ities transported, their requirement of special equipment, or their shipment in bulk. The Commission may prescribe conditions applicable to an exemption under this subsection. The Commission may begin a proceeding under this subsection on application of a water contract carrier.

(d)(1) The Commission does not have jurisdiction under this subtitle over transportation by a water common carrier provided between the 48 contiguous States or the District of Columbia, and Alaska if, before January 3, 1959

(A) the carrier provided that transportation, was also a motor common carrier, and has continued to provide the transportation since before that date; and

(B) the transportation was subject to the Shipping Act, 1916 (46 U.S.C. 801 et seq.) or the Intercoastal Shipping Act, 1933 (46 U.S.C. 843-848).

(2) The transportation remains subject to the jurisdiction of the Federal Maritime Commission.

(e) The Commission shall exempt the transportation of property on a vessel furnished by a water contract carrier to a person not a carrier providing transportation or service subject to the jurisdiction of the Commission under this subtitle when the person uses the vessel to transport its own property and the Commission finds its jurisdiction is not necessary to carry out the transportation policy of section 10101 of this title. The Commission may begin a proceeding under this section on its own initiative or on application of an interested party. The Commission may exempt the transportation by person or class of persons. The Commission shall specify the period of time during which the exemption is effective. The Commission may revoke the exemption when it finds that its jurisdiction over the transportation of the property is necessary to carry out the transportation policy of section 10101. The Commission may deny or revoke an exemption only after an opportunity for a proceeding.

(f)(1) The Commission shall exempt the transportation of property by a water carrier under this subchapter when the Commission finds that the carrier is transporting only the property of a person owning substantially all of the voting stock of the carrier. When an exemption is granted, the Commission shall issue a certificate of exemption. The Commission may begin a proceeding under this subsection on its own initiative or on application of an interested party.

(2) The Commission may revoke an exemption granted under this subsection when it finds the water carrier is no longer entitled to the exemption. If the exemption is revoked, the Commission shall restore without further proceedings the authority the water carrier had to provide transportation subject to the jurisdiction of the Commission under this subchapter at the time the exemption became effective. (Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1368; Pub. L. 96-258, § 1(6), June 3, 1980, 94 Stat. 425; Pub. L. 97-449, § 5(g)(2), Jan. 12, 1983, 96 Stat. 2443.)

Revised Section

10544(a)....

49:903(g).

10544(b).... 49:903(e)(1).

10544(c)..... 49:903(e)(2) (less last sentence). 10544(d).... 49:903(e)(3).

10544(e) .... 49:902(e) (3d-5th sentences).

10544(f)..... 49:903(h).

Feb. 4, 1887, ch. 104, 24 Stat. 379, 303(g), (h); added Sept. 18, 1940, ch. 722, $201, 54 Stat. 932, 933. Feb. 4, 1887, ch. 104, 24 Stat. 379, 303(e)(1), (2) (less last sentence); added Sept. 18, 1940, ch. 722, § 201, 54 Stat. 932; restated June 12, 1948, ch. 457, § 1, 62 Stat. 386.

Feb. 4, 1887, ch. 104, 24 Stat. 379, 303(e)(3); added July 12, 1960, Pub. L. 86-615, § 8, 74 Stat. 386; Reorg. Plan No. 7 of 1961, eff. Aug. 12, 1961, § 103, 75 Stat. 840.

Feb. 4, 1887, ch. 104, 24 Stat. 379, 302(e) (3d-5th sentences); added Sept. 18, 1940, ch. 722, § 201, 54 Stat. 930.

In subsection (a), the words "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 words "to exercise jurisdiction" are inserted for clarity and to conform to the language of section 10526(b) of the revised title. The words "transportation by water carrier" are used to introduce all 6 clauses of the section for consistency within the section and with other sections of the subchapter.

Subsection (a)(1) has been restated to conform to the language of section 10526(b)(1) and terms used elsewhere in chapter 105. The words "in interstate commerce" are omitted for consistency and as unnecessary because the Commission only has jurisdiction when specified interstate or foreign commerce is involved.

In subsection (a)(2), the word "vessel" is substituted for "small vessel" because "vessel" is a defined term in section 10102 of the revised title that applies to "watercraft" and the balance of the clause explains what "small" means.

In subsection (b), the words "exempt from its jurisdiction under this subchapter" and "its jurisdiction" are substituted for "exempt from the requirements of this chapter" and "application of such requirements", respectively, for consistency and clarity. The words "any provision", "by order", "or ports", and "thereto❞ are omitted as surplus. The words "of an interested party" are added for clarity.

In subsection (c), the words "It is declared to be the policy of" and "to exclude from the provisions of this chapter, in addition to the transportation otherwise excluded under this section" are omitted as surplus. The words "made in such manner and form as the Commission may by regulations prescribe" are omitted in view of section 10321(a) of the revised title. The words "and limitations" are omitted as unnecessary. The words "by order . . . such of the transportation engaged in by such carrier as it finds necessary to carry out the policy above declared" are omitted as surplus.

Subsection (d) restates the source provisions for clarity and consistency. The word "transportation" is substituted for "operations" because the jurisdiction of the Interstate Commerce Commission is over transportation and the operations of a carrier are included in the definition of transportation.

