The Department of Defense has released updated DP3 business rules for the upcoming 2022 400NG and IT tariffs. The Daycos team has reviewed the changes and identified those that can have a significant impact on the invoicing process. These changes are effective May 15, 2022.
Changes in Both the 400NG & IT-22:
- Effective Dates Unchanged
- The tariff cycle will use the regular effective dates, starting May 15, 2022, and ending May 14, 2023. The first draft in August suggested changing the start date to April 1, 2022, which fell through.
- General Price Adjustment (GPA) Rate Increase
- The GPA rate increase of 3.403187923% applies to both tariffs.
- Surcharges Removed
- In 2021, the lumber surcharge implemented in both tariffs was to offset the rising wood costs. The lumber surcharge is removed in the 2022 tariffs.
- The Port Security and War Risk surcharges are removed from both tariffs.
- Reweigh Changes
- The reweigh tolerance is updated. When the reweigh weight is less than the initial net weight, the tolerances increase from 100lbs to 150lbs on shipments less than 5000lbs, and from a 2%-5% difference on shipments weighing over 5000lbs.
- Non-performance fee eliminated
- The $400 non-performance fee that TSPs were required to pay when a reweigh was not completed has been removed.
- 110% of the entitlement weight to replace non-performance fee
- Instead of paying the $400 non-performance fee, the tariff will now cap the amount you can bill if an automatic or member/PPSO requested reweigh is not performed.
- When a reweigh is not completed, the TSP can only seek payment up to 110% of the customer entitlement (includes 10% for packing).
- Please read our blog post for more information on the financial impact this change may potentially have when a reweigh is not performed.
Changes in 400NG Only:
- Code 2 Selection Criteria Removed
- Item 105E for Uncrating Removed
- Uncrating is now in the crating rate/charge. As a result, the crating rate increased.
Change in IT-22 Only:
- External Crating Rate Reduced
- The external crating rate is reducing to $9.83. The adjustment appears due to removing the increased surcharge amount added in the 2021 tariff to offset the costs of lumber.
Preparing for 2022
Please note that this is not a comprehensive list of tariff changes. We recommend all TSPs and service providers review the complete updated rules in their entirety on the USTRANSCOM Defense Personal Property Program webpage.
All Daycos products and services will be updated in accordance with the 2022 rate changes, including MoversPay, our free rating tool available at daycos.moverspay.com.
The Daycos team will continue to analyze the DOD rules, information, and rates to ensure our TSP and agent clients’ revenue is streamlined and maximized. If you need help managing your revenue, please contact us.