[Title 46 CFR ]
[Code of Federal Regulations (annual edition) - October 1, 2014 Edition]
[From the U.S. Government Publishing Office]



[[Page i]]



          Title 46

Shipping


________________________

Part 500 to End

                         Revised as of October 1, 2014

          Containing a codification of documents of general
          applicability and future effect

          As of October 1, 2014
                    Published by the Office of the Federal Register
                    National Archives and Records Administration as a
                    Special Edition of the Federal Register

[[Page ii]]

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[[Page iii]]




                            Table of Contents



                                                                    Page
  Explanation.................................................       v

  Title 46:
          Chapter IV--Federal Maritime Commission                    3
  Finding Aids:
      Table of CFR Titles and Chapters........................     291
      Alphabetical List of Agencies Appearing in the CFR......     311
      List of CFR Sections Affected...........................     321

[[Page iv]]





                     ----------------------------

                     Cite this Code: CFR
                     To cite the regulations in
                       this volume use title,
                       part and section number.
                       Thus, 46 CFR 501.1 refers
                       to title 46, part 501,
                       section 1.

                     ----------------------------

[[Page v]]



                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and
permanent rules published in the Federal Register by the Executive
departments and agencies of the Federal Government. The Code is divided
into 50 titles which represent broad areas subject to Federal
regulation. Each title is divided into chapters which usually bear the
name of the issuing agency. Each chapter is further subdivided into
parts covering specific regulatory areas.
    Each volume of the Code is revised at least once each calendar year
and issued on a quarterly basis approximately as follows:

Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1

    The appropriate revision date is printed on the cover of each
volume.

LEGAL STATUS

    The contents of the Federal Register are required to be judicially
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie
evidence of the text of the original documents (44 U.S.C. 1510).

HOW TO USE THE CODE OF FEDERAL REGULATIONS

    The Code of Federal Regulations is kept up to date by the individual
issues of the Federal Register. These two publications must be used
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    To determine whether a Code volume has been amended since its
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EFFECTIVE AND EXPIRATION DATES

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OMB CONTROL NUMBERS

    The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires
Federal agencies to display an OMB control number with their information
collection request.

[[Page vi]]

Many agencies have begun publishing numerous OMB control numbers as
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PAST PROVISIONS OF THE CODE

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``[RESERVED]'' TERMINOLOGY

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This material, like any other properly issued regulation, has the force
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    (a) The incorporation will substantially reduce the volume of
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    (b) The matter incorporated is in fact available to the extent
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    (c) The incorporating document is drafted and submitted for
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this volume.

[[Page vii]]

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    Charles A. Barth,
    Director,
    Office of the Federal Register.
    October 1, 2014.







[[Page ix]]



                               THIS TITLE

    Title 46--Shipping is composed of nine volumes. The parts in these
volumes are arranged in the following order: Parts 1-40, 41-69, 70-89,
90-139, 140-155, 156-165, 166-199, 200-499, and 500 to end. The first
seven volumes containing parts 1-199 comprise chapter I--Coast Guard,
DHS. The eighth volume, containing parts 200--499, includes chapter II--
Maritime Administration, DOT and chapter III--Coast Guard (Great Lakes
Pilotage), DHS. The ninth volume, containing part 500 to end, includes
chapter IV--Federal Maritime Commission. The contents of these volumes
represent all current regulations codified under this title of the CFR
as of October 1, 2014.

    For this volume, Bonnie Fritts was Chief Editor. The Code of Federal
Regulations publication program is under the direction of John Hyrum
Martinez, assisted by Jim Hemphill.

[[Page 1]]



                           TITLE 46--SHIPPING




                  (This book contains part 500 to End)

  --------------------------------------------------------------------
                                                                    Part

chapter iv--Federal Maritime Commission.....................         501

[[Page 3]]



                 CHAPTER IV--FEDERAL MARITIME COMMISSION




  --------------------------------------------------------------------

           SUBCHAPTER A--GENERAL AND ADMINISTRATIVE PROVISIONS
Part                                                                Page
500

[Reserved]

501             The Federal Maritime Commission--General....           5
502             Rules of practice and procedure.............          19
503             Public information..........................          94
504             Procedures for environmental policy analysis         128
505             Administrative offset.......................         133
506             Civil monetary penalty inflation adjustment.         135
507             Enforcement of nondiscrimination on the
                    basis of handicap in programs or
                    activities conducted by the Federal
                    Maritime Commission.....................         137
508             Employee ethical conduct standards and
                    financial disclosure regulations........         143
 SUBCHAPTER B--REGULATIONS AFFECTING OCEAN SHIPPING IN FOREIGN COMMERCE
515             Licensing, financial responsibility
                    requirements, and general duties for
                    ocean transportation intermediaries.....         144
520             Carrier automated tariffs...................         169
525             Marine terminal operator schedules..........         185
530             Service contracts...........................         188
531             NVOCC Service arrangements..................         199
532             NVOCC Negotiated rate arrangements..........         209
535             Ocean common carrier and marine terminal
                    operator agreements subject to the
                    Shipping Act of 1984....................         210
540             Passenger vessel financial responsibility...         248

[[Page 4]]

545             Interpretations and statements of policy....         268
  SUBCHAPTER C--REGULATIONS AND ACTIONS TO ADDRESS RESTRICTIVE FOREIGN
                           MARITIME PRACTICES
550             Regulations to adjust or meet conditions
                    unfavorable to shipping in the foreign
                    trade of the United States..............         269
551             Actions to adjust or meet conditions
                    unfavorable to shipping in the U.S.
                    foreign trade...........................         274
555             Actions to address adverse conditions
                    affecting U.S.-flag carriers that do not
                    exist for foreign carriers in the United
                    States..................................         274
560             Actions to address conditions unduly
                    impairing access of U.S.-flag vessels to
                    ocean trade between foreign ports.......         278
565             Controlled carriers.........................         283
566-599

[Reserved]

   SUBCHAPTER D--REGULATIONS AFFECTING MARITIME CARRIERS AND RELATED
                ACTIVITIES IN FOREIGN COMMERCE [RESERVED]

[[Page 5]]



           SUBCHAPTER A_GENERAL AND ADMINISTRATIVE PROVISIONS



                           PART 500 [RESERVED]



PART 501_THE FEDERAL MARITIME COMMISSION_GENERAL--Table of Contents



                  Subpart A_Organization and Functions

Sec.
501.1 Purpose.
501.2 General.
501.3 Organizational components of the Federal Maritime Commission.
501.4 Lines of responsibility.
501.5 Functions of the organizational components of the Federal Maritime
          Commission.

                         Subpart B_Official Seal

501.11 Official seal.

          Subpart C_Delegation and Redelegation of Authorities

501.21 Delegation of authorities.
501.22 [Reserved]
501.23 Delegation to the General Counsel.
501.24 Delegation to the Secretary.
501.25 Delegation to and redelegation by the Managing Director.
501.26 Delegation to and redelegation by the Director, Bureau of
          Certification and Licensing.
501.27 Delegation to and redelegation by the Director, Bureau of Trade
          Analysis.
501.28 Delegation to the Director, Bureau of Enforcement.

                Subpart D_Public Requests for Information

501.41 Public requests for information and decisions.

Appendix A to Part 501--Federal Maritime Commission Organization Chart

    Authority: 5 U.S.C. 551-557, 701-706, 2903 and 6304; 31 U.S.C. 3721;
41 U.S.C. 414 and 418; 44 U.S.C. 501-520 and 3501-3520; 46 U.S.C. 301-
307, 40101-41309, 42101-42109, 44101-44106; Pub. L. 89-56, 70 Stat. 195;
5 CFR Part 2638; Pub. L. 104-320, 110 Stat. 3870.

    Source: 70 FR 7659, Feb. 15, 2005, unless otherwise noted.



                  Subpart A_Organization and Functions



Sec. 501.1  Purpose.

    This part describes the organization, functions and Official Seal
of, and the delegation of authority within, the Federal Maritime
Commission (``Commission'').



Sec. 501.2  General.

    (a) Statutory functions. The Commission regulates common carriers by
water and other persons involved in the oceanborne foreign commerce of
the United States under provisions of the Shipping Act of 1984 (46
U.S.C. 40101-41309); section 19 of the Merchant Marine Act, 1920 (46
U.S.C. 42101-42109); the Foreign Shipping Practices Act of 1988 (46
U.S.C. 42301-42307); sections 2 and 3, Public Law 89-777, Financial
Responsibility for Death or Injury to Passengers and for Non-Performance
of Voyages (46 U.S.C. 44101-44106); and other applicable statutes.
    (b) Establishment and composition of the Commission. The Commission
was established as an independent agency by Reorganization Plan No. 7 of
1961, effective August 12, 1961, and is composed of five Commissioners
(``Commissioners'' or ``members''), appointed by the President, by and
with the advice and consent of the Senate. Not more than three
Commissioners may be appointed from the same political party. The
President designates one of the Commissioners to serve as the Chairman
of the Commission (``Chairman'').
    (c) Terms and vacancies. The term of each member of the Commission
is five years and begins when the term of the predecessor of that member
ends (i.e., on June 30 of each successive year), except that, when the
term of office of a member ends, the member may continue to serve until
a successor is appointed and qualified. A vacancy in the office of any
Commissioner shall be

[[Page 6]]

filled in the same manner as the original appointment, except that any
person chosen to fill a vacancy shall be appointed only for the
unexpired term of the Commissioner whom he or she succeeds. Each
Commissioner shall be removable by the President for inefficiency,
neglect of duty, or malfeasance in office.
    (d) Quorum. A vacancy or vacancies in the Commission shall not
impair the power of the Commission to execute its functions. The
affirmative vote of a majority of the members of the Commission is
required to dispose of any matter before the Commission. For purposes of
holding a formal meeting for the transaction of the business of the
Commission, the actual presence of two Commissioners shall be
sufficient. Proxy votes of absent members shall be permitted.
    (e) Meetings; records; rules and regulations. The Commission shall,
through its Secretary, keep a true record of all its meetings and the
yea-and-nay votes taken therein on every action and order approved or
disapproved by the Commission. In addition to or in aid of its
functions, the Commission adopts rules and regulations in regard to its
powers, duties and functions under the shipping statutes it administers.

[70 FR 7659, Feb. 15, 2005, as amended at 74 FR 50714, Oct. 1, 2009]



Sec. 501.3  Organizational components of the Federal Maritime
Commission.

    The major organizational components of the Commission are set forth
in the Organization Chart attached as Appendix A to this part. An
outline table of the components/functions follows:
    (a) Office of the Chairman of the Federal Maritime Commission.
(Chief Executive and Administrative Officer, FOIA and Privacy Act
Appeals Officer.)
    (1) Information Security Officer.
    (2) Designated Agency Ethics Official.
    (b) Offices of the Members of the Federal Maritime Commission.
    (c) Office of the Secretary. (FOIA and Privacy Act Officer, Federal
Register Liaison, Performance Improvement Officer.)
    (d) Office of the General Counsel. (Ethics Official, Legislative
Counsel.)
    (e) Office of Administrative Law Judges.
    (f) Office of Equal Employment Opportunity.
    (g) Office of the Inspector General.
    (h) Office of the Managing Director. (Chief Operating Officer, Chief
Acquisition Officer, Audit Follow-up and Management Controls Official,
Chief Information Officer, Chief Financial Officer, Competition
Advocate, Senior Agency Official for Privacy.)
    (1) Office of Budget and Finance.
    (2) Office of Human Resources. (Information Security Officer.)
    (3) Office of Information Technology. (Chief Technology Officer, IT
Security Officer.)
    (4) Office of Management Services. (Physical Security, FMC
Contracting Officer.)
    (5) Bureau of Certification and Licensing.
    (i) Office of Passenger Vessels and Information Processing.
    (ii) Office of Ocean Transportation Intermediaries.
    (6) Bureau of Trade Analysis.
    (i) Office of Agreements.
    (ii) Office of Economics and Competition Analysis.
    (iii) Office of Service Contracts and Tariffs.
    (7) Bureau of Enforcement.
    (8) Area Representatives.
    (i) Office of Consumer Affairs and Dispute Resolution Services.
(Ombudsman, Senior Dispute Resolution Specialist.)
    (j) Boards and Committees.
    (1) Executive Resources Board.
    (2) Performance Review Board.

[70 FR 7659, Feb. 15, 2005, as amended at 75 FR 29452, May 26, 2010]



Sec. 501.4  Lines of responsibility.

    (a) Chairman. The Office of the Secretary, the Office of the General
Counsel, the Office of Administrative Law Judges, the Office of Consumer
Affairs and Dispute Resolution Services, the Office of Equal Employment
Opportunity, the Office of the Managing Director, and officials
performing the functions of Information Security Official, report to the
Chairman of the Commission.
    (b) Commission. The Inspector General reports to the Commission.

[[Page 7]]

    (c) Office of the Managing Director. The Bureau of Certification and
Licensing, Bureau of Enforcement, Bureau of Trade Analysis, Area
Representatives, Office of Budget and Finance, Office of Human
Resources, Office of Information Technology, and Office of Management
Services report to the Office of the Managing Director. The Office of
Equal Employment Opportunity and the Office of the Inspector General
receive administrative guidance from the Managing Director. All other
units of the Commission receive administrative direction from the
Managing Director.

[75 FR 29452, May 26, 2010, as amended at 75 FR 31321, June 3, 2010; 77
FR 59128, Sept. 26, 2012]



Sec. 501.5  Functions of the organizational components of the Federal
Maritime Commission.

    As further provided in subpart C of this part, the functions,
including the delegated authority of the Commission's organizational
components and/or officials to exercise their functions and to take all
actions necessary to direct and carry out their assigned duties and
responsibilities under the lines of responsibility set forth in Sec.
501.4, are briefly set forth as follows:
    (a) Chairman. As the chief executive and administrative officer of
the Commission, the Chairman presides at meetings of the Commission,
administers the policies of the Commission to its responsible officials,
and ensures the efficient discharge of their responsibilities. The
Chairman provides management direction to the Offices of Equal
Employment Opportunity, Secretary, General Counsel, Administrative Law
Judges, Consumer Affairs and Dispute Resolution Services, and Managing
Director with respect to all matters concerning overall Commission
workflow, resource allocation (both staff and budgetary), work
priorities and similar managerial matters; and establishes, as
necessary, various committees and boards to address overall operations
of the agency. The Chairman serves as appeals officer under the Freedom
of Information Act, the Privacy Act, and the Federal Activities
Inventory Reform Act of 1998. The Chairman appoints the heads of major
administrative units after consultation with the other Commissioners. In
addition, the Chairman, as ``head of the agency,'' has certain
responsibilities under Federal laws and directives not specifically
related to shipping. For example, the special offices or officers within
the Commission, listed under paragraphs (a)(1) through (a)(3) of this
section, are appointed or designated by the Chairman, are under his or
her direct supervision and report directly to the Chairman:
    (1) Under the direction and management of the Office Director, the
Office of Equal Employment Opportunity (``EEO'') ensures that statutory
and regulatory prohibitions against discrimination in employment and the
requirements for related programs are fully implemented. As such, the
Office administers and implements comprehensive programs on
discrimination complaints processing, affirmative action and special
emphasis. The Director, EEO, advises the Chairman regarding EEO's plans,
procedures, regulations, reports and other matters pertaining to policy
and the agency's programs. Additionally, the Director provides
leadership and advice to managers and supervisors in carrying out their
respective responsibilities in equal employment opportunity. The EEO
Office administers and implements these program responsibilities in
accordance with Equal Employment Opportunity Commission (``EEOC'')
Regulations at 29 CFR Part 1614 and other relevant EEOC Directives and
Bulletins.
    (2) The Information Security Officer is a senior agency official
designated under Sec. 503.52 of this chapter to direct and administer
the Commission's information security program, which includes an active
oversight and security education program to ensure effective
implementation of Executive Orders 12958 and 12968.
    (3) The Designated Agency Ethics Official and Alternate are
appropriate agency employees formally designated under 5 CFR 2638.202
and Sec. 508.101 of this chapter to coordinate and manage the ethics
program as set forth in 5 CFR 2638.203, which includes the functions of
advising on matters of employee responsibilities and conduct, and
serving

[[Page 8]]

as the Commission's designee(s) to the Office of Government Ethics on
such matters. They provide counseling and guidance to employees on
conflicts of interest and other ethical matters.
    (b) Commissioners. The members of the Commission, including the
Chairman, implement various shipping statutes and related directives by
rendering decisions, issuing orders, and adopting and enforcing rules
and regulations governing persons subject to the shipping statutes; and
perform other duties and functions as may be appropriate under
reorganization plans, statutes, executive orders, and regulations. In
addition, the Inspector General reports to and is under the general
supervision of the Commission.
    (1) Under the direction and management of the Inspector General, the
Office of Inspector General conducts, supervises and coordinates audits
and investigations relating to the programs and operations of the
Commission; reviews existing and proposed legislation and regulations
pertaining to such programs and operations; provides leadership and
coordination and recommends policies for activities designed to promote
economy, efficiency, and effectiveness in the administration of, and to
prevent and detect waste, fraud and abuse in, such programs and
operations; and advises the Commission and the Congress fully and
currently about problems and deficiencies relating to the administration
of such programs and operations and the necessity for and progress of
corrective action.
    (2) [Reserved]
    (c) Secretary. Under the direction and management of the Secretary,
the Office of the Secretary:
    (1) Is responsible for the preparation, maintenance and disposition
of the official files and records documenting the business of the
Commission. In this regard, the Office:
    (i) Prepares and, as appropriate, publishes agenda of matters for
action by the Commission; prepares and maintains the minutes with
respect to such actions; signs, serves and issues, on behalf of the
Commission, documents implementing such actions, and coordinates follow-
up thereon.
    (ii) Receives and processes formal and informal complaints involving
alleged statutory violations, petitions for relief, special dockets
applications, applications to correct clerical or administrative errors
in service contracts, requests for conciliation service, staff
recommendations for investigation and rulemaking proceedings, and
motions and filings relating thereto.
    (iii) Disseminates information regarding the proceedings,
activities, functions, and responsibilities of the Commission to the
maritime industry, news media, general public, and other government
agencies. In this capacity the Office also:
    (A) Administers the Commission's Freedom of Information Act, Privacy
Act and Government in the Sunshine Act responsibilities; the Secretary
serves as the Freedom of Information Act and Privacy Act Officer.
    (B) Authenticates records of the Commission.
    (C) Compiles and publishes the bound volumes of Commission
decisions.
    (D) Coordinates publication of documents, including rules and
modifications thereto with the Office of the Federal Register; the
Secretary serves as the Federal Register Liaison Officer and Certifying
Officer.
    (E) Oversees the content and organization of the Commission's Web
site and authorizes the publication of documents thereon.
    (2) Through the Secretary and, in the absence or preoccupation of
the Secretary, through the Assistant Secretary, administers oaths
pursuant to 5 U.S.C. Sec. 2903(b).
    (3) Manages the Commission's library and related services.
    (4) Serves as the lead executive responsible for development, in
coordination with the Managing Director, of the agency's strategic plan,
monitoring of results of strategic goals and objectives, and preparation
of all required reports.
    (d) General Counsel. Under the direction and management of the
General Counsel, the Office of the General Counsel:
    (1) Reviews for legal sufficiency all staff memoranda and
recommendations

[[Page 9]]

that are presented for Commission action and staff actions acted upon
pursuant to delegated authority under Sec. Sec. 501.27(e) and
501.27(g).
    (2) Provides written or oral legal opinions to the Commission, to
the staff, and to the general public in appropriate cases.
    (3) Prepares and/or reviews for legal sufficiency, before service,
all final Commission decisions, orders, and regulations.
    (4) Monitors, reviews and, as requested by the Committees of the
Congress, the Office of Management and Budget, or the Chairman, prepares
comments on all legislation introduced in the Congress affecting the
Commission's programs or activities, and prepares draft legislation or
amendments to legislation; coordinates such matters with the appropriate
Bureau, Office or official and advises appropriate Commission officials
of legislation that may impact the programs and activities of the
Commission; prepares testimony for congressional hearings and responses
to requests from congressional offices.
    (5) Serves as the legal representative of the Commission in courts
and in administrative proceedings before other government agencies.
    (6) Monitors and reports on international maritime developments,
including laws and practices of foreign governments which affect ocean
shipping; and identifies potential state-controlled carriers within the
meaning of section 3(8) of the Shipping Act of 1984 (46 U.S.C.
40102(8)), researches their status, and makes recommendations to the
Commission concerning their classification.
    (7) Represents the Commission in U.S. Government interagency groups
dealing with international maritime issues; represents the Commission
and acts as technical advisor in bilateral and multilateral maritime
discussions; and coordinates Commission activities through liaison with
other government agencies and programs and international organizations.
    (8) Screens, routes, and maintains custody of U.S. Government and
international organization documents, subject to the classification and
safekeeping controls administered by the Commission's Information
Security Officer.
    (9) Reviews for legal sufficiency all adverse personnel actions,
procurement activities, Freedom of Information Act, Privacy Act matters,
requests for testimony by employees and production of official records
in litigation and other administrative actions.
    (e) Administrative Law Judges. Under the direction and management of
the Chief Administrative Law Judge, the Office of Administrative Law
Judges holds hearings and renders initial or recommended decisions in
formal rulemaking and adjudicatory proceedings as provided in the
Shipping Act of 1984, and other applicable laws and other matters
assigned by the Commission, in accordance with the Administrative
Procedure Act and the Commission's Rules of Practice and Procedure.
    (f) Office of the Managing Director.
    (1) The Managing Director:
    (i) As Chief Operating Officer, is responsible to the Chairman for
the management and coordination of Commission programs managed by the
Bureaus of Certification and Licensing; Trade Analysis; Enforcement; the
Commission's Area Representatives; Offices of Budget and Finance; Human
Resources; Management Services; and Information Technology, as more
fully described below, and thereby implements the regulatory policies of
the Commission and the administrative policies and directives of the
Chairman. The Managing Director also provides administrative guidance to
the Offices of Equal Employment Opportunity and Inspector General;
    (ii) The Office initiates recommendations, collaborating with other
elements of the Commission as warranted, for long-range plans, new or
revised policies and standards, and rules and regulations;
    (iii) Ensures the periodic review and updating of Commission Orders;
    (iv) Interprets and administers governmental policies and programs
in a manner consistent with Federal guidelines, including those
involving financial management, human resources, information technology,
and procurement;

[[Page 10]]

    (v) Is responsible for coordinating records management activities
and developing Paperwork Reduction Act clearances for submission to the
Office of Management and Budget;
    (vi) Is responsible for directing and administering the Commission's
training and development function;
    (vii) Acts as the Commission's representative to the Small Agency
Council;
    (viii) Is the agency's Chief Acquisition Officer under the Services
Acquisition Reform Act of 2003, Public Law 108-136, 117 Stat. 1663 and
Commission Order 112;
    (ix) Is the Audit Follow-up and Management (Internal) Controls
Official for the Commission under Commission Orders 103 and 106;
    (x) Is the agency's Chief Financial Officer;
    (xi) Is the agency's Chief Operating Officer;
    (xii) Serves as the Senior Agency Official for Privacy under
Commission Order 89;
    (2) The Deputy Managing Director is the Commission's Competition
Advocate under Commission Order 112.
    (3) The Assistant Managing Director is the Commission's Chief
Information Officer and Records Management Officer. The Assistant
Managing Director provides direction to the Office of Information
Technology in interpreting and administering governmental policies and
programs for information technology in a manner consistent with federal
guidelines. The Assistant Managing Director initiates recommendations,
collaborating with other elements of the Commission as warranted, for
long-range plans, new or revised policies and standards, and rules and
regulations with respect to the use and security of information and
technology.
    (4) Other offices under the management direction of the Managing
Director are as follows:
    (i) The Office of Budget and Finance, under the direction and
management of the Office Director, administers the Commission's
financial management program, including fiscal accounting activities,
fee and forfeiture collections, and payments, and ensures that
Commission obligations and expenditures of appropriated funds are
proper; develops annual budget justifications for submission to the
Congress and the Office of Management and Budget; develops and
administers internal controls systems that provide accountability for
agency funds; administers the Commission's travel and cash management
programs, ensures accountability for official passports; and assists in
the development of proper levels of user fees.
    (ii) The Office of Human Resources, under the direction and
management of the Office Director, plans and administers a complete
personnel management program including: Recruitment and placement;
position classification and pay administration; occupational safety and
health; employee counseling services; employee relations; workforce
discipline; performance appraisal; incentive awards; retirement;
personnel security; and the Commission's Human Capital Management Plan.
The Office Director serves as the Commission's Human Capital Management
Officer. A human resources specialist within the Office serves as the
Information Security Officer under Commission Order 80.
    (iii) The Office of Information Technology, under the direction and
management of the Office Director, administers the Commission's
information technology (``IT'') program under the Paperwork Reduction
Act of 1995, as amended, as well as other applicable laws that prescribe
responsibility for operating the IT program. The Office provides
administrative support with respect to information technology to the
program operations of the Commission. The Office's functions include:
Conducting IT management studies and surveys; managing data and voice
telecommunications; developing and managing databases and applications;
and administering IT contracts. The Office is also responsible for
managing the computer security program. The Director of the Office
serves as the Commission's Chief Technology Officer; the IT Security
Officer reports to the Director of the Office under Commission Order 80.
    (iv) The Office of Management Services, under the direction and
management of

[[Page 11]]

the Office Director, directs and administers a variety of management
support service functions of the Commission including conducting
internal management reviews and recommending changes in organization and
workflow processes. The Director of the Office is the Commission's
principal Contracting Officer under Commission Order 112. Programs
include: Acquisition of all goods and services used by the Commission;
building security and emergency preparedness; real and personal property
management; printing and copying; mail services; graphic design;
equipment maintenance; and transportation. The Office Director is the
agency's liaison with the Small Agency Council's Procurement and
Administrative Services Committees and with the General Services
Administration (``GSA'') and the Department of Homeland Security
(``DHS'') on the Building Security Committee.
    (g) Under the direction and management of the Bureau Director, the
Bureau of Certification and Licensing:
    (1) Through the Office of Transportation Intermediaries, has
responsibility for reviewing applications for Ocean Transportation
Intermediary (``OTI'') licenses, and maintaining records about
licensees.
    (2) Through the Office of Passenger Vessels and Information
Processing, has responsibility for reviewing applications for
certificates of financial responsibility with respect to passenger
vessels, reviewing requests for substitution of alternative forms of
financial protection, managing all activities with respect to evidence
of financial responsibility for OTIs and passenger vessel owner/
operators, and for developing and maintaining all Bureau database and
records of OTI applicants and licensees.
    (h) Under the direction and management of the Bureau Director, the
Bureau of Trade Analysis, through its Office of Agreements; Office of
Economics and Competition Analysis; and Office of Service Contracts and
Tariffs, reviews agreements and monitors the concerted activities of
common carriers by water, reviews and analyzes service contracts,
monitors rates of government controlled carriers, reviews carrier
published tariff systems under the accessibility and accuracy standards
of the Shipping Act of 1984 (46 U.S.C. 40501(a)-(g)), responds to
inquiries or issues that arise concerning service contracts or tariffs,
and is responsible for competition oversight and market analysis.
    (i) Under the direction and management of the Bureau Director, the
Bureau of Enforcement:
    (1) Participates as trial counsel in formal Commission proceedings
when designated by Commission order, or when intervention is granted;
    (2) Initiates, processes and negotiates the informal compromise of
civil penalties under Sec. 501.28 and Sec. 502.604 of this chapter,
and represents the Commission in proceedings and circumstances as
designated;
    (3) [Reserved]
    (4) Coordinates with other bureaus and offices to provide legal
advice, attorney liaison, and prosecution, as warranted, in connection
with enforcement matters;
    (5) Conducts investigations leading to enforcement action, advises
the Commission of evolving competitive practices in international
oceanborne commerce, and assesses the practical repercussions of
Commission regulations.
    (j) Area Representatives. Maintain a presence in locations other
than Washington, DC, with activities including the following:
    (1) Representing the Commission within their respective geographic
areas;
    (2) Providing liaison between the Commission and the shipping
industry and interested public; conveying pertinent information
regarding regulatory activities and problems; and recommending courses
of action and solutions to problems as they relate to the shipping
public, the affected industry, and the Commission;
    (3) Furnishing to interested persons information, advice, and access
to Commission public documents;
    (4) Receiving and resolving informal complaints, in coordination
with the Director, Office of Consumer Affairs and Dispute Resolution
Services;
    (5) Investigating potential violations of the shipping statutes and
the Commission's regulations;

[[Page 12]]

    (6) Conducting shipping industry surveillance programs to ensure
compliance with the shipping statutes and the Commission's regulations.
Such programs include common carrier audits, service contract audits and
compliance checks of OTIs;
    (7) Upon request of the Bureau of Certification and Licensing,
auditing passenger vessel operators to determine the adequacy of
performance bonds and the availability of funds to pay liability claims
for death or injury, and assisting in the background surveys of OTI
applicants;
    (8) Conducting special surveys and studies, and recommending
policies to strengthen enforcement of the shipping laws;
    (9) Maintaining liaison with Federal and State agencies with respect
to areas of mutual concern; and
    (10) Providing assistance to the various bureaus and offices of the
Commission, as appropriate and when requested.
    (k) The Office of Consumer Affairs and Dispute Resolution Services,
under the direction and management of the Office Director, has
responsibility for developing and implementing the Alternative Dispute
Resolution Program, responds to consumer inquiries and complaints, and
coordinates the Commission's efforts to resolve disputes within the
shipping industry. The Office reviews existing and proposed legislation
and regulations for impact on the shipping industry and its consumers
and recommends appropriate policies and regulations to facilitate trade.
The Director of the Office of Consumer Affairs and Dispute Resolution
Services is designated as the agency's Senior Dispute Resolution
Specialist pursuant to section 3 of the Administrative Dispute
Resolution Act, Public Law 101-552, as amended by section 4(a) of Public
Law 104-320. The Director also serves as the Commission's Ombudsman.
    (l) Boards and Committees. The following boards and committees are
established by separate Commission orders to address matters relating to
the overall operations of the Commission:
    (1) The Executive Resources Board (``ERB'') is composed of members
of the Senior Executive Service as designated by the Chairman. The
Chairman shall designate an ERB chair on a rotational basis beginning
October 1 of each year. The Board meets on an ad hoc basis to discuss,
develop and submit recommendations to the Chairman on matters related to
the merit staffing process for career appointments in the Senior
Executive Service, including the executive qualifications of candidates
for career appointment. The Board also plans and manages the
Commission's executive development programs. Serving the Board in a non-
voting advisory capacity are the Director, Office of Equal Employment
Opportunity, the Training Officer, and the Director, Office of Human
Resources, who also serves as the Board's secretary. [Commission Order
No. 95.]
    (2) The Performance Review Board (``PRB'') is chaired by a
Commissioner designated by the Chairman, and is composed of a standing
register of members which is published in the Federal Register. Once a
year, the PRB Chairman appoints performance review panels from the
membership to review individual performance appraisals and other
relevant information pertaining to Senior Executives at the Commission,
and to recommend final performance ratings to the Chairman. [Commission
Order No. 115.] Every three years, the PRB considers supervisors'
recommendations as to whether Senior Executives of the Commission should
be recertified under the Ethics Reform Act of 1989, and makes
appropriate recommendations to the Commission's Chairman. [Commission
Order No. 118.]
    (3) The Maritime Environmental Committee (``MEC'') is an internal
Committee made up of Commission staff as designated by the Chairman. The
MEC advises the Chairman and the Commission on issues involving
environmental and sustainable shipping practices, initiatives,
operational proposals, and similar matters affecting entities regulated
by the Commission to assist the Commission in its review and regulation
of agreements and in its statutory

[[Page 13]]

responsibility for ensuring an efficient ocean transportation system.

[70 FR 7659, Feb. 15, 2005, as amended at 74 FR 50714, Oct. 1, 2009; 75
FR 29452, May 26, 2010; 75 FR 31321, June 3, 2010; 77 FR 59128, Sept.
26, 2012; 78 FR 13277, Feb. 27, 2013; 79 FR 24351, Apr. 30, 2014]



                         Subpart B_Official Seal



Sec. 501.11  Official seal.

    (a) Description. Pursuant to section 201(c) of the Merchant Marine
Act, 1936, as amended (46 U.S.C. 301(d)), the Commission prescribes its
official seal, as adopted by the Commission on August 14, 1961, which
shall be judicially noticed. The design of the official seal is
described as follows:
    (1) A shield argent paly of six gules, a chief azure charged with a
fouled anchor or; shield and anchor outlined of the third; on a wreath
argent and gules, an eagle displayed proper; all on a gold disc within a
blue border, encircled by a gold rope outlined in blue, and bearing in
white letters the inscription ``Federal Maritime Commission'' in upper
portion and ``1961'' in lower portion.
    (2) The shield and eagle above it are associated with the United
States of America and denote the national scope of maritime affairs. The
outer rope and fouled anchor are symbolic of seamen and waterborne
transportation. The date ``1961'' has historical significance,
indicating the year in which the Commission was created.
    (b) Design.
    [GRAPHIC] [TIFF OMITTED] TR15FE05.000


[70 FR 7659, Feb. 15, 2005, as amended at 74 FR 50714, Oct. 1, 2009]



          Subpart C_Delegation and Redelegation of Authorities



Sec. 501.21  Delegation of authorities.

    (a) Authority and delegation. Section 105 of Reorganization Plan No.
7 of 1961, August 12, 1961, authorizes the Commission to delegate, by
published order or rule, any of its functions to a division of the
Commission, an individual Commissioner, an administrative law judge, or
an employee or employee board, including functions with respect to
hearing, determining, ordering, certifying, reporting or otherwise
acting as to any work, business or matter. In subpart A of this part,
the Commission has delegated general functions, and in this subpart C it
is delegating miscellaneous, specific authorities set forth in
Sec. Sec. 501.23, et seq., to the delegatees designated therein,
subject to the limitations prescribed in subsequent subsections of this
section.
    (b) Deputies. Where bureau or office deputies are officially
appointed, they are hereby delegated all necessary authority to act in
the absence or incapacity of the director or chief.
    (c) Redelegation. Subject to the limitations in this section, the
delegatees may redelegate their authorities to subordinate personnel
under their supervision and direction; but only if this subpart is
amended to reflect such redelegation and notice thereof is published in
the Federal Register. Under any redelegated authority, the redelegator
assumes full responsibility for actions taken by subordinate
redelegatees.
    (d) Exercise of authority; policy and procedure. The delegatees and
redelegatees shall exercise the authorities delegated or redelegated in
a manner consistent with applicable laws and the established policies of
the Commission, and shall consult with the General Counsel where
appropriate.
    (e) Exercise of delegated authority by delegator. Under any
authority delegated or redelegated, the delegator (Commission), or the
redelegator, respectively, shall retain full rights to exercise the
authority in the first instance.
    (f) Review of delegatee's action. The delegator (Commission) or
redelegator

[[Page 14]]

of authority shall retain a discretionary right to review an action
taken under delegated authority by a subordinate delegatee, either upon
the filing of a written petition of a party to, or an intervenor in,
such action; or upon the delegator's or redelegator's own initiative.
    (1) Petitions for review of actions taken under delegated authority
shall be filed within ten (10) calendar days of the action taken:
    (i) If the action for which review is sought is taken by a
delegatee, the petition shall be addressed to the Commission pursuant to
Sec. 502.69 of this chapter.
    (ii) If the action for which review is sought is taken by a
redelegatee, the petition shall be addressed to the redelegator whose
decision can be further reviewed by the Commission under paragraph
(f)(1)(i) of this section, unless the Commission decides to review the
matter directly, such as, for example, in the incapacity of the
redelegator.
    (2) The vote of a majority of the Commission less one member thereof
shall be sufficient to bring any delegated action before the Commission
for review under this paragraph.
    (g) Action--when final. Should the right to exercise discretionary
review be declined or should no such review be sought under paragraph
(f) of this section, then the action taken under delegated authority
shall, for all purposes, including appeal or review thereof, be deemed
to be the action of the Commission.
    (h) Conflicts. Where the procedures set forth in this section
conflict with law or any regulation of this chapter, the conflict shall
be resolved in favor of the law or other regulation.



Sec. 501.22  [Reserved]



Sec. 501.23  Delegation to the General Counsel.

    The authority listed in this section is delegated to the General
Counsel: authority to classify carriers within the meaning of section
3(8) of the Shipping Act of 1984 (46 U.S.C. 40102(8)), except where a
carrier submits a rebuttal statement pursuant to Sec. 565.3(b) of this
chapter; and authority to review for legal sufficiency all adverse
personnel actions, procurement activities, Freedom of Information Act,
Privacy Act matters, requests for testimony by employees and production
of official records in litigation and other administrative actions,
pursuant to part 503 subpart E--Requests for Testimony by Employees
Relating to Official Information and Production of Official Records in
Litigation.

[79 FR 24351, Apr. 30, 2014]



Sec. 501.24  Delegation to the Secretary.

    The authorities listed in this section are delegated to the
Secretary and, in the absence or preoccupation of the Secretary, to the
Assistant Secretary.
    (a) Authority to approve applications for permission to practice
before the Commission and to issue admission certificates to approved
applicants.
    (b) Authority to extend the time to file exceptions or replies to
exceptions, and the time for Commission review, relative to initial
decisions of administrative law judges and decisions of Special Dockets
Officers.
    (c) Authority to extend the time to file appeals or replies to
appeals, and the time for Commission review, relative to dismissals of
proceedings, in whole or in part, issued by administrative law judges.
    (d) Authority to establish and extend or reduce the time:
    (1) To file documents either in docketed proceedings or relative to
petitions filed under Part 502 of this chapter, which are pending before
the Commission itself; and
    (2) To issue initial and final decisions under Sec. 502.61 of this
chapter.
    (e) Authority to prescribe a time limit for the submission of
written comments with reference to agreements filed pursuant to section
5 of the Shipping Act of 1984 (46 U.S.C. 40301(d)-(e), 40302-40303,
40305).
    (f) Authority, in appropriate cases, to publish in the Federal
Register notices of intent to prepare an environmental assessment and
notices of finding of no significant impact.
    (g) Authority to prescribe a time limit less than ten days from date
published in the Federal Register for filing comments on notices of
intent to prepare an environmental assessment

[[Page 15]]

and notice of finding of no significant impact and authority to prepare
environmental assessments of no significant impact.
    (h) Authority, in the absence or preoccupation of the Managing
Director, to sign travel orders, nondocketed recommendations to the
Commission, and other routine documents for the Managing Director,
consistent with the programs, policies, and precedents established by
the Commission or the Managing Director.

[70 FR 7659, Feb. 15, 2005, as amended at 74 FR 50714, Oct. 1, 2009; 74
FR 54913, Oct. 26, 2009; 75 FR 29454, May 26, 2010]



Sec. 501.25  Delegation to and redelegation by the Managing Director.

    The authorities listed in this section are delegated to the Managing
Director.
    (a) Authority to adjudicate, with the concurrence of the General
Counsel, and authorize payment of, employee claims for not more than
$1,000.00, arising under the Military and Civilian Personnel Property
Act of 1964, 31 U.S.C. 3721.
    (b) Authority to determine that an exigency of the public business
is of such importance that annual leave may not be used by employees to
avoid forfeiture before annual leave may be restored under 5 U.S.C.
6304.
    (c)(1) Authority to approve, certify, or otherwise authorize those
actions dealing with appropriations of funds made available to the
Commission including allotments, fiscal matters, and contracts relating
to the operation of the Commission within the laws, rules, and
regulations set forth by the Federal Government.
    (2) The authority under paragraph (c)(1) of this section is
redelegated to the Director, Office of Budget and Finance.
    (d)(1) Authority to classify all positions GS-1 through GS-15 and
wage grade positions.
    (2) The authority under paragraph (d)(1) of this section is
redelegated to the Director, Office of Human Resources.

[75 FR 29454, May 26, 2010]



Sec. 501.26  Delegation to and redelegation by the Director, Bureau of
Certification and Licensing.

    Except where specifically redelegated in this section, the
authorities listed in this section are delegated to the Director, Bureau
of Certification and Licensing.
    (a) Authority to:
    (1) Approve or disapprove applications for OTI licenses; issue or
reissue or transfer such licenses; and approve extensions of time in
which to furnish the name(s) and ocean transportation intermediary
experience of the managing partner(s) or officer(s) who will replace the
qualifying partner or officer upon whose qualifications the original
licensing was approved;
    (2) Issue a letter stating that the Commission intends to deny an
OTI application, unless within 20 days applicant requests a hearing to
show that denial of the application is unwarranted; deny applications
where an applicant has received such a letter and has not requested a
hearing within the notice period; and rescind, or grant extensions of,
the time specified in such letters;
    (3) Revoke the license of an OTI upon the request of the licensee;
    (4) Upon receipt of notice of cancellation of any instrument
evidencing financial responsibility, notify the licensee in writing that
its license will automatically be suspended or revoked, effective on the
cancellation date of such instrument, unless new or reinstated evidence
of financial responsibility is submitted and approved prior to such
date, and subsequently order such suspension or revocation for failure
to maintain proof of financial responsibility;
    (5) Revoke the ocean transportation intermediary license of a non-
vessel-operating common carrier not in the United States for failure to
designate and maintain a person in the United States as legal agent for
the receipt of judicial and administrative process;
    (6) Approve changes in an existing licensee's organization; and
    (7) Return any application which on its face fails to meet the
requirements of the Commission's regulations, accompanied by an
explanation of the reasons for rejection.

[[Page 16]]

    (8) The authorities contained in paragraphs (a)(3) and (a)(4) of
this section are redelegated to the Director, Office of Transportation
Intermediaries, in the Bureau of Certification and Licensing.
    (b) Authority to:
    (1) Approve applications for Certificates (Performance) and
Certificates (Casualty) for passenger vessels, evidenced by a surety
bond, guaranty or insurance policy, or combination thereof; and issue,
reissue, or amend such Certificates;
    (2) Issue a written notice to an applicant stating intent to deny an
application for a Certificate (Performance) and/or (Casualty),
indicating the reason therefor, and advising applicant of the time for
requesting a hearing as provided for under Sec. 540.26(c) of this
chapter; deny any application where the applicant has not submitted a
timely request for a hearing; and rescind such notices and grant
extensions of the time within which a request for hearing may be filed;
    (3) Issue a written notice to a certificant stating that the
Commission intends to revoke, suspend, or modify a Certificate
(Performance) and/or (Casualty), indicating the reason therefor, and
advising of the time for requesting a hearing as provided for under
Sec. 540.26(c) of this chapter; revoke, suspend or modify a Certificate
(Performance) and/or (Casualty) where the certificant has not submitted
a timely request for hearing; and rescind such notices and grant
extensions of time within which a request for hearing may be filed;
    (4) Revoke a Certificate (Performance) and/or (Casualty) which has
expired, and/or upon request of, or acquiescence by, the certificant;
and
    (5) Notify a certificant when a Certificate (Performance) and/or
(Casualty) has become null and void in accordance with Sec. Sec.
540.8(a) and 540.26(a) of this chapter.
    (c) Authority to approve amendments to escrow agreements filed under
Sec. 540.5(b) of this Chapter when such amendments are for the purpose
of changing names of principals, changing the vessels covered by the
escrow agreement, changing the escrow agent, and changing the amount of
funds held in escrow, provided that the changes in amount of funds
result in an amount of coverage that complies with the requirements in
the introductory text of Sec. 540.5 of this Chapter.
    (d) Authority to the Director, Bureau of Certification and Licensing
to grant requests to substitute alternative financial responsibility
pursuant to Sec. 540.9(l) of this chapter based upon existing
protection available to purchases of passenger vessel transportation by
credit card by an amount up to fifty (50) percent of the passenger
vessel operator's highest two-year unearned passenger revenues.

[70 FR 7659, Feb. 15, 2005, as amended at 70 FR 44866, Aug. 4, 2005; 78
FR 13277, Feb. 27, 2013]



Sec. 501.27  Delegation to and redelegation by the Director, Bureau of
Trade Analysis.

    Except where specifically redelegated in this section, the
authorities listed in this section are delegated to the Director, Bureau
of Trade Analysis.
    (a) Authority to determine that no action should be taken to prevent
an agreement or modification to an agreement from becoming effective
under section 6(c)(1), and to shorten the review period under section
6(e), of the Shipping Act of 1984 (46 U.S.C. 40304 (c)(1) and (e)(1)),
when the agreement or modification involves solely a restatement,
clarification or change in an agreement which adds no new substantive
authority beyond that already contained in an effective agreement. This
category of agreement or modification includes, for example, the
following: a restatement filed to conform an agreement to the format and
organization requirements of Part 535 of this chapter; a clarification
to reflect a change in the name of a country or port or a change in the
name of a party to the agreement; a correction of typographical or
grammatical errors in the text of an agreement; a change in the title of
persons or committees designated in an agreement; or a transfer of
functions from one person or committee to another.
    (b) Authority to grant or deny applications filed under Sec.
535.406 of this chapter for waiver of the form, organization and content
requirements of

[[Page 17]]

Sec. Sec. 535.401, 535.402, 535.403, 535.404 and 535.405 of this
chapter.
    (c) Authority to grant or deny applications filed under Sec.
535.504 of this chapter for waiver of the Information Form requirements
in subpart E of part 535.
    (d) Authority to grant or deny applications filed under Sec.
535.705 of this chapter for waiver of the reporting requirements in
subpart G of part 535 of this chapter.
    (e) Authority to determine that no action should be taken to prevent
an agreement or modification of an agreement from becoming effective
under section 6(c)(1) of the Shipping Act of 1984 (46 U.S.C. 40304
(c)(1) for all unopposed agreements and modifications to agreements
which will not result in a significant reduction in competition.
Agreements which are deemed to have the potential to result in a
significant reduction in competition and which, therefore, are not
covered by this delegation include but are not limited to:
    (1) New agreements authorizing the parties to collectively discuss
or fix rates (including terminal rates).
    (2) New agreements authorizing the parties to pool cargoes or
revenues.
    (3) New agreements authorizing the parties to establish a joint
service or consortium.
    (4) New equal access agreements.
    (f) Authority to grant or deny shortened review pursuant to Sec.
535.605 of this chapter for agreements for which authority is delegated
in paragraph (e) of this section.
    (g) Subject to review by the General Counsel, authority to deny, but
not approve, requests filed pursuant to Sec. 535.605 of this chapter
for a shortened review period for agreements for which authority is not
delegated under paragraph (e) of this section.
    (h) Authority to issue notices of termination of agreements which
are otherwise effective under the Shipping Act of 1984, after
publication of notice of intent to terminate in the Federal Register,
when such terminations are:
    (1) Requested by the parties to the agreement;
    (2) Deemed to have occurred when it is determined that the parties
are no longer engaged in activity under the agreement and official
inquiries and correspondence cannot be delivered to the parties; or
    (3) Deemed to have occurred by notification of the withdrawal of the
next to last party to an agreement without notification of the addition
of another party prior to the effective date of the next to last party's
withdrawal.
    (i) Authority to determine whether agreements for the use or
operation of terminal property or facilities, or the furnishing of
terminal services, are within the purview of section 5 of the Shipping
Act of 1984 (46 U.S.C. 40301 (d)-(e), 40302-40303, 40305).
    (j) Authority to request controlled carriers to file justifications
for existing or proposed rates, charges, classifications, rules or
regulations, and to review responses to such requests for the purpose of
recommending to the Commission that a rate, charge, classification, rule
or regulation be found unlawful and, therefore, requires Commission
action under section 9(d) of the Shipping Act of 1984 (46 U.S.C.
40704(b)-(e)).
    (k) Authority to recommend to the Commission the initiation of
formal proceedings or other actions with respect to suspected violations
of the shipping statutes and rules and regulations of the Commission.
    (l)(1) Authority to approve for good cause or disapprove special
permission applications submitted by common carriers, or conferences of
such carriers, subject to the provisions of section 8 of the Shipping
Act of 1984 (46 U.S.C. 40501-40503), for relief from statutory and/or
Commission tariff requirements.
    (2) The authority under this paragraph is redelegated to the
Director, Office of Service Contracts and Tariffs, in the Bureau of
Trade Analysis.
    (m)(1) Authority to approve or disapprove special permission
applications submitted by a controlled carrier subject to the provisions
of section 9 of the Shipping Act of 1984 (46 U.S.C. 40701-40706) for
relief from statutory and/or Commission tariff requirements.
    (2) The authority under this paragraph is redelegated to the
Director, Office of Service Contracts and Tariffs, in the Bureau of
Trade Analysis.
    (n) Authority contained in Part 530 of this chapter to approve, but
not deny,

[[Page 18]]

requests for permission to correct clerical or administrative errors in
the essential terms of filed service contracts.
    (o) Authority to require Monitoring Reports from, or prescribe
alternative periodic reporting requirements for, parties to agreements
under Sec. Sec. 535.702(c) and (d) of this chapter.
    (p) Authority to require parties to agreements subject to the
Monitoring Report requirements in Sec. 535.702(a)(2) of this chapter to
report their agreement commodity data on a sub-trade basis pursuant to
Sec. 535.703(d) of this chapter.

[70 FR 7659, Feb. 15, 2005; 72 FR 15613, Apr. 2, 2007, as amended at 74
FR 50714, Oct. 1, 2009]



Sec. 501.28  Delegation to the Director, Bureau of Enforcement.

    The authorities listed in this section are delegated to the
Director, Bureau of Enforcement.
    (a) As set forth in Sec. 502.604(g) of this chapter, the Director,
Bureau of Enforcement, has the delegated authority to issue Notice and
Demand Letters and to compromise civil penalty claims, subject to the
prior approval of the Managing Director. This delegation shall include
the authority to compromise issues relating to the retention,
suspension, or revocation of ocean transportation intermediary licenses.
    (b) [Reserved]

[70 FR 7659, Feb. 15, 2005, as amended at 75 FR 29454, May 26, 2010]



                Subpart D_Public Requests for Information



Sec. 501.41  Public requests for information and decisions.

    (a) General. Pursuant to 5 U.S.C. 552(a)(1)(A), there is hereby
stated and published for the guidance of the public the established
places at which, the officers from whom, and the methods whereby, the
public may secure information, make submittals or requests, or obtain
decisions, principally by contacting by telephone, in writing, or in
person, either the Secretary of the Commission at the Federal Maritime
Commission, 800 North Capitol Street, NW., Washington, DC 20573, or the
Area Representatives listed in paragraph (c) of this section. See also
Part 503 of this chapter.
    (b) The Secretary will provide information and decisions, and will
accept and respond to requests, relating to the program activities of
the Office of the Secretary and of the Commission generally. Unless
otherwise provided in this chapter, any document, report, or other
submission required to be filed with the Commission by statute or the
Commission's rules and regulations relating to the functions of the
Commission or of the Office of the Secretary shall be filed with or
submitted to the Secretary.
    (c) The Directors of the following bureaus and offices will provide
information and decisions, and will accept and respond to requests,
relating to the specific functions or program activities of their
respective bureaus and offices as set forth in this chapter; but only if
the dissemination of such information or decisions is not prohibited by
statute or the Commission's Rules of Practice and Procedure:
    (1) Office of the Secretary;
    (2) Office of the General Counsel;
    (3) Office of Administrative Law Judges;
    (4) Office of Equal Employment Opportunity;
    (5) Office of the Inspector General;
    (6) Office of Consumer Affairs and Dispute Resolution Services;
    (7) Office of the Managing Director;
    (i) Office of Budget and Finance;
    (ii) Office of Human Resources;
    (iii) Office of Information Technology;
    (iv) Office of Management Services;
    (v) Bureau of Certification and Licensing;
    (vi) Bureau of Trade Analysis;
    (vii) Bureau of Enforcement; and
    (viii) Area Representatives will provide information and decisions
to the public within their geographic areas, or will expedite the
obtaining of information and decisions from headquarters. The addresses
of these Area Representatives are as follows. Further information on
Area Representatives, including Internet e-mail addresses, can be
obtained on the Commission's Web site at http://www.fmc.gov.

Houston Area Representative, 650 Sam Houston Parkway, 230, Houston, TX
77060-5908.


[[Page 19]]


Los Angeles Area Representative, P.O. Box 230, 839 South Beacon Street,
Room 320, San Pedro, CA 90733-0230.
New Orleans Area Representative, P.O. Box 700, Saint Rose, LA 70087-
0700.

New York Area Representative, Building No. 75, Room 205B, JFK
International Airport, Jamaica, NY 11430-1827.

Seattle Area Representative, The Fabulich Center, Suite 508, 3600 Port
of Tacoma Road, Tacoma, WA 98424-1044.

South Florida Area Representative, P.O. Box 813609, Hollywood, FL 33081-
3609.

    (d) Submissions to bureaus and offices. Any document, report or
other submission required to be filed with the Commission by statute or
the Commission's rules and regulations relating to the specific
functions of the bureaus and offices shall be filed with or submitted to
the Director of such Bureau or Office.

[70 FR 7659, Feb. 15, 2005, as amended at 75 FR 29454, May 26, 2010]



 Sec. Appendix A to Part 501--Federal Maritime Commission Organization
                                  Chart
[GRAPHIC] [TIFF OMITTED] TR03JN10.006


[75 FR 31321, June 3, 2010]



PART 502_RULES OF PRACTICE AND PROCEDURE--Table of Contents



                      Subpart A_General Information

Sec.
502.1 Scope of rules in this part.
502.2 Filing of documents.
502.3 Compliance with rules or orders of Commission.
502.4 Authentication of rules or orders of Commission.
502.5 Documents containing confidential materials.
502.6 Verification of documents.
502.7 Documents in foreign languages.
502.8 Denial of applications and notice thereof.
502.9 Suspension, amendment, etc., of rules in this part.
502.10 Waiver of rules in this part.
502.11 Ex parte communications.
502.12 Applicability of Federal Rules of Civil Procedure.
502.13 Privacy protection for filings made with the Commission.

         Subpart B_Appearance and Practice Before the Commission

502.21 Appearance.
502.22 Authority for representation.

[[Page 20]]

502.23 Notice of appearance; substitution and withdrawal of
          representative.
502.24 Practice before the Commission defined.
502.25 Presiding officer.
502.26 Attorneys at law.
502.27 Persons not attorneys at law.
502.29-502.30 [Reserved]
502.31 Statement of interest.
502.32 Former employees.

Exhibit No. 1 to Subpart B [Sec. Sec. 502.23, 502.26, 502.27] of Part
          502--Notice of Appearance

                            Subpart C_Parties

502.41 Parties; how designated.
502.42 Bureau of Enforcement.
502.43 Substitution of parties.

                          Subpart D_Rulemaking

502.51 Initiation of procedure to issue, amend, or repeal a rule.
502.52 Notice of proposed rulemaking.
502.53 Participation in rulemaking.
502.54 Contents of rules.
502.55 Effective date of rules.
502.56 Negotiated rulemaking.
502.57 Service by parties of pleadings and other documents.

           Subpart E_Proceedings; Pleadings; Motions; Replies

502.61 Proceedings.
502.62 Private party complaints for formal adjudication.
502.63 Commission enforcement action.
502.64 Alternative dispute resolution.
502.65 Decision on default.
502.66 Amendments or supplements to pleadings.
502.67 Motion for more definite statement.
502.68 Motion for leave to intervene.
502.69 Motions.
502.70 Procedure for dispositive motions.
502.71 Procedure for non-dispositive motions.
502.72 Dismissals.
502.73 Order to show cause.
502.74 Exemption procedures--general.
502.75 Declaratory orders and fee.
502.76 Petitions--general and fee.
502.77 Proceedings involving assessment agreements.
502.78 Brief of an amicus curiae.
502.79 Consolidation of proceedings.

               Subpart F_Settlement; Prehearing Procedure

502.91 Opportunity for informal settlement.
502.92 [Reserved]
502.94 Prehearing conference.
502.95 Prehearing statements.

Exhibit No. 1 to Subpart F [Sec. 502.92] of Part 502 [Reserved]

                             Subpart G_Time

502.101 Computation.
502.102 Enlargement of time to file documents.
502.103 Reduction of time to file documents.
502.104 Postponement of hearing.
502.105 Waiver of rules governing enlargements of time and postponements
          of hearings.

           Subpart H_Form, Execution, and Service of Documents

502.111-502.112 [Reserved]
502.113 Service by the Commission.
502.114 Service by parties of pleadings and other documents.
502.115 Service on attorney or other representative.
502.116 Date of service.
502.117 Certificate of service.
502.118 Copies of documents for use of the Commission.

                           Subpart I_Subpoenas

502.131 Requests; issuance.
502.132 Motions to quash or modify.
502.133 Attendance and mileage fees.
502.134 Service of subpoenas.
502.135 Subpoena of Commission staff personnel, documents or things.
502.136 Enforcement.

            Subpart J_Hearings; Presiding Officers; Evidence

502.141 Hearings not required by statute.
502.142 Hearings required by statute.
502.143 Notice of nature of hearing, jurisdiction and issues.
502.144 Notice of time and place of hearing; postponement of hearing.
502.145-502.149 [Reserved]
502.150 Further evidence required by presiding officer during hearing.
502.151 Exceptions to rulings of presiding officer unnecessary.
502.152 Offer of proof.
502.153 Appeal from ruling of presiding officer other than orders of
          dismissal in whole or in part.
502.154 Rights of parties as to presentation of evidence.
502.155 Burden of proof.
502.156 Evidence admissible.
502.157 Written evidence.
502.158 Documents containing matter not material.
502.159 [Reserved]
502.160 Records in other proceedings.
502.161 Commission's files.
502.162 Stipulations.
502.163 Receipt of documents after hearing.

[[Page 21]]

502.164 Oral argument at hearings.
502.165 Official transcript.
502.166 Corrections of transcript.
502.167 Objection to public disclosure of information.
502.168 Copies of data or evidence.
502.169 Record of decision.

                      Subpart K_Shortened Procedure

502.181 Selection of cases for shortened procedure; consent required.
502.182 Complaint and memorandum of facts and arguments and filing fee.
502.183 Respondent's answering memorandum.
502.184 Complainant's memorandum in reply.
502.185 Service of memoranda upon and by interveners.
502.186 Contents of memoranda.
502.187 Procedure after filing of memoranda.

                   Subpart L_Disclosures and Discovery

502.201 Duty to disclose; general provisions governing discovery.
502.202 Persons before whom depositions may be taken.
502.203 Depositions by oral examination.
502.204 Depositions by written questions.
502.205 Interrogatories to parties.
502.206 Producing documents, electronically stored information, and
          tangible things, or entering onto land, for inspection and
          other purposes.
502.207 Requests for admission.
502.208 Use of discovery procedures directed to Commission staff
          personnel.
502.209 Use of depositions at hearings.
502.210 Motions to compel initial disclosures or compliance with
          discovery requests; failure to comply with order to make
          disclosure or answer or produce documents; sanctions;
          enforcement.

     Subpart M_Briefs; Requests for Findings; Decisions; Exceptions

502.221 Briefs; requests for findings.
502.222 Requests for enlargement of time for filing briefs.
502.223 Decisions--Administrative law judges.
502.224 Separation of functions.
502.225 Decisions--Commission.
502.226 Decision based on official notice; public documents.
502.227 Exceptions to decisions or orders of dismissal of administrative
          law judges; replies thereto; and review of decisions or orders
          of dismissal by Commission.
502.228 Request for enlargement of time for filing exceptions and
          replies thereto.
502.229 Certification of record by presiding or other officer.
502.230 Reopening by presiding officer or Commission.

         Subpart N_Oral Argument; Submission for Final Decision

502.241 Oral argument.
502.242 Submission to Commission for final decision.
502.243 Participation of absent Commissioner.

                          Subpart O_Reparation

502.251 Proof on award of reparation.
502.252 Reparation statements.
502.253 Interest in reparation proceedings.
502.254 Attorney's fees in reparation proceedings.

Exhibit No. 1 to Subpart O [Sec. 502.252] of Part 502--Reparation
          Statement To Be Filed Pursuant to Rule 252

                Subpart P_Reconsideration of Proceedings

502.261 Petitions for reconsideration and stay.
502.262 Reply to petition for reconsideration or stay.

              Subpart Q_Refund or Waiver of Freight Charges

502.271 Special docket application for permission to refund or waive
          freight charges.

Exhibit No. 1 to Subpart Q [Sec. 502.271(d)] of Part 502--Application
          for Refund or Waiver of Freight Charges Due to Tariff on
          Quoting Error

                Subpart R_Nonadjudicatory Investigations

502.281 Investigational policy.
502.282 Initiation of investigations.
502.283 Order of investigation.
502.284 By whom conducted.
502.285 Investigational hearings.
502.286 Compulsory process.
502.287 Depositions.
502.288 Reports.
502.289 Noncompliance with investigational process.
502.290 Rights of witness.
502.291 Nonpublic proceedings.

      Subpart S_Informal Procedure for Adjudication of Small Claims

502.301 Statement of policy.
502.302 Limitations of actions.
502.303 [Reserved]
502.304 Procedure and filing fee.
502.305 Applicability of other rules of this part.

Exhibit No. 1 to Subpart S [Sec. 502.304(a)] of Part 502--Small Claim
          Form for Informal Adjudication and Information Checklist

[[Page 22]]

Exhibit No. 2 to Subpart S [Sec. 502.304(e)] of Part 502--Respondent's
          Consent Form for Informal Adjudication

       Subpart T_Formal Procedure for Adjudication of Small Claims

502.311 Applicability.
502.312 Answer to complaint.
502.313 Reply of complainant.
502.314 Additional information.
502.315 Request for oral hearing.
502.316 Intervention.
502.317 Oral argument.
502.318 Decision.
502.319 Date of service and computation of time.
502.320 Service.
502.321 Applicability of other rules of this part.

                Subpart U_Alternative Dispute Resolution

502.401 Policy.
502.402 Definitions.
502.403 General authority.
502.404 Neutrals.
502.405 Confidentiality.
502.406 Arbitration.
502.407 Authority of the arbitrator.
502.408 Conduct of arbitration proceedings.
502.409 Arbitration awards.
502.410 Representation of parties.
502.411 Mediation and other alternative means of dispute resolution.

     Subpart V_Implementation of the Equal Access to Justice Act in
                         Commission Proceedings

502.501 General provisions.
502.502 Information required from applicants.
502.503 Procedures for considering petitions.

Subpart W_Compromise, Assessment, Mitigation, Settlement, and Collection
                           of Civil Penalties

502.601 Purpose and scope.
502.602 Definitions.
502.603 Assessment of civil penalties: Procedure; criteria for
          determining amount; limitations; relation to compromise.
502.604 Compromise of penalties: Relation to assessment proceedings.
502.605 Payment of penalty: Method; default.

Appendix A to Subpart W of Part 502--Example of Compromise Agreement To
          Be Used Under 46 CFR 502.604

                    Subpart X_Paperwork Reduction Act

502.991 OMB control numbers assigned pursuant to the Paperwork Reduction
          Act.

    Authority: 5 U.S.C. 504, 551, 552, 553, 556(c), 559, 561-569, 571-
596; 5 U.S.C. 571-584; 18 U.S.C. 207; 28 U.S.C. 2112(a); 31 U.S.C. 9701;
46 U.S.C. 305, 40103-40104, 40304, 40306, 40501-40503, 40701-40706,
41101-41109, 41301-41309, 44101-44106; E.O. 11222 of May 8, 1965.

    Source: 49 FR 44369, Nov. 6, 1984, unless otherwise noted.



                      Subpart A_General Information



Sec. 502.1  Scope of rules in this part.

    The rules in this part govern procedure before the Federal Maritime
Commission, hereinafter referred to as the ``Commission,'' under the
Merchant Marine Act, 1920, Merchant Marine Act, 1936, Shipping Act of
1984, as amended by the Ocean Shipping Reform Act of 1998,
Administrative Procedure Act, and related acts, except that subpart R of
this part does not apply to proceedings subject to sections 7 and 8 of
the Administrative Procedure Act, which are to be governed only by
subparts A to Q inclusive, of this part. They shall be construed to
secure the just, speedy, and inexpensive determination of every
proceeding. To this end, all persons involved in proceedings conducted
under the rules of this part shall be required to consider at an early
stage of the proceeding whether resort to alternative dispute resolution
techniques would be appropriate or useful. [Rule 1.]

[49 FR 44369, Nov. 6, 1984, as amended at 58 FR 38649, July 19, 1993; 64
FR 7807, Feb. 17, 1999]



Sec. 502.2  Filing of documents.

    (a) Requirement for filing. Documents relating to any matter pending
before the Commissioners for decision or to any matter pending before
the Commission which is likely to come before the Commissioners for
decision, whether or not relating to proceedings governed by this part,
must be filed with the Secretary, Federal Maritime Commission. Such
documents should not be filed with or separately submitted to the
offices of individual Commissioners. Distribution to Commissioners and
other agency personnel is handled by the Office of the Secretary to
ensure that persons in decision-making and advisory positions receive
identical copies of submissions in a uniform and

[[Page 23]]

impersonal manner and to avoid the possibility of ex parte
communications within the meaning of Sec. 502.11. These considerations
apply to informal and oral communications as well, such as requests for
expedited consideration.
    (b) Date and time of filing. (1) Documents may be hand-delivered at
the Commission during normal business hours from 8:30 a.m. to 5 p.m.,
Monday through Friday.
    (2) Except with respect to initial filing of complaints pursuant to
Sec. Sec. 502.62 and 502.63, and claims pursuant to Sec. Sec. 502.301
and 502.302, the date of filing shall be either the date on which the
pleading, document, or paper is physically delivered to the Commission
by a party, the date on which a party certifies it to have been
deposited in the mail or delivered to a courier, or the date of e-mail
transmission.
    (c) Place of filing. Except for exhibits filed pursuant to Sec.
502.118(b)(4) and petitions for review of final agency orders served on
the Commission pursuant to 28 U.S.C. 2112(a), all documents required to
be filed in, and correspondence relating to proceedings governed by this
part must be addressed and delivered to ``Secretary, Federal Maritime
Commission, 800 N. Capitol Street, NW., Washington, DC 20573-0001'' or
to [email protected].
    (d) Service of petition for review of Commission order. Petitions
for review of final agency orders served on the Commission pursuant to
28 U.S.C. 2112(a) must be addressed and delivered to ``General Counsel,
Office of the General Counsel, Federal Maritime Commission, 800 N.
Capitol Street, NW., Washington, DC 20573-0001.''
    (e) Number of copies. Parties filing documents in proceedings before
the Commission or an administrative law judge must file an original,
signed document and five (5) copies, and, if possible, a PDF of the
document. The PDF document should be sent by e-mail to [email protected]
or submitted on an electronic storage device (such as compact disc or
USB flash drive).
    (f) E-mail transmission of filings. (1) Initial filing of complaints
and claims pursuant to Sec. Sec. 502.62-502.63 and 502.301-502.302 must
be accomplished in the traditional manner on paper, rather than by e-
mail.
    (2) Pursuant to Sec. 502.5 of this subpart, confidential filings
must be accomplished in the traditional manner on paper, rather than by
e-mail.
    (3) If a filing is submitted electronically as a PDF attached to an
e-mail, the original, signed document, and five (5) copies must be
received by the Secretary within seven working days. The e-mail
transmitting the PDF copy of a document must include a certification by
the filing party that the electronic copy is a true and correct copy of
the paper original, and that the paper signed original and five (5)
copies are being filed with the Secretary of the Commission. The e-mail
Subject Line must include the docket number of the proceeding and be
sent to [email protected].
    (g) Filing after announcement of Commission meeting prohibited. No
filings relating to matters scheduled for a Commission meeting will be
accepted by the Secretary if submitted subsequent to public announcement
of the particular meeting, except that the Commission, on its own
initiative, or pursuant to a written request, may in its discretion,
permit a departure from this limitation for exceptional circumstances.
(See Sec. 503.82(e) of this chapter.)
    (h) Return of rejected filings. Any pleading, document, writing, or
other paper submitted for filing which is rejected because it does not
conform to the rules in this part will be returned to the sender.
    (i) Continuing obligation to provide contact information. All
parties and representatives are under a continuing obligation to provide
the Commission and all other parties in a proceeding with accurate and
current contact information including a street address, telephone
number, and e-mail address.
    (j) Form of documents. All papers to be filed under the rules in
this part must be clear and legible, dated, show the docket number and
title of the proceeding, document title, and include the title, if any,
and address of the authorized signer or representative. An original
signed in ink must be provided. Text shall appear on only one side of
the paper and must be double spaced except that quotations of fifty or
more words should be single-spaced

[[Page 24]]

and indented on the left and right without quotation marks. The paper
must be strong and durable, of letter size (8\1/2\ x 11 in. or 215.9 x
279.4 mm) or A4 size (8.27 x 11.69 in. or 210 x 297 mm), with a margin
of at least one inch on all four sides. Documents must be printed in
clear type, and the type size, including footnotes and endnotes, must
not be smaller than 12-point.
    (k) Discovery materials excluded from filing requirement. (1) The
following discovery requests and responses must not be filed with the
Secretary until they are used in the proceeding, or the Commission or
presiding officer orders filing:
    (i) Notice and transcript of depositions;
    (ii) Interrogatories;
    (iii) Requests for documents or tangible things or to permit entry
onto designated land or other property;
    (iv) Requests for admission; and
    (v) Expert witness reports.
    (2) The party that served the notice of deposition or discovery
papers must preserve and ensure the integrity of original transcripts
and discovery papers for use by the Commission or the presiding officer.
A party that wants to use any part or all of discovery requests and
responses in the proceeding must include the part or all of the
documents in an appendix to be filed with the motion or other paper that
refers to those documents. A party filing an appendix exceeding 100
pages should file an original and two (2) copies on paper and, if
possible, also file such appendix by e-mail or on an electronic storage
device. [Rule 2.]

[76 FR 10259, Feb. 24, 2011]



Sec. 502.3  Compliance with rules or orders of Commission.

    Persons named in a rule or order shall notify the Commission during
business hours on or before the day on which such rule or order becomes
effective whether they have complied therewith, and if so, the manner in
which compliance has been made. [Rule 3.]

[76 FR 10260, Feb. 24, 2011]



Sec. 502.4  Authentication of rules or orders of Commission.

    All rules or orders issued by the Commission in any proceeding
covered by this part shall, unless otherwise specifically provided, be
signed by the Secretary of the Commission in the name of the Commission.
[Rule 4.]

[76 FR 10260, Feb. 24, 2011]



Sec. 502.5  Documents containing confidential materials.

    Except as otherwise provided in the rules of this part, all filings
that contain information previously designated as confidential pursuant
to Sec. Sec. 502.13, 502.167, 502.201(i)(1)(vii), or any other rules of
this part or for which a request for protective order pursuant to Sec.
502.201(i) is pending, are subject to the following requirements:
    (a) Filings shall be accompanied by a transmittal letter that
identifies the filing as ``confidential'' and describes the nature and
extent of the authority for requesting confidential treatment. The
confidential copies shall consist of the complete filing and shall
include a cover page marked ``Confidential-Restricted,'' with the
confidential materials clearly marked on each page. Confidential filings
should not be made by e-mail.
    (b) Whenever a confidential filing is submitted, there must also be
submitted an original and two copies of a public version of the filing.
Such public version shall exclude confidential materials, and shall
indicate on the cover page and on each affected page ``confidential
materials excluded.'' Public versions of confidential filings may be
submitted by e-mail.
    (c) Confidential treatment afforded by this section is subject to
the proviso that any information designated as confidential may be used
by the administrative law judge or the Commission if deemed necessary to
a correct decision in the proceeding. [Rule 5.]

[76 FR 10260, Feb. 24, 2011, as amended at 77 FR 61524, Oct. 10, 2012]



Sec. 502.6  Verification of documents.

    (a) If a party is represented by an attorney or other person
qualified to practice before the Commission under the rules in this
part, each pleading,

[[Page 25]]

document or other paper of such party filed with the Commission shall be
signed by at least one person of record admitted to practice before the
Commission in his or her individual name, whose address shall be stated.
Except when otherwise specifically provided by rule or statute, such
pleading, document or paper need not be verified or accompanied by
affidavit. The signature of a person admitted or qualified to practice
before the Commission constitutes a certificate by the signer that the
signer has read the pleading, document or paper; that the signer is
authorized to file it; that to the best of the signer's knowledge,
information, and belief formed after reasonable inquiry, the filing is
well grounded in fact and is warranted by existing law or a good faith
argument for the extension, modification, or reversal of existing law;
and that it is not interposed for any improper purpose, such as to
harass or to cause unnecessary delay or needless increase in the cost of
litigation. For a willful violation of this section, a person admitted
or qualified to practice before the Commission may be subjected to
appropriate disciplinary action.
    (b) If a party is not represented by a person admitted or qualified
to practice before the Commission, each pleading, document or other
paper of such party filed with the Commission shall be signed and
verified under oath by the party or by a duly authorized officer or
agent of the party, whose address and title shall be stated.
    (c) Wherever, under any rules of this part, any matter is required
or permitted to be supported, evidenced, established, or proved by the
sworn declaration, verification, certificate, statement, oath, or
affidavit, in writing of the person making the same (other than a
deposition under Sec. 502.203 or Sec. 502.204), such matter may, with
like force and effect, be supported, evidenced, established, or proved
by the unsworn declaration, certificate, verification, or statement, in
writing of such person which is subscribed by such person, as true under
penalty of perjury, in substantially the following form:
    (1) If executed without the United States: ``I declare (or certify,
verify, or state) under penalty of perjury under the laws of the United
States of America that the foregoing is true and correct.''
    (2) If executed within the United States, its territories,
possessions, or commonwealths: ``I declare (or certify, verify, or
state) under penalty of perjury that the foregoing is true and
correct.'' [Rule 6.]

[76 FR 10261, Feb. 24, 2011]



Sec. 502.7  Documents in foreign languages.

    Every document, exhibit, or other paper written in a language other
than English and filed with the Commission or offered in evidence in any
proceeding before the Commission under this part or in response to any
rule or order of the Commission pursuant to this part, shall be filed or
offered in the language in which it is written and shall be accompanied
by an English translation thereof duly verified under oath to be an
accurate translation. [Rule 7.]



Sec. 502.8  Denial of applications and notice thereof.

    Except in affirming a prior denial or where the denial is self-
explanatory, prompt written notice will be given of the denial in whole
or in part of any written application, petition, or other request made
in connection with any proceeding under this part, such notice to be
accompanied by a simple statement of procedural or other grounds for the
denial, and of any other or further administrative remedies or recourse
applicant may have where the denial is based on procedural grounds.
[Rule 8.]



Sec. 502.9  Suspension, amendment, etc., of rules in this part.

    The rules in this part may, from time to time, be suspended,
amended, or revoked, in whole or in part. Notice of any such action will
be published in the Federal Register. [Rule 9.]



Sec. 502.10  Waiver of rules in this part.

    Except to the extent that such waiver would be inconsistent with any
statute, any of the rules in this part, except Sec. Sec. 502.11 and
502.153, may be waived

[[Page 26]]

by the Commission or the presiding officer in any particular case to
prevent undue hardship, manifest injustice, or if the expeditious
conduct of business so requires. [Rule 10.]



Sec. 502.11  Ex parte communications.

    (a) No person who is a party to or an agent of a party to any
proceeding as defined in Sec. 502.61 or who directly participates in
any such proceeding and no interested person outside the Commission
shall make or knowingly cause to be made to any Commission member,
administrative law judge, or Commission employee who is or may
reasonably be expected to be involved in the decisional process of any
such proceeding, an ex parte communication relevant to the merits of the
proceeding;
    (b) No Commission member, administrative law judge, or Commission
employee who is or may reasonably be expected to be involved in the
decisional process of any agency proceeding, shall make or knowingly
cause to be made to any interested persons outside the Commission or to
any party to the proceeding or its agent or to any direct participant in
a proceeding, an ex parte communication relevant to the merits of the
proceeding. This prohibition shall not be construed to prevent any
action authorized by paragraphs (e), (f) and (g) of this section;
    (c) ``Ex parte communication'' means an oral or written
communication not on the public record with respect to which reasonable
prior notice to all parties is not given, but it shall not include
requests for status reports or communications regarding purely
procedural matters or matters which the Commission or member thereof,
administrative law judge, or Commission employee is authorized by law or
these rules to dispose of on an ex parte basis;
    (d) Any Commission member, administrative law judge, or Commission
employee who is or may reasonably be expected to be involved in the
decisional process of any proceeding who receives, or who makes or
knowingly causes to be made, an ex parte communication shall promptly
transmit to the Secretary of the Commission:
    (1) All such written communications;
    (2) Memoranda stating the substance of all such oral communications;
and
    (3) All written responses and memoranda stating the substance of all
oral responses to the materials described in paragraphs (d)(1) and
(d)(2) of this section;
    (e) The Secretary shall place the materials described in paragraph
(d) of this section in the correspondence part of the public docket of
the proceeding and may take such other action as may be appropriate
under the circumstances;
    (f) Upon receipt of an ex parte communication knowingly made or
knowingly caused to be made by a party to a proceeding, the Commission
or the presiding officer may, to the extent consistent with the
interests of justice and the policy of the statutes administered by the
Commission, require the party to show cause why his or her claim or
interest in the proceeding should not be dismissed, denied, disregarded,
or otherwise adversely affected on account of the making of such
communication;
    (g) An ex parte communication shall not constitute a part of the
record for decision. The Commission or the presiding officer may, to the
extent consistent with the interests of justice and the policy of the
statutes administered by the Commission, consider a violation of
paragraph (b) of this section sufficient grounds for a decision adverse
to a party who has knowingly caused such violation to occur and may take
such other action as may be appropriate under the circumstances. [Rule
11.]

[49 FR 44369, Nov. 6, 1984; 49 FR 47394, Dec. 4, 1984, as amended at 64
FR 7807, Feb. 17, 1999; 64 FR 23551, May 3, 1999; 64 FR 33762, June 24,
1999]



Sec. 502.12  Applicability of Federal Rules of Civil Procedure.

    In proceedings under this part, for situations which are not covered
by a specific Commission rule, the Federal Rules of Civil Procedure will
be followed to the extent that they are consistent with sound
administrative practice. [Rule 12.]

[58 FR 27210, May 7, 1993, as amended at 64 FR 7807, Feb. 17, 1999]

[[Page 27]]



Sec. 502.13  Privacy protection for filings made with the Commission.

    (a) Redacted filings. Unless the Commission or presiding officer
orders otherwise, in an electronic or paper filing that contains an
individual's social-security number, taxpayer-identification number, or
birth date, the name of an individual known to be a minor, or a
financial-account number, a party or nonparty making the filing may
include only:
    (1) The last four digits of the social-security number and taxpayer-
identification number;
    (2) The year of the individual's birth;
    (3) The minor's initials; and
    (4) The last four digits of the financial-account number.
    (b) Exemptions from the redaction requirement. The redaction
requirement does not apply to the following:
    (1) The record of an administrative or agency proceeding;
    (2) The record of a state-court proceeding;
    (3) The record of a court or tribunal, if that record was not
subject to the redaction requirement when originally filed; and
    (4) A filing covered by paragraph (c) of this section.
    (c) Filings made under seal. The Commission or presiding officer may
order that a filing be made under seal without redaction. The Commission
or presiding officer may later unseal the filing or order the person who
made the filing to file a redacted version for the public record.
    (d) Protective orders. For good cause, the Commission or presiding
officer may by order in a case:
    (1) Require redaction of additional information; or
    (2) Limit or prohibit a nonparty's remote electronic access to a
document filed with the Commission.
    (e) Option for additional unredacted filing under seal. A person
making a redacted filing may also file an unredacted copy under seal.
The Commission must retain the unredacted copy as part of the record.
    (f) Option for filing a reference list. A filing that contains
redacted information may be filed together with a reference list that
identifies each item of redacted information and specifies an
appropriate identifier that uniquely corresponds to each item listed.
The list must be filed under seal and may be amended as of right. Any
reference in the case to a listed identifier will be construed to refer
to the corresponding item of information.
    (g) Waiver of protection of identifiers. A person waives the
protection of this rule as to the person's own information by filing it
without redaction and not under seal. [Rule 13.]

[76 FR 10261, Feb. 24, 2011]



         Subpart B_Appearance and Practice Before the Commission



Sec. 502.21  Appearance.

    (a) Parties. A party may appear in person or by an officer, partner,
or regular employee of the party, or by or with counsel or other duly
qualified representative, in any proceeding under the rules in this
part. Any party or his or her representative may testify, produce and
examine witnesses, and be heard upon brief and at oral argument if oral
argument is granted.
    (b) Non-parties. One who appears in person before the Commission or
a representative thereof, either by compulsion from, or request or
permission of the Commission, shall be accorded the right to be
accompanied, represented, and advised by counsel.
    (c) Special appearance. An appearance may be either general, that
is, without reservation, or it may be special, that is, confined to a
particular issue or question. A person who desires to appear specially
must expressly so state when entering the appearance, and, at that time,
shall also state the questions or issues to which the appearance is
confined; otherwise the appearance will be considered general. [Rule
21.]

[49 FR 44369, Nov. 6, 1984, as amended at 64 FR 7807, Feb. 17, 1999; 78
FR 45069, July 26, 2013]



Sec. 502.22  Authority for representation.

    Any individual acting in a representative capacity in any proceeding
before the Commission may be required to show his or her authority to
act in such capacity. [Rule 22.]

[[Page 28]]



Sec. 502.23  Notice of appearance; substitution and withdrawal of
representative.

    (a) Upon filing of a complaint instituting proceedings or filing of
an answer to an order or complaint, the party filing shall notify the
Commission of the name(s), address(es), telephone number(s), and email
address(es) of the person or persons who will represent the party in the
pending proceeding. Each person who appears in a representative capacity
in a proceeding must deliver a written notice of appearance to the
Secretary stating for whom the appearance is made. Such notice must
indicate whether the representative wishes to be notified of notices,
orders and decisions by either email or facsimile transmission. All
appearances shall be noted in the record. Motions for leave to intervene
must indicate the name(s), address(es), telephone number(s), and email
address(es) of the person or persons who will represent the intervenor
in the pending proceeding if the motion is granted.
    (b) A Notice of Appearance should follow the form set forth in
Exhibit No. 1 to this subpart.
    (c) An attorney must represent in the Notice of Appearance that he
is admitted to practice and in good standing. A non-attorney must
describe his or her authority to act in such capacity.
    (d) If an attorney or other representative of record is superseded,
there shall be filed a stipulation of substitution signed both by the
attorney(s) or representative(s) and by the party, or a written notice
from the party to the Commission with a Notice of Appearance included.
Substitution of counsel or representative will not, by itself, be
considered good cause for delaying a proceeding.
    (e) If an attorney wishes to withdraw from representing a party, and
written consent is not obtained, or if the party is not otherwise
represented, the withdrawing attorney shall file an appropriate motion
seeking permission to withdraw and provide appropriate reasons for
making the motion. Such motion will be decided in consideration of the
factors and standards set forth in Rule 1.16 of the American Bar
Association's Model Rules of Professional Conduct and by the courts.
[Rule 23.]

