In the introductory matter before clause (1), the words "The Interstate Commerce Commission does not have jurisdiction under this subchapter" are substituted for "The provisions of this part shall not apply" for clarity and to conform to the terms used in chapter 105 of the revised title. The word "provided" is substituted for "performed" in each place for consistency. Clause (2) is restated for clarity. The words "or horticultural" are inserted for consistency with section 10526(a)(4)(A) and (6)(B) of the revised title. In clauses (3) and (4), the word "service" is substituted for "operations" for consistency in the subchapter. In clause (3), the words "the benefits" and "or association" are omitted as surplus. Repealed.] Separate rates for distinct rail services. Repealed.] Rates and liability based on value. Investigation of discriminatory rail rates for transportation of recyclable or recycled materials. Food and grocery transportation. Rates for transportation of recyclable materials. Household goods rates-estimates; guarantees of service. SUBCHAPTER III-LIMITATIONS AMENDMENTS 1983-Par. 1. Pub. L. 97-449 substituted "section 15(a) of the Agricultural Marketing Act (12 U.S.C. 1141j(a))" for "section 1141j(a) of title 12”. CHAPTER 107-RATES, TARIFFS, AND VALUATIONS In clause (4), the words "warehouseman or other" are omitted as surplus. 10748. 10749. 10750. 10764. 10701a. Standards for rates for rail carriers. 10766. Freight forwarder traffic agreements. SUBCHAPTER V-VALUATION OF PROPERTY Investigation and report by Interstate Commerce Commission. rules, and practices prescribed by Interstate Commerce Commission. 10705. Authority: through routes, joint classifications, rates, and divisions prescribed by Interstate Commerce Commission. 10705a. Joint rate surcharges and cancellations. 10706. Rate agreements: exemption from antitrust laws. AMENDMENTS 1980-Pub. L. 96-454, § 4(b), Oct. 15, 1980, 94 Stat. 2013, added item 10734, relating to household goods rates. Pub. L. 96-448, title II, §§ 201(b)(3), 203(b), 206(b), 208(b), 209, 210(a), 217(a)(2), 225(b), Oct. 14, 1980, 94 Stat. 1900, 1904, 1906, 1910, 1924, 1930, added items 10701a, 10705a, 10707a, 10712, 10713, and 10734 (relat ing to car utilization) and struck out items 10727 and 10729. Pub. L. 96-296, §§ 8(b), 32(b), 33(b), July 1, 1980, 94 Stat. 798, 824, 825, added items 10732, 10733, and 10751. CHAPTER REFERRED TO IN OTHER SECTIONS This chapter is referred to in sections 10910, 10922, 11501, 11903, 11904, 11916 of this title; title 45 section 1109. SUBCHAPTER I-GENERAL AUTHORITY § 10701. Standards for rates, classifications, through routes, rules, and practices (a) A rate (other than a rail rate), classification, rule, or practice related to transportation or service provided by a carrier subject to the jurisdiction of the Interstate Commerce Commission under chapter 105 of this title must be reasonable. A through route established by such a carrier (including a rail carrier) must be reasonable. Divisions of joint rates by those carriers (including rail carriers) must be made without unreasonable discrimination against a participating carrier and must be reasonable. [(b) Repealed. Pub. L. 96-448, title II, § 201(b)(2), Oct. 14, 1980, 94 Stat. 1900.] (c) A common carrier providing transportation subject to the jurisdiction of the Commission under subchapter I or III of chapter 105 of this title may not discriminate in its rates against a connecting line of another carrier providing transportation subject to the jurisdiction of the Commission under either of those subchapters or unreasonably discriminate against that line in the distribution of traffic that is not routed specifically by the shipper. (d) In a proceeding to determine whether a rate for transportation or service provided by a common carrier subject to the jurisdiction of the Commission under subchapter II, III, or IV of chapter 105 of this title complies with subsection (a) of this section, the good will, earning power, or certificate or permit under which that carrier is operating may not be considered or admitted as evidence of the value of the property of that carrier. When the carrier receives a certificate or permit under chapter 109 of this title, it is considered to have agreed to this subsection for itself and for all transferees of that certificate or permit. (e) In