Regardless of the Province, State or Country of registration of the equipment or domicile of the carrier, if you own or operate a heavy vehicle (any truck with a net weight of 3000 kilograms (6,614 lbs.) within the Province of Québec, you must be registered with the Quebec Transport Commission (QTC). In addition, any party acting as an intermediary (load brokers, freight forwarders, third party logistics firms, etc.) must also be registered as such with the QTC. If, after April 1, 1999, you are not registered and are the subject of an inspection within the Province of Québec, you will be faced with significant fines and penalties that could even include seizure of your vehicle.

The intent of the new legislation is to improve truck and bus safety and improve the integrity of the Québec's road network. One of the attributes of the Act is that it clearly states the definition and the responsibilities of "owners", "operators", and "intermediaries". The new Act abolishes any differentiation between "for-hire" and "private" carriers and establishes audit procedures and safety ratings that apply equally to both. Most importantly, the Act brings load brokers into the regulatory system. For the first time in the Province of Québec, the lines of responsibility and accountability are clearly defined as it attempts to eliminate the escape hatches and loopholes that hindered uniform enforcement in the past. With the system of checks and balances built into the new law, all parties must ensure the parties they deal with are in compliance with all applicable laws and regulations.

Definitions:

Vehicle owner:

• A person or company whose name appears on the vehicle registration certificate regardless of jurisdiction; or,
• A person or company who has possession of a vehicle leased or acquired under terms or conditions that give it the right of ownership; or,
• A person or company who holds a right on the vehicle under Section 2 of the Quebec Highway Safety Code (lien holder or finance company); or,
• A person or company who leases a heavy vehicle for a period of at least one year.

Vehicle Operator:

• A person who offers services related to:
• the transportation of persons or goods;
• towing or road assistance,
• operates a heavy vehicle for personal use.

(The classification of "operator" applies regardless of whether or not the services of the driver are supplied by the leasing company.) The "owner" and "operator" may be the same party but not necessarily the driver. Should a trucking company use another carrier for either pick-up, delivery or line-haul service it is the company whose name appears on the bill of lading that is considered the operator. The trucking company is required to be also registered as an intermediary if it charges a fee for this type of transaction.

NOTE:  It is possible to register as an "owner" or "operator" or as both.

Intermediary:

Any person who, for remuneration, acts directly or indirectly as an intermediary in a transaction with other parties whose object is the transportation of goods by heavy vehicle.

NOTE: The intermediary's name cannot appear as the carrier on the bill of lading if it does not qualify under the definition of "owner" or "operator" as stated above. An intermediary who is not the owner (under above definition) of heavy vehicles cannot be registered as an operator.

Responsibilities of Vehicle Owners:

• Must be registered with the QTC;
• Must ensure that the vehicle conforms to Highway Safety Code standards;
• Must maintain vehicle mechanical fitness;
• Must notify the operator of any QTC ruling that would restrict the vehicle's use;
• Must ensure the operator is not subject to any prohibition or restriction. Exercise due diligence in ensuring the vehicle is operated safely and in compliance with the laws and regulations.

Responsibilities of Operators:

• Must be registered with the QTC;
• Must ensure that the driver is legally qualified to operate the vehicle and has demonstrated on-road performance, has an acceptable driving record and conforms to hours-of-service regulations,
• Must confirm that the vehicle owner is not subject to any prohibition or restriction under the Act.
• Must conform with all operating restrictions, including: load securement; compliance with weights and dimensions regs.; compliance with transportation of hazardous substances regs.; production and safekeeping of all required records and documents;
• Must maintain in each vehicle he operates but does not own, a copy of the leasing contracts or services regarding the vehicle;
• Exercise due diligence in ensuring the vehicle is operated safely and in compliance with the laws and regulations;
• Must ensure any 3-PL or intermediary he deals with is registered with the QTC.

Responsibilities of Intermediaries:

• Must be registered with the QTC;
• Must ensure owners and operators he contracts with are registered with the QTC.