[64 FR 7807, Feb. 17, 1999, as amended at 78 FR 45069, July 26, 2013]



Sec. 502.24  Practice before the Commission defined.

    (a) Practice before the Commission shall be deemed to comprehend all
matters connected with the presentation of any matter to the Commission,
including the preparation and filing of necessary documents, and
correspondence with and communications to the Commission, on one's own
behalf or representing another. (See Sec. 502.32).
    (b) The term ``Commission'' as used in this subpart includes any
bureau, division, office, branch, section, or unit of the Federal
Maritime Commission and any officer or employee of such bureau,
division, office, branch, section, or unit. [Rule 24.]

[49 FR 44369, Nov. 6, 1984, as amended at 64 FR 7807, Feb. 17, 1999]



Sec. 502.25  Presiding officer.

    (a) Definition. Presiding officer includes, where applicable, one or
more members of the Commission or an administrative law judge.
    (b) Functions and powers. The officer designated to hear a case
shall have the following powers:
    (1) Notices of hearing, subpoenas, depositions, pleadings and scope
of proceedings. To arrange and give notice of hearing; sign and issue
subpoenas authorized by law; take or cause depositions to be taken; rule
upon proposed amendments or supplements to pleadings; and, delineate the
scope of a proceeding instituted by order of the Commission by amending,
modifying, clarifying, or interpreting said order.
    (2) Alternative means of dispute resolution and conferences for
settlement or simplification of issues. To inform the parties as to the
availability of one or more alternative means of dispute resolution,
encourage use of such methods, and require consideration of their use at
an early state of the proceeding; hold conferences for the settlement or
simplification of the issues by consent of the parties or by the use of
alternative means of dispute resolution; transmit the request of parties
for the

[[Page 29]]

appointment of a mediator or settlement judge, as provided by Sec.
502.91; and require the attendance at any such conference pursuant to 5
U.S.C 556(c)(8), of at least one representative of each party who has
authority to negotiate concerning resolution of issues in controversy.
    (3) Hearings, evidence, procedural requests, motions, oaths and
affirmations, and witnesses. To regulate the course of a hearing;
prescribe the order in which evidence shall be presented; dispose of
procedural requests or similar matters; hear and rule upon motions;
administer oaths and affirmations; examine witnesses; direct witnesses
to testify or produce evidence available to them; rule upon offers of
proof and receive relevant, material, reliable, and probative evidence;
act upon motions to intervene; permit submission of facts, arguments,
offers of settlement, and proposals of adjustment; and, if the parties
so request, issue formal opinions providing tentative evaluations of the
evidence submitted; hear oral argument at the close of the testimony.
    (4) Time management and other matters. To fix the time for filing
briefs, motions, and other documents to be filed in connection with
hearings and the administrative law judge's decision thereon, except as
otherwise provided by the rules in this part; act upon petitions for
enlargement of time to file such documents, including answers to formal
complaints; and dispose of any other matter that normally and properly
arises in the course of proceedings.
    (5) Exclusion of persons from a hearing. To exclude any person from
a hearing for disrespectful, disorderly, or inappropriate language or
conduct.
    (c) Functions and powers pursuant to Reorganization Plan No. 7 of
1961. All of the functions delegated in subparts A to Q and subpart T of
this part, inclusive, to the Chief Judge, presiding officer, or
administrative law judge include the functions with respect to hearing,
determining, ordering, certifying, reporting, or otherwise acting as to
any work, business, or matter, pursuant to the provisions of section 105
of Reorganization Plan No. 7 of 1961. [Rule 147.]
    (d) Designation of administrative law judge. An administrative law
judge will be designated by the Chief Administrative Law Judge to
preside at hearings required by statute, in rotation so far as
practicable, unless the Commission or one or more members thereof shall
preside, and will also preside at hearings not required by statute when
designated to do so by the Commission.
    (e) Attachment of functions. In proceedings handled by the Office of
Administrative Law Judges, its functions shall attach:
    (1) Upon the service by the Commission of a Notice of Filing of
Complaint and Assignment of complaint filed pursuant to Sec. 502.62, or
Sec. 502.182, or upon referral under subpart T of this part; or
    (2) Upon reference by the Commission of a petition for a declaratory
order pursuant to Sec. 502.68; or
    (3) Upon forwarding for assignment by the Office of the Secretary of
a special docket application pursuant to Sec. 502.271; or
    (4) Upon the initiation of a proceeding and ordering of hearing
before an administrative law judge pursuant to Sec. 502.63.
    (f) Unavailability. If the presiding officer assigned to a
proceeding becomes unavailable, the Commission, or Chief Judge (if such
presiding officer was an administrative law judge), shall designate a
qualified officer to take his or her place. Any motion predicated upon
the substitution of a new presiding officer for one originally
designated shall be made within ten (10) days after notice of such
substitution.
    (g) Disqualification of presiding or participating officer. Any
presiding or participating officer may at any time withdraw if he or she
deems himself or herself disqualified, in which case there will be
designated another presiding officer. If a party to a proceeding, or its
representative, files a timely and sufficient affidavit of personal bias
or disqualification of a presiding or participating officer, the
Commission will determine the matter as a part of the record and
decision in the case. [Rule 25.]

[78 FR 45069, July 26, 2013]



Sec. 502.26  Attorneys at law.

    Attorneys at law who are admitted to practice before the Federal
courts or

[[Page 30]]

before the courts of any State or Territory of the United States may
practice before the Commission. An attorney practicing before the
Commission is expected to conform to the standards of conduct set forth
in the American Bar Association's Model Rules of Professional Conduct in
addition to the specific requirements of this chapter. [Rule 26.]

[64 FR 7807, Feb. 17, 1999, as amended at 78 FR 45069, July 26, 2013]



Sec. 502.27  Persons not attorneys at law.

    (a)(1) Any person who is not an attorney at law may be admitted to
practice before the Commission if he or she is a citizen of the United
States and files proof to the satisfaction of the Commission that he or
she possesses the necessary legal, technical, or other qualifications to
render valuable service before the Commission and is otherwise competent
to advise and assist in the presentation of matters before the
Commission. Applications by persons not attorneys at law for admission
to practice before the Commission shall be made on the forms prescribed
therefor, which may be obtained from the Secretary of the Commission,
and shall be addressed to the Federal Maritime Commission, Washington,
DC, 20573, and shall be accompanied by a fee as required by Sec.
503.43(e) of this chapter.
    (2) The application for admission to practice before the Commission
by persons not attorneys at law can be downloaded from the Commission's
Web site, www.fmc.gov, or acquired from the Secretary of the Commission
and must be accompanied by a fee as required by Sec. 503.43(e) of this
chapter. The application should be sent to the Federal Maritime
Commission, Washington, DC 20573.
    (3) All applicants must complete the following certification:
    I. -------------------------- (Name) ------------------------,
certify under penalty of perjury under the laws of the United States,
that I have not been convicted, after September 1, 1989, of any Federal
or State offense involving the distribution or possession of a
controlled substance, or that if I have been so convicted, I am not
ineligible to receive Federal benefits, either by court order or
operation of law, pursuant to 21 U.S.C. 862.
    (b) The Commission, in its discretion, may call upon the applicant
for a full statement of the nature and extent of his or her
qualifications. If the Commission is not satisfied as to the sufficiency
of the applicant's qualifications, it will so notify him or her by
registered mail, whereupon he or she shall be granted a hearing upon
request for the purpose of showing his or her qualifications. If the
applicant presents to the Commission no request for such hearing within
twenty (20) days after receiving the notification above referred to, his
or her application shall be acted upon without further notice.
    (c) The Commission may deny admission to, suspend, or prohibit any
person from practice before the Commission who it finds does not possess
the requisite qualifications to represent others or is lacking in
character, integrity, or proper professional conduct. Non-attorneys who
have been admitted to practice before the Commission may be excluded
from such practice only after being afforded an opportunity to be heard.
    (d) A non-attorney may not practice before the Commission unless and
until an application has been approved.
    (e) Paragraph (d) of this section shall not apply, however, to any
person who appears before the Commission on his or her own behalf or on
behalf of any corporation, partnership, or association of which he or
she is a partner, officer, or regular employee. [Rule 27.]

[49 FR 44369, Nov. 6, 1984, as amended at 55 FR 42194, Oct. 18, 1990; 58
FR 58976, Nov. 5, 1993; 62 FR 6132, Feb. 11, 1997; 64 FR 7807, Feb. 17,
1999; 76 FR 10261, Feb. 24, 2011; 78 FR 45070, July 26, 2013]



Sec. Sec. 502.29-502.30  [Reserved]



Sec. 502.31  Statement of interest.

    The Commission may call upon any practitioner for a full statement
of the nature and extent of his or her interest in the subject matter
presented by him or her before the Commission. [Rule 31.]



Sec. 502.32  Former employees.

    Title V of the Ethics in Government Act proscribes certain
activities by

[[Page 31]]

certain former Federal employees (18 U.S.C. 207). In summary, as applied
to former Commission employees, the restrictions and basic procedures
are as follows:
    (a) Restrictions. (1) No former Commission employee may represent in
any formal or informal appearance or make any oral or written
communication with intent to influence a U.S. Government agency in a
particular matter involving a specific party or parties in which the
employee participated personally and substantially while with the
Commission.
    (2) No former Commission employee may, within two years of
terminating Commission employment, act as a representative in the manner
described in paragraph (a)(1) of this section, as to a particular matter
which was actually pending under the employee's official responsibility
within one year prior to termination of the employment.
    (3) Former senior Commission employees (defined as Commissioners and
members of the Senior Executive Service as designated by the Office of
Government Ethics under 18 U.S.C. 207(d)(1)) may not, for two years
after terminating Commission employment, assist in representing a person
by personal presence at an appearance before the Government on a matter
in which the former employee had participated personally and
substantially while at the Commission.
    (4) Former senior Commission employees, as defined in paragraph
(a)(3) of this section, are barred for one year from representing
parties before the Commission or communicating with intent to influence
the Commission, regardless of prior involvement in the particular
proceeding.
    (b) Prior consent for appearance. (1) Prior to making any
appearance, representation or communication described in paragraph (a)
of this section, and, in addition to other requirements of this subpart,
every former employee must apply for and obtain prior written consent of
the Commission for each proceeding or matter in which such appearance,
representation, or communication is contemplated. Such consent will be
given only if the Commission determines that the appearance,
representation or communication is not prohibited by the Act, this
section or other provisions of this chapter.
    (2) To facilitate the Commission's determination that the intended
activity is not prohibited, applications for written consent shall:
    (i) Be directed to the Commission, state the former connection of
the applicant with the Commission and date of termination of employment,
and identify the matter in which the applicant desires to appear; and
    (ii) Be accompanied by an affidavit to the effect that the matter
for which consent is requested is not a matter in which the applicant
participated personally and substantially while at the Commission and,
as made applicable by paragraph (a) of this section, that the particular
matter as to which consent is requested was not pending under the
applicant's official responsibility within one year prior to termination
of employment and that the matter was not one in which the former
employee had participated personally and substantially while at the
Commission. The statements contained in the affidavit shall not be
sufficient if disproved by an examination of the files and records of
the case.
    (3) The applicant shall be promptly advised as to his or her
privilege to appear, represent or communicate in the particular matter,
and the application, affidavit and consent, or refusal to consent, shall
be filed by the Commission in its records relative thereto.
    (c) Reporting possible violations. Possible violations of section
207 of Title 18 of the United States Code, 18 U.S.C. 207, by the
Commission's former officers and employees are required to be reported
to the Attorney General and the Office of Government Ethics, pursuant to
the regulations of the Office of Government Ethics at 5 CFR 2641.103(a)
and 5 CFR 2638.603.
    (d) Partners or associates. (1) In any case in which a former
member, officer, or employee of the Commission is prohibited under this
section from practicing, appearing, or representing anyone before the
Commission in a particular Commission matter, any partner or legal or
business associate of such former member, officer, or employee shall be
prohibited from (i) utilizing the services of the disqualified

[[Page 32]]

former member, officer, or employee in connection with the matter, (ii)
discussing the matter in any manner with the disqualified former member,
officer, or employee, and (iii) sharing directly or indirectly with the
disqualified former member, officer, or employee in any fees or revenues
received for services rendered in connection with such matter.
    (2) The Commission may require any practitioner or applicant to
become a practitioner to file an affidavit to the effect that the
practitioner or applicant will not: (i) Utilize the service of, (ii)
discuss the particular matter with, or (iii) share directly or
indirectly any fees or revenues received for services provided in the
particular matter, with a partner, fellow employee, or legal or business
associate who is a former member, officer or employee of the Commission
and who is either permanently or temporarily precluded from practicing,
appearing or representing anyone before the Commission in connection
with the particular matter; and that the applicant's employment is not
prohibited by any law of the United States or by the regulations of the
Commission. [Rule 32.]

[49 FR 44369, Nov. 6, 1984; 49 FR 47394, Dec. 4, 1984, as amended at 77
FR 61524, Oct. 10, 2012]



 Sec. Exhibit No. 1 to Subpart B [Sec. Sec. 502.23, 502.26, 502.27] of
                     Part 502--Notice of Appearance

                       Federal Maritime Commission

    Docket No. --------------------------:
    Please enter my appearance in this proceeding as counsel for ------
------------------.
    Indicate authority for representation [choose one of the following]:
    ---- I am an attorney admitted to practice and in good standing
before the courts of the State of ----------------------.
    ---- I am admitted to practice before the Commission pursuant to 46
CFR 502.27.
    ---- I am an officer, director, or regular employee of the party.
    I request to be informed of service of notices, orders and decisions
in this proceeding by [choose one of the following]:
[ ] electronic mail
[ ] facsimile transmission
[ ] regular mail
________________________________________________________________________
[Name]
________________________________________________________________________
[Address]
________________________________________________________________________
[Telephone No.]
________________________________________________________________________
[Fax No.]
________________________________________________________________________
[Email address]
________________________________________________________________________
[Signature]

[78 FR 45070, July 26, 2013]



                            Subpart C_Parties



Sec. 502.41  Parties; how designated.

    The term ``party,'' whenever used in this part, includes any natural
person, corporation, association, firm, partnership, trustee, receiver,
agency, public or private organization, government agency, or unit
thereof representing said agency. A party who files a complaint under
Sec. 502.62 shall be designated as ``complainant.'' A party against
whom relief or other affirmative action is sought in a proceeding
commenced under Sec. 502.62 or Sec. 502.73 or a party named in an
order of investigation issued by the Commission shall be designated as
``respondent,'' except that in investigations instituted under section
11(c) of the Shipping Act of 1984, 46 U.S.C. 41302(a)-(b), 41307(b), the
parties to the agreement shall be designated as ``proponents'' and the
parties protesting the agreement shall be designated as ``protestants.''
A person who has been permitted to intervene under Sec. 502.68 shall be
designated as ``intervenor.'' All parties and persons designated in this
section shall be parties to the proceeding. No person other than a party
or its representative may introduce evidence or examine witnesses at
hearings. [Rule 41].

[78 FR 45070, July 26, 2013]



Sec. 502.42  Bureau of Enforcement.

    The Bureau of Enforcement shall be a party to proceedings upon
designation by the Commission or upon leave to intervene granted
pursuant to Sec. 502.68. The Bureau's representative shall be served
with copies of all papers, pleadings, and documents in every proceeding
in which the Bureau is a party. The Bureau shall actively participate in
any proceeding to which it is a party, to the extent required in the
public interest, subject to the separation of functions required by
section

[[Page 33]]

5(c) of the Administrative Procedure Act. [Rule 42]

[78 FR 45071, July 26, 2013]



Sec. 502.43  Substitution of parties.

    The Commission or presiding officer may order an appropriate
substitution of parties in the event of a party's death, incompetence,
transfer of its interest, or other appropriate circumstance. [Rule 43]

[78 FR 45071, July 26, 2013]



                          Subpart D_Rulemaking



Sec. 502.51  Initiation of procedure to issue, amend, or repeal a rule.

    (a) By petition. Any interested party may file with the Commission a
petition for the issuance, amendment, or repeal of a rule designed to
implement, interpret, or prescribe law, policy, organization, procedure,
or practice requirements of the Commission. The petition shall set forth
the interest of petitioner and the nature of the relief desired, shall
include any facts, views, arguments, and data deemed relevant by
petitioner, and shall be verified. If such petition is for the amendment
or repeal of a rule, it shall be accompanied by proof of service on all
persons, if any, specifically named in such rule, and shall conform in
other aspects to subpart H of this part. Petitions shall be accompanied
by remittance of a $241 filing fee. Replies to such petition shall
conform to the requirements of Sec. 502.74.
    (b) By the Commission. The Commission on its own initiative may
initiate the issuance, amendment, or repeal of a rule through notice of
proposed rulemaking or advanced notice of proposed rulemaking. [Rule
51.]

[64 FR 7808, Feb. 17, 1999, as amended at 67 FR 39859, June 11, 2002; 70
FR 10329, Mar. 3, 2005]



Sec. 502.52  Notice of proposed rulemaking.

    (a) General notice of proposed rulemaking, including the information
specified in Sec. 502.143, shall be published in the Federal Register,
unless all persons subject thereto are named and, either are personally
served, or otherwise have actual notice thereof in accordance with law.
    (b) Except where notice or hearing is required by statute, paragraph
(a) of this section shall not apply to interpretative rules, general
statements of policy, rules of agency organization, procedure, or
practice of the Commission, or when the Commission for good cause finds
(and incorporates the findings and a brief statement of reasons therefor
in the rules issued) that notice and public procedure are impracticable,
unnecessary, or contrary to the public interest. [Rule 52]

[49 FR 44369, Nov. 6, 1984, as amended at 78 FR 45071, July 26, 2013]



Sec. 502.53  Participation in rulemaking.

    (a) Interested persons will be afforded an opportunity to
participate in rulemaking through submission of written data, views, or
arguments, with or without opportunity for oral presentation. No replies
to the written submissions will be allowed unless, because of the nature
of the proceeding, the Commission indicates that replies would be
necessary or desirable for the formulation of a just and reasonable
rule, except that, where the proposed rules are such as are required by
statute to be made on the record after opportunity for a hearing, such
hearing shall be conducted pursuant to 5 U.S.C. 556 and 557, and the
procedure shall be the same as stated in subpart J of this part. In the
event that replies or succeeding rounds of comments are permitted,
copies shall be served on all prior participants in the proceeding. A
list of participants may be obtained from the Secretary of the
Commission.
    (b) In those rulemaking proceedings in which respondents are named,
interested persons who wish to participate shall file a petition to
intervene in accordance with the provisions of Sec. 502.72 [Rule 53.]
    (c) Where a formal hearing is held in a rulemaking proceeding,
interested persons will be afforded an opportunity to participate
through submission of relevant, material, reliable, and probative
written evidence properly verified, except that such evidence submitted
by persons not present at the hearing will not be made a part of the
record if objected to by any party on

[[Page 34]]

the ground that the person who submits the evidence is not present for
cross-examination.

[49 FR 44369, Nov. 6, 1984, as amended at 55 FR 28399, July 11, 1990; 78
FR 45071, July 26, 2013]



Sec. 502.54  Contents of rules.

    The Commission will incorporate in any publication of proposed or
final rules a concise and general statement of their basis and purpose.
[Rule 54.]

[78 FR 45071, July 26, 2013]



Sec. 502.55  Effective date of rules.

    The publication or service of any substantive rule shall be made not
less than thirty (30) days prior to its effective date except:
    (a) As otherwise provided by the Commission for good cause found
that notice and public procedure thereon are impractical, unnecessary,
or contrary to the public interest;
    (b) In the case of rules granting or recognizing exemption or
relieving restriction; interpretative rules; or statements of policy.
    (c) Interpretive rules, general statements of policy, or rules of
agency organization, procedure, or practice. [Rule 55.]

[78 FR 45071, July 26, 2013]



Sec. 502.56  Negotiated rulemaking.

    The Commission, either upon petition of interested persons or upon
its own motion, may establish a negotiated rulemaking committee to
negotiate and develop consensus on a proposed rule, if, upon
consideration of the criteria of 5 U.S.C. 563, use of such a committee
is determined by the Commission to be in the public interest. [Rule 56.]

[58 FR 38649, July 19, 1993, as amended at 64 FR 7808, Feb. 17, 1999]



Sec. 502.57  Service by parties of pleadings and other documents.

    Service on all prior commenters must be shown when submitting
comments or replies beyond the initial round on a notice of proposed
rulemaking. A list of all participants may be obtained from the
Secretary of the Commission.

[78 FR 45071, July 26, 2013]



           Subpart E_Proceedings; Pleadings; Motions; Replies

    Source: 77 FR 61524, Oct. 10, 2012, unless otherwise noted.



Sec. 502.61  Proceedings.

    (a) Any person may commence a proceeding by filing a complaint (Rule
62) for a formal adjudication under normal or shortened procedures
(subpart K) or by filing a claim for the informal adjudication of small
claims (subpart S). A person may also file a petition for a rulemaking
(Rule 51), for an exemption (Rule 74), for a declaratory order (Rule
75), or for other appropriate relief (Rule 76), which becomes a
proceeding when the Commission assigns a formal docket number to the
petition. The Commission may commence a proceeding for a rulemaking, for
an adjudication (including Commission enforcement action under Sec.
502.63), or a non-adjudicatory investigation upon petition or on its own
initiative by issuing an appropriate order.
    (b) In the order instituting a proceeding or in the notice of filing
of complaint and assignment, the Commission must establish dates by
which the initial decision and the final Commission decision will be
issued. These dates may be extended by order of the Commission for good
cause shown. [Rule 61.]



Sec. 502.62  Private party complaints for formal adjudication.

    (a) Filing a complaint for formal adjudication. (1) A person may
file a sworn complaint alleging violation of the Shipping Act of 1984,
46 U.S.C. 40101 et seq.
    (2) Form. Complaints should be drafted in accordance with the rules
in this section.
    (3) Content of complaint. The complaint must be verified and must
contain the following:
    (i) The name, street address, and email address of each complainant,
and the name, address, and email address of

[[Page 35]]

each complainant's attorney or representative, the name, address, and,
if known, email address of each person against whom complaint is made;
    (ii) A recitation of the legal authority and jurisdiction for
institution of the proceeding, with specific designation of the
statutory provisions alleged to have been violated;
    (iii) A clear and concise factual statement sufficient to inform
each respondent with reasonable definiteness of the acts or practices
alleged to be in violation of the law, and a statement showing that the
complainant is entitled to relief;
    (iv) A request for the relief and other affirmative action sought;
and
    (v) Shipping Act violation must be alleged. If the complaint fails
to indicate the sections of the Act alleged to have been violated or
clearly to state facts which support the allegations, the Commission
may, on its own initiative, require the complaint to be amended to
supply such further particulars as it deems necessary.
    (4) Complaints seeking reparation; statute of limitations. A
complaint may seek reparation (money damages) for injury caused by
violation of the Shipping Act of 1984. (See subpart O of this part.)
    (i) Where reparation is sought, the complaint must set forth the
injury caused by the alleged violation and the amount of alleged
damages.
    (ii) Except under unusual circumstances and for good cause shown,
reparation will not be awarded upon a complaint in which it is not
specifically requested, nor upon a new complaint by or for the same
complainant which is based upon a finding in the original proceeding.
    (iii) A complaint seeking reparation must be filed within three
years after the claim accrues. Notification to the Commission that a
complaint may or will be filed for the recovery of reparation will not
constitute a filing within the applicable statutory period.
    (iv) Civil penalties must not be requested and will not be awarded
in complaint proceedings.
    (5) Oral hearing. The complaint should designate whether an oral
hearing is requested and the desired place for any oral hearing. The
presiding officer will determine whether an oral hearing is necessary.
    (6) Filing fee. The complaint must be accompanied by remittance of a
$221 filing fee.
    (7) A complaint is deemed filed on the date it is received by the
Commission.
    (b) Answer to a complaint. (1) Time for filing. A respondent must
file with the Commission an answer to the complaint and must serve the
answer on complainant as provided in subpart H of this part within 25
days after the date of service of the complaint by the Commission unless
this period has been extended under Sec. 502.67 or Sec. 502.102, or
reduced under Sec. 502.103, or unless motion is filed to withdraw or
dismiss the complaint, in which latter case, answer must be filed within
10 days after service of an order denying such motion. For good cause
shown, the presiding officer may extend the time for filing an answer.
    (2) Contents of answer. The answer must be verified and must contain
the following:
    (i) The name, address, and email address of each respondent, and the
name, address, and email address of each respondent's attorney or
representative;
    (ii) Admission or denial of each alleged violation of the Shipping
Act;
    (iii) A clear and concise statement of each ground of defense and
specific admission, denial, or explanation of facts alleged in the
complaint, or, if respondent is without knowledge or information
thereof, a statement to that effect; and
    (iv) Any affirmative defenses, including allegations of any
additional facts on which the affirmative defenses are based.
    (3) Oral hearing. The answer should designate whether an oral
hearing is requested and the desired place for such hearing. The
presiding officer will determine whether an oral hearing is necessary.
    (4) Counterclaims, crossclaims, and third-party complaints. In
addition to filing an answer to a complaint, a respondent may include in
the answer a counterclaim against the complainant, a crossclaim against
another respondent, or a third-party complaint. A

[[Page 36]]

counterclaim, a crossclaim, or a third-party complaint must allege and
be limited to violations of the Shipping Act within the jurisdiction of
the Commission. The service and filing of a counterclaim, a crossclaim,
or a third-party complaint and answers or replies thereto are governed
by the rules and requirements of this section for the filing of
complaints and answers.
    (5) A reply to an answer may not be filed unless ordered by the
presiding officer.
    (6) Effect of failure to file answer. (i) Failure of a party to file
an answer to a complaint, counterclaim, crossclaim, or third-party
complaint within the time provided will be deemed to constitute a waiver
of that party's right to appear and contest the allegations of the
complaint, counterclaim, crossclaim, or third-party complaint to which
it has not filed an answer and to authorize the presiding officer to
enter an initial decision on default as provide for in 46 CFR 502.65.
Well pleaded factual allegations in the complaint not answered or
addressed will be deemed to be admitted.
    (ii) A party may make a motion for initial decision on default.
[Rule 62.]

[77 FR 61524, Oct. 10, 2012; 77 FR 64758, Oct. 23, 2012]



Sec. 502.63  Commission enforcement action.

    (a) The Commission may issue an Order of Investigation and Hearing
commencing an adjudicatory investigation against one or more respondents
alleging one or more violations of the statutes that it administers.
    (b) Contents of Order of Investigation and Hearing. The Order of
Investigation and Hearing must contain the following:
    (1) The name, street address, and, if known, email address of each
person against whom violations are alleged;
    (2) A recitation of the legal authority and jurisdiction for
institution of the proceeding, with specific designation of the
statutory provisions alleged to have been violated;
    (3) A clear and concise factual statement sufficient to inform each
respondent with reasonable definiteness of the acts and practices
alleged to be in violation of the law;
    (4) Notice of penalties, cease and desist order, or other
affirmative action sought; and
    (5) Notice of the requirement to file an answer and a statement of
the consequences of failure to file an answer.
    (c) Answer to Order of Investigation and Hearing. (1) Time for
filing. A respondent must file with the Commission an answer to the
Order of Investigation and Hearing and serve a copy of the answer on the
Bureau of Enforcement within 25 days after being served with the Order
of Investigation and Hearing unless this period has been extended under
Sec. 502.67 or Sec. 502.102, or reduced under Sec. 502.103, or unless
motion is filed to withdraw or dismiss the Order of Investigation and
Hearing, in which latter case, answer must be filed within 10 days after
service of an order denying such motion. For good cause shown, the
presiding officer may extend the time for filing an answer.
    (2) Contents of answer. The answer must be verified and must contain
the following:
    (i) The name, address, and email address of each respondent, and the
name, address, and email address of each respondent's attorney or
representative;
    (ii) Admission or denial of each alleged violation of the Shipping
Act;
    (iii) A clear and concise statement of each ground of defense and
specific admission, denial, or explanation of facts alleged in the
complaint, or, if respondent is without knowledge or information
thereof, a statement to that effect; and
    (iv) Any affirmative defenses, including allegations of any
additional facts on which the affirmative defenses are based.
    (3) Oral hearing. The answer must indicate whether an oral hearing
is requested and the desired place for such hearing. The presiding
officer will determine whether an oral hearing is necessary.
    (4) Effect of failure to file answer. (i) Failure of a respondent to
file an answer to an Order of Investigation and Hearing within the time
provided will be deemed to constitute a waiver of the

[[Page 37]]

respondent's right to appear and contest the allegations in the Order of
Investigation and Hearing and to authorize the presiding officer to
enter a decision on default as provided for in 46 CFR 502.65. Well
pleaded factual allegations in the Order of Investigation and Hearing
not answered or addressed will be deemed to be admitted.
    (ii) The Bureau of Enforcement may make a motion for decision on
default. [Rule 63.]



Sec. 502.64  Alternative dispute resolution.

    (a) Mandatory preliminary conference. (1) Participation. Subsequent
to service of a Complaint, parties must participate in a preliminary
conference with the Commission's Office of Consumer Affairs and Dispute
Resolution Services (CADRS) as to whether the matter may be resolved
through mediation. The preliminary conference may be conducted either in
person or via telephone, video conference, or other forum.
    (2) Timing. Within fifteen (15) days of the filing of an answer, the
parties must contact the Director of CADRS to schedule the preliminary
conference. The Director of CADRS or his/her designees will conduct the
preliminary conference and may confer with each party separately at any
time.
    (b) Continued availability of dispute resolution services to resolve
procedural and other disputes. Pursuant to subpart U of this part, the
parties mutually may agree, at any time prior to the termination of a
Commission proceeding, to initiate or reopen a mediation proceeding to
explore resolution of procedural or substantive issues.
    (c) Proceeding not stayed during dispute resolution process. Unless
otherwise ordered by the presiding officer, a mediation proceeding does
not stay or delay the procedural time requirements set forth by rule or
order of the presiding officer.
    (d) Confidentiality. The preliminary conference will be
confidential. [Rule 64.]



Sec. 502.65  Decision on default.

    (a) A party to a proceeding may be deemed to be in default if that
party fails:
    (1) To appear, in person or through a representative, at a hearing
or conference of which that party has been notified;
    (2) To answer, to respond to a dispositive motion within the time
provided, or otherwise to defend the proceeding; or
    (3) To cure a deficient filing within the time specified by the
Commission or the presiding officer.
    (b) When a party is found to be in default, the Commission or the
presiding officer may issue a decision on default upon consideration of
the record, including the complaint or Order of Investigation and
Hearing.
    (c) The presiding officer may require additional information or
clarification when needed to issue a decision on default, including a
determination of the amount of reparations or civil penalties where
applicable.
    (d) A respondent who has defaulted may file with the Commission a
petition to set aside a decision on default. Such a petition must be
made within 22 days of the service date of the decision, state in detail
the reasons for failure to appear or defend, and specify the nature of
the proposed defense. In order to prevent injustice, the Commission may
for good cause shown set aside a decision on default. [Rule 65.]



Sec. 502.66  Amendments or supplements to pleadings.

    (a) Amendments or supplements to any pleading (complaint, Order of
Investigation and Hearing, counterclaim, crossclaim, third-party
complaint, and answers thereto) will be permitted or rejected, either in
the discretion of the Commission or presiding officer. No amendment will
be allowed that would broaden the issues, without opportunity to reply
to such amended pleading and to prepare for the broadened issues. The
presiding officer may direct a party to state its case more fully and in
more detail by way of amendment.
    (b) A response to an amended pleading must be filed and served in
conformity with the requirements of subpart H and Sec. 502.69 of this
part, unless the Commission or the presiding officer directs otherwise.
Amendments or supplements allowed prior to hearing will be served in the
same manner as the

[[Page 38]]

original pleading, except that the presiding officer may authorize the
service of amended complaints directly by the parties rather than by the
Secretary of the Commission.
    (c) Whenever by the rules in this part a pleading is required to be
verified, the amendment or supplement must also be verified. [Rule 66.]



Sec. 502.67  Motion for more definite statement.

    If a pleading (including a complaint, counterclaim, crossclaim, or
third-party complaint filed pursuant to Sec. 502.62) to which a
responsive pleading is permitted is so vague or ambiguous that a party
cannot reasonably prepare a response, the party may move for a more
definite statement before filing a responsive pleading. The motion must
be filed within 15 days of the pleading and must point out the defects
complained of and the details desired. If the motion is granted and the
order of the presiding officer is not obeyed within 10 days after
service of the order or within such time as the presiding officer sets,
the presiding officer may strike the pleading to which the motion was
directed or issue any other appropriate order. If the motion is denied,
the time for responding to the pleading must be extended to a date 10
days after service of the notice of denial. [Rule 67.]



Sec. 502.68  Motion for leave to intervene.

    (a) Filing. A motion for leave to intervene may be filed in any
proceeding.
    (b) Procedure for intervention. (1) Upon request, the Commission
will furnish a service list to any member of the public pursuant to part
503 of this chapter.
    (2) The motion must:
    (i) Comply with all applicable provisions of subpart A of this part;
    (ii) Indicate the type of intervention sought;
    (iii) Describe the interest and position of the person seeking
intervention, and address the grounds for intervention set forth in
paragraph (c) of this section;
    (iv) Describe the nature and extent of its proposed participation,
including the use of discovery, presentation of evidence, and
examination of witnesses;
    (v) State the basis for affirmative relief, if affirmative relief is
sought; and
    (vi) Be served on existing parties by the person seeking
intervention pursuant to subpart H of this part.
    (3) A response to a motion to intervene must be served and filed
within 15 days after the date of service of the motion.
    (c)(1) Intervention of right. The presiding officer or Commission
must permit anyone to intervene who claims an interest relating to the
property or transaction that is subject of the proceeding, and is so
situated that disposition of the proceeding may as a practical matter
impair or impede the ability of such person to protect its interest,
unless existing parties adequately represent that interest.
    (2) Permissive intervention. (i) In general. The presiding officer
or Commission may permit anyone to intervene who shows that a common
issue of law or fact exists between such person's interest and the
subject matter of the proceeding; that intervention would not unduly
delay or broaden the scope of the proceeding, prejudice the adjudication
of the rights, or be duplicative of the positions of any existing party;
and that such person's participation may reasonably be expected to
assist in the development of a sound record.
    (ii) By a government department, agency, or the Commission's Bureau
of Enforcement. The presiding officer or Commission may permit
intervention by a Federal or State government department or agency or
the Commission's Bureau of Enforcement upon a showing that its expertise
is relevant to one or more issues involved in the proceeding and may
assist in the consideration of those issues.
    (3) The timeliness of the motion will also be considered in
determining whether a motion will be granted under paragraph (b)(2) of
this section and should be filed no later than 30 days after publication
in the Federal Register of the Commission's order instituting the
proceeding or the notice of the filing of the complaint. Motions filed
after that date must show good cause for the failure to file within the
30-day period.

[[Page 39]]

    (d) Use of discovery by an intervenor. (1) Absent good cause shown,
an intervenor desiring to utilize the discovery procedures provided in
subpart L must commence doing so no more than 15 days after its motion
for leave to intervene has been granted.
    (2) The Commission or presiding officer may impose reasonable
limitations on an intervenor's participation in order to:
    (i) Restrict irrelevant or duplicative discovery, evidence, or
argument;
    (ii) Have common interests represented by a spokesperson; and
    (iii) Retain authority to determine priorities and control the
course of the proceeding.
    (3) The use of discovery procedures by an intervenor whose motion
was filed more than 30 days after publication in the Federal Register of
the Commission's order instituting the proceeding or the notice of the
filing of the complaint will not be allowed if the presiding officer
determines that the use of the discovery by the intervenor will unduly
delay the proceeding. [Rule 68.]



Sec. 502.69  Motions.

    (a) In any adjudication, an application or request for an order or
ruling not otherwise specifically provided for in this part must be by
motion. After the assignment of a presiding officer to a proceeding and
before the issuance of his or her recommended or initial decision, all
motions must be addressed to and ruled upon by the presiding officer
unless the subject matter of the motion is beyond his or her authority,
in which event the matter must be referred to the Commission. If the
proceeding is not before the presiding officer, motions must be
designated as petitions and must be addressed to and ruled upon by the
Commission.
    (b) Motions must be in writing, except that a motion made at a
hearing may be sufficient if stated orally upon the record.
    (c) Oral argument upon a written motion may be permitted at the
discretion of the presiding officer or the Commission.
    (d) A repetitious motion will not be entertained.
    (e) All written motions must state clearly and concisely the purpose
of and the relief sought by the motion, the statutory or principal
authority relied upon, and the facts claimed to constitute the grounds
supporting the relief requested; and must conform with the requirements
of subpart H of this part.
    (f) Any party may file and serve a response to any written motion,
pleading, petition, application, etc., permitted under this part except
as otherwise provided respecting answers (Sec. 502.62), shortened
procedure (subpart K of this part), briefs (Sec. 502.221), exceptions
(Sec. 502.227), and reply to petitions for attorney fees under the
Equal Access to Justice Act (Sec. 502.503(b)(1)).
    (g) Dispositive and non-dispositive motions defined. For the purpose
of these rules, dispositive motion means a motion for decision on the
pleadings; motion for summary decision or partial summary decision;
motion to dismiss all or part of a proceeding or party to a proceeding;
motion for involuntary dismissal; motion for initial decision on
default; or any other motion for a final determination of all or part of
a proceeding. All other motions, including all motions related to
discovery, are non-dispositive motions. [Rule 69.]



Sec. 502.70  Procedure for dispositive motions.

    (a) A dispositive motion as defined in Sec. 502.69(g) of this
subpart must include a concise statement of the legal basis of the
motion with citation to legal authority and a statement of material
facts with exhibits as appropriate.
    (b) A response to a dispositive motion must be served and filed
within 15 days after the date of service of the motion. The response
must include a concise statement of the legal basis of the response with
citation to legal authority and specific responses to any statements of
material facts with exhibits as appropriate.
    (c) A reply to the response to a dispositive motion may be filed
within 7 days after the date of service of the response to the motion. A
reply may not raise new grounds for relief or present matters that do
not relate to the response and must not reargue points made in the
opening motion.

[[Page 40]]

    (d) The non-moving party may not file any further reply unless
requested by the Commission or presiding officer, or upon a showing of
extraordinary circumstances.
    (e) Page limits. Neither the motion nor the response may exceed 30
pages, excluding exhibits or appendices, without leave of the presiding
officer. A reply may not exceed 15 pages. [Rule 70.]



Sec. 502.71  Procedure for non-dispositive motions.

    (a) Duty to confer. Before filing a non-dispositive motion as
defined in Sec. 502.69(g) of this subpart, the parties must attempt to
discuss the anticipated motion with each other in a good faith effort to
determine whether there is any opposition to the relief sought and, if
there is opposition, to narrow the areas of disagreement. The moving
party must state within the body of the motion what attempt was made or
that the discussion occurred and whether the motion is opposed.
    (b) Response to a non-dispositive motion. A response to a non-
dispositive motion must be served and filed within 7 days after the date
of service of the motion.
    (c) Response replies. The moving party may not file a reply to a
response to a non-dispositive motion unless requested by the Commission
or presiding officer, or upon a showing of extraordinary circumstances.
    (d) Page limits. Neither the motion nor the response may exceed 10
pages, excluding exhibits or appendices, without leave of the presiding
officer. [Rule 71.]



Sec. 502.72  Dismissals.

    (a) Voluntary dismissal. (1) By the complainant. The complainant may
dismiss an action without an order from the presiding officer by filing
a notice of dismissal before the opposing party serves either an answer,
a motion to dismiss, or a motion for summary decision; or a stipulation
of dismissal signed by all parties who have appeared. Unless the notice
or stipulation states otherwise, the dismissal is without prejudice.
    (2) By order of the presiding officer. Except as provided in
paragraph (a)(1) of this section, an action may be dismissed at the
complainant's request only by order of the presiding officer or the
Commission, on terms the presiding officer considers proper. If a
respondent has pleaded a counterclaim before being served with the
complainant's motion to dismiss, the action may be dismissed over the
respondent's objection only if the counterclaim can remain pending for
independent adjudication. Unless the order states otherwise, a dismissal
under this paragraph is without prejudice.
    (b) Involuntary dismissal; effect. If the complainant fails to
prosecute or to comply with these rules or an order in the proceeding, a
respondent may move to dismiss the action or any claim against it.
Unless the dismissal order states otherwise, a dismissal under this
subpart, except one for lack of jurisdiction or failure to join a party,
operates as an adjudication on the merits.
    (c) Dismissing a counterclaim, crossclaim, or third-party claim.
This rule applies to dismissals of any counterclaim, crossclaim, or
third-party claim. A claimant's voluntary dismissal under this rule must
be made before a responsive pleading is served. [Rule 72.]



Sec. 502.73  Order to show cause.

    The Commission may institute a proceeding by order to show cause.
The order must be served upon all persons named therein, must include
the information specified in Sec. 502.143, must require the person
named therein to answer, and may require such person to appear at a
specified time and place and present evidence upon the matters
specified. [Rule 73.]



Sec. 502.74  Exemption procedures--general.

    (a) Authority. The Commission, upon application or on its own
motion, may by order or regulation exempt for the future any class of
agreements between persons subject to the Shipping Act of 1984 or any
specified activity of those persons from any requirement of the Act if
the Commission finds that the

[[Page 41]]

exemption will not result in substantial reduction in competition or be
detrimental to commerce. The Commission may attach conditions to any
exemption and may, by order, revoke any exemption.
    (b) Application for exemption. Any person may petition the
Commission for an exemption or revocation of an exemption of any class
of agreements or an individual agreement or any specified activity
pursuant to section 16 of the Shipping Act of 1984 (46 U.S.C. 40103). A
petition for exemption must state the particular requirement of the
Shipping Act of 1984 for which exemption is sought. The petition must
also include a statement of the reasons why an exemption should be
granted or revoked, must provide information relevant to any finding
required by the Act and must comply with Sec. 502.76. Where a petition
for exemption of an individual agreement is made, the application must
include a copy of the agreement. Unless a petition specifically requests
an exemption by regulation, the Commission must evaluate the petition as
a request for an exemption by order.
    (c) Participation by interested persons. No order or regulation of
exemption or revocation of exemption may be issued unless opportunity
for hearing has been afforded interested persons and departments and
agencies of the United States.
    (d) Federal Register notice. Notice of any proposed exemption or
revocation of exemption, whether upon petition or the Commission's own
motion, must be published in the Federal Register. The notice must
include when applicable:
    (1) A short title for the proposed exemption or the title of the
existing exemption;
    (2) The identity of the party proposing the exemption or seeking
revocation;
    (3) A concise summary of the agreement or class of agreements or
specified activity for which exemption is sought, or the exemption which
is to be revoked;
    (4) A statement that the petition and any accompanying information
are available for inspection in the Commission's offices in Washington,
DC; and
    (5) The final date for filing comments regarding the proposal. [Rule
74.]



Sec. 502.75  Declaratory orders and fee.

    (a)(1) The Commission may, in its discretion, issue a declaratory
order to terminate a controversy or to remove uncertainty.
    (2) Petitions for the issuance thereof must: state clearly and
concisely the controversy or uncertainty; name the persons and cite the
statutory authority involved; include a complete statement of the facts
and grounds prompting the petition, together with full disclosure of
petitioner's interest; be served upon all parties named therein; and
conform to the requirements of subpart H of this part.
    (3) Petitions must be accompanied by remittance of a $241 filing
fee.
    (b) Petitions under this section must be limited to matters
involving conduct or activity regulated by the Commission under statutes
administered by the Commission. The procedures of this section must be
invoked solely for the purpose of obtaining declaratory rulings which
will allow persons to act without peril upon their own view.
Controversies involving an allegation of violation by another person of
statutes administered by the Commission, for which coercive rulings such
as payment of reparation or cease and desist orders are sought, are not
proper subjects of petitions under this section. Such matters must be
adjudicated either by filing of a complaint under section 11 of the
Shipping Act of 1984 (46 U.S.C. 41301-41302, 41305-41307(a)) and Sec.
502.62, or by filing of a petition for investigation under Sec. 502.76.
    (c) Petitions under this section must be accompanied by the complete
factual and legal presentation of petitioner as to the desired
resolution of the controversy or uncertainty, or a detailed explanation
why such can only be developed through discovery or evidentiary hearing.
    (d) Responses to the petition must contain the complete factual and
legal presentation of the responding party as to the desired resolution,
or a detailed explanation why such can only be developed through
discovery or evidentiary hearing. Responses must conform to the
requirements of Sec. 502.69 and

[[Page 42]]

must be served pursuant to subpart H of this part.
    (e) No additional submissions will be permitted unless ordered or
requested by the Commission or the presiding officer. If discovery or
evidentiary hearing on the petition is deemed necessary by the parties,
such must be requested in the petition or responses. Requests must state
in detail the facts to be developed, their relevance to the issues, and
why discovery or hearing procedures are necessary to develop such facts.
    (f)(1) A notice of filing of any petition which meets the
requirements of this section must be published in the Federal Register.
The notice will indicate the time for filing of responses to the
petition. If the controversy or uncertainty is one of general public
interest, and not limited to specifically named persons, opportunity for
response will be given to all interested persons including the
Commission's Bureau of Enforcement.
    (2) In the case of petitions involving a matter limited to
specifically named persons, participation by persons not named therein
will be permitted only upon grant of intervention by the Commission
pursuant to Sec. 502.68.
    (3) Petitions for leave to intervene must be submitted on or before
the response date and must be accompanied by intervenor's complete
response including its factual and legal presentation in the matter.
    (g) Petitions for declaratory order which conform to the
requirements of this section will be referred to a formal docket.
Referral to a formal docket is not to be construed as the exercise by
the Commission of its discretion to issue an order on the merits of the
petition. [Rule 75.]



Sec. 502.76  Petitions--general and fee.

    (a) Except when submitted in connection with a formal proceeding,
all claims for relief or other affirmative action by the Commission,
including appeals from Commission staff action, except as otherwise
provided in this part, must be by written petition, which must state
clearly and concisely the petitioner's grounds of interest in the
subject matter, the facts relied upon and the relief sought, must cite
by appropriate reference the statutory provisions or other authority
relied upon for relief, must be served upon all parties named therein,
and must conform otherwise to the requirements of subpart H of this
part. Responses thereto must conform to the requirements of Sec.
502.67.
    (b) Petitions must be accompanied by remittance of a $241 filing
fee. [Rule 76.]



Sec. 502.77  Proceedings involving assessment agreements.

    (a) In complaint proceedings involving assessment agreements filed
under section 5(e) of the Shipping Act of 1984 (46 U.S.C. 40301(e),
40305), the Notice of Filing of Complaint and Assignment will specify a
date before which the initial decision will be issued, which date will
not be more than eight months from the date the complaint was filed.
    (b) Any party to a proceeding conducted under this section who
desires to utilize the prehearing discovery procedures provided by
subpart L of this part must commence doing so at the time it files its
initial pleading, i.e., complaint, answer, or petition for leave to
intervene. Discovery matters accompanying complaints must be filed with
the Secretary of the Commission for service pursuant to Sec. 502.113.
Answers or objections to discovery requests must be subject to the
normal provisions set forth in subpart L.
    (c) Exceptions to the decision of the presiding officer, filed
pursuant to Sec. 502.227, must be filed and served no later than 15
days after date of service of the initial decision. Replies thereto must
be filed and served no later than 15 days after date of service of
exceptions. In the absence of exceptions, the decision of the presiding
officer must be final within 30 days from the date of service, unless
within that period, a determination to review is made in accordance with
the procedures outlined in Sec. 502.227. [Rule 77.]



Sec. 502.78  Brief of an amicus curiae.

    (a) A brief of an amicus curiae may be filed only by leave of the
Commission or the presiding officer granted on motion with notice to the
parties, or at the request of the Commission or the presiding officer,
except that leave

[[Page 43]]

must not be required when the brief is presented by the United States or
any agency or officer of the United States. The brief may be
conditionally filed with the motion for leave. A brief of an amicus
curiae must be limited to questions of law or policy.
    (b) A motion for leave to file an amicus brief must identify the
interest of the applicant and must state the reasons why such a brief is
desirable.
    (c) Except as otherwise permitted by the Commission or the presiding
officer, an amicus curiae must file its brief no later than 7 days after
the initial brief of the party it supports is received at the
Commission. An amicus curiae that is not supporting either party must
file its brief no later than 7 days after the initial brief of the first
party filing a brief is received at the Commission. The Commission or
the presiding officer must grant leave for a later filing only for cause
shown, in which event the period within which an opposing party may
answer must be specified.
    (d) A motion of an amicus curiae to participate in oral argument
will be granted only in accordance with the requirements of Sec.
502.241. [Rule 78.]



Sec. 502.79  Consolidation of proceedings.

    The Commission or the Chief Administrative Law Judge (or designee)
may order two or more proceedings which involve substantially the same
issues consolidated and heard together.

[78 FR 45071, July 26, 2013]



               Subpart F_Settlement; Prehearing Procedure



Sec. 502.91  Opportunity for informal settlement.

    (a) Parties are encouraged to make use of all the procedures of this
part which are designed to simplify or avoid formal litigation, and to
assist the parties in reaching settlements whenever it appears that a
particular procedure would be helpful.
    (b) Where time, the nature of the proceeding, and the public
interest permit, all interested parties shall have the opportunity for
the submission and consideration of facts, argument, offers of
settlement, or proposal of adjustment, without prejudice to the rights
of the parties.
    (c) No stipulation, offer, or proposal shall be admissible in
evidence over the objection of any party in any hearing on the matter.
[Rule 91.]
    (d) As soon as practicable after the commencement of any proceeding,
the presiding judge shall direct the parties or their representatives to
consider the use of alternative dispute resolution, including but not
limited to mediation, and may direct the parties or their
representatives to consult with the Federal Maritime Commission
Alternative Dispute Resolution Specialist about the feasibility of
alternative dispute resolution.
    (e) Any party may request that a mediator or other neutral be
appointed to assist the parties in reaching a settlement. If such a
request or suggestion is made and is not opposed, the presiding judge
will appoint a mediator or other neutral who is acceptable to all
parties, coordinating with the Federal Maritime Commission Alternative
Dispute Resolution Specialist. The mediator or other neutral shall
convene and conduct one or more mediation or other sessions with the
parties and shall inform the presiding judge, within the time prescribed
by the presiding judge, whether the dispute resolution proceeding
resulted in a resolution or not, and may make recommendations as to
future proceedings. If settlement is reached, it shall be submitted to
the presiding judge who shall issue an appropriate decision or ruling.
All such dispute resolution proceedings shall be subject to the
provisions of subpart U.
    (f) Any party may request that a settlement judge be appointed to
assist the parties in reaching a settlement. If such a request or
suggestion is made and is not opposed, the presiding judge will advise
the Chief Administrative Law Judge who may appoint a settlement judge
who is acceptable to all parties. The settlement judge shall convene and
preside over conferences and settlement negotiations and shall report to
the presiding judge within the time prescribed by the Chief
Administrative Law Judge, on the results of settlement discussions with
appropriate recommendations as to future proceedings. If settlement is
reached,

[[Page 44]]

it shall be submitted to the presiding judge who shall issue an
appropriate decision or ruling. [Rule 91].

[49 FR 44369, Nov. 6, 1984, as amended at 58 FR 38649, July 19, 1993; 64
FR 7808, Feb. 17, 1999; 66 FR 43513, Aug. 20, 2001]



Sec. 502.92  [Reserved]



Sec. 502.94  Prehearing conference.

    (a)(1) Prior to any hearing, the Commission or presiding officer may
direct all interested parties, by written notice, to attend one or more
prehearing conferences for the purpose of considering any settlement
under Sec. 502.91, formulating the issues in the proceeding and
determining other matters to aid in its disposition. In addition to any
offers of settlement or proposals of adjustment, there may be considered
the following:
    (i) Simplification of the issues;
    (ii) The necessity or desirability of amendments to the pleadings;
    (iii) The possibility of obtaining admissions of fact and of
documents which will avoid unnecessary proof;
    (iv) Limitation on the number of witnesses;
    (v) The procedure at the hearing;
    (vi) The distribution to the parties prior to the hearing of written
testimony and exhibits;
    (vii) Consolidation of the examination of witnesses by counsel;
    (viii) Such other matters as may aid in the disposition of the
proceeding.
    (2) The presiding officer may require, prior to the hearing,
exchange of exhibits and any other material which may expedite the
hearing. He or she shall assume the responsibility of accomplishing the
purposes of the notice of prehearing conference so far as this may be
possible without prejudice to the rights of any party.
    (3) The presiding officer shall rule upon all matters presented for
decision, orally upon the record when feasible, or by subsequent ruling
in writing. If a party determines that a ruling made orally does not
cover fully the issue presented, or is unclear, such party may petition
for a further ruling thereon within ten (10) days after receipt of the
transcript.
    (b) In any proceeding under the rules in this part, the presiding
officer may call the parties together for an informal conference prior
to the taking of testimony, or may recess the hearing for such a
conference, with a view to carrying out the purposes of this section.
[Rule 94.]
    (c) At any prehearing conference, consideration shall be given to
whether the use of alternative dispute resolution would be appropriate
or useful for the disposition of the proceeding whether or not there has
been previous consideration of such use.

[49 FR 44369, Nov. 6, 1984, as amended at 58 FR 38649, July 19, 1993; 64
FR 7808, Feb. 17, 1999; 66 FR 43513, Aug. 20, 2001]



Sec. 502.95  Prehearing statements.

    (a) Unless waiver is granted by the presiding officer, it shall be
the duty of all parties to a proceeding to prepare a statement or
statements at a time and in the manner to be established by the
presiding officer provided that there has been reasonable opportunity
for discovery. To the extent possible, joint statements should be
prepared.
    (b) A prehearing statement shall state the name of the party or
parties on whose behalf it is presented and briefly set forth the
following matters, unless otherwise ordered by the presiding officer:
    (1) Issues involved in the proceeding.
    (2) Facts stipulated pursuant to the procedures together with a
statement that the party or parties have communicated or conferred in a
good faith effort to reach stipulation to the fullest extent possible.
    (3) Facts in dispute.
    (4) Witnesses and exhibits by which disputed facts will be
litigated.
    (5) A brief statement of applicable law.
    (6) The conclusion to be drawn.
    (7) Suggested time and location of hearing and estimated time
required for presentation of the party's or parties' case.
    (8) Any appropriate comments, suggestions or information which might
assist the parties in preparing for the hearing or otherwise aid in the
disposition of the proceeding.
    (c) The presiding officer may, for good cause shown, permit a party
to introduce facts or argue points of law outside the scope of the facts
and law

[[Page 45]]

outlined in the prehearing statement. Failure to file a prehearing
statement, unless waiver has been granted by the presiding officer, may
result in dismissal of a party from the proceeding, dismissal of a
complaint, judgment against respondents, or imposition of such other
sanctions as may be appropriate under the circumstances.
    (d) Following the submission of prehearing statements, the presiding
officer may, upon motion or otherwise, convene a prehearing conference
for the purpose of further narrowing issues and limiting the scope of
the hearing if, in his or her opinion, the prehearing statements
indicate lack of dispute of material fact not previously acknowledged by
the parties or lack of legitimate need for cross-examination and is
authorized to issue appropriate orders consistent with the purposes
stated in this section. [Rule 95.]



         Sec. Exhibit No. 1 to Subpart F of Part 502 [Reserved]



                             Subpart G_Time



Sec. 502.101  Computation.

    In computing any period of time under the rules in this part, the
time begins with the day following the act, event, or default, and
includes the last day of the period, unless it is a Saturday, Sunday, or
national legal holiday, in which event the period runs until the end of
the next day which is not a Saturday, Sunday, or national legal holiday.
When the period of time prescribed or allowed is less than seven (7)
days, intermediate Saturdays, Sundays, or national legal holidays shall
be excluded from the computation. [Rule 101.]



Sec. 502.102  Enlargement of time to file documents.

    (a) Motions for enlargement of time for the filing of any pleading
or other document, or in connection with the procedures of subpart L of
this part, shall set forth the reasons for the motion and be submitted
at least five (5) days before the scheduled date for filing. Except for
good cause shown, failure to meet this time requirement may result in
summary rejection of the request.
    (b) Such motions will be granted only under exceptional
circumstances duly demonstrated in the request, and shall conform to the
requirements of Subpart H of this part, except as to service if they
show that the parties have received actual notice of the motion; and in
relation to briefs, exceptions, and replies to exceptions, such motions
shall conform to the further provisions of Sec. Sec. 502.222 and
502.227.
    (c) Upon motion made after the expiration of the scheduled date, the
filing may be permitted where reasonable grounds are found for the
failure to file.
    (d) Replies to such motions for enlargement of time shall conform to
the requirements of Sec. 502.74. [Rule 102.]

[64 FR 7808, Feb. 17, 1999]



Sec. 502.103  Reduction of time to file documents.

    Except as otherwise provided by law and for good cause, the
Commission, with respect to matters pending before it, and the presiding
officer, with respect to matters pending before him or her, may reduce
any time limit prescribed in the rules in this part. [Rule 103.]



Sec. 502.104  Postponement of hearing.

    Motions for postponement of any hearing date shall set forth the
reasons for the motion, and shall conform to the requirements of subpart
H of this part, except as to service if they show that parties have
received such actual notice of motion. Such motions will be granted only
if found necessary to prevent substantial delay, expense, detriment to
the public interest or undue prejudice to a party. Such motions must be
received, whether orally or in writing, at least five (5) days before
the scheduled date for hearing. Except for good cause shown, failure to
meet this requirement may result in summary rejection of the request.
Replies to such motions shall conform to the requirements of Sec.
502.74. [Rule 104.]

[49 FR 44369, Nov. 6, 1984, as amended at 64 FR 7809, Feb. 17, 1999]

[[Page 46]]



Sec. 502.105  Waiver of rules governing enlargements of time and
postponements of hearings.

    The Commission, the presiding officer, or the Chief Administrative
Law Judge may waive the requirements of Sec. Sec. 502.102 and 502.104
as to replies and may rule ex parte on such requests. [Rule 105.]

[64 FR 7809, Feb. 17, 1999]



           Subpart H_Form, Execution, and Service of Documents



Sec. Sec. 502.111-502.112  [Reserved]



Sec. 502.113  Service by the Commission.

    (a) Complaints filed pursuant to Sec. 502.62, (including any
accompanying discovery requests initiated pursuant to Sec. 502.201(b)),
amendments to complaints (unless otherwise authorized by the presiding
officer pursuant to Sec. 502.70(b)), and complainant's memoranda filed
in shortened procedure cases will be served by the Secretary of the
Commission.
    (b) The complainant may also effect proper service, in which case an
affidavit setting forth the method, time and place of service must be
filed with the Secretary within five days following service.
    (c) In addition to and accompanying the original of every document
filed with the Commission for service by the Commission, there shall be
a sufficient number of copies for use of the Commission (see Sec.
502.118) and for service on each party to the proceeding.
    (d) The presiding officer may dismiss a complaint that has not been
served within thirty (30) days after the complaint was filed. [Rule
113.]

[64 FR 7809, Feb. 17, 1999]



Sec. 502.114  Service by parties of pleadings and other documents.

    (a) Except as otherwise specifically provided by the rules in this
part, all pleadings, documents, and papers of every kind (except
requests for subpoenas, documents served by the Commission under Sec.
502.113, and documents submitted at a hearing or prehearing conference)
in proceedings before the Commission under the rules in this part shall,
when tendered to the Commission or the presiding officer for filing,
show that service has been made upon all parties to the proceeding and
upon any other persons required by the rules in this part to be served.
Such service shall be made by delivering one copy to each party; by hand
delivering in person; by mail, properly addressed with postage prepaid;
by courier; or by facsimile transmission if agreed by both parties prior
to service.
    (b) Service on all prior participants shall be shown when submitting
comments or replies beyond the initial round, or when submitting post-
decisional pleadings and replies such as petitions for reconsideration,
or for stay under rule 261 or to reopen under rule 230 in all general
notice proceedings, including those involving disposition of petitions
for rulemaking (rule 51), petitions for declaratory order (rule 68),
petitions general (rule 69), notices of proposed rulemaking (rule 52),
proceedings under section 19 of the Merchant Marine Act, 1920, (46
U.S.C. 42101) (part 550), and proceedings under section 13(b)(6) of the
Shipping Act of 1984 (46 U.S.C. 41108(d)) (part 560). A list of all
participants may be obtained from the Secretary of the Commission.

[49 FR 44369, Nov. 6, 1984, as amended at 55 FR 28400, July 11, 1990; 61
FR 66617, Dec. 18, 1996; 64 FR 7809, Feb. 17, 1999; 74 FR 50716, Oct. 1,
2009; 76 FR 10262, Feb. 24, 2011]



Sec. 502.115  Service on attorney or other representative.

    When a party has appeared by attorney or other representative,
service upon each attorney or other representative of record will be
deemed service upon the party, except that, if two or more attorneys of
record are partners or associates of the same firm, only one of them
need be served. [Rule 115.]



Sec. 502.116  Date of service.

    The date of service of documents served by the Commission shall be
the date shown in the service stamp thereon. The date of service of
documents served by parties shall be the date when matter served is
deposited in the United States mail, delivered to a courier, delivered
in person, or transmitted by facsimile, as the case may be. In computing
the time from such

[[Page 47]]

dates, the provisions of Sec. 502.101 shall apply. [Rule 116.]

[64 FR 7809, Feb. 17, 1999]



Sec. 502.117  Certificate of service.

    The original of every document filed with the Commission and
required to be served upon all parties to a proceeding shall be
accompanied by a certificate of service signed by the party making
service, stating that such service has been made upon each party to the
proceeding. Certificates of service may be in substantially the
following form:

                         Certificate of Service

    I hereby certify that I have this day served the foregoing document
upon [all parties of record or name of person(s)] by [mailing,
delivering to courier or delivering in person] a copy to each such
person.

    Dated at, ------ this ------ day of ------ 19--.

 (Signature)____________________________________________________________

 (For)__________________________________________________________________
[Rule 117.]



Sec. 502.118  Copies of documents for use of the Commission.

    (a)-(b)(3) [Reserved]
    (4) One copy of each exhibit shall be furnished to the official
reporter, to each of the parties present at the hearing and to the
Presiding Officer unless he or she directs otherwise. If submitted other
than at a hearing, the ``reporter's'' copy of an exhibit shall be
furnished to the administrative law judge for later inclusion in the
record if and when admitted.
    (5) Copies of prepared testimony submitted pursuant to Sec. 502.157
are governed by the requirements for exhibits in paragraph (b)(4) of
this section. [Rule 118.]

[49 FR 44369, Nov. 6, 1984, as amended at 55 FR 28400, July 11, 1990; 61
FR 66617, Dec. 18, 1996; 64 FR 7809, Feb. 17, 1999; 76 FR 10262, Feb.
24, 2011]



                           Subpart I_Subpoenas



Sec. 502.131  Requests; issuance.

    Subpoenas for the attendance of witnesses or the production of
evidence shall be issued upon request of any party, without notice to
any other party. Requests for subpoenas must be submitted in writing to
the Office of Administrative Law Judges. The party requesting the
subpoena shall tender an original and one copy of such subpoena. Where
it appears that the subpoena sought may be unreasonable, oppressive,
excessive in scope, or unduly burdensome, the administrative law judge
may in his or her discretion, as a condition precedent to the issuance
of the subpoena, require the person seeking the subpoena to show the
general relevance and reasonable scope of the testimony or other
evidence sought. [Rule 131.]

[76 FR 10262, Feb. 24, 2011]



Sec. 502.132  Motions to quash or modify.

    (a) Except when issued at a hearing, or in connection with the
taking of a deposition, within ten (10) days after service of a subpoena
for attendance of a witness or a subpoena for production of evidence,
but in any event at or before the time specified in the subpoena for
compliance therewith, the person to whom the subpoena is directed may,
by motion with notice to the party requesting the subpoena, petition the
presiding officer to quash or modify the subpoena.
    (b) If served at the hearing, the person to whom the subpoena is
directed may, by oral application at the hearing, within a reasonable
time fixed by the presiding officer, petition the presiding officer to
revoke or modify the subpoena.
    (c) If served in connection with the taking of a deposition pursuant
to Sec. 502.203 unless otherwise agreed to by all parties or otherwise
ordered by the presiding officer, the party who has requested the
subpoena shall arrange that it be served at least twenty (20) days prior
to the date specified in the subpoena for compliance therewith, the
person to whom the subpoena is directed may move to quash or modify the
subpoena within ten (10) days after service of the subpoena, and a reply
to such motion shall be served within five (5) days thereafter. [Rule
132.]

[49 FR 44369, Nov. 6, 1984, as amended at 76 FR 10262, Feb. 24, 2011]

[[Page 48]]



Sec. 502.133  Attendance and mileage fees.

    Witnesses summoned by subpoena to a hearing or deposition are
entitled to the same fees and mileage that are paid to witnesses in
courts of the United States. Fees and mileage shall be paid, upon
request, by the party at whose instance the witness appears. [Rule 133.]

[64 FR 7809, Feb. 17, 1999, as amended at 76 FR 10262, Feb. 24, 2011]



Sec. 502.134  Service of subpoenas.

    If service of a subpoena is made by a United States marshal, or his
or her deputy, or an employee of the Commission, such service shall be
evidenced by his or her return thereon. If made by any other person,
such person shall make affidavit thereto, describing the manner in which
service is made, and return such affidavit on or with the original
subpoena. In case of failure to make service, the reasons for the
failure shall be stated on the original subpoena. In making service, the
original subpoena shall be exhibited to the person served, shall be read
to him or her if he or she is unable to read, and a copy thereof shall
be left with him or her. The original subpoena, bearing or accompanied
by required return, affidavit, or statement, shall be returned without
delay to the Commission, or if so directed on the subpoena, to the
presiding officer before whom the person named in the subpoena is
required to appear. [Rule 134.]

[49 FR 44369, Nov. 6, 1984, as amended at 76 FR 10262, Feb. 24, 2011]



Sec. 502.135  Subpoena of Commission staff personnel, documents or things.

    (a) A subpoena for the attendance of Commission staff personnel or
for the production of documentary materials in the possession of the
Commission shall be served upon the Secretary. If the subpoena is
returnable at hearing, a motion to quash may be filed within five (5)
days of service and attendance shall not be required until the presiding
officer rules on said motion. If the subpoena is served in connection
with prehearing depositions, the procedure to be followed with respect
to motions to quash and replies thereto will correspond to the
procedures established with respect to motions and replies in Sec.
502.132(c).
    (b) The General Counsel shall designate an attorney to represent any
Commission staff personnel subpoenaed under this section. The attorney
so designated shall not thereafter participate in the Commission's
decision-making process concerning any issue in the proceeding.
    (c) Rulings of the presiding officer issued under Sec. 502.135(a)
shall become final rulings of the Commission unless an appeal is filed
within ten (10) days after date of issuance of such rulings or unless
the Commission, on its own motion, reverses, modifies, or stays such
rulings within twenty (20) days of their issuance. Replies to appeals
may be filed within ten (10) days. No ruling of the presiding officer
shall be effective until twenty (20) days from date of issuance unless
the Commission otherwise directs. [Rule 135.]

[49 FR 44369, Nov. 6, 1984, as amended at 76 FR 10262, Feb. 24, 2011]



Sec. 502.136  Enforcement.

    In the event of failure to comply with any subpoena or order issued
in connection therewith, the Commission may seek enforcement as provided
in Sec. 502.210(b). [Rule 136.]

[49 FR 44369, Nov. 6, 1984, as amended at 76 FR 10262, Feb. 24, 2011]



            Subpart J_Hearings; Presiding Officers; Evidence



Sec. 502.141  Hearings not required by statute.

    The Commission may call informal public hearings, not required by
statute, to be conducted under the rules in this part where applicable,
for the purpose of rulemaking or to obtain information necessary or
helpful in the determination of its policies or the carrying out of its
duties, and may require the attendance of witnesses and the production
of evidence to the extent permitted by law. [Rule 141.]

[[Page 49]]



Sec. 502.142  Hearings required by statute.

    In complaint and answer cases, investigations on the Commission's
own motion, and in other rulemaking and adjudication proceedings in
which a hearing is required by statute, formal hearings shall be
conducted pursuant to 5 U.S.C. 554. [Rule 142.]



Sec. 502.143  Notice of nature of hearing, jurisdiction and issues.

    Persons entitled to notice of hearings, except those notified by
complaint served under Sec. 502.113, will be duly and timely informed
of (a) the nature of the proceeding, (b) the legal authority and
jurisdiction under which the proceeding is conducted, and (c) the terms,
substance, and issues involved, or the matters of fact and law asserted,
as the case may be. Such notice shall be published in the Federal
Register unless all persons subject thereto are named and either are
personally served or otherwise have actual notice thereof in accordance
with law. [Rule 143.]

[49 FR 44369, Nov. 6, 1984; 49 FR 47394, Dec. 4, 1984, as amended at 64
FR 7810, Feb. 17, 1999]



Sec. 502.144  Notice of time and place of hearing; postponement of hearing.

    (a) Notice of hearing will designate the time and place thereof, the
person or persons who will preside, and the kind of decision to be
issued. The date or place of a hearing for which notice has been issued
may be changed when warranted. Reasonable notice will be given to the
parties or their representatives of the time and place of the change
thereof, due regard being had for the public interest and the
convenience and necessity of the parties or their representatives.
Notice may be served by mail or telegraph. Notice may be served by mail,
facsimile transmission, or electronic mail.
    (b) Motions for postponement of any hearing date shall be filed in
accordance with Sec. 502.104. [Rule 144.]

[49 FR 44369, Nov. 6, 1984, as amended at 64 FR 7810, Feb. 17, 1999; 64
FR 23551, May 3, 1999]



Sec. Sec. 502.145-502.149  [Reserved]



Sec. 502.150  Further evidence required by presiding officer during
hearing.

    At any time during the hearing, the presiding officer may call for
further evidence upon any issue, and require such evidence where
available to be presented by the party or parties concerned, either at
the hearing or adjournment thereof. [Rule 150.]



Sec. 502.151  Exceptions to rulings of presiding officer unnecessary.

    Formal exceptions to rulings of the presiding officer are
unnecessary. It is sufficient that a party, at the time the ruling of
the presiding officer is made or sought, makes known the action which it
desires the presiding officer to take or its objection to an action
taken, and its grounds therefor. [Rule 151.]



Sec. 502.152  Offer of proof.

    An offer of proof made in connection with an objection taken to any
ruling of the presiding officer rejecting or excluding proffered oral
testimony shall consist of a statement of the substance of the evidence
which counsel contends would be adduced by such testimony; and, if the
excluded evidence consists of evidence in documentary or written form or
of reference to documents or records, a copy of such evidence shall be
marked for identification and shall constitute the offer of proof. [Rule
152.]



Sec. 502.153  Appeal from ruling of presiding officer other than orders
of dismissal in whole or in part.

    (a) Rulings of the presiding officer may not be appealed prior to or
during the course of the hearing, or subsequent thereto, if the
proceeding is still before him or her, except where the presiding
officer shall find it necessary to allow an appeal to the Commission to
prevent substantial delay, expense, or detriment to the public interest,
or undue prejudice to a party.
    (b) Any party seeking to appeal must file a motion for leave to
appeal no later than fifteen (15) days after written service or oral
notice of the ruling in question, unless the presiding officer, for good
cause shown, enlarges or shortens the time. Any such motion

[[Page 50]]

shall contain not only the grounds for leave to appeal but the appeal
itself.
    (c) Replies to the motion for leave to appeal and the appeal may be
filed within fifteen (15) days after date of service thereof, unless the
presiding officer, for good cause shown, enlarges or shortens the time.
If the motion is granted, the presiding officer shall certify the appeal
to the Commission.
    (d) Unless otherwise provided, the certification of the appeal shall
not operate as a stay of the proceeding before the presiding officer.
    (e) The provisions of Sec. 502.10 shall not apply to this section.
[Rule 153.]



Sec. 502.154  Rights of parties as to presentation of evidence.

    Every party shall have the right to present its case or defense by
oral or documentary evidence, to submit rebuttal evidence, and to
conduct such cross-examination as may be required for a full and true
disclosure of the facts. The presiding officer shall, however, have the
right and duty to limit the introduction of evidence and the examination
and cross-examination of witnesses when in his or her judgment, such
evidence or examination is cumulative or is productive of undue delay in
the conduct of the hearing. [Rule 154.]



Sec. 502.155  Burden of proof.

    In all cases, as prescribed by the Administrative Procedure Act, 5
U.S.C. 556(d), the burden of proof shall be on the proponent of the rule
or order. [Rule 155.]

[61 FR 66617, Dec. 18, 1996]



Sec. 502.156  Evidence admissible.

    In any proceeding under the rules in this part, all evidence which
is relevant, material, reliable and probative, and not unduly
repetitious or cumulative, shall be admissible. All other evidence shall
be excluded. Unless inconsistent with the requirements of the
Administrative Procedure Act and these Rules, the Federal Rules of
Evidence, Public Law 93-595, effective July 1, 1975, will also be
applicable. [Rule 156.]



Sec. 502.157  Written evidence.

    (a) The use of written statements in lieu of oral testimony shall be
resorted to where the presiding officer in his or her discretion rules
that such procedure is appropriate. The statements shall be numbered in
paragraphs, and each party in its rebuttal shall be required to list the
paragraphs to which it objects, giving an indication of its reasons for
objecting. Statistical exhibits shall contain a short commentary
explaining the conclusions which the offeror draws from the data. Any
portion of such testimony which is argumentative shall be excluded.
Where written statements are used, copies of the statement and any
rebuttal statement shall be furnished to all parties, as shall copies of
exhibits. The presiding officer shall fix respective dates for the
exchange of such written rebuttal statements and exhibits in advance of
the hearing to enable study by the parties of such testimony.
Thereafter, the parties shall endeavor to stipulate as many of the facts
set forth in the written testimony as they may be able to agree upon.
Oral examination of witnesses shall thereafter be confined to facts
which remain in controversy, and a reading of the written statements at
the hearing will be dispensed with unless the presiding officer
otherwise directs.
    (b) Where a formal hearing is held in a rulemaking proceeding,
interested persons will be afforded an opportunity to participate
through submission of relevant, material, reliable and probative written
evidence properly verified, except that such evidence submitted by
persons not present at the hearing will not be made a part of the record
if objected to by any party on the ground that the person who submits
the evidence is not present for cross-examination. [Rule 157.]

[49 FR 44369, Nov. 6, 1984; 49 FR 47394, Dec. 4, 1984]



Sec. 502.158  Documents containing matter not material.

    Where written matter offered in evidence is embraced in a document
containing other matter which is not intended to be offered in evidence,
the offering party shall present the original

[[Page 51]]

document to all parties at the hearing for their inspection, and shall
offer a true copy of the matter which is to be introduced, unless the
presiding officer determines that the matter is short enough to be read
into the record. Opposing parties shall be afforded an opportunity to
introduce in evidence, in like manner, other portions of the original
document which are material and relevant. [Rule 158.]



Sec. 502.159  [Reserved]



Sec. 502.160  Records in other proceedings.

    When any portion of the record before the Commission in any
proceeding other than the one being heard is offered in evidence, a true
copy of such portion shall be presented for the record in the form of an
exhibit unless the parties represented at the hearing stipulate upon the
record that such portion may be incorporated by reference. [Rule 160.]



Sec. 502.161  Commission's files.

    Where any matter contained in a tariff, report, or other document on
file with the Commission is offered in evidence, such document need not
be produced or marked for identification, but the matter so offered
shall be specified in its particularity, giving tariff number and page
number of tariff, report, or document in such manner as to be readily
identified, and may be received in evidence by reference, subject to
comparison with the original document on file. [Rule 161.]



Sec. 502.162  Stipulations.

    The parties may, by stipulation, agree upon any facts involved in
the proceeding and include them in the record with the consent of the
presiding officer. It is desirable that facts be thus agreed upon
whenever practicable. Written stipulations shall be subscribed and shall
be served upon all parties of record unless presented at the hearing or
prehearing conference. A stipulation may be proposed even if not
subscribed by all parties without prejudice to any nonsubscribing
party's right to cross-examine and offer rebuttal evidence. [Rule 162.]



Sec. 502.163  Receipt of documents after hearing.

    Documents or other writings to be submitted for the record after the
close of the hearing will not be received in evidence except upon
permission of the presiding officer. Such documents or other writings
when submitted shall be accompanied by a statement that copies have been
served upon all parties, and shall be received, except for good cause
shown, not later than ten (10) days after the close of the hearing and
not less than (10) days prior to the date set for filing briefs. Exhibit
numbers will not be assigned until such documents are actually received
and incorporated in the record. [Rule 163.]



Sec. 502.164  Oral argument at hearings.

    Oral argument at the close of testimony may be ordered by the
presiding officer in his or her discretion. [Rule 164.]



Sec. 502.165  Official transcript.

    (a) The Commission will designate the official reporter for all
hearings. The official transcript of testimony taken, together with any
exhibits and any briefs or memoranda of law filed therewith, shall be
filed with the Commission. Transcripts of testimony will be available in
any proceeding under the rules in this part, and will be supplied by the
official reporter to the parties and to the public, except when required
for good cause to be held confidential, at rates not to exceed the
maximum rates fixed by contract between the Commission and the reporter.
    (b)(1) Section 11 of the Federal Advisory Committee Act provides
that, except where prohibited by contractual agreements entered into
prior to the effective date of this Act, agencies and advisory
committees shall make available to any person, at actual cost of
duplication, copies of transcripts of agency proceedings or advisory
committee meetings. As used in this section, ``agency proceeding'' means
any proceeding as defined in 5 U.S.C. 551(12).
    (2) The Office of Management and Budget has interpreted this
provision

[[Page 52]]

as being applicable to proceedings before the Commission and its
administrative law judges. (Guidelines, 38 FR 12851, May 16, 1973.)
    (3) The Commission interprets section 11 and the OMB guidelines as
follows:
    (i) Future contracts between the Commission and the successfully
bidding recording firm will provide that any party to a Commission
proceeding or other interested person (hereinafter included within the
meaning of ``party'') shall be able to obtain a copy of the transcript
of the proceeding in which it is involved at the actual cost of
duplication of the original transcript, which includes a reasonable
amount for overhead and profit, except where it requests delivery of
copies in a shorter period of time than is required for delivery by the
Commission.
    (ii) The Commission will bear the full expense of transcribing all
of its administrative proceedings where it requests regular delivery
service (as set forth in the Contract). In cases where the Commission
requests daily delivery of transcript copies (as set forth in the
Contract), any party may receive daily delivery service at the actual
cost of duplication.
    (iii)(A) Where the Commission does not request daily copy service,
any party requesting such service must bear the incremental cost of
transcription above the regular copy transcription cost borne by the
Commission, in addition to the actual cost of duplication, except that
where the party applies for and properly shows that the furnishing of
daily copy is indispensable to the protection of a vital right or
interest in achieving a fair hearing, the presiding officer in the
proceeding in which the application is made shall order that daily copy
service be provided the applying party at the actual cost of
duplication, with the full cost of transcription being borne by the
Commission.
    (B) In the event a request for daily copy is denied by the presiding
officer, the requesting party, in order to obtain daily copy, must pay
the cost of transcription over and above that borne by the Commission,
i.e., the incremental cost between that paid by the Commission when it
requests regular copy and when it requests daily copy.
    (C) The decision of the presiding officer in this situation is
interpreted as falling within the scope of the functions and powers of
the presiding officer, as defined in Sec. 502.147(a). [Rule 165.]



Sec. 502.166  Corrections of transcript.

    Motions made at the hearing to correct the record will be acted upon
by the presiding officer. Motions made after the hearing to correct the
record shall be filed with the presiding officer within twenty-five (25)
days after the last day of hearing or any session thereof, unless
otherwise directed by the presiding officer, and shall be served on all
parties. Such motions may be in the form of a letter. If no objections
are received within ten (10) days after date of service, the transcript
will, upon approval of the presiding officer, be changed to reflect such
corrections. If objections are received, the motion will be acted upon
with due consideration of the stenographic record of the hearing. [Rule
166.]



Sec. 502.167  Objection to public disclosure of information.

    Upon objection to public disclosure of any information sought to be
elicited during a hearing, the presiding officer may in his or her
discretion order that the witness shall disclose such information only
in the presence of those designated and sworn to secrecy by the
presiding officer. The transcript of testimony shall be held
confidential. Copies of said transcript need be served only upon the
parties to whose representatives the information has been disclosed and
upon such other parties as the presiding officer may designate. This
rule is subject to the proviso that any information given pursuant
thereto, may be used by the presiding officer or the Commission if
deemed necessary to a correct decision in the proceeding. [Rule 167.]

[55 FR 28400, July 11, 1990]



Sec. 502.168  Copies of data or evidence.

    Every person compelled to submit data or evidence shall be entitled
to retain or, on payment of proper costs,

[[Page 53]]

procure a copy of transcript thereof. [Rule 168.]



Sec. 502.169  Record of decision.

    The transcript of testimony and exhibits, together with all papers
and requests filed in the proceeding, shall constitute the exclusive
record for decision. [Rule 169.]



                      Subpart K_Shortened Procedure



Sec. 502.181  Selection of cases for shortened procedure; consent
required.

    By consent of the parties and with approval of the Commission or
presiding officer, a complaint proceeding may be conducted under
shortened procedure without oral hearing, except that a hearing may be
ordered by the presiding officer at the request of any party or in his
or her discretion. [Rule 181.]



Sec. 502.182  Complaint and memorandum of facts and arguments and filing
fee.

    A complaint filed with the Commission under this subpart shall have
attached a memorandum of the facts, subscribed and verified according to
Sec. 502.112, and of arguments separately stated, upon which it relies.
The original of each complaint with memorandum shall be accompanied by
copies for the Commission's use. The complaint shall be accompanied by
remittance of a $221 filing fee. [Rule 182.]