proceedings to determine the reasonableness of rate levels for a motor carrier or group of motor carriers, or in proceedings to determine the reasonableness of a territorial rate structure where rates are proposed through agreements authorized by section 10706(b) of this title, the Commission shall authorize revenue levels that are adequate under honest, economical, and efficient management to cover total operating expenses, including the operation of leased equipment and depreciation, plus a reasonable profit. The standards and procedures adopted by the Commission under this subsection shall allow the carriers to achieve revenue levels that will provide a flow of net income, plus depreciation, adequate to support prudent capital outlays, assure the repayment of a reasonable level of debt, permit the raising of needed equity capital, attract and retain capital in amounts adequate to provide a sound motor carrier transportation system in the United States, and take into account reasonable estimated or foreseeable future costs. (Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1371; Pub. L. 96-296, § 13(a), July 1, 1980, 94 Stat. 803; Pub. L. 96-448, title II, § 201(b)(1), (2), Oct. 14, 1980, 94 Stat. 1899, 1900; Pub. L. 97-261, § 9(a), Sept. 20, 1982, 96 Stat. 1109.) Revised Section 10701(a). 49:1(4) (related to standards), (5)(a), (b) (1st and 2d sentences). 49:316(a) (related to standards), (b) (related to standards), (d) (1st sentence); 318(a) (1st sentence related to standards). 49:905(a) (1st sentence related to standards and 2d sentence), (b) (4th sentence); 906(e) (1st sentence related to standards). 49:1004(a) (related to standards). 10701(b).... 49:1(5)(b) (less 1st, 2d, 7th, and 8th sentences). 10701(c)..... 49:3(4) (1st sentence 2d cl., 2d sentence related to standards). 49:905(d) (1st sentence 2d cl., 2d sentence related to standards). 10701(d).... 49:316(h). 49:907(c). 498:1006(c). Feb. 4, 1887, ch. 104, §1(4) (related to standards), (5)(a), (b) (less 7th and 8th sentences), 24 Stat. 379; June 29, 1906, ch. 3591, § 1, 34 Stat. 584; Feb. 28, 1920, ch. 91, 400, 41 Stat. 474; June 19, 1934, ch. 652, § 602(b), 48 Stat. 1102; Aug. 9, 1935, ch. 498, 1, 49 Stat. 543; Sept. 18, 1940, ch. 722, § 2(c), (d), 54 Stat. 900; Aug. 2, 1949, ch. 379, § 1, 63 Stat. 485; Feb. 5, 1976, Pub. L. 94-210, § 202(a), (b), 90 Stat. 34. Feb. 4, 1887, ch. 104, 24 Stat. 379, 216(a) (related to standards), (b) (related to standards), (d) (1st sentence), (h), § 218(a) (1st sentence related to standards); added Aug. 9, 1935, ch. 498, 1, 49 Stat. 558, 560, 561; Sept. 18, 1940, ch. 722, §§ 22(b), 23(a), 54 Stat. 924, 925. Feb. 4, 1887, ch. 104, 24 Stat. 379. §§ 305(a) (1st sentence related to standards and 2d sentence), (b) (4th sentence), (d) (1st sentence 2d cl., 2d sentence related to standards), 306(e) (1st sentence related to standards), 307(c); added Sept. 18, 1940, ch. 722, § 201, 54 Stat. 934, 935, 937; Aug. 24, 1962, Pub. L. 87-595, § 2, 76 Stat. 398. Feb. 4, 1887, ch. 104, 24 Stat. 379, §§ 404(a) (related to standards), 406(c); added May 16, 1942, ch. 318, § 1. 56 Stat. 286, 288. Feb. 4, 1887, ch. 104, §3(4) (1st sentence 2d cl., 2d sentence related to standards), 24 Stat. 380; Feb. 4, 1920, ch. 91, 405, 41 Stat. 479: Aug. 9, 1935, ch. 498. § 1, 49 Stat. 543; restated Sept. 18, 1940, ch. 722, § 5(e), 54 Stat. 903. The section consolidates and restates the source provisions for clarity. The words "rates" and "transporta tion" are substituted for "rate, fare, or charge" and "service... in the transportation of passengers or property", except as related to freight forwarders, in view of the definitions of "rate" and "transportation" in section 10102 of the revised title. Subsection (a) is added to eliminate repetition of the word "reasonable" throughout the revised title. The word "reasonable" is substituted for "just and reasonable" for clarity, consistency, and to conform to modern usage. See the revision note to section 10101 of the revised title. The 2d clause and last sentence of 49:1(5)(a) and the 2d sentence of 49:1(5)(b) are omitted as surplus. The words "discrimination against" are substituted for "prefer or prejudice" as being inclusive. See the revision note to section 10101 of the revised title. In subsection (b), the words "or not shown to be" are omitted as surplus. The words "(hereafter