49 CFR 376, "Lease and Interchange of Vehicle"

Federal Motor Carrier Safety Administration, DOT
WHAT ACTIONS MAY MY MOVER TAKE TO COLLECT FROM ME THE CHARGES IN ITS FREIGHT
BILL?
Your mover must present a freight bill
within 15 days (excluding Saturdays, Sundays, and Federal holidays) of the date of delivery of a shipment at your destination.
(Bills for additional charges based on the
weight of the shipment will be presented 30
days after delivery; charges for impracticable operations not paid at delivery are due
within 30 days of the invoice.)
Your mover must provide in its tariffs the
following three things:
(1) A provision indicating its credit period
is a total of 30 calendar days.
(2) A provision indicating you will be assessed a service charge by your mover equal
to one percent of the amount of the freight
bill, subject to a $20 minimum charge, for
the extension of the credit period. The mover
will assess the service charge for each 30-day
extension that the charges go unpaid.
(3) A provision that your mover must deny
credit to you if you fail to pay a duly presented freight bill within the 30-day period.
Your mover may grant credit to you, at its
discretion, when you satisfy your mover’s
condition that you will pay all future freight
bills duly presented. Your mover must ensure all your payments of freight bills are
strictly in accordance with Federal rules and
regulations for the settlement of its rates
and charges.

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DO I HAVE A RIGHT TO FILE A CLAIM TO RECOVER MONEY FOR PROPERTY MY MOVER
LOST OR DAMAGED?
Should your move result in the loss of or
damage to any of your property, you have
the right to file a claim with your mover to
recover money for such loss or damage.
You should file a claim as soon as possible.
If you fail to file a claim within 9 months,
your mover may not be required to accept
your claim. If you institute a court action
and win, you may be entitled to attorney’s
fees if you submitted your claim to the carrier within 120 days after delivery or the
scheduled date of delivery (whichever is
later), and (1) the mover did not advise you
during the claim settlement process of the
availability of arbitration as a means for resolving the dispute; (2) a decision was not
rendered through arbitration within the
time required by law; or (3) you are instituting a court action to enforce an arbitration decision with which the mover has not
complied.
While the Federal Government maintains
regulations governing the processing of loss
and damage claims (49 CFR part 370), it cannot resolve those claims. If you cannot settle
a claim with the mover, you may file a civil
action to recover your claim in court under
49 U.S.C. 14706. You may obtain the name

Pt. 376

and address of the mover’s agent for service
of legal process in your State by contacting
the Federal Motor Carrier Safety Administration. You may also obtain the name of a
process agent via the Internet. Go to http.//
www.fmcsa.dot.gov then click on Licensing
and Insurance (L&I) section.
In addition, your mover must participate
in an arbitration program. As described earlier in this pamphlet, an arbitration program
gives you the opportunity to settle, through
a neutral arbitrator, certain types of unresolved loss or damage claims and disputes regarding charges that were billed to you by
your mover after your shipment was delivered. You may find submitting your claim to
arbitration under such a program to be a less
expensive and more convenient way to seek
recovery of your claim. Your mover is required to provide you with information
about its arbitration program before you
move. If your mover fails to do so, ask the
mover for details of its program.
SUBPART I—RESOLVING DISPUTES WITH MY
MOVER
WHAT MAY I DO TO RESOLVE DISPUTES WITH
MY MOVER?
The Federal Motor Carrier Safety Administration Does Not Help You Settle Your Dispute
With Your Mover
Generally, you must resolve your own loss
and damage disputes with your mover. You
enter a contractual arrangement with your
mover. You are bound by each of the following three things:
(1) The terms and conditions you negotiated before your move.
(2) The terms and conditions you accepted
when you signed the bill of lading.
(3) The terms and conditions you accepted
when you signed for delivery of your goods.
You have the right to take your mover to
court. We require your mover to offer you arbitration to settle your disputes with it.
[72 FR 36775, July 5, 2007]

PART 376—LEASE AND
INTERCHANGE OF VEHICLES
Subpart A—General Applicability and
Definitions
Sec.
376.1
376.2

Applicability.
Definitions.

Subpart B—Leasing Regulations
376.11
376.12

General leasing requirements.
Written lease requirements.

