[Code of Federal Regulations]
[Title 49, Volume 5]
[Revised as of October 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR372.109]

[Page 72-73]
 
                        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

[[Page 73]]

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]