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On August 22, 2019 the Federal Motor Carrier Safety Administration (FMCSA) published a notice of proposed rulemaking (NPRM) seeking comments on proposed changes to the Hours of Service regulations. The proposed changes are intended to provide flexibility in several areas following concerns raised by industries and commercial drivers. These include:
The entire notice can be found here including additional discussion about comments received and Agency reasonings. Originally, the NPRM noted a due date for comments of October 7th, however, that deadline has been extended to October 21. FMCSA is seeking comments from the industries and drivers impacted by these potential changes. More information on the topic can be found here and comments may be submitted to FMCSA here.
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On August 1 President Trump announced through a series of tweets that on September 1 a 10% tariff will be placed on the remaining $300 billion of goods exported from China. The President cited China's unfulfilled promises of increased agricultural purchases from the U.S. At the time of the announcement, List 4 was not yet available.
On August 13 the Administration backed off the Sept. 1 deadline for products including laptops, cell phones and other consumer goods. Yesterday, August 20th, the U.S. Trade Representative posted a Federal Register notice on Section 301 List 4 tariffs. The notice includes two lists as the Administration indicated would be created last week. List 4A represents goods with a tariff rate of 10% that be implemented as originally scheduled on Sept. 1 and List 4B represents those goods which have a delayed tariff implementation date of Dec. 15. Reuters reported the delayed goods represent about half of the $300 billion worth of goods targeted. "We're doing this for Christmas season, just in case some of the tariffs would have an impact on U.S. customers," Trump told reporters. The Federal Register Notice further clarifies that List 4A, which begins Sept. 1, includes products where China's share of U.S. imports from the world is less than 75%. List 4B, which begins Dec. 15, includes products where China's share of U.S. imports from the world is 75% or greater. The Federal Register Notice further goes on to say, "USTR will publish a separate notice describing the product exclusion process, including the procedures for submitting exclusion requests, and an opportunity for interested persons to submit oppositions to a request." China's Response In response to President Trump's claims of unfulfilled agricultural product purchases, Reuters reports an official from China’s National Development and Reform Commission (NDRC) commented the accusation was “groundless." The Administration then labeled China a currency manipulator, which the Washington Post "is mostly symbolic, requiring the U.S. Administration to consult with the International Monetary Fund to try to eliminate the unfair advantage the currency measures have given the country." Since the allegation, the International Monetary Fund (IMF), according to the AP, reported that its yearly review of the Chinese economy found "...little evidence that China's central bank has deliberately reduced the value of the nation's currency." Reuters reported that Treasury Secretary Mnuchin has been seeking to further engage the International Monetary Fund on this issue, though the IMF has not yet responded. On Thursday (August 15), as USTR posted its Federal Register Notice, China responded further. The Chinese government released a single sentence statement vowing to retaliate if List 4 goes into effect. The AP reports China promised "necessary countermeasures," which were not further defined. According to Reuters, though China vowed to retaliate, the sentiment included a call to the U.S. to meet halfway on a trade deal. September Trade Talks Currently, China and the U.S. are scheduled to meet again in September to resume trade talks. The Wall Street Journal reported that President Trump told reporters last Friday, August 9, "We're not ready to make a deal, but we'll see what happens." Meanwhile, Politico reported the President went on to say "We'll see whether or not we keep our meeting in September." However, NTC Director Navarro reported (via Reuters) "the United States was still planning to hold another round of trade talks with Chinese negotiators." Most recently, in response to China's promise of retaliation, President Trump told reporters (via Reuters), "September, the meeting is still on as I understand it." NATM is soliciting nominations for awards to be presented at the 32nd Annual Convention & Trade Show Feb. 11-13, 2020 the South Point Hotel Casino & Spa in Las Vegas, Nev. Please consider and nominate individuals who may be eligible candidates for the following awards.