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§ 376.1

49 CFR Ch. III (10–1–07 Edition)

Subpart C—Exemptions for the Leasing
Regulations
376.21 General exemptions.
376.22 Exemption for private carrier leasing
and leasing between authorized carriers.
376.26 Exemption for leases between authorized carriers and their agents.

Subpart D—Interchange Regulations
376.31

Interchange of equipment.

Subpart E—Private Carriers and Shippers
376.42 Lease of equipment by regulated carriers.
AUTHORITY: 49 U.S.C. 13301 and 14102; and 49
CFR 1.73.
SOURCE: 44 FR 4681, Jan. 23, 1979, unless
otherwise noted. Redesignated at 61 FR 54707,
Oct. 21, 1996.
EDITORIAL NOTE: Nomenclature changes to
part 376 appear at 66 FR 49871, Oct. 1, 2001.

Subpart A—General Applicability
and Definitions
§ 376.1 Applicability.
The regulations in this part apply to
the following actions by motor carriers
registered with the Secretary to transport property:
(a) The leasing of equipment with
which to perform transportation regulated by the Secretary.
(b) The leasing of equipment to
motor private carrier or shippers.
(c) The interchange of equipment between motor common carriers in the
performance of transportation regulated by the Secretary.

cprice-sewell on PROD1PC63 with CFR

[44 FR 4681, Jan. 23, 1979. Redesignated at 61
FR 54707, Oct. 21, 1996, as amended at 62 FR
15423, Apr. 1, 1997]

§ 376.2 Definitions.
(a) Authorized carrier. A person or persons authorized to engage in the transportation of property as a motor carrier under the provisions of 49 U.S.C.
13901 and 13902.
(b) Equipment. A motor vehicle,
straight truck, tractor, semitrailer,
full trailer, any combination of these
and any other type of equipment used
by authorized carriers in the transportation of property for hire.
(c) Interchange. The receipt of equipment by one motor common carrier of

property from another such carrier, at
a point which both carriers are authorized to serve, with which to continue a
through movement.
(d) Owner. A person (1) to whom title
to equipment has been issued, or (2)
who, without title, has the right to exclusive use of equipment, or (3) who has
lawful possession of equipment registered and licensed in any State in the
name of that person.
(e) Lease. A contract or arrangement
in which the owner grants the use of
equipment, with or without driver, for
a specified period to an authorized carrier for use in the regulated transportation of property, in exchange for
compensation.
(f) Lessor. In a lease, the party granting the use of equipment, with or without driver, to another.
(g) Lessee. In a lease, the party acquiring the use of equipment with or
without driver, from another.
(h) Sublease. A written contract in
which the lessee grants the use of
leased equipment, with or without
driver, to another.
(i) Addendum. A supplement to an existing lease which is not effective until
signed by the lessor and lessee.
(j) Private carrier. A person, other
than a motor carrier, transporting
property by motor vehicle in interstate
or foreign commerce when (1) the person is the owner, lessee, or bailee of the
property being transported; and (2) the
property is being transported for sale,
lease, rent, or bailment, or to further a
commercial enterprise.
(k) Shipper. A person who sends or receives property which is transported in
interstate or foreign commerce.
(l) Escrow fund. Money deposited by
the lessor with either a third party or
the lessee to guarantee performance, to
repay advances, to cover repair expenses, to handle claims, to handle license and State permit costs, and for
any other purposes mutually agreed
upon by the lessor and lessee.
(m) Detention. The holding by a consignor or consignee of a trailer, with or
without power unit and driver, beyond

