DOCKET JANUARY 2015

Transcription

1 DOCKET JANUARY 2015 A public meeting on National Motor Freight Classification provisions will be held on January 27, 2015 at: Omni La Mansion del Rio 112 College Street San Antonio, Texas ISSUED: December 23, 2014

2 COMMODITY CLASSIFICATION STANDARDS BOARD DOCKET On Tuesday, January 27, 2015, the Commodity Classification Standards Board (CCSB) will conduct a public meeting to consider proposals for amending the National Motor Freight Classification (NMFC ). The meeting will be held at the Omni La Mansion del Rio, 112 College Street, San Antonio, Texas 78205, commencing at 11:00 am Central Time. Section I of this docket provides the CCSB analyses for proposed amendments that will be considered at the meeting. Each analysis includes the full text of the proposal, the CCSB contact and the identity of the proponent. Section II of this docket provides notice of proposed amendments to the CCSB s Procedures, which the CCSB will consider at the meeting on January 27, The exact language of the proposed amendments is shown. Section III of this docket provides notice of classification changes made necessary by law, by order of a regulatory body, or for clarification, simplification or uniformity. The symbol indicates a proposed classification change. The symbol indicates that the commodities may be subject to federal regulations concerning the shipping of hazardous materials. The symbol indicates a registered trade name or registered trademark. The symbol indicates a trademark. Public Docket Files Supporting data and other relevant information pertaining to each proposal in Section I herein are contained in a Public Docket File. The public files are available online without charge at They are organized by docket and subject numbers, and each file is indexed for ease of reference. Interested persons who do not have Internet access can obtain the public docket file for a particular proposal from the CCSB contact, subject to a charge for copying and transmitting the document(s) requested. Commodity Classification Standards Board ccsb@nmfta.org Chairman Joel L. Ringer Member George M. Beck Member Daniel E. Horning Member William F. Mascaro Member Donald A. Newell Packaging and Classification Consultant Erin N. Topper Counsel John R. Bagileo Page i

3 COMMODITY CLASSIFICATION STANDARDS BOARD DOCKET The Commodity Classification Standards Board invites all interested persons to participate in the classification process. Anyone having an interest in a proposal listed in this docket is welcome to attend the meeting and/or submit a statement relating to the transportation characteristics of the product(s) involved or relevant to packaging materials or methods in connection with proposed packaging amendments. Statements should include any underlying studies, supporting data and other pertinent information. Written submissions will be included in the respective public docket file. Decisions on docketed proposals will be based on the information contained in the public docket file. Any person may become a Party of Record to a docketed proposal by submitting a written request prior to the meeting. The proponent(s) of a proposal and anyone who attends the meeting in connection with a proposal or submits a written statement prior to the meeting will be registered as a party of record to that proposal. Parties of record to a docketed proposal will receive a disposition of the proposal and will be entitled to seek reconsideration or arbitration should they disagree with that disposition. (One does not have to be a party of record to request reconsideration.) Our address is: Commodity Classification Standards Board, 1001 North Fairfax Street, Suite 600, Alexandria, Virginia 22314, and our fax number is: Written statements may also be ed to the CCSB contact involved. To schedule an appearance at the meeting, or if you require further information, please get in touch with the CCSB contact. Anyone requesting assistance in accordance with the Americans with Disabilities Act will be accommodated. The CCSB s policies and procedures as well as other information on the CCSB and the National Motor Freight Traffic Association are available online at Amendments to the National Motor Freight Classification resulting from the proposals in this docket will be published in a supplement to the NMFC, unless reconsideration is granted or arbitration is sought in accordance with the CCSB s rules. The supplement is scheduled to be issued on March 19, 2015, with an effective date of April 18, Future CCSB Dockets Docket Docket Docket Closing Date April 2, 2015 July 30, 2015 Docket Issue Date April 30, 2015 August 27, 2015 CCSB Meeting Date June 1, 2015 September 29, 2015 Dates are as currently scheduled and subject to change. For up-to-date information, go to Page ii

