[Code of Federal Regulations]
[Title 49, Volume 8]
[Revised as of October 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR1420.2]

[Page 236-237]
 
                        TITLE 49--TRANSPORTATION
 
     CHAPTER XI--BUREAU OF TRANSPORTATION STATISTICS, DEPARTMENT OF 
                             TRANSPORTATION
 
PART 1420_REPORTS OF MOTOR CARRIERS--Table of Contents
 
Sec. 1420.2  Classification of carriers--motor carriers of property, 
household goods carriers, and dual property carriers.

    (a) Common and contract motor carriers of property are grouped into 
the following three classes:
    Class I. Carriers having annual carrier operating revenues 
(including interstate and intrastate) of $10 million or more after 
applying the revenue deflator formula in Note A.
    Class II. Carriers having annual carrier operating revenues 
(including interstate and intrastate) of at least $3 million but less 
than $10 million after applying the revenue deflator formula in Note A.
    Class III. Carriers having annual carrier operating revenues 
(including interstate and intrastate) of less than $3 million after 
applying the revenue deflator formula in Note A.
    (b)(1) The class to which any carrier belongs shall be determined by 
annual carrier operating revenues (excluding revenues from private 
carriage, compensated intercorporate hauling, and leasing vehicles with 
drivers to private carriers) after applying the revenue deflator formula 
in Note A. Upward and downward classification will be effective as of 
January 1 of the year immediately following the third consecutive year 
of revenue qualification.
    (2) Any carrier which begins new operations by obtaining operating 
authority not previously held or extends its existing authority by 
obtaining additional operating rights shall be classified in accordance 
with a reasonable estimate of its annual carrier operating revenues 
after applying the revenue deflator formula shown in Note A.
    (3) When a business combination occurs such as a merger, 
reorganization, or consolidation, the surviving carrier shall be 
reclassified effective as of January 1 of the next calendar year on the 
basis of the combined revenues for the

[[Page 237]]

year when the combination occurred after applying the revenue deflator 
formula shown in Note A.
    (4) Carriers must notify the Bureau of Transportation Statistics 
(BTS) of any change in classification or any change in annual operating 
revenues that would cause a change in classification. The carrier may 
request a waiver or an exception from these regulations in unusual or 
extenuating circumstances, where the classification process will unduly 
burden the carrier, such as partial liquidation or curtailment or 
elimination of contracted services. The request must be in writing, 
specifying the conditions justifying the waiver or exception. BTS will 
notify the carriers of any change in classification.
    (5) Carriers not required to file an Annual Report Form M may be 
required to file the Worksheet for Calculating Carrier Classification. 
All carriers will be notified of any classification changes.

    Note A: Each carrier's operating revenues will be deflated annually 
using the Producers Price Index (PPI) of Finished Goods before comparing 
those revenues with the dollar revenue limits prescribed in paragraph 
(a) of this section. The PPI is published monthly by the Bureau of Labor 
Statistics. The formula to be applied is as follows:
[GRAPHIC] [TIFF OMITTED] TC03MR91.051


[52 FR 10383, Apr. 1, 1987, as amended at 59 FR 5111, Feb. 3, 1994; 59 
FR 49848, Sept. 30, 1994. Redesignated at 63 FR 52193, Sept. 30, 1998, 
and amended at 64 FR 13921, 13922, Mar. 23, 1999; 68 FR 4719, Jan. 30, 
2003]