If an intermediary is not registered with the QTC any contract it enters into will be null and void. Any intermediary who falsely declares he is registered or offers his services without having registered will be subject of a fine of $350 to $1050 for the first offense and $700 to $2100 for any subsequent offense. Any operator who enters into a contract involving an intermediary who is not registered will commit an infraction and will be subject to a fine of $350 to $1050 for the first offense and for subsequent offenses $700 to $2100. This regulation applies to every load broker who arranges for transportation with an origin or destination or both origin and destination in the Province of Québec, regardless of domicile.

Why register?

• Only parties registered as owners are allowed to place a heavy vehicle in circulation on a public highway in the Province of Québec;
• Only parties registered as operators are allowed to operate or offer the services of a heavy vehicle on a public highway in the Province of Québec;
• Only parties registered as intermediaries are allowed to act as intermediaries to arrange for the transportation of goods by a registered owner or operator for any movement having an origin, destination or both in the Province of Québec.

How to register?

Complete and file the registration form with the Quebec Transport Commission. Filing fee of $50.00 per year for a fleet of 2 vehicles or fewer or $100.00 per year for more than 2 heavy vehicles.

For more information:

A change in U.S. customs regulation on cabotage will bring U.S. and Canadian regulations into conformity. With the change Canadian trucks can now legally carry a domestic U.S. load after delivering a cross border shipment. U.S. trucks already had the right to carry a Canadian domestic load after delivering a cross border shipment. However, in both countries, due to immigration restrictions, a foreign driver can not drive a domestic shipment.

The new rule is a result of a joint effort by the Canadian Trucking Alliance and the American Trucking Association to harmonize national regulations for international trucking. It is felt that the U.S. regulatory adjustment is important in improving the flexibility and efficiency of trucking operations that have equipment on both sides of the border.

Have you signed up yet to take advantage of a volume discount FCA-NATC has obtained with Sprint Canada? Some of the costs, features and benefits are:

• 10.5 cents per minute, 24 hrs/day on all Canada-U.S. long distance and incoming Toll Free calls (800, 877 etc.).
• This same low rate applies on all US-Canada calls - check your US-Canada volume to determine how much you may save.
• No charge if the call is disconnected within 10 seconds.
• Extensive flexibility in the method of receiving invoices.
• No rounding, bills to the second.

For further information check out the article on our website at http://www.fca-natc.org or contact Dave Sirgey at (800) 559-7421 ext. 214 if you are interested in this membership benefit.

What is the Year 2000 problem?

On January 1, 2000, many computers, computer-based systems and automated equipment, may stop working, malfunction, or reprogram themselves, resulting in the interruption of critical services and a permanent loss of information. This is known as the "Year 2000" problem.

All federal departments with systems that provide critical services to Canadians and businesses have been working on solutions to avoid any interruptions to these services on January 1, 2000.

Revenue Canada has been preparing for the Year 2000 since 1988. However, because the Year 2000 problem may affect any computer, it is important for businesses and individuals that do business with the Canadian government to do their part in preparing for this inevitable deadline.

If your business uses computer-based systems or other automated equipment, you could have a Year 2000 problem. If you have not yet taken action, do so now!

Tax relief to small business for Year 2000 compliance - Tax relief is available for small- and medium-sized businesses to address the Year 2000 computer compliance problem. For more details, visit the Department of Finance web site at: www.fin.gc.ca/newse98/98-057e.html

Year 2000 as a business expense - Are Year 2000 expenditures considered as capital or income expenses? The answer depends on the nature of the expenditure and the resulting benefit to the business. For more details consult:

• Revenue Canada Interpretation Bulletin, IT-128, Capital Cost Allowance - Depreciable Property, available at: www.rc.gc.ca/E/pub/tp/eit128rw/eit128rw.html
• Issue 97-250 of Revenue Canada's Technical News (No. 12), available at: www.rc.gc.ca/E/pub/tp/tn012et/tn012e.txt.html

Want more information on Year 2000? - If you want more information on the Year 2000, call the federal government's toll-free Year 2000 information line at 1-800-270-8220.

The following Internet web sites also contain information on the Year 2000 that may help you identify problems and locate service providers that can assist you in solving your Year 2000 problems.

