[Code of Federal Regulations]

[Title 49, Volume 5]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 49CFR372.109]



[Page 65]

 

                        TITLE 49--TRANSPORTATION

 

                      DEPARTMENT OF TRANSPORTATION

 

PART 372_EXEMPTIONS, COMMERCIAL ZONES, AND TERMINAL AREAS--Table of 

Contents

 

                          Subpart A_Exemptions

 

Sec. 372.109  Computation of tonnage allowable in nonfarm-non-member 

transportation.



    Interstate transportation performed by a cooperative association or 

federation of cooperative associations for nonmembers who are not 

farmers, cooperative associations, or federations of associations or the 

United States Government for compensation, (except transportation 

otherwise exempt under subtitle IV, part B, chapter 135 of title 49 of 

the United States Code) shall be limited to that which is incidental to 

its primary transportation operation and necessary for its effective 

performance. It shall in no event exceed 25 percent of its total 

interstate transportation services in any fiscal year, measured in terms 

of tonnage. A cooperative association or federation of cooperative 

associations may transport its own property, its members' property, 

property of other farmers and the property of other cooperatives or 

federations in accordance with existing law, except where the provisions 

of Sec. 372.111 may be applicable to the limit on member/nonmember 

transportation.

    (a) The phrase ``incidental to its primary transportation operation 

and necessary for its effective performance'' means that the interstate 

transportation of the cooperative association or federation of 

cooperation association for nonmembers as described above is performed 

with the same trucks or tractors employed in a prior or subsequent trip 

in the primary transportation operation of the cooperative association 

or federation, that it is not economically feasible to operate the 

trucks or tractors empty on return trips (outbound trips in cases where 

the primary transportation operation is inbound to the association or 

federation), and that the additional income obtained from such 

transportation is necessary to make the primary transportation operation 

financially practicable. Transportation for nonmembers as described 

above performed by a cooperative or federation through the use of trucks 

or tractors trip-leased for one-way movements with the cooperative 

association or federation acting as leasee, is not incidental and 

necessary;

    (b) The base tonnage to which the 25-percent limitation is applied 

is all tonnage of all kinds transported by the cooperative association 

or federation of cooperative associations in interstate or foreign 

commerce, whether for itself, its members or nonmembers, for or on 

behalf of the United States or any agency or instrumentality thereof, 

and that performed within the exemption provided by 49 U.S.C. 

13506(a)(5).



[43 FR 2397, Jan. 17, 1978, as amended at 43 FR 21894, May 22, 1978; 45 

FR 45524, July 3, 1980; 62 FR 49940, Sept. 24, 1997]