[49 FR 44369, Nov. 6, 1984, as amended at 59 FR 59170, Nov. 16, 1994; 63
FR 50535, Sept. 22, 1998; 67 FR 39859, June 11, 2002; 70 FR 10329, Mar.
3, 2005]



Sec. 502.183  Respondent's answering memorandum.

    Within twenty-five (25) days after date of service of the complaint,
unless a shorter period is fixed, each respondent shall, if it consents
to the shortened procedure provided in this subpart, serve upon
complainant pursuant to subpart H of this part an answering memorandum
of the facts, subscribed and verified according to Sec. 502.112, and of
arguments, separately stated, upon which it relies. The original of the
answering memorandum shall be accompanied by a certificate of service as
provided in Sec. 502.114 and shall be accompanied by copies for the
Commission's use. If the respondent does not consent to the proceeding
being conducted under the shortened procedure provided in this subpart,
the matter will be governed by subpart E of this part and the respondent
shall file an answer under Sec. 502.64. [Rule 183.]



Sec. 502.184  Complainant's memorandum in reply.

    Within fifteen (15) days after the date of service of the answering
memorandum prescribed in Sec. 502.183, unless a shorter period is
fixed, each complainant may file a memorandum in reply, subscribed and
verified according to Sec. 502.112, served as provided in Sec.
502.114, and accompanied by copies for the Commission's use. This will
close the record for decision unless the presiding officer determines
that the record is insufficient and orders the submission of additional
evidentiary materials. [Rule 184.]



Sec. 502.185  Service of memoranda upon and by interveners.

    Service of all memoranda shall be made upon any interveners.
Interveners shall file and serve memoranda in conformity with the
provisions relating to the parties on whose behalf they intervene. [Rule
185.]



Sec. 502.186  Contents of memoranda.

    The memorandum should contain concise arguments and fact, the same
as would be offered if a formal hearing were held and briefs filed. If
reparation is sought, paid freight bills should accompany complainant's
original memorandum. [Rule 186.]



Sec. 502.187  Procedure after filing of memoranda.

    An initial, recommended, or tentative decision will be served upon
the parties in the same manner as is provided under Sec. 502.225.
Thereafter, the procedure will be the same as that in respect to
proceedings after formal hearing. [Rule 187.]



                   Subpart L_Disclosures and Discovery

    Source: 77 FR 61529, Oct. 10, 2012, unless otherwise noted.

[[Page 54]]



Sec. 502.201  Duty to disclose; general provisions governing discovery.

    (a) Applicability. Unless otherwise stated in subpart S, T, or any
other subpart of this part, the procedures described in this subpart are
available in all adjudicatory proceedings under the Shipping Act of
1984.
    (b) Initial disclosures. Except as otherwise stipulated or ordered
by the Commission or presiding officer, and except as provided in this
subpart related to disclosure of expert testimony, all parties must,
within 7 days of service of a respondent's answer to the complaint or
Order of Investigation and Hearing and without awaiting a discovery
request, provide to each other:
    (1) The name and, if known, the address and telephone number of each
individual likely to have discoverable information that the disclosing
party may use to support its claims or defenses, unless the use would be
solely for impeachment;
    (2) A copy, or a description by category and location, of all
documents, electronically stored information, and tangible things that
the disclosing party has in its possession, custody, or control and may
use to support its claims or defenses, unless the use would be solely
for impeachment;
    (3) An estimate of any damages claimed by the disclosing party who
must also make available for inspection and copying the documents or
other evidentiary material, unless privileged or protected from
disclosure, on which the estimate is based, including materials bearing
on the nature and extent of injuries suffered.
    (c) For parties served or joined later. A party that is first served
or otherwise joined after the answer is made must make the initial
disclosures within 5 days after an order of intervention is granted,
unless a different time is set by stipulation or order of presiding
officer. All parties must also produce to the late-joined party any
initial disclosures previously made.
    (d) Disclosure of expert testimony. (1) In general. A party must
disclose to the other parties the identity of any witness it may use in
the proceeding to present evidence as an expert.
    (2) Witnesses who are required to provide a written report. Unless
otherwise stipulated or ordered by the presiding officer, if the witness
is one retained or specially employed to provide expert testimony in the
proceeding or one whose duties as the party's employee regularly involve
giving expert testimony, the disclosure must be accompanied by a written
report, prepared and signed by the witness. The report must contain:
    (i) A complete statement of all opinions the witness will express
and the basis and reasons for them;
    (ii) The facts or data considered by the witness in forming them;
    (iii) Any exhibits that will be used to summarize or support them;
    (iv) The witness's qualifications, including a list of all
publications authored in the previous 10 years;
    (v) A list of all other proceedings or cases in which, during the
previous 4 years, the witness testified as an expert in a trial, an
administrative proceeding, or by deposition; and
    (vi) A statement of the compensation to be paid for the study and
testimony in the proceeding.
    (3) Witnesses who are not required to provide a written report.
Unless otherwise stipulated or ordered by the presiding officer, if the
witness is not required to provide a written report under paragraph
(d)(2) of this section, the disclosure must state:
    (i) The subject matter on which the witness is expected to present
evidence as an expert; and
    (ii) Summary of the facts and opinions to which the witness is
expected to testify.
    (4) Time to disclose expert testimony. The time for disclosure of
expert testimony must be addressed by the parties when they confer as
provided in paragraph (h) of this section and, if applicable, must be
included in the proposed discovery schedule submitted to the presiding
officer.
    (e) Scope of discovery and limits. (1) Unless otherwise limited by
the presiding officer, or as otherwise provided in this subpart, the
scope of discovery is as follows: Parties may obtain discovery regarding
any nonprivileged matter that is relevant to any party's claim or
defense--including the existence, description, nature, custody,
condition, and location of any documents

[[Page 55]]

or other tangible things and the identity and location of persons who
know of any discoverable matter. For good cause, the presiding officer
may order discovery of any matter relevant to the subject matter
involved in the action. Relevant information need not be admissible at
hearing if the discovery appears reasonably calculated to lead to the
discovery of admissible evidence.
    (2) Limitations on frequency and extent. (i) Specific limitations on
electronically stored information. A party need not provide discovery of
electronically stored information from sources that the party identifies
as not reasonably accessible because of undue burden or cost. On motion
to compel discovery or for a protective order, the party from whom
discovery is sought must show that the information is not reasonably
accessible because of undue burden or cost. If that showing is made, the
presiding officer may nonetheless order discovery from such sources if
the requesting party shows good cause. The presiding officer may specify
conditions for the discovery.
    (ii) When required. On motion or on its own, the presiding officer
may limit the frequency or extent of discovery otherwise allowed by
these rules if the presiding officer determines that:
    (A) The discovery sought is unreasonably cumulative or duplicative,
or can be obtained from some other source that is more convenient, less
burdensome, or less expensive;
    (B) The party seeking discovery has had ample opportunity to obtain
the information by discovery in the action; or
    (C) The burden or expense of the proposed discovery outweighs its
likely benefit, considering the needs of the proceeding, the amount in
controversy, the parties' resources, the importance of the issues at
stake in the action, and the importance of the discovery in resolving
the issues.
    (f) Scope of discovery and limits--experts. (1) A party may depose
any person who has been identified as an expert whose opinions may be
presented in a proceeding. If a report is required of the witness, the
deposition may be conducted only after the report is provided.
    (2) Drafts of any report or disclosure required by these rules are
not discoverable regardless of the form in which the draft is recorded.
    (3) Communications between the party's attorney and any expert
witness required to provide a report are not discoverable regardless of
the form of communications, except to the extent that the communications
relate to compensation for the expert's study or testimony; identify
facts or data that the party's attorney provided and that the expert
considered in forming the opinions to be expressed; or identify
assumptions that the party's attorney provided and that the expert
relied on in forming the opinions to be expressed.
    (4) A party may not by interrogatories or deposition discover facts
known or opinions held by an expert who has been retained or specially
employed by another party in anticipation of litigation or to prepare
for a proceeding and who is not expected to be presented as a witness;
provided, however, that the presiding officer may permit such discovery
and may impose such conditions as deemed appropriate upon a showing of
exceptional circumstances under which it is impracticable for the party
to obtain facts or opinions on the same subject by other means.
    (g) Completion of discovery. Discovery must be completed within 150
days of the service of a respondent's answer to the complaint or Order
of Investigation and Hearing.
    (h) Duty of the parties to confer. In all proceedings in which the
procedures of this subpart are used, it is the duty of the parties to
confer within 15 days after receipt of a respondent's answer to a
complaint or Order of Investigation and Hearing in order to: establish a
schedule for the completion of discovery, including disclosures and
discovery related to experts, within the 150-day period prescribed in
paragraph (g) of this section; resolve to the fullest extent possible
disputes relating to discovery matters; and expedite, limit, or
eliminate discovery by use of admissions, stipulations and other
techniques. The parties must submit the schedule to the presiding
officer not later than 5 days after the conference.

[[Page 56]]

Nothing in this rule should be construed to preclude the parties from
conducting discovery and conferring at an earlier date.
    (i)(1) Conferences by order of the presiding officer. The presiding
officer may at any time order the parties or their attorneys to
participate in a conference at which the presiding officer may direct
the proper use of the procedures of this subpart or make such orders as
may be necessary to resolve disputes with respect to discovery and to
prevent delay or undue inconvenience.
    (2) Resolution of disputes. After making every reasonable effort to
resolve discovery disputes, a party may request a conference or rulings
from the presiding officer on such disputes. If necessary to prevent
undue delay or otherwise facilitate conclusion of the proceeding, the
presiding officer may order a hearing to commence before the completion
of discovery.
    (j) Protective orders. (1) In general. A party or any person from
whom discovery is sought may move for a protective order. The motion
must include a certification that the movant has in good faith conferred
or attempted to confer with other affected parties in an effort to
resolve the dispute without Commission or presiding officer action. The
Commission or presiding officer may, for good cause, issue an order to
protect a party or person from annoyance, embarrassment, oppression, or
undue burden or expense, including one or more of the following:
    (i) Forbidding the disclosure or discovery;
    (ii) Specifying terms, including time and place, for the disclosure
or discovery;
    (iii) Prescribing a discovery method other than the one selected by
the party seeking discovery;
    (iv) Forbidding inquiry into certain matters, or limiting the scope
of disclosure or discovery to certain matters;
    (v) Designating the persons who may be present while the discovery
is conducted;
    (vi) Requiring that a deposition be sealed and opened only on
Commission or presiding officer order;
    (vii) Requiring that a trade secret or other confidential research,
development, or commercial information not be disclosed or be disclosed
only in a specified way; or
    (viii) Requiring that the parties simultaneously file specified
documents or information in sealed envelopes, to be opened as the
Commission or presiding officer directs.
    (2) Ordering discovery. If a motion for a protective order is denied
in whole or in part, the Commission or presiding officer may, on just
terms, order that any party or person provide or permit discovery.
    (k) Supplementing responses. A party who has made a disclosure under
paragraph (b) or (d) of this section, or who has responded to an
interrogatory, request for production, or request for admission, must
supplement or correct its disclosure or response:
    (1) In a timely manner if the party learns that in some material
respect the disclosure or response is incomplete or incorrect, and if
the additional or corrective information has not otherwise been made
known to the other parties during the discovery process or in written
communication; or
    (2) As ordered by the presiding officer.
    (l) Stipulations. Unless the presiding officer orders otherwise, the
parties may stipulate that other procedures governing or limiting
discovery be modified, but a stipulation extending the time for any form
of discovery must have presiding officer's approval if it would
interfere with the time set for completing discovery, for adjudicating a
motion, or for hearing. [Rule 201.]

[49 FR 44369, Nov. 6, 1984, as amended at 78 FR 45071, July 26, 2013]



Sec. 502.202  Persons before whom depositions may be taken.

    (a) Within the United States. (1) In general. Within the United
States or a territory or insular possession subject to United States
jurisdiction, a deposition must be taken before:
    (i) An officer authorized to administer oaths either by federal law
or by the law in the place of examination; or
    (ii) A person appointed by the Commission or the presiding officer
to administer oaths and take testimony.

[[Page 57]]

    (b) In a foreign country. (1) In general. A deposition may be taken
in a foreign country:
    (i) Under an applicable treaty or convention;
    (ii) under a letter of request, whether or not captioned a ``letter
rogatory'';
    (iii) On notice, before a person authorized to administer oaths
either by federal law or by the law in the place of examination; or
    (iv) Before a person authorized by the Commission or the presiding
officer to administer any necessary oath and take testimony.
    (2) Issuing a letter of request or an authorization. A letter of
request, an authorization, or both may be issued:
    (i) On appropriate terms after an application and notice of it; and
    (ii) Without a showing that taking the deposition in another manner
is impracticable or inconvenient.
    (3) Form of a request, notice, or authorization. When a letter of
request or any other device is used according to a treaty or convention,
it must be captioned in the form prescribed by that treaty or
convention. A letter of request may be addressed ``To the Appropriate
Authority in [name of country].'' A deposition notice or an
authorization must designate by name or descriptive title the person
before whom the deposition is to be taken.
    (4) Letter of request--admitting evidence. Evidence obtained in
response to a letter of request need not be excluded merely because it
is not a verbatim transcript, because the testimony was not taken under
oath, or because of any similar departure from the requirements for
depositions taken within the United States.
    (c) Disqualification. A deposition must not be taken before a person
who is any party's relative, employee, or attorney; who is related to or
employed by any party's attorney; or who is financially interested in
the action. [Rule 202.]



Sec. 502.203  Depositions by oral examination.

    (a) When a deposition may be taken. (1) Without leave. A party may,
by oral questions, depose any person, including a party, without leave
of the presiding officer except as provided in Sec. 502.203(a)(2). The
deponent's attendance may be compelled by subpoena under subpart I of
this part.
    (2) With leave. A party must obtain leave of the presiding officer,
if the parties have not stipulated to the deposition and:
    (i) The deposition would result in more than 20 depositions being
taken under this rule or Sec. 502.204 by any party; or
    (ii) The deponent has already been deposed in the case.
    (b) Notice of the deposition; other formal requirements. (1) Notice
in general. A party who wants to depose a person by oral questions must
give reasonable written notice to every other party. The notice must
state the time and place of the deposition and, if known, the deponent's
name and address. If the name is unknown, the notice must provide a
general description sufficient to identify the person or the particular
class or group to which the person belongs.
    (2) Producing documents. If a subpoena duces tecum is to be served
on the deponent, the materials designated for production, as set out in
the subpoena, must be listed in the notice or in an attachment. The
notice to a party deponent may be accompanied by a request under Sec.
502.206 to produce documents and tangible things at the deposition.
    (3) Method of recording. (i) Method stated in the notice. The party
who notices the deposition must state in the notice the method for
recording the testimony. Unless the presiding officer orders otherwise,
testimony may be recorded by audio, audiovisual, or stenographic means.
The noticing party bears the recording costs. Any party may arrange to
transcribe a deposition.
    (ii) Additional method. With prior notice to the deponent and other
parties, any party may designate another method for recording the
testimony in addition to that specified in the original notice. That
party bears the expense of the additional record or transcript unless
the presiding officer orders otherwise.
    (4) By remote means. The parties may stipulate, or the presiding
officer may on motion order, that a deposition be taken by telephone or
other remote means.

[[Page 58]]

    (5) Officer's duties. (i) Before the deposition. Unless the parties
stipulate otherwise, a deposition must be conducted before an officer
appointed or designated under Sec. 502.202. The officer must begin the
deposition with an on-the-record statement that includes:
    (A) The officer's name and business address;
    (B) The date, time, and place of the deposition;
    (C) The deponent's name;
    (D) The officer's administration of the oath or affirmation to the
deponent; and
    (E) The identity of all persons present.
    (ii) Conducting the deposition; avoiding distortion. If the
deposition is recorded nonstenographically, the officer must repeat the
items in Sec. 502.203(b)(5)(i)(A) through (C) at the beginning of each
unit of the recording medium. The deponent's and attorneys' appearance
or demeanor must not be distorted through recording techniques.
    (iii) After the deposition. At the end of a deposition, the officer
must state on the record that the deposition is complete and must set
out any stipulations made by the attorneys about custody of the
transcript or recording and of the exhibits, or about any other
pertinent matters.
    (6) Notice or subpoena directed to an organization. In its notice or
subpoena, a party may name as the deponent a public or private
corporation, a partnership, an association, a governmental agency, or
other entity and must describe with reasonable particularity the matters
for examination. The named organization must then designate one or more
officers, directors, or managing representatives, or designate other
persons who consent to testify on its behalf; and it may set out the
matters on which each person designated will testify. A subpoena must
advise a nonparty organization of its duty to make this designation. The
persons designated must testify about information known or reasonably
available to the organization. This paragraph (6) does not preclude a
deposition by any other procedure allowed by these rules.
    (c) Examination and cross-examination; record of the examination;
objections; written questions. (1) Examination and cross-examination.
The examination and cross-examination of a deponent proceed as they
would at hearing under the provisions of Sec. 502.154. After putting
the deponent under oath or affirmation, the officer must record the
testimony by the method designated under Sec. 502.203(b)(3). The
testimony must be recorded by the officer personally or by a person
acting in the presence and under the direction of the officer.
    (2) Objections. An objection at the time of the examination, whether
to evidence, to a party's conduct, to the officer's qualifications, to
the manner of taking the deposition, or to any other aspect of the
deposition, must be noted on the record, but the examination still
proceeds; the testimony is taken subject to any objection. An objection
must be stated concisely in a nonargumentative and nonsuggestive manner.
A person may instruct a deponent not to answer only when necessary to
preserve a privilege, to enforce a limitation ordered by the presiding
officer, or to present a motion under Sec. 502.203(d)(2).
    (3) Participating through written questions. Instead of
participating in the oral examination, a party may serve written
questions in a sealed envelope on the party noticing the deposition, who
must deliver them to the officer. The officer must ask the deponent
those questions and record the answers verbatim.
    (d) Duration; sanction; motion to terminate or limit. (1) Duration.
Unless otherwise stipulated or ordered by the presiding officer, a
deposition is limited to 1 day of 7 hours. The presiding officer must
allow additional time consistent with Sec. 502.201(e)(2) if needed to
fairly examine the deponent or if the deponent, another person, or any
other circumstance impedes or delays the examination.
    (2) Motion to terminate or limit. (i) Grounds. At any time during a
deposition, the deponent or a party may move to terminate or limit it on
the ground that it is being conducted in bad faith or in a manner that
unreasonably annoys, embarrasses, or oppresses the deponent or party.
The motion may be filed with the presiding officer. If the objecting
deponent or

[[Page 59]]

party so demands, the deposition must be suspended for the time
necessary to obtain an order.
    (ii) Order. The presiding officer may order that the deposition be
terminated or may limit its scope and manner as provided in Sec.
502.201(j). If terminated, the deposition may be resumed only by order
of the Commission or presiding officer.
    (e) Review by the witness; changes. (1) Review; statement of
changes. On request by the deponent or a party before the deposition is
completed, the deponent must be allowed 15 days after being notified by
the officer that the transcript or recording is available in which:
    (i) To review the transcript or recording; and
    (ii) If there are changes in form or substance, to sign a statement
listing the changes and the reasons for making them.
    (2) Changes indicated in the officer's certificate. The officer must
note in the certificate prescribed by Sec. 502.203(f)(1) whether a
review was requested and, if so, must attach any changes the deponent
makes during the 15-day period.
    (f) Certification and delivery; exhibits; copies of the transcript
or recording. (1) Certification and delivery. The officer must certify
in writing that the witness was duly sworn and that the deposition,
transcript or recording accurately records the witness's testimony. The
certificate must accompany the record of the deposition. Unless the
presiding officer orders otherwise, the officer must seal the deposition
in an envelope or package bearing the title of the action and marked
``Deposition of [witness's name]'' and must promptly send it to the
attorney who arranged for the transcript or recording. The attorney must
store it under conditions that will protect it against loss,
destruction, tampering, or deterioration.
    (2) Documents and tangible things. (i) Originals and copies.
Documents and tangible things produced for inspection during a
deposition must, on a party's request, be marked for identification and
attached to the deposition. Any party may inspect and copy them. But if
the person who produced them wants to keep the originals, the person
may:
    (A) Offer copies to be marked, attached to the deposition, and then
used as originals, after giving all parties a fair opportunity to verify
the copies by comparing them with the originals; or
    (B) Give all parties a fair opportunity to inspect and copy the
originals after they are marked, in which event the originals may be
used as if attached to the deposition.
    (ii) Order regarding the originals. Any party may move for an order
that the originals be attached to the deposition pending final
disposition of the case.
    (3) Copies of the transcript or recording. Unless otherwise
stipulated or ordered by the presiding officer, the officer must retain
the stenographic notes of a deposition taken stenographically or a copy
of the recording of a deposition taken by another method. When paid
reasonable charges, the officer must furnish a copy of the transcript or
recording to any party or the deponent. [Rule 203.]



Sec. 502.204  Depositions by written questions.

    (a) When a deposition may be taken. (1) Without leave. A party may,
by written questions, depose any person, including a party, without
leave of the presiding officer except as provided in paragraph (a)(2) of
this section. The deponent's attendance may be compelled by subpoena
under subpart I of this part.
    (2) With leave. A party must obtain leave of the presiding officer,
if the parties have not stipulated to the deposition and:
    (i) The deposition would result in more than 20 depositions being
taken under this rule or Sec. 502.203 by any party;
    (ii) The deponent has already been deposed in the case.
    (3) Service; required notice. A party who wants to depose a person
by written questions must serve them on every other party, with a notice
stating, if known, the deponent's name and address. If the name is
unknown, the notice must provide a general description sufficient to
identify the person or the particular class or group to which the person
belongs. The notice must also state the name or descriptive title and
the address of the officer before whom the deposition will be taken.
    (4) Questions directed to an organization. A public or private
corporation, a

[[Page 60]]

partnership, an association, or a governmental agency may be deposed by
written questions in accordance with Sec. 502.203(b)(6).
    (5) Questions from other parties. Any questions to the deponent from
other parties must be served on all parties as follows: Cross-questions,
within 14 days after being served with the notice and direct questions;
redirect questions, within 7 days after being served with cross-
questions; and recross-questions, within 7 days after being served with
redirect questions. The presiding officer may, for good cause, extend or
shorten these times.
    (b) Delivery to the officer; officer's duties. The party who noticed
the deposition must deliver to the officer before whom the deposition
will be taken a copy of all the questions served and of the notice. The
officer must promptly proceed to:
    (1) Take the deponent's testimony in response to the questions;
    (2) Prepare and certify the deposition; and
    (3) Send it to the party, attaching a copy of the questions and of
the notice.
    (c) Notice of completion or filing. (1) Completion. The party who
noticed the deposition must notify all other parties when it is
completed.
    (2) Filing. A party who files the deposition must promptly notify
all other parties of the filing. [Rule 204.]



Sec. 502.205  Interrogatories to parties.

    (a) In general. (1) Number. Unless otherwise stipulated or ordered
by the presiding officer, a party may serve on any other party no more
than 50 written interrogatories, including all discrete subparts. Leave
to serve additional interrogatories may be granted to the extent
consistent with Sec. 502.201(e)(2).
    (2) Scope. An interrogatory may relate to any matter that may be
inquired into under Sec. 502.201(e) and (f). An interrogatory is not
objectionable merely because it asks for an opinion or contention that
relates to fact or the application of law to fact, but the presiding
officer may order that the interrogatory need not be answered until
designated discovery is complete, or until a prehearing conference or
some other time.
    (b) Answers and objections. (1) Responding party. The
interrogatories must be answered:
    (i) By the party to whom they are directed; or
    (ii) If that party is a public or private corporation, a
partnership, an association, or a governmental agency, by any officer or
representative, who must furnish the information available to the party.
    (2) Time to respond. The responding party must serve its answers and
any objections within 30 days after being served with the
interrogatories. A shorter or longer time may be stipulated to as
provided in Sec. 502.201(l) of this subpart or be ordered by the
presiding officer.
    (3) Answering each interrogatory. Each interrogatory must, to the
extent it is not objected to, be answered separately and fully in
writing under oath.
    (4) Objections. The grounds for objecting to an interrogatory must
be stated with specificity. Any ground not stated in a timely objection
is waived unless the presiding officer, for good cause, excuses the
failure.
    (5) Signature. The person who makes the answers must sign them, and
the attorney who objects must sign any objections.
    (c) Use. An answer to an interrogatory may be used to the extent
allowed by the rules in this part.
    (d) Option to produce business records. If the answer to an
interrogatory may be determined by examining, auditing, compiling,
abstracting, or summarizing a party's business records (including
electronically stored information), and if the burden of deriving or
ascertaining the answer will be substantially the same for either party,
the responding party may answer by:
    (1) Specifying the records that must be reviewed, in sufficient
detail to enable the interrogating party to locate and identify them as
readily as the responding party could; and
    (2) Giving the interrogating party a reasonable opportunity to
examine and audit the records and to make copies, compilations,
abstracts, or summaries. [Rule 205.]

[[Page 61]]



Sec. 502.206  Producing documents, electronically stored information,
and tangible things, or entering onto land, for inspection and other

purposes.

    (a) In general. A party may serve on any other party a request
within the scope of Sec. 502.201(e) and (f):
    (1) To produce and permit the requesting party or its representative
to inspect, copy, test, or sample the following items in the responding
party's possession, custody, or control:
    (i) Any designated documents or electronically stored information,
including writings, drawings, graphs, charts, photographs, sound
recordings, images, and other data or data compilations, stored in any
medium from which information can be obtained either directly or, if
necessary, after translation by the responding party into a reasonably
usable form; or
    (ii) Any designated tangible things; or
    (2) To permit entry onto designated land or other property possessed
or controlled by the responding party, so that the requesting party may
inspect, measure, survey, photograph, test, or sample the property or
any designated object or operation on it.
    (b) Procedure. (1) Contents of the request. The request:
    (i) Must describe with reasonable particularity each item or
category of items to be inspected;
    (ii) Must specify a reasonable time, place, and manner for the
inspection and for performing the related acts; and
    (iii) May specify the form or forms in which electronically stored
information is to be produced.
    (2) Responses and objections. (i) Time to respond. The party to whom
the request is directed must respond in writing within 30 days after
being served. A shorter or longer time may be stipulated to as provided
in Sec. 502.201(l) of this subpart or be ordered by the presiding
officer.
    (ii) Responding to each item. For each item or category, the
response must either state that inspection and related activities will
be permitted as requested or state an objection to the request,
including the reasons.
    (iii) Objections. An objection to part of a request must specify the
part and permit inspection of the rest.
    (iv) Responding to a request for production of electronically stored
information. The response may state an objection to a requested form for
producing electronically stored information. If the responding party
objects to a requested form, or if no form was specified in the request,
the party must state the form or forms it intends to use.
    (v) Producing the documents or electronically stored information.
Unless otherwise stipulated or ordered by the presiding officer, these
procedures apply to producing documents or electronically stored
information:
    (A) A party must produce documents as they are kept in the usual
course of business or must organize and label them to correspond to the
categories in the request;
    (B) If a request does not specify a form for producing
electronically stored information, a party must produce it in a form or
forms in which it is ordinarily maintained or in a reasonably usable
form or forms; and
    (C) A party need not produce the same electronically stored
information in more than one form.
    (c) Nonparties. By subpoena under subpart I of this part, a nonparty
may be compelled to produce documents and tangible things or to permit
an inspection. [Rule 206.]



Sec. 502.207  Requests for admission.

    (a) Scope and procedure. (1) Scope. A party may serve on any other
party a written request to admit, for the purposes of the pending action
only, the truth of any nonprivileged relevant matters relating to facts,
the application of law to fact, or opinions about either, and the
genuineness of any described documents.
    (2) Form; copies of documents. Each matter must be separately
stated. A request to admit the genuineness of a document must be
accompanied by a copy of the document unless it is, or has been,
otherwise furnished or made available for inspection and copying.
    (3) Time to respond; effect of failure to respond. A matter is
admitted unless, within 30 days after being served, the party to whom
the request is directed

[[Page 62]]

serves on the requesting party a written answer or objection addressed
to the matter and signed by the party or its attorney. A shorter or
longer time for responding may be stipulated to as provided in Sec.
502.201(l) of this subpart or be ordered by the presiding officer.
    (4) Answer. If a matter is not admitted, the answer must
specifically deny it or state in detail why the answering party cannot
truthfully admit or deny it. A denial must fairly respond to the
substance of the matter; and when good faith requires that a party
qualify an answer or deny only a part of a matter, the answer must
specify the part admitted and qualify or deny the rest. The answering
party may assert lack of knowledge or information as a reason for
failing to admit or deny only if the party states that it has made
reasonable inquiry and that the information it knows or can readily
obtain is insufficient to enable it to admit or deny.
    (5) Objections. The grounds for objecting to a request must be
stated. A party may not object solely on the ground that the request
presents a genuine issue for adjudication.
    (6) Motion regarding the sufficiency of an answer or objection. The
requesting party may move for a determination of the sufficiency of an
answer or objection. Unless the presiding officer finds an objection
justified, the presiding officer must order that an answer be served. On
finding that an answer does not comply with this rule, the presiding
officer may order either that the matter is admitted or that an amended
answer be served. The presiding officer may defer a decision until a
prehearing conference or a specified time prior to hearing.
    (b) Effect of admission; withdrawal or amendment of admission. A
matter admitted under this rule is conclusively established unless the
presiding officer, on motion, permits the admission to be withdrawn or
amended. The presiding officer may permit withdrawal or amendment if it
would promote the presentation of the merits of the action and if the
presiding officer is not persuaded that it would prejudice the
requesting party in maintaining or defending the action on the merits.
An admission under this rule is not an admission for any other purpose
and cannot be used against the party in any other proceeding. [Rule
207.]



Sec. 502.208  Use of discovery procedures directed to Commission staff
personnel.

    (a) Discovery procedures described in Sec. Sec. 502.202 through
502.207, directed to Commission staff personnel must be permitted and
must be governed by the procedures set forth in those sections except as
modified by paragraphs (b) and (c) of this section. All notices to take
depositions, written interrogatories, requests for production of
documents and other things, requests for admissions, and any motions in
connection with the foregoing, must be served on the Secretary of the
Commission.
    (b) The General Counsel must designate an attorney to represent any
Commission staff personnel to whom any discovery requests or motions are
directed. The attorney so designated must not thereafter participate in
the Commission's decision-making process concerning any issue in the
proceeding.
    (c) Rulings of the presiding officer issued under paragraph (a) of
this section must become final rulings of the Commission unless an
appeal is filed within 10 days after date of issuance of such rulings or
unless the Commission on its own motion reverses, modifies, or stays
such rulings within 20 days of their issuance. Replies to appeals may be
filed within 10 days. No motion for leave to appeal is necessary in such
instances and no ruling of the presiding officer must be effective until
20 days from date of issuance unless the Commission otherwise directs.
[Rule 208.]



Sec. 502.209  Use of depositions at hearings.

    (a) Using depositions. (1) In general. At a hearing, all or part of
a deposition may be used against a party on these conditions:
    (i) The party was present or represented at the taking of the
deposition or had reasonable notice of it;
    (ii) It is used to the extent it would be admissible if the deponent
were present and testifying; and
    (iii) The use is allowed by Sec. 502.209(a)(2) through (7).

[[Page 63]]

    (2) Impeachment and other uses. Any party may use a deposition to
contradict or impeach the testimony given by the deponent as a witness,
or for any other purpose allowed by Sec. 502.156 of subpart J of this
part.
    (3) Deposition of party, representative, or designee. An adverse
party may use for any purpose the deposition of a party or anyone who,
when deposed, was the party's officer, director, managing
representative, or designee under Sec. 502.203(b)(6) or Sec.
502.204(a)(4).
    (4) Unavailable witness. A party may use for any purpose the
deposition of a witness, whether or not a party, if the Commission or
presiding officer finds:
    (i) That the witness is dead;
    (ii) That the witness cannot attend or testify because of age,
illness, infirmity, or imprisonment;
    (iii) That the party offering the deposition could not procure the
witness's attendance by subpoena; or
    (iv) On motion and notice, that exceptional circumstances make it
desirable, in the interest of justice and with due regard to the
importance of live testimony at a hearing, to permit the deposition to
be used.
    (5) Using part of a deposition. If a party offers in evidence only
part of a deposition, an adverse party may require the offeror to
introduce other parts that in fairness should be considered with the
part introduced, and any party may itself introduce any other parts.
    (6) Substituting a party. Substituting a party does not affect the
right to use a deposition previously taken.
    (7) Deposition taken in an earlier action. A deposition lawfully
taken and, if required, filed in any Federal or State court action may
be used in a later action involving the same subject matter between the
same parties, or their representatives or successors in interest, to the
same extent as if taken in the later action. A deposition previously
taken may also be used as allowed by Sec. 502.156 of subpart J of this
part.
    (b) Objections to admissibility. Subject to Sec. 502.202(b) and
Sec. 502.209(d)(3), an objection may be made at a hearing to the
admission of any deposition testimony that would be inadmissible if the
witness were present and testifying.
    (c) Form of presentation. Unless the presiding officer orders
otherwise, a party must provide a transcript of any deposition testimony
the party offers, but may provide the presiding officer with the
testimony in nontranscript form as well.
    (d) Waiver of objections. (1) To the notice. An objection to an
error or irregularity in a deposition notice is waived unless promptly
served in writing on the party giving the notice.
    (2) To the officer's qualification. An objection based on
qualification of the officer before whom a deposition is to be taken is
waived if not made:
    (i) Before the deposition begins; or
    (ii) Promptly after the basis for disqualification becomes known or,
with reasonable diligence, could have been known.
    (3) To the taking of the deposition. (i) Objection to competence,
relevance, or materiality. An objection to a deponent's competence, or
to the competence, relevance, or materiality of testimony, is not waived
by a failure to make the objection before or during the deposition,
unless the ground for it might have been corrected at that time.
    (ii) Objection to an error or irregularity. An objection to an error
or irregularity at an oral examination is waived if:
    (A) It relates to the manner of taking the deposition, the form of a
question or answer, the oath or affirmation, a party's conduct, or other
matters that might have been corrected at that time; and
    (B) It is not timely made during the deposition.
    (iii) Objection to a written question. An objection to the form of a
written question under Sec. 502.204 of this subpart is waived if not
served in writing on the party submitting the question within the time
for serving responsive questions or, if the question is a recross-
question, within 7 days after being served with it.
    (4) To completing and returning the deposition. An objection to how
the officer transcribed the testimony, or prepared, signed, certified,
sealed, endorsed, sent, or otherwise dealt with the deposition, is
waived unless a motion to suppress is made promptly after the error or
irregularity becomes

[[Page 64]]

known or, with reasonable diligence, could have been known. [Rule 209.]



Sec. 502.210  Motions to compel initial disclosures or compliance with
discovery requests; failure to comply with order to make disclosure or

answer or produce documents; sanctions; enforcement.

    (a) Motion for order to compel initial disclosures or compliance
with discovery requests. (1) A party may file a motion pursuant to Sec.
502.69 for an order compelling compliance with the requirement for
initial disclosures provided in Sec. 502.201 or with its discovery
requests as provided in this subpart, if a deponent fails to answer a
question asked at a deposition or by written questions; a corporation or
other entity fails to make a designation of an individual who will
testify on its behalf; a party fails to answer an interrogatory; or a
party fails to respond that inspection will be permitted, or fails to
permit inspection, as requested under Sec. 502.206 of this subpart. For
purposes of this section, a failure to make a disclosure, answer, or
respond includes an evasive or incomplete disclosure, answer, or
response.
    (2) A motion to compel must include:
    (i) A certification that the moving party has conferred in good
faith or attempted to confer with the party failing to make initial
disclosure or respond to discovery requests as provided in this subpart
in an effort to obtain compliance without the necessity of a motion;
    (ii) A copy of the discovery requests that have not been answered or
for which evasive or incomplete responses have been given. If the motion
is limited to specific discovery requests, only those requests are to be
included;
    (iii) If a disclosure has been made or an answer or response has
been given, a copy of the disclosure, answer, or response in its
entirety;
    (iv) A copy of the certificate of service that accompanied the
discovery request; and
    (v) A request for relief and supporting argument, if any.
    (3) A party may file a response to the motion within 7 days of the
service date of the motion. Unless there is a dispute with respect to
the accuracy of the versions of the discovery requests, responses
thereto, or the disclosures submitted by the moving party, the response
must not include duplicative copies of them.
    (4) A reply to a response is not allowed unless requested by the
presiding officer, or upon a showing of extraordinary circumstances.
    (b) Failure to comply with order compelling disclosures or
discovery. If a party or a party's officer or authorized representative
fails or refuses to obey an order requiring it to make disclosures or to
respond to discovery requests, the presiding officer upon his or her own
initiative or upon motion of a party may make such orders in regard to
the failure or refusal as are just. A motion must include a
certification that the moving party has conferred in good faith or
attempted to confer with the disobedient party in an effort to obtain
compliance without the necessity of a motion. An order of the presiding
officer may:
    (1) Direct that the matters included in the order or any other
designated facts must be taken to be established for the purposes of the
action as the party making the motion claims;
    (2) Prohibit the disobedient party from supporting or opposing
designated claims or defenses, or from introducing designated matters in
evidence; or
    (3) Strike pleadings in whole or in part; staying further
proceedings until the order is obeyed; or dismissing the action or
proceeding or any party thereto, or rendering a decision by default
against the disobedient party.
    (c) Enforcement of orders and subpoenas. In the event of refusal to
obey an order or failure to comply with a subpoena, the Attorney General
at the request of the Commission, or any party injured thereby may seek
enforcement by a United States district court having jurisdiction over
the parties. Any action with respect to enforcement of subpoenas or
orders relating to depositions, written interrogatories, or other
discovery matters must be taken within 20 days of the date of refusal to
obey or failure to comply. A private party must advise the Commission 5
days (excluding Saturdays, Sundays and legal holidays) before applying
to the court of its intent

[[Page 65]]

to seek enforcement of such subpoenas and discovery orders.
    (d) Persons and documents located in a foreign country. Orders of
the presiding officer directed to persons or documents located in a
foreign country must become final orders of the Commission unless an
appeal to the Commission is filed within 10 days after date of issuance
of such orders or unless the Commission on its own motion reverses,
modifies, or stays such rulings within 20 days of their issuance.
Replies to appeals may be filed within 10 days. No motion for leave to
appeal is necessary in such instances and no orders of the presiding
officer must be effective until 20 days from date of issuance unless the
Commission otherwise directs. [Rule 210.]



     Subpart M_Briefs; Requests for Findings; Decisions; Exceptions



Sec. 502.221  Briefs; requests for findings.

    (a) The presiding officer shall fix the time and manner of filing
briefs and any enlargement of time. The period of time allowed shall be
the same for all parties unless the presiding officer, for good cause
shown, directs otherwise.
    (b) Briefs shall be served upon all parties pursuant to subpart H of
this part.
    (c) In investigations instituted on the Commission's own motion, the
presiding officer may require the Bureau of Enforcement to file a
request for findings of fact and conclusions within a reasonable time
prior to the filing of briefs. Service of the request shall be in
accordance with the provisions of subpart H of this part.
    (d) Unless otherwise ordered by the presiding officer, opening or
initial briefs shall contain the following matters in separately
captioned sections: (1) Introductory section describing the nature and
background of the case, (2) proposed findings of fact in serially
numbered paragraphs with reference to exhibit numbers and pages of the
transcript, (3) argument based upon principles of law with appropriate
citations of the authorities relied upon, and (4) conclusions.
    (e) All briefs shall contain a subject index or table of contents
with page references and a list of authorities cited.
    (f) All briefs filed pursuant to this section shall ordinarily be
limited to eighty (80) pages in length, exclusive of pages containing
the table of contents, table of authorities, and certificate of service,
unless the presiding officer allows the parties to exceed this limit for
good cause shown and upon application filed not later than five (5) days
before the time fixed for filing of such a brief or reply. [Rule 221.]

[49 FR 44369, Nov. 6, 1984, as amended at 61 FR 51233, Oct. 1, 1996; 64
FR 7810, Feb. 17, 1999]



Sec. 502.222  Requests for enlargement of time for filing briefs.

    Requests for enlargement of time within which to file briefs shall
conform to the requirements of Sec. 502.102. Except for good cause
shown, such requests shall be filed and served pursuant to subpart H of
this part not later than five (5) days before the expiration of the time
fixed for the filing of the briefs. [Rule 222.]



Sec. 502.223  Decisions--Administrative law judges.

    To the administrative law judges is delegated the authority to make
and serve initial or recommended decisions. All initial and recommended
decisions will include a statement of findings and conclusions, as well
as the reasons or basis therefor, upon all the material issues presented
on the record, and the appropriate rule, order, sanction, relief, or
denial thereof. Where appropriate, the statement of findings and
conclusions should be numbered. Initial decisions should address only
those issues necessary to a resolution of the material issues presented
on the record. A copy of each decision when issued shall be served on
the parties to the proceeding. In proceedings involving overcharge
claims, the presiding officer may, where appropriate, require that the
carrier publish notice in its tariff of the substance of the decision.
This provision shall also apply to decisions issued pursuant to subpart
T of this part. [Rule 223.]

[64 FR 7810, Feb. 17, 1999]

[[Page 66]]



Sec. 502.224  Separation of functions.

    The separation of functions as required by 5 U.S.C. 554(d) shall be
observed in proceedings under subparts A to Q inclusive, of this part.
[Rule 224.]



Sec. 502.225  Decisions--Commission.

    All final decisions will include a statement of findings and
conclusions, as well as the reasons or basis therefor, upon all the
material issues presented on the record, and the appropriate rule,
order, sanction, relief, or denial thereof. A copy of each decision when
issued shall be served on the parties to the proceeding. This provision
shall also apply to decisions issued pursuant to subpart T of this part.
[Rule 225.]

[64 FR 7810, Feb. 17, 1999]



Sec. 502.226  Decision based on official notice; public documents.

    (a) Official notice may be taken of such matters as might be
judicially noticed by the courts, or of technical or scientific facts
within the general knowledge of the Commission as an expert body,
provided, that where a decision or part thereof rests on the official
notice of a material fact not appearing in the evidence in the record,
the fact of official notice shall be so stated in the decision, and any
party, upon timely request, shall be afforded an opportunity to show the
contrary.
    (b) Whenever there is offered in evidence (in whole or in part) a
public document, such as an official report, decision, opinion, or
published scientific or economic statistical data issued by any of the
executive departments (or their subdivisions), legislative agencies or
committees, or administrative agencies of the Federal Government
(including Government-owned corporations), or a similar document issued
by a state or its agencies, and such document (or part thereof) has been
shown by the offeror to be reasonably available to the public, such
document need not be produced or marked for identification, but may be
offered in evidence as a public document by specifying the document or
relevant part thereof. [Rule 226.]



Sec. 502.227  Exceptions to decisions or orders of dismissal of
administrative law judge; replies thereto; review of decisions or orders

of dismissal by Commission; and judicial review.

    (a)(1) Within twenty-two (22) days after date of service of the
initial decision, unless a shorter period is fixed under Sec. 502.103,
any party may file a memorandum excepting to any conclusions, findings,
or statements contained in such decision, and a brief in support of such
memorandum. Such exceptions and brief shall constitute one document,
shall indicate with particularity alleged errors, shall indicate
transcript page and exhibit number when referring to the record, and
shall be served on all parties pursuant to subpart H of this part.
    (2) Any adverse party may file and serve a reply to such exceptions
within twenty-two (22) days after the date of service thereof, which
shall contain appropriate transcript and exhibit references.
    (3) Whenever the officer who presided at the reception of the
evidence, or other qualified officer, makes an initial decision, such
decision shall become the decision of the Commission thirty (30) days
after date of service thereof (and the Secretary shall so notify the
parties), unless within such 30-day period, or greater time as enlarged
by the Commission for good cause shown, request for review is made in
exceptions filed or a determination to review is made by the Commission
on its own initiative.
    (4) A decision or order of dismissal by an administrative law judge
shall only be considered final for purposes of judicial review if the
party has first sought review by the Commission pursuant to this
section.
    (5) Upon the filing of exceptions to, or review of, an initial
decision, such decision shall become inoperative until the Commission
determines the matter.
    (6) Where exceptions are filed to, or the Commission reviews, an
initial decision, the Commission, except as it may limit the issues upon
notice or by rule, will have all the powers which it would have in
making the initial decision. Whenever the Commission shall determine to
review an initial decision

[[Page 67]]

on its own initiative, notice of such intention shall be served upon the
parties.
    (7) The time periods for filing exceptions and replies to
exceptions, prescribed by this section, shall not apply to proceedings
conducted under Sec. 502.75.
    (b)(1) If an administrative law judge has granted a motion for
dismissal of the proceeding in whole or in part, any party desiring to
appeal must file such appeal no later than twenty-two (22) days after
service of the ruling on the motion in question.
    (2) Any adverse party may file and serve a reply to an appeal under
this paragraph within twenty-two (22) days after the appeal is served.
    (3) The denial of a petition to intervene or withdrawal of a grant
of intervention shall be deemed to be a dismissal within the meaning of
this paragraph.
    (c) Whenever an administrative law judge orders dismissal of a
proceeding in whole or in part, such order, in the absence of appeal,
shall become the order of the Commission thirty (30) days after date of
service of such order (and the Secretary shall so notify the parties),
unless within such 30-day period the Commission decides to review such
order on its own motion, in which case notice of such intention shall be
served upon the parties.
    (d) The Commission shall not, on its own initiative, review any
initial decision or order of dismissal unless such review is requested
by an individual Commissioner. Any such request must be transmitted to
the Secretary within thirty (30) days after date of service of the
decision or order. Such request shall be sufficient to bring the matter
before the Commission for review.
    (e) All briefs and replies filed pursuant to this section shall
ordinarily be limited to fifty (50) pages in length, exclusive of pages
containing the table of contents, table of authorities, and certificate
of service, unless the Commission allows the parties to exceed this
limit for good cause shown and upon application filed not later than
five (5) days before the time fixed for filing of such a brief or reply.
[Rule 227.]

[49 FR 44369, Nov. 6, 1984, as amended at 58 FR 27211, May 7, 1993; 61
FR 66617, Dec. 18, 1996; 64 FR 7810, Feb. 17, 1999]



Sec. 502.228  Request for enlargement of time for filing exceptions and
replies thereto.

    Requests for enlargement of time within which to file exceptions,
and briefs in support thereof, or replies to exceptions shall conform to
the applicable provisions of Sec. 502.102. Requests for extensions of
these periods will be granted only under exceptional circumstances duly
demonstrated in the request. Except for good cause shown, such requests
shall be filed and served not later than five (5) days before the
expiration of the time fixed for the filing of such documents. Any
enlargement of time granted will automatically extend by the same period
the date for the filing of notice or review by the Commission. [Rule
228.]



Sec. 502.229  Certification of record by presiding or other officer.

    The presiding or other officer shall certify and transmit the entire
record to the Commission when (a) exceptions are filed or the time
therefor has expired, (b) notice is given by the Commission that the
initial decision will be reviewed on its own initiative, or (c) the
Commission requires the case to be certified to it for initial decision.
[Rule 229.]



Sec. 502.230  Reopening by presiding officer or Commission.

    (a) Motion to reopen. At any time after the conclusion of a hearing
in a proceeding, but before issuance by the presiding officer of a
recommended or initial decision, any party to the proceeding may file
with the presiding officer a motion to reopen the proceeding for the
purpose of receiving additional evidence. A motion to reopen shall be
served in conformity with the requirements of subpart H and shall set
forth the grounds requiring reopening of the proceeding, including
material changes of fact or of law alleged to have occurred since the
conclusion of the hearing.
    (b) Reply. Within ten (10) days following service of a motion to
reopen, any party may reply to such motion.
    (c) Reopening by presiding officer. At any time prior to filing his
or her decision, the presiding officer upon his or

[[Page 68]]

her own motion may reopen a proceeding for the reception of further
evidence.
    (d) Reopening by the Commission. Where a decision has been issued by
the presiding officer or where a decision by the presiding officer has
been omitted, but before issuance of a Commission decision, the
Commission may, after petition and reply in conformity with paragraphs
(a) and (b) of this section, or upon its own motion, reopen a proceeding
for the purpose of taking further evidence.
    (e) Remand by the Commission. Nothing contained in this rule shall
preclude the Commission from remanding a proceeding to the presiding
officer for the taking of additional evidence or determining points of
law. [Rule 230.]

[49 FR 44369, Nov. 6, 1984; 49 FR 47394, Dec. 4, 1984]



         Subpart N_Oral Argument; Submission for Final Decision



Sec. 502.241  Oral argument.

    (a) The Commission may hear oral argument either on its own motion
or upon the written request of a party. If oral argument before the
Commission is desired on exceptions to an initial or recommended
decision, or on a motion, petition, or application, a request therefor
shall be made in writing. Any party may make such a request irrespective
of its filing exceptions under Sec. 502.227. If a brief on exceptions
is filed, the request for oral argument shall be incorporated in such
brief. Requests for oral argument on any motion, petition, or
application shall be made in the motion, petition, or application, or in
the reply thereto. If the Commission determines to hear oral argument, a
notice will be issued setting forth the order of presentation and the
amount of time allotted to each party.
    (b)(1) Requests for oral argument will be granted or denied in the
discretion of the Commission.
    (2) Parties requesting oral argument shall set forth the specific
issues they propose to address at oral argument.
    (c) Those who appear before the Commission for oral argument shall
confine their argument to points of controlling importance raised on
exceptions or replies thereto. Where the facts of a case are adequately
and accurately dealt with in the initial or recommended decision,
parties should, as far as possible, address themselves in argument to
the conclusions.
    (d) Effort should be made by parties taking the same position to
agree in advance of the argument upon those persons who are to present
their side of the case, and the names of such persons and the amount of
time requested should be received by the Commission not later than ten
(10) days before the date set for the argument. The fewer the number of
persons making the argument the more effectively can the parties'
interests be presented in the time allotted. [Rule 241.]

[49 FR 44369, Nov. 6, 1984, as amended at 52 FR 4144, Feb. 10, 1987]



Sec. 502.242  Submission to Commission for final decision.

    A proceeding will be deemed submitted to the Commission for final
decision as follows: (a) If oral argument is had, the date of completion
thereof, or if memoranda on points of law are permitted to be filed
after argument, the last date of such filing; (b) if oral argument is
not had, the last date when exceptions or replies thereto are filed, or
if exceptions are not filed, the expiration date for such exceptions;
(c) in the case of an initial decision, the date of notice of the
Commission's intention to review the decision, if such notice is given.
[Rule 242.]



Sec. 502.243  Participation of absent Commissioner.

    Any Commissioner who is not present at oral argument and who is
otherwise authorized to participate in a decision shall participate in
making that decision after reading the transcript of oral argument
unless he or she files in writing an election not to participate. [Rule
243.]



                          Subpart O_Reparation



Sec. 502.251  Proof on award of reparation.

    If many shipments or points of origin or destination are involved in
a proceeding in which reparation is sought

[[Page 69]]

(See Sec. 502.63), the Commission will determine in its decision the
issues as to violations, injury to complainant, and right to reparation.
If complainant is found entitled to reparation, the parties thereafter
will be given an opportunity to agree or make proof respecting the
shipments and pecuniary amount of reparation due before the order of the
Commission awarding reparation is entered. In such cases, freight bills
and other exhibits bearing on the details of all shipments, and the
amount of reparation on each, need not be produced at the original
hearing unless called for or needed to develop other pertinent facts.
[Rule 251.]



Sec. 502.252  Reparation statements.

    When the Commission finds that reparation is due, but that the
amount cannot be ascertained upon the record before it, the complainant
shall immediately prepare a statement in accordance with the approved
reparation statement in Exhibit No. 1 to this subpart, showing details
of the shipments on which reparation is claimed. This statement shall
not include any shipments not covered by the findings of the Commission.
Complainant shall forward the statement, together with the paid freight
bills on the shipments, or true copies thereof, to the respondent or
other person who collected the charges for checking and certification as
to accuracy. Statements so prepared and certified shall be filed with
the Commission for consideration in determining the amount of reparation
due. Disputes concerning the accuracy of amounts may be assigned for
conference by the Commission, or in its discretion referred for further
hearing. [Rule 252.]



Sec. 502.253  Interest in reparation proceedings.

    Except as to applications for refund or waiver of freight charges
under Sec. 502.271 and claims which are settled by agreement of the
parties, and absent fraud or misconduct of a party, interest granted on
awards of reparation in complaint proceedings instituted under the
Shipping Act of 1984 will accrue from the date of injury to the date
specified in the Commission order awarding reparation. Compounding will
be daily from the date of injury to the date specified in the Commission
order awarding reparation. Normally, the date specified within which
payment must be made will be fifteen (15) days subsequent to the date of
service of the Commission order. Interest shall be computed on the basis
of the average monthly secondary market rate on six-month U.S. Treasury
bills commencing with the rate for the month that the injury occurred
and concluding with the latest available monthly U.S. Treasury bill rate
at the date of the Commission order awarding reparation. The monthly
secondary market rates on six-month U.S. Treasury bills for the
reparation period will be summed up and divided by the number of months
for which interest rates are available in the reparation period to
determine the average interest rate applicable during the period. [Rule
253.]

[64 FR 7810, Feb. 17, 1999]



Sec. 502.254  Attorney's fees in reparation proceedings.

    (a) Scope. The Commission shall, upon petition, award the
complainant reasonable attorney's fees directly related to obtaining a
reparations award in any complaint proceeding under section 11 of the
Shipping Act of 1984 (46 U.S.C. 41301-41302, 41305-41307(a)). For
purposes of this section, ``attorney's fees'' includes the fair market
value of the services of any person permitted to appear and practice
before the Commission in accordance with subpart B of this part, and may
include compensation for services rendered the complainant in a related
proceeding in Federal court that is useful and necessary to the
determination of a reparations award in the complaint proceeding.
    (b) Content of petitions. Petitions for attorney's fees under this
section shall specify the number of hours claimed by each person
representing the complainant at each identifiable stage of the
proceeding, and shall be supported by evidence of the reasonableness of
hours claimed and the customary fees charged by attorneys and associated
legal representative in the community where the petitioner practices.
Requests for additional compensation must be supported by evidence that
the

[[Page 70]]

customary fees for the hours reasonably expended on the case would
result in an unreasonable fee award.
    (c) Filing of petition. (1) Petitions for attorney's fees shall be
filed within 30 days of a final reparation award:
    (i) With the presiding officer where the presiding officer's
decision awarding reparations became administratively final pursuant to
Sec. 502.227(a)(3) and Sec. 502.304(g); or
    (ii) With the Commission, if exceptions were filed to, or the
Commission reviewed, the presiding officer's reparation award decision
pursuant to Sec. 502.227 of this part.
    (2) For purposes of this section, a reparation award shall be
considered final after a decision disposing of the merits of a complaint
is issued and the time for the filing of court appeals has run or after
a court appeal has terminated.
    (d) Replies to petitions. Within 20 days of filing of the petition,
a reply to the petition may be filed by the respondent, addressing the
reasonableness of any aspect of the petitioner's claim. A respondent may
also suggest adjustments to the claim under the criteria stated in
paragraph (b) of this section.
    (e) Ruling on petitions. Upon consideration of a petition and any
reply thereto, the Commission or the presiding officer shall issue an
order stating the total amount of attorney's fees awarded. The order
shall specify the hours and rate of compensation found awardable and
shall explain the basis for any additional adjustments. An award order
shall be served within 60 days of the date of the filing of the reply to
the petition or expiration of the reply period; except that in cases
involving a substantial dispute of facts critical to the award
determination, the Commission or presiding officer may hold a hearing on
such issues and extend the time for issuing a fee award order by an
additional 30 days. The Commission or the presiding officer may adopt a
stipulated settlement of attorney's fees.
    (f) In cases where the presiding officer issues an award order,
appeal of that order and Commission review of that order in the absence
of appeal shall be governed by the procedures of Sec. 502.227 of this
part. [Rule 254.]

[52 FR 6331, Mar. 3, 1987, as amended at 58 FR 27211, May 7, 1993; 64 FR
7811, Feb. 17, 1999; 74 FR 50716, Oct. 1, 2009]

[[Page 71]]

   Exhibit No. 1 to Subpart O [Sec. 502.252] of Part 502--Reparation
               Statement To Be Filed Pursuant to Rule 252

                 Claim of -------------------- under the decision of the Federal Maritime Commission in Docket No. --------------------.
--------------------------------------------------------------------------------------------------------------------------------------------------------
          Date of                                                                                      As charged       Should be
          delivery    Date                       Port                                               --------------------------------             Charges
Date of  or tender   charges   Vessel   Voyage    of    Destination   Route  Commodity   Weight or                                   Reparation  paid by
  B/L        of       paid               No.    origin      port                        measurement   Rate   Amount   Rate   Amount                 *
          delivery
--------------------------------------------------------------------------------------------------------------------------------------------------------


--------------------------------------------------------------------------------------------------------------------------------------------------------
 *Here insert name of person paying charges in the first instance, and state whether as consignor, consignee, or in what other capacity.


Total amount of reparation $----------------------------------------.

  The undersigned hereby certifies that this statement has been checked against the records of this company
   and found correct.

  Date ----------------------------------------.

---------------------------------------- Steamship Company, Collecting Carrier Respondent,

By ----------------------------------------, Auditor

By ----------------------------------------, Claimant

----------------------------------------, Attorney

(address and date)



[[Page 72]]



                Subpart P_Reconsideration of Proceedings



Sec. 502.261  Petitions for reconsideration and stay.

    (a) Within thirty (30) days after issuance of a final decision or
order by the Commission, any party may file a petition for
reconsideration. Such petition shall be limited to 25 pages in length
and shall be served in conformity with the requirements of subpart H of
this part. A petition will be subject to summary rejection unless it:
    (1) Specifies that there has been a change in material fact or in
applicable law, which change has occurred after issuance of the decision
or order;
    (2) Identifies a substantive error in material fact contained in the
decision or order; or
    (3) Addresses a finding, conclusion or other matter upon which the
party has not previously had the opportunity to comment or which was not
addressed in the briefs or arguments of any party. Petitions which
merely elaborate upon or repeat arguments made prior to the decision or
order will not be received. A petition shall be verified if verification
of the original pleading is required and shall not operate as a stay of
any rule or order of the Commission.
    (b) A petition for stay of a Commission order which directs the
discontinuance of statutory violations will not be received.
    (c) The provisions of this section are not applicable to decisions
issued pursuant to subpart S of this part. [Rule 261.]

[49 FR 44369, Nov. 6, 1984, as amended at 58 FR 27211, May 7, 1993]



Sec. 502.262  Reply to petition for reconsideration or stay.

    Any party may file a reply in opposition to a petition for
reconsideration or stay within fifteen (15) days after the date of
service of the petition in accordance with Sec. 502.74. The reply shall
be limited to 25 pages in length and shall be served in conformity with
subpart H of this part. [Rule 262.]

[58 FR 27211, May 7, 1993]



              Subpart Q_Refund or Waiver of Freight Charges

    Source: 64 FR 7811, Feb. 17, 1999, unless otherwise noted.



Sec. 502.271  Special docket application for permission to refund or
waive freight charges.

    (a)(1) A common carrier or a shipper may file a special docket
application seeking permission for a common carrier or conference to
refund or waive collection of a portion of freight charges if there is:
    (i) An error in the tariff;
    (ii) An error in failing to publish a new tariff; or
    (iii) An error in quoting a tariff .
    (2) Such refund or waiver must not result in discrimination among
shippers, ports, or carriers.
    (b) Such application must be filed within one hundred eighty (180)
days from the date of sailing of the vessel from the port at which the
cargo was loaded. An application is filed when it is placed in the mail,
delivered to a courier, or, if delivered by another method, when it is
received by the Commission. Filings by mail or courier must include a
certification as to date of mailing or delivery to the courier.
    (c) Prior to submission of the application for a refund for an error
in a tariff or a failure to publish a new tariff, the carrier or
conference must publish a new tariff which sets forth the rate on which
refund or waiver would be based.
    (d) Such application must be in accordance with Exhibit 1 to this
Subpart and must also comply with the following requirements:
    (1) Applications must be submitted to the Office of the Secretary,
Federal Maritime Commission, Washington, DC 20573-0001.
    (2) Applications must be submitted in an original and one (1) copy.
    (3) Applications must be sworn to before a notary public or
otherwise verified in accordance with Sec. 502.112.
    (4) When a rate published in a conference tariff is involved, the
carrier or shipper must serve a copy of the application on the
conference and so certify in accordance with Sec. 502.117 to that
service in the application. A shipper

[[Page 73]]

must also make a similar service and certification with respect to the
common carrier.
    (5) Applications must be accompanied by remittance of a $77 filing
fee.
    (e) Any application which does not furnish the information required
by this Subpart may be returned to the applicant by the Secretary
without prejudice to resubmission within the 180-day limitation period.
    (f)(1) The Secretary in his discretion shall either forward an
application to the Office of Consumer Affairs and Dispute Resolution
Services, for assignment to a Special Dockets Officer, or assign an
application to the Office of Administrative Law Judges. Authority to
issue decisions under this subpart is delegated to the assigned Special
Dockets Officer or Administrative Law Judge.
    (2) Applicants will be notified as to the assignment of a deciding
official, and the assignment of a special docket number. Formal
proceedings as described in other rules of this part need not be
conducted. The deciding official may, in his or her discretion, require
the submission of additional information.
    (g) The deciding official shall issue a decision which, pursuant to
Sec. 501.21 of this chapter, shall become final ten (10) days after
service of such decision, unless the Commission in its discretion
chooses to review such decision within that time, or the applicant
chooses to file exceptions to such decision within that time. [Rule
271.]

[64 FR 7811, Feb. 17, 1999, as amended at 65 FR 81759, Dec. 27, 2000; 67
FR 39859, June 11, 2002; 70 FR 7669, Feb. 15, 2005; 70 FR 10329, Mar. 3,
2005; 70 FR 44867, Aug. 4, 2005]



    Sec. Exhibit No. 1 to Subpart Q [Sec. 502.271(d)] of Part 502--
  Application for Refund or Waiver of Freight Charges Due to Tariff or
                              Quoting Error

    Federal Maritime Commission Special Docket No. ---------- [leave
blank].
    Amount of Freight Charges to be refunded or waived:
    Application of (Name of carrier or shipper) for the benefit of (Name
of person who paid or is responsible for payment of freight charges).
    1. Shipment(s). Here fully describe:
    (a) Commodity (according to tariff description).
    (b) Number of shipments.
    (c) Weight or measurement, container size, and number of containers
of individual shipment, as well as all shipments.
    (d)(1) Date(s) of receipt of shipment(s) by the carrier;
    (2) Date(s) of sailing(s) (furnish supporting evidence).
    (e) Shipper and place of origin.
    (f) Consignee, place of destination and routing of shipment(s).
    (g) Name of carrier and date shown on bill of lading (furnish
legible copies of bill(s) of lading).
    (h) Names of participating ocean carrier(s).
    (i) Name(s) of vessel(s) involved in carriage.
    (j) Amount of freight charges actually collected (furnish legible
copies of rated bill(s) of lading or freight bill(s), as appropriate)
broken down (i) per shipment, (ii) in the aggregate, (iii) by whom paid,
(iv) who is responsible for payment if different, and (v) date(s) of
collection.
    (k) Rate and tariff commodity description applicable at time of
shipment (furnish legible copies of tariff materials).
    (l) Rate and commodity description sought to be applied (furnish
legible copies of applicable tariff materials).
    (m)(1) Amount of applicable freight charges, per shipment and in the
aggregate;
    (2) Amount of freight charges at rate sought to be applied, per
shipment and in the aggregate.
    (n) Amount of freight charges sought to be (refunded) (waived), per
shipment and in the aggregate.
    2. Furnish docket numbers of other special docket applications or
decided or pending formal proceedings involving the same rate
situations.
    3. Fully explain the basis for the application, i.e., the error,
failure to publish, or misquote, showing why the application should be
granted. Furnish affidavits, if appropriate, and legible copies of all
supporting documents. If the error is due to failure to publish a
tariff, specify the date when the carrier and/or conference intended or
agreed to publish a new tariff. If the application is based on a
misquote, the application must include the affidavit of the person who
made the misquote describing the circumstances surrounding such misquote
along with any other supporting documentary evidence available.
    4. Furnish any information or evidence as to whether granting the
application may result in discrimination among shippers, ports or
carriers. List any shipments of other shippers of the same commodity
which (i) moved via the carrier(s) or conference involved in this
application during the period of time beginning on the date the intended
rate would

[[Page 74]]

have become effective and ending on the day before the effective date of
the conforming tariff; (ii) moved on the same voyage(s) of the vessel(s)
carrying the shipment(s) described in No. 1, above; or (iii), in the
case of a misquote, moved between the date of receipt of shipment(s)
described in No. 1 above, and the date(s) of sailing(s).
    (Here set forth Name of Applicant, Signature of Authorized Person,
Typed or Printed Name of Person, Title of Person and Date)
    State of , County of . ss:
    I,------ , on oath declare that I am ------ of the above-named
applicant, that I have read this application and know its contents, and
that they are true. Subscribed and sworn to before me, a notary public
in and for the State of ------------ , County of ------------, this ----
-- day of ------ .
(Seal)
________________________________________________________________________
    Notary Public
    My Commission expires.

                 CERTIFICATE OF SERVICE (if applicable)

    I hereby certify that I have this day served the foregoing document
upon the (insert the conference name if a conference tariff is involved;
or the name of the carrier if the applicant is a shipper) by delivering
a copy (insert means by which copy delivered).
    Dated in (insert city, county, state) this ------ day of ------.
(signature)
    For:

                         CERTIFICATE OF MAILING

    I certify that the date shown below is the date of mailing (or date
of delivery to courier) of the original and one (1) copy of this
application to the Secretary, Federal Maritime Commission, Washington,
DC, 20573-0001.
    Dated at ------, this ------ day of ------ .
    (Signature) .
    For.



                Subpart R_Nonadjudicatory Investigations



Sec. 502.281  Investigational policy.

    The Commission has extensive regulatory duties under the various
acts it is charged with administering. The conduct of investigations is
essential to the proper exercise of the Commission's regulatory duties.
It is the purpose of this subpart to establish procedures for the
conduct of such investigations which will insure protection of the
public interest in the proper and effective administration of the law.
The Commission encourages voluntary cooperation in its investigations
where such can be effected without delay or without prejudice to the
public interest. The Commission may, in any matter under investigation,
invoke any or all of the compulsory processes authorized by law. [Rule
281.]



Sec. 502.282  Initiation of investigations.

    Commission inquiries and nonadjudicatory investigations are
originated by the Commission upon its own motion when in its discretion
the Commission determines that information is required for the purposes
of rulemaking or is necessary or helpful in the determination of its
policies or the carrying out of its duties, including whether to
institute formal proceedings directed toward determining whether any of
the laws which the Commission administers have been violated. [Rule
282.]



Sec. 502.283  Order of investigation.

    When the Commission has determined that an investigation is
necessary, an Order of Investigation shall be issued. [Rule 283.]



Sec. 502.284  By whom conducted.

    Investigations are conducted by Commission representatives
designated and duly authorized for the purpose. (See Sec. 502.25.) Such
representatives are authorized to exercise the duties of their office in
accordance with the laws of the United States and the regulations of the
Commission, including the resort to all compulsory processes authorized
by law, and the administration of oaths and affirmances in any matters
under investigation by the Commission. [Rule 284.]



Sec. 502.285  Investigational hearings.

    (a) Investigational hearings, as distinguished from hearings in
adjudicatory proceedings, may be conducted in the course of any
investigation undertaken by the Commission, including inquiries
initiated for the purpose of determining whether or not a person is
complying with an order of the Commission.
    (b) Investigational hearings may be held before the Commission, one
or more of its members, or a duly designated representative, for the
purpose of hearing the testimony of witnesses

[[Page 75]]

and receiving documents and other data relating to any subject under
investigation. Such hearings shall be stenographically reported and a
transcript thereof shall be made a part of the record of investigation.
[Rule 285.]



Sec. 502.286  Compulsory process.

    The Commission, or its designated representative may issue orders or
subpoenas directing the person named therein to appear before a
designated representative at a designated time and place to testify or
to produce documentary evidence relating to any matter under
investigation, or both. Such orders and subpoenas shall be served in the
manner provided in Sec. 502.134. [Rule 286.]

[49 FR 44369, Nov. 6, 1984, as amended at 76 FR 10262, Feb. 24, 2011]



Sec. 502.287  Depositions.

    The Commission, or its duly authorized representative, may order
testimony to be taken by deposition in any investigation at any stage of
such investigation. Such depositions may be taken before any person
designated by the Commission having the power to administer oaths. Such
testimony shall be reduced to writing by the person taking the
deposition or under his or her direction, and shall then be subscribed
by the deponent. Any person may be compelled to appear and be deposed
and to produce evidence in the same manner as witnesses may be compelled
to appear and testify and produce documentary evidence as provided in
Sec. 502.131. [Rule 287.]

[49 FR 44369, Nov. 6, 1984; 49 FR 47394, Dec. 4, 1984]



Sec. 502.288  Reports.

    The Commission may issue an order requiring a person to file a
report or answers in writing to specific questions relating to any
matter under investigation. [Rule 288.]



Sec. 502.289  Noncompliance with investigational process.

    In case of failure to comply with Commission investigational
processes, appropriate action may be initiated by the Commission,
including actions for enforcement by the Commission or the Attorney
General and forfeiture of penalties or criminal actions by the Attorney
General. [Rule 289.]



Sec. 502.290  Rights of witness.

    Any person required to testify or to submit documentary evidence
shall be entitled to retain or, on payment of lawfully prescribed cost,
procure a copy of any document produced by such person and of his or her
own testimony as stenographically reported or, in the depositions, as
reduced to writing by or under the direction of the person taking the
deposition. Any party compelled to testify or to produce documentary
evidence may be accompanied and advised by counsel, but counsel may not,
as a matter or right, otherwise participate in the investigation. [Rule
290.]



Sec. 502.291  Nonpublic proceedings.

    Unless otherwise ordered by the Commission, all investigatory
proceedings shall be nonpublic. [Rule 291.]



      Subpart S_Informal Procedure for Adjudication of Small Claims



Sec. 502.301  Statement of policy.

    (a) Section 11(a) of the Shipping Act of 1984 (46 U.S.C. 41301(a))
permits any person to file a complaint with the Commission claiming a
violation occurring in connection with the foreign commerce of the
United States and to seek reparation for any injury caused by that
violation.
    (b) With the consent of both parties, claims filed under this
subpart in the amount of $50,000 or less will be decided by a Settlement
Officer appointed by the Federal Maritime Commission Alternative Dispute
Resolution Specialist, without the necessity of formal proceedings under
the rules of this part. Authority to issue decisions under this subpart
is delegated to the appointed Settlement Officer.
    (c) Determination of claims under this subpart shall be
administratively final and conclusive. [Rule 301.]

[49 FR 44369, Nov. 6, 1984, as amended at 64 FR 7812, Feb. 17, 1999; 66
FR 43513, Aug. 20, 2001; 74 FR 50716, Oct. 1, 2009]

    Effective Date Note: At 79 FR 46715, Aug. 11, 2014, Sec. 502.301
was amended by revising

[[Page 76]]

paragraph (b), effective Nov. 7, 2014. For the convenience of the user,
the revised text is set forth as follows:



Sec. 502.301  Statement of policy.

                                * * * * *

    (b) With the consent of both parties, claims filed under this
subpart in the amount of $50,000 or less will be decided by a Small
Claims Officer appointed by the Federal Maritime Commission's Chief
Administrative Law Judge, without the necessity of formal proceedings
under the rules of this part. Authority to issue decisions under this
subpart is delegated to the appointed Small Claims Officer.

                                * * * * *



Sec. 502.302  Limitations of actions.

    (a) Claims alleging violations of the Shipping Act of 1984 must be
filed within three years from the time the cause of action accrues.
    (b) A claim is deemed filed on the date it is received by the
Commission. [Rule 302.]

[49 FR 44369, Nov. 6, 1984, as amended at 64 FR 7812, Feb. 17, 1999]



Sec. 502.303  [Reserved]



Sec. 502.304  Procedure and filing fee.

    (a) A sworn claim under this subpart shall be filed in the form
prescribed in Exhibit No. 1 to this subpart. Three (3) copies of this
claim must be filed, together with the same number of copies of such
supporting documents as may be deemed necessary to establish the claim.
Copies of tariff pages need not be filed; reference to such tariffs or
to pertinent parts thereof will be sufficient. Supporting documents may
consist of affidavits, correspondence, bills of lading, paid freight
bills, export declarations, dock or wharf receipts, or of such other
documents as, in the judgment of the claimant, tend to establish the
claim. The Settlement Officer may, if deemed necessary, request
additional documents or information from claimants. Claimant may attach
a memorandum, brief or other document containing discussion, argument,
or legal authority in support of its claim. If a claim filed under this
subpart involves any shipment which has been the subject of a previous
claim filed with the Commission, formally or informally, full reference
to such previous claim must be given.
    (b) Claims under this subpart shall be addressed to the Office of
the Secretary, Federal Maritime Commission, Washington, DC 20573. Such
claims shall be accompanied by remittance of a $67 filing fee.
    (c) Each claim under this subpart will be acknowledged with a
reference to the Informal Docket Number assigned. The number shall
consist of a numeral(s) followed by capital ``I'' in parentheses. All
further correspondence pertaining to such claims must refer to the
assigned Informal Docket Number. If the documents filed fail to
establish a claim for which relief may be granted, the parties affected
will be so notified in writing. The claimant may thereafter, but only if
the period of limitation has not run, resubmit its claim with such
additional proof as may be necessary to establish the claim. In the
event a complaint has been amended because it failed to state a claim
upon which relief may be granted, it will be considered as a new
complaint.
    (d) A copy of each claim filed under this subpart, with attachments,
shall be served by the Settlement Officer on the respondent involved.
    (e) Within twenty-five (25) days from the date of service of the
claim, the respondent shall serve upon the claimant and file with the
Commission its response to the claim, together with an indication, in
the form prescribed in Exhibit No. 2 to this subpart, as to whether the
informal procedure provided in this subpart is consented to. Failure of
the respondent to indicate refusal or consent in its response will be
conclusively deemed to indicate such consent. The response shall consist
of documents, arguments, legal authorities, or precedents, or any other
matters considered by the respondent to be a defense to the claim. The
Settlement Officer may request the respondent to furnish such further
documents or information as deemed necessary, or he or she may require
the claimant to reply to the defenses raised by the respondent.

[[Page 77]]

    (f) If the respondent refuses to consent to the claim being
informally adjudicated pursuant to this subpart, the claim will be
considered a complaint under Sec. 502.311 and will be adjudicated under
subpart T of this part.
    (g) Both parties shall promptly be served with the Settlement
Officer's decision which shall state the basis upon which the decision
was made. Where appropriate, the Settlement Officer may require that the
respondent publish notice in its tariff of the substance of the
decision. This decision shall be final, unless, within thirty (30) days
from the date of service of the decision, the Commission exercises its
discretionary right to review the decision. The Commission shall not, on
its own initiative, review any decision or order of dismissal unless
such review is requested by an individual Commissioner. Any such request
must be transmitted to the Secretary within thirty (30) days after date
of service of the decision or order. Such request shall be sufficient to
bring the matter before the Commission for review.
    (h) Within thirty (30) days after service of a final decision by a
Settlement Officer, any party may file a petition for reconsideration.
Such petition shall be directed to the Settlement Officer and shall act
as a stay of the review period prescribed in paragraph (g) of this
section. A petition will be subject to summary rejection unless it: (1)
Specifies that there has been a change in material fact or in applicable
law, which change has occurred after issuance of the decision or order;
(2) identifies a substantive error in material fact contained in the
decision or order; (3) addresses a material matter in the Settlement
Officer's decision upon which the petitioner has not previously had the
opportunity to comment. Petitions which merely elaborate upon or repeat
arguments made prior to the decision or order will not be received. Upon
issuance of a decision or order on reconsideration by the Settlement
Officer, the review period prescribed in paragraph (g) of this section
will recommence. [Rule 304.]

[49 FR 44369, Nov. 6, 1984, as amended at 59 FR 59170, Nov. 16, 1994; 67
FR 39859, June 11, 2002; 70 FR 10329, Mar. 3, 2005]

    Effective Date Note: At 79 FR 46715, Aug. 11, 2014, Sec. 502.304
was amended in paragraphs (a), (d), (e), (g), and (h) by removing the
reference ``Settlement Officer'' and adding the reference ``Small Claims
Officer'' in its place; and in paragraphs (g) and (h) by removing the
reference ``Settlement Officer's'' and adding the reference ``Small
Claims Officer's'' in its place, effective Nov. 7, 2014.



Sec. 502.305  Applicability of other rules of this part.

    (a) Except otherwise specifically provided in this subpart or in
paragraph (b) of this section, the sections in subparts A through Q,
inclusive, of this part do not apply to situations covered by this
subpart.
    (b) The following sections in subparts A through Q of this part
apply to situations covered by this subpart: Sec. Sec. 502.2(a)
(Requirement for filing); 502.2(f)(1) (Email transmission of filings);
502.2(i) (Continuing obligation to provide contact information); 502.7
(Documents in foreign languages); 502.21-502.23 (Appearance, Authority
for representation, Notice of appearance; substitution and withdrawal of
representative); 502.43 (Substitution of parties); 502.101
(Computation); 502.117 (Certificate of service); 502.253 (Interest in
reparation proceedings); and 502.254 (Attorney's fees in reparation
proceedings). [Rule 305.]

[76 FR 10262, Feb. 24, 2011]



 Sec. Exhibit No. 1 to Subpart S [Sec. 502.304(a)] of Part 502--Small
     Claim Form for Informal Adjudication and Information Checklist

              Federal Maritime Commission, Washington, DC.

    Informal Docket No.------

________________________________________________________________________

(Claimant)
    vs.
________________________________________________________________________

(Respondent)

    I. The claimant is [state in this paragraph whether claimant is an
association, corporation, firm or partnership, and if a firm or
partnership, the names of the individuals composing the same. State the
nature and principal place of business.]
    II. The respondent named above is [state in this paragraph whether
respondent is an association, corporation, firm or partnership, and if a
firm or partnership, the names of the individuals composing the same.
State the nature and principal place of business.]

[[Page 78]]

    III. That [state in this and subsequent paragraphs to be lettered A,
B, etc., the matters that gave rise to the claim. Name specifically each
rate, charge, classification, regulation or practice which is
challenged. Refer to tariffs, tariff items or rules, or agreement
numbers, if known. If claim is based on the fact that a firm is a common
carrier, state where it is engaged in transportation by water and which
statute(s) it is subject to under the jurisdiction of the Federal
Maritime Commission].
    IV. If claim is for overcharges, state commodity, weight and cube,
origin, destination, bill of lading description, bill of lading number
and date, rate and/or charges assessed, date of delivery, date of
payment, by whom paid, rate or charge claimed to be correct and amount
claimed as overcharges. [Specify tariff item for rate or charge claimed
to be proper].
    V. State section of statute claimed to have been violated. (Not
required if claim is for overcharges).
    VI. State how claimant was injured and amount of damages requested.
    VII. The undersigned authorizes the Settlement Officer to determine
the above-stated claim pursuant to the informal procedure outlined in
subpart S (46 CFR 502.301-502.305) of the Commission's informal
procedure for adjudication of small claims subject to discretionary
Commission review.
    Attach memorandum or brief in support of claim. Also attach bill of
lading, copies of correspondence or other documents in support of claim.
________________________________________________________________________

(Date)
________________________________________________________________________

(Claimant's signature)
________________________________________________________________________

(Claimant's address)
________________________________________________________________________

(Signature of agent or attorney)
________________________________________________________________________

(Agent's or attorney's address)

                              Verification

    State of ------, County of ------, ss: ------, being first duly
sworn on oath deposes and says that he or she is
________________________________________________________________________

The claimant [or if a firm, association, or corporation, state the
capacity of the affiant] and is the person who signed the foregoing
claim, that he or she has read the foregoing and that the facts set
forth without qualification are true and that the facts stated therein
upon information received from others, affiant believes to be true.

________________________________________________________________________

Subscribed and sworn to before me, a notary public in and for the State
of ------, County of ------, this ---- day of ------ 19--. (Seal)

________________________________________________________________________

                             (Notary Public)

 My Commission expires,_________________________________________________

           Information To Assist in Filing Informal Complaints

    Informal Docket procedures are limited to claims of $50,000 or less
and are appropriate only in instances when an evidentiary hearing on
disputed facts is not necessary. Where, however, a respondent elects not
to consent to the informal procedures [See Exhibit No. 2 to subpart S],
the claim will be adjudicated by an administrative law judge under
subpart T of Part 502.
    Under the Shipping Act of 1984 [for foreign commerce], the claim
must be filed within three (3) years from the time the cause of action
accrues and may be brought against any person alleged to have violated
the 1984 Act to the injury of claimant.
    A violation of a specific section of a particular shipping statute
must be alleged.
    The format of Exhibit No. 1 must be followed and a verification must
be included. (See Sec. Sec. 502.21-502.32, 502.112, and 502.304.) An
original and two (2) copies of the claim and all attachments, including
a brief in support of the claim, must be submitted.

[49 FR 44369, Nov. 6, 1984; 49 FR 47394, Dec. 4, 1984, as amended at 55
FR 28400, July 11, 1990; 64 FR 7812, Feb. 17, 1999; 76 FR 10262, Feb.
24, 2011]

    Effective Date Note: At 79 FR 46715, Aug. 11, 2014, Exhibit No. 1 to
Subpart S of Part 502 was amended by removing the reference ``Settlement
Officer'' and adding the reference ``Small Claims Officer'' in its
place, effective Nov. 7, 2014.



    Sec. Exhibit No. 2 to Subpart S [Sec. 502.304(e)] of Part 502--
           Respondent's Consent Form for Informal Adjudication

              Federal Maritime Commission, Washington, DC.

                       Informal Docket No. ------

                         Respondent's Affidavit

    I authorize the Settlement Officer to determine the above-numbered
claim in accordance with subpart S (46 CFR 502) of the Commission's
informal procedure for adjudication of small claims subject to
discretionary Commission Review.

