Trade Groups Seek MAP-21 Exemptions
The Federal Motor Carrier Safety Administration (FMCSA) sought comments on two requests for exemptions to the bonding requirements issued by the agency as part of the implementation of the Moving Ahead for Progress in the 21st Century Act (MAP-21). The exemption requests come from the Association of Independent Property Brokers and Agents (AIPBA) and International Association of Movers (IAM).
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The AIPBA exemption filing asks for a "categorical exemption," said the FMCSA (here). The trade group argues that the "unnecessarily high" $75,000 bond requirement “is not necessary to protect shippers from the abuse of market power” and "will cause the majority of property brokers to leave the marketplace, which will expose shippers to abuses of market power by the few large property brokers able to stay in business.” AIPBA has already challenged the rules in U.S. district court, and is appealing the suit's dismissal in the U.S. Court of Appeals for the 11th Circuit, the agency said. Comments on the AIPBA request are due Jan. 27.
The IAM filing seeks an exemption to the bonding requirements for "all domestic freight forwarders which operate solely in the Department of Defense’s (DOD) household goods (HHG) program," said the FMCSA (here). IAM said the bonding requirements are based on commercial consumer protection and "therefore it is unnecessary to require freight forwarders in the DOD HHG program to obtain a $75,000 bond," according to the request for comments. The trade association "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." and "that DOD freight forwarders will be forced to add this cost to the rates they provide DOD."
(Federal Register 12/26/13)