4 COMMODITY CLASSIFICATION STANDARDS BOARD DOCKET INDEX OF SUBJECTS (PROPOSALS) DESCRIPTION SUBJECT DESCRIPTION SUBJECT A Air Curtains or Air Doors... 6 B Books, agenda or appointment... 8 C Cabinets... 9 Calendars and Related Articles... 8 Chips, fruit or vegetable Copiers (Copying Machines)... 2 Crisps, fruit or vegetable Curtains, air... 6 D Day Planners... 8 Dishwashers (Dishwashing Machines)... 4 Doors, air... 6 Duplicating Machines... 2 F Fruit Chips or Crisps G Greatest Dimension Clarification and Uniformity H Household Goods... 1 I Inserts, newspaper... 5 Item (Rule) 685, Packing or Packaging Alternate Forms Intermediate Bulk Containers L Lockers... 9 Lutes, magnesium... 3 M Magazines... 5 Military Baggage... 1 N Newspaper Inserts or Supplements... 5 Notes, Items 40644, and , Mixed Truckload Provisions P Package Packing or Packaging Alternate Forms Intermediate Bulk Containers Periodicals... 5 Personal Effects... 1 R Rakes, magnesium... 3 Reproducing Machines... 2 S Skates, ice or roller, including In-Line Skates... 7 Snack Foods Student Planners... 8 Supplements, newspaper... 5 V Vegetable Chips or Crisps Page iii

5 SUBJECT 1 Re: Household Goods, including Personal Effects or Military Baggage CCSB Contact: William F. Mascaro Telephone (703) mascaro@nmfta.org 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 Subject 1, Page 1 of 10

6 SUBJECT 1 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 10

7 SUBJECT 1 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, Subject 1, Page 3 of 10

8 SUBJECT 1 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 10

9 SUBJECT 1 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 Subject 1, Page 5 of 10

10 SUBJECT 1 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 10

11 SUBJECT 1 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. Subject 1, Page 7 of 10

12 SUBJECT 1 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 10

13 SUBJECT 1 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. Subject 1, Page 9 of 10

14 SUBJECT 1 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 10

15 SUBJECT 2 Re: Copying, Duplicating or Reproducing Machines, or Parts thereof, NOI CCSB Contact: Nathan D. Ripke Telephone (703) ripke@nmfta.org Proponent: Commodity Classification Standards Board Present Classification Provisions Item Description Class MACHINERY GROUP: subject to item Business or Office: subject to item Machines, Systems or Devices, data processing, or Components, Parts or Peripherals thereof, see Note, item , viz.: Facsimile (Fax) Machines; Printers or Scanners, computer or data processing network or system, or Parts thereof, NOI; [Other Articles Listed Not Involved.] In boxes, crates or Packages 2050, 2253, 2254, 2286 or 2291, released to a value not exceeding $25.00 per pound, see Note, item , subject to Items 170 and 171 and having a density in pounds per cubic foot of: Sub 1 Less than Sub 2 1 but less than Sub 3 2 but less than Sub 4 4 but less than Sub 5 6 but less than Sub 6 8 but less than Sub 7 10 but less than Sub 8 12 but less than Sub 9 15 but less than Sub but less than Sub or greater 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 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 NOTE Not Involved. Subject 2, Page 1 of 9

16 SUBJECT 2 Present Classification Provisions Continued Item Description Class MACHINERY GROUP: subject to item Copying, Duplicating or Reproducing Machines, or Parts thereof, NOI, see Note, item , in boxes, crates or Packages 1168, 2254 or 2534: Sub 1 Actual value not exceeding $30.00 per pound, see Note, item Sub 2 Actual value exceeding $30.00 per pound but not exceeding $65.00 per pound, see Note, item Sub 3 Actual value exceeding $65.00 per pound but not exceeding $ per pound, see Note, item Sub 4 Actual value exceeding $ per pound, see Note, item NOTE Applies only on machines which produce copies, duplicates or reproductions from original letters, drawings, documents or printed matter of any kind, or from master sheets NOTE Shipper must certify on shipping orders and bills of lading at time of shipment the actual value per pound of the property or the value group embracing the actual value per pound of the property. If the shipper fails to so certify the actual value, shipment will not be accepted, but if the shipment is inadvertently accepted, charges will initially be assessed on the basis of the class for the highest valuation provided. Upon proof of lower actual value, freight charges will be adjusted accordingly Copying, NOI, scrap, prepaid, see Note, item , loose NOTE Shipper must certify on shipping order and bill of lading at time of shipment: "These copying machines have no actual value other than as scrap." Package 1168 In 3-piece box made of singlewall corrugated fiberboard, the fiberboard meeting requirements of Item 222, Secs. 2 and 3, for boxes testing not less than 275 pounds. Body of box must cover all sides and must have flanges not less than 3 inches wide at top and bottom. Flanges of caps must fold down over and back under flanges of body. Caps must be securely strapped around flanges with metal straps or wire. For gross weights not exceeding 300 pounds, article must rest on wood frame specified for weights in excess of 300 pounds, or must rest on a pad full dimensions of article made of singlewall corrugated fiberboard meeting requirements of Item 222, Secs. 2 and 3, for fiberboard testing not less than 200 pounds scored and folded on ends to provide not less than 3 /4 inch clearance between article and bottom of container. For gross weights exceeding 300 pounds but not exceeding 700 pounds, box must be lined with a taped tube made of doublewall corrugated fiberboard meeting requirements of Item 222, Secs. 2 and 3 for fiberboard testing not less than 600 pounds. Article must rest on wood frame made of lumber not less than 3 /4 inch thick. Box must have wood skids made of lumber not less than 1 3 /8 x 7 1 /4 inches. Wood frame must be bolted through bottom cap of box to wood skid. Subject 2, Page 2 of 9