 (Date)_________________________________________________________________

 (Signed)_______________________________________________________________

 (Capacity)_____________________________________________________________

[[Page 79]]

                              Verification

    State of ----------------------, County of --------------------, ss:
------------, being first duly sworn on oath deposes and says that he or
she is ------------------, (Title or Position) and is the person who
signed the foregoing and agrees without qualification to its truth.

________________________________________________________________________
    Subscribed and sworn to before me, a notary public in and for the
State of ----------------, County of ----------------, this ------------
day of --------------------, 19----.
(Seal)

________________________________________________________________________

(Notary Public)

 My Commission expires._________________________________________________

               Certificate of Service [See Sec. 502.320]

    Effective Date Note: At 79 FR 46715, Aug. 11, 2014, Exhibit No. 2 to
Subpart S of Part 502 was amended by removing the reference ``Settlement
Officer'' and adding the reference ``Small Claims Officer'' in its
place, effective Nov. 7, 2014.



       Subpart T_Formal Procedure for Adjudication of Small Claims



Sec. 502.311  Applicability.

    In the event the respondent elects not to consent to determination
of the claim under subpart S of this part, it shall be adjudicated by
the administrative law judges of the Commission under procedures set
forth in this subpart, if timely filed under Sec. 502.302. The
previously assigned Docket Number shall be used except that it shall now
be followed by capital ``F'' instead of ``I'' in parentheses (See Sec.
502.304(c)). The complaint shall consist of the documents submitted by
the claimant under subpart S of this part. [Rule 311.]



Sec. 502.312  Answer to complaint.

    The respondent shall file with the Commission an answer within
twenty-five (25) days of service of the complaint and shall serve a copy
of said answer upon complainant. The answer shall admit or deny each
matter set forth in the complaint. Matters not specifically denied will
be deemed admitted. Where matters are urged in defense, the answer shall
be accompanied by appropriate affidavits, other documents, and
memoranda. [Rule 312.]

[49 FR 44369, Nov. 6, 1984; 49 FR 47394, Dec. 4, 1984]



Sec. 502.313  Reply of complainant.

    Complainant may, within twenty (20) days of service of the answer
filed by respondent, file with the Commission and serve upon the
respondent a reply memorandum accompanied by appropriate affidavits and
supporting documents. [Rule 313.]



Sec. 502.314  Additional information.

    The administrative law judge may require the submission of
additional affidavits, documents, or memoranda from complainant or
respondent. [Rule 314.]



Sec. 502.315  Request for oral hearing.

    In the usual course of disposition of complaints filed under this
subpart, no oral hearing will be held, but, the administrative law
judge, in his or her discretion, may order such hearing. A request for
oral hearing may be incorporated in the answer or in complainant's reply
to the answer. Requests for oral hearing will not be entertained unless
they set forth in detail the reasons why the filing of affidavits or
other documents will not permit the fair and expeditious disposition of
the claim, and the precise nature of the facts sought to be proved at
such oral hearing. The administrative law judge shall rule upon a
request for oral hearing within ten (10) days of its receipt. In the
event an oral hearing is ordered, it will be held in accordance with the
rules applicable to other formal proceedings, as set forth in subparts A
through Q of this part. [Rule 315.]

[49 FR 44369, Nov. 6, 1984; 49 FR 47394, Dec. 4, 1984]



Sec. 502.316  Intervention.

    Intervention will ordinarily not be permitted. [Rule 316.]



Sec. 502.317  Oral argument.

    No oral argument will be held unless otherwise directed by the
administrative law judge. [Rule 317.]

[[Page 80]]



Sec. 502.318  Decision.

    (a) The decision of the administrative law judge shall be final,
unless, within twenty-two (22) days from the date of service of the
decision, either party requests review of the decision by the
Commission, asserting as grounds therefor that a material finding of
fact or a necessary legal conclusion is erroneous or that prejudicial
error has occurred, or unless, within thirty (30) days from the date of
service of the decision, the Commission exercises its discretionary
right to review the decision. The Commission shall not, on its own
initiative, review any decision or order of dismissal unless such review
is requested by an individual Commissioner. Any such request must be
transmitted to the Secretary within thirty (30) days after date of
service of the decision or order. Such request shall be sufficient to
bring the matter before the Commission for review. [Rule 318.]
    (b) If the complainant is awarded reparations pursuant to section 11
of the Shipping Act of 1984 (46 U.S.C. 41301-41302, 41305-41307(a)),
attorney's fees shall also be awarded in accordance with Sec. 502.254
of this part. [Rule 318.]

[49 FR 44369, Nov. 6, 1984, as amended at 52 FR 6332, Mar. 3, 1987; 74
FR 50717, Oct. 1, 2009]



Sec. 502.319  Date of service and computation of time.

    The date of service of documents served by the Commission shall be
that which is shown in the service stamp thereon. The date of service of
documents served by parties shall be the date when the matter served is
mailed or delivered in person, as the case may be. When the period of
time prescribed or allowed is ten (10) days or less, intermediate
Saturdays, Sundays, and holidays shall be excluded from the computation.
[Rule 319.]



Sec. 502.320  Service.

    All claims, resubmitted claims, petitions to intervene and rulings
thereon, notices of oral hearings, notices of oral arguments (if
necessary), decisions of the administrative law judge, notices of
review, and Commission decisions shall be served by the administrative
law judge or the Commission. All other pleadings, documents and filings
shall, when tendered to the Commission, evidence service upon all
parties to the proceeding. Such certificate shall be in substantially
the following form:

                         Certificate of Service

    I hereby certify that I have this day served the foregoing document
upon all parties of record in this proceeding by [mailing, delivering to
courier, or delivering in person], a copy to each such person in
sufficient time to reach such person on the date the document is due to
be filed with the Commission.

    Dated at -------------------- this ---------------- day of --------
----------, 19----.

 (Signature)____________________________________________________________

 (For)__________________________________________________________________

[Rule 320.]



Sec. 502.321  Applicability of other rules of this part.

    (a) Except otherwise specifically provided in this subpart or in
paragraph (b) of this section, the sections in subparts A through Q,
inclusive, of this part do not apply to situations covered by this
subpart.
    (b) The following sections in subparts A through Q apply to
situations covered by this subpart: Sec. Sec. 502.2(a) (Requirement for
filing); 502.2(f)(1) (E-mail transmission of filings); 502.2(i)
(Continuing obligation to provide contact information); 502.7 (Documents
in foreign languages); 502.21-502.23 (Appearance, Authority for
representation, Notice of appearance; substitution and withdrawal of
representative); 502.43 (Substitution of parties); 502.253 (Interest in
reparation proceedings); and 502.254 (Attorney's fees in reparation
proceedings). [Rule 321.]

[76 FR 10262, Feb. 24, 2011]



                Subpart U_Alternative Dispute Resolution

    Source: 66 FR 43513, Aug. 20, 2001, unless otherwise noted.



Sec. 502.401  Policy.

    It is the policy of the Federal Maritime Commission to use
alternative means of dispute resolution to the fullest extent compatible
with the law and the agency's mission and resources.

[[Page 81]]

The Commission will consider using ADR in all areas including workplace
issues, formal and informal adjudication, issuance of regulations,
enforcement and compliance, issuing and revoking licenses and permits,
contract award and administration, litigation brought by or against the
Commission, and other interactions with the public and the regulated
community. The Commission will provide learning and development
opportunities for its employees to develop their ability to use conflict
resolution skills, instill knowledge of the theory and practice of ADR,
and to facilitate appropriate use of ADR. To this end, all parties to
matters under this part are required to consider use of a wide range of
alternative means to resolve disputes at an early stage. Parties are
encouraged to pursue use of alternative means through the Commission's
Office of Consumer Affairs and Dispute Resolution Services in lieu of or
prior to initiating a Commission proceeding. All employees and persons
who interact with the Commission are encouraged to identify
opportunities for collaborative, consensual approaches to dispute
resolution or rulemaking.

[66 FR 43513, Aug. 20, 2001, as amended at 70 FR 7669, Feb. 15, 2005; 70
FR 44867, Aug. 4, 2005]



Sec. 502.402  Definitions.

    (a) Alternative means of dispute resolution means any procedure that
is used to resolve issues in controversy, including, but not limited to,
conciliation, facilitation, mediation, factfinding, minitrials,
arbitration, and use of ombuds, or any combination thereof;
    (b) Award means any decision by an arbitrator resolving the issues
in controversy;
    (c) Dispute resolution communication means any oral or written
communication prepared for the purposes of a dispute resolution
proceeding, including any memoranda, notes or work product of the
neutral, parties or nonparty participant; except that a written
agreement to enter into a dispute resolution proceeding, or final
written agreement or arbitral award reached as a result of a dispute
resolution proceeding, is not a dispute resolution communication;
    (d) Dispute resolution proceeding means any process in which an
alternative means of dispute resolution is used to resolve an issue in
controversy in which a neutral is appointed and specified parties
participate;
    (e) In confidence means, with respect to information, that the
information is provided--
    (1) With the expressed intent of the source that it not be
disclosed; or
    (2) Under circumstances that would create the reasonable expectation
on behalf of the source that the information will not be disclosed;
    (f) Issue in controversy means an issue which is material to a
decision concerning a program of the Commission, and with which there is
disagreement--
    (1) Between the Commission and persons who would be substantially
affected by the decision; or
    (2) Between persons who would be substantially affected by the
decision;
    (g) Neutral means an individual who, with respect to an issue in
controversy, functions specifically to aid the parties in resolving the
controversy; and
    (h) Person has the same meaning as in 5 U.S.C. 551(2).



Sec. 502.403  General authority.

    (a) The Commission intends to consider using a dispute resolution
proceeding for the resolution of an issue in controversy, if the parties
agree to a dispute resolution proceeding.
    (b) The Commission will consider not using a dispute resolution
proceeding if--
    (1) A definitive or authoritative resolution of the matter is
required for precedential value, and such a proceeding is not likely to
be accepted generally as an authoritative precedent;
    (2) The matter involves or may bear upon significant questions of
Government policy that require additional procedures before a final
resolution may be made, and such a proceeding would not likely serve to
develop a recommended policy for the agency;
    (3) Maintaining established policies is of special importance, so
that variations among individual decisions are not increased and such a
proceeding would not likely reach consistent results among individual
decisions;

[[Page 82]]

    (4) The matter significantly affects persons or organizations who
are not parties to the proceeding;
    (5) A full public record of the proceeding is important, and a
dispute resolution proceeding cannot provide such a record; and
    (6) The Commission must maintain continuing jurisdiction over the
matter with authority to alter the disposition of the matter in the
light of changed circumstances, and a dispute resolution proceeding
would interfere with the Commission's fulfilling that requirement.
    (c) Alternative means of dispute resolution authorized under this
subpart are voluntary procedures which supplement rather than limit
other available agency dispute resolution techniques.



Sec. 502.404  Neutrals.

    (a) A neutral may be a permanent or temporary officer or employee of
the Federal Government or any other individual who is acceptable to the
parties to a dispute resolution proceeding. A neutral shall have no
official, financial, or personal conflict of interest with respect to
the issues in controversy, unless such interest is fully disclosed in
writing to all parties and all parties agree that the neutral may serve.
    (b) A neutral who serves as a conciliator, facilitator, or mediator
serves at the will of the parties.
    (c) With consent of the parties, the Federal Maritime Commission
Dispute Resolution Specialist will seek to provide a neutral in dispute
resolution proceedings through Commission staff, arrangements with other
agencies, or on a contractual basis.
    (d) Fees. Should the parties choose a neutral other than an official
or employee of the Commission, fees and expenses shall be borne by the
parties as the parties shall agree.



Sec. 502.405  Confidentiality.

    (a) Except as provided in paragraphs (d) and (e) of this section, a
neutral in a dispute resolution proceeding shall not voluntarily
disclose or through discovery or compulsory process be required to
disclose any dispute resolution communication or any communication
provided in confidence to the neutral, unless--
    (1) All parties to the dispute resolution proceeding and the neutral
consent in writing, and, if the dispute resolution communication was
provided by a nonparty participant, that participant also consents in
writing;
    (2) The dispute resolution communication has already been made
public;
    (3) The dispute resolution communication is required by statute to
be made public, but a neutral should make such communication public only
if no other person is reasonably available to disclose the
communication; or
    (4) A court determines that such testimony or disclosure is
necessary to--
    (i) Prevent a manifest injustice;
    (ii) Help establish a violation of law; or
    (iii) Prevent harm to the public health or safety, of sufficient
magnitude in the particular case to outweigh the integrity of dispute
resolution proceedings in general by reducing the confidence of parties
in future cases that their communications will remain confidential.
    (b) A party to a dispute resolution proceeding shall not voluntarily
disclose or through discovery or compulsory process be required to
disclose any dispute resolution communication, unless--
    (1) The communication was prepared by the party seeking disclosure;
    (2) All parties to the dispute resolution proceeding consent in
writing;
    (3) The dispute resolution communication has already been made
public;
    (4) The dispute resolution communication is required by statute to
be made public;
    (5) A court determines that such testimony or disclosure is
necessary to--
    (i) Prevent a manifest injustice;
    (ii) Help establish a violation of law; or
    (iii) Prevent harm to the public health and safety, of sufficient
magnitude in the particular case to outweigh the integrity of dispute
resolution proceedings in general by reducing the confidence of parties
in future cases that their communications will remain confidential;
    (6) The dispute resolution communication is relevant to determining
the

[[Page 83]]

existence or meaning of an agreement or award that resulted from the
dispute resolution proceeding or to the enforcement of such an agreement
or award; or
    (7) Except for dispute resolution communications generated by the
neutral, the dispute resolution communication was provided to or was
available to all parties to the dispute resolution proceeding.
    (c) Any dispute resolution communication that is disclosed in
violation of paragraph (a) or (b) of this section shall not be
admissible in any proceeding relating to the issues in controversy with
respect to which the communication was made.
    (d) (1) The parties may agree between or amongst themselves to
alternative confidential procedures for disclosures by a neutral, and
shall inform the neutral before commencement of the dispute resolution
proceeding of any modifications to the provisions of paragraph (a) of
this section that will govern the confidentiality of the dispute
resolution proceeding, in accordance with the guidance on
confidentiality in federal proceedings published by the Interagency ADR
Working Group and adopted by the ADR Council (http://www.financenet.gov/
financenet/fed/iadrwg/confid.pdf). If the parties do not so inform the
neutral, paragraph (a) of this section shall apply.
    (2) To qualify for the exemption under paragraph (j) of this
section, an alternative confidential procedure under this subsection may
not provide for less disclosure than the confidential procedures
otherwise provided under this section.
    (e) If a demand for disclosure, by way of discovery request or other
legal process, is made upon a neutral regarding a dispute resolution
communication, the neutral shall make reasonable efforts to notify the
parties and any affected nonparty participants of the demand. Any party
or affected nonparty participant who receives such notice and within 15
calendar days does not offer to defend a refusal of the neutral to
disclose the requested information shall have waived any objection to
such disclosure.
    (f) Nothing in this section shall prevent the discovery or
admissibility of any evidence that is otherwise discoverable, merely
because the evidence was presented in the course of a dispute resolution
proceeding.
    (g) Paragraphs (a) and (b) of this section shall have no effect on
the information and data that are necessary to document an agreement
reached or order issued pursuant to a dispute resolution proceeding.
    (h) Paragraphs (a) and (b) of this section shall not prevent the
gathering of information for research or educational purposes, in
cooperation with other agencies, governmental entities, or dispute
resolution programs, so long as the parties and the specific issues in
controversy are not identifiable.
    (i) Paragraphs (a) and (b) of this section shall not prevent use of
a dispute resolution communication to resolve a dispute between the
neutral in a dispute resolution proceeding and a party to or participant
in such proceeding, so long as such dispute resolution communication is
disclosed only to the extent necessary to resolve such dispute.
    (j) A dispute resolution communication which is between a neutral
and a party and which may not be disclosed under this section shall also
be exempt from disclosure under 5 U.S.C. 552(b)(3).



Sec. 502.406  Arbitration.

    (a)(1) Arbitration may be used as an alternative means of dispute
resolution whenever all parties consent, except that arbitration may not
be used when the Commission or one of its components is a party. Consent
may be obtained either before or after an issue in controversy has
arisen. A party may agree to--
    (i) Submit only certain issues in controversy to arbitration; or
    (ii) Arbitration on the condition that the award must be within a
range of possible outcomes.
    (2) The arbitration agreement that sets forth the subject matter
submitted to the arbitrator shall be in writing. Each such arbitration
agreement shall specify a maximum award that may be issued by the
arbitrator and may specify other conditions limiting the range of
possible outcomes.
    (b) With the concurrence of the Federal Maritime Commission Dispute

[[Page 84]]

Resolution Specialist, binding arbitration may be used to resolve any
and all disputes that could be the subject of a Commission
administrative proceeding before an Administrative Law Judge. The
Federal Maritime Commission Dispute Resolution Specialist may withhold
such concurrence after considering the factors specified in Sec.
502.403, should the Commission's General Counsel object to use of
binding arbitration.
    (c)(1) The Federal Maritime Commission Dispute Resolution Specialist
will appoint an arbitrator of the parties' choosing for an arbitration
proceeding.
    (2) A Commission officer or employee selected as an arbitrator by
the parties and appointed by the Federal Maritime Commission Dispute
Resolution Specialist shall have authority to settle an issue in
controversy through binding arbitration pursuant to the arbitration
agreement; provided, however, that decisions by arbitrators shall not
have precedential value with respect to decisions by Administrative Law
Judges or the Commission. Administrative Law Judges may be appointed as
arbitrators with the concurrence of the Chief Administrative Law Judge.
    (d) The arbitrator shall be a neutral who meets the criteria of 5
U.S.C. 573.



Sec. 502.407  Authority of the arbitrator.

    An arbitrator to whom a dispute is referred may--
    (a) Regulate the course of and conduct arbitral hearings;
    (b) Administer oaths and affirmations;
    (c) Compel the attendance of witnesses and production of evidence at
the hearing under the provisions of 9 U.S.C. 7 only to the extent the
Commission is otherwise authorized by law to do so; and
    (d) Make awards.



Sec. 502.408  Conduct of arbitration proceedings.

    (a) The arbitrator shall set a time and place for the hearing on the
dispute and shall notify the parties not less than five days before the
hearing.
    (b) Any party wishing a record of the hearing shall--
    (1) Be responsible for the preparation of such record;
    (2) Notify the other parties and the arbitrator of the preparation
of such record;
    (3) Furnish copies to all identified parties and the arbitrator; and
    (4) Pay all costs for such record, unless the parties agree
otherwise or the arbitrator determines that the costs should be
apportioned.
    (c)(1) The parties to the arbitration are entitled to be heard, to
present evidence material to the controversy, and to cross-examine
witnesses appearing at the hearing.
    (2) The arbitrator may, with the consent of the parties, conduct all
or part of the hearing by telephone, television, computer, or other
electronic means, if each party has an opportunity to participate.
    (3) The hearing shall be conducted expeditiously and in an informal
manner.
    (4) The arbitrator may receive any oral or documentary evidence,
except that irrelevant, immaterial, unduly repetitious, or privileged
evidence may be excluded by the arbitrator.
    (5) The arbitrator shall interpret and apply relevant statutory and
regulatory requirements, legal precedents, and policy directives.
    (d) The provisions of Sec. 502.11 regarding ex parte communications
apply to all arbitration proceedings. No interested person shall make or
knowingly cause to be made to the arbitrator an unauthorized ex parte
communication relevant to the merits of the proceeding, unless the
parties agree otherwise. If a communication is made in violation of this
subsection, the arbitrator shall ensure that a memorandum of the
communication is prepared and made a part of the record, and that an
opportunity for rebuttal is allowed. Upon receipt of a communication
made in violation of this subsection, the arbitrator may, to the extent
consistent with the interests of justice and the policies underlying
this subchapter, require the offending party to show cause why the claim
of such party should not be resolved against such party as a result of
the improper conduct.
    (e) The arbitrator shall make an award within 30 days after the
close of the hearing, or the date of the filing of any briefs authorized
by the arbitrator,

[[Page 85]]

whichever date is later, unless the parties agree to some other time
limit.



Sec. 502.409  Arbitration awards.

    (a)(1) The award in an arbitration proceeding under this subchapter
shall include a brief, informal discussion of the factual and legal
basis for the award, but formal findings of fact or conclusions of law
shall not be required.
    (2) Exceptions to or an appeal of an arbitrator's decision may not
be filed with the Commission.
    (b) An award entered in an arbitration proceeding may not serve as
an estoppel in any other proceeding for any issue that was resolved in
the proceeding. Such an award also may not be used as precedent or
otherwise be considered in any factually unrelated proceeding.



Sec. 502.410  Representation of parties.

    (a) The provisions of Sec. 502.21 apply to the representation of
parties in dispute resolution proceedings, as do the provisions of Sec.
502.27 regarding the representation of parties by nonattorneys.
    (b) A neutral in a dispute resolution proceeding may require
participants to demonstrate authority to enter into a binding agreement
reached by means of a dispute resolution proceeding.



Sec. 502.411  Mediation and other alternative means of dispute
resolution.

    (a) Parties are encouraged to utilize mediation or other forms of
alternative dispute resolution in all formal proceedings. The Commission
also encourages those with disputes to pursue mediation in lieu of, or
prior to, the initiation of a Commission proceeding.
    (b) Any party may request, at any time, that a mediator or other
neutral be appointed to assist the parties in reaching a settlement. If
such a request is made in a proceeding assigned to an Administrative Law
Judge, the provisions of Sec. 502.91 apply. For all other matters,
alternative dispute resolution services may be requested directly from
the Federal Maritime Commission Alternative Dispute Resolution
Specialist, who may serve as the neutral if the parties agree or who
will arrange for the appointment of a neutral acceptable to all parties.
    (c) The neutral shall convene and conduct mediation or other
appropriate dispute resolution proceedings with the parties.
    (d) Ex parte Communications. Except with respect to arbitration, the
provisions of Sec. 502.11 do not apply to dispute resolution
proceedings, and mediators are expressly authorized to conduct private
sessions with parties.



     Subpart V_Implementation of the Equal Access to Justice Act in
                         Commission Proceedings

    Source: 52 FR 28264, July 29, 1987, unless otherwise noted.



Sec. 502.501  General provisions.

    (a) Purpose. The Equal Access to Justice Act, 5 U.S.C. 504
(``EAJA''), provides for the award of attorney fees and other expenses
to eligible individuals and entities who are parties to certain
administrative proceedings (called ``adversary adjudications'') before
the Federal Maritime Commission (``the Commission''). An eligible party
may receive an award when it prevails over an agency, unless the
agency's position was substantially justified or special circumstances
make an award unjust. The rules in this subpart describe the parties
eligible for awards and the proceedings that are covered. They also
explain how to apply for awards, and the procedures and standards that
the Commission will use to make them.
    (b) When EAJA applies. EAJA applies to any adversary adjudication:
    (1) Pending or commenced before the Commission on or after August 5,
1985;
    (2) Commenced on or after October 1, 1984, and finally disposed of
before August 5, 1985, provided that an application for fees and
expenses, as described in Sec. 502.502 of this subpart, has been filed
with the Commission within 30 days after August 5, 1985; or
    (3) Pending on or commenced on or after October 1, 1981, in which an
application for fees and other expenses was timely filed and was
dismissed for lack of jurisdiction.
    (c) Proceedings covered. (1)(i) EAJA applies to adversary
adjudications conducted by the Commission under this part. These are
adjudications under 5 U.S.C. 554 in which the position of this

[[Page 86]]

or any other agency of the United States, or any component of any
agency, is presented by an attorney or other representative who enters
an appearance and participates in the proceeding.
    (ii) Any proceeding in which the Commission may prescribe a lawful
present or future rate is not covered by the Act.
    (iii) Proceedings to grant or renew licenses are also excluded, but
proceedings to modify, suspend, or revoke licenses are covered if they
are otherwise ``adversary adjudications.''
    (2) The Commission's failure to identify a type of proceeding as an
adversary adjudication shall not preclude the filing of an application
by a party who believes the proceeding is covered by the EAJA; whether
the proceeding is covered will then be an issue for resolution in
proceedings on the application.
    (3) If a proceeding includes both matters covered by EAJA and
matters specifically excluded from coverage, any award made will include
only fees and expenses related to covered issues.
    (d) Eligibility of applicants. (1) To be eligible for an award of
attorney fees and other expenses under EAJA, the applicant must be a
party to the adversary adjudication for which it seeks an award. The
term ``party'' is defined in 5 U.S.C. 551(3). The applicant must show
that it meets all conditions of eligibility set out in this section and
Sec. 502.502.
    (2) The types of eligible applicants are:
    (i) An individual with a net worth of not more than $2 million;
    (ii) The sole owner of an unincorporated business who has a net
worth of not more than $7 million, including both personal and business
interests, and not more than 500 employees;
    (iii) A charitable or other tax-exempt organization described in
section 501(c)(3) of the Internal Revenue Code (26 U.S.C. 501(c)(3))
with not more than 500 employees;
    (iv) A cooperative association as defined in section 15(a) of the
Agricultural Marketing Act (12 U.S.C. 1141j(a)) with not more than 500
employees; and
    (v) Any other partnership, corporation, association, unit of local
government, or organization with a net worth of not more than $7 million
and not more than 500 employees.
    (vi) For purposes of paragraph (e)(3) of this section, a small
entity as defined in 5 U.S.C. 601.
    (3) For the purpose of eligibility, the net worth and number of
employees of an applicant shall be determined as of the date the
proceeding was initiated.
    (4) An applicant who owns an unincorporated business will be
considered as an ``individual'' rather than a ``sole owner of an
unincorporated business'' if the issues on which the applicant prevails
are related primarily to personal interests rather than to business
interests.
    (5) The employees of an applicant include all persons who regularly
perform services for remuneration for the applicant, under the
applicant's direction and control. Part-time employees shall be included
on a proportional basis.
    (6) The net worth and number of employees of the applicant and all
of its affiliates shall be aggregated to determine eligibility. Any
individual corporation or other entity that directly or indirectly
controls or owns a majority of the voting shares or other interests of
the applicant, or any corporation or other entity of which the applicant
directly or indirectly owns or controls a majority of the voting shares
or other interests, will be considered an affiliate for purposes of this
subpart, unless the adjudicative officer determines that such treatment
would be unjust and contrary to the purposes of EAJA in light of the
actual relationship between the affiliated entities. In addition, the
adjudicative officer may determine that financial relationships of the
applicant other than those described in this paragraph constitute
special circumstances that would make an award unjust.
    (7) An applicant that participates in a proceeding primarily on
behalf of one or more other persons or entities that would be ineligible
is not itself eligible for an award.
    (e) Standards for awards. (1) A prevailing applicant may receive an
award

[[Page 87]]

for fees and expenses incurred in connection with a proceeding or in a
significant and discrete substantive portion of the proceeding, unless
the position of the agency over which the applicant has prevailed was
substantially justified. The position of the agency includes, in
addition to the position taken by the agency in the adversary
adjudication, the action or failure to act by the agency upon which the
adversary adjudication is based. The burden of proof that an award
should not be made to an eligible prevailing applicant is on agency
counsel.
    (2) An award will be reduced or denied if the applicant has unduly
or unreasonably protracted the proceeding or if special circumstances
make the award sought unjust.
    (3) In an adversary adjudication arising from a Commission action to
enforce a party's compliance with a statutory or regulatory requirement,
if the demand by the Commission is substantially in excess of the
decision of the presiding officer and is unreasonable under the facts
and circumstances of the case, the presiding officer shall award to the
party fees and other expenses related to defending against the excessive
demand, unless the party has committed a willful violation of law or
otherwise acted in bad faith, or special circumstances make an award
unjust.
    (f) Allowable fees and expenses. (1) Awards will be based on rates
customarily charged by the persons engaged in the business of acting as
attorneys, agents and expert witnesses, even if the services were made
available without charge or at a reduced rate to the applicant.
    (2) No award for the fee of an attorney or agent under this subpart
may exceed $125 per hour. No award to compensate an expert witness may
exceed the highest rate at which the Commission pays expert witnesses.
However, an award may also include the reasonable expenses of the
attorney, agent, or witness as a separate item, if the attorney, agent
or witness ordinarily charges clients separately for such expenses.
    (3) In determining the reasonableness of the fee sought for an
attorney, agent or expert witness, the adjudicative officer shall
consider the following:
    (i) If the attorney, agent or witness is in private practice, his or
her customary fees for similar services, or, if an employee of the
applicant, the fully allocated costs of the services;
    (ii) The prevailing rate for similar services in the community in
which the attorney, agent or witness ordinarily performs services;
    (iii) The time actually spent in the representation of the
applicant;
    (iv) The time reasonably spent in light of the difficulty or
complexity of the issues in the proceeding; and
    (v) Such other factors as may bear on the value of the services
provided.
    (4) The reasonable cost of any study, analysis, engineering report,
test project or similar matter prepared on behalf of a party may be
awarded, to the extent that the charge for the services does not exceed
the prevailing rate for similar services, and the study or other matter
was necessary for preparation of applicant's case.
    (g) Awards against other agencies. If an applicant is entitled to an
award because it prevails over another agency of the United States that
participates in a proceeding before the Commission and takes a position
that is not substantially justified, the award or an appropriate portion
of the award shall be made against that agency. [Rule 501.]

[52 FR 28264, July 29, 1987, as amended at 64 FR 7812, Feb. 17, 1999]



Sec. 502.502  Information required from applicants.

    (a) Contents of petition. (1) An application for an award of fees
and expenses under EAJA shall be by petition under Sec. 502.69 of this
part, shall clearly indicate that the application is made under EAJA,
and shall identify the applicant and the proceeding (including docket
number) for which an award is sought. The application shall show that
the applicant has prevailed and identify the position of an agency or
agencies that the applicant alleges was not substantially justified.
Unless the applicant is an individual, the application shall also state
the number of employees of the applicant and describe briefly the type
and purpose of its organization or business.
    (2) The petition shall also include a statement that the applicant's
net

[[Page 88]]

worth does not exceed $2 million (if an individual) or $7 million (for
all other applicants, including their affiliates). However, an applicant
may omit this statement if:
    (i) It attaches a copy of a ruling by the Internal Revenue Service
that it qualifies as an organization described in section 501(c)(3) of
the Internal Revenue Code (26 U.S.C. 501(c)(3)) or, in the case of a
tax-exempt organization not required to obtain a ruling from the
Internal Revenue Service on its exempt status, a statement that
describes the basis for the applicant's belief that it qualifies under
such section; or
    (ii) It states that it is a cooperative association as defined in
section 15(a) of the Agricultural Marketing Act (12 U.S.C. 1141j(a)).
    (3) The petition shall state the amount of fees and expenses for
which an award is sought.
    (4) The petition may also include any other matters that the
applicant wishes the Commission to consider in determining whether and
in what amount an award should be made.
    (5) The petition shall be signed by the applicant or an authorized
officer or attorney of the applicant. It shall also contain or be
accompanied by a written verification under oath or under penalty of
perjury that the information provided in the application is true and
correct.
    (b) Net worth exhibit. (1) Each applicant except a qualified tax-
exempt organization or cooperative association must provide with its
petition a detailed exhibit showing the net worth of the applicant and
any affiliates (as defined in Sec. 502.501(d)(6) of this subpart) when
the proceeding was initiated. The exhibit may be in any form convenient
to the applicant that provides full disclosure of the applicant's and
its affiliates' assets and liabilities and is sufficient to determine
whether the applicant qualifies under the standards in this subpart. The
adjudicative officer may require an applicant to file additional
information to determine its eligibility for an award.
    (2) Ordinarily, the net worth exhibit will be included in the public
record of the proceeding. However, an applicant that objects to public
disclosure of information in any portion of the exhibit and believes
there are legal grounds for withholding it from disclosure may submit
that portion of the exhibit directly to the adjudicative officer in a
sealed envelope labeled ``Confidential Financial Information,''
accompanied by a motion to withhold the information from public
disclosure. The motion shall describe the information sought to be
withheld and explain, in detail, why it falls within one or more of the
specific exemptions from mandatory disclosure under the Freedom of
Information Act, 5 U.S.C. 552(b)(1)-(9), why public disclosure of the
information would adversely affect the applicant, and why disclosure is
not required in the public interest. The material in question shall be
served on counsel representing the agency against which the applicant
seeks an award, but need not be served on any other party to the
proceeding. If the adjudicative officer finds that the information
should not be withheld from disclosure, it shall be placed in the public
record of the proceeding. Otherwise, any request to inspect or copy the
exhibit shall be disposed of in accordance with the Commission's
established procedures under the Freedom of Information Act under
Sec. Sec. 503.31-503.43 of this chapter.
    (c) Documentation of fees and expenses. The petition shall be
accompanied by full documentation of the fees and expenses, including
the cost of any study, analysis, engineering report, test, project or
similar matter, for which an award is sought. A separate itemized
statement shall be submitted for each professional firm or individual
whose services are covered by the application, showing the hours spent
in connection with the proceeding by each individual, a description of
the specific services performed, the rates at which each fee has been
computed, any expenses for which reinbursement is sought, the total
amount claimed, and the total amount paid or payable by the applicant or
by any other person or entity for the services provided. The
adjudicative officer may require the applicant to provide vouchers,
receipts, or other substantiation for any expenses claimed.

[[Page 89]]

    (d) When a petition may be filed. (1) A petition may be filed
whenever the applicant has prevailed in the proceeding or in a
significant and discrete substantive portion of the proceeding, but in
no case later than 30 days after the Commission's final disposition of
the proceeding.
    (2) For purposes of this subpart, final disposition means the date
on which a decision or order disposing of the merits of the proceeding
or any other complete resolution of the proceeding, such as a settlement
or voluntary dismissal, becomes final and unappealable, both within the
Commission and to the courts.
    (3) If review or reconsideration is sought or taken of a decision as
to which an applicant believes it has prevailed, proceedings for the
award of fees shall be stayed pending final disposition of the
underlying controversy. When the United States appeals the underlying
merits of an adversary adjudication to a court, no decision on an
application for fees and other expenses in connection with that
adversary adjudication shall be made until a final and unreviewable
decision is rendered by the court on the appeal or until the underlying
merits of the case have been finally determined pursuant to the appeal.
[Rule 502.]

[52 FR 28264, July 29, 1987, as amended at 64 FR 7812, Feb. 17, 1999]



Sec. 502.503  Procedures for considering petitions.

    (a) Filing and service of documents. (1) Any petition for an award
or other pleading or document related to a petition shall be filed and
served on all parties to the proceeding in the same manner as other
pleadings in the proceeding, except as provided in Sec. 502.502(b)(2)
(confidential financial information).
    (2) The petition and all other pleadings or documents related to the
petition will be referred to an Administrative Law Judge to initially
decide the matter as adjudicative officer.
    (b) Reply to petition. (1) Within 30 days after service of a
petition, counsel representing the agency against which an award is
sought may file a reply to the petition. Unless counsel requests an
extension of time for filing or files a statement of intent to negotiate
under paragraph (b)(2) of this section, failure to file a reply within
the 30-day period may be treated as a consent to the award requested.
    (2) If agency counsel and the applicant believe that the issues in
the fee application can be settled, they may jointly file a statement of
their intent to negotiate a settlement. The filing of this statement
shall extend the time for filing a reply for an additional 30 days, and
further extension may be granted by the adjudicative officer upon
request by agency counsel and the applicant.
    (3) The reply shall explain in detail any objections to the award
requested and identify the facts relied on in support of counsel's
position. If the reply is based on any alleged facts not already in the
record of the proceeding, agency counsel shall include with the reply
either supporting affidavits or a request for further proceedings under
paragraph (f) of this section.
    (c) Response to reply. Within 15 days after service of a reply, the
applicant may file a response. If the response is based on any alleged
facts not already in the record of the proceeding, the applicant shall
include with the response either supporting affidavits or a request for
further proceedings under paragraph (f) of this section.
    (d) Comments by other parties. Any party to a proceeding other than
the applicant and agency counsel may file comments on an application
within 30 days after it is served, or on a reply, within 15 days after
it is served. A commenting party may not participate further in
proceedings on the application unless the adjudicative officer
determines that the public interest requires such participation in order
to permit full exploration of matters raised in the comments.
    (e) Settlement. The applicant and agency counsel may agree on a
proposed settlement of the award before final action on the application,
either in connection with a settlement of the underlying proceeding, or
after the underlying proceeding has been concluded in accordance with
the rules of this subpart pertaining to settlement. If a prevailing
party and agency counsel agree on a proposed settlement of an

[[Page 90]]

award before a petition is filed, the petition shall be filed with the
proposed settlement.
    (f) Further proceedings. (1) Ordinarily, the determination of an
award will be made on the basis of the written record. However, on
request of either the applicant or agency counsel, or on his or her own
initiative, the adjudicative officer may order further proceedings, such
as an informal conference, oral argument, additional written submissions
or, as to issues other than substantial justification (such as the
applicant's eligibility or substantiation of fees and expenses),
pertinent discovery or an evidentiary hearing. Such further proceedings
shall be held only when necessary for full and fair resolution of the
issues arising from the application, and shall be conducted as promptly
as possible. Whether or not the position of the agency was substantially
justified shall be determined on the basis of the administrative record,
as a whole, which is made in the adversary adjudication for which fees
and other expenses are sought.
    (2) A request that the adjudicative officer order further
proceedings under this section shall specifically identify the
information sought or the disputed issues and shall explain why the
additional proceedings are necessary to resolve the issues.
    (g) Decision. The adjudicative officer shall serve an initial
decision on the application within 60 days after completion of
proceedings on the application. The decision shall include written
findings and conclusions on the applicant's eligibility and status as a
prevailing party, and an explanation of the reasons for any difference
between the amount requested and the amount awarded. The decision shall
also include, if at issue, findings on whether the agency's position was
substantially justified, whether the applicant unduly protracted the
proceedings, or whether special circumstances make an award unjust. If
the applicant has sought an award against more than one agency, the
decision shall allocate responsibility for payment of any award made
among the agencies, and shall explain the reason for the allocation
made.
    (h) Commission review. Either the applicant or agency counsel may
seek review of the initial decision on the fee application, or the
Commission may decide to review the decision on its own initiative, in
accordance with Sec. 502.227 of this part. If neither the applicant nor
agency counsel seeks review and the Commission does not take review on
its own initiative, the initial decision on the application shall become
a final decision of the Commission 30 days after it is issued. Whether
to review a decision is a matter within the discretion of the
Commission. If review is taken, the Commission will issue a final
decision on the application or remand the application to the
adjudicative officer for further proceedings.
    (i) Judicial review. Judicial review of final Commission decisions
on awards may be sought as provided in 5 U.S.C. 504(c)(2).
    (j) Payment of award. (1)(i) An applicant seeking payment of an
award shall submit to the comptroller or other disbursing officer of the
paying agency a copy of the Commission's final decision granting the
award, accompanied by a certification that the applicant will not seek
review of the decision in the United States courts.
    (ii) The agency will pay the amount awarded to the applicant within
60 days.
    (2) Where the Federal Maritime Commission is the paying agency, the
application for payment of award shall be submitted to: Office of Budget
and Financial Management, Federal Maritime Commission, Washington, DC
20573. [Rule 503.]

[52 FR 28264, July 29, 1987, as amended at 64 FR 7812, Feb. 17, 1999]



Subpart W_Compromise, Assessment, Mitigation, Settlement, and Collection
                           of Civil Penalties

    Source: 49 FR 44418, Nov. 6, 1984, unless otherwise noted.
Redesignated at 58 FR 27211, May 7, 1993.



Sec. 502.601  Purpose and scope.

    The purpose of this subpart is to implement the statutory provisions
of

[[Page 91]]

section 19 of the Merchant Marine Act, 1920 (46 U.S.C. 42101-42109),
section 13 of the Shipping Act of 1984 (46 U.S.C. 41107-41109), and
sections 2(c) and 3(c) of Pub. L. 89-777 (46 U.S.C. 44104) by
establishing rules and regulations governing the compromise, assessment,
settlement and collection of civil penalties arising under certain
designated provisions of the Merchant Marine Act , 1920, the Shipping
Act of 1984, Public Law 89-777, and/or any order, rule, or regulation
(except for procedural rules and regulations contained in this part)
issued or made by the Commission in the exercise of its powers, duties
and functions under those statutes. [Rule 601.]

[64 FR 7812, Feb. 17, 1999, as amended at 74 FR 50717, Oct. 1, 2009]



Sec. 502.602  Definitions.

    For the purposes of this subpart:
    (a) Assessment means the imposition of a civil penalty by order of
the Commission after a formal docketed proceeding.
    (b) Commission means the Federal Maritime Commission.
    (c) Compromise means the process whereby a civil penalty for a
violation is agreed upon by the respondent and the Commission outside of
a formal, docketed proceeding.
    (d) Mitigation means the reduction, in whole or in part, of the
amount of a civil penalty.
    (e) Person includes individuals, corporations, partnerships, and
associations existing under or authorized by the laws of the United
States or of a foreign country.
    (f) Respondent means any person charged with a violation.
    (g) Settlement means the process whereby a civil penalty or other
disposition of the case for a violation is agreed to in a formal,
docketed proceeding instituted by order of the Commission.
    (h) Violation includes any violation of sections 19(f)(4), 19(g)(4)
and 19(k) of the Merchant Marine Act, 1920 (46 U.S.C. 42104(a),
42104(d), and 42108); any provision of the Shipping Act of 1984 (46
U.S.C. 40101-41309); sections 2 and 3 of Pub. L. 89-777 (46 U.S.C.
44101-44106); and/or any order, rule or regulation (except for
procedural rules and regulations contained in this part) issued or made
by the Commission in the exercise of its powers, duties and functions
under the Merchant Marine Act, 1920, the Shipping Act of 1984, or Pub.
L. 89-777.
    (i) Words in the plural form shall include the singular and vice
versa; and words importing the masculine gender shall include the
feminine and vice versa. The terms ``includes'' and ``including'' do not
exclude matters not listed but which are in the same general class. The
word ``and'' includes ``or'', except where specifically stated or where
the context requires otherwise. [Rule 602.]

[49 FR 44418, Nov. 6, 1984. Redesignated at 58 FR 27211, May 7, 1993, as
amended at 64 FR 7812, Feb. 17, 1999; 74 FR 50717, Oct. 1, 2009]



Sec. 502.603  Assessment of civil penalties: Procedure; criteria for
determining amount; limitations; relation to compromise.

    (a) Procedure for assessment of penalty. The Commission may assess a
civil penalty only after notice and opportunity for hearing. Civil
penalty assessment proceedings, including settlement negotiations, shall
be governed by the Commission's Rules of Practice and Procedure in this
part. All settlements must be approved by the Presiding Officer. The
full text of any settlement must be included in the final order of the
Commission.
    (b) Criteria for determining amount of penalty. In determining the
amount of any penalties assessed, the Commission shall take into account
the nature, circumstances, extent and gravity of the violation committed
and the policies for deterrence and future compliance with the
Commission's rules and regulations and the applicable statutes. The
Commission shall also consider the respondent's degree of culpability,
history of prior offenses, ability to pay and such other matters as
justice requires.
    (c) Limitations; relation to compromise. When the Commission, in its
discretion, determines that policy, justice or other circumstances
warrant, a civil penalty assessment proceeding may be instituted at any
time for any violation which occurred within five years

[[Page 92]]

prior to the issuance of the order of investigation. Such proceeding may
also be instituted at any time after the initiation of informal
compromise procedures, except where a compromise agreement for the same
violations under the compromise procedures has become effective under
Sec. 502.604(e). [Rule 603.]

[49 FR 44418, Nov. 6, 1984. Redesignated at 58 FR 27211, May 7, 1993, as
amended at 64 FR 7812, Feb. 17, 1999]



Sec. 502.604  Compromise of penalties: Relation to assessment
proceedings.

    (a) Scope. Except in pending civil penalty assessment proceedings
provided for in Sec. 502.603, the Commission, when it has reason to
believe a violation has occurred, may invoke the informal compromise
procedures of this section.
    (b) Notice. When the Commission considers it appropriate to afford
an opportunity for the compromise of a civil penalty, it will, except
when otherwise authorized by the Commission, or where circumstances
render it unnecessary, send a Notice and Demand Letter (``NDL'') to the
respondent, by registered or certified mail, or by other means
reasonably calculated to give notice. The NDL will describe specific
violation(s) on which the claim is based, including the particular
facts, dates and other elements necessary for the respondent to identify
the specific conduct constituting the alleged violation; the amount of
the penalty demanded; the availability of alternative dispute
resolution, including mediation, through the Commission's Office of
Consumer Affairs and Dispute Resolution Services; and the names of
Commission personnel with whom the demand may be discussed, if the
person desires to compromise the penalty. The NDL also will state the
deadlines for the institution and completion of compromise negotiations
and the consequences of failure to compromise.
    (c) Request for compromise. Any person receiving a NDL provided for
in paragraph (b) of this section may, within the time specified, deny
the violation, or submit matters explaining, mitigating or showing
extenuating circumstances, as well as make voluntary disclosures of
information and documents.
    (d) Criteria for compromise. In addition to the factors set forth in
Sec. 502.603(b), in compromising a penalty claim, the Commission may
consider litigative probabilities, the cost of collecting the claim and
enforcement policy.
    (e) Disposition of claims in compromise procedures. (1) When a
penalty is compromised and the respondent agrees to settle for that
amount, a compromise agreement shall be executed. (One example of such
compromise agreement is set forth as appendix A to this subpart.) This
agreement, after reciting the nature of the claim, will include a
statement evidencing the respondent's agreement to the compromise of the
Commission's penalty claim for the amount set forth in the agreement and
will also embody an approval and acceptance provision which is to be
signed by the appropriate Commission official. Upon compromise of the
penalty in the agreed amount, a duplicate original of the executed
agreement shall be furnished to the respondent.
    (2) Upon completion of the compromise, the Commission may issue a
public notice thereof, the terms and language of which are not subject
to negotiation.
    (f) Relation to assessment proceedings. Except by order of the
Commission, no compromise procedure shall be initiated or continued
after institution of a Commission assessment proceeding directed to the
same violations. Any offer of compromise submitted by the respondent
pursuant to this section shall be deemed to have been furnished by the
respondent without prejudice and shall not be used against the
respondent in any proceeding.
    (g) Delegation of compromise authority. The Director, Bureau of
Enforcement, is delegated authority to issue NDLs and compromise civil
penalties as set forth in this subpart, provided, however, that approval
of the Managing Director is obtained prior to issuance of each NDL and
provided further that compromise agreements shall not be effective
unless approved by the Managing Director, whose signature evidencing
approval shall appear on compromise agreements, in addition to that of
the Director of the Bureau of Enforcement. The Director, Bureau of

[[Page 93]]

Enforcement, has the authority to negotiate the terms of compromise
agreements.

[49 FR 44418, Nov. 6, 1984. Redesignated at 58 FR 27211, May 7, 1993, as
amended at 61 FR 51233, Oct. 1, 1996; 64 FR 7812, 7813, Feb. 17, 1999;
75 FR 29455, May 26, 2010]



Sec. 502.605  Payment of penalty: Method; default.

    (a) Method. Payment of penalties by the respondent is to be made by
bank cashier's check or other instrument acceptable to the Commission.
    (b) All checks or other instruments submitted in payment of claims
shall be made payable to the Federal Maritime Commission.
    (c) Default in payment. Where a respondent fails or refuses to pay a
penalty properly assessed under Sec. 502.603, or compromised and agreed
to under Sec. 502.604, appropriate collection efforts will be made by
the Commission, including, but not limited to referral to the Department
of Justice for collection. Where such defaulting respondent is a
licensed freight forwarder, such default also may be grounds for
revocation or suspension of the respondent's license, after notice and
opportunity for hearing, unless such notice and hearing have been waived
by the respondent in writing. [Rule 605.]

[49 FR 44418, Nov. 6, 1984. Redesignated at 58 FR 27211, May 7, 1993, as
amended at 64 FR 7813, Feb. 17, 1999]



    Sec. Appendix A to Subpart W of Part 502--Example of Compromise
                Agreement To Be Used Under 46 CFR 502.604

                          Compromise Agreement

                          FMC File No. --------

    This Agreement is entered into between:
    (1) the Federal Maritime Commission, hereinafter referred to as
Commission, and
    (2) ----------------, hereinafter referred to as Respondent.
    Whereas, the Commission is considering the institution of an
assessment proceeding against Respondent for the recovery of civil
penalties provided under the [appropriate statute], for alleged
violations of section --------;
    Whereas, this course of action is the result of practices believed
by the Commission to have been engaged in by Respondent, to wit:
    [General description of practices and dates or time period involved]
    Whereas, the Commission has authority under the Shipping Act of 1984
to compromise and collect civil penalties; and,
    Whereas, Respondent has terminated the practices which are the basis
for the allegations of violation set forth herein, and has instituted
and indicated its willingness to maintain measures designed to eliminate
these practices by Respondent, its officers, directors or employees.
    Now Therefore, in consideration of the premises herein, and in
compromise of all civil penalties arising from the alleged violations,
Respondent and the Commission hereby agree upon the following terms and
conditions of compromise and settlement:
    1. Respondent shall make a monetary payment to the Commission
herewith, by bank cashier's check, in the total amount of $--------.
    2. Upon acceptance in writing of this Agreement by the Director of
the Bureau of Enforcement of the Commission, this instrument shall
forever bar the commencement or institution of any assessment proceeding
or other claim for recovery of civil penalties from the Respondent
arising from the alleged violations set forth above.
    3. It is expressly understood and agreed that this Agreement is not,
and is not to be construed as, an admission by Respondent to the alleged
violations set forth above.

(Respondent's Name)

 By:____________________________________________________________________
 Title:_________________________________________________________________
 Date:__________________________________________________________________

                         Approval and Acceptance

    The above terms, conditions and consideration are hereby approved
and accepted:

    By the Federal Maritime Commission:

Director, Bureau of Enforcement

 Date:__________________________________________________________________

[49 FR 44418, Nov. 6, 1984. Redesignated at 58 FR 27211, May 7, 1993, as
amended at 61 FR 51233, Oct. 1, 1996; 65 FR 81759, Dec. 27, 2000]



                    Subpart X_Paperwork Reduction Act



Sec. 502.991  OMB control numbers assigned pursuant to the Paperwork
Reduction Act.

    This section displays the control numbers assigned to information
collection requirements of the Commission in this part by the Office of
Management and Budget (OMB) pursuant to the Paperwork Reduction Act of
1980, Pub. L. 96-511. The Commission

[[Page 94]]

intends that this section comply with the Act, which requires that
agencies display a current control number assigned by the Director of
OMB for each agency information collection requirement:

------------------------------------------------------------------------
                                                            Current OMB
                         Section                            control no.
------------------------------------------------------------------------
502.27 (Form FMC.12)....................................       3072-0001
------------------------------------------------------------------------


[49 FR 44369, Nov. 6, 1984. Redesignated at 58 FR 27211, May 7, 1993]



PART 503_PUBLIC INFORMATION--Table of Contents



                            Subpart A_General

Sec.
503.1 Statement of policy.

              Subpart B_Publication in the Federal Register

503.11 Materials to be published.
503.12 Effect of nonpublication.
503.13 Incorporation by reference.

Subpart C_Records, Information and Materials Generally Available to the
     Public Without Resort to Freedom of Information Act Procedures

503.21 Mandatory public records.
503.22 Records available at the Office of the Secretary.
503.23 Records available upon written request.
503.24 Information available via the internet.

   Subpart D_Requests for records under the Freedom of Information Act

503.31 Records available upon written request under the Freedom of
          Information Act.
503.32 Procedures for responding to requests made under the Freedom of
          Information Act.
503.33 Exceptions to availability of records.
503.34 Annual report of public information request activity.

   Subpart E_Requests for Testimony by Employees Relating to Official
      Information and Production of Official Records in Litigation

503.37 Purpose and scope; definitions.
503.38 General prohibition.
503.39 Factors to be considered in response to demands or requests.
503.40 Service of process and filing requirements.
503.41 Procedure when testimony or production of documents is sought.
503.42 Fees.

                             Subpart F_Fees

503.48 Policy and services available.
503.49 Payment of fees and charges.
503.50 Fees for services.

                 Subpart G_Information Security Program

503.51 Definitions.
503.52 Senior agency official.
503.53 Oversight Committee.
503.54 Original classification.
503.55 Derivative classification.
503.56 General declassification and downgrading policy.
503.57 Mandatory review for declassification.
503.58 Appeals of denials of mandatory declassification review requests.
503.59 Safeguarding classified information.

   Subpart H_Access to Any Record of Identifiable Personal Information

503.60 Definitions.
503.61 Conditions of disclosure.
503.62 Accounting of disclosures.
503.63 Request for information.
503.64 Commission procedure on request for information.
503.65 Request for access to records.
503.66 Amendment of a record.
503.67 Appeals from denial of request for amendment of a record.
503.68 Exemptions.
503.69 Fees.

Subpart I_Public Observation of Federal Maritime Commission Meetings and
     Public Access to Information Pertaining to Commission Meetings

503.70 Policy.
503.71 Definitions.
503.72 General rule--meetings.
503.73 Exceptions--meetings.
503.74 Procedures for closing a portion or portions of a meeting or a
          portion or portions of a series of meetings on agency
          initiated requests.
503.75 Procedures for closing a portion of a meeting on request
          initiated by an interested person.
503.76 Effect of vote to close a portion or portions of a meeting or
          series of meetings.
503.77 Responsibilities of the General Counsel of the agency upon a
          request to close any portion of any meeting.
503.78 General rule--information pertaining to meeting.
503.79 Exceptions--information pertaining to meeting.

[[Page 95]]

503.80 Procedures for withholding information pertaining to meeting.
503.81 Effect of vote to withhold information pertaining to meeting.
503.82 Public announcement of agency meeting.
503.83 Public announcement of changes in meeting.
503.84 [Reserved]
503.85 Agency recordkeeping requirements.
503.86 Public access to records.
503.87 Effect of provisions of this subpart on other subparts.

    Authority: 5 U.S.C. 301, 552, 552a, 552b, 553; 31 U.S.C. 9701; 46
U.S.C. 301, 304; E.O. 13526 of January 5, 2010 (75 FR 707), sections
5.1(a) and (b).

    Source: 49 FR 44401, Nov. 6, 1984, unless otherwise noted.



                            Subpart A_General



Sec. 503.1  Statement of policy.

    (a) The Chairman of the Federal Maritime Commission is responsible
for the effective administration of the provisions of Public Law 89-487,
as amended. The Chairman shall carry out this responsibility through the
program and the officials as hereinafter provided in this part.
    (b) In addition, the Chairman, pursuant to his responsibility,
hereby directs that every effort be expended to facilitate the maximum
expedited service to the public with respect to the obtaining of
information and records. Accordingly, members of the public may make
requests for information, records, decisions or submittals in accordance
with the provisions of Sec. 503.31.



              Subpart B_Publication in the Federal Register



Sec. 503.11  Materials to be published.

    The Commission shall separately state and concurrently publish the
following materials in the Federal Register for the guidance of the
public:
    (a) Descriptions of its central and field organization and the
established places at which the officers from whom, and the methods
whereby, the public may secure information, make submittals or requests,
or obtain decisions.
    (b) Statements of the general course and method by which its
functions are channeled and determined, including the nature and
requirements of all formal and informal procedures available.
    (c) Rules of procedure, descriptions of forms available or the
places at which forms may be obtained, and instructions as to the scope
and contents of all papers, reports, or examinations.
    (d) Substantive rules of general applicability adopted as authorized
by law, and statements of general policy or interpretations of general
applicability formulated and adopted by the agency.
    (e) Every amendment, revision, or repeal of the foregoing.

[49 FR 44401, Nov. 6, 1984, as amended at 64 FR 23547, May 3, 1999]



Sec. 503.12  Effect of nonpublication.

    Except to the extent that a person has actual and timely notice of
the terms thereof, no person shall in any manner be required to resort
to, or be adversely affected by any matter required to be published in
the Federal Register and not so published.



Sec. 503.13  Incorporation by reference.

    For purposes of this subpart, matter which is reasonably available
to the class of persons affected hereby shall be deemed published in the
Federal Register when incorporated by reference therein with the
approval of the Director of the Office of the Federal Register.

[49 FR 44401, Nov. 6, 1984; 49 FR 47394, Dec. 4, 1984]



Subpart C_Records, Information and Materials Generally Available to the
     Public Without Resort to Freedom of Information Act Procedures

    Source: 63 FR 53308, Oct. 5, 1998, unless otherwise noted.



Sec. 503.21  Mandatory public records.

    (a) The Commission, as required by the Freedom of Information Act, 5
U.S.C. 552, shall make the following materials available for public
inspection and copying:
    (1) Final opinions (including concurring and dissenting opinions)
and all

[[Page 96]]

orders made in the adjudication of cases.
    (2) Those statements of policy and interpretations which have been
adopted by the Commission.
    (3) Administrative staff manuals and instructions to staff that
affect any member of the public.
    (4) Copies of all records, regardless of form or format, which have
been released to any person pursuant to a Freedom of Information Act
request, and which the Secretary determines have become or are likely to
become the subject of subsequent requests for substantially the same
records, and a general index of such records.
    (b) To prevent unwarranted invasion of personal privacy, the
Secretary may delete identifying details when it makes available or
publishes an opinion, statement of policy, interpretation, staff manual,
instruction, or copies of records referred to in paragraph (a)(4) of
this section. In each case, the justification for the deletion shall be
explained fully in writing, and the extent of such deletion shall be
indicated on that portion of the record which is made available or
published, unless including that indication would harm an interest
protected by an exemption in Sec. 503.33 under which the deletion is
made. If technically feasible, the extent of the deletion shall be
indicated at the place in the record where the deletion was made.
    (c) The Commission maintains and makes available for public
inspection and copying a current index providing identifying information
for the public as to any matter which is issued, adopted, or
promulgated, and which is required by paragraph (a) of this section to
be made available or published.
    (1) The index shall be available at the Office of the Secretary,
Federal Maritime Commission, Washington, DC 20573. Publication of such
indices has been determined by the Commission to be unnecessary and
impracticable. The indices shall, nonetheless, be provided to any member
of the public at a cost not in excess of the direct cost of duplication
of any such index upon request therefor.
    (2) No final order, opinion, statement of policy, interpretation, or
staff manual or instruction that affects any member of the public will
be relied upon, used, or cited as precedent by the Commission against
any private party unless:
    (i) It has been indexed and either made available or published as
provided by this subpart; or
    (ii) That private party shall have actual and timely notice of the
terms thereof.
    (d) Duplication of records may be subject to fees as prescribed in
subpart E of this part.



Sec. 503.22  Records available at the Office of the Secretary

    (a) The following records will be made available for inspection and
copying at the Office of the Secretary, Federal Maritime Commission, 800
North Capitol St., NW, Washington, DC 20573, without the requirement of
a written request. Access to requested records may be delayed if they
have been sent to archives.
    (1) Proposed and final rules and regulations of the Commission
including general substantive rules, statements of policy and
interpretations, and rules of practice and procedure.
    (2) Reports of decisions (including concurring and dissenting
opinions), orders and notices in all formal proceedings.
    (3) Official docket files in all formal proceedings including, but
not limited to, orders, notices, pertinent correspondence, transcripts,
exhibits, and briefs, except for materials which are the subject of a
protective order. Copies of transcripts may only be available from the
reporting company contracted by the Commission. Contact the Office of
the Secretary for the name and address of this company.
    (4) News releases.
    (5) Approved summary minutes of Commission actions showing final
votes, except for minutes of closed Commission meetings which are not
available until the Commission publicly announces the results of such
deliberations.
    (6) Annual reports of the Commission.
    (b) Certain fees may be assessed for duplication of records made
available

[[Page 97]]

by this section as prescribed in subpart E of this part.

[63 FR 53308, Oct. 5, 1998, as amended at 64 FR 23547, May 3, 1999]



Sec. 503.23  Records available upon written request.

    (a) The following Commission records are generally available for
inspection and copying, without resort to Freedom of Information Act
procedures, upon request in writing addressed to the Office of the
Secretary, Federal Maritime Commission, Washington, DC 20573:
    (1) Agreements filed and in effect pursuant to section 5 (46 U.S.C.
40301(d)-(e), 40302-40303, 40305) and 6 (46 U.S.C. 40304, 40306,
41307(b)-(d)) of the Shipping Act of 1984.
    (2) Agreements filed under section 5 of the Shipping Act of 1984 (46
U.S.C. 40301(d)-(e), 40302-40303, 40305) which have been noticed in the
Federal Register.
    (3) Tariff data filed in the Commission's ATFI system prior to May
1, 1999.
    (4) List of licensed ocean freight forwarders.
    (b) Certain fees may be assessed for duplication of records made
available by this section as prescribed in subpart E of this part.

[63 FR 53308, Oct. 5, 1998, as amended at 64 FR 23547, May 3, 1999; 74
FR 50717, Oct. 1, 2009]



Sec. 503.24  Information available via the internet.

    (a) The Commission maintains an internet web site. The Commission
home page may be found at http://www.fmc.gov.
    (b) The following general information, records, and resources are
accessible through the home page:
    (1) General descriptions of the functions, bureaus, and offices of
the Commission, phone numbers and e-mail addresses for Commission
officials, as well as locations of Area Representatives;
    (2) Information about filing complaints;
    (3) Commonly used forms;
    (4) A public information handbook describing the types of
information available from the Commission and how to access such
information;
    (5) A Freedom of Information Act Electronic Reading Room which
contains:
    (i) Copies of final decisions in adjudicatory proceedings issued
since November 1, 1996;
    (ii) Recently issued final rules and pending proposed rules;
    (iii) Access to statements of policy and interpretations as
published in part 545 of this chapter; and
    (iv) Records created by the Commission since November 1, 1996, and
made available under Sec. 503.21, paragraph (a)(4).
    (6) Commission regulations as codified in Title 46 of the Code of
Federal Regulations;
    (7) News releases issued by the Commission;
    (8) Statements and remarks from the Chairman and Commissioners;
    (9) A connection to the Government Information Locator Service
maintained by the Government Printing Office, which identifies
Commission databases; and
    (10) Privacy Act information;
    (11) Lists of the location of all common carrier and conference
tariffs and publicly available terminal schedules of marine terminal
operators; and
    (12) A list of licensed ocean transportation intermediaries which
have furnished the Commission with evidence of financial responsibility.
    (c) Comments or questions regarding the home page should be
addressed via e-mail to [email protected].

[63 FR 53308, Oct. 5, 1998, as amended at 64 FR 23547, May 3, 1999]



     Subpart D_Requests for Records Under the Freedom of Information

    Source: 63 FR 53310, Oct. 5, 1998, unless otherwise noted.



Sec. 503.31  Records available upon written request under the Freedom of
Information Act.

    (a) A member of the public may request permission to inspect, copy
or be provided with any Commission records not described in subpart C of
this part. Such a request must:
    (1) Reasonably describe the record or records sought;

[[Page 98]]

    (2) Be submitted in writing to the Secretary, Federal Maritime
Commission, Washington, DC 20573; and
    (3) Be clearly marked on the exterior with the letters ``FOIA''.
    (b) The Secretary shall evaluate each request in conjunction with
the official having responsibility for the subject matter area and the
General Counsel, and the Secretary shall determine whether or not to
grant the request in accordance with the provisions of this subpart.
    (c) In making any record available to a person under this subpart,
the Secretary shall provide the record in any form or format requested
by the person if the record is readily reproducible by the Secretary in
that form or format.
    (d) Certain fees may be assessed for processing of requests under
this subpart as prescribed in subpart E of this part.



Sec. 503.32  Procedures for responding to requests made under the
Freedom of Information Act.

    (a) Determination to grant or deny request. Upon request by any
member of the public for documents, made in accordance with the rules of
this part, the Commission's Secretary or his or her delegate in his or
her absence, shall determine whether or not such request shall be
granted.
    (1) Such determination shall be made by the Secretary within twenty
(20) days (excluding Saturdays, Sundays and legal public holidays) after
receipt of such request, except as provided in paragraph (c) of this
section.
    (2) Upon granting a request the Secretary shall promptly make
records available to the requestor. Upon denial of such a request the
Secretary shall promptly notify the requestor of the determination,
explain the reason for denial, give an estimate of the volume of matter
denied, set forth the names and titles or positions of each person
responsible for the denial of the request, and notify the party of its
right to appeal that determination to the Chairman.
    (3)(i) Any party whose request for documents or other information
pursuant to this part has been denied in whole or in part by the
Secretary may appeal such determination. Any such appeal must:
    (A) Be addressed to: Chairman, Federal Maritime Commission,
Washington, D.C. 20573-0001; and
    (B) Be filed not later than ten (10) working days following receipt
of notification of denial or receipt of a part of the records requested.
    (ii) The Chairman or the Chairman's specific delegate in his or her
absence, shall make a determination with respect to that appeal within
twenty (20) days (excepting Saturdays, Sundays and legal public
holidays) after receipt of such appeal, except as provided in paragraph
(b) of this section.
    (iii) If, on appeal, the denial is upheld, either in whole or in
part, the Chairman shall so notify the party submitting the appeal and
shall notify such person of the provisions of 5 U.S.C. 552(a)(4)
regarding judicial review of such determination upholding the denial.
Notification shall also include the statement that the determination is
that of the Chairman of the Federal Maritime Commission and the name of
the Chairman.
    (b) Extension of time limits. (1) In unusual circumstances, as
defined in paragraph (b)(2) of this section, the time limits prescribed
with respect to initial actions in response to a FOIA request or actions
on appeal may be extended by written notice from the Secretary of the
Commission to the person making such request, setting forth the reasons
for such extension and the date on which a determination is expected to
be dispatched. No such notice shall specify a date that would result in
an extension for more than ten (10) working days, except as provided in
paragraph (b)(3) of this section.
    (2) As used in this paragraph, unusual circumstances means, but only
to the extent reasonably necessary to the proper processing of the
particular request:
    (i) The need to search for and collect the requested records from
field facilities or other establishments that are separate from the
office processing the request;
    (ii) The need to search for, collect, and appropriately examine a
voluminous amount of separate and distinct

[[Page 99]]

records which are demanded in a single request; or
    (iii) The need for consultation, which shall be conducted with all
practicable speed, with another agency having a substantial interest in
the determination of the request or among two or more components of the
agency having substantial subject matter interest therein.
    (3) If the time limit is extended as prescribed under this section,
and the request cannot be processed within the extended time limit, the
Secretary shall notify the requestor, and either provide the requestor
with an opportunity to limit the scope of the request so that it may be
processed within the time limit, or provide the requestor an opportunity
to arrange with the Secretary an alternative time frame for processing
the request or a modified request.
    (c) Aggregation of requests. Certain requests by the same requestor,
or by a group of requestors acting in concert, may be aggregated:
    (1) Upon the Secretary's reasonable belief that such requests
actually constitute a single request, which if not aggregated would
satisfy the unusual circumstances specified in paragraph (b)(2) of this
section; and
    (2) If the requests involve clearly related matters.
    (d) Multitrack processing of requests. The Secretary may provide for
multitrack processing of requests based on the amount of time or work
involved in processing requests.
    (e) Expedited processing of requests. (1) The Secretary will provide
for expedited processing of requests for records when:
    (i) The person requesting the records can demonstrate a compelling
need; or
    (ii) In other cases, in the Secretary's discretion.
    (2) The term compelling need means:
    (i) A failure to obtain requested records on an expedited basis
under this paragraph could reasonably be expected to pose an imminent
threat to the life or physical safety of an individual; or
    (ii) With respect to a request made by a person primarily engaged in
disseminating information, urgency to inform the public concerning
actual or alleged Federal Government activity.
    (3) A demonstration of compelling need by a person making a request
for expedited processing must be made in the form of a statement
describing the circumstances and certified by such person to be true and
correct to the best of such person's knowledge and belief.
    (4) The Secretary shall determine whether to provide expedited
processing, and provide notice of the determination to the person making
the request, within ten (10) working days after the date of the request.
    (5) Appeal of the determination not to provide expedited processing
should be sought in accordance with the provisions of paragraph
(a)(3)(i) of Sec. 503.32, and will be considered expeditiously.
    (6) Any request granted expedited processing shall be processed as
soon as practicable.



Sec. 503.33  Exceptions to availability of records.

    (a) Except as provided in paragraph (b) of this section, the
following records may be withheld from disclosure:
    (1) Records specifically authorized under criteria established by an
Executive order to be kept secret in the interest of national defense or
foreign policy and which are in fact properly classified pursuant to
such Executive order. Records to which this provision applies shall be
deemed by the Commission to have been properly classified. This
exception may apply to records in the custody of the Commission which
have been transmitted to the Commission by another agency which has
designated the record as nonpublic under an Executive order.
    (2) Records related solely to the internal personnel rules and
practices of the Commission.
    (3) Records specifically exempted from disclosure by statute,
provided that such statute:
    (i) Requires that the matter be withheld from the public in such a
manner as to leave no discretion on the issue, or
    (ii) Establishes particular criteria for withholding or refers to
particular types of matters to be withheld.

[[Page 100]]

    (4) Trade secrets and commercial financial information obtained from
a person and privileged or confidential.
    (5) Inter-agency or intra-agency memoranda or letters which would
not be available by law to a party other than an agency in litigation
with the Commission.
    (6) Personnel and medical files and similar files, the disclosure of
which would constitute a clearly unwarranted invasion of personal
privacy.
    (7) Records or information compiled for law enforcement purposes,
but only to the extent that the production of such law enforcement
records or information:
    (i) Could reasonably be expected to interfere with enforcement
proceedings;
    (ii) Would deprive a person of a right to a fair trial or an
impartial adjudication;
    (iii) Could reasonably be expected to constitute an unwarranted
invasion of personal privacy;
    (iv) Could reasonably be expected to disclose the identity of a
confidential source, including a State, local, or foreign agency or
authority or any private institution which furnished information on a
confidential basis, and, in the case of a record or information compiled
by a criminal law enforcement authority in the course of a criminal
investigation, or by an agency conducting a lawful national security
intelligence investigation, information furnished by a confidential
source;
    (v) Would disclose techniques and procedures for law enforcement
investigations or prosecutions, or would disclose guidelines for law
enforcement investigations or prosecutions if such disclosure could
reasonably be expected to risk circumvention of the law; or
    (vi) Could reasonably be expected to endanger the life or physical
safety of any individual.
    (b) Nothing in this section authorizes withholding of information or
limiting the availability of records to the public except as
specifically stated in this part, nor shall this part be authority to
withhold information from Congress.
    (c) Any reasonably segregable portion of a record shall be provided
to any person requesting such record after deletion of the portions
which are exempt under this part. The amount of information deleted
shall be indicated on the released portion of the record, unless
including that indication would harm an interest protected by the
exemption in this section under which the deletion is made. If
technically feasible, the amount of the information deleted shall be
indicated at the place in the record where such deletion is made.
    (d) Whenever a request is made which involves access to records
described in paragraph (a)(7)(i) of this section and the investigation
or proceeding involves a possible violation of criminal law, and there
is reason to believe that the subject of the investigation or proceeding
is not aware of its pendency, and disclosure of the existence of the
records could reasonably be expected to interfere with enforcement
proceedings, the Commission may, during only such time as that
circumstance continues, treat the records as not subject to the
requirements of 5 U.S.C. 552 and this subpart.



Sec. 503.34  Annual report of public information request activity.

    (a) On or before February 1 of each year, the Commission shall
submit to the Attorney General of the United States, as required by the
Attorney General, a report which shall cover the preceding fiscal year
and which shall include:
    (1) The number of determinations made not to comply with requests
for records made to the Commission under this Subpart and the reasons
for each such determination;
    (2)(i) The number of appeals made by persons under Sec. 503.32, the
result of such appeals, and the reason for the action upon each appeal
that results in a denial of information; and
    (ii) A complete list of all statutes relied upon to authorize
withholding of information under Sec. 503.33(a)(3) , a description of
whether a court has upheld the Commission's decision to withhold
information under each such statute, and a concise description of the
scope of any information withheld;
    (3) The number of requests for records pending before the Commission
as of September 30 of the preceding

[[Page 101]]

year, and the median number of days that such requests had been pending
as of that date;
    (4) The number of requests for records received by the Commission
and the number of requests which the Commission processed;
    (5) The median number of days taken to process different types of
requests;
    (6) The total amount of fees collected for processing requests; and
    (7) The number of full-time staff devoted to processing requests for
records under this section, and total amount expended for processing
such requests.
    (b) Each such report shall be made available to the public at the
Office of the Secretary, Federal Maritime Commission, Washington, D.C.
20573 and on the Commission's web site (www.fmc.gov).



   Subpart E_Requests for Testimony by Employees Relating to Official
      Information and Production of Official Records in Litigation

    Source: 79 FR 24351, Apr. 30, 2014, unless otherwise noted.



Sec. 503.37  Purpose and scope; definitions.

    (a) This subpart sets forth the procedures to be followed with
respect to:
    (1) Service of summonses and complaints or other requests or demands
directed to the Federal Maritime Commission (Commission) or to any
Commission employee or former employee in connection with litigation
arising out of or involving the performance of official activities of
the Commission; and
    (2) The oral or written disclosure, in response to subpoenas,
orders, or other requests or demands of judicial or quasi-judicial
authority (collectively ``demands''), whether civil or criminal in
nature, or in response to requests for depositions, affidavits,
admissions, responses to interrogatories, document production, or other
litigation-related matters, pursuant to the Federal Rules of Civil
Procedure, the Federal Rules of Criminal Procedure, or applicable state
rules (collectively ``requests''), of any material contained in the
files of the Commission, any information relating to material contained
in the files of the Commission, or any information acquired while the
subject of the demand or request is or was an employee of the
Commission, as part of the performance of that person's duties or by
virtue of that person's official status.
    (b) This subpart applies in all litigation in which the United
States is not a party.
    (c) For purposes of this subpart, the term employee includes:
    (1) any current or former Commissioner or employee of the
Commission;
    (2) any other individual hired through contractual agreement or on
behalf of the Commission or who has performed or is performing services
under such agreement for the Commission;
    (3) Any individual who served or is serving in any consulting or
advisory capacity to the Commission, whether informal or formal.
    (d) The Commission authorizes the General Counsel or the General
Counsel's designee to make determinations under this section.
    (e) For purposes of this subpart, the term litigation encompasses
all pre-trial, trial, and post-trial stages of all judicial or
administrative actions, hearings, investigations, or similar proceedings
before courts, commissions, grand juries, or other judicial or quasi-
judicial bodies or tribunals, whether criminal, civil, or administrative
in nature. This subpart governs, inter alia, responses to requests for
discovery, depositions, and other litigation proceedings, as well as
responses to informal requests by attorneys or others in situations
involving litigation. However, this subpart shall not apply to any
claims against the Commission by Federal Maritime Commission employees
(present or former), or applicants for Commission employment, for which
jurisdiction resides with the U.S. Equal Employment Opportunity
Commission; the U.S. Merit Systems Protection Board; the Office of
Special Counsel; the Federal Labor

[[Page 102]]

Relations Authority; or a labor arbitrator operating under a collective
bargaining agreement between the Commission and a labor organization
representing Commission employees; or their successor agencies or
entities.
    (f) For purposes of this subpart, official information means all
information of any kind, however stored, that is:
    (1) In the custody and control of the Commission;
    (2) Relates to information in the custody and control of the
Commission; or
    (3) Was acquired by Commission contractors, employees, former
employees or former contractors as part of their official duties or
because of their official status within the Commission while such
individuals were employed by or served on behalf of the Commission.
    (g) Nothing in this subpart affects disclosure of information under
the Freedom of Information Act (FOIA), 5 U.S.C. 552, the Privacy Act, 5
U.S.C. 552a, the Government in the Sunshine Act, 5 U.S.C. 552b, the
Commission's implementing regulations, or pursuant to congressional
subpoena.
    (h) Nothing in this subpart affects the disclosure of official
information to other federal agencies or Department of Justice attorneys
in connection with:
    (1) Litigation conducted on behalf or in defense of the United
States, its agencies, officers, and employees; or
    (2) Litigation in which the United States has an interest.
    (i) This subpart is intended only to provide guidance for the
internal operations of the Commission, and is not intended to, and does
not, and may not be relied upon to create any right or benefit,
substantive or procedural, enforceable at law by a party against the
United States.



Sec. 503.38  General prohibition.

    (a) No employee or former employee of the Commission shall, in
response to a demand or request, produce any material contained in the
files of the Commission, or disclose any information relating to or
based upon material contained in the files of the Commission, or
disclose any information or produce any material acquired as part of the
performance of that person's official duties or because of that person's
official status, without prior approval of the Commission in accordance
with Sec. Sec. 503.39 and 503.40.



Sec. 503.39  Factors to be considered in response to demands or requests.

    (a) The Commission will determine whether testimony or the
production of documents will be authorized according to the following
criteria:
    (1) Statutory restrictions, as well as any legal objection,
exemption, or privilege that may apply;
    (2) Relevant legal standards for disclosure of nonpublic information
and documents;
    (3) Commission rules and regulations;
    (4) The public interest;
    (5) Minimizing or preventing expenditures of Commission time and
resources solely for private purposes.
    (6) Minimizing the appearance of improperly favoring one litigant
over another;
    (7) Minimizing the possibility that the public will misconstrue
variances between personal opinions of Commission employees and
Commission policy; and
    (8) Preserving the integrity of the administrative process.
    (b) [Reserved]



Sec. 503.40  Service of process and filing requirements.

    (a) Service of summonses and complaints. (1) Except in cases in
which the Commission is represented by legal counsel who have entered an
appearance or otherwise given notice of their representation, only the
General Counsel is authorized to receive and accept subpoenas, or other
demands or requests directed to the Commission, or any component
thereof, or its employees, or former employees, whether civil or
criminal nature, for:
    (i) Material, including documents, contained in the files of the
Commission;
    (ii) Information, including testimony, affidavits, declarations,
admissions, responses to interrogatories, or informal statements,
relating to material contained in the files of the Commission or which
any Commission employee acquired in the course and scope

[[Page 103]]

of the performance of his official duties;
    (iii) Garnishment or attachment of compensation of current or former
employees; or
    (iv) The performance or non-performance of any official Commission
duty.
    (2) All such documents should be delivered or addressed to the
General Counsel, Office of the General Counsel, Federal Maritime
Commission, 800 North Capitol Street NW., Washington, DC 20573.
    (3) In the event that any subpoena, demand, or request is sought to
be delivered to a Commission employee (including former employees) other
than in the manner prescribed in paragraphs (a)(1) and (2) of this
section, such attempted service shall be ineffective. Such employee
shall, after consultation with the General Counsel:
    (i) Decline to accept the subpoena, demand, or request; or
    (ii) Return them to the server under cover of a written
communication referring to the procedures prescribed in this part.
    (4) Acceptance of such documents by the Office of the General
Counsel does not constitute a waiver of any defenses that might
otherwise exist with respect to service under the Federal Rules of Civil
or Criminal Procedure, or other applicable laws, rules, or regulations.
    (b) [Reserved]



Sec. 503.41  Procedure when testimony or production of documents is
sought.

    The Commission shall follow the procedures set forth in this part.
    (a) If oral testimony is sought by a demand in any case or matter in
which the United States is not a party, an affidavit, or, if that is not
feasible, a statement by the party seeking the testimony or by his
attorney, setting forth a summary of the testimony sought and its
relevance to the proceeding, must be furnished to the Commission. Any
authorization for testimony by a present or former employee of the
Commission shall be limited to the scope of the demand as summarized in
such statement.
    (b) When information other than oral testimony is sought by a
demand, the Commission shall request a summary of the information sought
and its relevance to the proceeding.
    (c) Permission to testify or to release documents in all cases will
be limited to matters outlined in the affidavit or declaration described
in Sec. 503.41(a) and (b), or to such matters as deemed appropriate by
the Commission. If the Commission, in considering the factors in Sec.
503.39, allows the release of documents or testimony to be given by an
employee, arrangements shall be made for the taking of testimony or
receipt of documents by the method least disruptive to the employee's
official duties. Testimony may, for example, be provided by affidavits,
answers to interrogatories, written depositions, or depositions
transcribed, recorded, or preserved by any other means allowable by law.
    (d) Upon issuance of a final determination to not authorize
testimony or release of Commission information by the Commission, the
party or the party's counsel seeking testimony or documents may consult
or negotiate with the Commission to refine and limit the demand.



Sec. 503.42  Fees.

    (a) Generally. The Commission may condition the production of
records or appearance for testimony upon advance payment of a reasonable
estimate of the costs to the Commission.
    (b) Fees for records. Fees for producing records will include fees
for searching, reviewing, and duplicating records, costs of attorney
time spent in reviewing the demand or request, and expenses generated by
materials and equipment used to search for, produce, and copy the
responsive information. Costs for employee time will be calculated on
the basis of the hourly pay of the employee (including all pay,
allowance, and benefits). Fees for duplication will be the same as those
charged by the Commission in its regulations at subpart F of this part.
    (c) Witness fees. Fees for attendance by a witness will include
fees, expenses, and allowances prescribed by the court's rules. If no
such fees are prescribed, witness fees will be determined based upon the
rule of the Federal district court closest to the location where the
witness will appear. Such

[[Page 104]]

fees will include cost of time spent by the witness to prepare for
testimony, in travel, and for attendance at the legal proceeding.
    (d) Payment of fees. The seeking party must pay witness fees for
current Commission employees and any records certification fees by
submitting to the General Counsel a check or money order for the
appropriate amount made payable to the Treasury of the United States. In
the case of testimony by former Commission employees, applicable fees
must be paid directly to the former employee in accordance with 28
U.S.C. 1821, per diem and mileage, or other applicable statutes.
    (e) Certification (authentication) of copies of records. The
Commission may certify that records are true copies in order to
facilitate their use as evidence. If certified records are sought, the
request for certified copies shall be made at least 45 days before the
date they will be needed. The request should be sent to the General
Counsel. Fees for certification will be the same as those charged by the
Commission in its regulations at subpart F of this part.
    (f) Waiver or reduction of fees. The Commission may, upon a showing
of reasonable cause, waive or reduce any fees in connection with
testimony, production, or certification of records.
    (g) De minimis fees. Fees will not be assessed if the total charge
would be $10.00 or less.



                             Subpart F_Fees

    Source: 49 FR 44401, Nov. 6, 1984, unless otherwise noted.
Redesignated at 79 FR 24351, Apr. 30, 2014



Sec. 503.48  Policy and services available.