Outstanding Member Award The Outstanding Member Award is presented each year to an individual who has made a significant contribution to the trailer manufacturing industry. The nominee must be an employee of an NATM Regular (trailer manufacturer) member. The nomination must include the name and address of the nominee and nominator along with a brief narrative about the contributions the nominee has made to the trailer manufacturing industry. Pam O’Toole Trusdale Woman in Manufacturing Award The Pam O’Toole Trusdale Woman in Manufacturing Award is given to a woman from the manufacturing floor to the C-Suite in the light- and medium-duty trailer industry who has demonstrated excellence in their role. The nominee must be an employee of an NATM member company. The award recognizes the contribution of the recipient to the success of their organization and/or industry. The nomination should include the name and address of the nominee and nominator along with a brief narrative about the accomplishments of the nominee. Young Professional Award The purpose of the Young Professional Award is to recognize the accomplishments of young individuals in the trailer manufacturing industry. Nominees should be individuals under the age of 40, who have been innovative and successful in the trailer manufacturing industry. Both Associate and Regular member company employees are eligible for this award. The nomination should include the name and address of the nominee and nominator along with a brief narrative about the accomplishments of the nominee. Green Award The purpose of the Green Award is to recognize an NATM Regular (trailer manufacturer) member company that has made significant contributions to improving the environmental impact within the trailer industry. The nomination should include a written description of the company’s contributions to positively impacting the environment in the trailer manufacturing industry. The document should provide qualitative and quantitative evidence of environment improvements. Nominees will be judged on case studies where the companies have been able to demonstrate improved performance in environmental manufacturing. This may include maximizing energy efficiency levels, compliance with environmental regulations and minimizing waste from the production process. Manufacturers should be able to illustrate success in reducing their environmental impact, as well as converting green manufacturing into a business opportunity. Awards will be presented at the Annual Awards Luncheon on Tuesday, Feb. 11, 2020. To download the award nomination form, visit www.NATM.com or submit your nomination by email to NATM Membership & Events Director Kelli.Maydew@natm.com; fax (785) 272-4455; or mail to NATM Headquarters, 2420 SW 17th St. NATM headquarters receives frequent questions from trailer dealers and end-users about state troopers and local enforcement officers pulling over towed trailers the drivers thought did not require a commercial driver's license (CDL). Is this a result of overly-aggressive law enforcement at work? Or a lack of awareness regarding CDL laws? Perhaps a combination of both? What appears to be behind these inquiries is the vagueness of the CDL laws and the general confusion and disagreement this vagueness naturally generates. So, let’s try to clear up some of this confusion. Congress has charged the U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) with responsibility for implementing the federal CDL laws through federal regulations and has directed the states to issue CDLs in conformity with these regulations. The FMCSA’s CDL regulations appear in the Code of Federal Regulations, 49 C.F.R. Part 383. The FMCSA requires drivers to have a CDL – either a Class A, a Class B, or Class C (for transporting passengers or hazardous materials) – in order to operate defined types of commercial motor vehicles (CMVs) in interstate, intrastate, or foreign commerce. To clarify its regulations, the FMCSA publishes a graphic illustrating the various vehicle configurations constituting the groups of CMVs requiring a Class A or Class B CDL. That graphic can be found below. State and local law enforcement often refer to it for guidance. The FMCSA requires drivers to have a CDL to operate a motor vehicle if that vehicle meets the FMCSA definition of a “commercial motor vehicle” and is used in “commerce.” The FMCSA defines both terms in this two-part requirement in 49 C.F.R. § 383.5. The great misunderstanding out there, within the trailer industry and probably within the law enforcement community, about the CDL requirements springs from those two definitions, particularly the word “commerce.” The FMCSA defines a “commercial motor vehicle” as a motor vehicle, or a combination of motor vehicles, in certain GVWR-based configurations, when used in “commerce” to transport “property or passengers.” The physical configuration component of the CMV definition is very mechanical, very objective. When dealing with a tow vehicle-trailer combination, you look at the gross combination weight rating (GCWR) of the tow vehicle if the tow-vehicle manufacturer has assigned it a GCWR and displays it on its certification label. With respect to the familiar combination, a tow vehicle (whether truck, automobile, or tractor) towing a trailer, the driver needs a CDL if the tow-vehicle manufacturer’s assigned GCWR exceeds 26,000 lbs. (as shown on its cert label) and the trailer’s gross vehicle weight rating (GVWR) exceeds 10,000 lbs. If there is no assigned GCWR, the FMCSA regulations require the driver to have a CDL only if the sum of the GVWRs of the tow vehicle and the trailer together exceeds 26,000 lbs. and the trailer’s GVWR exceeds 10,000 lbs. In either scenario that satisfies the definition of “commercial motor vehicle,” the driver will need a Class A CDL, assuming the trailer’s use also satisfies the second component of the CDL requirement, “used in commerce,” as discussed below. With respect to a single vehicle, the FMCSA requires the driver to have a Class B CDL to operate that truck, bus, van, or automobile in commerce if that vehicle has a GVWR of more than 26,000 lbs. It is required even if that vehicle is a power unit (truck, automobile, or van) and is towing a trailer with a GVWR of 10,000 lbs. or less. If the trailer’s GVWR exceeds 10,0000 lbs., a Class A CDL is needed if its use also satisfies the second prong of the CDL requirement. The second prong of the CDL requirement, and of the CMV definition, is much more troubling, much more subjective, and the primary source of the confusion. To qualify as a CMV requiring a CDL, that vehicle, even in a qualifying GCWR/GVWR configuration, must be used in “commerce.” “Commerce” has its own separate definition in § 385.3 of the FMCSA’s regulations. The FMCSA defines it broadly as any trade, traffic, or transportation between points in one state and points in another state or any trade, traffic, or transportation that “affects” trade, traffic, or transportation in the U.S. between points in one state and points in another. Not exactly an enlightening definition, to say the least. How this “use” assessment turns out often varies depending upon who is doing the assessing. And that is often the law enforcement officer on the scene. As a starting point, the proper inquiry, then, is whether this questionable CMV is transporting property (across state lines) for some commercial purpose, as opposed to for the personal use of the owner, driver, or some other person. What the trailer owner considers his or her own “personal use” may in fact, upon close examination, turn out to be for a “commercial purpose” when viewed through the critical eyes of the state or local law enforcement officer. Let’s examine several tricky examples:
Complicating the question of whether a CDL is necessary are a hodge-podge of state CDL laws, many of which are at variance with the federal law that FMCSA has issued. States are not prohibited from enacting their own state CDL laws, applying them to non-interstate movements (i.e. the trailer does not cross the state line), if those state laws are stricter than the federal law. In theory, the state law of State A might require its residents to have a different class of CDL, perhaps designated as a “Class D,” to tow a 26,000-lbs. GVWR trailer when used for personal use. In the third “tricky example” above, even if the student does not need a CDL under federal law to haul his lawn mower (because the trailer’s GVWR is less than 10,000 lbs.), he may need one anyway because the state law of the state where he resides requires one even to pull a light-duty trailer. State A must, however, honor the out-of-state driver’s license issued by State B to its residents: for example, if State B does not require a CDL for its residents to operate a vehicle for personal use, then State A may not require a State B resident to have a CDL while operating a vehicle for personal use in State A even if State A requires its own residents to have a “Class D” CDL for this purpose. The CDL complaints that NATM fields typically revolve around the smaller, medium-duty trailers (between 10,000 lbs. and 26,000 lbs. GVWR) and the debate over personal use vs. commercial use. In sum, assuming commercial use, when the GVWR of the truck exceeds 26,000 lbs., a CDL is required, regardless of the GVWR of the trailer, and when the GVWR of the truck is less than 26,000 lbs., a CDL is required only if (1) that truck’s GVWR and the trailer’s GVWR, added together, exceed 26,000 lbs. and (2) the trailer’s GVWR exceeds 10,000 lbs. Dealers should be prepared to provide that objective guidance about what tow vehicle-trailer configurations may need a CDL when asked by their customers, but they would be well advised to stay away from declaring, when asked, that the customer’s intended end-use of the trailer meets or does not meet the FMCSA definition of “used in commerce.” This precaution is especially warranted if the trailer’s intended use, as described by the owner, falls within the murky, gray area of personal vs. commercial use or the dealer is unsure about the niceties of the state CDL laws that might apply. It is also important for the dealer to keep in mind that a trailer’s use might be “personal” on one or more trips but “in commerce” on others. Better that the driver have that CDL and not need it than not to have one when stopped and forced try to explain to the officer that this “trip” is really only a “one-off,” a rare exception to his usual personal use.
NATM is excited to once again offer free full registrations for trailer manufacturers’ spouses. NATM hopes you will plan to bring your other half along to enjoy the show. Exhibitors can save $50 per person by adding additional booth workers before Jan. 1, 2020. New to the Show? Get Complimentary Registrations and Room Nights!NATM trailer manufacturers who have never attended the NATM Convention, or who have not attended in the last five years, are eligible for two complimentary full registrations and two complimentary hotel room nights (while available) as part of the New Member Promotion. Full registrations include access to all events and meals (except Top Golf Tee-Off) outlined in the show calendar. This is an affordable opportunity for trailer manufacturers to receive top notch education, networking and develop supplier relationships all under the Vegas lights. Please contact NATM Membership & Events Director Kelli Maydew at Kelli.Maydew@natm.com or call (785) 272-4433 to take advantage of this promotion! New! Tee-Off to Convention Top Golf Event
Do You Know Your NATM Login Credentials?In an effort to keep member profiles more secure, our website software provider will no longer allow NATM access to member passwords. Your login credentials have not been changed. However, with multiple upcoming events we wanted to ensure that every member can successfully log on to the website with their login credentials. If you haven’t done so recently, we would encourage you to log on to the members only side of NATM.com to ensure you know your company’s login credentials. Can’t remember your username/password? No problem! You can reset your password here: https://bit.ly/33D2sCO. Simply enter your main contact’s email address and wait for the reset email from NATMHQ@natm.com. You may also call NATM at (785) 272-4433 and have your company’s credentials manually reset by NATM staff. In order to receive member pricing on Convention & Trade Show registration, you must be logged in to your member profile. NATM is soliciting nominations for awards to be presented at the 32nd Annual Convention & Trade Show Feb. 11-13, 2020 the South Point Hotel Casino & Spa in Las Vegas, Nev. Please consider and nominate individuals who may be eligible candidates for the following awards.
Congressional Briefing Visits Ten Things To Remember
Use the photos below to pair with your social media posts.
Don't forget to use #NATMTrailerAdvocacy for all of your NATM Regulatory Roundup posts.  Tuesday, September 10, 2019
NATM PAC Reception* 4:00 pm K&L Gates, 1601 K St. NW Wednesday, September 11, 2019 Regulatory Roundup 8:30 am K&L Gates, 1601 K St. NW Capitol Hill Visit Preparation and Lunch 11:30 am K&L Gates, 1601 K St. NW Capitol Hill Visits 1:30 pm Capitol Hill, Congressional Offices Dinner 6:30 pm Old Ebbitt Grill 675 15th St. NW *The NATM PAC Reception, per FEC regulation, is only open to those individuals having an active agreement on file with the PAC. For questions about your ability to participate, please contact Kendra Ansley at Kendra.Ansley@natm.com |
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