Subsection (e) restates the source provisions for clarity and consistency. The words "after an opportunity

for a proceeding" are substituted for "reasonable opportunity for hearing" for consistency.

Subsection (f) restates the source provisions for clarity and consistency. The words "substantially all" are substituted for "all or substantially all" to eliminate redundancy. The words "by order", "foregoing provisions", and "if any" are omitted as surplus. The words following the comma in the 2d sentence of 49:903(h) are omitted as unnecessary. The last sentence of 49:903(h) is omitted as unnecessary in view of subchapter II of chapter 5 of title 5.

1980 ACT

This amends section 10544(d)(1) to make a technical change to conform to the source provision.

REFERENCES IN TEXT

The Shipping Act, 1916, referred to in subsec. (d)(1)(B), is act Sept. 7, 1916, ch. 451, 39 Stat. 728, as amended, which is classified principally to chapter 23 (§ 801 et seq.) of Title 46, Shipping. For complete classification of this Act to the Code, see section 842 of Title 46 and Tables.

The Intercoastal Shipping Act, 1933, referred to in subsec. (d)(1)(B), is act Mar. 3, 1933, ch. 199, 47 Stat. 1425, as amended, which is classified generally to chapter 23A (§ 843 et seq.) of Title 46. For complete classification of this Act to the Code, see section 848 of Title 46 and Tables.

AMENDMENTS

1983-Subsec. (d)(1)(B). Pub. L. 97-449 substituted "the Shipping Act, 1916 (46 U.S.C. 801 et seq.) or the Intercoastal Shipping Act, 1933 (46 U.S.C. 843-848)" for "chapters 23 and 23A of title 46".

1980-Subsec. (d)(1). Pub. L. 96-258 added reference to the District of Columbia in the provisions preceding subpar. (A).

EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96-258 effective Oct. 17, 1978, see section 3(d) of Pub. L. 96-258, set out as a note under section 10525 of this title.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 10929 of this title.

SUBCHAPTER IV-FREIGHT
FORWARDER SERVICE

SUBCHAPTER REFERRED TO IN OTHER SECTIONS This subchapter is referred to in sections 10329, 10523, 10701, 10704, 10722, 10730, 10741, 10749, 10762, 10766, 10921, 10923, 10930, 10933, 11101, 11127, 11142, 11323, 11501, 11502, 11702, 11705, 11707, 11904, 11909, 11910, 11914 of this title.

§ 10561. General jurisdiction

(a) Subject to this chapter and other law, the Interstate Commerce Commission has jurisdiction over service that a freight forwarder(1) undertakes to provide; or

(2) is authorized or required under this subtitle to provide;

to the extent transportation is provided in the United States and is between

(A) a place in a State and a place in another State, even if part of the transportation is outside the United States;

(B) a place in a State and another place in the same State through a place outside the State; or

(C) a place in the United States and a place outside the United States.

In the introductory matter of subsection (a), before clause (1), the words "the Interstate Commerce Commission has jurisdiction over service that a freight forwarder" are based on 49:chapter 13 and the words preceding "undertakes" in 49:1002(a)(7). They are inserted to inform the reader of the general jurisdiction of the Commission in the freight forwarder area and to conform to the approach of sections 10501 and 10521 that are based on existing law. The words "Subject to this chapter and other provisions of law" are inserted to inform the reader that other sections of the subtitle qualify the grant of jurisdiction of the Commission under section 10561. The words "or all" are omitted as surplus. The words "freight forwarder" are substituted for "any person. as a freight forwarder" to eliminate redundancy and because the definition of "freight forwarder" applies to a person.

In subsection (a)(1) and (2), the words "perform or" are omitted as redundant.

In subsection (b)(1), the words "air carrier subject to chapter 20 of this title" are substituted for "air carrier subject to the Civil Aeronautics Act of 1938, as amended" because the 1938 Act was repealed and replaced by the Federal Aviation Act of 1958, and the 1958 act is included in the United States Code as chapter 20 of title 49.

§ 10562. Exempt freight forwarder service

The Interstate Commerce Commission does not have jurisdiction under this subchapter

over

(1) service provided by, or under the direction of, a cooperative association (as defined by section 15(a) of the Agricultural Marketing Act (12 U.S.C. 1141j(a))) or by a federation of cooperative associations if the feder ation has no greater power or purposes than a cooperative association;

(2) service subject to the jurisdiction of the Commission and provided with respect to only one of the following categories: (A) ordinary livestock;

(B) fish (including shellfish);

(C) agricultural or horticultural commodities (other than manufactured products thereof); or

(D) used household goods;

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.

In clause (4), the words "warehouseman or other" are omitted as surplus.

10748.

10749.

10750.

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

Transportation of livestock by rail carrier.

Exchange of services and limitation on use of common carriers by freight forwarders. Demurrage charges.

10751. Business entertainment expenses.

10702.

Authority for carriers to establish rates, classifications, rules, and practices.

10703.

Freight forwarder traffic agreements.

SUBCHAPTER V-VALUATION OF PROPERTY Investigation and report by Interstate Commerce Commission.

Requirements for establishing value.

Cooperation and assistance of carriers.

10784.

Revision of property valuations.

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

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.

1

(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".