    Pursuant to policies established by Congress, the Government's costs
for services provided to identifiable persons are to be recovered by the
payment of fees (Independent Offices Appropriations Act, 31 U.S.C. 9701
and Freedom of Information Reform Act of 1986, October 27, 1986, 5
U.S.C. 552). Except as otherwise noted, it is the general policy of the
Commission not to waive or reduce service and filing fees contained in
this chapter. In extraordinary situations, the Commission will accept
requests for waivers or fee reductions. Such requests are to be made to
the Secretary of the Commission at the time of the information request
or the filing of documents and must demonstrate that the waiver or
reduction of a fee is in the best interest of the public, or that
payment of a fee would impose an undue hardship. The Secretary will
notify the requestor of the decision to grant or deny the request for
waiver or reduction.
    (a) Upon request, the following services are available upon the
payment of the fees hereinafter prescribed; except that no fees shall be
assessed for search, duplication or review in connection with requests
for single copies of materials described in Sec. Sec. 503.11 and
503.21:
    (1) Records/documents search.
    (2) Duplication of records/documents.
    (3) Review of records/documents.
    (4) Certification of copies of records/documents.
    (b) Fees shall also be assessed for the following services provided
by the Commission:
    (1) Placing one's name, as an interested party, on the mailing list
of a docketed proceeding.
    (2) Processing nonattorney applications to practice before the
Commission.

[49 FR 44401, Nov. 6, 1984, as amended at 52 FR 13682, Apr. 24, 1987; 59
FR 59170, Nov. 16, 1994; 63 FR 50535, Sept. 22, 1998. Redesignated at 79
FR 24351, Apr. 30, 2014]



Sec. 503.49  Payment of fees and charges.

    The fees charged for special services may be paid through the mail
by check, draft, or postal money order, payable to the Federal Maritime
Commission, except for charges for transcripts of hearings. Transcripts
of hearings, testimony and oral argument are furnished by a
nongovernmental contractor, and may be purchased directly from the
reporting firm.

[49 FR 44401, Nov. 6, 1984, redesignated at 79 FR 24351, Apr. 30, 2014]



Sec. 503.50  Fees for services.

    (a) Definitions. The following definitions apply to the terms when
used in this subpart:
    (1) Search means all time spent looking for material that is
responsive to a request, including page-by-page or line-

[[Page 105]]

by-line identification of material within documents. Search for material
will be done in the most efficient and least expensive manner so as to
minimize costs for both the agency and the requester. Search is
distinguished, moreover, from review of material in order to determine
whether the material is exempt from disclosure. Searches may be done
manually or by computer using existing programming.
    (2) Duplication means the process of making a copy of a document
necessary to respond to a Freedom of Information Act or other request.
Such copies can take the form of paper or machine readable documentation
(e.g., magnetic tape or disk), among others.
    (3) Review means the process of examining documents located in
response to a commercial use request to determine whether any portion of
any document located is permitted to be withheld. It also includes
processing any documents for disclosure, e.g., doing all that is
necessary to excise them and otherwise prepare them for release. Review
does not include time spent resolving general legal or policy issues
regarding the application of exemptions.
    (4) Commercial use request means a request from or on behalf of one
who seeks information for a use or purpose that furthers the commercial,
trade, or profit interests of the requester or the person on whose
behalf the request is made. In determining whether a requester properly
belongs in this category, the agency must determine the use to which a
requester will put the documents requested. Where the agency has
reasonable cause to doubt the use to which a requester will put the
records sought, or where that use is not clear from the request itself,
the agency will seek additional clarification before assigning the
request to a specific category.
    (5) Educational institution means a preschool, a public or private
elementary or secondary school, an institution of graduate higher
education, an institution of undergraduate higher education, an
institution of professional education, and an institution of vocational
education, which operates a program or programs of scholarly research.
    (6) Non-commercial scientific institution means an institution that
is not operated on a commercial basis as that term is referenced in
paragraph (a)(4) of this section, and which is operated solely for the
purpose of conducting scientific research the results of which are not
intended to promote any particular product or industry.
    (7) Representative of the news media means any person actively
gathering news for an entity that is organized and operated to publish
or broadcast news to the public. The term news means information that is
about current events or that would be of current interest to the public.
Examples of news media entities include television or radio stations
broadcasting to the public at large, and publishers of periodicals (but
only in those instances when they can qualify as disseminators of news)
who make their products available for purchase or subscription by the
general public. These examples are not intended to be all-inclusive. As
traditional methods of news delivery evolve (e.g., electronic
dissemination of newspapers through telecommunications services), such
alternative media would be included in this category. Freelance
journalists, may be regarded as working for a news organization if they
can demonstrate a solid basis for expecting publication through that
organization, even though not actually employed by it. A publication
contract would be the clearest proof, but the agency may also look to
the past publication record of a requester in making this determination.
    (8) Direct costs means those expenditures which the agency actually
incurs in searching for and duplicating (and in the case of commercial
requester, reviewing) documents to respond to a Freedom of Information
Act (``FOIA'') request. Direct costs include, for example, the salary of
the employee performing the work (the basic rate of pay for the employee
plus 17.5 percent of that rate to cover benefits) and the cost of
operating duplicating machinery. Not included in direct costs are
overhead expenses such as costs of space, and heating or lighting the
facility in which the records are stored.
    (b) General. (1) The basic fees set forth in paragraph (c) of this
section

[[Page 106]]

provide for documents to be mailed with postage prepaid. If copy is to
be transmitted by registered, certified, air, or special delivery mail,
postage therefor will be added to the basic fee. Also, if special
handling or packaging is required, costs thereof will be added to the
basic fee.
    (2) The fees for search, duplication and review set forth in
paragraph (c) of this section reflect the full allowable direct costs
expected to be incurred by the agency for the service. Costs of search
and review may be assessed even if it is determined that disclosure of
the records is to be withheld. Cost of search may be assessed even if
the agency fails to locate the records. Requesters much reasonably
describe the records sought. The following restrictions, limitations and
guidelines apply to the assessment of such fees:
    (i) For commercial use requesters, charges recovering full direct
costs for search, review and duplication of records will be assessed.
    (ii) For educational and non-commercial scientific institution
requesters, no charge will be assessed for search or review of records.
Charges recovering full direct costs for duplication of records will be
assessed, excluding charges for the first 100 pages. To be eligible for
inclusion in this category, requesters must show that the request is
being made under the auspices of a qualifying institution and that the
records are not sought for a commercial use, but are sought in
furtherance of scholarly (if the request is from an educational
institution) or scientific (if the request is from a non-commercial
scientific institution) research.
    (iii) For representative of the news media requesters, no charge
will be assessed for search or review of records. Charges recovering
full direct costs for duplication of records will be assessed, excluding
charges for the first 100 pages.
    (iv) For all other requesters, no charge will be assessed for review
of records. Charges recovering full direct costs for search and
duplication of records will be assessed excluding charges for the first
100 pages of duplication and the first two hours of search time.
Requests from individuals for records about themselves, filed in a
Commission system of records, will be treated under the fee provisions
of the Privacy Act of 1984 which permit fees only for duplication.
    (v) No fee may be charged for search, review or duplication if the
costs of routine collection and processing of the fee are likely to
exceed the amount of the fee.
    (vi) Documents shall be furnished without any charge or at a reduced
charge if disclosure of the information is in the public interest
because it is likely to contribute significantly to public understanding
of the operations or activities of the government and is not primarily
in the commercial interest of the requester. In determining whether a
waiver or reduction of charges is appropriate the following factors will
be taken into consideration.
    (A) The subject of the request: Whether the subject of the requested
records concerns the operations or activities of the government;
    (B) The informative value of the information to be disclosed:
Whether the disclosure is likely to contribute to an understanding of
government operations or activities;
    (C) The contribution to an understanding of the subject by the
general public likely to result from disclosure: Whether disclosure of
the requested information will contribute to public understanding;
    (D) The significance of the contribution to public understanding:
Whether the disclosure is likely to contribute significantly to public
understanding of government operations or activities;
    (E) The existence and magnitude of a commercial interest: Whether
the requester has a commercial interest that would be furthered by the
requested disclosure; and, if so
    (F) The primary interest in disclosure: Whether the magnitude of the
identified commercial interest of the requester is sufficiently large,
in comparison with the public interest in disclosure, that disclosure is
primarily in the commercial interest of the requester.
    (vii) Whenever it is anticipated that fees chargeable under this
section will exceed $25.00 and the requester has not indicated in
advance a willingness to

[[Page 107]]

pay fees as high as anticipated, the requester will be notified of the
amount of the anticipated fee. In such cases the requester will be given
an opportunity to confer with Commission personnel with the object of
reformulating the request to meet the needs of the requester at a lower
cost.
    (viii) Interest may be charged record requesters who fail to pay
fees assessed. Assessment of interest may begin on the amount billed
starting on the 31st day following the day on which the billing was
sent. Interest will be at the rate prescribed in section 3717 of title
31 U.S.C., and will accrue from the date of the billings. Receipt of
payment by the agency will stay the accrual of interest.
    (ix) Whenever it reasonably appears that a requester of records or a
group of requesters is attempting to break a request down into a series
of requests for the purpose of evading the assessment of fees, such
requests will be aggregated and fees assessed accordingly. Multiple
requests on unrelated subjects will not be aggregated.
    (x) The agency may require a requester to make advance payment only
when:
    (A) A requester has previously failed to pay a fee charged in a
timely fashion (i.e., within 30 days of the date of the billing), in
which case the requester will be required to pay the full amount owed
plus any applicable interest as provided above, and to make an advance
payment of the full amount of the estimated fee before the agency begins
to process a new request or a pending request from that requester; or
    (B) The agency estimates or determines that allowable charges that a
requester may be required to pay are likely to exceed $250, in which
case, the agency will notify the requester of the likely cost and obtain
satisfactory assurance of full payment where the requester has a history
of prompt payment of FOIA fees, or will require an advance payment of an
amount up to the full estimated charges in the case of requesters with
no history of payment.
    (xi) Unless applicable fees are paid, the agency may use the
authorities of the Debt Collection Act (Pub. L. 97-365), including
disclosure to consumer reporting agencies and use of collection agencies
where appropriate to encourage payment.
    (xii) Whenever action is taken under paragraphs (b)(2)(viii) and
(b)(2)(ix) of this section, the administrative time limits prescribed in
subsection (a)(6) of 5 U.S.C. 552 (i.e., 10 working days from receipt of
initial requests and 20 working days from receipt of appeals from
initial denial, plus permissible extensions of these time limits will
begin only after the Commission has received fee payments described
above.
    (c) Charges for search, review, duplication and certification. (1)
Records search will be performed by Commission personnel at the
following rates:
    (i) Search will be performed by clerical/administrative personnel at
a rate of $19 per hour and by professional/executive personnel at a rate
of $48 per hour.
    (ii) Minimum charge for record search is $19.
    (2) Charges for review of records to determine whether they are
exempt from disclosure under Sec. 503.33 shall be assessed to recover
full costs at the rate of $79 per hour. Charges for review will be
assessed only for initial review to determine the applicability of a
specific exemptions to a particular record. No charge will be assessed
for review at the administrative appeal level.
    (3) Charges for duplication of records and documents will be
assessed as follows, limited to size 8\1/2\ x 14
or smaller:
    (i) If performed by requesting party, at the rate of five cents per
page (one side).
    (ii) By Commission personnel, at the rate of five cents per page
(one side) plus $19 per hour.
    (iii) Minimum charge for copying is $4.75.
    (iv) No charge will be made by the Commission for notices,
decisions, orders, etc., required by law to be served on a party to any
proceeding or matter before the Commission. No charge will be made for
single copies of such Commission issuances individually requested in
person or by mail.
    (4) The certification and validation (with Federal Maritime
Commission seal) of documents filed with or issued

[[Page 108]]

by the Commission will be available at $94 for each certification.
    (d) To have one's name and address placed on the mailing list of a
specific docket as an interested party to receive all issuances
pertaining to that docket: $9 per proceeding.
    (e) Applications for admission to practice before the Commission for
persons not attorneys at law must be accompanied by a fee of $104
pursuant to Sec. 502.27 of this chapter.

[49 FR 44401, Nov. 6, 1984, as amended at 52 FR 13683, Apr. 24, 1987; 59
FR 59170, Nov. 16, 1994; 63 FR 50535, Sept. 22, 1998; 67 FR 39859, June
11, 2002; 70 FR 10329, Mar. 3, 2005. Redesignated at 79 FR 24351, Apr.
30, 2014]



                 Subpart G_Information Security Program

    Source: 49 FR 44401, Nov. 6, 1984, unless otherwise noted.
Redesignated at 79 FR 24351, Apr. 30, 2014



Sec. 503.51  Definitions.

    (a) Access means the ability or opportunity to gain knowledge of
classified information.
    (b) Classification means the act or process by which information is
determined to be classified information.
    (c) Classification guide means a documentary form of instruction or
source that prescribes the classification of specific information issued
by an original classification authority that identifies the elements of
information regarding a specific subject that must be classified and
establishes the level and duration of classification for each such
element.
    (d) Classified national security information (hereafter ``classified
information'') means information that has been determined pursuant to
Executive Order 12958 or any predecessor order in force to require
protection against unauthorized disclosure and is marked to indicate its
classified status when in documentary form.
    (e) Commission means the Federal Maritime Commission.
    (f) Declassification means the authorized change in the status of
information from classified information to unclassified information.
    (g) Derivative classification means the incorporating, paraphrasing,
restating or generating in new form information that is already
classified, and marking the newly developed material consistent with the
classification markings that apply to the source information. Derivative
classification includes the classification of information based on
classification guidance. The duplication or reproduction of existing
classified information is not derivative classification.
    (h) Downgrading means a determination by a declassification
authority that information classified and safeguarded at a specified
level shall be classified and safeguarded at a lower level.
    (i) Foreign government information means:
    (1) Information provided to the United States Government by a
foreign government or governments, an international organization of
governments, or any element thereof, with the expectation that the
information, the source of the information, or both, are to be held in
confidence;
    (2) Information produced by the United States pursuant to or as a
result of a joint arrangement with a foreign government or governments,
or an international organization of governments, or any element thereof,
requiring that the information, the arrangement, or both, are to be held
in confidence; or
    (3) Information received and treated as ``Foreign Government
Information'' under the terms of Executive Order 13526 or any
predecessor order.
    (j) Mandatory declassification review means the review for
declassification of classified information in response to a request for
declassification that meets the requirements under section 3.5 of
Executive Order 13526.
    (k) Multiple sources means two or more source documents,
classification guides, or a combination of both.
    (l) National security means the national defense or foreign
relations of the United States.
    (m) Need to know means a determination made by an authorized holder
of classified information that a prospective recipient requires access
to specific classified information in order to perform or assist in a
lawful and authorized governmental function.

[[Page 109]]

    (n) Original classification means an initial determination that
information requires, in the interest of national security, protection
against unauthorized disclosure.
    (o) Original classification authority means an individual authorized
in writing, either by the President, or by agency heads or other
officials designated by the President, to classify information in the
first instance.
    (p) Self-inspection means the internal review and evaluation of
individual Commission activities and the Commission as a whole with
respect to the implementation of the program established under Executive
Order 13526 and its implementing directives.
    (q) Senior agency official means the official designated by the
Chairman under section 5.4(d) of Executive Order 13526 to direct and
administer the Commission's program under which classified information
is safeguarded.
    (r) Source document means an existing document that contains
classified information that is incorporated, paraphrased, restated, or
generated in new form into a new document.
    (s) Unauthorized disclosure means a communication or physical
transfer of classified information to an unauthorized recipient.

[64 FR 23547, May 3, 1999, as amended at 76 FR 10263, Feb. 24, 2011]



Sec. 503.52  Senior agency official.

    The Managing Director is designated as Senior Agency Official of the
Commission, and shall be responsible for directing, administering and
reporting on the Commission's information security program, which
includes oversight (self-inspection) and security information programs
to ensure effective implementation of Executive Orders 13526 and 12968
and 32 CFR part 2001.

[76 FR 10263, Feb. 24, 2011]



Sec. 503.53  Oversight Committee.

    An Oversight Committee is established, under the chairmanship of the
Senior Agency Official with the following responsibilities:
    (a) Establish a Commission security education program to familiarize
all personnel who have or may have access to classified information with
the provisions of Executive Order 13526 and directives of the
Information Security Oversight Office. The program shall include
initial, refresher, and termination briefings;
    (b) Establish controls to ensure that classified information is
used, processed, stored, reproduced, and transmitted only under
conditions that will provide adequate protection and prevent access by
unauthorized persons;
    (c) Act on all suggestions and complaints concerning the
Commission's information security program;
    (d) Recommend appropriate administrative action to correct abuse or
violations of any provision of Executive Order 13526; and
    (e) Consider and decide other questions concerning classification
and declassification that may be brought before it.

[49 FR 44401, Nov. 6, 1984, as amended at 64 FR 23548, May 3, 1999; 76
FR 10263, Feb. 24, 2011]



Sec. 503.54  Original classification.

    (a) No Commission Member or employee has the authority to originally
classify information.
    (b) If a Commission Member or employee develops information that
appears to require classification, or receives any foreign government
information as defined in section 6.1(s) of Executive Order 13526, the
Member or employee shall immediately notify the Senior Agency Official
and appropriately protect the information.
    (c) If the Senior Agency Official believes the information warrants
classification, it shall be sent to the appropriate agency with original
classification authority over the subject matter, or to the Information
Security Oversight Office, for review and a classification
determination.
    (d) If there is reasonable doubt about the need to classify
information, it shall be safeguarded as if it were classified pending a
determination by an original classification authority. If there is
reasonable doubt about the appropriate level of classification, it shall
be safeguarded at the higher level

[[Page 110]]

of classification pending a determination by an original classification
authority.

[49 FR 44401, Nov. 6, 1984, as amended at 64 FR 23548, May 3, 1999; 76
FR 10263, Feb. 24, 2011]



Sec. 503.55  Derivative classification.

    (a) In accordance with Part 2 of Executive Order 13526 and
directives of the Information Security Oversight Office, the
incorporation, paraphrasing, restating or generation in new form of
information that is already classified, and the marking of newly
developed material consistent with the classification markings that
apply to the source information, is derivative classification.
    (1) Derivative classification includes the classification of
information based on classification guidance.
    (2) The duplication or reproduction of existing classified
information is not derivative classification.
    (b) Members or employees applying derivative classification markings
shall:
    (1) Observe and respect original classification decisions; and
    (2) Carry forward to any newly created documents the pertinent
classification markings.
    (3) For information derivatively classified based on multiple
sources, the Member or employee shall carry forward:
    (i) The date or event for declassification that corresponds to the
longest period of classification among the sources; and
    (ii) A listing of these sources on or attached to the official file
or record copy.
    (c) Documents classified derivatively shall bear all markings
prescribed by 32 CFR 2001.20 through 2001.23 and shall otherwise conform
to the requirements of 32 CFR 2001.20 through 2001.23.
    (1) Classification authority. The authority for classification shall
be shown as follows:
    (i) ``Classified by (description of source documents or
classification guide),'' or
    (ii) ``Classified by multiple sources,'' if a document is classified
on the basis of more than one source document or classification guide.
    (iii) In these cases, the derivative classifier shall maintain the
identification of each source with the file or record copy of the
derivatively classified document. A document derivatively classified on
the basis of a source document that is marked ``Classified by Multiple
Sources'' shall cite the source document in its ``Classified by'' line
rather than the term ``Multiple sources.''
    (2) Declassification and downgrading instructions. Date or events
for automatic declassification or downgrading, or the notation
``Originating Agency's Determination Required'' to indicate that the
document is not to be declassified automatically, shall be carried
forward from the source document, or as directed by a classification
guide, and shown on ``declassify on'' line as follows:
    ``Declassify on: (date, description of event);'' or ``Originating
Agency's Determination Required (OADR).''

[64 FR 23548, May 3, 1999, as amended at 76 FR 10263, Feb. 24, 2011]



Sec. 503.56  General declassification and downgrading policy.

    (a) The Commission exercises declassification and downgrading
authority in accordance with section 3.1 of Executive Order 13526, only
over that information originally classified by the Commission under
previous Executive Orders. Declassification and downgrading authority
may be exercised by the Commission Chairman and the Senior Agency
Official, and such others as the Chairman may designate. Commission
personnel may not declassify information originally classified by other
agencies.
    (b) The Commission does not now have original classification
authority nor does it have in its possession any documents that it
originally classified when it had such authority. The Commission has
authorized the Archivist of the United States to automatically
declassify information originally classified by the Commission and under
its exclusive and final declassification jurisdiction at the end of 20
years from the date of original classification.

[49 FR 44401, Nov. 6, 1984, as amended at 64 FR 23548, May 3, 1999; 76
FR 10263, Feb. 24, 2011]

[[Page 111]]



Sec. 503.57  Mandatory review for declassification.

    (a) Reviews and referrals in response to requests for mandatory
declassification shall be conducted in compliance with section 3.5 of
Executive Order 13526, 32 CFR 2001.33, and 32 CFR 2001.34.
    (b) Any individual may request a review of classified information
and material in possession of the Commission for declassification. All
information classified under Executive Order 13526 or a predecessor
Order shall be subject to a review for declassification by the
Commission, if:
    (1) The request describes the documents or material containing the
information with sufficient specificity to enable the Commission to
locate it with a reasonable amount of effort. Requests with insufficient
description of the material will be returned to the requester for
further information.
    (2) The information requested is not the subject of pending
litigation.
    (3) The information requested has not been reviewed for
declassification in the previous two years. If so, the FMC shall inform
the requester of this fact and provide the requester with appeal rights
in accordance with 32 CFR 2001.33(a)(2)(iii).
    (c) Requests shall be in writing, and shall be sent to: Office of
the Managing Director, Attn.: Senior Agency Official, Federal Maritime
Commission, Washington, DC 20573 or submitted via the FMC's on-line
declassification information portal which provides an e-mail address
through which requests can be submitted: http://www.http://www.fmc.gov/
about/web--policies--notices--and--acts.aspx.
    (d) If the request requires the provision of services by the
Commission, fair and equitable fees may be charged pursuant to 31 U.S.C.
9701.
    (e) Requests for mandatory declassification reviews shall be
acknowledged by the Commission within 15 days of the date of receipt of
such requests.
    (f) If the document was derivatively classified by the Commission or
originally classified by another agency, the request, the document, and
a recommendation for action shall be forwarded to the agency with the
original classification authority. The Commission may, after
consultation with the originating agency, inform the requester of the
referral.
    (g) If a document is declassified in its entirety, it may be
released to the requester, unless withholding is otherwise warranted
under applicable law. If a document or any part of it is not
declassified, the Senior Agency Official shall furnish the declassified
portions to the requester unless withholding is otherwise warranted
under applicable law, along with a brief statement concerning the
reasons for the denial of the remainder, and the right to appeal that
decision to the Commission appellate authority within 60 days.
    (h) If a declassification determination cannot be made within 45
days, the requester shall be advised that additional time is needed to
process the request. Final determination shall be made within one year
from the date of receipt of the request. The Commission shall inform the
requester in writing of the final determination and of the reasons for
any denials. The Commission shall inform the requester in writing of his
or her final appeal rights to the Interagency Security Classification
Appeals Panel.
    (i) When a request has been submitted both under mandatory
declassification review and the Freedom of Information Act (FOIA), the
agency shall require the requester to select one process or the other.
If the requester fails to select one process or the other, the request
will be treated as a FOIA request unless the requested materials are
subject only to mandatory declassification review.

[76 FR 10263, Feb. 24, 2011]



Sec. 503.58  Appeals of denials of mandatory declassification review
requests.

    (a) Within 60 days after the receipt of denial of a request for
mandatory declassification review, the requester may submit an appeal in
writing to the Chairman through the Secretary, Federal Maritime
Commission, Washington, DC 20573. The appeal shall:
    (1) Identify the document in the same manner in which it was
identified in the original request;

[[Page 112]]

    (2) Indicate the dates of the request and denial, and the expressed
basis for the denial; and
    (3) State briefly why the document should be declassified.
    (b) The Chairman shall rule on the appeal within 60 working days of
receiving it. If additional time is required to make a determination,
the Chairman shall notify the requester of the additional time needed
and provide the requester with the reason for the extension. The
Chairman shall notify the requester in writing of the final
determination and the reasons for any denial.
    (c) In accordance with section 5.3 of Executive Order 13526 and 32
CFR 2001.33, within 60 days of such issuance, the requester may appeal a
final determination of the Commission under paragraph (b) of this
section to the Interagency Security Classification Appeals Panel. The
appeal should be addressed to, Executive Secretary, Interagency Security
Classification Appeals Panel, Attn: Classification Challenge Appeals, c/
o Information Security Oversight Office, National Archives and Records
Administration, 7th and Pennsylvania Avenue, NW., Room 5W, Washington,
DC 20408.

[76 FR 10264, Feb. 24, 2011]



Sec. 503.59  Safeguarding classified information.

    (a) All classified information shall be afforded a level of
protection against unauthorized disclosure commensurate with its level
of classification.
    (b) Whenever classified material is removed from a storage facility,
such material shall not be left unattended and shall be protected by
attaching an appropriate classified document cover sheet to each
classified document.
    (c) Classified information being transmitted from one Commission
office to another shall be protected with a classified document cover
sheet and hand delivered by an appropriately cleared person to another
appropriately cleared person.
    (d) Classified information shall be made available to a recipient
only when the authorized holder of the classified information has
determined that:
    (1) The prospective recipient has a valid security clearance at
least commensurate with the level of classification of the information;
and
    (2) The prospective recipient requires access to the information in
order to perform or assist in a lawful and authorized governmental
function.
    (e) The requirement in paragraph (d)(2) of this section, that access
to classified information may be granted only to individuals who have a
need-to-know the information, may be waived for persons who:
    (1) Are engaged in historical research projects, or
    (2) Previously have occupied policy-making positions to which they
were appointed by the President.
    (f) Waivers under paragraph (e) of this section may be granted when
the Commission Senior Agency Official:
    (1) Determines in writing that access is consistent with the
interest of national security;
    (2) Takes appropriate steps to protect classified information from
unauthorized disclosure or compromise, and ensures that the information
is properly safeguarded; and
    (3) Limits the access granted to former presidential appointees to
items that the person originated, reviewed, signed, or received while
serving as a presidential appointee.
    (g) Persons seeking access to classified information in accordance
with paragraphs (e) and (f) of this section must agree in writing:
    (1) To be subject to a national security check;
    (2) To protect the classified information in accordance with the
provisions of Executive Order 13526; and
    (3) Not to publish or otherwise reveal to unauthorized persons any
classified information.
    (h) Except as authorized by the originating agency, or otherwise
provided for by directives issued by the President, the Commission shall
not disclose information originally classified by another agency.
    (i) Only appropriately cleared personnel may receive, transmit, and
maintain current access and accountability records for classified
material.
    (j) Each office which has custody of classified material shall
maintain:

[[Page 113]]

    (1) A classified document register or log containing a listing of
all classified holdings, and
    (2) A classified document destruction register or log containing the
title and date of all classified documents that have been destroyed.
    (k) An inventory of all documents classified higher than
confidential shall be made at least annually and whenever there is a
change in classified document custodians. The Senior Agency Official
shall be notified, in writing, of the results of each inventory.
    (l) Reproduced copies of classified documents are subject to the
same accountability and controls as the original documents.
    (m) Combinations to dial-type locks shall be changed only by persons
having an appropriate security clearance, and shall be changed whenever
such equipment is placed in use; whenever a person knowing the
combination no longer requires access to the combination; whenever a
combination has been subject to possible compromise; whenever the
equipment is taken out of service; and at least once each year. Records
of combinations shall be classified no lower than the highest level of
classified information to be stored in the security equipment concerned.
One copy of the record of each combination shall be provided to the
Senior Agency Official.
    (n) Individuals charged with the custody of classified information
shall conduct the necessary inspections within their areas to insure
adherence to procedural safeguards prescribed to protect classified
information. The Commission Senior Agency Official shall conduct
periodic inspections to determine if the procedural safeguards
prescribed in this subpart are in effect at all times.
    (o) Whenever classified material is to be transmitted outside the
Commission, the custodian of the classified material shall contact the
Commission Senior Agency Official for preparation and receipting
instructions. If the material is to be hand carried, the Senior Agency
Official shall ensure that the person who will carry the material has
the appropriate security clearance, is knowledgeable of safeguarding
requirements, and is briefed, if appropriate, concerning restrictions
with respect to carrying classified material on commercial carriers.
    (p) Any person having access to and possession of classified
information is responsible for protecting it from persons not authorized
access to it, to include securing it in approved equipment or
facilities, whenever it is not under the direct supervision of
authorized persons.
    (q) Employees of the Commission shall be subject to appropriate
sanctions, which may include reprimand, suspension without pay, removal,
termination of classification authority, loss or denial of access to
classified information, or other sanctions in accordance with applicable
law and agency regulation, if they:
    (1) Knowingly, willfully, or negligently disclose to unauthorized
persons information properly classified under Executive Order 13526 or
predecessor orders;
    (2) Knowingly and willfully classify or continue the classification
of information in violation of Executive Order 13526 or any implementing
directive; or
    (3) Knowingly and willfully violate any other provision of Executive
Order 13526 or implementing directive.
    (r) Any person who discovers or believes that a classified document
is lost or compromised shall immediately report the circumstances to his
or her supervisor and the Commission Senior Agency Official, who shall
conduct an immediate inquiry into the matter.
    (s) Questions with respect to the Commission Information Security
Program, particularly those concerning the classification,
declassification, downgrading, and safeguarding of classified
information, shall be directed to the Commission Senior Agency Official.

[49 FR 44401, Nov. 6, 1984; 49 FR 47395, Dec. 4, 1984, as amended at 64
FR 23548, May 3, 1999; 76 FR 10264, Feb. 24, 2011]



   Subpart H_Access to Any Record of Identifiable Personal Information

    Source: 49 FR 44401, Nov. 6, 1984, unless otherwise noted.
Redesignated at 79 FR 24351, Apr. 30, 2014

[[Page 114]]



Sec. 503.60  Definitions.

For the purpose of this subpart:
    (a) Agency means each authority of the government of the United
States as defined in 5 U.S.C. 551(1) and shall include any executive
department, military department, government corporation, government
controlled corporation or other establishment in the executive branch of
the government (including the Executive Office of the President), or any
independent regulatory agency.
    (b) Commission means the Federal Maritime Commission.
    (c) Individual means a citizen of the United States or an alien
lawfully admitted for permanent residence to whom a record pertains.
    (d) Maintain includes maintain, collect, use, or disseminate.
    (e) Person means any person not an individual and shall include, but
is not limited to, corporations, associations, partnerships, trustees,
receivers, personal representatives, and public or private
organizations.
    (f) Record means any item, collection, or grouping of information
about an individual that is maintained by the Federal Maritime
Commission, including but not limited to a person's education, financial
transactions, medical history, and criminal or employment history, and
that contains the person's name, or the identifying number, symbol or
other identifying particular assigned to the individual, such as a
finger or voice print, or a photograph.
    (g) Routine use means [with respect to the disclosure of a record],
the use of such records for a purpose which is compatible with the
purpose for which it was collected.
    (h) Statistical record means a record in a system of records,
maintained for statistical research or reporting purposes only and not
used in whole or in part in making any determination about an
identifiable individual, but shall not include matter pertaining to the
Census as defined in 13 U.S.C. 8.
    (i) System of records means a group of any records under the control
of the Commission from which information is retrieved by the name of the
individual or by some identifying number, symbol or other identifying
particular assigned to the individual.

[49 FR 44401, Nov. 6, 1984; 49 FR 47395, Dec. 4, 1984]



Sec. 503.61  Conditions of disclosure.

    (a) Subject to the conditions of paragraphs (b) and (c) of this
section, the Commission shall not disclose any record which is contained
in a system of records, by any means of communication, to any person or
other agency who is not an individual to whom the record pertains.
    (b) Upon written request or with prior written consent of the
individual to whom the record pertains, the Commission may disclose any
such record to any person or other agency.
    (c) In the absence of a written consent from the individual to whom
the record pertains, the Commission may disclose any such record,
provided such disclosure is:
    (1) To those officers and employees of the Commission who have a
need for the record in the performance of their duties;
    (2) Required under the Freedom of Information Act (5 U.S.C 552);
    (3) For a routine use;
    (4) To the Bureau of Census for purposes of planning or carrying out
a census or survey or related activity under the provisions of title 13
U.S.C.;
    (5) To a recipient who has provided the Commission with adequate
advance written assurance that the record will be used solely as a
statistical research or reporting record, and the record is to be
transferred in a form that is not individually identifiable;
    (6) To the National Archives of the United States, as a record which
has sufficient historical or other value to warrant its continued
preservation by the United States government, or for evaluation by the
Administrator of General Services or his designee to determine whether
the record has such value;--
    (7) To another agency or to an instrumentality of any governmental
jurisdiction within or under the control of the United States for a
civil or criminal law enforcement activity authorized by law, provided
the head of the agency or instrumentality has made a prior written
request to the Secretary

[[Page 115]]

of the Commission specifying the particular record and the law
enforcement activity for which it is sought;
    (8) To either House of Congress, and to the extent of a matter
within its jurisdiction, any committee, subcommittee, or joint committee
of Congress;
    (9) To the Comptroller General, or any authorized representative,
thereof, in the course of the performance of the duties of the GAO; or
    (10) Under an order of a court of competent jurisdiction.

[49 FR 44401, Nov. 6, 1984; 49 FR 47395, Dec. 4, 1984]



Sec. 503.62  Accounting of disclosures.

    (a) The Secretary shall make an accounting of each disclosure of any
record contained in a system of records in accordance with 5 U.S.C.
552a(c)(1) and 552a(c)(2).
    (b) Except for a disclosure made under Sec. 503.61(c)(7), the
Secretary shall make the accounting described in paragraph (a) of this
section available to any individual upon written request made in
accordance with Sec. 503.63(b) or Sec. 503.63(c).
    (c) The Secretary shall make reasonable efforts to notify the
individual when any record which pertains to such individual is
disclosed to any person under compulsory legal process, when such
process becomes a matter of public record.



Sec. 503.63  Request for information.

    (a) Upon request, in person or by mail, made in accordance with the
provisions of paragraph (b) or (c) of this section, any individual shall
be informed whether or not any Commission system of records contains a
record pertaining to him or her.
    (b) Any individual requesting such information in person shall
personally appear at the Office of the Secretary, Federal Maritime
Commission, 800 North Capitol Street, NW, Washington, DC 20573 and
shall:
    (1) Provide information sufficient, in the opinion of the Secretary,
to identify the record, e.g., the individual's own name, date of birth,
place of birth, etc.;
    (2) Provide identification acceptable to the Secretary to verify the
individual's identity, e.g., driver's license, employee identification
card or medicare card;
    (3) Complete and sign the appropriate form provided by the
Secretary.
    (c) Any individual requesting such information by mail shall address
such request to the Secretary, Federal Maritime Commission, 800 North
Capitol Street, NW, Washington, DC 20573 and shall include in such
request the following:
    (1) Information sufficient in the opinion of the Secretary to
identify the record, e.g., the individual's own name, date of birth,
place of birth, etc.;
    (2) A signed notarized statement to verify his or her identity.

[49 FR 44401, Nov. 6, 1984; 49 FR 47395, Dec. 4, 1984, as amended at 63
FR 50535, Sept. 22, 1998]



Sec. 503.64  Commission procedure on request for information.

    Upon request for information made in accordance with Sec. 503.63,
the Secretary or his or her delegate shall, within 10 days (excluding
Saturdays, Sundays, and legal public holidays), furnish in writing to
the requesting party notice of the existence or nonexistence of any
records described in such request.



Sec. 503.65  Request for access to records.

    (a) General. Upon request by any individual made in accordance with
the procedures set forth in paragraph (b) of this section, such
individual shall be granted access to any record pertaining to him or
her which is contained in a Commission system of records. However,
nothing in this section shall allow an individual access to any
information compiled by the Commission in reasonable anticipation of a
civil or criminal action or proceeding.
    (b) Procedures for requests for access to records. Any individual
may request access to a record pertaining to him or her in person or by
mail in accordance with paragraphs (b) (1) and (2) of this section:
    (1) Any individual making such request in person shall do so at the
Office of the Secretary, Federal Maritime Commission, 800 North Capitol
Street, NW, Washington, DC 20573 and shall:

[[Page 116]]

    (i) Provide identification acceptable to the Secretary to verify the
individual's identity, e.g., driver's license, employee identification
card, or medicare card; and
    (ii) Complete and sign the appropriate form provided by the
Secretary.
    (2) Any individual making a request for access to records by mail
shall address such request to the Secretary, Federal Maritime
Commission, 800 North Capitol Street, NW, Washington, DC 20573 and shall
include therein a signed, notarized statement to verify his or her
identity.
    (3) Any individual requesting access to records under this section
in person may be accompanied by a person of his or her own choosing,
while reviewing the record requested. If an individual elects to be so
accompanied, he or she shall notify the Secretary of such election in
the request and shall provide a written statement authorizing disclosure
of the record in the presence of the accompanying person. Failure to so
notify the Secretary in a request for access shall be deemed to be a
decision by the individual not to be accompanied.
    (c) Commission determination of requests for access. (1) Upon
request made in accordance with this section, the Secretary or his or
her delegate shall:
    (i) Determine whether or not such request shall be granted;
    (ii) Make such determination and provide notification within 10 days
(excluding Saturdays, Sundays, and legal public holidays) after receipt
of such request, and, if such request is granted shall:
    (iii) Notify the individual that fees for reproducing copies will be
made in accordance with Sec. 503.69.
    (2) If access to a record is denied because such information has
been compiled by the Commission in reasonable anticipation of a civil or
criminal action or proceeding, or for any other reason, the Secretary
shall notify the individual of such determination and his or her right
to judicial appeal under 5 U.S.C. 552a(g).
    (d) Manner of providing access. (1) If access is granted, the
individual making such request shall notify the Secretary whether the
records requested are to be copied and mailed to the individual.
    (2) If records are to be made available for personal inspection, the
individual shall arrange with the Secretary a mutually agreeable time
and place for inspection of the record.
    (3) Fees for reproducing and mailing copies of records will be made
in accordance with Sec. 503.69.

[49 FR 44401, Nov. 6, 1984; 49 FR 47395, Dec. 4, 1984, as amended at 63
FR 50535, Sept. 22, 1998]



Sec. 503.66  Amendment of a record.

    (a) General. Any individual may request amendment of a record
pertaining to him or her according to the procedure in paragraph (b) of
this section.
    (b) Procedures for requesting amendment of a record. After
inspection of a record pertaining to him or her, an individual may file
with the Secretary a request, in person or by mail, for amendment of a
record. Such request shall specify the particular portions of the record
to be amended, the desired amendments and the reasons therefor.
    (c) Commission procedures on request for amendment of a record. (1)
Not later than ten (10) days (excluding Saturdays, Sundays, and legal
public holidays) after the date of receipt of a request made in
accordance with this section to amend a record in whole or in part, the
Secretary or his or her delegate shall:
    (i) Make any correction of any portion of the record which the
individual believes is not accurate, relevant, timely or complete and
thereafter inform the individual of such correction; or
    (ii) Inform the individual, by certified mail, return receipt
requested, of refusal to amend the record, setting out the reasons
therefor, and notify the individual of his or her right to appeal that
determination to the Chairman of the Commission under Sec. 503.67.
    (2) The Secretary shall inform any person or other agency to whom a
record has been disclosed of any correction or notation of dispute made
by the Secretary with respect to such records, in accordance with 5
U.S.C. 552a(c)(4) referring to amendment of a record, if

[[Page 117]]

an accounting of such disclosure has been made.

[49 FR 44401, Nov. 6, 1984; 49 FR 47395, Dec. 4, 1984]



Sec. 503.67  Appeals from denial of request for amendment of a record.

    (a) General. An individual whose request for amendment of a record
pertaining to him or her is denied, may further request a review of such
determination in accordance with paragraph (b) of this section.
    (b) Procedure for appeal. Not later than thirty (30) days (excluding
Saturdays, Sundays, and legal public holidays) following receipt of
notification of refusal to amend, an individual may file an appeal to
amend the record. Such appeal shall:
    (1) Be addressed to the Chairman, Federal Maritime Commission, 800
North Capitol Street, NW, Washington, DC 20573; and
    (2) Specify the reasons for which the refusal to amend is
challenged.
    (c) Commission procedure on appeal. (1) Upon appeal from a denial to
amend a record, the Chairman of the Commission or the officer designated
by the Chairman to act in his or her absence, shall make a determination
whether or not to amend the record and shall notify the individual of
that determination by certified mail, return receipt requested, not
later than thirty (30) days (excluding Saturdays, Sundays and legal
public holidays) after receipt of such appeal, unless extended pursuant
to paragraph (d) of this section.
    (2) The Chairman shall also notify the individual of the provisions
of 5 U.S.C. 552a(g)(1)(A) regarding judicial review of the Chairman's
determination.
    (3) If, on appeal, the refusal to amend the record is upheld, the
Commission shall permit the individual to file a statement setting forth
the reasons for disagreement with the Commission's determination.
    (d) The Chairman, or his or her delegate in his or her absence, may
extend up to thirty (30) days the time period prescribed in paragraph
(c)(1) of this section within which to make a determination on an appeal
from refusal to amend a record for the reasons that a fair and equitable
review cannot be completed within the prescribed time period.

[49 FR 44401, Nov. 6, 1984, as amended at 63 FR 50536, Sept. 22, 1998]



Sec. 503.68  Exemptions.

    (a) The system of records designated FMC-25 Inspector General File
is exempt from the provisions of 5 U.S.C. 552a except subsections (b),
(c) (1) and (2), (e)(4) (A) through (F), (e) (6), (7), (9), (10), and
(11) and (i) to the extent it contains information meeting the criteria
of 5 U.S.C. 552a(j)(2) pertaining to the enforcement of criminal laws.
Exemption is appropriate to avoid compromise of ongoing investigations,
disclosure of the identity of confidential sources and unwarranted
invasions of personal privacy of third parties.
    (b) The following systems of records are exempt from the provisions
of 5 U.S.C. 552a(c)(3), (d), (e)(1), (e)(4) (G), (H) and (I) and (f),
which otherwise require the Commission, among other things, to provide
the individual named in the records an accounting of disclosures and
access to and opportunity to amend the records. The scope of the
exemptions and the reasons therefor are described for each particular
system of records.
    (1) FMC-1 Personnel Security File. All information about individuals
that meets the criteria of 5 U.S.C. 552a(k)(5), regarding suitability,
eligibility or qualifications for Federal civilian employment or for
access to classified information, to the extent that disclosure would
reveal the identity of a source who furnished information to the
Commission under a promise of confidentiality. Exemption is required to
honor promises of confidentiality.
    (2) FMC-7 Licensed Ocean Freight Forwarders File. All information
that meets the criteria of 5 U.S.C. 552a(k)(2) regarding investigatory
materials compiled for law enforcement purposes. Exemption is
appropriate to avoid compromise of ongoing investigations, disclosure of
the identity of confidential sources and unwarranted invasions of
personal privacy of third parties.
    (3) FMC-22 Investigatory Files. All information that meets the
criteria of 5

[[Page 118]]

U.S.C. 552a(k)(2) regarding investigatory material compiled for law
enforcement purposes. Exemption is appropriate to avoid compromise of
ongoing investigations, disclosure of the identity of confidential
sources and unwarranted invasions of personal privacy of third parties.
    (4) FMC-24 Informal Inquiries and Complaint Files. All information
that meets the criteria of 5 U.S.C. 552a(k)(2) regarding investigatory
material compiled for law enforcement purposes. Exemption is appropriate
to avoid compromise of ongoing investigations, disclosure of the
identity of confidential sources and unwarranted invasion of personal
privacy of third parties.
    (5) FMC-25 Inspector General File. (i) All information that meets
the criteria of 5 U.S.C. 552a(k)(2) regarding investigatory material
compiled for law enforcement purposes. Exemption is appropriate to avoid
compromise of ongoing investigations, disclosure of the identity of
confidential sources and unwarranted invasions of personal privacy of
third parties.
    (ii) All information about individuals that meets the criteria of 5
U.S.C. 552a(k)(5), regarding suitability, eligibility or qualifications
for Federal civilian employment or for access to classified information,
to the extent the disclosure would reveal the identity of a source who
furnished information to the Commission under the promises of
confidentiality. Exemption is required to honor promises of
confidentiality.
    (6) FMC-26 Administrative Grievance File. (i) All information that
meets the criteria of 5 U.S.C. 552a(k)(2) regarding investigatory
material compiled for law enforcement purposes, Exemption is appropriate
to avoid compromise of ongoing investigations, disclosure of the
identity of confidential sources and unwarranted invasions of personal
privacy of third parties.
    (ii) All information about individuals that meets the criteria of 5
U.S.C. 552a(k)(5), regarding suitability, eligibility or qualification
for Federal civilian employment or for access to classified information,
to the extent that disclosure would reveal the identity of a source who
furnished information to the Commission under a promise of
confidentiality. Exemption is required to honor promises of
confidentiality.

[59 FR 15636, Apr. 4, 1994]



Sec. 503.69  Fees.

    (a) General. The following Commission services are available, with
respect to requests made under the provisions of this subpart, for which
fees will be charged as provided in paragraphs (b) and (c) of this
section:
    (1) Copying records/documents.
    (2) Certification of copies of documents.
    (b) Fees for services. The fees set forth below provide for
documents to be mailed with ordinary first-class postage prepaid. If a
copy is to be transmitted by registered, certified, air, or special
delivery mail, postage therefor will be added to the basic fee. Also, if
special handling or packaging is required, costs thereof will be added
to the basic fee.
    (1) The copying of records and documents will be available at the
rate of five cents per page (one side), limited to size 8\1/
4\ x 14 or smaller.
    (2) The certification and validation (with Federal Maritime
Commission seal) of documents filed with or issued by the Commission
will be available at $94 for each certification.
    (c) Payment of fees and charges. The fees charged for special
services may be paid by check, draft, or postal money order, payable to
the Federal Maritime Commission.

[49 FR 44401, Nov. 6, 1984, as amended at 59 FR 59171, Nov. 16, 1994; 63
FR 50536, Sept. 22, 1998; 67 FR 39860, June 11, 2002; 70 FR 10330, Mar.
3, 2005]



Subpart I_Public Observation of Federal Maritime Commission Meetings and
     Public Access to Information Pertaining to Commission Meetings

    Source: 49 FR 44401, Nov. 6, 1984, unless otherwise noted.
Redesignated at 79 FR 24351, Apr. 30, 2014



Sec. 503.70  Policy.

    It is the policy of the Federal Maritime Commission, under the
Provisions of the ``Government in the Sunshine Act'' (5 U.S.C. 552b,
Sept. 13, 1976) to

[[Page 119]]

entitle the public to the fullest practicable information regarding the
decisional processes of the Commission. The provisions of this subpart
set forth the procedural requirements designed to provide the public
with such information while continuing to protect the rights of
individuals and to maintain the capabilities of the Commission in
carrying out its responsibilities under the shipping statutes
administered by this Commission.



Sec. 503.71  Definitions.

    The following definitions apply for purposes of this subpart:
    (a) Agency means the Federal Maritime Commission;
    (b) Information pertaining to a meeting means, but is not limited to
the following: the record of any agency vote taken under the provisions
of this subpart, and the record of the vote of each member; a full
written explanation of any agency action to close any portion of any
meeting under this subpart; lists of persons expected to attend any
meeting of the agency and their affiliation; public announcement by the
agency under this subpart of the time, place, and subject matter of any
meeting or portion of any meeting; announcement of whether any meeting
or portion of any meeting shall be open to public observation or be
closed; any announcement of any change regarding any meeting or portion
of any meeting; and the name and telephone number of the Secretary of
the agency who shall be designated by the agency to respond to requests
for information concerning any meeting or portion of any meeting;
    (c) Meeting means the deliberations of a majority of the members
serving on the agency which determine or result in the joint conduct of
or disposition of official agency business, but does not include:
    (1) Individual member's consideration of official agency business
circulated to the members in writing for disposition on notation;
    (2) Deliberations by the agency in determining whether or not to
close a portion or portions of a meeting or series of meetings as
provided in Sec. Sec. 503.74 and 503.75;
    (3) Deliberations by the agency in determining whether or not to
withhold from disclosure information pertaining to a portion or portions
of a meeting or series of meetings as provided in Sec. 503.80; or
    (4) Deliberations pertaining to any change in any meeting or to
changes in the public announcement of such a meeting as provided in
Sec. 503.83;
    (d) Member means each individual Commissioner of the agency;
    (e) Person means any individual, partnership, corporation,
association, or public or private organization, other than an agency as
defined in 5 U.S.C. 551(1));
    (f) Series f meetings means more than one meeting involving the same
particular matters and scheduled to be held no more than thirty (30)
days after the initial meeting in such series.

[49 FR 44401, Nov. 6, 1984, as amended at 64 FR 23549, May 3, 1999]



Sec. 503.72  General rule--meetings.

    (a) Except as otherwise provided in Sec. Sec. 503.73, 503.74,
503.75 and 503.76, every portion of every meeting and every portion of a
series of meetings of the agency shall be open to public observation.
    (b) The opening of a portion or portions of a meeting or a portion
or portions of a series of meetings to public observation shall not be
construed to include any participation by the public in any manner in
the meeting. Such an attempted participation or participation shall be
cause for removal of any person so engaged at the discretion of the
presiding member of the agency.



Sec. 503.73  Exceptions--meetings.

    Except in a case where the agency finds that the public interest
requires otherwise, the provisions of Sec. 503.72(a) shall not apply to
any portion or portions of an agency meeting or portion or portions of a
series of meetings where the agency determined under the provisions of
Sec. 503.74 or Sec. 503.75 that such portion or portions of such
meeting or series of meetings is likely to:
    (a) Disclose matters that are (1) specifically authorized under
criteria established by an Executive order to be kept secret in the
interests of national defense or foreign policy and (2) in fact properly
classified pursuant to such Executive order;

[[Page 120]]

    (b) Relate solely to the internal personnel rules and practices of
any agency;
    (c) Disclose matters specifically exempted from disclosure by any
statute other than 5 U.S.C. 552 (FOIA), provided that such statute (1)
requires that the matter be withheld from the public in such a manner as
to leave no discretion on the issue, or (2) establishes particular
criteria for withholding or refers to particular types of matters to be
withheld;
    (d) Disclose trade secrets and commercial or financial information
obtained from a person and privileged or confidential;
    (e) Involve accusing any person of a crime, or formally censuring
any person;
    (f) Disclose information of a personal nature where disclosure would
constitute a clearly unwarranted invasion of personal privacy;
    (g) Disclose investigatory records compiled for law enforcement
purposes, or information which, if written, would be contained in such
records, but only to the extent that the production of such records or
information would
    (1) Interfere with enforcement proceedings,
    (2) Deprive a person of a right to a fair trial or an impartial
adjudication,
    (3) Constitute an unwarranted invasion of personal privacy,
    (4) Disclose the identity of a confidential source and, in the case
of a record compiled by a criminal law enforcement authority in the
course of a criminal investigation, or by an agency conducting a lawful
national security intelligence investigation, confidential information
furnished only by the confidential source,
    (5) Disclose investigative techniques and procedures, or
    (6) Endanger the life or physical safety of law enforcement
personnel;
    (h) Disclose information contained in or related to examination,
operating, or condition reports prepared by, on behalf of, or for the
use of an agency responsible for the regulation or supervision of
financial institutions;
    (i) Disclose information, the premature disclosure of which would be
likely to significantly frustrate implementation of a proposed agency
action unless the agency has already disclosed to the public the content
or nature of its proposed action, or where the agency is required by law
to make such disclosure on its own initiative prior to taking final
agency action on such proposal; or
    (j) Specifically concern the agency's issuance of a subpena, or the
agency's participation in a civil action or proceeding, an action in a
foreign court or international tribunal, or an arbitration, or the
initiation, conduct, or disposition by the agency of a particular case
of formal agency adjudication pursuant to the procedures in 5 U.S.C. 554
or otherwise involving a determination on the record after opportunity
for a hearing.

[49 FR 44401, Nov. 6, 1984; 49 FR 47395, Dec. 4, 1984]



Sec. 503.74  Procedures for closing a portion or portions of a meeting
or a portion or portions of a series of meetings on agency initiated

requests.

    (a) Any member of the agency, the Managing Director or the General
Counsel of the agency may request that any portion or portions of a
series of meetings be closed to public observation for any of the
reasons provided in Sec. 503.73 by submitting such request in writing
to the Secretary of the agency in sufficient time to allow the Secretary
to schedule a timely vote on the request pursuant to paragraph (b) of
this section.
    (b) Upon receipt of any request made under paragraph (a) of this
section, the Secretary of the agency shall schedule a time at which the
members of the agency shall vote upon the request, which vote shall take
place not later then eight (8) days prior to the scheduled meeting of
the agency.
    (c) At the time the Secretary schedules a time for an agency vote as
described in paragraph (b) of this section, he or she shall forward the
request to the General Counsel of the agency who shall act upon such
request as provided in Sec. 503.77.
    (d) At the time schedule d by the Secretary as provided in paragraph
(b) of this section, the members of the agency, upon consideration of
the request submitted under paragraph (a) of this

[[Page 121]]

section and consideration of the certified opinion of the General
Counsel of the agency provided to the members under Sec. 503.77, shall
vote upon that request. That vote shall determine whether or not any
portion or portions of a meeting may be closed to public observation for
any of the reasons provided in Sec. 503.73, and whether or not the
public interest requires that the portion or portions of the meeting or
meetings remain open, notwithstanding the applicability of any of the
reasons provided in Sec. 503.73 permitting the closing of any meeting
to public observation.
    (e) In the case of a vote on a request under this section to close
to public observation a portion or portions of a meeting, no such
portion or portions of any meeting may be closed unless, by a vote on
the issues described in paragraph (d) of this section, a majority of the
entire membership of the agency shall vote to close such portion or
portions of a meeting by recorded vote.
    (f) In the case of a vote on a request under this section to close
to public observation a portion or portions of a series of meetings as
defined in Sec. 503.71, no such portion or portions of a series of
meetings may be closed unless, by a vote on the issues described in
paragraph (d) of this section, a majority of the entire membership of
the agency shall vote to close such portion or portions of a series of
meetings. A determination to close to public observation a portion or
portions of a series of meetings may be accomplished by a single vote on
each of the issues described in paragraph (d) of this section, provided
that the vote of each member of the agency shall be recorded and the
vote shall be cast by each member and not by proxy vote.

[49 FR 44401, Nov. 6, 1984, as amended at 55 FR 38330, Sept. 18, 1990]



Sec. 503.75  Procedures for closing a portion of a meeting on request
initiated by an interested person.

    (a) Any person as defined in Sec. 503.71, whose interests may be
directly affected by a portion of a meeting of the agency, may request
that the agency close that portion of a meeting for the reason that
matters in deliberation at that portion of the meeting are such that
public disclosure of that portion of a meeting is likely to:
    (1) Involve accusing any person of a crime, or formally censuring
any person;
    (2) Disclose information of a personal nature where disclosure would
constitute a clearly unwarranted invasion of personal privacy; or
    (3) Disclose investigatory records compiled for law enforcement
purposes, or information which if written would be contained in such
records, but only to the extent that the production of such records or
information would:
    (i) Interfere with enforcement proceedings;
    (ii) Deprive a person of a right to a fair trial or an impartial
adjudication;
    (iii) Constitute an unwarranted invasion of personal privacy;
    (iv) Disclose the identity of a confidential source and, in the case
of a record compiled by a criminal law enforcement authority in the
course of a criminal investigation, or by an agency conducting a lawful
national security intelligence investigation, confidential information
furnished only by the confidential source;
    (v) Disclose investigative techniques and procedures; or
    (vi) Endanger the life or physical safety of law enforcement
personnel.
    (b) Any person described in paragraph (a) of this section who
submits a request that a portion of a meeting be closed shall submit an
original and 15 copies of that request to the Secretary, Federal
Maritime Commission, Washington, DC 20573, and shall state with
particularity that portion of a meeting sought to be closed and the
reasons therefor as described in paragraph (a) of this section.
    (c) Upon receipt of any request made under paragraphs (a) and (b) of
this section, the Secretary of the agency shall:
    (1) Furnish a copy of the request to each member of the agency; and
    (2) Furnish a copy of the request to the General Counsel of the
agency.
    (d) Upon receipt of a request made under paragraphs (a) and (b) of
this section, any member of the agency may request agency action upon
the request to close a portion of a meeting by notifying the Secretary
of the agency of that request for agency action.

[[Page 122]]

    (e) Upon receipt of a request for agency action under paragraph (d)
of this section, the Secretary of the agency shall schedule a time for
an agency vote upon the request of the person whose interests may be
directly affected by a portion of a meeting, which vote shall take place
prior to the scheduled meeting of the agency.
    (f) At the time the Secretary receives a request for agency action
and schedules a time for an agency vote as described in paragraph (e) of
this section, the request of the person whose interests may be directly
affected by a portion of a meeting shall be forwarded to the General
Counsel of the agency who shall act upon such request as provided in
Sec. 503.77.
    (g) At the time scheduled by the Secretary, as provided in paragraph
(e) of this section, the members of the agency, upon consideration of
the request of the person whose interests may be directly affected by a
portion of a meeting submitted under paragraphs (a) and (b) of this
section, and consideration of the certified opinion of the General
Counsel of the agency provided to the members under Sec. 503.77, shall
vote upon that request. That vote shall determine whether or not any
portion or portions of a meeting or portion or portions of a series of
meetings may be closed to public observation for any of the reasons
provided in paragraph (a) of this section, and whether or not the public
interest requires that the portion or portions of the meeting or
meetings remain open, notwithstanding the applicability of any of the
reasons provided in paragraph (a) of this section permitting the closing
of any portion of any meeting to public observation.
    (h) In the case of a vote on a request under this section to close
to public observation a portion of a meeting, no such portion of a
meeting may be closed unless, by a vote on the issues described in
paragraph (g) of this section, a majority of the entire membership of
the agency shall vote to close such portion of a meeting by a recorded
vote.

[49 FR 44401, Nov. 6, 1984; 49 FR 47395, Dec. 4, 1984]



Sec. 503.76  Effect of vote to close a portion or portions of a meeting
or series of meetings.

    (a) Where the agency votes as provided in Sec. 503.74 or Sec.
503.75, to close to public observation a portion or portions of a
meeting or a portion or portions of a series of meetings, the portion or
portions of a meeting or the portion or portions of a series of meetings
shall be closed.
    (b) Except as otherwise provided in Sec. Sec. 503.80, 503.81 and
503.82, not later than the day following the day on which a vote is
taken under Sec. 503.74 or Sec. 503.75, by which it is determined to
close a portion or portions of a meeting or a portion or portions of a
series of meetings to public observation, the Secretary shall make
available to the public:
    (1) A written copy of the recorded vote reflecting the vote of each
member of the agency;
    (2) A full written explanation of the agency action closing that
portion or those portions to public observation; and
    (3) A list of the names and affiliations of all persons expected to
attend the portion or portions of the meeting or the portion or portions
of a series of meetings.
    (c) Except as otherwise provided in Sec. Sec. 503.80, 503.81 and
503.82, not later than the day following the day on which a vote is
taken under Sec. 503.74, or Sec. 503.75, by which it is determined
that the portion or portions of a meeting or the portion or portions of
a series of meetings shall remain open to public observation, the
Secretary shall make available to the public a written copy of the
recorded vote reflecting the vote of each member of the agency.



Sec. 503.77  Responsibilities of the General Counsel of the agency upon
a request to close any portion of any meeting.

    (a) Upon any request that the agency close a portion or portions of
any meeting or any portion or portions of any series of meetings under
the provisions of Sec. Sec. 503.74 and 503.75, the General Counsel of
the agency shall certify in writing to the agency, prior to an agency
vote on that request, whether or not in his or her opinion the closing
of any

[[Page 123]]

such portion or portions of a meeting or portion or portions of a series
of meetings is proper under the provisions of this subpart and the terms
of the Government in the Sunshine Act (5 U.S.C. 552b). If, in the
opinion of the General Counsel, the closing of a portion or portions of
a meeting or portion or portions of a series of meetings is proper under
the provisions of this subpart and the terms of the Government in the
Sunshine Act (5 U.S.C. 552b), his or her certification of that opinion
shall cite each applicable, particular, exemptive provision of that Act
and provision of this subpart.
    (b) A copy of the certification of the General Counsel as described
in paragraph (a) of this section, together with a statement of the
officer presiding over the portion or portions of any meeting or the
portion or portions of a series of meetings setting forth the time and
place of the relevant meeting or meetings, and the persons present,
shall be maintained by the Secretary for public inspection.



Sec. 503.78  General rule--information pertaining to meeting.

    (a) As defined in Sec. 503.71, all information pertaining to a
portion or portions of a meeting or portion or portions of a series of
meetings of the agency shall be disclosed to the public unless excepted
from such disclosure under Sec. Sec. 503.79, 503.80 and 503.81.
    (b) All inquiries as to the status of pending matters which were
considered by the Commission in closed session should be directed to the
Secretary of the Commission. Commission personnel who attend closed
meetings of the Commission are prohibited from disclosing anything that
occurs during those meetings. An employee's failure to respect the
confidentiality of closed meetings constitutes a violation of
Commission's General Standards of Conduct. The Commission can, of
course, determine to make public the events or decisions occurring in a
closed meeting, such information to be disseminated by the Office of the
Secretary. An inquiry to the Office of the Secretary as to whether any
information has been made public is not, therefore, improper. However, a
request of or attempt to persuade a Commission employee to divulge the
contents of a closed meeting constitutes a lack of proper professional
conduct inappropriate to a person practicing before this agency, and
requires that the employee file a report of such event so that a
determination can be made whether disciplinary action should be
initiated pursuant to Sec. 502.30 of this chapter.



Sec. 503.79  Exceptions--information pertaining to meeting.

    Except in a case where the agency finds that the public interest
requires otherwise, information pertaining to a portion or portions of a
meeting or portion or portions of a series of meetings need not be
disclosed by the agency if the agency determines, under the provisions
of Sec. Sec. 503.80 and 503.81 that disclosure of that information is
likely to disclose matters which are:
    (a) Specifically authorized under criteria established by an
Executive order to be kept secret in the interests of national defense
or foreign policy and in fact properly classified pursuant to such
Executive order;
    (b) Related solely to the internal personnel rules and practices of
an agency;
    (c) Specifically exempted from disclosure by any statute other than
5 U.S.C. 552 (FOIA), provided that such statute (1) requires that the
matters be withheld from the public in such a manner as to leave no
discretion on the issue, or (2) establishes particular criteria for
withholding or refers to particular types of matters to be withheld;
    (d) Trade secrets and commercial or financial information, obtained
from a person and privileged or confidential;
    (e) Involved with accusing any person of a crime, or formally
censuring any person;
    (f) Of a personal nature, where disclosure would constitute a
clearly unwarranted invasion of personal privacy;
    (g) Investigatory records compiled for law enforcement purposes, or
information which if written would be contained in such records, but
only to the extent that the production of such record or information
would
    (1) Interfere with enforcement proceedings,

[[Page 124]]

    (2) Deprive a person of a right to a fair trial or an impartial
adjudication,
    (3) Constitute an unwarranted invasion of personal privacy,
    (4) Disclose the identity of a confidential source and, in the case
of a record compiled by a criminal law enforcement authority in the
course of a criminal investigation, or by an agency conducting a lawful
national security intelligence investigation, confidential information
furnished only by the confidential source,
    (5) Disclose investigative techniques and procedures, or
    (6) Endanger the life or physical safety of law enforcement
personnel;
    (h) Contained in or related to examination, operation, or condition
reports prepared by, on behalf of, or for the use of an agency
responsible for the regulation or supervision of financial institutions;
    (i) Information, the premature disclosure of which would be likely
to significantly frustrate implementation of a proposed agency action,
unless the agency has already disclosed to the public the content or
nature of its proposed action, or where the agency is required by law to
make such disclosure on its own initiative prior to taking final agency
action on such proposal; or
    (j) Specifically concerned with the agency's issuance of a subpena,
the agency's participation in a civil action or proceeding, an action in
a foreign court or international tribunal, or an arbitration, or the
initiation, conduct, or disposition by the agency of a particular case
of formal agency adjudication pursuant to the procedures in 5 U.S.C. 554
or otherwise involving a determination on the record after opportunity
for a hearing.

[49 FR 44401, Nov. 6, 1984; 49 FR 47395, Dec. 4, 1984]



Sec. 503.80  Procedures for withholding information pertaining to meeting.

    (a) Any member of the agency, or the General Counsel of the agency
may request that information pertaining to a portion or portions of a
meeting or to a portion or portions of a series of meetings be withheld
from public disclosure for any of the reasons set forth in Sec. 503.79
by submitting such request in writing to the Secretary not later than
two (2) weeks prior to the commencement of the first meeting in a series
of meetings.
    (b) Upon receipt of any request made under paragraph (a) of this
section, the Secretary shall schedule a time at which the members of the
agency shall vote upon the request, which vote shall take place not
later than eight (8) days prior to the scheduled meeting of the agency.
    (c) At the time scheduled by the Secretary in paragraph (b) of this
section, the Members of the agency, upon consideration of the request
submitted under paragraph (a) of this section, shall vote upon that
request. That vote shall determine whether or not information pertaining
to a meeting may be withheld from public disclosure for any of the
reasons provided in Sec. 503.79, and whether or not the public interest
requires that the information be disclosed notwithstanding the
applicability of the reasons provided in Sec. 503.79 permitting the
withholding from public disclosure of the information pertaining to a
meeting.
    (d) In the case of a vote on a request under this section to
withhold from public disclosure information pertaining to a portion or
portions of a meeting, no such information shall be withheld from public
disclosure unless, by a vote on the issues described in paragraph (c) of
this section, a majority of the entire membership of the agency shall
vote to withhold such information by recorded vote.
    (e) In the case of a vote on a request under this section to
withhold information pertaining to a portion or portions of a series of
meetings, no such information shall be withheld unless, by a vote on the
issues described in paragraph (c) of this section, a majority of the
entire membership of the agency shall vote to withhold such information.
A determination to withhold information pertaining to a portion or
portions of a series of meetings from public disclosure may be
accomplished by a single vote on the issues described in paragraph (c)
of this section, provided that the vote of each member of the agency
shall be recorded and the

[[Page 125]]

vote shall be cast by each member and not by proxy vote.

[49 FR 44401, Nov. 6, 1984; 49 FR 47395, Dec. 4, 1984]



Sec. 503.81  Effect of vote to withhold information pertaining to
meeting.

    (a) Where the agency votes as provided in Sec. 503.80 to withhold
from public disclosure information pertaining to a portion or portions
of a meeting or portion or portions of a series of meetings, such
information shall be excepted from the requirements of Sec. Sec.
503.78, 503.82 and 503.83.
    (b) Where the agency votes as provided in Sec. 503.80 to permit
public disclosure of information pertaining to a portion of portions of
a meeting or portion or portions of a series of meetings, such
information shall be disclosed to the public as required by Sec. Sec.
503.78, 503.82 and 503.83.
    (c) Not later than the day following the date on which a vote is
taken under Sec. 503.80, by which the information pertaining to a
meeting is determined to be disclosed, the Secretary shall make
available to the public a written copy of such vote reflecting the vote
of each member of the agency on the question.

[49 FR 44401, Nov. 6, 1984; 49 FR 47395, Dec. 4, 1984]



Sec. 503.82  Public announcement of agency meeting.

    (a) Except as provided in Sec. Sec. 503.80 and 503.81 regarding a
determination to withhold from public disclosure any information
pertaining to a portion or portions of a meeting or portion or portions
of a series of meetings, or as otherwise provided in paragraph (c) of
this section, the Secretary of the agency shall make public announcement
of each meeting of the agency.
    (b) Except as otherwise provided in this section, public
announcement of each meeting of the agency shall be accomplished not
later than one week prior to commencement of a meeting or the
commencement of the first meeting in a series of meetings, and shall
disclose:
    (1) The time of the meeting;
    (2) The place of the meeting;
    (3) The subject matter of each portion of each meeting or series of
meetings;
    (4) Whether any portion or portions of a meeting or portion or
portions of any series of meetings shall be open or closed to public
observation; and
    (5) The name and telephone number of the Secretary of the agency who
shall respond to requests for information about a meeting.
    (c) The announcement described in paragraphs (a) and (b) of this
section may be accomplished less than one week prior to the commencement
of any meeting or series of meetings, provided the agency determines by
recorded vote that the agency business requires that any such meeting or
series of meetings be held at an earlier date. In the event of such a
determination by the agency, public announcement as described in
paragraph (b) of this section shall be accomplished at the earliest
practicable time.
    (d) Immediately following any public announcement accomplished under
the provisions of this section, the Secretary of the agency shall submit
a notice for publication in the Federal Register disclosing:
    (1) The time of the meeting;
    (2) The place of the meeting;
    (3) The subject matter of each portion of each meeting or series of
meetings;
    (4) Whether any portion or portions of a meeting or portion or
portions of any series of meetings is open or closed to public
observation; and
    (5) The name and telephone number of the Secretary of the agency who
shall respond to requests for information about any meeting.
    (e) No comments or further information relating to a particular item
scheduled for an agency meeting will be accepted by the Secretary for
consideration subsequent to public announcement of such meeting; except
that the Commission, on its own initiative, or pursuant to a written
request, may in its discretion, permit a departure from this limitation
for exceptional circumstances.

[49 FR 44401, Nov. 6, 1984, as amended at 52 FR 27002, July 17, 1987]

[[Page 126]]



Sec. 503.83  Public announcement of changes in meeting.

    (a) Except as provided in Sec. Sec. 503.80 and 503.81, under the
provisions of paragraphs (b) and (c) of this section, the time or place
of a meeting or series of meetings may be changed by the agency
following accomplishment of the announcement and notice required by
Sec. 503.82, provided the Secretary of the agency shall publicly
announce such change at the earliest practicable time.
    (b) The subject matter of a portion or portions of a meeting or a
portion or portions of a series of meetings, the time and place of such
meeting, and the determination that the portion or portions of a series
of meetings shall be open or closed to public observation may be changed
following accomplishment of the announcement required by Sec. 503.82,
provided:
    (1) The agency, by recorded vote of the majority of the entire
membership of the agency, determines that agency business so requires
and that no earlier announcement of the change was possible; and
    (2) The Secretary of the agency publicly announces, at the earliest
practicable time, the change made and the vote of each member upon such
change.
    (c) Immediately following any public announcement of any change
accomplished under the provisions of this section, the Secretary of the
agency shall submit a notice for publication in the Federal Register
disclosing:
    (1) The time of the meeting;
    (2) The place of the meeting;
    (3) The subject matter of each portion of each meeting or series of
meetings;
    (4) Whether any portion or portions of any meeting or any portion or
portions of any series of meetings is open or closed to public
observation;
    (5) Any change in paragraphs (c) (1), (c) (2), (c) (3), or (c) (4)
of this section; and
    (6) The name and telephone number of the Secretary of the agency who
shall respond to requests for information about any meeting.



Sec. 503.84  [Reserved]



Sec. 503.85  Agency recordkeeping requirements.

    (a) In the case of any portion or portions of a meeting or portion
or portions of a series of meetings determined by the agency to be
closed to public observation under the provisions of this subpart, the
following records shall be maintained by the Secretary of the agency:
    (1) The certification of the General Counsel of the agency required
by Sec. 503.77;
    (2) A statement from the officer presiding over the portion or
portions of the meeting or portion or portions of a series of meetings
setting forth the time and place of the portion or portions of the
meeting or portion or portions of the series of meetings, the persons
present at those times; and
    (3) Except as provided in paragraph (b) of this section, a complete
transcript or electronic recording fully recording the proceedings at
each portion of each meeting closed to public observation.
    (b) In case the agency determines to close to public observation any
portion or portions of any meeting or portion or portions of any series
of meetings because public observation of such portion or portions of
any meeting is likely to specifically concern the agency's issuance of a
subpena, or the agency's participation in a civil action or proceeding,
an action in a foreign court or international tribunal, or an
arbitration, or the initiation, conduct, or disposition by the agency of
a particular case of formal agency adjudication pursuant to the
procedures in 5 U.S.C. 554 or otherwise involving a determination on the
record after opportunity for a hearing, the agency may maintain a set of
minutes in lieu of the transcript or recording described in paragraph
(a)(3) of this section. Such minutes shall contain:
    (1) A full and clear description of all matters discussed in the
closed portion of any meeting;
    (2) A full and accurate summary of any action taken on any matter
discussed in the closed portion of any meeting and the reasons therefor;

[[Page 127]]

    (3) A description of each of the views expressed on any matter upon
which action was taken as described in paragraph (b)(2) of this section;
    (4) The record of any rollcall vote which shall show the vote of
each member on the question; and
    (5) An identification of all documents considered in connection with
any action taken on a matter described in paragraph (b)(1) of this
section.
    (c) All records maintained by the agency as described in this
section shall be held by the agency for a period of not less than two
(2) years following any meeting or not less than one (1) year following
the conclusion of any agency proceeding with respect to which that
meeting or portion of a meeting was held.

[49 FR 44401, Nov. 6, 1984; 49 FR 47395, Dec. 4, 1984]



Sec. 503.86  Public access to records.

    (a) All transcripts, electronic recordings or minutes required to be
maintained by the agency under the provisions of Sec. Sec. 503.85(a)(3)
and 503.85(b) shall be promptly made available to the public by the
Secretary of the agency, except for any item of discussion or testimony
of any witnesses which the agency determines to contain information
which may be withheld from public disclosure because its disclosure is
likely to disclose matters which are:
    (1)(i) specifically authorized under criteria established by an
Executive order to be kept secret in the interest of national defense or
foreign policy and (ii) in fact properly classified pursuant to such
Executive order;
    (2) Related solely to the internal personnel rules and practices of
an agency;
    (3) Specifically exempted from disclosure by any statute other than
5 U.S.C. 552 (FOIA), provided that such statute
    (i) Requires that the matters be withheld from the public in such a
manner as to leave no discretion on the issue, or
    (ii) Establishes particular criteria for withholding or refers to
particular types of matters to be withheld;
    (4) Trade secrets and commercial or financial information obtained
from a person and privileged or confidential;
    (5) Involved with accusing any person of a crime, or formally
censuring any person;
    (6) Of a personal nature where disclosure would constitute a clearly
unwarranted invasion of personal privacy;
    (7) Investigatory records compiled for law enforcement purposes, or
information which, if written, would be contained in such records, but
only to the extent that the production of such records or information
would
    (i) Interfere with enforcement proceedings,
    (ii) Deprive a person of a right to a fair trial or an impartial
adjudication,
    (iii) Constitute an unwarranted invasion of personal privacy,
    (iv) Disclose the identity of a confidential source and, in the case
of a record compiled by a criminal law enforcement authority in the
course of a criminal investigation, or by an agency conducting a lawful
national security intelligence investigation, confidential information
furnished only by the confidential source,
    (v) Disclose investigative techniques and procedures or
    (vi) Endanger the life or physical safety of law enforcement
personnel;
    (8) Contained in or related to examination, operating, or condition
reports prepared by, on behalf of, or for the use of an agency
responsible for the regulation or supervision of financial institutions;
    (9) Information, the premature disclosure of which would be likely
to significantly frustrate implementation of a proposed agency action,
unless the agency has already disclosed to the public the content or
nature of its proposed action, or where the agency is required by law to
make such disclosure on its own initiative prior to taking final agency
action on such proposal; or
    (10) Specifically concerned with the agency's issuance of a subpena,
or the agency's participation in a civil action or proceeding, an action
in a foreign court or international tribunal, or an arbitration, or the
initiation, conduct, or disposition by the agency of a particular case
of formal agency adjudication pursuant to the procedures in 5

[[Page 128]]

U.S.C. 554 or otherwise involving a determination on the record after
opportunity for a hearing.
    (b) Requests for access to the records described in this section
shall be made in accordance with procedures described in subparts C and
D of this part.
    (c) Records disclosed to the public under this section shall be
furnished at the expense of the party requesting such access at the
actual cost of duplication or transcription.

[49 FR 44401, Nov. 6, 1984, as amended at 64 FR 23549, May 3, 1999]



Sec. 503.87  Effect of provisions of this subpart on other subparts.

    (a) Nothing in this subpart shall limit or expand the ability of any
person to seek access to agency records under subpart D (Sec. Sec.
503.31 to 503.36) of this part except that the exceptions of Sec.
503.86 shall govern requests to copy or inspect any portion of any
transcript, electronic recordings or minutes required to be kept under
this subpart.
    (b) Nothing in this subpart shall permit the withholding from any
individual to whom a record pertains any record required by this subpart
to be maintained by the agency which record is otherwise available to
such an individual under the provisions of subpart G of this part.

[49 FR 44401, Nov. 6, 1984; 49 FR 47395, Dec. 4, 1984]



PART 504_PROCEDURES FOR ENVIRONMENTAL POLICY ANALYSIS--Table of Contents



Sec.
504.1 Purpose and scope.
504.2 Definitions.
504.3 General information.
504.4 Categorical exclusions.
504.5 Environmental assessments.
504.6 Finding of no significant impact.
504.7 Environmental impact statements.
504.8 Record of decision.
504.9 Information required by the Commission.
504.10 Time constraints on final administrative actions.
504.91 OMB control numbers assigned pursuant to the Paperwork Reduction
          Act.

    Authority: 5 U.S.C. 552, 553; 46 U.S.C. 305 and 41107-41109; 42
U.S.C. 4332(2)(b), and 42 U.S.C. 6362.

    Source: 49 FR 44415, Nov. 6, 1984, unless otherwise noted.



Sec. 504.1  Purpose and scope.

    (a) This part implements the National Environmental Policy Act of
1969 (NEPA) and Executive Order 12114 and incorporates and complies with
the Regulations of the Council on Environmental Quality (CEQ) (40 CFR
part 1500 et seq.).
    (b) This part applies to all actions of the Federal Maritime
Commission (Commission). To the extent possible, the Commission shall
integrate the requirements of NEPA with its obligations under section
382(b) of the Energy Policy and Conservation Act of 1975, 42 U.S.C.
6362.
    (c) Information obtained under this part is used by the Commission
to assess potential environmental impacts of proposed Federal Maritime
Commission actions. Compliance is voluntary but may be made mandatory by
Commission order to produce the information pursuant to section 15 of
the Shipping Act of 1984 (46 U.S.C. 40104). The penalty for violation of
a Commission order under section 13 of the Shipping Act of 1984 (46
U.S.C. 41107-41109) may not exceed $5,000 for each violation, unless the
violation was willfully and knowingly committed, in which case the
amount of the civil penalty may not exceed $25,000 for each violation,
as adjusted by Sec. 506.4 of this chapter. (Each day of a continuing
violation constitutes a separate offense.)

[49 FR 44415, Nov. 6, 1984, as amended at 64 FR 23549, May 3, 1999; 74
FR 50718, Oct. 1, 2009]



Sec. 504.2  Definitions.

    (a) Shipping Act of 1984 means the Shipping Act of 1984 (46 U.S.C.
40101-41309).
    (b) Common carrier means any common carrier by water as defined in
section 3 of the Shipping Act of 1984 (46 U.S.C. 40102), including a
conference of such carriers.
    (c) Environmental impact means any alteration of existing
environmental conditions or creation of a new set of environmental
conditions, adverse or beneficial, caused or induced by the action under
consideration.

[[Page 129]]

    (d) Potential action means the range of possible Commission actions
that may result from a Commission proceeding in which the Commission has
not yet formulated a proposal.
    (e) Proposed action means that stage of activity where the
Commission has determined to take a particular course of action and the
effects of that course of action can be meaningfully evaluated.
    (f) Environmental assessment means a concise document that serves to
``provide sufficient evidence and analysis for determining whether to
prepare an environmental impact statement or a finding of no significant
impact'' (40 CFR 1508.9).
    (g) Recyclable means any secondary material that can be used as a
raw material in an industrial process in which it is transformed into a
new product replacing the use of a depletable natural resource.
    (h) Marine Terminal Operator means a person engaged in the United
States in the business of furnishing wharfage, dock, warehouse or other
terminal facilities in connection with a common carrier, or in
connection with a common carrier and a water carrier subject to
subchapter II of chapter 135 of Title 49, United States Code.
    (i) Commission means the Federal Maritime Commission, including any
office or bureau to which the Commission may delegate its environmental
policy analysis responsibilities.

[49 FR 44415, Nov. 6, 1984, as amended at 64 FR 23549, May 3, 1999; 74
FR 50718, Oct. 1, 2009]



Sec. 504.3  General information.

    (a) All comments submitted pursuant to this part shall be addressed
to the Secretary, Federal Maritime Commission, 800 North Capitol Street,
N.W., Washington, D.C. 20573-0001.
    (b) A list of recent Commission actions, if any, for which a finding
of no significant impact has been made or for which an environmental
impact statement is being prepared will be maintained by the Commission
in the Office of the Secretary and will be available for public
inspection.
    (c) Information or status reports on environmental statements and
other elements of the NEPA process can be obtained from the Secretary,
Federal Maritime Commission, 800 North Capitol Street, N.W., Washington,
D.C. 20573-0001.

[64 FR 23549, May 3, 1999]



Sec. 504.4  Categorical exclusions.

    (a) No environmental analyses need be undertaken or environmental
documents prepared in connection with actions which do not individually
or cumulatively have a significant effect on the quality of the human
environment because they are purely ministerial actions or because they
do not increase or decrease air, water or noise pollution or the use of
fossil fuels, recyclables, or energy. The following Commission actions,
and rulemakings related thereto, are therefore excluded:
    (1) Issuance, modification, denial and revocation of ocean
transportation intermediary licenses.
    (2) Certification of financial responsibility of passenger vessels
pursuant to 46 CFR part 540.
    (3) Receipt of surety bonds submitted by ocean transportation
intermediaries.
    (4) Promulgation of procedural rules pursuant to 46 CFR part 502.
    (5) Receipt of service contracts.
    (6) Consideration of special permission applications pursuant to
part 520 of this chapter.
    (7)-(8) [Reserved]
    (9) Consideration of amendments to agreements filed pursuant to
section 5 of the Shipping Act of 1984 (46 U.S.C. 40301(d)-(e), 40302-
40303, 40305), which do not increase the authority set forth in the
effective agreement.
    (10) Consideration of agreements between common carriers which
solely affect intraconference or inter-rate agreement relationships or
pertain to administrative matters of conferences or rate agreements.
    (11) Consideration of agreements between common carriers to discuss,
propose or plan future action, the implementation of which requires
filing a further agreement.
    (12) Consideration of exclusive or non-exclusive equipment
interchange or husbanding agreements.
    (13) Receipt of non-exclusive transshipment agreements.