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Federal Motor Carrier Safety Administration, DOT
the free time allocated for the shipment, under circumstances not attributable to the performance of the carrier.
[44 FR 4681, Jan. 23, 1979, as amended at 49
FR 47850, Dec. 7, 1984; 62 FR 15424, Apr. 1,
1997]

cprice-sewell on PROD1PC63 with CFR

Subpart B—Leasing Regulations
§ 376.11 General leasing requirements.
Other than through the interchange
of equipment as set forth in § 376.31,
and under the exemptions set forth in
subpart C of these regulations, the authorized carrier may perform authorized transportation in equipment it
does not own only under the following
conditions:
(a) Lease. There shall be a written
lease granting the use of the equipment
and meeting the requirements contained in § 376.12.
(b) Receipts for equipment. Receipts,
specifically identifying the equipment
to be leased and stating the date and
time of day possession is transferred,
shall be given as follows:
(1) When possession of the equipment
is taken by the authorized carrier, it
shall give the owner of the equipment a
receipt. The receipt identified in this
section may be transmitted by mail,
telegraph, or other similar means of
communication.
(2) When possession of the equipment
by the authorized carrier ends, a receipt shall be given in accordance with
the terms of the lease agreement if the
lease agreement requires a receipt.
(3) Authorized representatives of the
carrier and the owner may take possession of leased equipment and give and
receive the receipts required under this
subsection.
(c) Identification of equipment. The authorized carrier acquiring the use of
equipment under this section shall
identify the equipment as being in its
service as follows:
(1) During the period of the lease, the
carrier shall identify the equipment in
accordance with the FMCSA’s requirements in 49 CFR part 390 of this chapter (Identification of Vehicles).
(2) Unless a copy of the lease is carried on the equipment, the authorized
carrier shall keep a statement with the
equipment during the period of the

§ 376.12

lease certifying that the equipment is
being operated by it. The statement
shall also specify the name of the
owner, the date and length of the lease,
any restrictions in the lease relative to
the commodities to be transported, and
the address at which the original lease
is kept by the authorized carrier. This
statement shall be prepared by the authorized carrier or its authorized representative.
(d) Records of equipment. The authorized carrier using equipment leased
under this section shall keep records of
the equipment as follows:
(1) The authorized carrier shall prepare and keep documents covering each
trip for which the equipment is used in
its service. These documents shall contain the name and address of the owner
of the equipment, the point of origin,
the time and date of departure, and the
point of final destination. Also, the authorized carrier shall carry papers with
the leased equipment during its operation containing this information and
identifying the lading and clearly indicating that the transportation is under
its responsibility. These papers shall be
preserved by the authorized carrier as
part of its transportation records.
Leases which contain the information
required by the provisions in this paragraph may be used and retained instead
of such documents or papers. As to
lease agreements negotiated under a
master lease, this provision is complied
with by having a copy of a master lease
in the unit of equipment in question
and where the balance f documentation
called for by this paragraph is included
in the freight documents prepared for
the specific movement.
(2) [Reserved]
[44 FR 4681, Jan. 23, 1979, as amended at 49
FR 47269, Dec. 3, 1984; 49 FR 47850, Dec. 7,
1984; 50 FR 24649, June 12, 1985; 51 FR 37406,
Oct. 22, 1986; 62 FR 15424, Apr. 1, 1997]

§ 376.12 Written lease requirements.
Except as provided in the exemptions
set forth in subpart C of this part, the
written lease required under § 376.11(a)
shall contain the following provisions.
The required lease provisions shall be
adhered to and performed by the authorized carrier.
(a) Parties. The lease shall be made
between the authorized carrier and the

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§ 376.12

49 CFR Ch. III (10–1–07 Edition)

owner of the equipment. The lease
shall be signed by these parties or by
their authorized representatives.
(b) Duration to be specific. The lease
shall specify the time and date or the
circumstances on which the lease begins and ends. These times or circumstances shall coincide with the
times for the giving of receipts required by § 376.11(b).
(c) Exclusive possession and responsibilities. (1) The lease shall provide that
the authorized carrier lessee shall have
exclusive possession, control, and use
of the equipment for the duration of
the lease. The lease shall further provide that the authorized carrier lessee
shall assume complete responsibility
for the operation of the equipment for
the duration of the lease.
(2) Provision may be made in the
lease for considering the authorized
carrier lessee as the owner of the
equipment for the purpose of subleasing it under these regulations to
other authorized carriers during the
lease.
(3) When an authorized carrier of
household goods leases equipment for
the transportation of household goods,
as defined by the Secretary, the parties
may provide in the lease that the provisions required by paragraph (c)(1) of
this section apply only during the time
the equipment is operated by or for the
authorized carrier lessee.
(4) Nothing in the provisions required
by paragraph (c)(1) of this section is intended to affect whether the lessor or
driver provided by the lessor is an independent contractor or an employee of
the authorized carrier lessee. An independent contractor relationship may
exist when a carrier lessee complies
with 49 U.S.C. 14102 and attendant administrative requirements.
(d) Compensation to be specified. The
amount to be paid by the authorized
carrier for equipment and driver’s services shall be clearly stated on the face
of the lease or in an addendum which is
attached to the lease. Such lease or addendum shall be delivered to the lessor
prior to the commencement of any trip
in the service of the authorized carrier.
An authorized representative of the
lessor may accept these documents.
The amount to be paid may be expressed as a percentage of gross rev-