in this paragraph referred to as the 'proponent carrier')" are omitted as unnecessary. The word "unless" is substituted for "except where" for clarity. The words "For the purposes of the preceding sentence" are omitted as surplus. The last sentence of subsection (b)(1) is substituted for 49:1(5)(b) (last sentence) to eliminate unnecessary terms. In subsection (c), the word "unreasonably" is substituted for "unduly" for consistency. The last sentence of 49:905(d) is omitted as unnecessary in view of the restatement. The words "discriminate against" are substituted for "prejudice" as being more inclusive. See the revision note to section 10101 of the revised title. In subsection (d), 49:316(h), 907(c), and 1006(c) are consolidated into one subsection patterned after 49:316(h). The words "is considered" are substituted for "shall be deemed" for clarity. The words "the provisions of" are omitted as surplus. AMENDMENTS 1982-Subsec. (e). Pub. L. 97-261 struck out "of property" after "for a motor carrier" and "group of motor carriers". 1980-Subsec. (a). Pub. L. 96-448, § 201(b)(1), inserted "(other than a rail rate)" following "A rate", "(including a rail carrier)" following "such a carrier", and "(including rail carriers)" following "those carriers". Subsec. (b). Pub. L. 96-448, § 201(b)(2), struck out subsec. (b), which provided that a rate of transportation by a rail carrier which was below a reasonable minimum rate for the service provided did not violate subsec. (a) of this section if that rate contributed to the going concern value of that carrier, a rate increased to the going concern value was not prohibited if otherwise reasonable and was presumed reasonable if it did not exceed the increment costs of rendering the transportation, a rate for transportation that equaled or exceeded the variable cost of providing the transportation was presumed reasonable if it contributed to the going concern of the rail carrier, and the Commission determine, with specific limitations, the variable and incremental costs. See section 10701a of this title Subsec. (e). Pub. L. 96-296 added subsec. (e). EFFECTIVE DATE OF 1982 AMENDMENT Amendment by Pub. L. 97-261 effective on the 60th day after Sept. 20, 1982, see section 31(a) of Pub. L. 97-261, set out as a note under section 10101 of this title. EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96-448 effective Oct. 1, 1980, see section 710(a) of Pub. L. 96-448, set out as a note under section 10101 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 10705, 10711, 10731, 10925, 11126 of this title. § 10701a. Standards for rates for rail carriers (a) Except as provided in subsection (b) or (c) of this section and unless a rate is prohibited by a provision of this title, a rail carrier providing transportation subject to the jurisdiction of the Interstate Commerce Commission under subchapter I of chapter 105 of this title may establish any rate for transportation or other service provided by the carrier. (b)(1) If the Commission determines, under section 10709 of this title, that a rail carrier has 11-617 VOL. 18 0-84-56 market dominance over the transportation to which a particular rate applies, the rate established by such carrier for such transportation must be reasonable. (2) In any proceeding to determine the reasonableness of a rate described in paragraph (1) of this subsection (A) the shipper challenging such rate shall have the burden of proving that such rate is not reasonable if (i) such rate (I) is authorized under section 10707a of this title, and (II) results in a revenue-variable cost percentage for the transportation to which the rate applies that is less than the lesser of the percentages described in clauses (i) and (ii) of section 10707a(e)(2)(A) of this title; or (ii) such rate does not meet the description set forth in clause (i) of this subparagraph, but the Commission does not begin an investigation proceeding under section 10707 of this title to determine whether such rate is reasonable; and (B) the rail carrier establishing the challenged rate shall have the burden of proving that such rate is reasonable if— (i) such rate (I) is greater than that authorized under section 10707a of this title, or (II) results in a revenue-variable cost percentage for the transportation to which the rate applies that is equal to or greater than