[[Page 130]]

    (14) Action relating to collective bargaining agreements.
    (15) Action pursuant to section 9 of the Shipping Act of 1984 (46
U.S.C. 40701-40706) concerning the justness and reasonableness of
controlled carriers' rates, charges, classifications, rules or
regulations.
    (16) Receipt of self-policing reports or shipper requests and
complaints.
    (17) [Reserved]
    (18) Consideration of actions solely affecting the environment of a
foreign country.
    (19) Action taken on special docket applications pursuant to Sec.
502.271 of this chapter.
    (20) Consideration of matters related solely to the issue of
Commission jurisdiction.
    (21) [Reserved]
    (22) Investigatory and adjudicatory proceedings, the purpose of
which is to ascertain past violations of the Shipping Act of 1984.
    (23) [Reserved]
    (24) Action regarding access to public information pursuant to 46
CFR part 503.
    (25) Action regarding receipt and retention of minutes of conference
meetings.
    (26) Administrative procurements (general supplies).
    (27) Contracts for personal services.
    (28) Personnel actions.
    (29) Requests for appropriations.
    (30) Consideration of all agreements involving marine terminal
facilities and/or services except those requiring substantial levels of
construction, dredging, land-fill, energy usage and other activities
which may have a significant environmental effect.
    (31) Consideration of agreements regulating employee wages, hours of
work, working conditions or labor exchanges.
    (32) Consideration of general agency agreements involving
ministerial duties of a common carrier such as internal management,
cargo solicitation, booking of cargo, or preparation of documents.
    (33) Consideration of agreements pertaining to credit rules.
    (34) Consideration of agreements involving performance bonds to a
conference from a conference member guaranteeing compliance by the
member with the rules and regulations of the conference.
    (35) Consideration of agreements between members of two or more
conferences or other rate-fixing agreements to discuss and agree upon
common self-policing systems and cargo inspection services.
    (b) If interested persons allege that a categorically-excluded
action will have a significant environmental effect (e.g., increased or
decreased air, water or noise pollution; use of recyclables; use of
fossil fuels or energy), they shall, by written submission to the
Secretary, explain in detail their reasons. The Secretary shall refer
these submissions for determination by the appropriate Commission
official, not later than ten (10) days after receipt, whether to prepare
an environmental assessment. Upon a determination not to prepare an
environmental assessment, such persons may petition the Commission for
review of the decision within ten (10) days of receipt of notice of such
determination.
    (c) If the individual or cumulative effect of a particular action
otherwise categorically excluded offers a reasonable potential of having
a significant environmental impact, an environmental assessment shall be
prepared pursuant to Sec. 504.5.

[49 FR 44415, Nov. 6, 1984; 49 FR 47395, Dec. 4, 1984, as amended at 56
FR 50662, Oct. 8, 1991; 60 FR 27229, May 23, 1995; 61 FR 66617, Dec. 18,
1996; 64 FR 23549, May 3, 1999; 74 FR 50718, Oct. 1, 2009]



Sec. 504.5  Environmental assessments.

    (a) Every Commission action not specifically excluded under Sec.
504.4 shall be subject to an environmental assessment.
    (b) A notice of intent to prepare an environmental assessment
briefly describing the nature of the potential or proposed action and
inviting written comments to aid in the preparation of the environmental
assessment and early identification of the significant environmental
issues may be published in the Federal Register. Such comments must be
received by the Commission no later than ten (10) days

[[Page 131]]

from the date of publication of the notice in the Federal Register.

[49 FR 44415, Nov. 6, 1984, as amended at 64 FR 23549, May 3, 1999]



Sec. 504.6  Finding of no significant impact.

    (a) If upon completion of an environmental assessment, it is
determined that a potential or proposed action will not have a
significant impact on the quality of the human environment of the United
States or of the global commons, a finding of no significant impact
shall be prepared and notice of its availability published in the
Federal Register. This document shall include the environmental
assessment or a summary of it, and shall briefly present the reasons why
the potential or proposed action, not otherwise excluded under Sec.
504.4, will not have a significant effect on the human environment and
why, therefore, an environmental impact statement (EIS) will not be
prepared.
    (b) Petitions for review of a finding of no significant impact must
be received by the Commission within ten (10) days from the date of
publication of the notice of its availability in the Federal Register.
The Commission shall review the petitions and either deny them or order
prepared an EIS pursuant to Sec. 504.7. The Commission shall, within
ten (10) days of receipt of the petition, serve copies of its order upon
all parties who filed comments concerning the potential or proposed
action or who filed petitions for review.

[64 FR 23549, May 3, 1999]



Sec. 504.7  Environmental impact statements.

    (a) General. (1) An environmental impact statement (EIS) shall be
prepared when the environmental assessment indicates that a potential or
proposed action may have a significant impact upon the environment of
the United States or the global commons.
    (2) The EIS process will commence:
    (i) For adjudicatory proceedings, when the Commission issues an
order of investigation or a complaint is filed;
    (ii) For rulemaking or legislative proposals, upon issuance of the
proposal by the Commission; and
    (iii) For other actions, the time the action is noticed in the
Federal Register.
    (3) The major decision points in the EIS process are:
    (i) The issuance of an initial decision in those cases assigned to
be heard by an Administrative Law Judge (ALJ); and
    (ii) The issuance of the Commission's final decision or report on
the action.
    (4) The EIS shall consider potentially significant impacts upon the
quality of the human environment of the United States and, in
appropriate cases, upon the environment of the global commons outside
the jurisdiction of any nation.
    (b) Draft environmental impact statements. (1) A draft environmental
impact statement (DEIS) will initially be prepared in accordance with 40
CFR part 1502.
    (2) The DEIS shall be distributed to every party to a Commission
proceeding for which it was prepared. There will be no fee charged to
such parties. One copy per person will also be provided to interested
persons at their request. The fee charged such persons shall be that
provided in Sec. 503.43 of this chapter.
    (3) Comments on the DEIS must be received by the Commission within
ten (10) days of the date the Environmental Protection Agency (EPA)
publishes in the Federal Register notice that the DEIS was filed with
it. Sixteen copies shall be submitted as provided in Sec. 504.3(a).
Comments shall be as specific as possible and may address the adequacy
of the DEIS or the merits of the alternatives discussed in it. All
comments received will be made available to the public. Extensions of
time for commenting on the DEIS may be granted by the Commission for up
to ten (10) days if good cause is shown.
    (c) Final environmental impact statements. (1) After receipt of
comments on the DEIS, a final environmental impact statement (FEIS) will
be prepared pursuant to 40 CFR part 1502, which shall include a
discussion of the possible alternative actions to a potential or
proposed action. The FEIS will be distributed in the same manner as
specified in paragraph (b)(2) of this section.

[[Page 132]]

    (2) The FEIS shall be prepared prior to the Commission's final
decision and shall be filed with the Secretary, Federal Maritime
Commission. Upon filing, it shall become part of the administrative
record.
    (3) For any Commission action which has been assigned to an ALJ for
evidentiary hearing:
    (i) The FEIS shall be submitted prior to the close of the record,
and
    (ii) The ALJ shall consider the environmental impacts and
alternatives contained in the FEIS in preparing the initial decision.
    (4)(i) For all proposed Commission actions, any party may, by
petition to the Commission within ten (10) days following EPA's notice
in the Federal Register, assert that the FEIS contains a substantial and
material error of fact which can only be properly resolved by conducting
an evidentiary hearing, and expressly request that such a hearing be
held. Other parties may submit replies to the petition within ten (10)
days of its receipt.
    (ii) The Commission may delineate the issue(s) and refer them to an
ALJ for expedited resolution or may elect to refer the petition to an
ALJ for consideration.
    (iii) The ALJ shall make findings of fact on the issue(s) and shall
certify such findings to the Commission as a supplement to the FEIS. To
the extent that such findings differ from the FEIS, it shall be modified
by the supplement.
    (iv) Discovery may be granted by the ALJ on a showing of good cause
and, if granted, shall proceed on an expedited basis.

[49 FR 44415, Nov. 6, 1984; 49 FR 47395, Dec. 4, 1984, as amended at 64
FR 23550, May 3, 1999]



Sec. 504.8  Record of decision.

    The Commission shall consider each alternative described in the FEIS
in its decisionmaking and review process. At the time of its final
report or order, the Commission shall prepare a record of decision
pursuant to 40 CFR 1505.2.



Sec. 504.9  Information required by the Commission.

    (a) Upon request, a person filing a complaint, protest, petition or
agreement requesting Commission action shall submit, no later than ten
(10) days from the date of the request, a statement setting forth, in
detail, the impact of the requested Commission action on the quality of
the human environment, if such requested action will:
    (1) Alter cargo routing patterns between ports or change modes of
transportation;
    (2) Change rates or services for recyclables;
    (3) Change the type, capacity or number of vessels employed in a
specific trade; or
    (4) Alter terminal or port facilities.
    (b) The statement submitted shall, to the fullest extent possible,
include:
    (1) The probable impact of the requested Commission action on the
environment (e.g., the use of energy or natural resources, the effect on
air, noise, or water pollution), compared to the environmental impact
created by existing uses in the area affected by it;
    (2) Any adverse environmental effects which cannot be avoided if the
Commission were to take or adopt the requested action; and
    (3) Any alternatives to the requested Commission action.
    (c) If environmental impacts, either adverse or beneficial, are
alleged, they should be sufficiently identified and quantified to permit
meaningful review. Individuals may contact the Secretary of the Federal
Maritime Commission for informal assistance in preparing this statement.
The Commission shall independently evaluate the information submitted
and shall be responsible for assuring its accuracy if used by it in the
preparation of an environmental assessment or EIS.
    (d) In all cases, the Secretary may request every common carrier by
water, or marine terminal operator, or any officer, agent or employee
thereof, as well as all parties to proceedings before the Commission, to
submit, within ten (10) days of such request, all material information
necessary to comply with NEPA and this part. Information not

[[Page 133]]

produced in response to an informal request may be obtained by the
Commission pursuant to section 15 of the Shipping Act of 1984 (46 U.S.C.
40104).

[49 FR 44415, Nov. 6, 1984; 49 FR 47395, Dec. 4, 1984, as amended at 64
FR 23550, May 3, 1999; 74 FR 50718, Oct. 1, 2009]



Sec. 504.10  Time constraints on final administrative actions.

    No decision on a proposed action shall be made or recorded by the
Commission until the later of the following dates unless reduced
pursuant to 40 CFR 1506.10(d), or unless required by a statutorily-
prescribed deadline on the Commission action:
    (a) Forty (40) days after EPA's publication of the notice described
in Sec. 504.7(b) for a DEIS; or
    (b) Ten (10) days after publication of EPA's notice for an FEIS.



Sec. 504.91  OMB control numbers assigned pursuant to the Paperwork
Reduction Act.

    This section displays the control numbers assigned to information
collection requirements of the Commission in this part by the Office of
Management and Budget pursuant to the Paperwork Reduction Act of 1980,
Public Law 96-511. The Commission intends that this section comply with
the requirements of section 3507(f) of the Paperwork Reduction Act,
which requires that agencies display a current control number assigned
by the Director of the Office of Management and Budget (OMB) for each
agency information collection requirement:

------------------------------------------------------------------------
                                                            Current OMB
                         Section                            Control No.
------------------------------------------------------------------------
504.4 through 504.7.....................................       3072-0035
504.9...................................................      3072-0035.
------------------------------------------------------------------------



PART 505_ADMINISTRATIVE OFFSET--Table of Contents



Sec.
505.1 Scope of regulations.
505.2 Definitions.
505.3 General.
505.4 Notification procedures.
505.5 Agency review.
505.6 Written agreement for repayment.
505.7 Administrative offset.
505.8 Jeopardy procedure.

    Authority: 31 U.S.C. 3701; 31 U.S.C. 3711; 31 U.S.C. 3716.

    Source: 61 FR 50444, Sept. 26, 1996, unless otherwise noted.



Sec. 505.1  Scope of regulations.

    These regulations apply to the collection of debts owed to the
United States arising from transactions with the Commission, or where a
request for an offset is received by the Commission from another agency.
These regulations are consistent with the Federal Claims Collection
Standards on administrative offset issued jointly by the Department of
Justice and the General Accounting Office as set forth in 4 CFR 102.3.



Sec. 505.2  Definitions.

    (a) Administrative offset, as defined in 31 U.S.C. 3701(a)(1), means
withholding money payable by the United States Government to, or held by
the Government for, a person to satisfy a debt the person owes the
Government.
    (b) Person includes a natural person or persons, profit or non-
profit corporation, partnership, association, trust, estate, consortium,
or other entity which is capable of owing a debt to the United States
Government except that agencies of the United States, or of any State or
local government shall be excluded.



Sec. 505.3  General.

    (a) The Chairman or his or her designee, after attempting to collect
a debt from a person under section 3(a) of the Federal Claims Collection
Act of 1966, as assembled (31 U.S.C. 3711(a)), may collect the debt by
administrative offset subject to the following:
    (1) The debt is certain in amount; and
    (2) It is in the best interests of the United States to collect the
debt by administrative offset because of the decreased costs of
collection and the acceleration in the payment of the debt.
    (b) The Chairman, or his or her designee, may initiate
administrative offset with regard to debts owed by a person to another
agency of the United States Government, upon receipt of a request from
the head of another agency or his or her designee, and a certification
that the debt exists and that the person has been afforded the necessary
due process rights.

[[Page 134]]

    (c) The Chairman, or his or her designee, may request another agency
that holds funds payable to a Commission debtor to offset the debt
against the funds held and will provide certification that:
    (1) The debt exists; and
    (2) The person has been afforded the necessary due process rights.
    (d) If the six-year period for bringing action on a debt provided in
28 U.S.C. 2415 has expired, then administrative offset may be used to
collect the debt only if the costs of bringing such action are likely to
be less than the amount of the debt.
    (e) No collection by administrative offset shall be made on any debt
that has been outstanding for more than 10 years unless facts material
to the Government's right to collect the debt were not known, and
reasonably could not have been known, by the official or officials
responsible for discovering and collecting such debt.
    (f) These regulations do not apply to:
    (1) A case in which administrative offset of the type of debt
involved is explicitly provided for or prohibited by another statute; or
    (2) Debts owed by other agencies of the United States or by any
State or local government.



Sec. 505.4  Notification procedures.

    Before collecting any debt through administrative offset, a notice
of intent to offset shall be sent to the debtor by certified mail,
return receipt requested, at the most current address that is available
to the Commission. The notice shall provide:
    (a) A description of the nature and amount of the debt and the
intention of the Commission to collect the debt through administrative
offset;
    (b) An opportunity to inspect and copy the records of the Commission
with respect to the debt;
    (c) An opportunity for review within the Commission of the
determination of the Commission with respect to the debt; and
    (d) An opportunity to enter into a written agreement for the
repayment of the amount of the debt.



Sec. 505.5  Agency review.

    (a) A debtor may dispute the existence of the debt, the amount of
debt, or the terms of repayment. A request to review a disputed debt
must be submitted to the Commission official who provided notification
within 30 calendar days of the receipt of the written notice described
in Sec. 505.4.
    (b) If the debtor requests an opportunity to inspect or copy the
Commission's records concerning the disputed claim, 10 business days
will be granted for the review. The time period will be measured from
the time the request for inspection is granted or from the time the copy
of the records is received by the debtor.
    (c) Pending the resolution of a dispute by the debtor, transactions
in any of the debtor's account(s) maintained in the Commission may be
temporarily suspended. Depending on the type of transaction the
suspension could preclude its payment, removal, or transfer, as well as
prevent the payment of interest or discount due thereon. Should the
dispute be resolved in the debtor's favor, the suspension will be
immediately lifted.
    (d) During the review period, interest, penalties, and
administrative costs authorized under the Federal Claims Collection Act
of 1996, as amended, will continue to accrue.



Sec. 505.6  Written agreement for repayment.

    A debtor who admits liability but elects not to have the debt
collected by administrative offset will be afforded an opportunity to
negotiate a written agreement for the repayment of the debt. If the
financial condition of the debtor does not support the ability to pay in
one lump-sum, reasonable installments may be considered. No installment
arrangement will be considered unless the debtor submits a financial
statement, executed under penalty of perjury, reflecting the debtor's
assets, liabilities, income, and expenses. The financial statement must
be submitted within 10 business days of the Commission's request for the
statement. At the Commission's option, a confess-judgment note or bond
of indemnity with surety may be required

[[Page 135]]

for installment agreements. Notwithstanding the provisions of this
section, any reduction or compromise of a claim will be governed by 4
CFR part 103.



Sec. 505.7  Administrative offset.

    (a) If the debtor does not exercise the right to request a review
within the time specified in Sec. 505.5 or if as a result of the
review, it is determined that the debt is due and no written agreement
is executed, then administrative offset shall be ordered in accordance
with these regulations without further notice.
    (b) Requests for offset to other Federal agencies. The Chairman or
his or her designee may request that funds due and payable to a debtor
by another Federal agency be administratively offset in order to collect
a debt owed to the Commission by that debtor. In requesting
administrative offset, the Commission, as creditor, will certify in
writing to the Federal agency holding funds of the debtor:
    (1) That the debtor owes the debt;
    (2) The amount and basis of the debt; and
    (3) That the agency has complied with the requirements of 31 U.S.C.
3716, its own administrative offset regulations and the applicable
provisions of 4 CFR part 102 with respect to providing the debtor with
due process.
    (c) Requests for offset from other Federal agencies. Any Federal
agency may request that funds due and payable to its debtor by the
Commission be administratively offset in order to collect a debt owed to
such Federal agency by the debtor. The Commission shall initiate the
requested offset only upon:
    (1) Receipt of written certification from the creditor agency:
    (i) That the debtor owes the debt;
    (ii) The amount and basis of the debt;
    (iii) That the agency has prescribed regulations for the exercise of
administrative offset; and
    (iv) That the agency has complied with its own administrative offset
regulations and with the applicable provisions of 4 CFR part 102,
including providing any required hearing or review.
    (2) A determination by the Commission that collection by offset
against funds payable by the Commission would be in the best interest of
the United States as determined by the facts and circumstances of the
particular case, and that such offset would not otherwise be contrary to
law.



Sec. 505.8  Jeopardy procedure.

    The Commission may effect an administrative offset against a payment
to be made to the debtor prior to the completion of the procedures
required by Sec. Sec. 505.4 and 505.5 of this part if failure to take
the offset would substantially jeopardize the Commission's ability to
collect the debt, and the time before the payment is to be made does not
reasonably permit the completion of those procedures. Such prior offset
shall be promptly followed by the completion of those procedures.
Amounts recovered by offset but later found not to be owed to the
Commission shall be promptly refunded.



PART 506_CIVIL MONETARY PENALTY INFLATION ADJUSTMENT--Table of Contents



Sec.
506.1 Scope and purpose.
506.2 Definitions.
506.3 Civil monetary penalty inflation adjustment.
506.4 Cost of living adjustments of civil monetary penalties.
506.5 Application of increase to violations.

    Authority: 28 U.S.C. 2461.

    Source: 61 FR 52705, Oct. 8, 1996, unless otherwise noted.



Sec. 506.1  Scope and purpose.

    The purpose of this Part is to establish a mechanism for the regular
adjustment for inflation of civil monetary penalties and to adjust such
penalties in conformity with the Federal Civil Penalties Inflation
Adjustment Act of 1990 (28 U.S.C. 2461 note), as amended by the Debt
Collection Improvement Act of 1996, Public Law 104-134, April 26, 1996,
in order to maintain the deterrent effect of civil monetary penalties
and to promote compliance with the law.

[61 FR 52705, Oct. 8, 1996, as amended at 74 FR 50718, Oct. 1, 2009]

[[Page 136]]



Sec. 506.2  Definitions.

    (a) Commission means the Federal Maritime Commission.
    (b) Civil Monetary Penalty means any penalty, fine, or other
sanction that:
    (1)(i) Is for a specific monetary amount as provided by Federal law;
or
    (ii) Has a maximum amount provided by Federal law;
    (2) Is assessed or enforced by the Commission pursuant to Federal
law; and
    (3) Is assessed or enforced pursuant to an administrative proceeding
or a civil action in the Federal Courts.
    (c) Consumer Price Index means the Consumer Price Index for all
urban consumers published by the Department of Labor.



Sec. 506.3  Civil monetary penalty inflation adjustment.

    The Commission shall, not later than October 23, 1996, and at least
once every 4 years thereafter--
    (a) By regulation adjust each civil monetary penalty provided by law
within the jurisdiction of the Commission by the inflation adjustment
described in Sec. 506.4; and
    (b) Publish each such regulation in the Federal Register.



Sec. 506.4  Cost of living adjustments of civil monetary penalties.

    (a) The inflation adjustment under Sec. 506.3 shall be determined
by increasing the maximum civil monetary penalty for each civil monetary
penalty by the cost-of-living adjustment. Any increase determined under
this subsection shall be rounded to the nearest:
    (1) Multiple of $10 in the case of penalties less than or equal to
$100;
    (2) Multiple of $100 in the case of penalties greater than $100 but
less than or equal to $1,000;
    (3) Multiple of $1,000 in the case of penalties greater than $1,000
but less than or equal to $10,000;
    (4) Multiple of $5,000 in the case of penalties greater than $10,000
but less than or equal to $100,000;
    (5) Multiple of $10,000 in the case of penalties greater than
$100,000 but less than or equal to $200,000; and
    (6) Multiple of $25,000 in the case of penalties greater than
$200,000.
    (b) For purposes of paragraph (a) of this section, the term `cost-
of-living adjustment' means the percentage (if any) for each civil
monetary penalty by which the Consumer Price Index for the month of June
of the calendar year preceding the adjustment, exceeds the Consumer
Price Index for the month of June of the calendar year in which the
amount of such civil monetary penalty was last set or adjusted pursuant
to law.
    (c) Limitation on initial adjustment. The first adjustment of civil
monetary penalty pursuant to Sec. 506.3 may not exceed 10 percent of
such penalty.
    (d) Inflation adjustment. Maximum Civil Monetary Penalties within
the jurisdiction of the Federal Maritime Commission are adjusted for
inflation as follows:
---------------------------------------------------------------------------

    \3\ Application of the statutory rounding resulted in no increase to
these penalties.   4Application of the statutory rounding
resulted in no increase to these penalties.
---------------------------------------------------------------------------



----------------------------------------------------------------------------------------------------------------
                                                                                       Current     New adjusted
                                                                                       maximum        maximum
        United States Code citation            Civil Monetary Penalty description      penalty        penalty
                                                                                        amount        amount
----------------------------------------------------------------------------------------------------------------
46 U.S.C. 42304............................  Adverse impact on U.S. carriers by        1,500,000       1,600,000
                                              foreign shipping practices.
46 U.S.C. 41107(a).........................  Knowing and Willful violation/Shipping       40,000          45,000
                                              Act of 1984, or Commission regulation
                                              or order.
46 U.S.C. 41107(b).........................  Violation of Shipping Act of 1984,            8,000           9,000
                                              Commission regulation or order, not
                                              knowing and willful.
46 U.S.C. 41108(b).........................  Operating in foreign commerce after          75,000          80,000
                                              tariff suspension.
46 U.S.C. 42104............................  Failure to provide required reports,          8,000          $9,000
                                              etc./Merchant Marine Act of 1920.
46 U.S.C. 42106............................  Adverse shipping conditions/Merchant      1,500,000       1,600,000
                                              Marine Act of 1920.
46 U.S.C. 42108............................  Operating after tariff or service            75,000          80,000
                                              contract suspension/Merchant Marine
                                              Act of 1920.
46 U.S.C. 44102............................  Failure to establish financial                8,000           9,000
                                              responsibility for non-performance of          300         \3\ 300
                                              transportation.
46 U.S.C. 44103............................  Failure to establish financial                8,000           9,000
                                              responsibility for death or injury.            300         \4\ 300
31 U.S.C. 3802(a)(1).......................  Program Fraud Civil Remedies Act/makes        8,000           9,000
                                              false claim.

[[Page 137]]


31 U.S.C. 3802(a)(2).......................  Program Fraud Civil Remedies Act/             8,000           9,000
                                              giving false statement.
----------------------------------------------------------------------------------------------------------------


[61 FR 52705, Oct. 8, 1996, as amended at 64 FR 23550, May 3, 1999; 65
FR 49741, Aug. 15, 2000; 74 FR 38115, July 31, 2009; 76 FR 74720, Dec.
1, 2011; 79 FR 37663, July 2, 2014]



Sec. 506.5  Application of increase to violations.

    Any increase in a civil monetary penalty under this part shall apply
only to violations which occur after the date the increase takes effect.



PART 507_ENFORCEMENT OF NONDISCRIMINATION ON THE BASIS OF HANDICAP IN
PROGRAMS OR ACTIVITIES CONDUCTED BY THE FEDERAL MARITIME

COMMISSION--Table of Contents



Sec.
507.101 Purpose.
507.102 Application.
507.103 Definitions.
507.104-507.109 [Reserved]
507.110 Self-evaluation.
507.111 Notice.
507.112-507.129 [Reserved]
507.130 General prohibitions against discrimination.
507.131-507.139 [Reserved]
507.140 Employment.
507.141-507.148 [Reserved]
507.149 Program accessibility: Discrimination prohibited.
507.150 Program accessibility: Existing facilities.
507.151 Program accessibility: New construction and alterations.
507.152-507.159 [Reserved]
507.160 Communications.
507.161-507.169 [Reserved]
507.170 Compliance procedures.
507.171-507.999 [Reserved]

    Authority: 29 U.S.C. 794.

    Source: 51 FR 22895, 22896, June 23, 1986, unless otherwise noted.



Sec. 507.101  Purpose.

    This part effectuates section 119 of the Rehabilitation,
Comprehensive Services, and Developmental Disabilities Amendments of
1978, which amended section 504 of the Rehabilitation Act of 1973 to
prohibit discrimination on the basis of handicap in programs or
activities conducted by Executive agencies or the United States Postal
Service.



Sec. 507.102  Application.

    This part applies to all programs or activities conducted by the
agency.



Sec. 507.103  Definitions.

    For purposes of this part, the term--
    Assistant Attorney General means the Assistant Attorney General,
Civil Rights Division, United States Department of Justice.
    Auxiliary aids means services or devices that enable persons with
impaired sensory, manual, or speaking skills to have an equal
opportunity to participate in, and enjoy the benefits of, programs or
activities conducted by the agency. For example, auxiliary aids useful
for persons with impaired vision include readers, brailled materials,
audio recordings, telecommunications devices and other similar services
and devices. Auxiliary aids useful for persons with impaired hearing
include telephone handset amplifiers, telephones compatible with hearing
aids, telecommunication devices for deaf persons (TDD's), interpreters,
notetakers, written materials, and other similar services and devices.
    Complete complaint means a written statement that contains the
complainant's name and address and describes the agency's alleged
discriminatory action in sufficient detail to inform the agency of the
nature and date of the alleged violation of section 504. It shall be
signed by the complainant or by someone authorized to do so on his or
her behalf. Complaints filed on behalf of classes or third parties shall
describe or identify (by name, if possible) the alleged victims of
discrimination.
    Facility means all or any portion of buildings, structures,
equipment, roads, walks, parking lots, rolling

[[Page 138]]

stock or other conveyances, or other real or personal property.
    Handicapped person means any person who has a physical or mental
impairment that substantially limits one or more major life activities,
has a record of such an impairment, or is regarded as having such an
impairment.
    As used in this definition, the phrase:
    (1) Physical or mental impairment includes--
    (i) Any physiological disorder or condition, cosmetic disfigurement,
or anatomical loss affecting one or more of the following body systems:
Neurological; musculoskeletal; special sense organs; respiratory,
including speech organs; cardiovascular; reproductive; digestive;
genitourinary; hemic and lymphatic; skin; and endocrine; or
    (ii) Any mental or psychological disorder, such as mental
retardation, organic brain syndrome, emotional or mental illness, and
specific learning disabilities. The term physical or mental impairment
includes, but is not limited to, such diseases and conditions as
orthopedic, visual, speech, and hearing impairments, cerebral palsy,
epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease,
diabetes, mental retardation, emotional illness, and drug addiction and
alcoholism.
    (2) Major life activities includes functions such as caring for
one's self, performing manual tasks, walking, seeing, hearing, speaking,
breathing, learning, and working.
    (3) Has a record of such an impairment means has a history of, or
has been misclassified as having, a mental or physical impairment that
substantially limits one or more major life activities.
    (4) Is regarded as having an impairment means--
    (i) Has a physical or mental impairment that does not substantially
limit major life activities but is treated by the agency as constituting
such a limitation;
    (ii) Has a physical or mental impairment that substantially limits
major life activities only as a result of the attitudes of others toward
such impairment; or
    (iii) Has none of the impairments defined in paragraph (1) of this
definition but is treated by the agency as having such an impairment.
    Historic preservation programs means programs conducted by the
agency that have preservation of historic properties as a primary
purpose.
    Historic properties means those properties that are listed or
eligible for listing in the National Register of Historic Places or
properties designated as historic under a statute of the appropriate
State or local government body.
    Qualified handicapped person means--
    (1) With respect to preschool, elementary, or secondary education
services provided by the agency, a handicapped person who is a member of
a class of persons otherwise entitled by statute, regulation, or agency
policy to receive education services from the agency.
    (2) With respect to any other agency program or activity under which
a person is required to perform services or to achieve a level of
accomplishment, a handicapped person who meets the essential eligibility
requirements and who can achieve the purpose of the program or activity
without modifications in the program or activity that the agency can
demonstrate would result in a fundamental alteration in its nature;
    (3) With respect to any other program or activity, a handicapped
person who meets the essential eligibility requirements for
participation in, or receipt of benefits from, that program or activity;
and
    (4) Qualified handicapped person is defined for purposes of
employment in 29 CFR 1613.702(f), which is made applicable to this part
by Sec. 507.140.
    Section 504 means section 504 of the Rehabilitation Act of 1973
(Pub. L. 93-112, 87 Stat. 394 (29 U.S.C. 794)), as amended by the
Rehabilitation Act Amendments of 1974 (Pub. L. 93-516, 88 Stat. 1617),
and the Rehabilitation, Comprehensive Services, and Developmental
Disabilities Amendments of 1978 (Pub. L. 95-602, 92 Stat. 2955). As used
in this part, section 504 applies only to programs or activities
conducted by Executive agencies and not to federally assisted programs.
    Substantial impairment means a significant loss of the integrity of
finished materials, design quality, or special

[[Page 139]]

character resulting from a permanent alteration.



Sec. Sec. 507.104-507.109  [Reserved]



Sec. 507.110  Self-evaluation.

    (a) The agency shall, by August 24, 1987, evaluate its current
policies and practices, and the effects thereof, that do not or may not
meet the requirements of this part, and, to the extent modification of
any such policies and practices is required, the agency shall proceed to
make the necessary modifications.
    (b) The agency shall provide an opportunity to interested persons,
including handicapped persons or organizations representing handicapped
persons, to participate in the self-evaluation process by submitting
comments (both oral and written).
    (c) The agency shall, until three years following the completion of
the self-evaluation, maintain on file and make available for public
inspection:
    (1) A description of areas examined and any problems identified, and
    (2) A description of any modifications made.



Sec. 507.111  Notice.

    The agency shall make available to employees, applicants,
participants, beneficiaries, and other interested persons such
information regarding the provisions of this part and its applicability
to the programs or activities conducted by the agency, and make such
information available to them in such manner as the head of the agency
finds necessary to apprise such persons of the protections against
discrimination assured them by section 504 and this regulation.



Sec. Sec. 507.112-507.129  [Reserved]



Sec. 507.130  General prohibitions against discrimination.

    (a) No qualified handicapped person shall, on the basis of handicap,
be excluded from participation in, be denied the benefits of, or
otherwise be subjected to discrimination under any program or activity
conducted by the agency.
    (b)(1) The agency, in providing any aid, benefit, or service, may
not, directly or through contractual, licensing, or other arrangements,
on the basis of handicap--
    (i) Deny a qualified handicapped person the opportunity to
participate in or benefit from the aid, benefit, or service;
    (ii) Afford a qualified handicapped person an opportunity to
participate in or benefit from the aid, benefit, or service that is not
equal to that afforded others;
    (iii) Provide a qualified handicapped person with an aid, benefit,
or service that is not as effective in affording equal opportunity to
obtain the same result, to gain the same benefit, or to reach the same
level of achievement as that provided to others;
    (iv) Provide different or separate aid, benefits, or services to
handicapped persons or to any class of handicapped persons than is
provided to others unless such action is necessary to provide qualified
handicapped persons with aid, benefits, or services that are as
effective as those provided to others;
    (v) Deny a qualified handicapped person the opportunity to
participate as a member of planning or advisory boards; or
    (vi) Otherwise limit a qualified handicapped person in the enjoyment
of any right, privilege, advantage, or opportunity enjoyed by others
receiving the aid, benefit, or service.
    (2) The agency may not deny a qualified handicapped person the
opportunity to participate in programs or activities that are not
separate or different, despite the existence of permissibly separate or
different programs or activities.
    (3) The agency may not, directly or through contractual or other
arrangments, utilize criteria or methods of administration the purpose
or effect of which would--
    (i) Subject qualified handicapped persons to discrimination on the
basis of handicap; or
    (ii) Defeat or substantially impair accomplishment of the objectives
of a program activity with respect to handicapped persons.
    (4) The agency may not, in determining the site or location of a
facility, make selections the purpose or effect of which would--

[[Page 140]]

    (i) Exclude handicapped persons from, deny them the benefits of, or
otherwise subject them to discrimination under any program or activity
conducted by the agency; or
    (ii) Defeat or substantially impair the accomplishment of the
objectives of a program or activity with respect to handicapped persons.
    (5) The agency, in the selection of procurement contractors, may not
use criteria that subject qualified handicapped persons to
discrimination on the basis of handicap.
    (6) The agency may not administer a licensing or certification
program in a manner that subjects qualified handicapped persons to
discrimination on the basis of handicap, nor may the agency establish
requirements for the programs or activities of licensees or certified
entities that subject qualified handicapped persons to discrimination on
the basis of handicap. However, the programs or activities of entities
that are licensed or certified by the agency are not, themselves,
covered by this part.
    (c) The exclusion of nonhandicapped persons from the benefits of a
program limited by Federal statute or Executive order to handicapped
persons or the exclusion of a specific class of handicapped persons from
a program limited by Federal statute or Executive order to a different
class of handicapped persons is not prohibited by this part.
    (d) The agency shall administer programs and activities in the most
integrated setting appropriate to the needs of qualified handicapped
persons.



Sec. Sec. 507.131-507.139  [Reserved]



Sec. 507.140  Employment.

    No qualified handicapped person shall, on the basis of handicap, be
subjected to discrimination in employment under any program or activity
conducted by the agency. The definitions, requirements, and procedures
of section 501 of the Rehabilitation Act of 1973 (29 U.S.C. 791), as
established by the Equal Employment Opportunity Commission in 29 CFR
part 1613, shall apply to employment in federally conducted programs or
activities.



Sec. Sec. 507.141-507.148  [Reserved]



Sec. 507.149  Program accessibility: Discrimination prohibited.

    Except as otherwise provided in Sec. 507.150, no qualified
handicapped person shall, because the agency's facilities are
inaccessible to or unusable by handicapped persons, be denied the
benefits of, be excluded from participation in, or otherwise be
subjected to discrimination under any program or activity conducted by
the agency.



Sec. 507.150  Program accessibility: Existing facilities.

    (a) General. The agency shall operate each program or activity so
that the program or activity, when viewed in its entirety, is readily
accessible to and usable by handicapped persons. This paragraph does
not--
    (1) Necessarily require the agency to make each of its existing
facilities accessible to and usable by handicapped persons;
    (2) In the case of historic preservation programs, require the
agency to take any action that would result in a substantial impairment
of significant historic features of an historic property; or
    (3) Require the agency to take any action that it can demonstrate
would result in a fundamental alteration in the nature of a program or
activity or in undue financial and administrative burdens. In those
circumstances where agency personnel believe that the proposed action
would fundamentally alter the program or activity or would result in
undue financial and administrative burdens, the agency has the burden of
proving that compliance with Sec. 507.150(a) would result in such
alteration or burdens. The decision that compliance would result in such
alteration or burdens must be made by the agency head or his or her
designee after considering all agency resources available for use in the
funding and operation of the conducted program or activity, and must be
accompanied by a written statement of the reasons for reaching that
conclusion. If an action would result in such an alteration or such
burdens, the agency shall take any other action that would not result in
such an alteration or such burdens

[[Page 141]]

but would nevertheless ensure that handicapped persons receive the
benefits and services of the program or activity.
    (b) Methods--(1) General. The agency may comply with the
requirements of this section through such means as redesign of
equipment, reassignment of services to accessible buildings, assignment
of aides to beneficiaries, home visits, delivery of services at
alternate accessible sites, alteration of existing facilities and
construction of new facilities, use of accessible rolling stock, or any
other methods that result in making its programs or activities readily
accessible to and usable by handicapped persons. The agency is not
required to make structural changes in existing facilities where other
methods are effective in achieving compliance with this section. The
agency, in making alterations to existing buildings, shall meet
accessibility requirements to the extent compelled by the Architectural
Barriers Act of 1968, as amended (42 U.S.C. 4151-4157), and any
regulations implementing it. In choosing among available methods for
meeting the requirements of this section, the agency shall give priority
to those methods that offer programs and activities to qualified
handicapped persons in the most integrated setting appropriate.
    (2) Historic preservation programs. In meeting the requirements of
Sec. 507.150(a) in historic preservation programs, the agency shall
give priority to methods that provide physical access to handicapped
persons. In cases where a physical alteration to an historic property is
not required because of Sec. 507.150 (a)(2) or (a)(3), alternative
methods of achieving program accessibility include--
    (i) Using audio-visual materials and devices to depict those
portions of an historic property that cannot otherwise be made
accessible;
    (ii) Assigning persons to guide handicapped persons into or through
portions of historic properties that cannot otherwise be made
accessible; or
    (iii) Adopting other innovative methods.
    (c) Time period for compliance. The agency shall comply with the
obligations established under this section by October 21, 1986, except
that where structural changes in facilities are undertaken, such changes
shall be made by August 22, 1989, but in any event as expeditiously as
possible.
    (d) Transition plan. In the event that structural changes to
facilities will be undertaken to achieve program accessibility, the
agency shall develop, by February 23, 1987, a transition plan setting
forth the steps necessary to complete such changes. The agency shall
provide an opportunity to interested persons, including handicapped
persons or organizations representing handicapped persons, to
participate in the development of the transition plan by submitting
comments (both oral and written). A copy of the transition plan shall be
made available for public inspection. The plan shall, at a minimum--
    (1) Identify physical obstacles in the agency's facilities that
limit the accessibility of its programs or activities to handicapped
persons;
    (2) Describe in detail the methods that will be used to make the
facilities accessible;
    (3) Specify the schedule for taking the steps necessary to achieve
compliance with this section and, if the time period of the transition
plan is longer than one year, identify steps that will be taken during
each year of the transition period; and
    (4) Indicate the official responsible for implementation of the
plan.



Sec. 507.151  Program accessibility: New construction and alterations.

    Each building or part of a building that is constructed or altered
by, on behalf of, or for the use of the agency shall be designed,
constructed, or altered so as to be readily accessible to and usable by
handicapped persons. The definitions, requirements, and standards of the
Architectural Barriers Act (42 U.S.C. 4151-4157), as established in 41
CFR 101-19.600 to 101-19.607, apply to buildings covered by this
section.

[[Page 142]]



Sec. Sec. 507.152-507.159  [Reserved]



Sec. 507.160  Communications.

    (a) The agency shall take appropriate steps to ensure effective
communication with applicants, participants, personnel of other Federal
entities, and members of the public.
    (1) The agency shall furnish appropriate auxiliary aids where
necessary to afford a handicapped person an equal opportunity to
participate in, and enjoy the benefits of, a program or activity
conducted by the agency.
    (i) In determining what type of auxiliary aid is necessary, the
agency shall give primary consideration to the requests of the
handicapped person.
    (ii) The agency need not provide individually prescribed devices,
readers for personal use or study, or other devices of a personal
nature.
    (2) Where the agency communicates with applicants and beneficiaries
by telephone, telecommunication devices for deaf person (TDD's) or
equally effective telecommunication systems shall be used.
    (b) The agency shall ensure that interested persons, including
persons with impaired vision or hearing, can obtain information as to
the existence and location of accessible services, activities, and
facilities.
    (c) The agency shall provide signage at a primary entrance to each
of its inaccessible facilities, directing users to a location at which
they can obtain information about accessible facilities. The
international symbol for accessibility shall be used at each primary
entrance of an accessible facility.
    (d) This section does not require the agency to take any action that
it can demonstrate would result in a fundamental alteration in the
nature of a program or activity or in undue financial and administrative
burdens. In those circumstances where agency personnel believe that the
proposed action would fundamentally alter the program or activity or
would result in undue financial and administrative burdens, the agency
has the burden of proving that compliance with Sec. 507.160 would
result in such alteration or burdens. The decision that compliance would
result in such alteration or burdens must be made by the agency head or
his or her designee after considering all agency resources available for
use in the funding and operation of the conducted program or activity,
and must be accompanied by a written statement of the reasons for
reaching that conclusion. If an action required to comply with this
section would result in such an alteration or such burdens, the agency
shall take any other action that would not result in such an alteration
or such burdens but would nevertheless ensure that, to the maximum
extent possible, handicapped persons receive the benefits and services
of the program or activity.



Sec. Sec. 507.161-507.169  [Reserved]



Sec. 507.170  Compliance procedures.

    (a) Except as provided in paragraph (b) of this section, this
section applies to all allegations of discrimination on the basis of
handicap in programs or activities conducted by the agency.
    (b) The agency shall process complaints alleging violations of
section 504 with respect to employment according to the procedures
established by the Equal Employment Opportunity Commission in 29 CFR
part 1614 pursuant to section 501 of the Rehabilitation Act of 1973 (29
U.S.C. 791).
    (c) The Director, Bureau of Administration shall be responsible for
coordinating implementation of this section. Complaints may be sent to
the Director, Bureau of Administration, Federal Maritime Commission, 800
North Capitol Street, N.W., Washington, DC 20573.
    (d) The agency shall accept and investigate all complete complaints
for which it has jurisdiction. All complete complaints must be filed
within 180 days of the alleged act of discrimination. The agency may
extend this time period for good cause.
    (e) If the agency receives a complaint over which it does not have
jurisdiction, it shall promptly notify the complainant and shall make
reasonable efforts to refer the complaint to the appropriate government
entity.
    (f) The agency shall notify the Architectural and Transportation
Barriers Compliance Board upon receipt of any complaint alleging that a
building or

[[Page 143]]

facility that is subject to the Architectural Barriers Act of 1968, as
amended (42 U.S.C. 4151-4157), or section 502 of the Rehabilitation Act
of 1973, as amended (29 U.S.C. 792), is not readily accessible to and
usable by handicapped persons.
    (g) Within 180 days of the receipt of a complete complaint for which
it has jurisdiction, the agency shall notify the complainant of the
results of the investigation in a letter containing--
    (1) Findings of fact and conclusions of law;
    (2) A description of a remedy for each violation found; and
    (3) A notice of the right to appeal.
    (h) Appeals of the findings of fact and conclusions of law or
remedies must be filed by the complainant within 90 days of receipt from
the agency of the letter required by Sec. 507.170(g). The agency may
extend this time for good cause.
    (i) Timely appeals shall be accepted and processed by the head of
the agency.
    (j) The head of the agency shall notify the complainant of the
results of the appeal within 60 days of the receipt of the request. If
the head of the agency determines that additional information is needed
from the complainant, he or she shall have 60 days from the date of
receipt of the additional information to make his or her determination
on the appeal.
    (k) The time limits cited in paragraphs (g) and (j) of this section
may be extended with the permission of the Assistant Attorney General.
    (l) The agency may delegate its authority for conducting complaint
investigations to other Federal agencies, except that the authority for
making the final determination may not be delegated to another agency.

[51 FR 22895, June 23, 1986, as amended at 51 FR 22896, June 23, 1986;
64 FR 23551, May 3, 1999]



Sec. Sec. 507.171-507.999  [Reserved]



PART 508_EMPLOYEE ETHICAL CONDUCT STANDARDS AND FINANCIAL DISCLOSURE
REGULATIONS--Table of Contents



Sec.
508.101 Cross-referrence to employee ethical conduct standards and
          financial disclosure regulations.

    Authority: 5 U.S.C. 553; 5 U.S.C. 7301; 46 U.S.C. 305.



Sec. 508.101  Cross-referrence to employee ethical conduct standards and
financial disclosure regulations.

    Employees of the Federal Maritime Commission (``FMC'') should refer
to the executive branch-wide Standards of Ethical Conduct at 5 CFR part
2635, and the executive branch-wide financial disclosure regulation at 5
CFR part 2634.

[60 FR 9787, Feb. 22, 1995. Redesignated at 64 FR 23546, May 3, 1999]

[[Page 144]]



  SUBCHAPTER B_REGULATIONS AFFECTING OCEAN SHIPPING IN FOREIGN COMMERCE





PART 515_LICENSING, FINANCIAL RESPONSIBILITY REQUIREMENTS, AND GENERAL
DUTIES FOR OCEAN TRANSPORTATION INTERMEDIARIES--Table of Contents



                            Subpart A_General

Sec.
515.1 Scope.
515.2 Definitions.
515.3 License; when required.
515.4 License; when not required.
515.5 Forms and fees.

            Subpart B_Eligibility and Procedure for Licensing

515.11 Basic requirements for licensing; eligibility.
515.12 Application for license.
515.13 Investigation of applicants.
515.14 Issuance and use of license.
515.15 Denial of license.
515.16 Revocation or suspension of license.
515.17 Application after revocation or denial.
515.18 Changes in organization.
515.19 Registration of foreign-based unlicensed NVOCC.

 Subpart C_Financial Responsibility Requirements; Claims Against Ocean
                      Transportation Intermediaries

515.21 Financial responsibility requirements.
515.22 Proof of financial responsibility.
515.23 Claims against an ocean transportation intermediary.
515.24 Agent for service of process.
515.25 Filing of proof of financial responsibility.
515.26 Termination of financial responsibility.
515.27 Proof of compliance.

Appendix A to Subpart C of Part 515--Ocean Transportation Intermediary
          (OTI) Bond Form [Form-48]
Appendix B to Subpart C of Part 515--Ocean Transportation Intermediary
          (OTI) Insurance Form [Form-67]
Appendix C to Subpart C of Part 515--Ocean Transportation Intermediary
          (OTI) Guaranty Form [Form-68]
Appendix D to Subpart C of Part 515--Ocean Transportation Intermediary
          (OTI) Group Bond Form [FMC-69]
Appendix E to Subpart C of Part 515--Optional Rider for Additional NVOCC
          Financial Responsibility (Optional Rider to Form FMC-48] [FORM
          48A]
Appendix F to Subpart C of Part 515--Optional Rider for Additional NVOCC
          Financial Responsibility for Group Bonds(Optional Rider to
          Form FMC-69]

     Subpart D_Duties and Responsibilities of Ocean Transportation
                  Intermediaries; Reports to Commission

515.31 General duties.
515.32 Freight forwarder duties.
515.33 Records required to be kept.
515.34 Regulated Persons Index.

           Subpart E_Freight Forwarding Fees and Compensation

515.41 Forwarder and principal; fees.
515.42 Forwarder and carrier; compensation.
515.91 OMB control number assigned pursuant to the Paperwork Reduction
          Act.

    Authority: 5 U.S.C. 553; 31 U.S.C. 9701; 46 U.S.C. 305, 40102,
40104, 40501-40503, 40901-40904, 41101-41109, 41301-41302, 41305-41307;
Pub. L. 105-383, 112 Stat. 3411; 21 U.S.C. 862.

    Source: 64 FR 11171, Mar. 8, 1999, unless otherwise noted.

    Editorial Note: Nomenclature changes to part 515 appear at 67 FR
39860, June 11, 2002, and 70 FR 7669, Feb. 15, 2005.



                            Subpart A_General



Sec. 515.1  Scope.

    (a) This part sets forth regulations providing for the licensing as
ocean transportation intermediaries of persons who wish to carry on the
business of providing intermediary services, including the grounds and
procedures for revocation and suspension of licenses. This part also
prescribes the financial responsibility requirements and the duties and
responsibilities of ocean transportation intermediaries, and regulations
concerning practices of ocean transportation intermediaries with respect
to common carriers.
    (b) Information obtained under this part is used to determine the
qualifications of ocean transportation intermediaries and their
compliance with shipping statutes and regulations. Failure to follow the
provisions of this part

[[Page 145]]

may result in denial, revocation or suspension of an ocean
transportation intermediary license. Persons operating without the
proper license may be subject to civil penalties not to exceed $5,500
for each such violation unless the violation is willfully and knowingly
committed, in which case the amount of the civil penalty may not exceed
$27,500 for each violation; for other violations of the provisions of
this part, the civil penalties range from $5,500 to $27,500 for each
violation (46 U.S.C. 41107-41109). Each day of a continuing violation
shall constitute a separate violation.

[64 FR 11171, Mar. 8, 1999, as amended at 74 FR 50719, Oct. 1, 2009]



Sec. 515.2  Definitions.

    The terms used in this part are defined as follows:
    (a) Act means the Shipping Act of 1984, as amended by the Ocean
Shipping Reform Act of 1998 and the Coast Guard Authorization Act of
1998.
    (b) Beneficial interest includes a lien or interest in or right to
use, enjoy, profit, benefit, or receive any advantage, either
proprietary or financial, from the whole or any part of a shipment of
cargo where such interest arises from the financing of the shipment or
by operation of law, or by agreement, express or implied. The term
``beneficial interest'' shall not include any obligation in favor of an
ocean transportation intermediary arising solely by reason of the
advance of out-of-pocket expenses incurred in dispatching a shipment.
    (c) Branch office means any office in the United States established
by or maintained by or under the control of a licensee for the purpose
of rendering intermediary services, which office is located at an
address different from that of the licensee's designated home office.
    (d) Brokerage refers to payment by a common carrier to an ocean
freight broker for the performance of services as specified in paragraph
(n) of this section.
    (e) Commission means the Federal Maritime Commission.
    (f) Common carrier means any person holding itself out to the
general public to provide transportation by water of passengers or cargo
between the United States and a foreign country for compensation that:
    (1) Assumes responsibility for the transportation from the port or
point of receipt to the port or point of destination, and
    (2) Utilizes, for all or part of that transportation, a vessel
operating on the high seas or the Great Lakes between a port in the
United States and a port in a foreign country, except that the term does
not include a common carrier engaged in ocean transportation by ferry
boat, ocean tramp, chemical parcel tanker, or by a vessel when primarily
engaged in the carriage of perishable agricultural commodities.
    (i) if the common carrier and the owner of those commodities are
wholly-owned, directly or indirectly, by a person primarily engaged in
the marketing and distribution of those commodities, and
    (ii) only with respect to those commodities.
    (g) Compensation means payment by a common carrier to a freight
forwarder for the performance of services as specified in Sec.
515.42(c).
    (h) Freight forwarding fee means charges billed by a freight
forwarder to a shipper, consignee, seller, purchaser, or any agent
thereof, for the performance of freight forwarding services.
    (i) Freight forwarding services refers to the dispatching of
shipments on behalf of others, in order to facilitate shipment by a
common carrier, which may include, but are not limited to, the
following:
    (1) Ordering cargo to port;
    (2) Preparing and/or processing export declarations;
    (3) Booking, arranging for or confirming cargo space;
    (4) Preparing or processing delivery orders or dock receipts;
    (5) Preparing and/or processing ocean bills of lading;
    (6) Preparing or processing consular documents or arranging for
their certification;
    (7) Arranging for warehouse storage;
    (8) Arranging for cargo insurance;
    (9) Clearing shipments in accordance with United States Government
export regulations;

[[Page 146]]

    (10) Preparing and/or sending advance notifications of shipments or
other documents to banks, shippers, or consignees, as required;
    (11) Handling freight or other monies advanced by shippers, or
remitting or advancing freight or other monies or credit in connection
with the dispatching of shipments;
    (12) Coordinating the movement of shipments from origin to vessel;
and
    (13) Giving expert advice to exporters concerning letters of credit,
other documents, licenses or inspections, or on problems germane to the
cargoes' dispatch.
    (j) From the United States means oceanborne export commerce from the
United States, its territories, or possessions, to foreign countries.
    (k) Licensee is any person licensed by the Federal Maritime
Commission as an ocean transportation intermediary.
    (l) Non-vessel-operating common carrier services refers to the
provision of transportation by water of cargo between the United States
and a foreign country for compensation without operating the vessels by
which the transportation is provided, and may include, but are not
limited to, the following:
    (1) Purchasing transportation services from a VOCC and offering such
services for resale to other persons;
    (2) Payment of port-to-port or multimodal transportation charges;
    (3) Entering into affreightment agreements with underlying shippers;
    (4) Issuing bills of lading or equivalent documents;
    (5) Arranging for inland transportation and paying for inland
freight charges on through transportation movements;
    (6) Paying lawful compensation to ocean freight forwarders;
    (7) Leasing containers; or
    (8) Entering into arrangements with origin or destination agents.
    (m) Ocean common carrier means a common carrier that operates, for
all or part of its common carrier service, a vessel on the high seas or
the Great Lakes between a port in the United States and a port in a
foreign country, except that the term does not include a common carrier
engaged in ocean transportation by ferry boat, ocean tramp, or chemical
parcel-tanker.
    (n) Ocean freight broker is an entity which is engaged by a carrier
to secure cargo for such carrier and/or to sell or offer for sale ocean
transportation services and which holds itself out to the public as one
who negotiates between shipper or consignee and carrier for the
purchase, sale, conditions and terms of transportation.
    (o) Ocean transportation intermediary means an ocean freight
forwarder or a non-vessel-operating common carrier. For the purposes of
this part, the term
    (1) Ocean freight forwarder means a person that--
    (i) in the United States, dispatches shipments from the United
States via a common carrier and books or otherwise arranges space for
those shipments on behalf of shippers; and
    (ii) processes the documentation or performs related activities
incident to those shipments; and
    (2) Non-vessel-operating common carrier (``NVOCC'') means a common
carrier that does not operate the vessels by which the ocean
transportation is provided, and is a shipper in its relationship with an
ocean common carrier.
    (p) Person includes individuals, corporations, partnerships and
associations existing under or authorized by the laws of the United
States or of a foreign country.
    (q) Principal, except as used in Surety Bond Form FMC-48, and Group
Bond Form FMC-69, refers to the shipper, consignee, seller, or purchaser
of property, and to anyone acting on behalf of such shipper, consignee,
seller, or purchaser of property, who employs the services of a licensed
freight forwarder to facilitate the ocean transportation of such
property.
    (r) Reduced forwarding fees means charges to a principal for
forwarding services that are below the licensed freight forwarder's
usual charges for such services.
    (s) Shipment means all of the cargo carried under the terms of a
single bill of lading.
    (t) Shipper means:
    (1) A cargo owner;
    (2) The person for whose account the ocean transportation is
provided;
    (3) The person to whom delivery is to be made;
    (4) A shippers' association; or

[[Page 147]]

    (5) a non-vessel-operating common carrier that accepts
responsibility for payment of all charges applicable under the tariff or
service contract.
    (u) Small shipment refers to a single shipment sent by one consignor
to one consignee on one bill of lading which does not exceed the
underlying common carrier's minimum charge rule.
    (v) Special contract is a contract for freight forwarding services
which provides for a periodic lump sum fee.
    (w) Transportation-related activities which are covered by the
financial responsibility obtained pursuant to this part include, to the
extent involved in the foreign commerce of the United States, any
activity performed by an ocean transportation intermediary that is
necessary or customary in the provision of transportation services to a
customer, but are not limited to the following:
    (1) For an ocean transportation intermediary operating as a Freight
forwarder, the freight forwarding services enumerated in Sec. 515.2(i),
and
    (2) For an ocean transportation intermediary operating as a non-
vessel-operating common carrier, the non-vessel-operating common
carriers services enumerated in Sec. 515.2(l).
    (x) United States includes the several States, the District of
Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the
Northern Marianas, and all other United States territories and
possessions.

[64 FR 11171, Mar. 8, 1999, as amended at 65 FR 15254, Mar. 22, 2000; 65
FR 26512, May 8, 2000]



Sec. 515.3  License; when required.

    Except as otherwise provided in this part, no person in the United
States may act as an ocean transportation intermediary unless that
person holds a valid license issued by the Commission. A separate
license is required for each branch office that is separately
incorporated. For purposes of this part, a person is considered to be
``in the United States'' if such person is resident in, or incorporated
or established under, the laws of the United States. Only persons
licensed under this part may furnish or contract to furnish ocean
transportation intermediary services in the United States on behalf of
an unlicensed ocean transportation intermediary.



Sec. 515.4  License; when not required.

    A license is not required in the following circumstances:
    (a) Shipper. Any person whose primary business is the sale of
merchandise may, without a license, dispatch and perform freight
forwarding services on behalf of its own shipments, or on behalf of
shipments or consolidated shipments of a parent, subsidiary, affiliate,
or associated company. Such person shall not receive compensation from
the common carrier for any services rendered in connection with such
shipments.
    (b) Employee or branch office of licensed ocean transportation
intermediary. (1) An individual employee or unincorporated branch office
of a licensed ocean transportation intermediary is not required to be
licensed in order to act solely for such licensee, provided that such
branch offices:
    (i) Have been reported to the Commission in writing; and
    (ii) Are covered by increased financial responsibility in accordance
with Sec. 515.21(a)(4).
    (2) Each licensed ocean transportation intermediary will be held
strictly responsible for the acts or omissions of any of its employees
or agents rendered in connection with the conduct of its business.
    (c) Common carrier. A common carrier, or agent thereof, may perform
ocean freight forwarding services without a license only with respect to
cargo carried under such carrier's own bill of lading. Charges for such
forwarding services shall be assessed in conformance with the carrier's
published tariffs.
    (d) Ocean freight brokers. An ocean freight broker is not required
to be licensed to perform those services specified in Sec. 515.2(n).
    (e) Federal military and civilian household goods. Any person which
exclusively transports used household goods and personal effects for the
account of the Department of Defense, or for the

[[Page 148]]

account of the federal civilian executive agencies shipping under the
International Household Goods Program administered by the General
Services Administration, or both, is not subject to the requirements of
subpart B of this part, but may be subject to other requirements, such
as alternative surety bonding, imposed by the Department of Defense, or
the General Services Administration.



Sec. 515.5  Forms and Fees.

    (a) Forms. License form FMC-18 Rev., and financial responsibility
forms FMC-48, FMC-67, FMC-68, FMC-69 may be obtained from the
Commission's Web site at http://www.fmc.gov, the Director, Bureau of
Certification and Licensing, Federal Maritime Commission, Washington, DC
20573, or from any of the Commission's area representatives.
    (b) Fees. All fees shall be payable by money order, certified check,
cashier's check, or personal check to the ``Federal Maritime
Commission.'' Should a personal check not be honored when presented for
payment, the processing of an application under this section shall be
suspended until the processing fee is paid. In any instance where an
application has been processed in whole or in part, the fee will not be
refunded. Such fees are:
    (1) Application for license as required by Sec. 515.12(a): $825;
    (2) Application for status change or license transfer as required by
Sec. Sec. 515.18(a) and 515.18(b): $525; and

[64 FR 11171, Mar. 8, 1999, as amended at 67 FR 39860, June 11, 2002; 70
FR 10330, Mar. 3, 2005; 72 FR 56273, Oct. 3, 2007]



            Subpart B_Eligibility and Procedure for Licensing



Sec. 515.11  Basic requirements for licensing; eligibility.

    (a) Necessary qualifications. To be eligible for an ocean
transportation intermediary license, the applicant must demonstrate to
the Commission that:
    (1) It possesses the necessary experience, that is, its qualifying
individual has a minimum of three (3) years experience in ocean
transportation intermediary activities in the United States, and the
necessary character to render ocean transportation intermediary
services. A foreign NVOCC seeking to be licensed under this part must
demonstrate that its qualifying individual has a minimum 3 years'
experience in ocean transportation intermediary activities, and the
necessary character to render ocean transportation intermediary
services; and
    (2) It has obtained and filed with the Commission a valid bond,
proof of insurance, or other surety in conformance with Sec. 515.21.
    (3) An NVOCC with a tariff and proof of financial responsibility in
effect as of April 30, 1999, may continue to operate as an NVOCC without
the requisite three years' experience and necessary character to render
ocean transportation intermediary services and will be provisionally
licensed while the Commission reviews its application. Such person
designated as the qualifying individual for a provisionally licensed
NVOCC may not act as a qualifying individual for another ocean
transportation intermediary until it has obtained the necessary three
years' experience in ocean transportation intermediary services.
    (b) Qualifying individual. The following individuals must qualify
the applicant for a license:
    (1) Sole proprietorship. The applicant sole proprietor.
    (2) Partnership. At least one of the active managing partners, but
all partners must execute the application.
    (3) Corporation. At least one of the active corporate officers.
    (c) Affiliates of intermediaries. An independently qualified
applicant may be granted a separate license to carry on the business of
providing ocean transportation intermediary services even though it is
associated with, under common control with, or otherwise related to
another ocean transportation intermediary through stock ownership or
common directors or officers, if such applicant submits: a separate
application and fee, and a valid instrument of financial responsibility
in the form and amount prescribed under Sec. 515.21. The qualifying
individual of one active licensee shall not also be designated as the
qualifying individual of an applicant for another ocean transportation

[[Page 149]]

intermediary license, unless both entities are commonly owned or where
one directly controls the other.
    (d) Common carrier. A common carrier or agent thereof which meets
the requirements of this part may be licensed to dispatch shipments
moving on other than such carrier's own bills of lading subject to the
provisions of Sec. 515.42(g).

[64 FR 11171, Mar. 8, 1999; 64 FR 23020, Apr. 29, 1999, as amended at 65
FR 15254, Mar. 22, 2000]



Sec. 515.12  Application for license.

    (a) Application and forms. (1) Any person who wishes to obtain a
license to operate as an ocean transportation intermediary shall submit,
in duplicate, to the Director of the Commission's Bureau of
Certification and Licensing, a completed application Form FMC-18 Rev.
(``Application for a License as an Ocean Transportation Intermediary'')
accompanied by the fee required under Sec. 515.5(b). All applicants
will be assigned an application number, and each applicant will be
notified of the number assigned to its application. Notice of filing of
such application shall be published on the Commission's Web site
www.fmc.gov and shall state the name and address of the applicant and
the name and address of the qualifying individual. If the applicant is a
corporation or partnership, the names of the officers or partners
thereof shall be published.
    (2) An individual who is applying for a license in his or her own
name must complete the following certification:

    I, ------ (Name), ------, certify under penalty of perjury under the
laws of the United States, that I have not been convicted, after
September 1, 1989, of any Federal or state offense involving the
distribution or possession of a controlled substance, or that if I have
been so convicted, I am not ineligible to receive Federal benefits,
either by court order or operation of law, pursuant to 21 U.S.C. 862.

    (b) Rejection. Any application which appears upon its face to be
incomplete or to indicate that the applicant fails to meet the licensing
requirements of the Act, or the Commission's regulations, shall be
returned by certified U.S. mail or other method reasonably calculated to
provide actual notice to the applicant without further processing,
together with an explanation of the reason(s) for rejection, and the
application fee shall be refunded in full. Persons who have had their
applications returned may reapply for a license at any time thereafter
by submitting a new application, together with the full application fee.
    (c) Investigation. Each applicant shall be investigated in
accordance with Sec. 515.13.
    (d) Changes in fact. Each applicant and each licensee shall submit
to the Commission, in duplicate, an amended Form FMC-18 Rev. advising of
any changes in the facts submitted in the original application, within
thirty (30) days after such change(s) occur. In the case of an
application for a license, any unreported change may delay the
processing and investigation of the application and may result in
rejection or denial of the application. No fee is required when
reporting changes to an application for initial license under this
section.
    (e) Optional method of filing Form FMC-18. In lieu of completing and
filing Form FMC-18 in paper format, applications and amendments thereto
may be completed and submitted to the Bureau of Certification and
Licensing by using the automated FMC-18 filing system in accordance with
the instructions found on the Commission's home page, http://
www.fmc.gov. A $250 fee for filing a new application and a $125 fee for
filing an amended application will be assessed for filers using the
automated FMC-18 filing system instead of the fees listed at Sec.
515.5(b)(1), (2).

[64 FR 11171, Mar. 8, 1999, as amended at 65 FR 15254, Mar. 22, 2000; 67
FR 39860, June 11, 2002; 72 FR 44978, Aug. 10, 2007; 79 FR 42987, July
24, 2014]



Sec. 515.13  Investigation of applicants.

    The Commission shall conduct an investigation of the applicant's
qualifications for a license. Such investigations may address:
    (a) The accuracy of the information submitted in the application;
    (b) The integrity and financial responsibility of the applicant;
    (c) The character of the applicant and its qualifying individual;
and
    (d) The length and nature of the qualifying individual's experience
in handling ocean transportation intermediary duties.

[[Page 150]]



Sec. 515.14  Issuance and use of license.

    (a) Qualification necessary for issuance. The Commission will issue
a license if it determines, as a result of its investigation, that the
applicant possesses the necessary experience and character to render
ocean transportation intermediary services and has filed the required
bond, insurance or other surety.
    (b) To whom issued. The Commission will issue a license only in the
name of the applicant, whether the applicant is a sole proprietorship, a
partnership, or a corporation. A license issued to a sole proprietor
doing business under a trade name shall be in the name of the sole
proprietor, indicating the trade name under which the licensee will be
conducting business. Only one license shall be issued to any applicant
regardless of the number of names under which such applicant may be
doing business, and except as otherwise provided in this part, such
license is limited exclusively to use by the named licensee and shall
not be transferred without prior Commission approval to another person.



Sec. 515.15  Denial of license.

    If the Commission determines, as a result of its investigation, that
the applicant:
    (a) Does not possess the necessary experience or character to render
intermediary services;
    (b) Has failed to respond to any lawful inquiry of the Commission;
or
    (c) Has made any materially false or misleading statement to the
Commission in connection with its application; then, a letter of intent
to deny the application shall be sent to the applicant by certified U.S.
mail or other method reasonably calculated to provide actual notice,
stating the reason(s) why the Commission intends to deny the
application. If the applicant submits a written request for hearing on
the proposed denial within twenty (20) days after receipt of
notification, such hearing shall be granted by the Commission pursuant
to its Rules of Practice and Procedure contained in part 502 of this
chapter. Otherwise, denial of the application will become effective and
the applicant shall be so notified by certified U.S. mail or other
method reasonably calculated to provide actual notice.



Sec. 515.16  Revocation or suspension of license.

    (a) Grounds for revocation. Except for the automatic revocation for
termination of proof of financial responsibility under Sec. 515.26, or
as provided in Sec. 515.25(b), a license may be revoked or suspended
after notice and an opportunity for a hearing for any of the following
reasons:
    (1) Violation of any provision of the Act, or any other statute or
Commission order or regulation related to carrying on the business of an
ocean transportation intermediary;
    (2) Failure to respond to any lawful order or inquiry by the
Commission;
    (3) Making a materially false or misleading statement to the
Commission in connection with an application for a license or an
amendment to an existing license;
    (4) Where the Commission determines that the licensee is not
qualified to render intermediary services; or
    (5) Failure to honor the licensee's financial obligations to the
Commission.
    (b) Notice of revocation. The Commission shall publish on the
Commission's Web site www.fmc.gov a notice of each revocation.

[64 FR 11171, Mar. 8, 1999, as amended at 79 FR 42987, July 24, 2014]



Sec. 515.17  Application after revocation or denial.

    Whenever a license has been revoked or an application has been
denied because the Commission has found the licensee or applicant to be
not qualified to render ocean transportation intermediary services, any
further application within 3 years of the Commission's notice of
revocation or denial, made by such former licensee or applicant or by
another applicant employing the same qualifying individual or controlled
by persons on whose conduct the Commission based its determination for
revocation or denial, shall be reviewed directly by the Commission.



Sec. 515.18  Changes in organization.

    (a) The following changes in an existing licensee's organization
require prior approval of the Commission, and application for such
status change or license transfer shall be made on Form

[[Page 151]]

FMC-18 Rev., filed in duplicate with the Commission's Bureau of
Certification and Licensing, and accompanied by the fee required under
Sec. 515.5(b)(2):
    (1) Transfer of a corporate license to another person;
    (2) Change in ownership of a sole proprietorship;
    (3) Addition of one or more partners to a licensed partnership;
    (4) Any change in the business structure of a licensee from or to a
sole proprietorship, partnership, or corporation, whether or not such
change involves a change in ownership;
    (5) Any change in a licensee's name; or
    (6) Change in the identity or status of the designated qualifying
individual, except as described in paragraphs (b) and (c) of this
section.
    (b) Operation after death of sole proprietor. In the event the owner
of a licensed sole proprietorship dies, the licensee's executor,
administrator, heir(s), or assign(s) may continue operation of such
proprietorship solely with respect to shipments for which the deceased
sole proprietor had undertaken to act as an ocean transportation
intermediary pursuant to the existing license, if the death is reported
within 30 days to the Commission and to all principals and shippers for
whom services on such shipments are to be rendered. The acceptance or
solicitation of any other shipments is expressly prohibited until a new
license has been issued. Applications for a new license by the executor,
administrator, heir(s), or assign(s) shall be made on Form FMC-18 Rev.,
and shall be accompanied by the transfer fee required under Sec.
515.5(b)(2).
    (c) Operation after retirement, resignation, or death of qualifying
individual. When a partnership or corporation has been licensed on the
basis of the qualifications of one or more of the partners or officers
thereof, and such qualifying individual(s) no longer serve in a full-
time, active capacity with the firm, the licensee shall report such
change to the Commission within 30 days. Within the same 30-day period,
the licensee shall furnish to the Commission the name(s) and detailed
intermediary experience of any other active managing partner(s) or
officer(s) who may qualify the licensee. Such qualifying individual(s)
must meet the applicable requirements set forth in Sec. 515.11(a). The
licensee may continue to operate as an ocean transportation intermediary
while the Commission investigates the qualifications of the newly
designated partner or officer.
    (d) Incorporation of branch office. In the event a licensee's
validly operating branch office becomes incorporated as a separate
entity, the licensee may continue to operate such office pending receipt
of a separate license, provided that:
    (1) The separately incorporated entity applies to the Commission for
its own license within ten (10) days after incorporation, and
    (2) While the application is pending, the continued operation of the
office is carried on as a bona fide branch office of the licensee, under
its full control and responsibility, and not as an operation of the
separately incorporated entity.
    (e) Acquisition of one or more additional licensees. In the event a
licensee acquires one or more additional licensees, for the purpose of
merger, consolidation, or control, the acquiring licensee shall advise
the Commission of such change within 30 days after such change occurs by
submitting in duplicate, an amended Form FMC-18, Rev. No application fee
is required when reporting this change.
    (f) Optional method of filing Form FMC-18. In lieu of completing and
filing Form FMC-18 in paper format, applications for approval of changes
in organization, transfer of license, or changes in the identity or
status of the designated qualifying individual required under this
section may be completed and submitted to the Bureau of Certification
and Licensing by using the automated FMC-18 filing system in accordance
with the instructions found on the Commission's home page, http://
www.fmc.gov. A $250 fee for filing a new application and a $125 fee for
filing an amended application will be assessed for filers using the
automated FMC-18 filing system instead of the fees listed at Sec.
515.5(b)(1), (2).

[64 FR 11171, Mar. 8, 1999, as amended at 67 FR 39860, June 11, 2002; 72
FR 44978, Aug. 10, 2007]

[[Page 152]]



Sec. 515.19  Registration of foreign-based unlicensed NVOCC.

    (a) Any NVOCC whose primary place of business is located outside the
United States and does not elect to become licensed by the Commission
shall register with the Commission by submitting to the Director of the
Bureau of Certification and Licensing (BCL) a completed registration
form, Form FMC-65 (Foreign-based Unlicensed NVOCC Registration/Renewal).
A notice of each registration shall be published on the Commission's Web
site www.fmc.gov. It is a violation of the Commission's regulations
implementing the Shipping Act for a foreign-based unlicensed non-vessel-
operating common carrier to provide NVOCC services in the U.S. foreign
trade without a valid registration and an effective tariff.
    (b) A registration form which appears, upon submission, to be
substantially incomplete may be rejected. If rejected, a notice,
together with the reasons therefore, shall be sent to the foreign-based
unlicensed NVOCC. Persons who have had a registration rejected may
submit a new registration at any time.
    (c) Registrations are complete upon receipt of a registration form
which meets the requirements of this section and upon evidence of
financial responsibility being furnished pursuant to Sec. 515.21.
    (d) Registrations shall be effective for a period of three (3)
years. Thereafter, registrations will be renewed for sequential three
year periods upon submission of an updated registration form.
    (e) A tariff shall not be published and NVOCC service shall not
commence until the Commission receives valid proof of financial
responsibility from the registrant and a Form FMC-1 has been filed.
    (f) Registered NVOCCs must report in writing to BCL any changes,
within 30 days of such changes, to: legal name(s) or trade name(s);
principal place of business address (including telephone number,
facsimile number); contact person and email address (including physical
address if different from principal place of business); name of resident
agent(s) (including physical address, mailing address, email address,
telephone and facsimile number(s), and contact person) in the United
States for receipt of service of judicial and administrative process
(including subpoenas).
    (g) Termination or suspension of registration.
    (1) Grounds. A registration shall become automatically ineffective
for a failure of a registered NVOCC to maintain proof of financial
responsibility on file with the Commission. The effectiveness of such a
registration may otherwise be terminated or suspended, after notice and
the opportunity for a hearing, for any of the following reasons:
    (i) Violation of any provision of the Act, or any other statute or
Commission order or regulation related to carrying on the business of an
ocean transportation intermediary;
    (ii) Failure to respond to any lawful order or inquiry by the
Commission or an authorized Commission representative;
    (iii) Making a materially false or misleading statement to the
Commission in connection with a registration or renewal thereof;
    (iv) Failure to honor financial obligations to the Commission;
    (v) Failure to timely renew a registration;
    (vi) Failure to maintain a Form FMC-1 or a tariff in compliance with
46 CFR part 520;
    (vii) Knowingly and willfully processing, booking, or accepting
cargo from, or transporting cargo for the account of, an NVOCC that is
not licensed or registered, or has not provided proof of financial
responsibility or published an effective tariff; and
    (viii) Failure to designate and maintain a person in the United
Stated as legal agent for the receipt of judicial and administrative
process, including subpoenas, as required by Sec. 515.24.
    (2) [Reserved]
    (3) Publication of Notice. The Commission shall publish on the
Commission's Web site, www.fmc.gov, a notice of each termination or
suspension.

[78 FR 42887, July 18, 2013]

[[Page 153]]



 Subpart C_Financial Responsibility Requirements; Claims Against Ocean
                      Transportation Intermediaries



Sec. 515.21  Financial responsibility requirements.

    (a) Form and amount. Except as otherwise provided in this part, no
person may operate as an ocean transportation intermediary unless that
person furnishes a bond, proof of insurance, or other surety in a form
and amount determined by the Commission to insure financial
responsibility. The bond, insurance or other surety covers the
transportation-related activities of an ocean transportation
intermediary only when acting as an ocean transportation intermediary.
    (1) Any person operating in the United States as an ocean freight
forwarder as defined by Sec. 515.2(o)(1) shall furnish evidence of
financial responsibility in the amount of $50,000.
    (2) Any person operating in the United States as an NVOCC as defined
by Sec. 515.2(o)(2) shall furnish evidence of financial responsibility
in the amount of $75,000.
    (3) Any unlicensed foreign-based entity, not operating in the United
States as defined in Sec. 515.3, providing ocean transportation
intermediary services for transportation to or from the United States,
shall furnish evidence of financial responsibility in the amount of
$150,000. Such foreign entity will be held strictly responsible
hereunder for the acts or omissions of its agent in the United States.
    (4) The amount of the financial responsibility required to be
furnished by any entity pursuant to paragraphs (a)(1) or (a)(2) of this
section shall be increased by $10,000 for each of the applicant's
unincorporated branch offices.
    (b) Group financial responsibility. Where a group or association of
ocean transportation intermediaries accepts liability for an ocean
transportation intermediary's financial responsibility for such ocean
transportation intermediary's transportation-related activities under
the Act, the group or association of ocean transportation intermediaries
must file either a group supplemental coverage bond form, insurance form
or guaranty form, clearly identifying each ocean transportation
intermediary covered, before a covered ocean transportation intermediary
may provide ocean transportation intermediary services. In such cases a
group or association must establish financial responsibility in an
amount equal to the lesser of the amount required by paragraph (a) of
this section for each member or $3,000,000 in aggregate. A group or
association of ocean transportation intermediaries may also file an
optional bond rider as provided for by Sec. 515.25(c).
    (c) Common trade name. Where more than one person operates under a
common trade name, separate proof of financial responsibility is
required covering each corporation or person separately providing ocean
transportation intermediary services.
    (d) Federal military and civilian household goods. Any person which
exclusively transports used household goods and personal effects for the
account of the Department of Defense, or for the account of the federal
civilian executive agencies shipping under the International Household
Goods Program administered by the General Services Administration, or
both, is not subject to the requirements of subpart C of this part, but
may be subject to other requirements, such as alternative surety
bonding, imposed by the Department of Defense, or the General Services
Administration.

[64 FR 11171, Mar. 8, 1999, as amended at 69 FR 17945, Apr. 6, 2004]



Sec. 515.22  Proof of financial responsibility.

    Prior to the date it commences furnishing ocean transportation
intermediary services, every ocean transportation intermediary shall
establish its financial responsibility for the purpose of this part by
one of the following methods:
    (a) Surety bond, by filing with the Commission a valid bond on Form
FMC-48. Bonds must be issued by a surety company found acceptable by the
Secretary of the Treasury;
    (b) Insurance, by filing with the Commission evidence of insurance
on Form FMC-67. The insurance must provide coverage for damages,
reparations or

[[Page 154]]

penalties arising from any transportation-related activities under the
Act of the insured ocean transportation intermediary. This evidence of
financial responsibility shall be accompanied by: in the case of a
financial rating, the Insurer's financial rating on the rating
organization's letterhead or designated form; in the case of insurance
provided by Underwriters at Lloyd's, documentation verifying membership
in Lloyd's; and in the case of insurance provided by surplus lines
insurers, documentation verifying inclusion on a current ``white list''
issued by the Non-Admitted Insurers' Information Office of the National
Association of Insurance Commissioners. The Insurer must certify that it
has sufficient and acceptable assets located in the United States to
cover all damages arising from the transportation-related activities of
the insured ocean transportation intermediary as specified under the
Act. The insurance must be placed with:
    (1) An Insurer having a financial rating of Class V or higher under
the Financial Size Categories of A.M. Best & Company, or equivalent from
an acceptable international rating organization;
    (2) Underwriters at Lloyd's; or
    (3) Surplus lines insurers named on a current ``white list'' issued
by the Non-Admitted Insurers' Information Office of the National
Association of Insurance Commissioners; or
    (c) Guaranty, by filing with the Commission evidence of guaranty on
Form FMC-68. The guaranty must provide coverage for damages, reparations
or penalties arising from any transportation-related activities under
the Act of the covered ocean transportation intermediary. This evidence
of financial responsibility shall be accompanied by: in the case of a
financial rating, the Guarantor's financial rating on the rating
organization's letterhead or designated form; in the case of a guaranty
provided by Underwriters at Lloyd's, documentation verifying membership
in Lloyd's; and in the case of a guaranty provided by surplus lines
insurers, documentation verifying inclusion on a current ``white list''
issued by the Non-Admitted Insurers' Information Office of the National
Association of Insurance Commissioners. The Guarantor must certify that
it has sufficient and acceptable assets located in the United States to
cover all damages arising from the transportation-related activities of
the covered ocean transportation intermediary as specified under the
Act. The guaranty must be placed with:
    (1) A Guarantor having a financial rating of Class V or higher under
the Financial Size Categories of A.M. Best & Company, or equivalent from
an acceptable international rating organization;
    (2) Underwriters at Lloyd's; or
    (3) Surplus lines insurers named on a current ``white list'' issued
by the Non-Admitted Insurers' Information Office of the National
Association of Insurance Commissioners; or
    (d) Evidence of financial responsibility of the type provided for in
paragraphs (a), (b) and (c) of this section established through and
filed with the Commission by a group or association of ocean
transportation intermediaries on behalf of its members, subject to the
following conditions and procedures:
    (1) Each group or association of ocean transportation intermediaries
shall notify the Commission of its intention to participate in such a
program and furnish documentation as will demonstrate its authenticity
and authority to represent its members, such as articles of
incorporation, bylaws, etc.;
    (2) Each group or association of ocean transportation intermediaries
shall provide the Commission with a list certified by its Chief
Executive Officer containing the names of those ocean transportation
intermediaries to which it will provide coverage; the manner and amount
of existing coverage each covered ocean transportation intermediary has;
an indication that the existing coverage provided each ocean
transportation intermediary is provided by a surety bond issued by a
surety company found acceptable to the Secretary of the Treasury, or by
insurance or guaranty issued by a firm meeting the requirements of
paragraphs (b) or (c) of this section with coverage limits specified
above in Sec. 515.21; and the name, address and facsimile number of
each surety, insurer

[[Page 155]]

or guarantor providing coverage pursuant to this section. Each group or
association of ocean transportation intermediaries or its financial
responsibility provider shall notify the Commission within 30 days of
any changes to its list;
    (3) The group or association shall provide the Commission with a
sample copy of each type of existing financial responsibility coverage
used by member ocean transportation intermediaries;
    (4) Each group or association of ocean transportation intermediaries
shall be responsible for ensuring that each member's financial
responsibility coverage allows for claims to be made in the United
States against the Surety, Insurer or Guarantor for any judgment for
damages against the ocean transportation intermediary arising from its
transportation-related activities under the Act, or order for
reparations issued pursuant to section 11 of the Act (46 U.S.C. 41301-
41302, 41305-41307(a)), or any penalty assessed against the ocean
transportation intermediary pursuant to section 13 of the Act (46 U.S.C.
41107-41109). Each group or association of ocean transportation
intermediaries shall be responsible for requiring each member ocean
transportation intermediary to provide it with valid proof of financial
responsibility annually;
    (5) Where the group or association of ocean transportation
intermediaries determines to secure on behalf of its members other forms
of financial responsibility, as specified by this section, for damages,
reparations or penalties not covered by a member's individual financial
responsibility coverage, such additional coverage must:
    (i) Allow claims to be made in the United States directly against
the group or association's Surety, Insurer or Guarantor for damages
against each covered member ocean transportation intermediary arising
from each covered member ocean transportation intermediary's
transportation-related activities under the Act, or order for
reparations issued pursuant to section 11 of the Act (46 U.S.C. 41301-
41302, 41305-41307(a)), or any penalty assessed against each covered
member ocean transportation intermediary pursuant to section 13 of the
Act (46 U.S.C. 41107-41109); and
    (ii) Be for an amount up to the amount determined in accordance with
Sec. 515.21(b), taking into account a member's individual financial
responsibility coverage already in place. In the event of a claim
against a group bond, the bond must be replenished up to the original
amount of coverage within 30 days of payment of the claim; and
    (iii) be in excess of a member's individual financial responsibility
coverage already in place; and
    (6) The coverage provided by the group or association of ocean
transportation intermediaries on behalf of its members shall be provided
by:
    (i) in the case of a surety bond, a surety company found acceptable
to the Secretary of the Treasury and issued by such a surety company on
Form FMC-69; and
    (ii) in the case of insurance and guaranty, a firm having a
financial rating of Class V or higher under the Financial Size
Categories of A.M. Best & Company or equivalent from an acceptable
international rating organization, Underwriters at Lloyd's, or surplus
line insurers named on a current ``white list'' issued by the Non-
Admitted Insurers' Information Office of the National Association of
Insurance Commissioners and issued by such firms on Form FMC-67 and Form
FMC-68, respectively.
    (e) All forms and documents for establishing financial
responsibility of ocean transportation intermediaries prescribed in this
section shall be submitted to the Director, Bureau of Certification and
Licensing, Federal Maritime Commission, Washington, DC 20573. Such forms
and documents must clearly identify the name; trade name, if any; and
the address of each ocean transportation intermediary.

