave. SE., Washington, DC 
20590.

[[Page 78471]]

Public Participation and Request for Comments

    FMCSA encourages you to participate in this proceeding by 
submitting comments, data, and related materials. All comments received 
will be posted without change to https://www.regulations.gov and will 
include any personal and/or copyrighted information you provide.
Submitting Comments
    If you submit a comment, please include the docket number for this 
proceeding (FMCSA-2013-0514), indicate the specific section of this 
document to which each comment applies, and provide a reason for each 
suggestion or recommendation. You may submit your comments and material 
online or by fax, mail, or hand delivery, but please use only one of 
these means. FMCSA recommends that you include your name and a mailing 
address, an email address, or a phone number in the body of your 
document so that FMCSA can contact you if there are questions regarding 
your submission. However, see the Privacy Act section below regarding 
availability of this information to the public.
    To submit your comment online, go to https://www.regulations.gov and 
click on the ``Submit a Comment'' box, which will then become 
highlighted in blue. In the ``Document Type'' drop down menu, select 
``Rules,'' insert ``FMCSA-2013-0514'' in the ``Keyword'' box, and click 
``Search.'' When the new screen appears, click on ``Submit a Comment'' 
in the ``Actions'' column. If you submit your comments by mail or hand 
delivery, submit them in an unbound format, no larger than 8\1/2\ by 11 
inches, suitable for copying and electronic filing. If you submit 
comments by mail and would like to know that they reached the facility, 
please enclose a stamped, self-addressed postcard or envelope.
    FMCSA will consider all comments and material received during the 
comment period.
Viewing Comments and Documents
    All public comments are available in the public docket. To view 
comments filed in this docket, go to https://www.regulations.gov and 
click on the ``Read Comments'' box in the upper right hand side of the 
screen. Then, in the ``Keyword'' box, insert ``FMCSA-2013-0514'' and 
click ``Search.'' Next, click the ``Open Docket Folder'' in the 
``Actions'' column. Finally, in the ``Title'' column, click on the 
document you would like to review. If you do not have access to the 
Internet, you may view the docket online by visiting the Docket 
Management Facility in Room W12-140 on the ground floor of the 
Department of Transportation West Building, 1200 New Jersey Avenue SE., 
Washington, DC 20590, between 9 a.m. and 5 p.m. ET, Monday through 
Friday, except Federal holidays.
Privacy Act
    Anyone is able to search the electronic docket for all comments 
received into any of our dockets by the name of the individual 
submitting the comment (or signing the comment, if submitted on behalf 
of an association, business, labor union, etc.). You may review the DOT 
Privacy Act system of records notice for the Federal Docket Management 
System (FDMS) that DOT published in the Federal Register on January 17, 
2008 (73 FR 3316).

SUPPLEMENTARY INFORMATION: 

Legal Basis

    Section 13541 of title 49 of the United States Code (49 U.S.C. 
13541) requires the Secretary of Transportation (Secretary) to exempt a 
person, class of persons, or a transaction or service from the 
application, in whole or in part, of a provision of 49 U.S.C. Part B 
(Chapters 131-149), or to use the exemption authority to modify the 
application of a provision of 49 U.S.C. Part B (Chapters 131-149) as it 
applies to such person, class, transaction, or service when the 
Secretary finds that the application of the provision:
     Is not necessary to carry out the transportation policy of 
49 U.S.C. 13101
     Is not needed to protect shippers from the abuse of market 
power or that the transaction or service is of limited scope; and
     Is in the public interest.
    Further, the exemption authority provided by section 13541 ``may 
not be used to relieve a person from the application of, and compliance 
with, any law, rule, regulation, standard, or order pertaining to cargo 
loss and damage [or] insurance . . ..'' 49 U.S.C. 13541(e)(1).
    IAM seeks an exemption, on behalf of all domestic freight 
forwarders operating solely in the DOD's HHG program, from the $75,000 
financial security requirements at 49 CFR 387.403(c). Section 
387.403(c)'s $75,000 surety bond/trust fund requirement is promulgated 
pursuant to Section 32918 of MAP-21 (codified at 49 U.S.C. 13906). 
Section 13906 is located in 49 U.S.C. Title 49 Part B (chapter 139) and 
therefore may be considered within the general scope of the exemption 
authority of section 13541. The Secretary may begin a section 13541 
exemption proceeding on the Secretary's own initiative or on the 
application of an interested party. 49 U.S.C. 13541(b). See, e.g., 
Motor Carrier Financial Information Reporting Requirements-Request for 
Public Comments, 68 FR 48987 (Aug. 15, 2003). The Secretary may 
``specify the period of time during which an exemption'' is effective 
and may revoke the exemption ``to the extent specified, on finding that 
application of a provision of [49 U.S.C. Chapters 131-149] to the 
person, class, or transportation is necessary to carry out the 
transportation policy of [49 U.S.C.] section 13101.'' 49 U.S.C. 
13541(c), (d).
    The Administrator of FMCSA has been delegated authority under 49 
CFR 1.87 to carry out the functions vested in the Secretary by 49 
U.S.C. 13541.