17 SUBJECT 2 Present Classification Provisions Concluded Package 1168 (Continued) Clearance of not less than 1 inch must be maintained between body of article and inner walls and top of box in all boxes. Gross weight must not exceed 700 pounds. Proposed Classification Provisions Item Description Class MACHINERY GROUP: subject to item Business or Office: subject to item Machines, Systems or Devices, data processing, or Components, Parts or Peripherals thereof, see Note, item , viz.: Copiers, Printers, Scanners or Facsimile (Fax) Machines, or Components or Parts thereof, NOI, see Note, item NEW, also in Package 2534; Facsimile (Fax) Machines; Printers or Scanners, etc. [Other Articles Listed No Change.] In boxes, crates or Packages 2050, 2253, 2254, 2286 or 2291, released to a value not exceeding $25.00 per pound, see Note, item , subject to Items 170 and 171 and having a density in pounds per cubic foot of: Sub 1 Less than Sub 2 1 but less than Sub 3 2 but less than Sub 4 4 but less than Sub 5 6 but less than Sub 6 8 but less than Sub 7 10 but less than Sub 8 12 but less than Sub 9 15 but less than Sub but less than Sub or greater 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 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 NOTE No Change. NEW NOTE Also applies on stand-alone copiers, or components or parts thereof, that are not a part of a computer or data processing network or system. Subject 2, Page 3 of 9

18 SUBJECT 2 Proposed Classification Provisions Concluded Item Description Class MACHINERY GROUP: subject to item Copying, Duplicating or Reproducing Machines, or Parts thereof, NOI, etc.... Cancel; see item NOTE Cancel; no further application NOTE Cancel; no further application Copying, NOI, scrap, prepaid, etc.... Cancel; see item NOTE Cancel; no further application. Cancel; believed to be obsolete. Analysis Package 1168 Research Project 1207 Research Project 1207 was initiated in October 2013 to address the ongoing interpretation inquiries as to the proper classification for network-ready copiers with print, scan and/or facsimile (fax) functionality. The CCSB has consistently held the opinion that item applies on these articles, stating that these multi-functional machines are derived from a copier, and will be classified as such, regardless of whether or not the copier is networkready and/or capable of sending, receiving, printing or scanning documents. Whereas, machines represented as facsimile (fax) machines, or computer or data processing network or system printers or scanners are currently named in item The research project was also initiated to review the transportation characteristics of articles represented as copying, duplicating or reproducing machines, or parts thereof. Hereinafter, these products will be referred to as copiers. A total of 387 potential manufacturers or shippers of copiers, and 13 associations believed to represent those companies, were sent questionnaires in November of 2013, and for those that did not respond, again in January of 2014 inviting them to participate in the research. Of the companies contacted, 36 responded that they do not manufacture or ship copiers, and three companies provided information; however, not all the information was usable. Two associations responded that they do not represent the involved companies, while no response was received from the remaining 11 associations. Subject 2, Page 4 of 9