enue, a flat rate per mile, a variable
rate depending on the direction traveled or the type of commodity transported, or by any other method of compensation mutually agreed upon by the
parties to the lease. The compensation
stated on the lease or in the attached
addendum may apply to equipment and
driver’s services either separately or as
a combined amount.
(e) Items specified in lease. The lease
shall clearly specify which party is responsible for removing identification
devices from the equipment upon the
termination of the lease and when and
how these devices, other than those
painted directly on the equipment, will
be returned to the carrier. The lease
shall clearly specify the manner in
which a receipt will be given to the authorized carrier by the equipment
owner when the latter retakes possession of the equipment upon termination of the lease agreement, if a receipt is required at all by the lease.
The lease shall clearly specify the responsibility of each party with respect
to the cost of fuel, fuel taxes, empty
mileage, permits of all types, tolls, ferries, detention and accessorial services,
base plates and licenses, and any unused portions of such items. The lease
shall clearly specify who is responsible
for loading and unloading the property
onto and from the motor vehicle, and
the compensation, if any, to be paid for
this service. Except when the violation
results from the acts or omissions of
the lessor, the authorized carrier lessee
shall assume the risks and costs of
fines for overweight and oversize trailers when the trailers are pre-loaded,
sealed, or the load is containerized, or
when the trailer or lading is otherwise
outside of the lessor’s control, and for
improperly permitted overdimension
and overweight loads and shall reimburse the lessor for any fines paid by
the lessor. If the authorized carrier is
authorized to receive a refund or a
credit for base plates purchased by the
lessor from, and issued in the name of,
the authorized carrier, or if the base
plates are authorized to be sold by the
authorized carrier to another lessor the
authorized carrier shall refund to the
initial lessor on whose behalf the base
plate was first obtained a prorated
share of the amount received.

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cprice-sewell on PROD1PC63 with CFR

Federal Motor Carrier Safety Administration, DOT
(f) Payment period. The lease shall
specify that payment to the lessor
shall be made within 15 days after submission of the necessary delivery documents and other paperwork concerning
a trip in the service of the authorized
carrier. The paperwork required before
the lessor can receive payment is limited to log books required by the Department of Transportation and those
documents necessary for the authorized carrier to secure payment from
the shipper. In addition, the lease may
provide that, upon termination of the
lease agreement, as a condition precedent to payment, the lessor shall remove all identification devices of the
authorized carrier and, except in the
case of identification painted directly
on equipment, return them to the carrier. If the identification device has
been lost or stolen, a letter certifying
its removal will satisfy this requirement. Until this requirement is complied with, the carrier may withhold
final payment. The authorized carrier
may require the submission of additional documents by the lessor but not
as a prerequisite to payment. Payment
to the lessor shall not be made contingent upon submission of a bill of lading
to which no exceptions have been
taken. The authorized carrier shall not
set time limits for the submission by
the lessor of required delivery documents and other paperwork.
(g) Copies of freight bill or other form of
freight documentation. When a lessor’s
revenue is based on a percentage of the
gross revenue for a shipment, the lease
must specify that the authorized carrier will give the lessor, before or at
the time of settlement, a copy of the
rated freight bill or a computer-generated document containing the same
information, or, in the case of contract
carriers, any other form of documentation actually used for a shipment containing the same information that
would appear on a rated freight bill.
When a computer-generated document
is provided, the lease will permit lessor
to view, during normal business hours,
a copy of any actual document underlying the computer-generated document. Regardless of the method of
compensation, the lease must permit
lessor to examine copies of the carrier’s tariff or, in the case of contract