Background

    On July 6, 2012, the President signed MAP-21 into law, which 
included a number of mandatory, non-discretionary changes to FMCSA 
programs. Some of these changes amended the financial security 
requirements applicable to property brokers and freight forwarders 
operating under FMCSA's jurisdiction. Public Law 112-141, Sec.  32918, 
126 Stat. 405 (codified at 49 U.S.C. 13906(b) & (c)).
    On September 5, 2013, FMCSA published guidance (78 FR 54720) 
``concerning the implementation of certain provisions of . . . (MAP-21) 
concerning persons acting as a broker or a freight forwarder.'' On 
October 1, 2013, FMCSA issued regulations requiring brokers and freight 
forwarders to have a $75,000 surety bond or trust fund in effect. 49 
CFR 387.307(a), 387.403(c). 78 FR 60226, 60233.

IAM Exemption Application

    In a November 25, 2013 email to FMCSA's Office of Chief Counsel, 
IAM requested, on behalf of domestic freight forwarders operating 
solely under the DOD's HHG program, an exemption from the requirement 
that freight forwarders obtain a $75,000 bond. IAM's exemption request 
is included in this docket.
    IAM indicated that transportation service providers in the DOD's 
HHG program must maintain motor carrier or freight forwarder authority 
from FMCSA. And, because freight forwarders must obtain the $75,000 
bond as a result of FMCSA's requirements, the DOD requires freight 
forwarders in their HHG program to obtain the requisite $75,000 bond or 
face losing their approval to continue operating in the DOD program.

[[Page 78472]]

    IAM argues that the new bond requirement is ``geared toward 
commercial consumer protection'' and therefore it is unnecessary to 
require freight forwarders in the DOD HHG program to obtain a $75,000 
bond. It believes that the bond is an additional cost of doing business 
that is being mandated by FMCSA and that this cost is being passed on 
to DOD with no benefit to the DOD. IAM explains that DOD freight 
forwarders will be forced to add this cost to the rates they provide 
DOD.
    IAM argues there is a precedent for providing an exemption for 
transportation service providers for the DOD. It cites the Federal 
Maritime Commission (FMC) regulation at 46 CFR 515.4(e), exempting 
entities exclusively involved in the movement of Federal military and 
civilian household goods from certain FMC licensing requirements.

Institution of Proceeding and Request for Comments

    Pursuant to 49 U.S.C. 13541(b), FMCSA is instituting a proceeding 
to consider whether domestic freight forwarders operating solely within 
the DOD HHG program should be exempt from the new $75,000 financial 
security requirements at 49 U.S.C. 13906(c) and 49 CFR 387.403(c). 
FMCSA requests public comment, and comment from DOD and FMC, on the IAM 
exemption application. Specifically, FMCSA requests comments on whether 
the Agency should grant or deny the application, in whole or in part. 
The Agency also requests comments on how it should apply 49 U.S.C. 
13541(a)(1-3) to IAM's request. Additionally, FMCSA seeks comment on 
whether section 13541(e)(1)'s reference to ``cargo loss and damage'' 
and/or ``insurance'' bars FMCSA from granting the requested exemption 
as a matter of law and without application of the 3-part statutory test 
under section 13541(a). Commenters are encouraged to provide data or 
information concerning the impact of the new bond requirements and/or 
the impact of granting this exemption request on carriers, brokers, 
freight forwarders and shippers.

    Issued on: December 18, 2013.
Larry W. Minor,
Associate Administrator for Policy.
[FR Doc. 2013-30898 Filed 12-24-13; 8:45 am]
BILLING CODE 4910-EX-P

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