• Task Force Year 2000 - Industry Canada: strategis.ic.gc.ca/sos2000
• Government of Canada /CIO - Year 2000 Project Office: www.info2000.gc.ca

"© Her Majesty the Queen in Right of Canada as represented by the Minister of National Revenue, (1998), reproduced with the permission of the Minister of Public Works and Government Services Canada".

Le 1er janvier 2000, bon nombre d'ordinateurs, de systèmes informatiques et d'appareils automatisés pourraient tomber en panne, avoir une défaillance ou se reprogrammer eux-mêmes, entraînant ainsi une interruption de services essentiels et une perte irrécupérable de données. C'est ce qu'on appelle le "problème de l'an 2000 ".

Tous les ministères fédéraux où il y a des systèmes qui fournissent des services essentiels aux Canadiens et aux entreprises travaillent à l'élaboration de solutions pour éviter les interruptions de ces services le 1er janvier 2000. Revenu Canada se prépare à l'an 2000 depuis 1988. Cependant, comme le problème de l'an 2000 pourrait toucher n'importe quel ordinateur, il est important pour les entreprises et les particuliers qui font affaire avec le gouvernement canadien d'apporter leur contribution aux préparatifs pour cette échéance inévitable. Si votre entreprise utilise des systèmes informatiques ou du matériel automatisé, le problème de l'an 2000 pourrait vous toucher. Si vous n'avez pas encore commencé vos préparatifs, faites-le dès maintenant!

Allégement fiscal accordé aux petites entreprises pour se préparer au passage à l'an 2000 - Un allégement fiscal est offert aux petites et moyennes entreprises afin qu'elles puissent s'attaquer au problème de la conformité de leurs ordinateurs à l'an 2000. Pour en savoir plus, visitez le site Web du ministère des Finances à l'adresse suivante: www.fin.gc.ca/newsf98/98-057f.html

Les dépenses liées au problème de l'an 2000 sont-elles des dépenses d'entreprise? - Plus précisément, s'agit-il de dépenses en capital ou de dépenses visant à gagner un revenu? Tout dépend de la nature de la dépense et de l'avantage qui en résulte pour l'entreprise. Pour en savoir plus à ce sujet, consultez les documents suivants:

• le bulletin d'interprétation IT-128, Déduction pour amortissement - Biens amortissables, accessible à l'adresse suivante: www.rc.gc.ca/F/pub/tp/fit128rw/fit128rw.html
• le numéro 97-250 des Nouvelles techniques de Revenu Canada (no 12), accessible à l'adresse suivante: www.rc.gc.ca/F/pub/tp/tn012ft/tn012f.txt.html

Pour en savoir plus - Vous voulez plus de renseignements sur le problème de l'an 2000? Appelez le service d'information téléphonique sans frais du gouvernement fédéral, au 1-800-270-8220. Les sites Web suivants contiennent aussi des renseignements sur le problème de l'an 2000 qui pourraient vous aider à cerner vos problèmes et à trouver des fournisseurs en mesure de vous offrir des solutions :

"© Sa Majesté la Reine du Canada, représentée par le ministre du Revenu national, (1998), reproduit avec l'autorisation du ministre des Travaux publics et des Services gouvernement aux Canada".

In past newsletters, we reported on our efforts relative to the retention of the rate bureaus' antitrust immunity. Early in 1997, we joined forces with EC-MAC and RMB to ensure the applications for immunity were granted by the Surface Transportation Board (SurfBoard) at the end of 1998. Below is a brief chronology of events:

The ICC Termination Act of 1995 extends the provisions of Reed-Bulwinkle (antitrust immunity). Congress provided that all existing motor carrier bureau agreements would be permitted to remain in effect until December 31, 1998, after which, if renewal is sought, they will continue in effect to the extent that we [the SurfBoard] find that renewal is not contrary to the public interest.