19 SUBJECT 2 History of Provisions Item and Note, item were established as a result of action taken on Docket 92, Subject 47 (January 1960) and Docket 93, Subject 68 (March-April 1960). The provisions first appeared in Supplement 5 to NMFC A-5, effective January 26, The current classes in item , and the Note, item , are the result of action taken on Docket 915, Subject 10 (August 1991), which was a proposal to provide subprovisions based on the articles actual value per pound. Information on that record indicated densities ranging from 6.00 to pcf, with an average density of pcf. There were no significant handling or stowability concerns identified; however, the commodities were found to be somewhat susceptible to damage. Furthermore, product values ranged from $12.26 to $ per pound (in 1991 dollars). The proposal was approved as docketed, and the changes first appeared in Supplement 4 to NMF 100-R, effective October 12, A subsequent proposal, Docket 916, Subject 5 (September 1991), was docketed to amend item to also apply on Parts thereof, NOI. The proposal was approved as docketed, and the change first appeared in Supplement 5 to NMF 100-R, effective November 9, As a result of action taken on Docket , Subject 12 (January 2012) a CCSBregistered third party package testing laboratory docketed a proposal to establish a new package that was shown to provide adequate protection for copiers. The proposal was approved as docketed, and the package Package 2534 first appeared in Supplement 1 to NMF 100-AL, effective April 14, The provisions of item have remained unchanged to the present. Item and Note, item were established as a result of action taken on Docket 766, Subject 56 (September 1976), which was a proposal to add a specific entry for scrap copiers. The proposal was approved as modified, and the provisions first appeared in Supplement 3 to NMF 100-D, effective April 30, The provisions have remained substantially unchanged to the present. About Copiers At the time the current provisions were established, copiers were stand-alone machines that functioned independently. They required a user to manually input a document to be copied and reproduced it on the same machine. As technology has advanced, so too has the copier. It has been integrated with multiple devices, including printers, scanners and/or fax machines to provide centralized document management, distribution and production. Depending on the needs of the end user, these functions may be carried out in a commercial or institutional setting, at home, over a network or from a stand-alone unit. This multi-functionality has made it impractical to distinguish between the different products from a classification standpoint. Furthermore, these machines have evolved into modular units and allow for a variety of components or parts to be purchased along with, or separate from, the basic machine to Subject 2, Page 5 of 9

20 SUBJECT 2 enhance its functionality. These components or parts can vary greatly in complexity, size, shape and weight. Examples of the involved products are shown below. Transportation Characteristics Density Information of record includes 48,455 density observations submitted by carriers, collected during CCSB dock surveys and obtained from the CCSB Density Study 1. The products range in density from 0.88 to pcf, with an average density of 8.57 pcf. The frequency distribution is shown below. Frequency Distribution % of Figures in Interval 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 0.00% 0.75% 7.39% 20.40% 21.65% 23.06% 11.83% 8.81% 4.50% 0.93% 0.67% Density Intervals (pcf) 1 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 2, Page 6 of 9

21 SUBJECT 2 Handling Copiers are generally shipped in boxes, crates, authorized numbered packages, or an assortment of non-complying packages. Shipments may or may not be secured or unitized on lift truck skids or pallets. Instructions on the product packaging may advise the carrier that the contents are Fragile and to Handle with Care. The packaging may include precautionary markings such as directional arrows to indicate that the commodity should be handled in an upright orientation. However, no significant handling concerns have been reported. Stowability Instructions on the product packaging may advise the carrier, Do Not Stack freight on top of the copier. These instructions may result in less-than-optimum utilization of the available vehicle cube. Some copiers may have wheels attached making those units more difficult to securely stow. However, no significant stowability concerns have been reported. Pictures of the involved products as tendered for shipment are shown below. Liability Liability to damage and product value have long been a concern for copiers. No value information was submitted in conjunction with this record; however, Internet searches indicate that the involved copiers and their components or parts can range in retail value from less than $10.00 to over $19, Nine member carriers submitted claims and packaging information outlined in the table below. Carrier # of # of Claims ID Shipments Claims Ratio Carrier Comments 3 1, , HSCs do not support top loaded freight due to void space. 1 7, Packaging appears to meet the NMFC requirements , Excessive full value claim on 300 lb. unit could cost $8, We are not handling this freight because of its high value. Subject 2, Page 7 of 9