the lesser of the percentages described in clauses (i) and (ii) of section 10707a(e)(2)(A) of this title; and (ii) the Commission begins an investigation proceeding under section 10707 of this title to determine whether such rate is reasonable. (3) In determining whether a rate established by a rail carrier is reasonable for purposes of this section, the Commission shall recognize the policy of this title that rail carriers shall earn adequate revenues, as established by the Commission under section 10704(a)(2) of this title. (c)(1) A rate for transportation or other service provided by a rail carrier subject to the jurisdiction of the Commission under subchapter I of chapter 105 of this title may not be established below a reasonable minimum. Any rate for transportation by such a rail carrier that does not contribute to the going concern value of such carrier is presumed to be not reasonable. A rate that contributes to the going concern value of such carrier is conclusively presumed not to be below a reasonable minimum. (2) A rate for transportation by a rail carrier that equals or exceeds the variable cost of providing the transportation is conclusively presumed to contribute to the going concern value of such rail carrier. (3)(A) Upon the filing of a complaint alleging that a rate is in violation of this subsection, the Commission shall take final action thereon by the 90th day after the date such complaint is filed. 'So in original. Probably should be "subtitle". (B) If the Commission determines, based on the record after opportunity for a hearing, that a rate is in violation of this subsection, the Commission shall order such rate to be raised, but only to the minimum level required by this subsection. The complainant shall have the burden of proving that such rate is in violation of this subsection. (4)(A) For purposes of this subsection, variable costs shall be determined under formulas or procedures prescribed or certified by the Commission. (B) In the determination of variable costs for purposes of minimum rate regulation, the Commission shall, on application of the rail carrier proposing the rate, determine only the costs of such carrier and only those costs of the specific service in question unless the specific information is not available. The Commission may not include in such variable costs an expense that does not vary directly with the level of transportation provided under the proposed rate. (Added Pub. L. 96-448, title II, § 201(a), Oct. 14, 1980, 94 Stat. 1898.) EFFECTIVE DATE Section effective Oct. 1, 1980, see section 710(a) of Pub. L. 96-448, set out as an Effective Date of 1980 Amendment note under section 10101 of this title. DETERMINATION OF EXTENT PRODUCT COMPETITION TO BE CONSIDERED IN RATE REGULATION PROCEEDINGS; AVAILABILITY OF ALTERNATIVE SOURCES; COAL FROM ALTERNATIVE SOURCES; STANDARDS FOR REASONABLENESS UNDER EXISTING LAWS AND MEANING OF MARKET DOMINANCE UNAFFECTED Section 205(a) of Pub. L. 96-448 directed the Interstate Commerce Commission to commence a proceeding to determine whether, and to what extent, product competition, meaning the availability to a consignee of alternative sources of a product or commodity which could be effectively utilized by the consignee, without regard to origin, should be considered in proceedings under subtitle IV of this title to determine the reasonableness of rail carrier rates. Coal imported for generation of electricity by utilities was not to be considered, and the Commission's standards for determining reasonableness of rail carrier rates under existing laws and the meaning of the term "market dominance" as defined in section 10709(a) of this title were to remain unaffected. The Commission was to complete the proceeding within 230 days after Oct. 1, 1980. RATES; CHALLENGE OF EXISTING RAIL CARRIER Section 229 of Pub. L. 96-448 provided that: "(a) Any rate that is in effect on the effective date of this Act [Oct. 1, 1980] for transportation by a rail carrier providing transportation subject to the jurisdiction of the Interstate Commerce Commission under subchapter I of chapter 105 of title 49, United States Code, may, during the 180-day period beginning on such effective date, be challenged in a complaint filed with the Interstate Commerce Commission by any interested party alleging that the rail carrier has market