On May 20, 1997, the SurfBoard instituted a proceeding, which was prompted by an application for nationwide authority filed by Southern Motor Carriers (SMC) (The SurfBoard grouped all the Bureaus into one proceeding (Section 5a Application No. 118 (Amendment No. 1), et al. ) The SurfBoard requested comments on the following four issues:

1. Should the Board renew motor carrier rate bureau agreements;
2. Is antitrust immunity needed for any bureau activity other than collective ratemaking;
3. Should they grant the applications that had been filed by the bureaus for nationwide authority;
4. Whether the bureaus can admit shippers and non-carriers as members.

The SurfBoard received comments and replies from the bureaus, major shipper associations as well as the Department of Justice and the Department of Transportation. In general, the shipper groups and government entities opposed continued immunity on the basis that it is not required and the Bureaus could continue their activities without it while the motor carrier interests supported its' retention on the basis it was essential for the Bureaus to continue to operate. Congressmen Rahall (D-W.Va) and Quinn (R-Buffalo) in letters to the SurfBoard expressed support for the retention of the immunity for the Bureaus.

It soon became evident (through speeches and other public comments by SurfBoard members) the Board was inclined to deny the applications for renewal. With EC-MAC and RMB, NATC began congressional contacts to secure legislative amendments that would remove the renewal provisions from the Act to ensure the SurfBoard would not capriciously withdraw the Bureaus' immunity.

On August 5, 1998, on behalf of six of the regional rate bureaus (all but SMC) M. Tansey presented testimony at a hearing before the House Subcommittee on Surface Transportation that addressed a number of motor carrier issues as well as the retention of antitrust exemption. We expressed our concerns about the imminent STB action and asked for congressional assistance. (Please call if you wish to obtain a copy of our testimony). There was no opportunity to pass legislation before the end of the last session of Congress.

On November 17, 1998, the Honorable Bud Shuster and the Honorable James L. Oberstar, the Chairman and Ranking Democratic Member, respectively, of the U.S. House of Representatives Committee on Transportation and Infrastructure; the Honorable Thomas E. Petri and the Honorable Nick J. Rahall, Jr., the Chairman and the Ranking Democratic Member, respectively, of the Surface Transportation Committee, sent a letter to the Chairman of the Surface Transportation Board, informing her that the Committee intends to review a number of provisions contained in the ICC Termination Act of 1995 (ICCTA) related to motor carriers along with their future consideration on reauthorizing the SurfBoard.

The letter stated:

As you know, the reauthorization was anticipated to be considered in 1998 but for various reasons had been delayed. We therefore urge the Board to refrain from taking any action in any case that would set major new policies or overturn existing practices in the motor carrier area before Congress has the opportunity to more fully consider and act upon these issues.

On December 19, 1998, the SurfBoard served it's decision in Section 5a Application No. 118 (Amendment No. 1) et al. The Board acknowledged the letter from the four Congressmen and extended the antitrust immunity for at least one year, subject to the outcome of the intended congressional review and resulting legislative measures. Should there be no new legislation at the end of the congressional session, the Surf Board will initiate a proceeding looking into implementing some changes. These changes relate to the level of "benchmark" rate levels, which the SurfBoard feels, are unrealistically high and therefore contrary to the public interest.

On January 27, 1999, along with EC-MAC, the New England and Rocky Mountain Bureaus, NATC filed a petition for reconsideration. The bureaus submit that the decision is erroneous and unsupported by the record or by law for several reasons including:

1. The "benchmark" rates are not too high either as a result of collective ratemaking or for any other reason.
2. The market for motor carrier services remains highly competitive and numerous shipper price/service options are available.
3. Bureau members are generally smaller carriers which compete actively with much larger, non-bureau carriers.
4. There is no evidence in the record of this proceeding that any shipper is unduly paying undiscounted bureau class rates, much less that there exists a class of "vulnerable" shippers which warrant the kind of intrusive regulatory intervention contemplated by the rate reduction condition.
5. There is no evidence that the class rates maintained by rate bureaus, which are in many cases lower than class rates published by large, non-bureau carriers, are "unrealistically high" or that those rates are otherwise unreasonable in the circumstances in which they are charged.
6. The fact that motor carriers adopt general rate increases, as they are specifically allowed to do collectively by the Termination Act, demonstrates only that bureau carriers -- like non-bureau carriers that also implement such increases - require a mechanism that provides an opportunity to recoup costs.
7. The Board has ignored substantial evidence in the record concerning collective ratemaking, specifically, evidence concerning the fact that collective ratemaking facilitates the formulation of joint rates and through routes by smaller carriers, allowing them to offer shippers competitive options to the rates and services of larger carriers.