[64 FR 11171, Mar. 8, 1999, as amended at 67 FR 39860, June 11, 2002; 74
FR 50719, Oct. 1, 2009]



Sec. 515.23  Claims against an ocean transportation intermediary.

    The Commission or another party may seek payment from the bond,
insurance, or other surety that is obtained by an ocean transportation

[[Page 156]]

intermediary pursuant to this section. (See also Sec. 545.3 of this
chapter.)
    (a) Payment pursuant to Commission order. If the Commission issues
an order for reparation pursuant to sections 11 (46 U.S.C. 41301-41302,
41305-41307(a)) or 14 (46 U.S.C. 41304, 41308-41309) of the Act, or
assesses a penalty pursuant to section 13 of the Act (46 U.S.C. 41107-
41109), a bond, insurance, or other surety shall be available to pay
such order or penalty.
    (b) Payment pursuant to a claim. (1) If a party does not file a
complaint with the Commission pursuant to section 11 of the Act (46
U.S.C. 41301-41302, 41305-41307(a)), but otherwise seeks to pursue a
claim against an ocean transportation intermediary bond, insurance or
other surety for damages arising from its transportation-related
activities, it shall attempt to resolve its claim with the financial
responsibility provider prior to seeking payment on any judgment for
damages obtained. When a claimant seeks payment under this section, it
simultaneously shall notify both the financial responsibility provider
and the ocean transportation intermediary of the claim by certified
mail, return receipt requested. The bond, insurance, or other surety may
be available to pay such claim if:
    (i) The ocean transportation intermediary consents to payment,
subject to review by the financial responsibility provider; or
    (ii) The ocean transportation intermediary fails to respond within
forty-five (45) days from the date of the notice of the claim to address
the validity of the claim, and the financial responsibility provider
deems the claim valid.
    (2) If the parties fail to reach an agreement in accordance with
paragraph (b)(1) of this section within ninety (90) days of the date of
the initial notification of the claim, the bond, insurance, or other
surety shall be available to pay any final judgment for damages obtained
from an appropriate court. The financial responsibility provider shall
pay such judgment for damages only to the extent they arise from the
transportation-related activities of the ocean transportation
intermediary ordinarily within 30 days, without requiring further
evidence related to the validity of the claim; it may, however, inquire
into the extent to which the judgment for damages arises from the ocean
transportation intermediary's transportation-related activities.
    (c) The Federal Maritime Commission shall not serve as depository or
distributor to third parties of bond, guaranty, or insurance funds in
the event of any claim, judgment, or order for reparation.
    (d) Optional bond riders. The Federal Maritime Commission shall not
serve as a depository or distributor to third parties of funds payable
pursuant to optional bond riders described in Sec. 515.25(c).

[64 FR 11171, Mar. 8, 1999, as amended at 65 FR 26512, May 8, 2000; 65
FR 33480, May 24, 2000; 69 FR 17945, Apr. 6, 2004; 74 FR 50719, Oct. 1,
2009]



Sec. 515.24  Agent for service of process.

    (a) Every ocean transportation intermediary not located in the
United States and every group or association of ocean transportation
intermediaries not located in the United States which provides financial
coverage for the financial responsibility of a member ocean
transportation intermediary shall designate and maintain a person in the
United States as legal agent for the receipt of judicial and
administrative process, including subpoenas.
    (b) Service of administrative process, other than subpoenas, may be
effected upon the legal agent by dispatching a copy of the document to
be served by mail or courier service. Administrative subpoenas shall be
served in accordance with Sec. 502.134 of this chapter.
    (c) If the designated legal agent cannot be served because of death,
disability, unavailability, termination or expiration of the
designation, or if a legal agent authorized to receive such service is
not designated in compliance with this section, the Secretary of the
Federal Maritime Commission will be deemed to be the legal agent for
service of process. Any person serving the Secretary must also send to
the ocean transportation intermediary, or group or association of ocean
transportation intermediaries which provide financial coverage for the
financial responsibilities of a member ocean transportation

[[Page 157]]

intermediary, by mail or courier service at the ocean transportation
intermediary's, or group's, address published in its tariff, a copy of
each document served upon the Secretary, and shall attest to that
service at the time service is made upon the Secretary. For purposes of
this paragraph, it is sufficient that a person seeking to serve process
on an ocean transportation intermediary, or group of such
intermediaries, affirm to the Commission's Secretary that: they have
contacted, or attempted to contact, the designated agent to confirm
whether it remained authorized to accept service of process; or, if no
legal agent is designated in the tariff, that it has no knowledge of the
identity of the ocean transportation intermediary's legal agent.
Designation of the Commission's Secretary as the legal agent shall
survive any cancellation of the OTI's license or tariff and shall
continue for the entire period during which claims may be made under the
OTI's financial responsibility instrument.
    (d) Designations of legal agent under paragraphs (a) and (b) of this
section and provisions relating to service of process under paragraph
(c) of this section shall be published in the ocean transportation
intermediary's tariff, when required, in accordance with part 520 of
this chapter.
    (e) Every ocean transportation intermediary using a group or
association of ocean transportation intermediaries to cover its
financial responsibility requirement under Sec. 515.21(b) shall publish
the name and address of the group or association's resident agent for
receipt of judicial and administrative process, including subpoenas, in
its tariff, when required, in accordance with part 520 of this chapter.

[64 FR 11171, Mar. 8, 1999, as amended at 78 FR 42888, July 18, 2013]



Sec. 515.25  Filing of proof of financial responsibility.

    (a) Filing of proof of financial responsibility. Upon notification
by the Commission by certified U.S. mail or other method reasonably
calculated to provide actual notice that the applicant has been approved
for licensing, the applicant shall file with the Director of the
Commission's Bureau of Certification and Licensing, proof of financial
responsibility in the form and amount prescribed in Sec. 515.21. No
tariff shall be published until a license is issued, if applicable, and
proof of financial responsibility is provided. No license will be issued
until the Commission is in receipt of valid proof of financial
responsibility from the applicant. Should the applicant not file the
requisite proof of financial responsibility within 120 days of
notification, the Commission will consider the application to be
invalid.
    (b) Branch offices. New proof of financial responsibility, or a
rider to the existing proof of financial responsibility, increasing the
amount of the financial responsibility in accordance with Sec.
515.21(a)(4), shall be filed with the Commission prior to the date the
licensee commences operation of any branch office. Failure to adhere to
this requirement may result in revocation of the license.
    (c) Optional bond rider. Any NVOCC as defined by Sec. 515.2(o)(2),
in addition to a bond meeting the requirements of Sec. 515.21(a)(2),
may obtain and file with the Commission proof of an optional bond rider,
as provided for in appendix E or appendix F of this part.

[64 FR 11171, Mar. 8, 1999, as amended at 67 FR 39860, June 11, 2002; 69
FR 17945, Apr. 6, 2004; 72 FR 56273, Oct. 3, 2007]



Sec. 515.26  Termination of financial responsibility.

    No license shall remain in effect unless valid proof of financial
responsibility is maintained on file with the Commission. Upon receipt
of notice of termination of such financial responsibility, the
Commission shall notify the concerned licensee by certified U.S. mail or
other method reasonably calculated to provide actual notice, at its last
known address, that the Commission shall, without hearing or other
proceeding, revoke the license as of the termination date of the
financial responsibility, unless the licensee shall have submitted valid
replacement proof of financial responsibility before such termination
date. Replacement financial responsibility must bear an effective date
no later than the termination date of the expiring financial
responsibility.

[[Page 158]]



Sec. 515.27  Proof of compliance.

    (a) No common carrier may transport cargo for the account of a
shipper known by the carrier to be an NVOCC unless the carrier has
determined that the NVOCC has a tariff and financial responsibility as
required by sections 8 (46 U.S.C. 40501-40503) and 19 (46 U.S.C. 40901-
40904) of the Act.
    (b) A common carrier can obtain proof of an NVOCC's compliance with
the tariff and financial responsibility requirements by:
    (1) Reviewing a copy of the tariff published by the NVOCC and in
effect under part 520 of this chapter;
    (2) Consulting the Commission to verify that the NVOCC has filed
evidence of its financial responsibility; or
    (3) Any other appropriate procedure, provided that such procedure is
set forth in the carrier's tariff.
    (c) A common carrier that has employed the procedure prescribed in
either paragraphs (b)(1) or (b)(2) of this section shall be deemed to
have met its obligations under section 10(b)(11) of the Act (46 U.S.C.
41104(11)), unless the common carrier knew that such NVOCC was not in
compliance with the tariff and financial responsibility requirements.
    (d) The Commission will publish at its website, www.fmc.gov, a list
of the locations of all carrier and conference tariffs, and a list of
ocean transportation intermediaries who have furnished the Commission
with evidence of financial responsibility, current as of the last date
on which the list is updated. The Commission will update this list on a
periodic basis.

[64 FR 11171, Mar. 8, 1999, as amended at 74 FR 50720, Oct. 1, 2009]



     Sec. Appendix A to Subpart C of Part 515--Ocean Transportation
                 Intermediary (OTI) Bond Form [Form 48]

                               Form FMC-48

                       Federal Maritime Commission

    Ocean Transportation Intermediary (OTI) Bond (Section 19, Shipping
Act of 1984 (46 U.S.C. 40901-40904) and the Coast Guard Authorization
Act of 1998)
--------------------[indicate whether NVOCC or Freight Forwarder], as
Principal (hereinafter ``Principal''), and --------------------, as
Surety (hereinafter ``Surety'') are held and firmly bound unto the
United States of America in the sum of $-------------------- for the
payment of which sum we bind ourselves, our heirs, executors,
administrators, successors and assigns, jointly and severally.
    Whereas, Principal operates as an OTI in the waterborne foreign
commerce of the United States in accordance with the Shipping Act of
1984, as amended by the Ocean Shipping Reform Act of 1998 and the Coast
Guard Authorization Act of 1998 (``1984 Act''), 46 U.S.C. 40102, and, if
necessary, has a valid tariff published pursuant to 46 CFR part 515 and
520, and pursuant to section 19 of the 1984 Act, files this bond with
the Commission;
    Now, Therefore, The condition of this obligation is that the penalty
amount of this bond shall be available to pay any judgment or any
settlement made pursuant to a claim under 46 CFR Sec. 515.23(b) for
damages against the Principal arising from the Principal's
transportation-related activities or order for reparations issued
pursuant to section 11 of the 1984 Act (46 U.S.C. 41301-41302, 41305-
41307(a)), or any penalty assessed against the Principal pursuant to
section 13 of the 1984 Act (46 U.S.C. 41107-41109).
    This bond shall inure to the benefit of any and all persons who have
obtained a judgment or a settlement made pursuant to a claim under 46
CFR Sec. 515.23(b) for damages against the Principal arising from its
transportation-related activities or order of reparation issued pursuant
to section 11 of the 1984 Act, and to the benefit of the Federal
Maritime Commission for any penalty assessed against the Principal
pursuant to section 13 of the 1984 Act. However, the bond shall not
apply to shipments of used household goods and personal effects for the
account of the Department of Defense or the account of federal civilian
executive agencies shipping under the International Household Goods
Program administered by the General Services Administration.
    The liability of the Surety shall not be discharged by any payment
or succession of payments hereunder, unless and until such payment or
payments shall aggregate the penalty of this bond, and in no event shall
the Surety's total obligation hereunder exceed said penalty regardless
of the number of claims or claimants.
    This bond is effective the ------ day of --------------------, ----
------ and shall continue in effect until discharged or terminated as
herein provided. The Principal or the Surety may at any time terminate
this bond by written notice to the Federal Maritime Commission at its
office in Washington, DC. Such termination shall become effective thirty
(30) days after receipt of said notice by the Commission. The Surety
shall not be liable for any transportation-related activities of the
Principal after the expiration of the 30-day period but such termination
shall

[[Page 159]]

not affect the liability of the Principal and Surety for any event
occurring prior to the date when said termination becomes effective.
    The Surety consents to be sued directly in respect of any bona fide
claim owed by Principal for damages, reparations or penalties arising
from the transportation-related activities under the 1984 Act of
Principal in the event that such legal liability has not been discharged
by the Principal or Surety after a claimant has obtained a final
judgment (after appeal, if any) against the Principal from a United
States Federal or State Court of competent jurisdiction and has complied
with the procedures for collecting on such a judgment pursuant to 46 CFR
Sec. 515.23(b), the Federal Maritime Commission, or where all parties
and claimants otherwise mutually consent, from a foreign court, or where
such claimant has become entitled to payment of a specified sum by
virtue of a compromise settlement agreement made with the Principal and/
or Surety pursuant to 46 CFR Sec. 515.23(b), whereby, upon payment of
the agreed sum, the Surety is to be fully, irrevocably and
unconditionally discharged from all further liability to such claimant;
provided, however, that Surety's total obligation hereunder shall not
exceed the amount set forth in 46 CFR Sec. 515.21, as applicable.
    The underwriting Surety will promptly notify the Director, Bureau of
Certification and Licensing, Federal Maritime Commission, Washington, DC
20573, of any claim(s) against this bond.
    Signed and sealed this ------ day of --------------------, --------
--.
(Please type name of signer under each signature.)

________________________________________________________________________
Individual Principal or Partner

________________________________________________________________________
Business Address

________________________________________________________________________
Individual Principal or Partner

________________________________________________________________________
Business Address

________________________________________________________________________
Individual Principal or Partner

________________________________________________________________________
Business Address

    Trade Name, If Any

________________________________________________________________________
Corporate Principal

________________________________________________________________________
State of Incorporation

    Trade Name, If Any

________________________________________________________________________
Business Address

________________________________________________________________________
By

________________________________________________________________________
Title

(Affix Corporate Seal)

________________________________________________________________________
Corporate Surety

________________________________________________________________________
Business Address

________________________________________________________________________
By

________________________________________________________________________
Title

(Affix Corporate Seal)

[64 FR 11171, Mar. 8, 1999, as amended at 67 FR 39860, June 11, 2002; 74
FR 50720, Oct. 1, 2009]



     Sec. Appendix B to Subpart C of Part 515--Ocean Transportation
               Intermediary (OTI) Insurance Form [Form 67]

                               Form FMC-67

                       Federal Maritime Commission

            Ocean Transportation Intermediary (OTI) Insurance

         Form Furnished as Evidence of Financial Responsibility

                       Under 46 U.S.C. 40901-40904

    This is to certify, that the (Name of Insurance Company),
(hereinafter ``Insurer'') of (Home Office Address of Company) has issued
to (OTI or Group or Association of OTIs [indicate whether NVOCC(s) or
Freight Forwarder(s)]) (hereinafter ``Insured'') of (Address of OTI or
Group or Association of OTIs) a policy or policies of insurance for
purposes of complying with the provisions of 46 U.S.C. 40901-40904 and
the rules and regulations, as amended, of the Federal Maritime
Commission, which provide compensation for damages, reparations or
penalties arising from the transportation-related activities of Insured,
and made pursuant to the Shipping Act of 1984, as amended by the Ocean
Shipping Reform Act of 1998 and the Coast Guard Authorization Act of
1998 (``1984 Act'').
    Whereas, the Insured is or may become an OTI subject to the 1984 Act
(46 U.S.C. 40101-41309) and the rules and regulations of the Federal
Maritime Commission, or is or may become a group or association of OTIs,
and desires to establish financial responsibility in accordance with
section 19 of the 1984 Act, files with the Commission this Insurance
Form as evidence of its financial responsibility and evidence of a
financial rating for the Insurer of Class V or higher under the
Financial Size Categories of A.M. Best & Company or equivalent from an
acceptable international rating organization on such organization's
letterhead or designated form, or, in the case of insurance provided by
Underwriters at Lloyd's, documentation verifying

[[Page 160]]

membership in Lloyd's, or, in the case of surplus lines insurers,
documentation verifying inclusion on a current ``white list'' issued by
the Non-Admitted Insurers' Information Office of the National
Association of Insurance Commissioners.
    Whereas, the Insurance is written to assure compliance by the
Insured with section 19 of the 1984 Act (46 U.S.C. 40901-40904), and the
rules and regulations of the Federal Maritime Commission relating to
evidence of financial responsibility for OTIs, this Insurance shall be
available to pay any judgment obtained or any settlement made pursuant
to a claim under 46 CFR Sec. 515.23(b) for damages against the Insured
arising from the Insured's transportation-related activities under the
1984 Act, or order for reparations issued pursuant to section 11 of the
1984 Act (46 U.S.C. 41301-41302, 41305-41307(a)), or any penalty
assessed against the Insured pursuant to section 13 of the 1984 Act (46
U.S.C. 41107-41109); provided, however, that Insurer's obligation for a
group or association of OTIs shall extend only to such damages,
reparations or penalties described herein as are not covered by another
insurance policy, guaranty or surety bond held by the OTI(s) against
which a claim or final judgment has been brought and that Insurer's
total obligation hereunder shall not exceed the amount per OTI set forth
in 46 CFR Sec. 515.21 or the amount per group or association of OTIs
set forth in 46 CFR Sec. 515.21 in aggregate.
    Whereas, the Insurer certifies that it has sufficient and acceptable
assets located in the United States to cover all liabilities of Insured
herein described, this Insurance shall inure to the benefit of any and
all persons who have a bona fide claim against the Insured pursuant to
46 CFR Sec. 515.23(b) arising from its transportation-related
activities under the 1984 Act, or order of reparation issued pursuant to
section 11 of the 1984 Act, and to the benefit of the Federal Maritime
Commission for any penalty assessed against the Insured pursuant to
section 13 of the 1984 Act.
    The Insurer consents to be sued directly in respect of any bona fide
claim owed by Insured for damages, reparations or penalties arising from
the transportation-related activities under the 1984 Act, of Insured in
the event that such legal liability has not been discharged by the
Insured or Insurer after a claimant has obtained a final judgment (after
appeal, if any) against the Insured from a United States Federal or
State Court of competent jurisdiction and has complied with the
procedures for collecting on such a judgment pursuant to 46 CFR Sec.
515.23(b), the Federal Maritime Commission, or where all parties and
claimants otherwise mutually consent, from a foreign court, or where
such claimant has become entitled to payment of a specified sum by
virtue of a compromise settlement agreement made with the Insured and/or
Insurer pursuant to 46 CFR Sec. 515.23(b), whereby, upon payment of the
agreed sum, the Insurer is to be fully, irrevocably and unconditionally
discharged from all further liability to such claimant; provided,
however, that Insurer's total obligation hereunder shall not exceed the
amount per OTI set forth in 46 CFR Sec. 515.21 or the amount per group
or association of OTIs set forth in 46 CFR Sec. 515.21.
    The liability of the Insurer shall not be discharged by any payment
or succession of payments hereunder, unless and until such payment or
payments shall aggregate the penalty of the Insurance in the amount per
member OTI set forth in 46 CFR Sec. 515.21 or the amount per group or
association of OTIs set forth in 46 CFR Sec. 515.21, regardless of the
financial responsibility or lack thereof, or the solvency or bankruptcy,
of Insured.
    The insurance evidenced by this undertaking shall be applicable only
in relation to incidents occurring on or after the effective date and
before the date termination of this undertaking becomes effective. The
effective date of this undertaking shall be ------ day of --------------
------, ----------, and shall continue in effect until discharged or
terminated as herein provided. The Insured or the Insurer may at any
time terminate the Insurance by filing a notice in writing with the
Federal Maritime Commission at its office in Washington, D.C. Such
termination shall become effective thirty (30) days after receipt of
said notice by the Commission. The Insurer shall not be liable for any
transportation-related activities under the 1984 Act of the Insured
after the expiration of the 30-day period but such termination shall not
affect the liability of the Insured and Insurer for such activities
occurring prior to the date when said termination becomes effective.
    Insurer or Insured shall immediately give notice to the Federal
Maritime Commission of all lawsuits filed, judgments rendered, and
payments made under the insurance policy.
    (Name of Agent) -------------------- domiciled in the United States,
with offices located in the United States, at -------------------- is
hereby designated as the Insurer's agent for service of process for the
purposes of enforcing the Insurance certified to herein.
    If more than one insurer joins in executing this document, that
action constitutes joint and several liability on the part of the
insurers.
    The Insurer will promptly notify the Director, Bureau of
Certification and Licensing, Federal Maritime Commission, Washington,
D.C. 20573, of any claim(s) against the Insurance.
    Signed and sealed this ---------- day of --------------------, ----
------.
________________________________________________________________________

[[Page 161]]

Signature of Official signing on behalf of Insurer
________________________________________________________________________
Type Name and Title of signer
    This Insurance Form has been filed with the Federal Maritime
Commission.

[64 FR 11171, Mar. 8, 1999, as amended at 67 FR 39860, June 11, 2002; 74
FR 50720, Oct. 1, 2009]



     Sec. Appendix C to Subpart C of Part 515--Ocean Transportation
               Intermediary (OTI) Guaranty Form [Form 68]

                               Form FMC-68

                       Federal Maritime Commission

    Guaranty in Respect of Ocean Transportation Intermediary (OTI)
Liability for Damages, Reparations or Penalties Arising from
Transportation-Related Activities Under the Shipping Act of 1984, as
amended by the Ocean Shipping Reform Act of 1998 and the Coast Guard
Authorization Act of 1998
    1. Whereas -------------------------------------- (Name of Applicant
[indicate whether NVOCC or Freight Forwarder]) (hereinafter
``Applicant'') is or may become an Ocean Transportation Intermediary
(``OTI'') subject to the Shipping Act of 1984, as amended by the Ocean
Shipping Reform Act of 1998 and the Coast Guard Authorization Act of
1998 (``1984 Act'') (46 U.S.C. 40101-41309) and the rules and
regulations of the Federal Maritime Commission (``FMC''), or is or may
become a group or association of OTIs, and desires to establish its
financial responsibility in accordance with section 19 of the 1984 Act,
then, provided that the FMC shall have accepted, as sufficient for that
purpose, the Applicant's application, supported by evidence of a
financial rating for the Guarantor of Class V or higher under the
Financial Size Categories of A.M. Best & Company or equivalent from an
acceptable international rating organization on such rating
organization's letterhead or designated form, or, in the case of
Guaranty provided by Underwriters at Lloyd's, documentation verifying
membership in Lloyd's, or, in the case of surplus lines insurers,
documentation verifying inclusion on a current ``white list'' issued by
the Non-Admitted Insurers' Information Office of the National
Association of Insurance Commissioners, the undersigned Guarantor
certifies that it has sufficient and acceptable assets located in the
United States to cover all damages arising from the transportation-
related activities of the covered OTI as specified under the 1984 Act.
    2. Now, Therefore, The condition of this obligation is that the
penalty amount of this Guaranty shall be available to pay any judgment
obtained or any settlement made pursuant to a claim under 46 CFR Sec.
515.23(b) for damages against the Applicant arising from the Applicant's
transportation-related activities or order for reparations issued
pursuant to section 11 of the 1984 Act (46 U.S.C. 41301-41302, 41305-
41307(a)), or any penalty assessed against the Principal pursuant to
section 13 of the 1984 Act (46 U.S.C. 41107-41109).
    3. The undersigned Guarantor hereby consents to be sued directly in
respect of any bona fide claim owed by Applicant for damages,
reparations or penalties arising from Applicant's transportation-related
activities under the 1984 Act, in the event that such legal liability
has not been discharged by the Applicant after any such claimant has
obtained a final judgment (after appeal, if any) against the Applicant
from a United States Federal or State Court of competent jurisdiction
and has complied with the procedures for collecting on such a judgment
pursuant to 46 CFR Sec. 515.23(b), the FMC, or where all parties and
claimants otherwise mutually consent, from a foreign court, or where
such claimant has become entitled to payment of a specified sum by
virtue of a compromise settlement agreement made with the Applicant and/
or Guarantor pursuant to 46 CFR Sec. 515.23(b), whereby, upon payment
of the agreed sum, the Guarantor is to be fully, irrevocably and
unconditionally discharged from all further liability to such claimant.
In the case of a guaranty covering the liability of a group or
association of OTIs, Guarantor's obligation extends only to such
damages, reparations or penalties described herein as are not covered by
another insurance policy, guaranty or surety bond held by the OTI(s)
against which a claim or final judgment has been brought.
    4. The Guarantor's liability under this Guaranty in respect to any
claimant shall not exceed the amount of the guaranty; and the aggregate
amount of the Guarantor's liability under this Guaranty shall not exceed
the amount per OTI set forth in 46 CFR Sec. 515.21 or the amount per
group or association of OTIs set forth in 46 CFR Sec. 515.21 in
aggregate.
    5. The Guarantor's liability under this Guaranty shall attach only
in respect of such activities giving rise to a cause of action against
the Applicant, in respect of any of its transportation-related
activities under the 1984 Act, occurring after the Guaranty has become
effective, and before the expiration date of this Guaranty, which shall
be the date thirty (30) days after the date of receipt by FMC of notice
in writing that either Applicant or the Guarantor has elected to
terminate this Guaranty. The Guarantor and/or Applicant specifically
agree to file such written notice of cancellation.
    6. Guarantor shall not be liable for payments of any of the damages,
reparations or penalties hereinbefore described which arise as the
result of any transportation-related

[[Page 162]]

activities of Applicant after the cancellation of the Guaranty, as
herein provided, but such cancellation shall not affect the liability of
the Guarantor for the payment of any such damages, reparations or
penalties prior to the date such cancellation becomes effective.
    7. Guarantor shall pay, subject to the limit of the amount per OTI
set forth in 46 CFR Sec. 515.21, directly to a claimant any sum or sums
which Guarantor, in good faith, determines that the Applicant has failed
to pay and would be held legally liable by reason of Applicant's
transportation-related activities, or its legal responsibilities under
the 1984 Act and the rules and regulations of the FMC, made by Applicant
while this agreement is in effect, regardless of the financial
responsibility or lack thereof, or the solvency or bankruptcy, of
Applicant.
    8. Applicant or Guarantor shall immediately give written notice to
the FMC of all lawsuits filed, judgments rendered, and payments made
under the Guaranty.
    9. Applicant and Guarantor agree to handle the processing and
adjudication of claims by claimants under the Guaranty established
herein in the United States, unless by mutual consent of all parties and
claimants another country is agreed upon. Guarantor agrees to appoint an
agent for service of process in the United States.
    10. This Guaranty shall be governed by the laws in the State of --
to the extent not inconsistent with the rules and regulations of the
FMC.
    11. This Guaranty is effective the day of ------ ,------------------
-- ,---------- 12:01 a.m., standard time at the address of the Guarantor
as stated herein and shall continue in force until terminated as herein
provided.
    12. The Guarantor hereby designates as the Guarantor's legal agent
for service of process domiciled in the United States ------------------
--, with offices located in the United States at -------------------- ,
for the purposes of enforcing the Guaranty described herein.

________________________________________________________________________
(Place and Date of Execution)

________________________________________________________________________
(Type Name of Guarantor)

________________________________________________________________________
(Type Address of Guarantor)

By
________________________________________________________________________
 (Signature and Title)


[64 FR 11171, Mar. 8, 1999, as amended at 74 FR 50720, Oct. 1, 2009]



     Sec. Appendix D to Subpart C of Part 515--Ocean Transportation
               Intermediary (OTI) Group Bond Form [FMC-69]

                               Form FMC-69

                       Federal Maritime Commission

    Ocean Transportation Intermediary (OTI) Group Supplemental Coverage
Bond Form (Section 19, Shipping Act of 1984 (46 U.S.C. 40901-40904) and
the Coast Guard Authorization Act of 1998)
    --------------------[indicate whether NVOCC or Freight Forwarder],
as Principal (hereinafter ``Principal''), and --------------------------
-------------- as Surety (hereinafter ``Surety'') are held and firmly
bound unto the United States of America in the sum of $----------------
-- for the payment of which sum we bind ourselves, our heirs, executors,
administrators, successors and assigns, jointly and severally.
    Whereas, (Principal) -------------------- operates as a group or
association of OTIs in the waterborne foreign commerce of the United
States and pursuant to section 19 of the Shipping Act of 1984, as
amended by the Ocean Shipping Reform Act of 1998 and the Coast Guard
Authorization Act of 1998 (``1984 Act''), files this bond with the
Federal Maritime Commission;
    Now, therefore, the conditions of this obligation are that the
penalty amount of this bond shall be available to pay any judgment
obtained or any settlement made pursuant to a claim under 46 CFR Sec.
515.23(b) against the OTIs enumerated in Appendix A of this bond for
damages arising from any or all of the identified OTIs' transportation-
related activities under the 1984 Act (46 U.S.C. 40101-41309), or order
for reparations issued pursuant to section 11 of the 1984 Act (46 U.S.C.
41301-41302, 41305-41307(a)), or any penalty assessed pursuant to
section 13 of the 1984 Act (46 U.S.C. 41107-41109), that are not covered
by the identified OTIs' individual insurance policy(ies), guaranty(ies)
or surety bond(s).
    This bond shall inure to the benefit of any and all persons who have
obtained a judgment or made a settlement pursuant to a claim under 46
CFR Sec. 515.23(b) for damages against any or all of the OTIs
identified in Appendix A not covered by said OTIs' insurance
policy(ies), guaranty(ies) or surety bond(s) arising from said OTIs'
transportation-related activities under the 1984 Act, or order for
reparation issued pursuant to section 11 of the 1984 Act, and to the
benefit of the Federal Maritime Commission for any penalty assessed
against said OTIs pursuant to section 13 of the 1984 Act. However, the
bond shall not apply to shipments of used household goods and personal
effects for the account of the Department of Defense or the

[[Page 163]]

account of federal civilian executive agencies shipping under the
International Household Goods Program administered by the General
Services Administration.
    The Surety consents to be sued directly in respect of any bona fide
claim owed by any or all of the OTIs identified in Appendix A for
damages, reparations or penalties arising from the transportation-
related activities under the 1984 Act of the OTIs in the event that such
legal liability has not been discharged by the OTIs or Surety after a
claimant has obtained a final judgment (after appeal, if any) against
the OTIs from a United States Federal or State Court of competent
jurisdiction and has complied with the procedures for collecting on such
a judgment pursuant to 46 CFR Sec. 515.23(b), the Federal Maritime
Commission, or where all parties and claimants otherwise mutually
consent, from a foreign court, or where such claimant has become
entitled to payment of a specified sum by virtue of a compromise
settlement agreement made with the OTIs and/or Surety pursuant to 46 CFR
Sec. 515.23(b), whereby, upon payment of the agreed sum, the Surety is
to be fully, irrevocably and unconditionally discharged from all further
liability to such claimant.
    The liability of the Surety shall not be discharged by any payment
or succession of payments hereunder, unless and until such payment or
payments shall aggregate the penalty of this bond, and in no event shall
the Surety's total obligation hereunder exceed the amount per member OTI
set forth in 46 CFR Sec. 515.21 identified in Appendix A, or the amount
per group or association of OTIs set forth in 46 CFR Sec. 515.21,
regardless of the number of OTIs, claims or claimants.
    This bond is effective the ------ day of --------------------, ----
------, and shall continue in effect until discharged or terminated as
herein provided. The Principal or the Surety may at any time terminate
this bond by written notice to the Federal Maritime Commission at its
office in Washington, DC. Such termination shall become effective thirty
(30) days after receipt of said notice by the Commission. The Surety
shall not be liable for any transportation-related activities of the
OTIs identified in Appendix A as covered by the Principal after the
expiration of the 30-day period, but such termination shall not affect
the liability of the Principal and Surety for any transportation-related
activities occurring prior to the date when said termination becomes
effective.
    The Principal or financial responsibility provider will promptly
notify the underwriting Surety and the Director, Bureau of Certification
and Licensing, Federal Maritime Commission, Washington, DC 20573, of any
additions, deletions or changes to the OTIs enumerated in Appendix A. In
the event of additions to Appendix A, coverage will be effective upon
receipt of such notice, in writing, by the Commission at its office in
Washington, DC. In the event of deletions to Appendix A, termination of
coverage for such OTI(s) shall become effective 30 days after receipt of
written notice by the Commission. Neither the Principal nor the Surety
shall be liable for any transportation-related activities of the OTI(s)
deleted from Appendix A after the expiration of the 30-day period, but
such termination shall not affect the liability of the Principal and
Surety for any transportation-related activities of said OTI(s)
occurring prior to the date when said termination becomes effective.
    The underwriting Surety will promptly notify the Director, Bureau of
Certification and Licensing, Federal Maritime Commission, Washington, DC
20573, of any claim(s) against this bond.
    Signed and sealed this ------------ day of --------------------, --
--------,
(Please type name of signer under each signature).

________________________________________________________________________
Individual Principal or Partner

________________________________________________________________________
Business Address

________________________________________________________________________
Individual Principal or Partner

________________________________________________________________________
Business Address

________________________________________________________________________
Individual Principal or Partner

________________________________________________________________________
Business Address

    Trade Name, if Any

________________________________________________________________________
Corporate Principal

________________________________________________________________________
Place of Incorporation

    Trade Name, if Any

________________________________________________________________________
Business Address (Affix Corporate Seal)

________________________________________________________________________
By

________________________________________________________________________
Title

________________________________________________________________________
Principal's Agent for Service of Process (Required if Principal is not a
U.S. Corporation)

________________________________________________________________________
Agent's Address

________________________________________________________________________
Corporate Surety

________________________________________________________________________
Business Address (Affix Corporate Seal)

________________________________________________________________________
By

________________________________________________________________________

[[Page 164]]

Title

[64 FR 11171, Mar. 8, 1999, as amended at 67 FR 39860, June 11, 2002; 74
FR 50721, Oct. 1, 2009]



Sec. Appendix E to Subpart C of Part 515--Optional Rider for Additional
  NVOCC Financial Responsibility (Optional Rider to Form FMC-48) [FORM
                                  48A]

                FMC-48A, OMB No. [3072-0018, (04/06/04)]

 Optional Rider for Additional NVOCC Financial Responsibility [Optional
                          Rider to Form FMC-48]

                                  RIDER

    The undersigned [--------------------------------], as Principal and
[--------------------------------], as Surety do hereby agree that the
existing Bond No. [--------] to the United States of America and filed
with the Federal Maritime Commission pursuant to section 19 of the
Shipping Act of 1984 is modified as follows:
    1. The following condition is added to this Bond:
    a. An additional condition of this Bond is that $---------- (payable
in U.S. Dollars or Renminbi Yuan at the option of the Surety) shall be
available to pay any fines and penalties for activities in the U.S.-
China trades imposed by the Ministry of Communications of the People's
Republic of China (``MOC'') or its authorized competent communications
department of the people's government of the province, autonomous region
or municipality directly under the Central Government or the State
Administration of Industry and Commerce pursuant to the Regulations of
the People's Republic of China on International Maritime Transportation
and the Implementing Rules of the Regulations of the PRC on
International Maritime Transportation promulgated by MOC Decree No. 1,
January 20, 2003.
    b. The liability of the Surety shall not be discharged by any
payment or succession of payments pursuant to section 1 of this Rider,
unless and until the payment or payments shall aggregate the amount set
forth in section 1a of this Rider. In no event shall the Surety's
obligation under this Rider exceed the amount set forth in section 1a
regardless of the number of claims.
    c. The total amount of coverage available under this Bond and all of
its riders, available pursuant to the terms of section 1(a.) of this
rider, equals $--------. The total amount of aggregate coverage equals
or exceeds $125,000.
    d. This Rider is effective the [--------] day of [------------], 20
[------------], and shall continue in effect until discharged,
terminated as herein provided, or upon termination of the Bond in
accordance with the sixth paragraph of the Bond. The Principal or the
Surety may at any time terminate this Rider by written notice to the
Federal Maritime Commission at its offices in Washington, DC,
accompanied by proof of transmission of notice to MOC. Such termination
shall become effective thirty (30) days after receipt of said notice and
proof of transmission by the Federal Maritime Commission. The Surety
shall not be liable for fines or penalties imposed on the Principal
after the expiration of the 30-day period but such termination shall not
affect the liability of the Principal and Surety for any fine or penalty
imposed prior to the date when said termination becomes effective.
    2. This Bond remains in full force and effect according to its terms
except as modified above.
    In witness whereof we have hereunto set our hands and seals on this
[--------] day of [------------], 20 [--------],

[Principal], By:

[Surety], By:

[77 FR 51938, Aug. 28, 2012]



Sec. Appendix F to Subpart C of Part 515--Optional Rider for Additional
 NVOCC Financial Responsibility for Group Bonds [Optional Rider to Form
                                 FMC-69]

                  FMC-69A, OMB No. 3072-0018 (04/06/04)

 Optional Rider for Additional NVOCC Financial Responsibility for Group
                  Bonds [Optional Rider to Form FMC-69]

                                  RIDER

    The undersigned [--------------------------], as Principal and [----
------------------------], as Surety do hereby agree that the existing
Bond No. [------------] to the United States of America and filed with
the Federal Maritime Commission pursuant to section 19 of the Shipping
Act of 1984 is modified as follows:
    1. The following condition is added to this Bond:
    a. An additional condition of this Bond is that $ [--------](payable
in U.S. Dollars or Renminbi Yuan at the option of the Surety) shall be
available to any NVOCC enumerated in an Appendix to this Rider to pay
any fines and penalties for activities in the U.S.-China trades imposed
by the Ministry of Communications of the People's Republic of China
(``MOC'') or its authorized competent communications department of the
people's government of the province, autonomous region or municipality
directly under the Central Government or the State Administration of
Industry and Commerce pursuant to the Regulations of the People's
Republic of China on International Maritime Transportation and

[[Page 165]]

the Implementing Rules of the Regulations of the PRC on International
Maritime Transportation promulgated by MOC Decree No. 1, January 20,
2003. Such amount is separate and distinct from the bond amount set
forth in the first paragraph of this Bond. Payment under this Rider
shall not reduce the bond amount in the first paragraph of this Bond or
affect its availability. The Surety shall indicate that $50,000 is
available to pay such fines and penalties for each NVOCC listed on
appendix A to this Rider wishing to exercise this option.
    b. The liability of the Surety shall not be discharged by any
payment or succession of payments pursuant to section 1 of this Rider,
unless and until the payment or payments shall aggregate the amount set
forth in section 1a of this Rider. In no event shall the Surety's
obligation under this Rider exceed the amount set forth in section 1a
regardless of the number of claims.
    c. This Rider is effective the [------------] day of [------------],
200[------------], and shall continue in effect until discharged,
terminated as herein provided, or upon termination of the Bond in
accordance with the sixth paragraph of the Bond. The Principal or the
Surety may at any time terminate this Rider by written notice to the
Federal Maritime Commission at its offices in Washington, DC.,
accompanied by proof of transmission of notice to MOC. Such termination
shall become effective thirty (30) days after receipt of said notice and
proof of transmission by the Federal Maritime Commission. The Surety
shall not be liable for fines or penalties imposed on the Principal
after the expiration of the 30-day period but such termination shall not
affect the liability of the Principal and Surety for any fine or penalty
imposed prior to the date when said termination becomes effective.
    2. This Bond remains in full force and effect according to its terms
except as modified above.
    In witness whereof we have hereunto set our hands and seals on this
[------------] day of [------------], 200 [------------],
[Principal], :By
[Surety], By:

             Privacy Act and Paperwork Reduction Act Notice

    The collection of this information is authorized generally by
Section 19 of the Shipping Act of 1984 (46 U.S.C. 40901-40904).
    This is an optional form. Submission is completely voluntary.
Failure to submit this form will in no way impact the Federal Maritime
Commission's assessment of your firm's financial responsibility.
    You are not required to provide the information requested on a form
that is subject to the Paperwork Reduction Act unless the form displays
a valid OMB control number. Copies of this form will be maintained until
the corresponding license has been revoked.
    The time needed to complete and file this form will vary depending
on individual circumstances. The estimated average time is:
Recordkeeping, 20 minutes; Learning about the form, 20 minutes;
Preparing and sending the form to the FMC, 20 minutes.
    If you have comments concerning the accuracy of these time estimates
or suggestions for making this form simpler, we would be happy to hear
from you. You can write to the Secretary, Federal Maritime Commission,
800 North Capitol Street, NW., Washington, DC 20573-0001 or e-mail:
[email protected].

[69 FR 17946, Apr. 6, 2004, as amended at 74 FR 50721, Oct. 1, 2009; 77
FR 51939, Aug. 28, 2012]



     Subpart D_Duties and Responsibilities of Ocean Transportation
                  Intermediaries; Reports to Commission



Sec. 515.31  General duties.

    (a) License; name and number. Each licensee shall carry on its
business only under the name in which its license is issued and only
under its license number as assigned by the Commission. When the
licensee's name appears on shipping documents, its Commission license
number shall also be included.
    (b) Stationery and billing forms. The name and license number of
each licensee shall be permanently imprinted on the licensee's office
stationery and billing forms. The Commission may temporarily waive this
requirement for good cause shown if the licensee rubber stamps or types
its name and Commission license number on all papers and invoices
concerned with any ocean transportation intermediary transaction.
    (c) Use of license by others; prohibition. No licensee shall permit
its license or name to be used by any person who is not a bona fide
individual employee of the licensee. Unincorporated branch offices of
the licensee may use the license number and name of the licensee if such
branch offices:
    (1) have been reported to the Commission in writing; and
    (2) are covered by increased financial responsibility in accordance
with Sec. 515.21(a)(4).
    (d) Arrangements with ocean transportation intermediaries whose
licenses have

[[Page 166]]

been revoked. Unless prior written approval from the Commission has been
obtained, no licensee shall, directly or indirectly:
    (1) Agree to perform ocean transportation intermediary services on
shipments as an associate, correspondent, officer, employee, agent, or
sub-agent of any person whose license has been revoked or suspended
pursuant to Sec. 515.16;
    (2) Assist in the furtherance of any ocean transportation
intermediary business of such person;
    (3) Share forwarding fees or freight compensation with any such
person; or
    (4) Permit any such person, directly or indirectly, to participate,
through ownership or otherwise, in the control or direction of the ocean
transportation intermediary business of the licensee.
    (e) False or fraudulent claims, false information. No licensee shall
prepare or file or assist in the preparation or filing of any claim,
affidavit, letter of indemnity, or other paper or document concerning an
ocean transportation intermediary transaction which it has reason to
believe is false or fraudulent, nor shall any such licensee knowingly
impart to a principal, shipper, common carrier or other person, false
information relative to any ocean transportation intermediary
transaction.
    (f) Errors and omissions of the principal or shipper. A licensee who
has reason to believe that its principal or shipper has not, with
respect to a shipment to be handled by such licensee, complied with the
laws of the United States, or has made any error or misrepresentation
in, or omission from, any export declaration, bill of lading, affidavit,
or other document which the principal or shipper executes in connection
with such shipment, shall advise its principal or shipper promptly of
the suspected noncompliance, error, misrepresentation or omission, and
shall decline to participate in any transaction involving such document
until the matter is properly and lawfully resolved.
    (g) Response to requests of Commission. Upon the request of any
authorized representative of the Commission, a licensee shall make
available promptly for inspection or reproduction all records and books
of account in connection with its ocean transportation intermediary
business, and shall respond promptly to any lawful inquiries by such
representative.
    (h) Express written authority. No licensee shall endorse or
negotiate any draft, check, or warrant drawn to the order of its
principal or shipper without the express written authority of such
principal or shipper.
    (i) Accounting to principal or shipper. Each licensee shall account
to its principal(s) or shipper(s) for overpayments, adjustments of
charges, reductions in rates, insurance refunds, insurance monies
received for claims, proceeds of C.O.D. shipments, drafts, letters of
credit, and any other sums due such principal(s) or shipper(s).



Sec. 515.32  Freight forwarder duties.

    (a) Notice of shipper affiliation. When a licensed freight forwarder
is a shipper or seller of goods in international commerce or affiliated
with such an entity, the licensed freight forwarder shall have the
option of:
    (1) Identifying itself as such and/or, where applicable, listing its
affiliates on its office stationery and billing forms, or
    (2) Including the following notice on such items:

    This company is a shipper or seller of goods in international
commerce or is affiliated with such an entity. Upon request, a general
statement of its business activities and those of its affiliates, along
with a written list of the names of such affiliates, will be provided.

    (b) Arrangements with unauthorized persons. No licensed freight
forwarder shall enter into an agreement or other arrangement (excluding
sales agency arrangements not prohibited by law or this part) with an
unlicensed person that bestows any fee, compensation, or other benefit
upon the unlicensed person. When a licensed freight forwarder is
employed to perform forwarding services by the agent of the person
responsible for paying for such services, the licensed freight forwarder
shall also transmit a copy of its invoice for services rendered to the
person paying those charges.
    (c) Information provided to the principal. No licensed freight
forwarder

[[Page 167]]

shall withhold any information concerning a forwarding transaction from
its principal, and each licensed freight forwarder shall comply with the
laws of the United States and shall exercise due diligence to assure
that all information provided to its principal or provided in any export
declaration, bill of lading, affidavit, or other document which the
licensed freight forwarder executes in connection with a shipment is
accurate.
    (d) Invoices; documents available upon request. Upon the request of
its principal(s), each licensed freight forwarder shall provide a
complete breakout of its charges and a true copy of any underlying
document or bill of charges pertaining to the licensed freight
forwarder's invoice. The following notice shall appear on each invoice
to a principal:

    Upon request, we shall provide a detailed breakout of the components
of all charges assessed and a true copy of each pertinent document
relating to these charges.



Sec. 515.33  Records required to be kept.

    Each licensed freight forwarder shall maintain in an orderly and
systematic manner, and keep current and correct, all records and books
of account in connection with its forwarding business. These records
must be kept in the United States in such manner as to enable authorized
Commission personnel to readily determine the licensed freight
forwarder's cash position, accounts receivable and accounts payable. The
licensed freight forwarder may maintain these records in either paper or
electronic form, which shall be readily available in usable form to the
Commission; the electronically maintained records shall be no less
accessible than if they were maintained in paper form. These
recordkeeping requirements are independent of the retention requirements
of other federal agencies. The licensed freight forwarder must maintain
the following records for a period of five years:
    (a) General financial data. A current running account of all
receipts and disbursements, accounts receivable and payable, and daily
cash balances, supported by appropriate books of account, bank deposit
slips, canceled checks, and monthly reconciliation of bank statements.
    (b) Types of services by shipment. A separate file shall be
maintained for each shipment. Each file shall include a copy of each
document prepared, processed, or obtained by the licensee, including
each invoice for any service arranged by the licensee and performed by
others, with respect to such shipment.
    (c) Receipts and disbursements by shipment. A record of all sums
received and/or disbursed by the licensee for services rendered and out-
of-pocket expenses advanced in connection with each shipment, including
specific dates and amounts.
    (d) Special contracts. A true copy, or if oral, a true and complete
memorandum, of every special arrangement or contract between a licensed
freight forwarder and a principal, or modification or cancellation
thereof. Bona fide shippers shall also have access to such records upon
reasonable request.



Sec. 515.34  Regulated Persons Index.

    The Regulated Persons Index is a database containing the names,
addresses, phone/fax numbers and financial responsibility information,
where applicable, of Commission-regulated entities. The database may be
purchased for $108 by contacting the Bureau of Certification and
Licensing, Federal Maritime Commission, Washington, DC 20573. Contact
information is listed on the Commission's website at www.fmc.gov.

[64 FR 11171, Mar. 8, 1999, as amended at 67 FR 39860, June 11, 2002; 70
FR 10330, Mar. 3, 2005]



           Subpart E_Freight Forwarding Fees and Compensation



Sec. 515.41  Forwarder and principal; fees.

    (a) Compensation or fee sharing. No licensed freight forwarder shall
share, directly or indirectly, any compensation or freight forwarding
fee with a shipper, consignee, seller, or purchaser, or an agent,
affiliate, or employee thereof; nor with any person advancing the
purchase price of the property or guaranteeing payment therefor; nor

[[Page 168]]

with any person having a beneficial interest in the shipment.
    (b) Receipt for cargo. Each receipt for cargo issued by a licensed
freight forwarder shall be clearly identified as ``Receipt for Cargo''
and be readily distinguishable from a bill of lading.
    (c) Special contracts. To the extent that special arrangements or
contracts are entered into by a licensed freight forwarder, the
forwarder shall not deny equal terms to other shippers similarly
situated.
    (d) Reduced forwarding fees. No licensed freight forwarder shall
render, or offer to render, any freight forwarding service free of
charge or at a reduced fee in consideration of receiving compensation
from a common carrier or for any other reason. Exception: A licensed
freight forwarder may perform freight forwarding services for recognized
relief agencies or charitable organizations, which are designated as
such in the tariff of the common carrier, free of charge or at reduced
fees.
    (e) In-plant arrangements. A licensed freight forwarder may place an
employee or employees on the premises of its principal as part of the
services rendered to such principal, provided:
    (1) The in-plant forwarder arrangement is reduced to writing in the
manner of a special contract under Sec. 515.33(d), which shall identify
all services provided by either party (whether or not constituting a
freight forwarding service); state the amount of compensation to be
received by either party for such services; set forth all details
concerning the procurement, maintenance or sharing of office facilities,
personnel, furnishings, equipment and supplies; describe all powers of
supervision or oversight of the licensee's employee(s) to be exercised
by the principal; and detail all procedures for the administration or
management of in-plant arrangements between the parties; and
    (2) The arrangement is not an artifice for a payment or other
unlawful benefit to the principal.



Sec. 515.42  Forwarder and carrier; compensation.

    (a) Disclosure of principal. The identity of the shipper must always
be disclosed in the shipper identification box on the bill of lading.
The licensed freight forwarder's name may appear with the name of the
shipper, but the forwarder must be identified as the shipper's agent.
    (b) Certification required for compensation. A common carrier may
pay compensation to a licensed freight forwarder only pursuant to such
common carrier's tariff provisions. Where a common carrier's tariff
provides for the payment of compensation, such compensation shall be
paid on any shipment forwarded on behalf of others where the forwarder
has provided a written certification as prescribed in paragraph (c) of
this section and the shipper has been disclosed on the bill of lading as
provided for in paragraph (a) of this section. The common carrier shall
be entitled to rely on such certification unless it knows that the
certification is incorrect. The common carrier shall retain such
certifications for a period of five (5) years.
    (c) Form of certification. Where a licensed freight forwarder is
entitled to compensation, the forwarder shall provide the common carrier
with a signed certification which indicates that the forwarder has
performed the required services that entitle it to compensation. The
required certification may be placed on one copy of the relevant bill of
lading, a summary statement from the forwarder, the forwarder's
compensation invoice, or as an endorsement on the carrier's compensation
check. Each forwarder shall retain evidence in its shipment files that
the forwarder, in fact, has performed the required services enumerated
on the certification. The certification shall read as follows:

    The undersigned hereby certifies that neither it nor any holding
company, subsidiary, affiliate, officer, director, agent or executive of
the undersigned has a beneficial interest in this shipment; that it is
the holder of valid FMC License No., issued by the Federal Maritime
Commission and has performed the following services:
    (1) Engaged, booked, secured, reserved, or contracted directly with
the carrier or its agent for space aboard a vessel or confirmed the
availability of that space; and
    (2) Prepared and processed the ocean bill of lading, dock receipt,
or other similar document with respect to the shipment.


[[Page 169]]


    (d) Compensation pursuant to tariff provisions. No licensed freight
forwarder, or employee thereof, shall accept compensation from a common
carrier which is different from that specifically provided for in the
carrier's effective tariff(s). No conference or group of common carriers
shall deny in the export commerce of the United States compensation to
an ocean freight forwarder or limit that compensation, as provided for
by section 19(e)(4) of the Act (46 U.S.C. 40904(d)) and 46 CFR part 535.
    (e) Electronic data interchange. A licensed freight forwarder may
own, operate, or otherwise maintain or supervise an electronic data
interchange-based computer system in its forwarding business; however,
the forwarder must directly perform value-added services as described in
paragraph (c) of this section in order to be entitled to carrier
compensation.
    (f) Compensation; services performed by underlying carrier;
exemptions. No licensed freight forwarder shall charge or collect
compensation in the event the underlying common carrier, or its agent,
has, at the request of such forwarder, performed any of the forwarding
services set forth in Sec. 515.2(i), unless such carrier or agent is
also a licensed freight forwarder, or unless no other licensed freight
forwarder is willing and able to perform such services.
    (g) Duplicative compensation. A common carrier shall not pay
compensation for the services described in paragraph (c) of this section
more than once on the same shipment.
    (h) Non-vessel-operating common carriers; compensation. (1) A
licensee operating as an NVOCC and a freight forwarder, or a person
related thereto, may collect compensation when, and only when, the
following certification is made together with the certification required
under paragraph (c) of this section:

    The undersigned certifies that neither it nor any related person has
issued a bill of lading or otherwise undertaken common carrier
responsibility as a non-vessel-operating common carrier for the ocean
transportation of the shipment covered by this bill of lading.

    (2) Whenever a person acts in the capacity of an NVOCC as to any
shipment, such person shall not collect compensation, nor shall any
underlying ocean common carrier pay compensation to such person, for
such shipment.
    (i) Compensation; beneficial interest. A licensed freight forwarder
may not receive compensation from a common carrier with respect to any
shipment in which the forwarder has a beneficial interest or with
respect to any shipment in which any holding company, subsidiary,
affiliate, officer, director, agent, or executive of such forwarder has
a beneficial interest.

[64 FR 11171, Mar. 8, 1999, as amended at 74 FR 50721, Oct. 1, 2009]



Sec. 515.91  OMB control number assigned pursuant to the Paperwork
Reduction Act.

    The Commission has received OMB approval for this collection of
information pursuant to the Paperwork Reduction Act of 1995, as amended.
In accordance with that Act, agencies are required to display a
currently valid control number. The valid control number for this
collection of information is 3072-0018.

[64 FR 11171, Mar. 8, 1999, as amended at 78 FR 42888, July 18, 2013]



PART 520_CARRIER AUTOMATED TARIFFS--Table of Contents



Sec.
520.1 Scope and purpose.
520.2 Definitions.
520.3 Publication responsibilities.
520.4 Tariff contents.
520.5 Standard tariff terminology.
520.6 Retrieval of information.
520.7 Tariff limitations.
520.8 Effective dates.
520.9 Access to tariffs.
520.10 Integrity of tariffs.
520.11 Non-vessel-operating common carriers.
520.12 Time/Volume rates.
520.13 Exemptions and exceptions.
520.14 Special permission.
520.91 OMB control number assigned pursuant to the Paperwork Reduction
          Act.

Appendix A to Part 520--Standard Terminology and Codes

    Authority: 5 U.S.C. 553; 46 U.S.C. 305, 40101-40102, 40501-40503,
40701-40706, 41101-41109.

[[Page 170]]


    Source: 64 FR 11225, Mar. 8, 1999, unless otherwise noted.



Sec. 520.1  Scope and purpose.

    (a) Scope. The regulations of this part govern the publication of
tariffs in automated systems by common carriers and conferences in the
waterborne foreign commerce of the United States. They cover the
transportation of property by such carriers, including through
transportation with inland carriers. They implement the tariff
publication requirements of section 8 of the Shipping Act of 1984 (``the
Act'') (46 U.S.C. 40501-40503), as modified by the Ocean Shipping Reform
Act of 1998 and section 424 of Public Law 105-258.
    (b) Purpose. The requirements of this part are intended to permit:
    (1) Shippers and other members of the public to obtain reliable and
useful information concerning the rates and charges that will be
assessed by common carriers and conferences for their transportation
services;
    (2) Carriers and conferences to meet their publication requirements
pursuant to section 8 of the Act (46 U.S.C. 40501-40503);
    (3) The Commission to ensure that carrier tariff publications are
accurate and accessible and to protect the public from violations by
carriers of section 10 of the Act (46 U.S.C. 41101-41106); and
    (4) The Commission to review and monitor the activities of
controlled carriers pursuant to section 9 of the Act (46 U.S.C. 40701-
40706).

[64 FR 11225, Mar. 8, 1999, as amended at 74 FR 50721, Oct. 1, 2009]



Sec. 520.2  Definitions.

    The following definitions shall apply to this part:
    Act means the Shipping Act of 1984, as amended by the Ocean Shipping
Reform Act of 1998.
    Amendment means any change, alteration, correction or modification
of an existing tariff.
    Assessorial charge means the amount that is added to the basic ocean
freight rate.
    BTA means the Commission's Bureau of Trade Analysis or its successor
bureau.
    Bulk cargo means cargo that is loaded and carried in bulk without
mark or count in a loose unpackaged form, having homogeneous
characteristics. Bulk cargo loaded into intermodal equipment, except
LASH or Seabee barges, is subject to mark and count and is, therefore,
subject to the requirements of this part.
    Co-loading means the combining of cargo by two or more NVOCCs for
tendering to an ocean common carrier under the name of one or more of
the NVOCCs.
    Combination rate means a rate for a shipment moving under intermodal
transportation which is computed by the addition of a TRI, and an inland
rate applicable from/to inland points not covered by the TRI.
    Commission means the Federal Maritime Commission.
    Commodity description means a comprehensive description of a
commodity listed in a tariff, including a brief definition of the
commodity.
    Commodity description number means a number that may be used to
identify a commodity description.
    Commodity index means an index of the commodity descriptions
contained in a tariff.
    Commodity rate means a rate for shipping to or from specific
locations a commodity or commodities specifically named or described in
the tariff in which the rate or rates are published.
    Common carrier means a person holding itself out to the general
public to provide transportation by water of cargo between the United
States and a foreign country for compensation that:
    (1) Assumes responsibility for the transportation from port or point
of receipt to the port or point of destination; and
    (2) Utilizes, for all or part of that transportation, a vessel
operating on the high seas or the Great Lakes between a port in the
United States and a port in a foreign country, except that the term does
not include a common carrier engaged in ocean transportation by ferry
boat, ocean tramp, or chemical parcel tanker or by a vessel when
primarily engaged in the carriage of perishable agricultural
commodities:
    (i) If the common carrier and the owner of those commodities are
wholly-owned, directly or indirectly, by a

[[Page 171]]

person primarily engaged in the marketing and distribution of those
commodities and
    (ii) Only with respect to the carriage of those commodities.
    Conference means an agreement between or among two or more ocean
common carriers which provides for the fixing of and adherence to
uniform tariff rates, charges, practices and conditions of service
relating to the receipt, carriage, handling and/or delivery of
passengers or cargo for all members, but the term does not include joint
service, consortium, pooling, sailing, or transshipment agreements.
    Consignee means the recipient of cargo from a shipper; the person to
whom a transported commodity is to be delivered.
    Container means a demountable and reusable freight-carrying unit
designed to be transported by different modes of transportation and
having construction, fittings, and fastenings able to withstand, without
permanent distortion or additional exterior packaging or containment,
the normal stresses that apply on continuous all-water and intermodal
transportation. The term includes dry cargo, ventilated, insulated,
refrigerated, flat rack, vehicle rack, liquid tank, and open-top
containers without chassis, but does not include crates, boxes or
pallets.
    Controlled carrier means an ocean common carrier that is, or whose
operating assets are, directly or indirectly owned or controlled by a
government; ownership or control by a government shall be deemed to
exist with respect to any common carrier if:
    (1) A majority portion of the interest in the common carrier is
owned or controlled in any manner by that government, by an agency
thereof, or by any public or private person controlled in any manner by
that government, by any agency thereof, or by any public or private
person controlled by that government; or
    (2) That government has the right to appoint or disapprove the
appointment of a majority of the directors, the chief operating officer
or the chief executive officer of the common carrier.
    Effective date means the date upon which a published tariff or
tariff element is scheduled to go into effect. Where there are multiple
publications to a tariff element on the same day, the last element
published with the same effective date is the one effective for that
day.
    Expiration date means the last day after which the entire tariff or
tariff element is no longer in effect.
    Foreign commerce means that commerce under the jurisdiction of the
Act.
    Forest products means forest products including, but not limited to,
lumber in bundles, rough timber, ties, poles, piling, laminated beams,
bundled siding, bundled plywood, bundled core stock or veneers, bundled
particle or fiber boards, bundled hardwood, wood pulp in rolls, wood
pulp in unitized bales, paper and paper board in rolls or in pallet or
skid-sized sheets, liquid or granular by-products derived from pulping
and papermaking, and engineered wood products.
    Harmonized Code means the coding provisions of the Harmonized
System.
    Harmonized System means the Harmonized Tariff Schedule of the United
States (``U.S. HTS''), based on the international Harmonized System,
administered by the U.S. Customs Service for the U.S. International
Trade Commission, and Schedule B, administered by the U.S. Census
Bureau.
    Inland point means any city and associated state/province, country,
U.S. ZIP code, or U.S. ZIP code range, which lies beyond port terminal
areas. (A city may share the name of a port: the immediate ship-side and
terminal area is the port, but the rest of the city is considered an
inland point.)
    Inland rate means a rate specified from/to an ocean port to/from an
inland point, for specified modes of overland transportation.
    Inland rate table means a structured matrix of geographic inland
locations (points, postal codes/postal code ranges, etc.) on one axis
and transportation modes (truck, rail, etc.) on the other axis, with the
inland rates specified at the matrix row and column intersections.
    Intermodal transportation means continuous through transportation
involving more than one mode of service (e.g., ship, rail, motor, air),
for pickup and/or delivery at a point beyond the

[[Page 172]]

area of the port at which the vessel calls. The term ``intermodal
transportation'' can apply to ``through transportation (at through
rates)'' or transportation on through routes using combination rates.
    Joint rates means rates or charges established by two or more common
carriers for ocean transportation over the combined routes of such
common carriers.
    Local rates means rates or charges for transportation over the route
of a single common carrier (or any one common carrier participating in a
conference tariff), the application of which is not contingent upon a
prior or subsequent movement.
    Location group means a logical collection of geographic points,
ports, states/provinces, countries, or combinations thereof, which is
primarily used to identify, by location group name, a group that may
represent tariff origin and/or destination scope and TRI origin and/or
destination.
    Loyalty contract means a contract with an ocean common carrier or
agreement by which a shipper obtains lower rates by committing all or a
fixed portion of its cargo to that carrier or agreement and the contract
provides for a deferred rebate arrangement.
    Motor vehicle means a wheeled vehicle whose primary purpose is
ordinarily the non-commercial transportation of passengers, including an
automobile, pickup truck, minivan, or sport utility vehicle.
    Ocean common carrier means a common carrier that operates, for all
or part of its common carrier service, a vessel on the high seas or the
Great Lakes between a port in the United States and a port in a foreign
country, except that the term does not include a common carrier engaged
in ocean transportation by ferry boat, ocean tramp, or chemical parcel-
tanker.
    Ocean transportation intermediary means an ocean freight forwarder
or a non-vessel-operating common carrier. For purposes of this part,
    (1) Ocean freight forwarder means a person that--
    (i) In the United States, dispatches shipments from the United
States via a common carrier and books or otherwise arranges space for
those shipments on behalf of shippers; and
    (ii) Processes the documentation or performs related activities
incident to those shipments; and
    (2) Non-vessel-operating common carrier (``NVOCC'') means a common
carrier that does not operate the vessels by which the ocean
transportation is provided, and is a shipper in its relationship with an
ocean common carrier.
    Open rate means a rate on a specified commodity or commodities over
which a conference relinquishes or suspends its ratemaking authority in
whole or in part, thereby permitting each individual ocean common
carrier member of the conference to fix its own rate on such commodity
or commodities.
    Organization name means an entity's name on file with the Commission
and for which the Commission assigns an organization number.
    Organization record means information regarding an entity, including
its name, address, and organization type.
    Origin scope means a location group defining the geographic range of
cargo origins covered by a tariff.
    Person includes individuals, firms, partnerships, associations,
companies, corporations, joint stock associations, trustees, receivers,
agents, assignees and personal representatives.
    Point of rest means that area on the terminal facility which is
assigned for the receipt of inbound cargo from the ship and from which
inbound cargo may be delivered to the consignee, and that area which is
assigned for the receipt of outbound cargo from shippers for vessel
loading.
    Port means a place at which a common carrier originates or
terminates (by transshipment or otherwise) its actual ocean carriage of
cargo or passengers as to any particular transportation movement.
    Project rates means rates applicable to the transportation of
materials and equipment to be employed in the construction or
development of a named facility used for a major governmental,
charitable, manufacturing, resource exploitation and public utility or
public service purpose, including disaster relief projects.
    Proportional rates means rates or charges assessed by a common
carrier

[[Page 173]]

for transportation services, the application of which is conditioned
upon a prior or subsequent movement.
    Publication date means the date a tariff or tariff element is
published in a carrier's or conference's tariff.
    Publisher means an organization authorized to publish or amend
tariff information.
    Rate means a price stated in a tariff for providing a specified
level of transportation service for a stated cargo quantity, from origin
to destination, on and after a stated effective date or within a defined
time frame.
    Retrieval means the process by which a person accesses a tariff via
dial-up telecommunications or a network link and interacts with the
carrier's or publisher's system on a transaction-by-transaction basis to
retrieve published tariff matter.
    Rules means the stated terms and conditions set by the tariff owner
which govern the application of tariff rates, charges and other matters.
    Scope means the location group(s) (geographic groupings(s)) listing
the ports or ranges of ports to and from which the tariff's rates apply.
    Shipment means all of the cargo carried under the terms of a single
bill of lading.
    Shipper means:
    (1) A cargo owner;
    (2) The person for whose account the ocean transportation is
provided;
    (3) The person to whom delivery is to be made;
    (4) A shipper's association; or
    (5) An NVOCC that accepts responsibility for payment of all charges
applicable under the tariff or service contract.
    Shippers' association means a group of shippers that consolidates or
distributes freight on a nonprofit basis for the members of the group in
order to secure carload, truckload, or other volume rates or service
contracts.
    Special permission means permission, authorized by the Commission,
for certain tariff publications that do not conform with applicable
regulations, usually involving effectiveness on less than statutory
notice.
    Tariff means a publication containing the actual rates, charges,
classifications, rules, regulations and practices of a common carrier or
a conference of common carriers. The term ``practices'' refers to those
usages, customs or modes of operation which in any way affect, determine
or change the transportation rates, charges or services provided by a
common carrier or conference and, in the case of conferences, must be
restricted to activities authorized by the basic conference agreement.
    Tariff number means a unique 3-digit number assigned by the
publisher to distinguish it from other tariffs. Tariffs may be
identified by the 6-digit organization number plus the user-assigned
tariff number (e.g., 999999-001) or a Standard Carrier Alpha Code
(``SCAC'') plus the user-assigned tariff number.
    Tariff rate item (``TRI'') means a single freight rate, in effect on
and after a specific date or for a specific time period, for the
transportation of a stated cargo quantity, which may move from origin to
destination under a single specified set of transportation conditions,
such as container size or temperature.
    TRI number means a number that consists of the numeric commodity
code, if any, and a unique numeric suffix used to differentiate TRIs
within the same commodity description. TRI numbers are not required in
systems that do not use numeric commodity coding.
    Through rate means the single amount charged by a common carrier in
connection with through transportation.
    Through transportation means continuous transportation between
points of origin and destination, either or both of which lie beyond
port terminal areas, for which a through rate is assessed and which is
offered or performed by one or more carriers, at least one of which is a
common carrier, between a United States point or port and a foreign
point or port.
    Thru date means the date after which an amendment to a tariff
element is designated by the publisher to be unavailable for use and the
previously effective tariff element automatically goes back into effect.
    Time/volume rate means a rate published in a tariff which is
conditioned

[[Page 174]]

upon receipt of a specified aggregate volume of cargo or aggregate
freight revenue over a specified period of time.
    Trade name means a name used for conducting business, but which is
not necessarily its legal name. This is also known as a ``d/b/a'' (doing
business as) name.
    Transshipment means the physical transfer of cargo from a vessel of
one carrier to a vessel of another in the course of all-water or through
transportation, where at least one of the exchanging carriers is an
ocean common carrier subject to the Commission's jurisdiction.

[64 FR 11225, Mar. 8, 1999, as amended at 64 FR 23022, Apr. 29, 1999; 65
FR 26512, May 8, 2000; 67 FR 39860, June 11, 2002]



Sec. 520.3  Publication responsibilities.

    (a) General. Unless otherwise exempted by Sec. 520.13, all common
carriers and conferences shall keep open for public inspection, in
automated tariff systems, tariffs showing all rates, charges,
classifications, rules, and practices between all points or ports on
their own routes and on any through transportation route that has been
established.
    (b) Conferences. Conferences shall publish, in their automated
tariff systems, rates offered pursuant to independent action by their
members and may publish any open rates offered by their members.
Alternatively, open rates may be published in individual tariffs of
conference members.
    (c) Agents. Common carriers or conferences may use agents to meet
their publication requirements under this part.
    (d) Notification. Each common carrier and conference shall notify
BTA, prior to the commencement of common carrier service pursuant to a
published tariff, of its organization name, organization number, home
office address, name and telephone number of firm's representative, the
location of its tariffs, and the publisher, if any, used to maintain its
tariffs, by electronically submitting Form FMC-1 via the Commission's
website at www.fmc.gov. Any changes to the above information shall be
immediately transmitted to BTA. The Commission will provide a unique
organization number to new entities operating as common carriers or
conferences in the U.S. foreign commerce.
    (e) Location of tariffs. The Commission will publish on its website,
www.fmc.gov, a list of the locations of all carrier and conference
tariffs. The Commission will update this list on a periodic basis.

[64 FR 11225, Mar. 8, 1999, as amended at 67 FR 39860, June 11, 2002]



Sec. 520.4  Tariff contents.

    (a) General. Tariffs published pursuant to this part shall:
    (1) State the places between which cargo will be carried;
    (2) List each classification of cargo in use;
    (3) State the level of ocean transportation intermediary, as defined
by section 3(17)(A) of the Act (46 U.S.C. 40102(18)), compensation, if
any, to be paid by a carrier or conference;
    (4) State separately each terminal or other charge, privilege, or
facility under the control of the carrier or conference and any rules or
regulations that in any way change, affect, or determine any part of the
aggregate of the rates or charges;
    (5) Include sample copies of any bill of lading, contract of
affreightment or other document evidencing the transportation agreement;
    (6) Include copies of any loyalty contract, omitting the shipper's
name;
    (7) Contain an organization record, tariff record, and tariff rules;
and
    (8) For commodity tariffs, also contain commodity descriptions and
tariff rate items.
    (b) Organization record. Common carriers' and conferences'
organization records shall include:
    (1) Organization name;
    (2) Organization number assigned by the Commission;
    (3) Agreement number, where applicable;
    (4) Organization type (e.g., ocean common carrier (VOCC), conference
(CONF), non-vessel-operating common carrier (NVOCC) or agent);
    (5) Home office address and telephone number of firm's
representative;
    (6) Names and organization numbers of all affiliates to conferences
or agreements, including trade names; and

[[Page 175]]

    (7) The publisher, if any, used to maintain the organization's
tariffs.
    (c) Tariff record. The tariff record for each tariff shall include:
    (1) Organization number and name, including any trade name;
    (2) Tariff number;
    (3) Tariff title;
    (4) Tariff type (e.g., commodity, rules, equipment interchange, or
bill of lading);
    (5) Contact person and address;
    (6) Default measurement and currency units;
    (7) Origination and destination scope; and
    (8) A statement certifying that all information contained in the
tariff is true and accurate and no unlawful alterations will be
permitted.
    (d) Tariff rules. Carriers and conferences shall publish in their
tariffs any rule that affects the application of the tariff.
    (e) Commodity descriptions. (1) For each separate commodity in a
tariff, a distinct numeric code may be used. Tariff publishers are not
required to use any numeric code to identify commodities, but should
they choose to do so, they are encouraged to use the U.S. Harmonized
Tariff Schedule (``U.S. HTS'') for both the commodity coding and
associated terminology (definitions).
    (2) If a tariff publisher uses a numeric code to identify
commodities, the following commodity types shall be preceded by their
associated 2-digit prefixes, with the remaining digits at the
publisher's option:
    (i) Mixed commodities--``99'';
    (ii) Projects--``98''; and
    (iii) non-commodities, e.g., ``cargo, n.o.s.,'' ``general cargo,''
or ``freight-all kinds''--``00''.
    (3) Commodity index. (i) Each commodity description created under
this section shall have at least one similar index entry which will
logically represent the commodity within the alphabetical index.
Publishers are encouraged, however, to create multiple entries in the
index for articles with equally valid common use names, such as,
``Sodium Chloride,'' ``Salt, common,'' etc.
    (ii) If a commodity description includes two or more commodities,
each included commodity shall be shown in the index.
    (iii) Items, such as ``mixed commodities,'' ``projects'' or
``project rates,'' ``n.o.s.'' descriptions, and ``FAK,'' shall be
included in the commodity index.
    (f) Tariff rate items. A tariff rate item (``TRI'') is the single
freight rate in effect for the transportation of cargo under a specified
set of transportation conditions. TRIs must contain the following:
    (1) Brief commodity description;
    (2) TRI number (optional);
    (3) Publication date;
    (4) Effective date;
    (5) Origin and destination locations or location groups;
    (6) Rate and rate basis; and
    (7) Service code.
    (g) Location groups. In the primary tariff, or in a governing
tariff, a publisher may define and create groups of cities, states,
provinces and countries (e.g., location groups) or groups of ports
(e.g., port groups), which may be used in the construction of TRIs and
other tariff objects, in lieu of specifying particular place names in
each tariff item, or creating multiple tariff items which are identical
in all ways except for place names.
    (h) Inland rate tables. If a carrier or conference desires to
provide intermodal transportation to or from named points/postal regions
at combination rates, it shall clearly and accurately set forth the
applicable charges in an ``Inland Rate Tables'' section. An inland rate
table may be constructed to provide an inland distance which is applied
to a per mile rate to calculate the inland rate.
    (i) Shipper requests. Conference tariffs shall contain clear and
complete instructions, in accordance with the agreement's provisions,
stating where and by what method shippers may file requests and
complaints and how they may engage in consultation pursuant to section
5(b)(6) of the Act (46 U.S.C. 40303(b)(6)), together with a sample rate
request form or a description of the information necessary for
processing the request or complaint.
    (j) Inland divisions. Common carriers are not required to state
separately or

[[Page 176]]

otherwise reveal in tariffs the inland division of a through rate.

[64 FR 11225, Mar. 8, 1999, as amended at 74 FR 50722, Oct. 1, 2009]



Sec. 520.5  Standard tariff terminology.

    (a) Approved codes. The Standard Terminology Appendix contains codes
for rate bases, container sizes, service, etc., and units for weight,
measure and distance. They are intended to provide a standard
terminology baseline for tariffs to facilitate retriever efficiency.
Tariff publishers may use additional codes, if they are clearly defined
in their tariffs.
    (b) Geographic names. Tariffs should employ locations (points) that
are published in the National Imagery and Mapping Agency (``NIMA'')
gazetteer or the Geographic Names Information System (``GNIS'')
developed by the U.S. Geological Survey. Ports published or approved for
publication in the World Port Index (Pub. No. 150) should also be used
in tariffs. Tariff publishers may use geographic names that are
currently in use and have not yet been included in these publications.



Sec. 520.6  Retrieval of information.

    (a) General. Tariffs systems shall present retrievers with the
ability to:
    (1) Search for commonly understood tariff objects (e.g.,
commodities, origins, destinations, etc.) without restricting such
search to a specific tariff;
    (2) Search a tariff for a rate on the basis of origin, destination
and commodity;
    (3) Employ a tariff selection option; or
    (4) Select an object group (e.g., rules, locations, groups, etc.)
within a particular tariff.
    (b) Search capability. Tariffs shall provide the capability to
search for tariff matter by non-case sensitive text search. Text search
matches for commodity descriptions should result in a commodity or
commodity index list.
    (c) Commodities and TRIs. Retriever selection of a specific
commodity from a commodity index list shall display the commodity
description and provide an option for searching for a rate (e.g., on the
basis of origin/destination) or a TRI list, if multiple TRIs are in
effect for the commodity.
    (d) Object groups. Retriever selection of a specific object group
shall result in a list of the objects within the group or present a text
search mechanism to allow location of an object within the group. For
example, selection of the rules object group would present a list of the
rules or a text search mechanism for locating specific terms or phrases
within the rules.
    (e) Basic ocean freight. The minimum rate display for tariffs shall
consist of the basic ocean freight rate and a list of all assessorial
charges that apply for the retriever-entered shipment parameters. If
other rules or charges may be applicable to a shipment under certain
circumstances, the tariff shall so indicate.
    (f) Displays. All displays of individual tariff matter shall include
the publication date, effective date, amendment code (as contained in
appendix A of this part) and object name or number. When applicable, a
thru date or expiration date shall also be displayed. Use of ``S'' as an
amendment code shall be accompanied by a Commission issued special use
number.



Sec. 520.7  Tariff limitations.

    (a) General. Tariffs published pursuant to this part shall:
    (1) Be clear and definite;
    (2) Use English as the primary textual language;
    (3) Not contain cross-references to any other rate tariffs, except:
    (i) A tariff of general applicability maintained by that same
carrier or conference,
    (ii) The individual tariffs of members of a non-conference agreement
to enter into time/volume rates may cross-reference the tariffs of other
members for purposes of said time/volume rates, and
    (iii) Multiple common tariffs of a conference agreement to enter
into time/volume rates may cross-reference their own multiple conference
tariffs for purposes of said time/volume rates; and
    (4) Not duplicate or conflict with any other tariff publication.

[[Page 177]]

    (b) Notice of cancellation. Carriers and conferences shall inform
BTA, in writing, whenever a tariff is canceled and the effective date of
that cancellation.
    (c) Applicable rates. The rates, charges, and rules applicable to
any given shipment shall be those in effect on the date the cargo is
received by the common carrier or its agent including originating
carriers in the case of rates for through transportation.
    (d) Minimum quantity rates. When two or more TRIs are stated for the
same commodity over the same route and under similar conditions, and the
application is dependent upon the quantity of the commodity shipped, the
total freight charges assessed against the shipment may not exceed the
total charges computed for a larger quantity, if the TRI specifying a
required minimum quantity (either weight or measurement; per container
or in containers) will be applicable to the contents of the
container(s), and if the minimum set forth is met or exceeded. At the
shipper's option, a quantity less than the minimum level may be
freighted at the lower TRI if the weight or measurement declared for
rating purposes is increased to the minimum level.
    (e) Green salted hides. The shipping weight for green salted hides
shall be either a scale weight or a scale weight minus a deduction,
which amount and method of computation are specified in the commodity
description. The shipper must furnish the carrier a weight certificate
or dock receipt from an inland common carrier for each shipment at or
before the time the shipment is tendered for ocean transportation.
    (f) Conference situations. (1) New members of a conference shall
cancel any independent tariffs applicable to the trades served by the
conference, within ninety (90) days of membership in the conference.
Individual conference members may publish their own separate open rate
tariffs. Admission to the conference may be effective on the date notice
is published in the conference tariff.
    (2) New conference agreements have ninety (90) days within which to
publish a new tariff.
    (g) Overcharge claims. (1) No tariff may limit the filing of
overcharge claims with a common carrier to a period of less than three
(3) years from the accrual of the cause of action.
    (2) The acceptance of any overcharge claim may not be conditioned
upon the payment of a fee or charge.
    (3) No tariff may require that overcharge claims based on alleged
errors in weight, measurement or description of cargo be filed before
the cargo has left the custody of the common carrier.
    (h) Returned cargo. When a carrier or conference offers the return
shipment of refused, damaged or rejected shipments, or exhibits at trade
fairs, shows or expositions, to port of origin at the TRI assessed on
the original movement, and such TRI is lower than the prevailing TRI:
    (1) The return shipment must occur within one (1) year;
    (2) The return movement must be made over the line of the same
common carrier performing the original movement, except in the use of a
conference tariff, where return may be made by any member line when the
original shipment was carried under the conference tariff; and
    (3) A copy of the original bill of lading showing the rate assessed
must be presented to the return common carrier.

[64 FR 11225, Mar. 8, 1999, as amended at 67 FR 39860, June 11, 2002]



Sec. 520.8  Effective dates.