§ 376.12

carriers, other documents from which
rates and charges are computed, provided that where rates and charges are
computed from a contract of a contract
carrier, only those portions of the contract containing the same information
that would appear on a rated freight
bill need be disclosed. The authorized
carrier may delete the names of shippers and consignees shown on the
freight bill or other form of documentation.
(h) Charge-back items. The lease shall
clearly specify all items that may be
initially paid for by the authorized carrier, but ultimately deducted from the
lessor’s compensation at the time of
payment or settlement, together with
a recitation as to how the amount of
each item is to be computed. The lessor
shall be afforded copies of those documents which are necessary to determine the validity of the charge.
(i) Products, equipment, or services from
authorized carrier. The lease shall specify that the lessor is not required to
purchase or rent any products, equipment, or services from the authorized
carrier as a condition of entering into
the lease arrangement. The lease shall
specify the terms of any agreement in
which the lessor is a party to an equipment purchase or rental contract
which gives the authorized carrier the
right to make deductions from the lessor’s compensation for purchase or
rental payments.
(j) Insurance. (1) The lease shall clearly specify the legal obligation of the
authorized carrier to maintain insurance coverage for the protection of the
public pursuant to FMCSA regulations
under 49 U.S.C. 13906. The lease shall
further specify who is responsible for
providing any other insurance coverage
for the operation of the leased equipment, such as bobtail insurance. If the
authorized carrier will make a charge
back to the lessor for any of this insurance, the lease shall specify the
amount which will be charged-back to
the lessor.
(2) If the lessor purchases any insurance coverage for the operation of the
leased equipment from or through the
authorized carrier, the lease shall
specify that the authorized carrier will
provide the lessor with a copy of each
policy upon the request of the lessor.

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§ 376.12

49 CFR Ch. III (10–1–07 Edition)

Also, where the lessor purchases such
insurance in this manner, the lease
shall specify that the authorized carrier will provide the lessor with a certificate of insurance for each such policy. Each certificate of insurance shall
include the name of the insurer, the
policy number, the effective dates of
the policy, the amounts and types of
coverage, the cost to the lessor for
each type of coverage, and the deductible amount for each type of coverage
for which the lessor may be liable.
(3) The lease shall clearly specify the
conditions under which deductions for
cargo or property damage may be made
from the lessor’s settlements. The
lease shall further specify that the authorized carrier must provide the lessor with a written explanation and
itemization of any deductions for cargo
or property damage made from any
compensation of money owed to the
lessor. The written explanation and
itemization must be delivered to the
lessor before any deductions are made.
(k) Escrow funds. If escrow funds are
required, the lease shall specify:
(1) The amount of any escrow fund or
performance bond required to be paid
by the lessor to the authorized carrier
or to a third party.
(2) The specific items to which the escrow fund can be applied.
(3) That while the escrow fund is
under the control of the authorized
carrier, the authorized carrier shall
provide an accounting to the lessor of
any transactions involving such fund.
The carrier shall perform this accounting in one of the following ways:
(i) By clearly indicating in individual
settlement sheets the amount and description of any deduction or addition
made to the escrow fund; or
(ii) By providing a separate accounting to the lessor of any transactions involving the escrow fund. This separate
accounting shall be done on a monthly
basis.
(4) The right of the lessor to demand
to have an accounting for transactions
involving the escrow fund at any time.
(5) That while the escrow fund is
under the control of the carrier, the
carrier shall pay interest on the escrow
fund on at least a quarterly basis. For
purposes of calculating the balance of
the escrow fund on which interest must