dominance over the transportation to which the rate applies, as determined under section 10709 of such title, and that the rate is not reasonable under section 10701a of such title. "(b) Any rate described in subsection (a) of this section "(1) which is not challenged in a complaint filed within the 180-day period provided in such subsection; or "(2) which is challenged in such a complaint, but (A) the rail carrier is found not to have market dominance over the transportation to which the rate applies, or (B) the rate is found to be reasonable, shall be deemed to be lawful and may not thereafter be challenged in the Commission or in any court (other than on appeal from a decision of the Commission). "(c) The provisions of this section shall not apply to any rate under which the volume of traffic moved during the 12-month period immediately preceding the effective date of this Act did not exceed 500 net tons and has increased tenfold within the 3-year period immediately preceding the bringing of a challenge to the reasonableness of such rate. "(d) The burden of proof in any proceeding under this section shall be on the complainant." SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 10705a of this title. § 10702. Authority for carriers to establish rates, clas sifications, rules, and practices (a) A common carrier providing transportation or service subject to the jurisdiction of the Interstate Commerce Commission under chapter 105 of this title shall establish (1) rates, including divisions of joint rates, and classifications for transportation and service it may provide under this subtitle; and (2) rules and practices on matters related to that transportation or service, including rules and practices on (A) issuing tickets, receipts, bills of lading, and manifests; (B) carrying of baggage; (C) the manner and method of presenting, marking, packing, and delivering property for transportation; and (D) facilities for transportation. (b) A contract carrier providing transporta tion subject to the jurisdiction of the Commission under chapter 105 of this title shall establish, and file with the Commission, actual and minimum rates for the transportation it may provide under this subtitle and rules and prac tices related to those rates. However, this subsection does not require a motor contract carri er to maintain the same rates and rules related to those rates for the same transportation provided to shippers served by it. The Commission may grant relief from this subsection when relief is consistent with the public interest and the transportation policy of section 10101 of this title. The Commission may begin a proceeding under this subsection on application of a contract carrier or group of contract carriers or on its own initiative for a water contract carrier or group of water contract carriers. (Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1372.) Feb. 4, 1887, ch. 104, § 1(4) (2d sentence last cl.), (6) (less last sentence), 24 Stat. 379; June 29, 1906, ch. 3591, § 1, 34 Stat. 584; Feb. 28, 1920, ch. 91, § 400, 41 Stat. 474; June 19, 1934, ch. 652, § 602(b), 48 Stat. 1102; Aug. 9, 1935, ch. 498, § 1, 49 Stat. 543; Sept. 18, 1940, ch. 722, § 2(c), (d), 54 Stat. 900; Aug. 2, 1949, ch. 379, § 1, 63 Stat. 485. Feb. 4, 1887, ch. 104, 24 Stat. 379, § 216(a) (60th-143d words), (b) (less 16th-33d words), (c) (2d sentence); added Aug. 9, 1935, ch. 498, § 1, 49 Stat. 558; Sept. 18, 1940, ch. 722, § 22(b), 54 Stat. 924; Aug. 24, 1962, Pub. L. 87-595, § 1, 76 Stat. 397. Feb. 4, 1887, ch. 104, 24 Stat. 379, 305(a) (less 1st sentence 1st cl. and last sentence), (b) (4th sentence), 306(e) (1st sentence and 7th sentence proviso related to relief); added Sept. 18, 1940, ch. 722, § 201, 54 Stat. 934, 935; Aug. 24, 1962, Pub. L. 87-595, § 2, 76 Stat. 398. Feb. 4, 1887, ch. 104, 24 Stat. 379, 404(a) (related to carrier authority); added May 16, 1942, ch. 318, § 1, 56 Stat. 286. sen Feb. 4, 1887, ch. 104, 24 Stat. 379, 218(a) (1st and 4th 7th sentences, and tence proviso related to relief); added Aug. 9, 1935, ch. 498, § 1, 49 Stat. 561; Sept. 18, 1940, ch. 722, §§ 16, 23(a), 54 Stat. 919, 925; Aug. 13, 1957, Pub. L. 85-124, 13, 71 Stat. 343. The section consolidates and restates the source provisions for clarity. In subsection (a), the word "shall" is substituted for "It shall be the duty of every" for