22 SUBJECT 2 While there are varying claims ratios reported, many claims appear to be the result of inadequate and non-complying packaging, as shown in the photos below. According to the CCSB s Packaging Consultant, these methods of packaging do not meet the minimum packaging requirements set forth in item The remaining liability elements do not significantly impact the evaluation of these products. With respect to packaging, Package 1168 was established in 1968, and the machines that it was developed for vary greatly from those copiers that are manufactured and shipped today. Today s copiers are made of lighter-weight materials that are less able to support top freight than older machines. Relationship to CCSB Policies and Guidelines CCSB policy calls for classification provisions to be as clear as possible to help preclude the potential for interpretation disputes. The copiers named in item have evolved since its provisions were established. Copiers may now be equipped with computer network or data processing technology and are also capable of printing, scanning or faxing documents. Furthermore, the same model of copier can be designed, represented and sold for commercial, institutional or home use, and function over a computer network or as a standalone unit. This multi-functionality has made it difficult to distinguish between the machines named in item and those named in item CCSB policy also calls for classification provisions to reflect a commodity s known transportation characteristics. CCSB policy further states that commodities exhibiting a wide range in density not accurately reflected by a single overall average density may be assigned density-based classes; especially where there are no unusual or significant handling, stowability or liability characteristics and where there is no other feasible means of effectively narrowing the range. Information of record indicates that copiers range in density from 0.88 to pcf, with an average density of 8.57 pcf and densities distributed throughout the range. Moreover, the distribution of densities is very similar to that exhibited when the current provisions of item were established. (See Docket , Subject 2 (September 2012).) Subject 2, Page 8 of 9

23 SUBJECT 2 This proposal would cancel the provisions of items and with reference to item where classes are predicated on the CCSB s standard 11-subprovision density progression 2. Concurrently, the separate references to Facsimile (Fax) Machines, and Printers or Scanners would be removed from the viz. listing in item , and a new listing would be added for Copiers, Printers, Scanners or Facsimile (Fax) Machines, or Components or Parts thereof, NOI. This should address interpretation disputes. The new listing would reference a new Note clarifying that the provisions would also apply on stand-alone copiers, or components or parts thereof, that are not a part of a computer or data processing network or system. Notes, items , and would be canceled with no further application. The new listing would reference currently authorized Package Package 2254 is currently an authorized numbered package for articles described in item and, accordingly, would be maintained. Copiers are no longer manufactured in the same manner as the machines for which Package 1168 was intended to protect; therefore, canceling Package 1168 as obsolete would be in keeping with CCSB policy. This proposal, as docketed, is in keeping with CCSB policy and precedent. 2 The CCSB s standard 11-subprovision density scale includes reference to Item (Rule) 170, the inadvertence clause, and Item (Rule) 171, the bumping privilege. Subject 2, Page 9 of 9

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25 SUBJECT 3 Re: Rakes or Lutes, magnesium CCSB Contact: George M. Beck Telephone (703) beck@nmfta.org Allison L. Austin (703) austin@nmfta.org Proponent: Surfa Slick, LLC, Riverside, California Present Classification Provisions Item Description Class TOOLS, OR PARTS NAMED: subject to item Rakes, hand, having tines constructed of: subject to item Magnesium, in boxes Proposed Classification Provisions Item Description Class TOOLS, OR PARTS NAMED: subject to item Rakes, hand, having tines constructed of: subject to item Magnesium, etc.... Cancel; see item NEW NEW Rakes or Lutes, hand, consisting of magnesium heads with detached handles of same or other material; or Handles or Parts thereof, NOI; in boxes: Sub 1 Exceeding 96 inches in length Sub 2 Not exceeding 96 inches in length Analysis This proposal was submitted by Surfa Slick, LLC to add a new item under the Tools, or Parts Named generic heading for magnesium rakes or lutes, or handles or parts thereof. The proponent s rakes or lutes are currently classified under the provisions of item , naming Rakes, hand, having tines constructed of magnesium. The proponent states, however, that these particular commodities exhibit transportation characteristics not reflected in the current class 100. The proposal seeks to establish provisions for magnesium rakes or lutes, based on the length of the handling unit. History of Provisions Provisions for magnesium rakes were established as a result of action taken on Docket 932, Subject 18 (March 1993). That proposal sought to establish classes for rakes based on the material construction of the tines. Information on that record showed a density of 9.47 pcf for magnesium rakes. When shipped in boxes, no unusual or significant handling, stowability or liability problems were indicated. The proposal was approved as modified, and the provisions first appeared in Supplement 2 to NMF 100-T, effective July 10, The provisions have remained substantially unchanged to the present. Subject 3, Page 1 of 4