Our efforts continue and we will keep you posted of any new development in this matter. If you wish to receive copies of any of the pleadings or testimony, do not hesitate to call Dave Sirgey (Extension 214) or Micheline Tansey (Extension 210).

The ever-changing environment in which the LTL carriers operate requires that carriers continuously review and revise their rules to ensure they are properly setting forth the terms and conditions governing their contracts or rate agreements.

In an effort to help our members in this endeavor we will be conducting a study of carriers' current terms, conditions and accessorial charges. If you haven't already, all member carriers will be receiving a request to send us their rules tariff, value added service sheet, terms and conditions list, etc. By doing so you will become part of our study to update the rules governing services provided in today's marketplace for both domestic (U.S. or Canada) and cross border traffic.

Ultimately we envision this project resulting in the issuance of three sets of streamlined, user-friendly rules, one applicable to Canadian domestic traffic, one applicable to U.S. domestic traffic and one applicable to U.S./Canada traffic.

Member carriers can then decide which provisions they wish to adopt for their own account or make modifications to them so they better fit their operation. In any event, we want to offer our services to undertake one of those cumbersome projects that you know needs to be done but you don't have the time to do it and even if you did you are not sure where to start! Well now you do. Just send us your current rules tariff, terms sheet, whatever it is that you use today on any traffic in North America.

Are there services or requirements in today's market that are not covered in your rules that should be? Use this project as the vehicle to get such a rule in place. The more tariffs, suggestions and questions we receive from our carriers, the better our end product will be.

If you're having difficulties defining the parameters of service guarantees, appointment deliveries or any service, let us know. We will be in the unique position of having access to numerous opinions on these matters from throughout the U.S. and Canada.

So watch for our letter or simply send us your rules tariff now (Attn: Ken Leising).

All carriers who send their rules will be entitled to a report comparing their provisions with those of other carriers.

FCA/NATC is proud to announce the release of QuickLanes™. QuickLanes™ allows you to easily create through rates using your own lane rates and your connecting carriers' or cartage agents' rates for the "beyond" portion of the move.

LANES DATABASE

• Name, Create, Edit and Save your own lane rates.
• Multiple rates for the same lane or distance can be set-up (by density for example).
• Set-up a description for each lane i.e.
• Toronto to Vancouver
• Plant Site ABC to Calgary
• 2,500 miles/10 lbs. Cu.ft.
• Montreal to Chicago.

BEYOND LANE RATES

• Name, Create and Save the beyond rates you use.
• Set-up transfer points and connecting carriers for example:
• Banff, AB via Calgary AB (carrier ABCD)
• Cardston, AB via Calgary, AB (carrier ABCD)
• Victoria, BC via Vancouver, BC (carrier ABCD)
• Roberval, PQ via Alma, PQ (carrier ABCD)
• Select from multiple connecting carriers for the same beyond lane.
• Increase specific connecting carriers rates on a global basis.

THROUGH RATE CALCULATION

• Combines your lane rates with a beyond carriers' rate to easily produce a through rate.
• Each portion of the through rate can be discounted or increased independently.
• Calculates total transit time based on service standards you enter for your portion and the beyond lane.

OUTPUT

• Includes terms & Conditions 1/
• Include salesperson and terminal locations 1/
• Include accessorial charges 1/
• Select only the applicable weight groups
• Handles multiple destinations

1/ From program databases you create and maintain.

Please give us a call to discuss QuickLanes™.

We are in the process of aggregating our responses to this years Revenue Adjustment Survey. Survey participants will receive a comparison of their company vs. the aggregate results.

If you would like to participate, please call Dave Sirgey at (800) 559-7421 ext. 214.

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