clarity. The words "observe, and enforce" are omitted as surplus in view of the restatement. The authority to establish rates in this section is made applicable to rail, express, sleeping car, and pipeline carriers for consistency. The word "prejudice" is omitted as surplus. The word "rules" is substituted for "rules and regulations" for consistency when referring to carriers. The word "rates" is substituted for "rates, fares, charges" in view of the definition of "rate" in section 10102 of the revised title. The word "tariffs" is omitted as unnecessary. The words "personal, sample, and excess" are omitted as surplus. The words "related to" are substituted for "connected with" for clarity. The last 63 words of 49:1(6) (1st sentence) are omitted as surplus. In subsection (b), the word "shall" is substituted for "It shall be the duty of every” for clarity. The words "and observe" are omitted as surplus. The word "rules" is substituted for "regulations" for consistency when referring to carriers. The words "However, this subsection" are inserted for clarity. The words "does not require" are substituted for "Nothing herein provided shall be so construed as to require" for clarity. The words "from this subsection" are substituted for "from the provisions of this paragraph" in 49:318(a) and "from the provisions of this subsection" in 49:906(e) to conform to the revised title. The words "to such extent and for such time, and in such manner as in its judgment" are omitted as unnecessary in view of the restatement. The words "may begin a proceeding under this subsection" are substituted for "after hear ing" in view of subchapter II of chapter 103 of the revised subtitle and subchapter II of chapter 5 of title 5. The words "on application" are substituted for "may apply to" for clarity. The word "group" is substituted for "any class or group" as being more inclusive. The words "for good cause shown" in 49:906(e) (7th sentence proviso) are omitted as surplus in view of the specific criteria imposed by that section. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 10925, 11126 of this title. § 10703. Authority for carriers to establish through routes (a) A carrier providing transportation subject to the jurisdiction of the Interstate Commerce Commission under chapter 105 of this title shall establish through routes as follows: (1) Rail, express, sleeping car, and pipeline carriers shall establish through routes with each other and shall establish rates and classifications applicable to those routes. (2) Rail and water common carriers shall establish through routes with each other and shall establish rates and classifications applicable to those routes. (3) A motor common carrier of passengers shall establish through routes with other carriers of the same type and shall establish individual and joint rates applicable to them. (4)(A) A motor common carrier of property may establish through routes and joint rates and classifications applicable to them with other carriers of the same type, with rail and express carriers, and with water common carriers, including those referred to in subparagraph (D) of this paragraph. (B) A motor common carrier of passengers may establish through routes and joint rates applicable to them with rail carriers or water common carriers, including those referred to in subparagraph (D) of this paragraph, or both. (C) Water common carriers shall establish through routes with each other and shall establish rates and classifications applicable to those routes and may establish (i) through routes and rates and classifications applicable to them with motor common carriers; and (ii) through routes and joint rates and classifications applicable to them with water common carriers referred to in subparagraph (D)(ii) of this paragraph. (D) A through route or joint rate or classification authorized to be established with a carrier referred to in this subparagraph may be established with a water common carrier providing transportation subject to (i) the jurisdiction of the Commission under subchapter III of chapter 105 of this title; or (ii) section 1 of the Shipping Act, 1916 (46 U.S.C. 801) or the Intercoastal Shipping Act, 1933 (46 U.S.C. 843-848) (including persons holding themselves out to transport goods by water but not owning or operating vessels) and providing transportation of |