be paid, the carrier may deduct a sum
equal to the average advance made to
the individual lessor during the period
of time for which interest is paid. The
interest rate shall be established on
the date the interest period begins and
shall be at least equal to the average
yield or equivalent coupon issue yield
on 91-day, 13-week Treasury bills as established in the weekly auction by the
Department of Treasury.
(6) The conditions the lessor must
fulfill in order to have the escrow fund
returned. At the time of the return of
the escrow fund, the authorized carrier
may deduct monies for those obligations incurred by the lessor which have
been previously specified in the lease,
and shall provide a final accounting to
the lessor of all such final deductions
made to the escrow fund. The lease
shall further specify that in no event
shall the escrow fund be returned later
than 45 days from the date of termination.
(l) Copies of the lease. An original and
two copies of each lease shall be signed
by the parties. The authorized carrier
shall keep the original and shall place
a copy of the lease on the equipment
during the period of the lease unless a
statement
as
provided
for
in
§ 376.11(c)(2) is carried on the equipment
instead. The owner of the equipment
shall keep the other copy of the lease.
(m) This paragraph applies to owners
who are not agents but whose equipment is used by an agent of an authorized carrier in providing transportation
on behalf of that authorized carrier. In
this situation, the authorized carrier is
obligated to ensure that these owners
receive all the rights and benefits due
an owner under the leasing regulations,
especially those set forth in paragraphs
(d)–(k) of this section. This is true regardless of whether the lease for the
equipment is directly between the authorized carrier and its agent rather
than directly between the authorized
carrier and each of these owners. The
lease between an authorized carrier

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Federal Motor Carrier Safety Administration, DOT
and its agent shall specify this obligation.
[44 FR 4681, Jan. 23, 1979, as amended at 45
FR 13092, Feb. 28, 1980; 47 FR 28398, June 30,
1982; 47 FR 51140, Nov. 12, 1982; 47 FR 54083,
Dec. 1, 1982; 49 FR 47851, Dec. 7, 1984; 51 FR
37406, 37407, Oct. 22, 1986; 52 FR 2412, Jan. 22,
1987; 57 FR 32905, July 24, 1992; 62 FR 15424,
Apr. 1, 1997]

Subpart C—Exemptions for the
Leasing Regulations
§ 376.21 General exemptions.
Except for § 376.11(c) which requires
the identification of equipment, the
leasing regulations in this part shall
not apply to:
(a) Equipment used in substituted
motor-for-rail transportation of railroad freight moving between points
that are railroad stations and on railroad billing.
(b) Equipment used in transportation
performed exclusively within any commercial zone as defined by the Secretary.
(c) Equipment leased without drivers
from a person who is principally engaged in such a business.
(d) Any type of trailer not drawn by
a power unit leased from the same lessor.

cprice-sewell on PROD1PC63 with CFR

[44 FR 4681, Jan. 23, 1979. Redesignated at 61
FR 54707, Oct. 21, 1996, as amended at 62 FR
15424, Apr. 1, 1997]

§ 376.22 Exemption for private carrier
leasing and leasing between authorized carriers.
Regardless of the leasing regulations
set forth in this part, an authorized
carrier may lease equipment to or from
another authorized carrier, or a private
carrier may lease equipment to an authorized carrier under the following
conditions:
(a) The identification of equipment
requirements in § 376.11(c) must be complied with;
(b) The lessor must own the equipment or hold it under a lease;
(c) There must be a written agreement between the authorized carriers
or between the private carrier and authorized carrier, as the case may be,
concerning the equipment as follows:
(1) It must be signed by the parties or
their authorized representatives.

§ 376.26

(2) It must provide that control and
responsibility for the operation of the
equipment shall be that of the lessee
from the time possession is taken by
the lessee and the receipt required
under § 376.11(b) is given to the lessor
until: (i) Possession of the equipment is
returned to the lessor and the receipt
required under § 376.11(b) is received by
the authorized carrier; or (ii) in the
event that the agreement is between
authorized carriers, possession of the
equipment is returned to the lessor or
given to another authorized carrier in
an interchange of equipment.
(3) A copy of the agreement must be
carried in the equipment while it is in
the possession of the lessee.
(4) Nothing in this section shall prohibit the use, by authorized carriers,
private carriers, and all other entities
conducting lease operations pursuant
to this section, of a master lease if a
copy of that master lease is carried in
the equipment while it is in the possession of the lessee, and if the master
lease complies with the provisions of
this section and receipts are exchanged
in accordance with § 376.11(b), and if
records of the equipment are prepared
and maintained in accordance with
§ 376.11(d).
(d) Authorized and private carriers
under common ownership and control
may lease equipment to each other
under this section without complying
with the requirements of paragraph (a)
of this section pertaining to identification of equipment, and the requirements of paragraphs (c)(2) and (c)(4) of
this section pertaining to equipment
receipts. The leasing of equipment between such carriers will be subject to
all other requirements of this section.
[49 FR 9570, Mar. 14, 1984, as amended at 49
FR 47269, Dec. 3, 1984; 49 FR 47851, Dec. 7,
1984; 62 FR 15424, Apr. 1, 1997; 63 FR 40838,
July 31, 1998]

§ 376.26 Exemption for leases between
authorized
carriers
and
their
agents.
The leasing regulations set forth in
§ 376.12(e) through (l) do not apply to
leases between authorized carriers and
their agents.
[47 FR 28398, June 30, 1982, as amended at 62
FR 15424, Apr. 1, 1997]

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§ 376.31

49 CFR Ch. III (10–1–07 Edition)

cprice-sewell on PROD1PC63 with CFR

Subpart D—Interchange
Regulations
§ 376.31 Interchange of equipment.
Authorized common carriers may
interchange equipment under the following conditions:
(a) Interchange agreement. There shall
be a written contract, lease, or other
arrangement providing for the interchange and specifically describing the
equipment to be interchanged. This
written agreement shall set forth the
specific points of interchange, how the
equipment is to be used, and the compensation for such use. The interchange agreement shall be signed by
the parties or by their authorized representatives.
(b) Operating authority. The carriers
participating in the interchange shall
be registered with the Secretary to
provide the transportation of the commodities at the point where the physical exchange occurs.
(c) Through bills of lading. The traffic
transported in interchange service
must move on through bills of lading
issued by the originating carrier. The
rates charged and the revenues collected must be accounted for in the
same manner as if there had been no
interchange. Charges for the use of the
interchanged equipment shall be kept
separate from divisions of the joint
rates or the proportions of such rates
accruing to the carriers by the application of local or proportional rates.
(d) Identification of equipment. The authorized common carrier receiving the
equipment shall identify equipment operated by it in interchange service as
follows:
(1) The authorized common carrier
shall identify power units in accordance with the FMCSA’s requirements
in 49 CFR part 390 of this chapter (Identification of Vehicles). Before giving up
possession of the equipment, the carrier shall remove all identification
showing it as the operating carrier.
(2) Unless a copy of the interchange
agreement is carried on the equipment,
the authorized common carrier shall
carry a statement with each vehicle
during interchange service certifying
that it is operating the equipment. The
statement shall also identify the equipment by company or State registration

number and shall show the specific
point of interchange, the date and time
it assumes responsibility for the equipment, and the use to be made of the
equipment. This statement shall be
signed by the parties to the interchange agreement or their authorized
representatives. The requirements of
this paragraph shall not apply where
the equipment to be operated in interchange service consists only of trailers
or semitrailers.
(3) Authorized carriers under common ownership and control may interchange equipment with each other
without complying with the requirements of paragraph (d)(1) of this section pertaining to removal of identification from equipment.
(e) Connecting carriers considered as
owner—An authorized carrier receiving
equipment in connection with a
through movement shall be considered
to the owner of the equipment for the
purpose of leasing the equipment to
other authorized carriers in furtherance of the movement to destination or
the return of the equipment after the
movement is completed.
[44 FR 4681, Jan. 23, 1979. Redesignated at 61
FR 54707, Oct. 21, 1996, as amended at 62 FR
15424, Apr. 1, 1997; 63 FR 40838, July 31, 1998]

Subpart E—Private Carriers and
Shippers
§ 376.42 Lease of equipment by regulated carriers.
Authorized carriers may lease equipment and drivers from private carriers,
for periods of less than 30 days, in the
manner set forth in § 376.22.
[49 FR 9570, Mar. 14, 1984, as amended at 51
FR 37034, Oct. 17, 1986; 62 FR 15424, Apr. 1,
1997]

PART 377—PAYMENT OF
TRANSPORTATION CHARGES
Subpart A—Handling of C.O.D. Shipments
Sec.
377.101
377.103

Applicability.
Tariff requirements.

140

VerDate Aug<31>2005

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