    (a) General. (1) No new or initial rate, charge, or change in an
existing rate, that results in an increased cost to a shipper may become
effective earlier than thirty (30) calendar days after publication.
    (2) An amendment which deletes a specific commodity and applicable
rate from a tariff, thereby resulting in a higher ``cargo n.o.s.'' or
similar general cargo rate, is a rate increase requiring a 30-day notice
period.
    (3) Rates for the transportation of cargo for the U.S. Department of
Defense may be effective upon publication.
    (4) Changes in rates, charges, rules, regulations or other tariff
provisions resulting in a decrease in cost to a shipper may become
effective upon publication.

[[Page 178]]

    (b) Amendments. The following amendments may take effect upon
publication:
    (1) Those resulting in no change in cost to a shipper;
    (2) The canceling of a tariff due to cessation of all service by the
carrier between the ports or points covered by the tariff;
    (3) The addition of a port or point to a previously existing origin
or destination grouping; or
    (4) Changes in charges for terminal services, canal tolls,
additional charges, or other provisions not under the control of the
common carriers or conferences, which merely acts as a collection agent
for such charges and the agency making such changes does so without
notifying the tariff owner.
    (c) Controlled carriers. Published rates by or for controlled
carriers shall be governed by the procedures set forth in part 565 of
this chapter.



Sec. 520.9  Access to tariffs.

    (a) Methods to access. Carriers and conferences shall provide access
to their published tariffs, via a personal computer (``PC''), by:
    (1) Dial-up connection via public switched telephone networks
(``PSTN''); or
    (2) The Internet (Web) by:
    (i) Web browser; or
    (ii) Telnet session.
    (b) Dial-up connection via PSTN. (1) This connection option requires
that tariffs provide:
    (i) A minimum of a 14.4Kbps modem capable of receiving incoming
calls;
    (ii) Smart terminal capability for VT-100 terminal or terminal
emulation access; and
    (iii) Telephone line quality for data transmission.
    (2) The modem may be included in a collection (bank) of modems as
long as all modems in the bank meet the minimum speed.
    (c) Internet connection. (1) This connection option requires that
systems provide:
    (i) A universal resource locator (``URL'') Internet address (e.g.,
http://www.tariffsrus.com or http://1.2.3.4); and/or
    (ii) A URL Internet address (e.g., telnet://tariffsrus or telnet://
1.2.3.4), for Telnet session access over the Internet.
    (2) Carriers or conferences shall ensure that their Internet service
providers provide static Internet addresses.
    (d) Commission access. Commission telecommunications access to
systems must include connectivity via a dial-up connection over PSTNs or
a connection over the Internet. Connectivity will be provided at the
expense of the publishers. Any recurring connection fees, hardware
rental fees, usage fees or any other charges associated with the
availability of the system are the responsibility of the publisher. The
Commission shall only be responsible for the long-haul charges for PSTN
calls to a tariff initiated by the FMC.
    (e) Limitations. (1) Tariffs must be made available to any person
without time, quantity, or other limitations.
    (2) Carriers are not required to provide remote terminals for access
under this section.
    (3) Carriers and conferences may assess a reasonable fee for access
to their tariff publication systems and such fees shall not be
discriminatory.
    (4) Tariff publication systems shall provide user instructions for
access to tariff information.
    (f) Federal agencies. Carriers and conferences may not assess any
access charges against the Commission or any other Federal agency.
    (g) User identifications. Carriers and conferences shall provide the
Commission with the documentation it requires and the number of user
identifications and passwords it requests to facilitate the Commission's
access to their systems, if they require such identifications and
passwords.



Sec. 520.10  Integrity of tariffs.

    (a) Historical data. Carriers and conferences shall maintain the
data that appeared in their tariff publication systems for a period of
five (5) years from the date such information is superseded, canceled or
withdrawn, and shall provide on-line access to such data for two (2)
years. After two (2) years, such data may be retained on-line or in
other electronic form, and shall be made available to any person or the

[[Page 179]]

Commission upon request in a reasonable period of time. Carriers and
conferences may charge a reasonable fee for the provision of historical
data, not to exceed the fees for obtaining such data on-line. No fee
shall apply to federal agencies.
    (b) Access date capability. Each tariff shall provide the capability
for a retriever to enter an access date, i.e., a specific date for the
retrieval of tariff data, so that only data in effect on that date would
be directly retrievable. This capability would also align any rate
adjustments and assessorial charges that were effective on the access
date for rate calculations and designation of applicable surcharges. The
access date shall also apply to the alignment of tariff objects for any
governing tariffs.
    (c) Periodic review. The Commission will periodically review
published tariff systems and will prohibit the use of any system that
fails to meet the requirements of this part.
    (d) Access to systems. Carriers and conferences shall provide the
Commission reasonable access to their automated systems and records in
order to conduct reviews.



Sec. 520.11  Non-vessel-operating common carriers.

    (a) Financial responsibility. An ocean transportation intermediary
that operates as a non-vessel-operating common carrier shall state in
its tariff publication:
    (1) That it has furnished the Commission proof of its financial
responsibility in the manner and amount required by part 515 of this
chapter;
    (2) The manner of its financial responsibility;
    (3) Whether it is relying on coverage provided by a group or
association to which it is a member;
    (4) The name and address of the surety company, insurance company or
guarantor issuing the bond, insurance policy, or guaranty;
    (5) The number of the bond, insurance policy or guaranty; and
    (6) Where applicable, the name and address of the group or
association providing coverage.
    (b) Agent for service. Every NVOCC not in the United States shall
state the name and address of the person in the United States designated
under part 515 of this chapter as its legal agent for service of
process, including subpoenas. The NVOCC shall further state that in any
instance in which the designated legal agent cannot be served because of
death, disability or unavailability, the Commission's Secretary will be
deemed to be its legal agent for service of process.
    (c) Co-Loading. (1) NVOCCs shall address the following situations in
their tariffs:
    (i) If an NVOCC does not tender cargo for co-loading, this shall be
noted in its tariff.
    (ii) If two or more NVOCCs enter into an agreement which establishes
a carrier-to-carrier relationship for the co-loading of cargo, then the
existence of such agreement shall be noted in the tariff.
    (iii) If two NVOCCs enter into a co-loading arrangement which
results in a shipper-to-carrier relationship, the tendering NVOCC shall
describe its co-loading practices and specify its responsibility to pay
any charges for the transportation of the cargo. A shipper-to-carrier
relationship shall be presumed to exist where the receiving NVOCC issues
a bill of lading to the tendering NVOCC for carriage of the co-loaded
cargo.
    (2) Documentation requirements. An NVOCC which tenders cargo to
another NVOCC for co-loading, whether under a shipper-to-carrier or
carrier-to-carrier relationship, shall annotate each applicable bill of
lading with the identity of any other NVOCC to which the shipment has
been tendered for co-loading. Such annotation shall be shown on the face
of the bill of lading in a clear and legible manner.
    (3) Co-loading rates. No NVOCC may offer special co-loading rates
for the exclusive use of other NVOCCs. If cargo is accepted by an NVOCC
from another NVOCC which tenders that cargo in the capacity of a
shipper, it must be rated and carried under tariff provisions which are
available to all shippers.



Sec. 520.12  Time/Volume rates.

    (a) General. Common carriers or conferences may publish in their
tariffs rates which are conditioned upon the

[[Page 180]]

receipt of a specified aggregate volume of cargo or aggregate freight
revenue over a specified period of time.
    (b) Publication requirements. (1) All rates, charges,
classifications rules and practices concerning time/volume rates must be
set forth in the carrier's or conference's tariff.
    (2) The tariff shall identify:
    (i) The shipment records that will be maintained to support the
rate; and
    (ii) The method to be used by shippers giving notice of their
intention to use a time/volume rate prior to tendering any shipments
under the time/volume arrangement.
    (c) Accepted rates. Once a time/volume rate is accepted by one
shipper, it shall remain in effect for the time specified, without
amendment. If no shipper gives notice within 30 days of publication, the
time/volume rate may be canceled.
    (d) Records. Shipper notices and shipment records supporting a time/
volume rate shall be maintained by the offering carrier or conference
for at least 5 years after a shipper's use of a time/volume rate has
ended.
    (e) Liquidated damages. Time/volume rates may not impose or attempt
to impose liquidated damages on any shipper that moves cargo under the
rate. Carriers and agreements shall rerate cargo moved at the applicable
tariff rate, if a shipper fails to meet the requirements of the time/
volume offer.



Sec. 520.13  Exemptions and exceptions.

    (a) General. Exemptions from the requirements of this part are
governed by section 16 of the Act (46 U.S.C. 40103) and Rule 67 of the
Commission's Rules of Practice and Procedure, Sec. 502.67 of this
chapter.
    (b) Services. The following services are exempt from the
requirements of this part:
    (1) Equipment interchange agreements. Equipment-interchange
agreements between common carriers subject to this part and inland
carriers, where such agreements are not referred to in the carriers'
tariffs and do not affect the tariff rates, charges or practices of the
carriers.
    (2) Controlled carriers in foreign commerce. A controlled common
carrier shall be exempt from the provisions of this part exclusively
applicable to controlled carriers when:
    (i) The vessels of the controlling state are entitled by a treaty of
the United States to receive national or most-favored-nation treatment;
or
    (ii) The controlled carrier operates in a trade served exclusively
by controlled carriers.
    (3) Terminal barge operators in Pacific Slope states. Transportation
provided by terminal barge operators in Pacific Slope states barging
containers and containerized cargo by barge between points in the United
States are exempt from the tariff publication requirements of Act and
the rules of this part, where:
    (i) The cargo is moving between a point in a foreign country or a
non-contiguous State, territory, or possession and a point in the United
States;
    (ii) The transportation by barge between points in the United States
is furnished by a terminal operator as a service substitute in lieu of a
direct vessel call by the common carrier by water transporting the
containers or containerized cargo under a through bill of lading; and
    (iii) Such terminal operator is a Pacific Slope state, municipality,
or other public body or agency subject to the jurisdiction of the
Commission, and the only one furnishing the particular circumscribed
barge service in question as of January 2, 1975.
    (c) Cargo types. The following cargo types are not subject to the
requirements of this part:
    (1) Bulk cargo, forest products, etc. This part does not apply to
bulk cargo, forest products, recycled metal scrap, new assembled motor
vehicles, waste paper and paper waste. Carriers or conferences which
voluntarily publish tariff provisions covering otherwise exempt
transportation thereby subject themselves to the requirements of this
part, including the requirement to adhere to the tariff provisions.
    (2) Mail in foreign commerce. Transportation of mail between the
United States and foreign countries.
    (3) Used military household goods. Transportation of used military
household goods and personal effects by ocean transportation
intermediaries.

[[Page 181]]

    (4) Department of Defense cargo. Transportation of U.S. Department
of Defense cargo moving in foreign commerce under terms and conditions
negotiated and approved by the Military Transportation Management
Command (``MTMC'') and published in a universal service contract. An
exact copy of the universal service contract, including any amendments
thereto, shall be filed in paper format with the Commission as soon as
it becomes available.
    (5) Used household goods--General Services Administration.
Transportation of used household goods and personal effects by ocean
transportation intermediaries shipped for federal civilian executive
agencies under the International Household Goods Program administered by
the General Services Administration.
    (d) Services involving foreign countries. The following
transportation services involving foreign countries are not subject to
the requirements of this part:
    (1) Between foreign countries. This part does not apply to
transportation of cargo between foreign countries, including that which
is transshipped from one ocean common carrier to another (or between
vessels of the same common carrier) at a U.S. port or transferred
between an ocean common carrier and another transportation mode at a
U.S. port for overland carriage through the United States, where the
ocean common carrier accepts custody of the cargo in a foreign country
and issues a through bill of lading covering its transportation to a
foreign point of destination.
    (2) Between Canada and U.S. The following services are exempt from
the filing requirements of the Act and the rules of this part:
    (i) Prince Rupert and Alaska. (A) Vehicles. Transportation by
vessels operated by the State of Alaska between Prince Rupert, Canada
and ports in southeastern Alaska, if all the following conditions are
met:
    (1) Carriage of property is limited to vehicles;
    (2) Tolls levied for vehicles are based solely on space utilized
rather than the weight or contents of the vehicle and are the same
whether the vehicle is loaded or empty;
    (3) The vessel operator does not move the vehicles on or off the
ship; and
    (4) The common carrier does not participate in any joint rate
establishing through routes or in any other type of agreement with any
other common carrier.
    (B) Passengers. Transportation of passengers, commercial buses
carrying passengers, personal vehicles and personal effects by vessels
operated by the State of Alaska between Seattle, Washington and Prince
Rupert, Canada, only if such vehicles and personal effects are the
accompanying personal property of the passengers and are not transported
for the purpose of sale.
    (ii) British Columbia and Puget Sound Ports; rail cars--(A) Through
rates. Transportation by water of cargo moving in rail cars between
British Columbia, Canada and United States ports on Puget Sound, and
between British Columbia, Canada and ports or points in Alaska, only if
the cargo does not originate in or is not destined to foreign countries
other than Canada, but only if:
    (1) The through rates are filed with the Surface Transportation
Board and/or the Canadian Transport Commission; and
    (2) Certified copies of the rate divisions and of all agreements,
arrangements or concurrences, entered into in connection with the
transportation of such cargo, are filed with the Commission within 30
days of the effectiveness of such rate divisions, agreements,
arrangements or concurrences.
    (B) Bulk; port-to-port. Transportation by water of cargo moving in
bulk without mark or count in rail cars on a local port-to-port rate
basis between ports in British Columbia, Canada and United States ports
on Puget Sound, only if the rates charged for any particular bulk type
commodity on any one sailing are identical for all shippers, except
that:
    (1) This exemption shall not apply to cargo originating in or
destined to foreign countries other than Canada; and
    (2) The carrier will remain subject to all other provisions of the
Act.
    (iii) Incan Superior, Ltd. Transportation by Incan Superior, Ltd. of
cargo

[[Page 182]]

moving in railroad cars between Thunder Bay, Ontario, and Superior,
Wisconsin, only if the cargo does not originate in or is not destined to
foreign countries other than Canada, and if:
    (A) The through rates are filed with the Surface Transportation
Board and/or the Canadian Transport Commission; and
    (B) Certified copies of the rate divisions and all agreements,
arrangements or concurrences entered into in connection with the
transportation of such cargo are filed with the Commission within 30
days of the effectiveness of such rate divisions, agreements,
arrangements or concurrences.
    (e) NVOCC Negotiated Rate Arrangements. An NVOCC that satisfies the
requirements of part 532 of this chapter is exempt from the requirement
in this part that it include rates in a tariff open to public inspection
in an automated tariff system.

[64 FR 11225, Mar. 8, 1999, as amended at 74 FR 50722, Oct. 1, 2009; 76
FR 11360, Mar. 2, 2011; 78 FR 42888, July 18, 2013]



Sec. 520.14  Special permission.

    (a) General. Section 8(d) of the Act (46 U.S.C. 40501(e)) authorizes
the Commission, in its discretion and for good cause shown, to permit
increases or decreases in rates, or the issuance of new or initial
rates, on less than the statutory notice. Section 9(c) of the Act (46
U.S.C. 40703, 40704(a)) authorizes the Commission to permit a controlled
carrier's rates, charges, classifications, rules or regulations to
become effective on less than 30 days' notice. The Commission may also
in its discretion and for good cause shown, permit departures from the
requirements of this part.
    (b) Clerical errors. Typographical and/or clerical errors constitute
good cause for the exercise of special permission authority but every
application based thereon must plainly specify the error and present
clear evidence of its existence, together with a full statement of the
attending circumstances, and shall be submitted with reasonable
promptness after publishing the defective tariff material.
    (c) Application. (1) Applications for special permission to
establish rate increases or decreases on less than statutory notice or
for waiver of the provisions of this part, shall be made by the common
carrier, conference or agent for publishing. Every such application
shall be submitted to the Bureau of Trade Analysis and be accompanied by
a filing fee of $195.
    (2) Applications for special permission shall be made only by
letter, except that in emergency situations, application may be made by
telephone or facsimile if the communication is promptly followed by a
letter and the filing fee.
    (3) Applications for special permission shall contain the following
information:
    (i) Organization name, number and trade name of the conference or
carrier;
    (ii) Tariff number and title; and
    (iii) The rate, commodity, or rules related to the application, and
the special circumstances which the applicant believes constitute good
cause to depart from the requirements of this part or to warrant a
tariff change upon less than the statutory notice period.
    (d) Implementation. The authority granted by the Commission shall be
used in its entirety, including the prompt publishing of the material
for which permission was requested. Applicants shall use the special
case number assigned by the Commission with the symbol ``S''.

[64 FR 11225, Mar. 8, 1999, as amended at 67 FR 39860, June 11, 2002; 70
FR 10330, Mar. 3, 2005; 74 FR 50722, Oct. 1, 2009]



Sec. 520.91  OMB control number assigned pursuant to the Paperwork
Reduction Act.

    The Commission has received OMB approval for this collection of
information pursuant to the Paperwork Reduction Act of 1995, as amended.
In accordance with the Act, agencies are required to display a currently
valid control number. The valid control number for this collection of
information is 3072-0064.



       Sec. Appendix A to Part 520--Standard Terminology and Codes

                   I--Publishing/Amendment Type Codes
------------------------------------------------------------------------
             Code                              Definition
------------------------------------------------------------------------
A............................  Increase.

[[Page 183]]


C............................  Change resulting in neither increase nor
                                decrease in rate or charges.
E............................  Expiration (also use ``A'' if the
                                deletion results in the application of a
                                higher ``cargo, n.o.s.'' or similar
                                rate).
I............................  New or initial matter.
K............................  Rate or change filed by a controlled
                                common carrier member of a conference
                                under independent action.
M............................  Transportation of U.S. Department of
                                Defense cargo by American-flag common
                                carriers.
P............................  Addition of a port or point.
R............................  Reduction.
S............................  Special Case matter filed pursuant to
                                Special Permission, Special Docket or
                                other Commission direction, including
                                filing of tariff data after suspension,
                                such as for controlled carriers.
                                Requires ``Special Case Number.''
T............................  Terminal Rates, charges or provisions or
                                canal tolls over which the carrier has
                                no control.
W............................  Withdrawal of an erroneous publication on
                                the same publication date.
X............................  Exemption for controlled carrier data in
                                trades served exclusively by controlled
                                carriers or by controlled carriers of
                                states receiving most-favored-nation
                                treatment.
------------------------------------------------------------------------


                             II--Unit Codes
A. Weight Units:
  Kilograms..................................  KGS
  1000 Kgs (Metric Ton)......................  KT
  Pounds.....................................  LBS
  Long Ton (2240 LBS)........................  LT
  Short Ton (2000 LBS).......................  ST
B. Volume Units:
  Cubic meter................................  CBM
  Cubic feet.................................  CFT
C. Length Units:
  Centimeters................................  CM
  Feet.......................................  FT
  Inches.....................................  IN
  Meters.....................................  M
D. Measure Board Feet:
  Thousand Board Feet........................  MBF
E. Distance Units:
  Kilometers.................................  KM
  Miles......................................  MI
F. Rate Basis:
  Ad Valorem.................................  AV
  Each.......................................  EA
  Lump Sum...................................  LS
  Measure....................................  M
  Thousand Board Feet........................  MBF
  Per Container..............................  PC
  Weight.....................................  W
  Weight/Measure.............................  WM
G. Container Size Codes:
  Not Applicable.............................  N/A
  Less Than Load.............................  LTL
  10 FT Any Height...........................  10X
  20 FT 8[foot]6..................  20
  20 FT 9[foot]0 High Cube........  20A
  20 FT 9[foot]6 High Cube........  20B
  20 FT 8[foot]0..................  20S
  20 FT Any Height...........................  20X
  24 FT 8[foot]6..................  24
  24 FT 9[foot]0 High Cube........  24A
  24 FT 9[foot]6 High Cube........  24B
  24 FT 8[foot]0..................  24S
  24 FT Any Height...........................  24X
  35 FT 8[foot]6..................  35
  35 FT 9[foot]0 High Cube........  35A
  35 FT 9[foot]6 High Cube........  35B
  35 FT 8[foot]0..................  35S
  35 FT Any Height...........................  35X
  40 FT 8[foot]6..................  40
  40 FT 9[foot]0 High Cube........  40A
  40 FT 9[foot]6 High Cube........  40B
  40 FT 8[foot]0..................  40S
  40 FT Any Height...........................  40X
  42 FT 8[foot]6..................  42
  42 FT 9[foot]0 High Cube........  42A
  42 FT 9[foot]6 High Cube........  42B
  42 FT 8[foot]0..................  42S
  42 FT Any Height...........................  42X
  43 FT 8[foot]6..................  43
  43 FT 9[foot]0 High Cube........  43A
  43 FT 9[foot]6 High Cube........  43B
  43 FT 8[foot]0..................  43S
  43 FT Any Height...........................  43X
  45 FT 8[foot]6..................  45
  45 FT 9[foot]0 High Cube........  45A
  45 FT 9[foot]6 High Cube........  45B
  45 FT 8[foot]0..................  45S
  45 FT Any Height...........................  45X
  48 FT 8[foot]6..................  48
  48 FT 9[foot]0 High Cube........  48A
  48 FT 9[foot]6 High Cube........  48B
  48 FT 8[foot]0..................  48S
  48 FT Any Height...........................  48X
  53 FT 8[foot]6..................  53
  53 FT 9[foot]0 High Cube........  53A
  53 FT 9[foot]6 High Cube........  53B
  53 FT 8[foot]0..................  53S
  53 FT Any Height...........................  53X
H. Container Type Codes:
  Not Applicable.............................  N/A
  Atmosphere Control.........................  AC
  Collapsible Flatrack.......................  CF
  Drop Frame.................................  DF
  Flat Bed...................................  FB
  Flat Rack..................................  FR
  Garment Container..........................  GC
  Half-Height................................  HH
  Hardtop....................................  HT
  Insulated..................................  IN
  Open Top...................................  OT
  Dry........................................  PC
  Platform...................................  PL
  Reefer.....................................  RE
  Tank.......................................  TC
  Top Loader.................................  TL
  Trailer....................................  TR
  Vehicle Racks..............................  VR
I. Container Temperature Codes:
  Not Appl/Operating.........................  N/A
  Artificial Atmo Ctrl.......................  AC
  Chilled....................................  CLD
  Frozen.....................................  FRZ
  Heated.....................................  HTD
  Refrigerated...............................  RE
  Ventilated.................................  VEN
J. Packaging Codes:
  Bag........................................  BAG
  Bale.......................................  BAL
  Bar........................................  BAR
  Barrel.....................................  BBL
  Bundle.....................................  BDL
  Beam.......................................  BEM
  Bing Chest.................................  BIC
  Bin........................................  BIN
  Bulk.......................................  BLK
  Bobbin.....................................  BOB

[[Page 184]]


  Box........................................  BOX
  Barge......................................  BRG
  Basket/Hamper..............................  BSK
  Bushel.....................................  BUS
  Box, with Inner Cntn.......................  BXI
  Bucket.....................................  BXT
  Cabinet....................................  CAB
  Cage.......................................  CAG
  Can........................................  CAN
  Carrier....................................  CAR
  Case.......................................  CAS
  Cntnrs of Bulk Cargo.......................  CBC
  Carboy.....................................  CBY
  Can Case...................................  CCS
  Cheeses....................................  CHE
  Core.......................................  COR
  Cradle.....................................  CRD
  Crate......................................  CRT
  Cask.......................................  CSK
  Carton.....................................  CTN
  Cylinder...................................  CYL
  Dry Bulk...................................  DBK
  Double-length Rack.........................  DRK
  Drum.......................................  DRM
  Double-length Skid.........................  DSK
  Double-length..............................  DTB
  Firkin.....................................  FIR
  Flo-Bin....................................  FLO
  Frame......................................  FRM
  Flask......................................  FSK
  Forward Reel...............................  FWR
  Garment on Hanger..........................  GOH
  Heads of Beef..............................  HED
  Hogshead...................................  HGH
  Hopper Car.................................  HPC
  Hopper Truck...............................  HPT
  On Hanger/Rack in bx.......................  HRB
  Half-Standard Rack.........................  HRK
  Half-Stand. Tote Bin.......................  HTB
  Jar........................................  JAR
  Keg........................................  KEG
  Kit........................................  KIT
  Knockdown Rack.............................  KRK
  Knockdown Wood Crates......................  KWC
  Knockdown Tote Bin.........................  KTB
  Liquid Bulk................................  LBK
  Lifts......................................  LIF
  Log........................................  LOG
  Loose......................................  LSE
  Lug........................................  LUG
  Lift Van...................................  LVN
  Multi-roll Pak.............................  MRP
  Noil.......................................  NOL
  Nested.....................................  NST
  Pail.......................................  PAL
  Packed--NOS................................  PCK
  Pieces.....................................  PCS
  Pirns......................................  PIR
  Package....................................  PKG
  Platform...................................  PLF
  Pipe Line..................................  PLN
  Pallet.....................................  PLT
  Private Vehicle............................  POV
  Pipe Rack..................................  PRK
  Quarters of Beef...........................  QTR
  Rail (semiconductor).......................  RAL
  Rack.......................................  RCK
  Reel.......................................  REL
  Roll.......................................  ROL
  Reverse Reel...............................  RVR
  Sack.......................................  SAK
  Shook......................................  SHK
  Sides of Beef..............................  SID
  Skid.......................................  SKD
  Skid, Elev, Lift Trk.......................  SKE
  Sleeve.....................................  SLV
  Spin Cylinders.............................  SPI
  Spool......................................  SPL
  Tube.......................................  TBE
  Tote Bin...................................  TBN
  Tank Car Rail..............................  TKR
  Tank Truck.................................  TKT
  Intermdl Trlr/Cntnr........................  TLD
  Tank.......................................  TNK
  Tierce.....................................  TRC
  Trunk and Chest............................  TRK
  Tray.......................................  TRY
  Trunk, Salesmen Samp.......................  TSS
  Tub........................................  TUB
  Unpacked...................................  UNP
  Unit.......................................  UNT
  Vehicles...................................  VEH
  Van Pack...................................  VPK
  On Own Wheels..............................  WHE
  Wheeled Carrier............................  WLC
  Wood Crates................................  WC
  Wrapped....................................  WRP
  Not Applicable.............................  N/A
K. Shipment Stowage Location Codes:
  Not Applicable.............................  N/A
  On Deck....................................  OD
  Bottom Stowage.............................  BS
L. Hazard Codes:
  Not Applicable.............................  N/A
  IMD Stow Category A........................  A
  IMD Stow Category B........................  B
  IMD Stow Category C........................  C
  IMD Stow Category D........................  D
  IMD Stow Category E........................  E
  Hazardous..................................  HAZ
  Non-Hazardous..............................  NHZ
M. Stuffing/Stripping Modes:
  Not Applicable.............................  N/A
  Mechanical.................................  MECH
  Hand Loading...............................  HAND
N. Inland Transportation Modes:
  Not Applicable.............................  N/A
  Motor......................................  M
  Rail.......................................  R
  Barge......................................  B
  Motor/Rail.................................  MR
  Rail/Motor.................................  RM
  Motor/Barge................................  MB
  Barge/Motor................................  BM
  Rail/Barge.................................  RB
  Barge/Rail.................................  BR
O. Shipment Service Types:
  Barge......................................  B
  Door.......................................  D
  House......................................  H
  Motor......................................  M
  Ocean Port.................................  O
  Pier.......................................  P
  Rail Yard..................................  R
  Container Station..........................  S
  Terminal...................................  T
  Container Yard.............................  Y
  Rail Siding................................  U
  Team Tracks................................  X
P. Freight Forwarder/Broker Type Codes:
  Not Applicable.............................  N/A
  Freight Forwarder..........................  FF
  Customs House Broker.......................  CB
  Other......................................  OTH
Q. Tariff Type Codes:
  Bill of Lading Tariff......................  BL
  Equipment Interchange Agreement Tariff.....  EI
  Essential Terms Publication................  ET

[[Page 185]]


  Foreign Commodity Tariff...................  FC
  Foreign Rules Tariff.......................  FR
  Terminal Tariff............................  TM
  Service Contracts..........................  SC
------------------------------------------------------------------------



PART 525_MARINE TERMINAL OPERATOR SCHEDULES--Table of Contents



Sec.
525.1 Purpose and scope.
525.2 Terminal schedules.
525.3 Availability of marine terminal operator schedules.
525.4 OMB Control number assigned pursuant to the Paperwork Reduction
          Act.

    Authority: 46 U.S.C. 40102, 40501, 41101-41106.

    Source: 64 FR 9283, Feb. 25, 1999, unless otherwise noted.



Sec. 525.1  Purpose and scope.

    (a) Purpose. This part implements the Shipping Act of 1984, as
amended by the Ocean Shipping Reform Act of 1998 and the Coast Guard
Authorization Act of 1998. The form and manner requirements of this part
are necessary to enable the Commission to meet its responsibilities with
regard to identifying and preventing unreasonable preference or
prejudice and unjust discrimination pursuant to section 10 of the Act
(46 U.S.C. 41101-41106).
    (b) Scope. This part sets forth the regulations for the publication
of terminal schedules by marine terminal operators. Information made
available under this part may be used to determine marine terminal
operators' compliance with shipping statutes and regulations.
    (c) Definitions. The following definitions apply to the regulations
of this part:
    (1) Act means the Shipping Act of 1984, as amended by the Ocean
Shipping Reform Act of 1998 and the Coast Guard Authorization Act of
1998.
    (2) Bulk cargo means cargo that is loaded and carried in bulk
without mark or count, in a loose unpackaged form, having homogenous
characteristics. Bulk cargo loaded into intermodal equipment, except
LASH or Seabee barges, is subject to mark and count and is, therefore,
subject to the requirements of this part.
    (3) Checking means the service of counting and checking cargo
against appropriate documents for the account of the cargo or the
vessel, or other person requesting same.
    (4) Commission means the Federal Maritime Commission.
    (5) Dockage means the charge assessed against a vessel for berthing
at a wharf, pier, bulkhead structure, or bank or for mooring to a vessel
so berthed.
    (6) Effective date means the date a schedule or an element of a
schedule becomes effective. Where there are multiple publications on the
same day, the last schedule or element of a schedule published with the
same effective date is the one effective for that day.
    (7) Expiration date means the last day, after which the entire
schedule or a single element of the schedule, is no longer in effect.
    (8) Forest products means forest products including, but not limited
to, lumber in bundles, rough timber, ties, poles, piling, laminated
beams, bundled siding, bundled plywood, bundled core stock or veneers,
bundled particle or fiber boards, bundled hardwood, wood pulp in rolls,
wood pulp in unitized bales, paper and paper board in rolls or in pallet
or skid-sized sheets, liquid or granular by-products derived from
pulping and papermaking, and engineering wood products.
    (9) Free time means the period specified in the terminal schedule
during which cargo may occupy space assigned to it on terminal property,
including off-dock facilities, free of wharf demurrage or terminal
storage charges immediately prior to the loading or subsequent to the
discharge of such cargo on or off the vessel.
    (10) Handling means the service of physically moving cargo between
point of rest and any place on the terminal facility, other than the end
of ship's tackle.
    (11) Heavy lift means the service of providing heavy lift cranes and
equipment for lifting cargo.
    (12) Loading and unloading means the service of loading or unloading
cargo between any place on the terminal and railroad cars, trucks,
lighters or barges or any other means of conveyance to or from the
terminal facility.
    (13) Marine terminal operator means a person engaged in the United
States or

[[Page 186]]

a commonwealth, territory, or possession thereof, in the business of
furnishing wharfage, dock, warehouse or other terminal facilities in
connection with a common carrier, or in connection with a common carrier
and a water carrier subject to Subchapter II of Chapter 135 of Title 49,
United States Code. A marine terminal operator includes, but is not
limited to, terminals owned or operated by states and their political
subdivisions; railroads who perform port terminal services not covered
by their line haul rates; common carriers who perform port terminal
services; and warehousemen who operate port terminal facilities. For the
purposes of this part, marine terminal operator includes conferences of
marine terminal operators.
    (14) Organization name means an entity's name on file with the
Commission and for which the Commission assigns an organizational
number.
    (15) Person includes individuals, firms, partnerships, associations,
companies, corporations, joint stock associations, trustees, receivers,
agents, assignees and personal representatives.
    (16) Rate means a price quoted in a schedule for providing a
specified level of marine terminal service or facility for a stated
cargo quantity, on and after a stated effective date or within a defined
time frame.
    (17) Schedule means a publication containing the actual rates,
charges, classifications, regulations and practices of a marine terminal
operator. The term ``practices'' refers to those usages, customs or
modes of operation which in any way affect, determine or change the
rates, charges or services provided by a marine terminal operator.
    (18) Terminal facilities means one or more structures comprising a
terminal unit, which include, but are not limited to, wharves,
warehouses, covered and/or open storage spaces, cold storage plants,
cranes, grain elevators and/or bulk cargo loading and/or unloading
structures, landings, and receiving stations, used for the transmission,
care and convenience of cargo and/or passengers in the interchange of
same between land and water carriers or between two water carriers.
    (19) Terminal services includes checking, dockage, free time,
handling, heavy lift, loading and unloading, terminal storage, usage,
wharfage, and wharf demurrage, as defined in this section. The
definitions of terminal services set forth in this section shall be set
forth in terminal schedules, except that other definitions of terminal
services may be used if they are correlated by footnote, or other
appropriate method, to the definitions set forth herein. Any additional
services which are offered shall be listed and charges therefor shall be
shown in the terminal schedule.
    (20) Terminal storage means the service of providing warehouse or
other terminal facilities for the storage of inbound or outbound cargo
after the expiration of free time, including wharf storage, shipside
storage, closed or covered storage, open or ground storage, bonded
storage and refrigerated storage.
    (21) Usage means the use of a terminal facility by any rail carrier,
lighter operator, trucker, shipper or consignee, its agents, servants,
and/or employees, when it performs its own car, lighter or truck loading
or unloading, or the use of said facilities for any other gainful
purpose for which a charge is not otherwise specified.
    (22) Wharf demurrage means a charge assessed against cargo remaining
in or on terminal facilities after the expiration of free time, unless
arrangements have been made for storage.
    (23) Wharfage means a charge assessed against the cargo or vessel on
all cargo passing or conveyed over, onto, or under wharves or between
vessels (to or from barge, lighter, or water), when berthed at wharf or
when moored in slip adjacent to a wharf. Wharfage is solely the charge
for use of a wharf and does not include charges for any other service.

[64 FR 9283, Feb. 25, 1999, as amended at 74 FR 50723, Oct. 1, 2009]



Sec. 525.2  Terminal schedules.

    (a) Marine terminal operator schedules. A marine terminal operator,
at its discretion, may make available to the public, subject to section
10(d) of the Act (46 U.S.C. 41102(c), 41103, 41106), a

[[Page 187]]

schedule of its rates, regulations, and practices.
    (1) Limitations of liability. Any limitations of liability for cargo
loss or damage pertaining to receiving, delivering, handling, or storing
property at the marine terminal contained in a terminal schedule must be
consistent with domestic law and international conventions and
agreements adopted by the United States; such terminal schedules cannot
contain provisions that exculpate or relieve marine terminal operators
from liability for their own negligence, or that impose upon others the
obligation to indemnify or hold-harmless the terminals from liability
for their own negligence.
    (2) Enforcement of terminal schedules. Any schedule that is made
available to the public by the marine terminal operator shall be
enforceable by an appropriate court as an implied contract between the
marine terminal operator and the party receiving the services rendered
by the marine terminal operator, without proof that such party has
actual knowledge of the provisions of the applicable terminal schedule.
    (3) Contracts for terminal services. If the marine terminal operator
has an actual contract with a party covering the services rendered by
the marine terminal operator to that party, an existing terminal
schedule covering those same services shall not be enforceable as an
implied contract.
    (b) Cargo types not subject to this part. (1) Except as set forth in
paragraph (b)(2) of this section, this part does not apply to bulk
cargo, forest products, recycled metal scrap, new assembled motor
vehicles, waste paper and paper waste in terminal schedules.
    (2) Marine terminal operators which voluntarily make available
terminal schedules covering any of the commodities identified in
paragraph (b)(1) of this section thereby subject their services with
respect to those commodities to the requirements of this part.
    (c) Marine terminal operator agreements. The regulations relating to
agreements to which a marine terminal operator is a party are located at
part 535 of this chapter.

[64 FR 9283, Feb. 25, 1999, as amended at 74 FR 50723, Oct. 1, 2009]



Sec. 525.3  Availability of marine terminal operator schedules.

    (a) Availability of terminal schedules--(1) Availability to the
Commission. A complete and current set of terminal schedules used by a
marine terminal operator, or to which it is a party, shall be maintained
in its office(s) for a period of five (5) years, whether or not made
available to the public, and shall promptly be made available to the
Commission upon request.
    (2) Availability to the public. Any terminal schedule that is made
available to the public shall be available during normal business hours
and in electronic form. The public may be assessed a reasonable
nondiscriminatory charge for access to the terminal schedules; no charge
will be assessed against the Commission.
    (b) Access to electronically published schedules. Marine terminal
operators shall provide access to their terminal schedules via a
personal computer (PC) by:
    (1) Dial-up connection via public switched telephone networks
(PSTN); or
    (2) The Internet (Web) by:
    (i) Web browser; or
    (ii) Telnet session.
    (c) Dial-up connection via PSTN. (1) This connection option requires
that terminal schedules provide:
    (i) A minimum of a 14.4Kbps modem capable of receiving incoming
calls,
    (ii) Smart terminal capability for VT-100 terminal or terminal
emulation access, and
    (iii) Telephone line(s) quality for data transmission.
    (2) The modem may be included in a collection (bank) of modems as
long as all modems in the bank meet the minimum speed. Smart terminal
emulation provides for features such as bold, blinking, underlining and
positioning to specific locations on the display screen.
    (d) Internet connection. (1) This connection option requires that
systems provide:
    (i) A universal resource locator (URL) Internet address (e.g.,
http://www.tariffsrus.com or http://1.2.3.4), and/or
    (ii) A universal resource locator (URL) Internet address (e.g.,
telnet://

[[Page 188]]

tariffsrus or telnet://1.2.3.4), for Telnet session access over the
Internet.
    (2) Marine terminal operators shall ensure that their Internet
service providers shall provide static Internet addresses.
    (e) Commission access. Commission telecommunications access to
systems must include connectivity via a dial-up connection over public
switched telephone networks (PSTN) or a connection over the Internet.
Connectivity will be provided at the expense of the publishers. Any
recurring connection fees, hardware rental fees, usage fees or any other
charges associated with the availability of the system are the
responsibility of the publisher. The Commission shall only be
responsible for the long-haul charges for PSTN calls to a terminal
schedule initiated by the Commission.
    (f) Notification. Each marine terminal operator shall notify the
Commission's Bureau of Tariffs, Certification and Licensing (``BTCL''),
prior to the commencement of marine terminal operations, of its
organization name, organization number, home office address, name and
telephone number of firm's representative, the location of its terminal
schedule(s), and the publisher, if any, used to maintain its terminal
schedule, by electronically submitting Form FMC-1 via the Commission's
website at www.fmc.gov. Any changes to the above information shall be
immediately transmitted to BTCL. The Commission will publish a list on
its website of the location of any terminal schedule made available to
the public.
    (g) Form and manner. Each terminal schedule made available by a
marine terminal operator shall contain an individual identification
number, effective date, expiration date, if any, and the complete
terminal schedule in full text and/or data format showing all its rates,
charges, and regulations relating to or connected with the receiving,
handling, storing, and/or delivering of property at its terminal
facilities.



Sec. 525.4  OMB control number assigned pursuant to the Paperwork
Reduction Act.

    The Commission has received Office of Management and Budget approval
for this collection of information pursuant to the Paperwork Reduction
Act of 1995, as amended. In accordance with that Act, agencies are
required to display a currently valid control number. In this regard,
the valid control number for this collection of information is 3072-
0061.



PART 530_SERVICE CONTRACTS--Table of Contents



                      Subpart A_General Provisions

Sec.
530.1 Purpose.
530.2 Scope and applicability.
530.3 Definitions.
530.4 Confidentiality.
530.5 Duty to file.
530.6 Certification of shipper status.
530.7 Duty to labor organizations.

                      Subpart B_Filing Requirements

530.8 Service contracts.
530.9 Notices.
530.10 Amendment, correction, cancellation, and electronic transmission
          errors.
530.11 [Reserved]

                Subpart C_Publication of Essential Terms

530.12 Publication.

                 Subpart D_Exceptions and Implementation

530.13 Exceptions and exemptions.
530.14 Implementation.

                    Subpart E_Recordkeeping and Audit

530.15 Recordkeeping and audit.
530.91 OMB control numbers assigned pursuant to the Paperwork Reduction
          Act.

Appendix A to Part 530--Instructions for the Filing of Service Contracts
Exhibit 1 to Part 530--Service Contract Registration [Form FMC-83]

    Authority: 5 U.S.C. 553; 46 U.S.C. 305, 40301-40306, 40501-40503,
41307.

    Source: 64 FR 11206, Mar. 8, 1999, unless otherwise noted.



                      Subpart A_General Provisions



Sec. 530.1  Purpose.

    The purpose of this part is to facilitate the filing of service
contracts and the publication of certain essential terms of those
service contracts as required by section 8(c) of the Shipping Act of
1984 (``the Act'') (46 U.S.C. 40502). This part enables the Commission
to

[[Page 189]]

review service contracts to ensure that these contracts and the parties
to them comport with the requirements of the Act. This part also
implements electronic filing provisions for service contracts to
facilitate compliance and minimize the filing burdens on the oceanborne
commerce of the United States.

[64 FR 11206, Mar. 8, 1999, as amended at 74 FR 50723, Oct. 1, 2009]



Sec. 530.2  Scope and applicability.

    An individual ocean common carrier or an agreement between or among
ocean common carriers may enter into a service contract with one or more
shippers subject to the requirements of the Act.



Sec. 530.3  Definitions.

    When used in this part:
    (a) Act means the Shipping Act of 1984 as amended by the Ocean
Shipping Reform Act of 1998.
    (b) Agreement means an understanding, arrangement, or association
(written or oral) and any modification or cancellation thereof which has
been filed and effective under part 535 of this chapter with the
Commission. The term does not include a maritime labor agreement.
    (c) Authorized person means a carrier or a duly appointed agent who
is authorized to file service contracts on behalf of the carrier party
to a service contract and to publish the corresponding statement of
essential terms and is registered by the Commission to file under Sec.
530.5(d) and appendix A to this part.
    (d) BTCL means the Commission's Bureau of Tariffs, Certification and
Licensing or its successor bureau.
    (e) Commission means the Federal Maritime Commission.
    (f) Common carrier means a person holding itself out to the general
public to provide transportation by water of passengers or cargo between
the United States and a foreign country for compensation that:
    (1) Assumes responsibility for the transportation from the port or
point of receipt to the port or point of destination; and
    (2) Utilizes, for all or part of that transportation, a vessel
operating on the high seas or the Great Lakes between a port in the
United States and a port in a foreign country, except that the term does
not include a common carrier engaged in ocean transportation by ferry
boat, ocean tramp, or chemical parcel tanker, or by a vessel when
primarily engaged in the carriage of perishable agricultural
commodities:
    (i) If the common carrier and the owner of those commodities are
wholly owned, directly or indirectly, by a person primarily engaged in
the marketing and distribution of those commodities and
    (ii) Only with respect to those commodities.
    (g) Conference means an agreement between or among two or more ocean
common carriers which provides for the fixing of and adherence to
uniform rates, charges, practices and conditions of service relating to
the receipt, carriage, handling and/or delivery of passengers or cargo
for all members. The term does not include joint service, pooling,
sailing, space charter, or transshipment agreements.
    (h) Controlled carrier means an ocean common carrier that is, or
whose operating assets are, directly or indirectly owned or controlled
by a government. Ownership or control by a government shall be deemed to
exist with respect to any ocean common carrier if:
    (1) A majority portion of the interest in the carrier is owned or
controlled in any manner by that government, by any agency thereof, or
by any public or private person controlled by that government; or
    (2) That government has the right to appoint or disapprove the
appointment of a majority of the directors, the chief operating officer
or the chief executive officer of the carrier.
    (i) Effective date means the date upon which a service contract or
amendment is scheduled to go into effect by the parties to the contract.
A service contract or amendment becomes effective at 12:01 a.m. Eastern
Standard Time on the beginning of the effective date. The effective date
cannot be prior to the filing date of the service contract or amendment
with the Commission.
    (j) Expiration date means the last day after which the entire
service contract is no longer in effect.

[[Page 190]]

    (k) File or filing (of service contracts or amendments thereto)
means the use of the Commission's electronic filing system for receipt
of a service contract or an amendment thereto by the Commission,
consistent with the method set forth in appendix A of this part, and the
recording of its receipt by the Commission.
    (l) Labor agreement means a collective-bargaining agreement between
an employer subject to the Act, or group of such employers, and a labor
organization or an agreement preparatory to such a collective-bargaining
agreement among members of a multi-employer bargaining group, or an
agreement specifically implementing provisions of such a collective-
bargaining agreement or providing for the formation, financing, or
administration of a multi-employer bargaining group, but the term does
not include an assessment agreement.
    (m) Motor vehicle means a wheeled vehicle whose primary purpose is
ordinarily the non-commercial transportation of passengers, including an
automobile, pickup truck, minivan or sport utility vehicle.
    (n) Ocean common carrier means a common carrier that operates, for
all or part of its common carrier service, a vessel on the high seas or
the Great Lakes between a port in the United States and a port in a
foreign country, except that the term does not include a common carrier
engaged in ocean transportation by ferry boat, ocean tramp, or chemical
parcel-tanker.
    (o) OIRM means the Commission's Office of Information and Resources
Management.
    (p) Non-vessel-operating common carrier (``NVOCC'') means an ocean
transportation intermediary as defined by section 3(17)(B) of the Act
(46 U.S.C. 40102(16)).
    (q) Service contract means a written contract, other than a bill of
lading or receipt, between one or more shippers and an individual ocean
common carrier or an agreement between or among ocean common carriers in
which the shipper makes a commitment to provide a certain minimum
quantity or portion of its cargo or freight revenue over a fixed time
period, and the individual ocean common carrier or the agreement commits
to a certain rate or rate schedule and a defined service level, such as,
assured space, transit time, port rotation, or similar service features.
The contract may also specify provisions in the event of nonperformance
on the part of any party.
    (r) Shipper means a cargo owner; the person for whose account the
ocean transportation is provided; the person to whom delivery is to be
made; a shippers' association; or an NVOCC that accepts responsibility
for payment of all applicable charges under the service contract.
    (s) Statement of essential terms means a concise statement of the
essential terms of a service contract required to be published under
Sec. 530.12 of this part.

[64 FR 11206, Mar. 8, 1999, as amended at 64 FR 23792, May 4, 1999; 64
FR 41042, July 29, 1999; 65 FR 26513, May 8, 2000; 74 FR 50723, Oct. 1,
2009]



Sec. 530.4  Confidentiality.

    All service contracts and amendments to service contracts filed with
the Commission shall, to the full extent permitted by law, be held in
confidence. Nothing contained in this part shall preclude the Commission
from providing certain information from or access to service contracts
to another agency of the Federal government of the United States.



Sec. 530.5  Duty to file.

    (a) The duty under this part to file service contracts, amendments
and notices, and to publish statements of essential terms shall be upon
the individual carrier party or parties participating or eligible to
participate in the service contract.
    (b) Filing may be accomplished by any duly agreed-upon agent, as the
parties to the service contract may designate, and subject to conditions
as the parties may agree.
    (c) Registration--(1) Application. Authority to file or delegate the
authority to file must be requested by a responsible official of the
service contract carrier in writing by submitting to BTCL the
Registration Form (FMC-83) in Exhibit 1 to this part.
    (2) Approved registrations. OIT shall provide approved Registrants a
log-on

[[Page 191]]

ID and password for filing and amending service contracts and notify
Registrants of such approval.

[64 FR 11206, Mar. 8, 1999, as amended at 64 FR 41042, July 29, 1999; 76
FR 11680, Mar. 3, 2011]



Sec. 530.6  Certification of shipper status.

    (a) Certification. The shipper contract party shall sign and certify
on the signature page of the service contract its shipper status (e.g.,
owner of the cargo, shippers' association, NVOCC, or specified other
designation), and the status of every affiliate of such contract party
or member of a shippers' association entitled to receive service under
the contract.
    (b) Proof of tariff and financial responsibility. If the
certification completed by the contract party under paragraph (a) of
this section identifies the contract party or an affiliate or member of
a shippers' association as an NVOCC, the ocean common carrier,
conference or agreement shall obtain proof that such NVOCC has a
published tariff and proof of financial responsibility as required under
sections 8 (46 U.S.C. 40501-40503) and 19 (46 U.S.C. 40901-40904) of the
Act before signing the service contract. An ocean common carrier,
conference or agreement can obtain such proof by the same methods
prescribed in Sec. 515.27 of this chapter.
    (c) Joining shippers' association during term of contract. If an
NVOCC joins a shippers' association during the term of a service
contract and is thereby entitled to receive service under the contract,
the NVOCC shall provide to the ocean common carrier, agreement or
conference the proof of compliance required by paragraph (b) of this
section prior to making any shipments under the contract.
    (d) Reliance on NVOCC proof; independent knowledge. An ocean common
carrier, agreement or conference executing a service contract shall be
deemed to have complied with section 10(b)(12) of the Act (46 U.S.C.
41104(12)) upon meeting the requirements of paragraphs (a) and (b) of
this section, unless the carrier party had reason to know such
certification or documentation of NVOCC tariff and bonding was false.

[64 FR 11206, Mar. 8, 1999, as amended at 74 FR 50723, Oct. 1, 2009]



Sec. 530.7  Duty to labor organizations.

    (a) Terms. When used in this section, the following terms will have
these meanings:
    (1) Dock area and within the port area shall have the same meaning
and scope as defined in the applicable collective bargaining agreement.
    (2) Reasonable period of time ordinarily means:
    (i) If the cargo in question is due to arrive in less than five (5)
days from the date of receipt of the request as defined in paragraph (b)
of this section, two (2) days from the date of receipt of the request;
but
    (ii) If cargo in question is due to arrive in more than five (5)
days from the date of receipt of the request as defined in paragraph (b)
of this section, four (4) days from the date of receipt of the request.
    (3) Movement includes, but is not necessarily limited to, the normal
and usual aspects of the loading and discharging of cargo in containers;
placement, positioning and re-positioning of cargo or of containers; the
insertion and removal of cargo into and from containers; and the storage
and warehousing of cargo.
    (4) Assignment includes, but is not limited to, the carrier's direct
or indirect control over the parties which, the manner by which, or the
means by which the shipper's cargo is moved, regardless of whether such
movement is completed within or outside of containers.
    (5) Transmit means communication by first-class mail, facsimile,
telegram, hand-delivery, or electronic mail (``e-mail'').
    (b) Procedure. In response to a written request transmitted from a
labor organization with which it is a party or is subject to the
provisions of a collective bargaining agreement with a labor
organization, an ocean common carrier shall state, within a reasonable
period of time, whether it is responsible for the following work at dock
areas and within port areas in the United States

[[Page 192]]

with respect to cargo transported under a service contract:
    (1) The movement of the shipper's cargo on a dock area or within the
port area or to or from railroad cars on a dock area or within a port
area;
    (2) The assignment of intraport carriage of the shipper's cargo
between areas on a dock or within the port area;
    (3) The assignment of the carriage of the shipper's cargo between a
container yard on a dock area or within the port area and a rail yard
adjacent to such container yard; or
    (4) The assignment of container freight station work and maintenance
and repair work performed at a dock area or within the port area.
    (c) Applicability. This section requires the disclosure of
information by an ocean common carrier only if there exists an
applicable and otherwise lawful collective bargaining agreement which
pertains to that carrier.
    (d) Disclosure not deemed admission or agreement. No disclosure made
by an ocean common carrier shall be deemed to be an admission or
agreement that any work is covered by a collective bargaining agreement.
    (e) Dispute resolution. Any dispute regarding whether any work is
covered by a collective bargaining agreement and the responsibility of
the ocean common carrier under such agreement shall be resolved solely
in accordance with the dispute resolution procedures contained in the
collective bargaining agreement and the National Labor Relations Act,
and without reference to this section.
    (f) Jurisdiction and lawfulness. Nothing in this section has any
effect on the lawfulness or unlawfulness under the Shipping Act of 1984,
the National Labor Relations Act, the Taft-Hartley Act, the Federal
Trade Commission Act, the antitrust laws, or any other federal or state
law, or any revisions or amendments thereto, of any collective
bargaining agreement or element thereof, including any element that
constitutes an essential term of a service contract under section 8(c)
of the Act (46 U.S.C. 40502).

[64 FR 11206, Mar. 8, 1999, as amended at 74 FR 50723, Oct. 1, 2009]



                      Subpart B_Filing Requirements



Sec. 530.8  Service Contracts.

    (a) Authorized persons shall file with BTCL, in the manner set forth
in appendix A of this part, a true and complete copy of every service
contract or amendment to a filed service contract before any cargo moves
pursuant to that service contract or amendment.
    (b) Every service contract filed with the Commission shall include
the complete terms of the service contract including, but not limited
to, the following:
    (1) The origin port ranges in the case of port-to-port movements and
geographic areas in the case of through intermodal movements;
    (2) The destination port ranges in the case of port-to-port
movements and geographic areas in the case of through intermodal
movements;
    (3) The commodity or commodities involved;
    (4) The minimum volume or portion;
    (5) The service commitments;
    (6) The line-haul rate;
    (7) Liquidated damages for non-performance (if any);
    (8) Duration, including the
    (i) Effective date; and
    (ii) Expiration date;
    (9) The legal names and business addresses of the contract parties;
the legal names of affiliates entitled to access the contract; the
names, titles and addresses of the representatives signing the contract
for the parties; and the date upon which the service contract was
signed, except that in the case of a contract entered under the
authority of an agreement or by a shippers' association, individual
members need not be named unless the contract includes or excludes
specific members. Subsequent references in the contract to the contract
parties shall be consistent with the first reference (e.g., (exact
name), ``carrier,'' ``shipper,'' or ``association,'' etc.). Carrier
parties which enter into contracts that include affiliates must either:
    (i) List the affiliates' business addresses; or
    (ii) Certify that this information will be provided to the
Commission upon request within ten (10) business days of

[[Page 193]]

such request. However, the requirements of this section do not apply to
amendments to contracts that have been filed in accordance with the
requirements of this section unless the amendment adds new parties or
affiliates;
    (10) A certification of shipper status;
    (11) A description of the shipment records which will be maintained
to support the service contract and the address, telephone number, and
title of the person who will respond to a request by making shipment
records available to the Commission for inspection under Sec. 530.15 of
this part; and
    (12) All other provisions of the contract.
    (c) Certainty of terms. The terms described in paragraph (b) of this
section may not:
    (1) Be uncertain, vague or ambiguous; or
    (2) Make reference to terms not explicitly contained in the service
contract itself unless those terms are readily available to the parties
and the Commission.
    (3) Pursuant to Sec. 530.15(c), the carrier party to the service
contract must, upon written request by the Commission, provide the
Commission with the associated records of the referenced terms. For the
purpose of paragraph (c)(2) of this section, the referenced terms will
be deemed readily available to the Commission if the carrier party to
the service contract provides the Commission with the associated records
of the terms within thirty (30) days of the Commission's written
request.
    (d) Other requirements. Every service contract filed with BTCL shall
include, as set forth in appendix A to this part by:
    (1) A unique service contract number of more than one (1) but less
than ten (10) alphanumeric characters in length (``SC Number''); and
    (2) A consecutively numbered amendment number no more than three
digits in length, with initial service contracts using ``0''(``Amendment
number'');
    (3) The filed FMC Agreement Number(s) assigned by the Commission
under 46 CFR part 535 (if applicable); and
    (4) An indication of the method by which the statement of essential
terms will be published.
    (e) Exception in case of malfunction of Commission filing system.
(1) In the event that the Commission's filing systems are not
functioning and cannot receive service contract filings for twenty-four
(24) continuous hours or more, affected parties will not be subject to
the requirements of paragraph (a) of this section and Sec. 530.14(a)
that a service contract be filed before cargo is shipped under it.
    (2) However, service contracts which go into effect before they are
filed, pursuant to paragraph (e)(1) of this section, must be filed
within twenty-four (24) hours of the Commission's filing systems' return
to service.
    (3) Failure to file a service contract that goes into effect before
it is filed, pursuant to paragraph (e)(1) of this section, within
twenty-four (24) hours of the Commission's filing systems' return to
service will be considered a violation of Commission regulations.

[64 FR 11206, Mar. 8, 1999, as amended at 64 FR 23793, May 4, 1999; 64
FR 41042, July 29, 1999; 77 FR 13510, Mar. 7, 2012]



Sec. 530.9  Notices.

    Within thirty (30) days of the occurrence of any event listed below,
there shall be filed with the Commission, pursuant to the same
procedures as those followed for the filing of an amendment pursuant to
Sec. 530.10 and appendix A to this part, a detailed notice of:
    (a) Correction (clerical or administrative errors);
    (b) Cancellation (as defined in Sec. 530.10(a)(3));
    (c) Adjustment of accounts, by re-rating, liquidated damages, or
otherwise;
    (d) Final settlement of any account adjusted as described in
paragraph (c) of this section; and
    (e) Any change to:
    (1) The name of a basic contract party; or
    (2) The list of affiliates under Sec. 530.8(b)(9), including
changes to legal names and business addresses, of any contract party
entitled to receive or authorized to offer services under the contract.

[[Page 194]]



Sec. 530.10  Amendment, correction, cancellation, and electronic
transmission errors.

    (a) Terms. When used in this section, the following terms will have
these meanings:
    (1) Amendment means any change to a service contract which has
prospective effect and which is mutually agreed upon by the service
contract parties.
    (2) Correction means any change to a service contract which has
retroactive effect.
    (3) Cancellation means an event which is unanticipated by the
service contract, in liquidated damages or otherwise, and is due to the
failure of the shipper party to tender minimum cargo as set forth in the
contract, unless such tender was made impossible by an action of the
carrier party.
    (b) Amendment. Service contracts may be amended by mutual agreement
of the parties to the contract. Amendments shall be filed electronically
with the Commission in the manner set forth in Sec. 530.8 and appendix
A to this part.
    (1) Where feasible, service contracts should be amended by amending
only the affected specific term(s) or subterms.
    (2) Each time any part of a service contract is amended, the filer
shall assign a consecutive amendment number (up to three digits),
beginning with the number ``1.''
    (3) Each time any part of the service contract is amended, the
``Filing Date'' will be the date of filing of the amendment.
    (c) Corrections. Requests shall be filed, in duplicate, with the
Commission's Office of the Secretary within forty-five (45) days of the
contract's filing with the Commission, accompanied by remittance of a
$315 service fee, and shall include:
    (1) A letter of transmittal explaining the purpose of the
submission, and providing specific information to identify the initial
or amended service contract to be corrected;
    (2) A paper copy of the proposed correct terms. Corrections shall be
indicated as follows:
    (i) Matter being deleted shall be struck through; and
    (ii) Matter to be added shall immediately follow the language being
deleted and be underscored;
    (3) An affidavit from the filing party attesting with specificity to
the factual circumstances surrounding the clerical or administrative
error, with reference to any supporting documentation;
    (4) Documents supporting the clerical or administrative error; and
    (5) A brief statement from the other party to the contract
concurring in the request for correction.
    (6) If the request for correction is granted, the carrier, agreement
or conference shall file the corrected contract provisions using a
special case number as described in appendix A to this part.
    (d) Electronic transmission errors. An authorized person who
experiences a purely technical electronic transmission error or a data
conversion error in transmitting a service contract filing or an
amendment thereto is permitted to file a Corrected Transmission (``CT'')
of that filing within 48 hours of the date and time of receipt recorded
in SERVCON (excluding Saturdays, Sundays and legal public holidays).
This time-limited permission to correct an initial defective service
contract filing is not to be used to make changes in the original
service contract rates, terms or conditions that are otherwise provided
for in paragraphs 530.10(b) and (c) of this section. The CT tab box in
SERVCON must be checked at the time of resubmitting a previously filed
service contract, and a description of the corrections made must be
stated at the beginning of the corrected service contract in a comment
box. Failure to check the CT box and enter a description of the
correction will result in the rejection of a file with the same name,
since documents with duplicate file names or service contract and
amendment numbers are not accepted by SERVCON.
    (e) Cancellation. (1) An account may be adjusted for events and
damages covered by the service contract. This shall include adjustment
necessitated by either liability for liquidated damages appearing in the
service contract as filed with the Commission under Sec. 530.8(b)(7),
or the occurrence of an

[[Page 195]]

event described below in paragraph (d)(2) of this section.
    (2) In the event of cancellation as defined in Sec. 530.10(a)(3):
    (i) Further or continued implementation of the service contract is
prohibited; and
    (ii) The cargo previously carried under the contract shall be re-
rated according to the otherwise applicable tariff provisions.
    (f) If the amendment, correction or cancellation affects an
essential term required to be published under Sec. 530.12 of this part,
the statement of essential terms shall be changed as soon as possible
after the filing of the amendment to accurately reflect the change to
the contract terms.

[64 FR 11206, Mar. 8, 1999, as amended at 64 FR 23793, May 4, 1999; 67
FR 39860, June 11, 2002; 68 FR 43327, July 22, 2003; 70 FR 10330, Mar.
3, 2005]



Sec. 530.11  [Reserved]



                Subpart C_Publication of Essential Terms



Sec. 530.12  Publication.

    (a) Contents. All authorized persons who have a duty to file service
contracts under Sec. 530.5 are also required to make available to the
public, contemporaneously with the filing of each service contract with
the Commission, and in tariff format, a concise statement of the
following essential terms:
    (1) The port ranges:
    (i) Origin; and
    (ii) Destination;
    (2) The commodity or commodities involved;
    (3) The minimum volume or portion; and
    (4) The duration.
    (b) Certainty of terms. The terms described in paragraph (a) of this
section may not:
    (1) Be uncertain, vague or ambiguous; or
    (2) Make reference to terms not explicitly detailed in the statement
of essential terms, unless those terms are contained in a publication
widely available to the public and well known within the industry.
    (c) Location--(1) Generally. The statement of essential terms shall
be published as a separate part of the individual carrier's automated
tariff system.
    (2) Multi-party service contracts. For service contracts in which
more than one carrier participates or is eligible to participate, the
statement of essential terms shall be published:
    (i) If the service contract is entered into under the authority of a
conference agreement, then in that conference's automated tariff system;
    (ii) If the service contract is entered into under the authority of
a non-conference agreement, then in each of the participating or
eligible-to-participate carriers' individual automated tariff systems,
clearly indicating the relevant FMC-assigned agreement number.
    (d) References. The statement of essential terms shall contain a
reference to the ``SC Number'' as described in Sec. 530.8(d)(1).
    (e) Terms. (1) The publication of the statement of essential terms
shall accurately reflect the terms as filed confidentially with the
Commission.
    (2) If any of the published essential terms include information not
required to be filed with the Commission but filed voluntarily, the
statement of essential terms shall so note.
    (f) Agents. Common carriers, conferences, or agreements may use
agents to meet their publication requirements under this part.
    (g) Commission listing. The Commission will publish on its website,
www.fmc.gov, a listing of the locations of all service contract
essential terms publications.
    (h) Updating statements of essential terms. To ensure that the
information contained in a published statement of essential terms is
current and accurate, the statement of essential terms publication shall
include a prominent notice indicating the date of its most recent
publication or revision. When the published statement of essential terms
is affected by filed amendments, corrections, or cancellations, the
current terms shall be changed and published as soon as possible in the
relevant statement of essential terms.

[64 FR 11206, Mar. 8, 1999, as amended at 64 FR 23793, May 4, 1999]

[[Page 196]]



                 Subpart D_Exceptions and Implementation



Sec. 530.13  Exceptions and exemptions.

    (a) Statutory exceptions. Service contracts for the movement of the
following, as defined in section 3 of the Act (46 U.S.C. 40102), Sec.
530.3 or Sec. 520.2 of this chapter, are excepted by section 8(c) of
the Act (46 U.S.C. 40502) from the requirements of that section, and are
therefore not subject to the requirements of this part:
    (1) Bulk cargo;
    (2) Forest products;
    (3) Recycled metal scrap;
    (4) New assembled motor vehicles; and
    (5) Waste paper or paper waste.
    (b) Commission exemptions. Exemptions from the requirements of this
part are governed by section 16 of the Act (46 U.S.C. 40103) and Rule 67
of the Commission's Rules of Practice and Procedure, Sec. 502.67 of
this chapter. The following commodities and/or services are exempt from
the requirements of this part:
    (1) Mail in foreign commerce. Transportation of mail between the
United States and foreign countries.
    (2) Department of Defense cargo. Transportation of U.S. Department
of Defense cargo moving in foreign commerce under terms and conditions
negotiated and approved by the Military Transportation Management
Command and published in a universal service contract. An exact copy of
the universal service contract, including any amendments thereto, shall
be filed with the Commission as soon as it becomes available.
    (c) Inclusion of excepted or exempted matter. (1) The Commission
will not accept for filing service contracts which exclusively concern
the commodities or services listed in paragraph (a) or (b) of this
section.
    (2) Service contracts filed with the Commission may include the
commodities or services listed in paragraph (a) or (b) of this section
only if:
    (i) There is a tariff of general applicability for the
transportation, which contains a specific commodity rate for the
commodity or service in question; or
    (ii) The service contract itself sets forth a rate or charge which
will be applied if the contract is canceled, as defined in Sec.
530.10(a)(3).
    (d) Waiver. Upon filing a service contract pursuant to paragraph (c)
of this section, the service contract shall be subject to the same
requirements as those for service contracts generally.

[64 FR 23793, May 4, 1999, as amended at 74 FR 50724, Oct. 1, 2009]



Sec. 530.14  Implementation

    (a) Generally. Performance under a service contract or amendment
thereto may not begin before the day it is effective and filed with the
Commission.
    (b) Prohibition or suspension. When the filing parties receive
notice that an initial or amended service contract has been prohibited
under section 9(d) (46 U.S.C. 40704) or suspended under section 11 of
the Act (46 U.S.C. 41301-41302, 41305-41307(a)):
    (1) Further or continued implementation of the service contract is
prohibited;
    (2) All services performed under the contract shall be re-rated in
accordance with the otherwise applicable tariff provisions for such
services with notice to the shipper within five (5) days of the date of
prohibition or suspension; and
    (3) Detailed notice shall be given to the Commission under Sec.
530.9 within thirty (30) days of:
    (i) The re-rating or other account adjustment resulting from
prohibition or suspension under paragraph (b)(2) of this section; or
    (ii) Final settlement of the account adjusted under Sec. 530.10.
    (c) Agreements. If the prohibited or suspended service contract was
that of an agreement with no common tariff, the re-rating shall be in
accordance with the published tariff rates of the carrier which
transported the cargo in effect at the time.

[64 FR 11206, Mar. 8, 1999, as amended at 74 FR 50724, Oct. 1, 2009]

[[Page 197]]



                    Subpart E_Recordkeeping and Audit



Sec. 530.15  Recordkeeping and audit.

    (a) Records retention for five years. Every common carrier,
conference or agreement shall maintain original signed service
contracts, amendments, and their associated records in an organized,
readily accessible or retrievable manner for a period of five (5) years
from the termination of each contract.
    (b) (paragraph (b) is stayed until further notice.) Where
maintained. (1) Service contract records shall be maintained in the
United States, except that service contract records may be maintained
outside the United States if the Chairman or Secretary of an agreement
or President or Chief Executive Officer of the carrier certifies
annually by January 1, on a form to be supplied by the Commission, that
service contract records will be made available as provided in paragraph
(c) of this section.
    (2) Penalty. If service contract records are not made available to
the Commission as provided in paragraph (c) of this section, the
Commission may cancel any carrier's or agreement's right to maintain
records outside the United States pursuant to the certification
procedure of paragraph (b) of this section.
    (c) Production for audit within 30 days of request. Every carrier or
agreement shall, upon written request of the FMC's Director, Bureau of
Enforcement, any Area Representative or the Director, Bureau of
Economics and Agreements Analysis, submit copies of requested original
service contracts or their associated records within thirty (30) days of
the date of the request.
    (d) Agreement service contracts. In the case of service contracts
made by agreements, the penalties for a failure to maintain records
pursuant to this section shall attach jointly and severally on all of
the agreement members participating in the service contract in question.



Sec. 530.91  OMB control numbers assigned pursuant to the Paperwork
Reduction Act.

    The Commission has received OMB approval for this collection of
information pursuant to the Paperwork Reduction Act of 1995, as amended.
In accordance with that Act, agencies are required to display a
currently valid control number. The valid control number for this
collection of information is 3072-0065.



  Sec. Appendix A to Part 530--Instructions for the Filing of Service
                                Contracts

    Service contracts shall be filed in accordance with the instructions
found on the Commission's home page, http://www.fmc.gov.

                 A. Registration, Log-on ID and Password

    To register for filing, a carrier, conference, agreement or
publisher must submit the Service Contract Registration Form (Form FMC-
83) to BTCL. A separate Service Contract Registration Form is required
for each individual that will file service contracts. BTCL will direct
OIRM to provide approved filers with a log-on ID and password. Filers
who wish a third party (publisher) to file their service contracts must
so indicate on Form FMC-83. Authority for organizational filing can be
transferred by submitting an amended registration form requesting the
assignment of a new log-on ID and password. The original log-on ID will
be canceled when a replacement log-on ID is issued. Log-on IDs and
passwords may not be shared with, loaned to or used by any individual
other than the individual registrant. The Commission reserves the right
to disable any log-on ID that is shared with, loaned to or used by
parties other than the registrant.

                                B. Filing

    After receiving a log-on ID and a password, a filer may log-on to
the service contract filing area on the Commission's home page and file
service contracts. The filing screen will request such information as:
filer name, Registered Persons Index (``RPI'') number and carrier RPI
number (if different); Service Contract and amendment number; and
effective date. The filer will attach the entire service contract file
and submit it into the system. When the service contract has been
submitted for filing, the system will assign a filing date and an FMC
control number, both of which will be included in the acknowledgment/
confirmation message.

[64 FR 41042, July 29, 1999]

[[Page 198]]



 Sec. Exhibit 1 to Part 530--Service Contract Registration [Form FMC-83]
[GRAPHIC] [TIFF OMITTED] TR08MR99.023


[[Page 199]]



                      Instructions for Form FMC-83

                              Instructions

    Line 1. Registration. Indicate whether this is the initial (first
time) registration or an amendment to an existing Service Contract
Registration.
    Line 2. Registrant. This must be the full legal name of the firm or
individual registering for the FMC's Service Contract Filing System and
any trade names. The registrant name should match the corporate charter
or business license, conference membership, etc. It should be noted that
the registrant name cannot be changed by the registrant after the
registration without submission of an amended registration fee.
    Line 3. Address of Home Office. The complete street address should
be shown in addition to the post office box. Also, provide the
registrant's Federal Taxpayer Identification Number (``TIN'' Number).
    Line 4. Billing Address if Different. This should be completed if
the billing address differs from the home office address. Show the firm
name (if different from the registrant), street address and post office
box (if applicable).
    Line 5. Organization Number. Complete if known. (Regulated Persons
Index or ``RPI'' number.)
    Line 6. Registrant Type. Indicate the type of organization. A
registrant cannot be more than one type. This data cannot be changed by
the registrant after registration without submission of an amended
registration form.
    Line 7. Permissions Requested and Person Granted These Permissions.
Delegation of the authority to file should be noted here.
    Maintenance of Organization Record--The person listed in line 8 is
authorized to access the organization maintenance functions (i.e.,
modify organization information, assign publishers, affiliations, and d/
b/as).
    Service Contract Filing--The person listed in line 8 is authorized
only to submit filings.
    Line 8. Certified for Batch Filing. Indicate whether the registrant
was registered with software certified to perform batch filings prior to
May 1, 1999. Otherwise, the registrant must first be certified for batch
filing as outlined in 46 CFR part 530. After certification, the
registrant can submit an amended registration form to request permission
for a person in their organization to perform the batch filing. If the
person already has an existing log-on, the log-on (not the password)
should be listed on the registration form. Also, the certification date
received from the FMC should be listed on the registration form.



PART 531_NVOCC SERVICE ARRANGEMENTS--Table of Contents



                      Subpart A_General Provisions

Sec.
531.1 Purpose.
531.2 Scope and applicability.
531.3 Definitions.
531.4 Confidentiality.
531.5 Duty to file.

                      Subpart B_Filing Requirements

531.6 NVOCC Service Arrangements.
531.7 Notices.
531.8 Amendment, correction, cancellation, and electronic transmission
          errors.

                Subpart C_Publication of Essential Terms

531.9 Publication.

                 Subpart D_Exceptions and Implementation

531.10 Excepted and exempted commodities.
531.11 Implementation.

                    Subpart E_Recordkeeping and Audit

531.12 Recordkeeping and audit.
531.13-531.98 [Reserved]
531.99 OMB control numbers assigned pursuant to the Paperwork Reduction
          Act.

Appendix A to Part 531--Instructions for the Filing of NVOCC Service
          Arrangements
Exhibit 1 to Part 531--NVOCC Service Arrangement Registration [FORM FMC-
          78]

    Authority: 46 U.S.C. 40103.

    Source: 69 FR 75853, Dec. 20, 2004, unless otherwise noted.



                      Subpart A_General Provisions



Sec. 531.1  Purpose.

    This part exempts NVOCCs from certain provisions of the Shipping
Act. The purpose of this part is to facilitate the filing of NVOCC
Service Arrangements (``NSAs'') and the publication of certain essential
terms of those NSAs as they are exempt from the otherwise applicable
provisions of the Shipping Act of 1984 (``the Act''). This part enables
the Commission to review NSAs to ensure that they and the parties to
them comport with the conditions of the exemption as set forth below.

[69 FR 75853, Dec. 20, 2004, as amended at 74 FR 50724, Oct. 1, 2009]

[[Page 200]]



Sec. 531.2  Scope and applicability.

    Only individual NVOCCs compliant with the requirements of section 19
of the Act (46 U.S.C. 40901-40904) and the Commission's regulations at
46 CFR part 515 may enter into an NSA with one or more NSA shippers
subject to the requirements of these rules. Any NVOCC who has failed to
maintain its bond or license or had its tariff suspended or cancelled by
the Commission is ineligible to offer and file NSAs.

[69 FR 75853, Dec. 20, 2004, as amended at 74 FR 50724, Oct. 1, 2009]



Sec. 531.3  Definitions.

    When used in this part:
    (a) Act means the Shipping Act of 1984 as amended by the Ocean
Shipping Reform Act of 1998;
    (b) Affiliate means two or more entities which are under common
ownership or control by reason of being parent and subsidiary or
entities associated with, under common control with, or otherwise
related to each other through common stock ownership or common directors
or officers.
    (c) Amendment means any change to a filed NSA which has prospective
effect and which is mutually agreed upon by all parties to the NSA.
    (d) Authorized person means an NVOCC or duly appointed agent who is
authorized to file NSAs on behalf of the NVOCC and to publish the
corresponding statement of essential terms and is registered by the
Commission to file under Sec. 531.5 and Appendix A to this part.
    (e) BTA means the Commission's Bureau of Trade Analysis, or its
successor bureau.
    (f) BCL means the Commission's Bureau of Certification and
Licensing, or its successor bureau.
    (g) Cancellation means an event which is unanticipated by the NSA,
in liquidated damages or otherwise, and is due to the failure of the NSA
shipper to tender minimum cargo as set forth in the contract, unless
such tender was made impossible by an action of the NVOCC.
    (h) Commission or FMC means the Federal Maritime Commission.
    (i) Common carrier means a person holding itself out to the general
public to provide transportation by water of passengers or cargo between
the United States and a foreign country for compensation that:
    (1) Assumes responsibility for the transportation from the port or
point of receipt to the port or point of destination; and
    (2) Utilizes, for all or part of that transportation, a vessel
operating on the high seas or the Great Lakes between a port in the
United States and a port in a foreign country, except that the term does
not include a common carrier engaged in ocean transportation by ferry
boat, ocean tramp, or chemical parcel tanker, or by a vessel when
primarily engaged in the carriage of perishable agricultural
commodities:
    (i) If the common carrier and the owner of those commodities are
wholly owned, directly or indirectly, by a person primarily engaged in
the marketing and distribution of those commodities and
    (ii) Only with respect to those commodities.
    (j) Correction means any change to a filed NSA that has retroactive
effect.
    (k) Effective date means the date upon which an NSA or amendment is
scheduled to go into effect by the parties to the NSA. An NSA or
amendment becomes effective at 12:01 a.m. Eastern Standard Time on the
beginning of the effective date. The effective date cannot be prior to
the filing date of the NSA or amendment with the Commission.
    (l) Expiration date means the last day after which the entire NSA is
no longer in effect.
    (m) File or filing (of NSAs or amendments thereto) means the use of
the Commission's electronic filing system for receipt of an NSA or an
amendment thereto by the Commission, consistent with the method set
forth in Appendix A of this part, and the recording of its receipt by
the Commission.
    (n) OIT means the Commission's Office of Information Technology, or
its successor office.
    (o) NSA shipper means a cargo owner, the person for whose account
the ocean transportation is provided, the person

[[Page 201]]

to whom delivery is to be made, a shippers' association, or an ocean
transportation intermediary, as defined in section 3(17)(B) of the Act
(46 U.S.C. 40102(16)), that accepts responsibility for payment of all
applicable charges under the NSA.
    (p) NVOCC Service Arrangement (``NSA'') means a written contract,
other than a bill of lading or receipt, between one or more NSA shippers
and an individual NVOCC or two or more affiliated NVOCCs, in which the
NSA shipper makes a commitment to provide a certain minimum quantity or
portion of its cargo or freight revenue over a fixed time period, and
the NVOCC commits to a certain rate or rate schedule and a defined
service level. The NSA may also specify provisions in the event of
nonperformance on the part of any party.
    (q) Statement of essential terms means a concise statement of the
essential terms of an NSA required to be published under this part.

[69 FR 75853, Dec. 20, 2004, as amended at 70 FR 56580, Sept. 28, 2005;
74 FR 50724, Oct. 1, 2009]



Sec. 531.4  Confidentiality.

    (a) All NSAs and amendments to NSAs filed with the Commission shall,
to the fullest extent permitted by law, be held in confidence by the
Commission.
    (b) Nothing contained in this part shall preclude the Commission
from providing certain information from or access to NSAs to another
agency of the Federal government of the United States.
    (c) Parties to a filed NSA may agree to disclose information
contained in it. Breach of any confidentiality agreement contained in an
NSA by either party will not, on its own, be considered a violation of
these rules.



Sec. 531.5  Duty to file.

    (a) The duty under this part to file NSAs, amendments and notices,
and to publish statements of essential terms, shall be upon the NVOCC
acting as carrier party to the NSA.
    (b) The Commission shall not order any person to pay the difference
between the amount billed and agreed upon in writing with a common
carrier or its agent and the amount set forth in an NSA by that common
carrier for the transportation service provided.
    (c) Filing may be accomplished by any duly agreed-upon agent, as the
parties to the NSA may designate, and subject to conditions as the
parties may agree.
    (d) Registration--(1) Application. Authority to file or delegate the
authority to file must be requested by a responsible official of the
NVOCC in writing by submitting to BTA, either by mail to 800 N. Capitol
Street, NW., Washington, DC 20573, or by facsimile to (202) 523-5867, a
completed NSA Registration Form (FMC-78)(Exhibit 1 to this part).
    (2) Approved registrations. OIT shall provide approved Registrants a
log-on ID and password for filing and amending NSAs and notify
Registrants of such approval.

[69 FR 75853, Dec. 20, 2004, as amended at 70 FR 56580, Sept. 28, 2005;
76 FR 11680, Mar. 3, 2011]



                      Subpart B_Filing Requirements



Sec. 531.6  NVOCC Service Arrangements.

    (a) Authorized persons shall file with BTA, in the manner set forth
in Appendix A of this part, a true and complete copy of every NSA or
amendment before any cargo moves pursuant to that NSA or amendment.
    (b) Every NSA filed with the Commission shall include the complete
terms of the NSA including, but not limited to, the following:
    (1) The origin port ranges in the case of port-to-port movements and
geographic areas in the case of through intermodal movements;
    (2) The destination port ranges in the case of port-to-port
movements and geographic areas in the case of through intermodal
movements;
    (3) The commodity or commodities involved;
    (4) The minimum volume or portion;
    (5) The service commitments;
    (6) The line-haul rate;
    (7) Liquidated damages for non-performance (if any);
    (8) Duration, including the
    (i) Effective date; and
    (ii) Expiration date;

[[Page 202]]

    (9) The legal names and business addresses of the NSA parties; the
legal names of all affiliates of the NSA shipper entitled to access the
NSA; the names, titles and addresses of the representatives signing the
NSA for the parties, except that in the case of an NSA entered into by a
shippers' association, individual members need not be named unless the
contract includes or excludes specific members; and the date upon which
the NSA was signed. Subsequent references in the NSA to the signatory
parties shall be consistent with the first reference. An NVOCC party
which enters into an NSA that includes affiliates must either:
    (i) list the affiliates' business addresses; or
    (ii) certify that this information will be provided to the
Commission upon request within ten (10) business days of such request.
    (10) A description of the shipment records which will be maintained
to support the NSA and the address, telephone number, and title of the
person who will respond to a request by making shipment records
available to the Commission for inspection under Sec. 531.12 of this
part; and
    (11) All other provisions of the NSA.
    (c) Certainty of terms. The terms described in paragraph (b) of this
section may not:
    (1) Be uncertain, vague or ambiguous; or
    (2) Make reference to terms not explicitly contained in the NSA
itself unless those terms are readily available to the parties and the
Commission. Reference may not be made to a tariff of a common carrier
other than the NVOCC acting as carrier party to the NSA.
    (3) Pursuant to Sec. 531.12(b), the carrier party to the NSA must,
upon written request by the Commission, provide the Commission with the
associated records of the referenced terms. For the purpose of paragraph
(c)(2) of this section, the referenced terms will be deemed readily
available to the Commission if the carrier party to the NSA provides the
Commission with the associated records of the terms within thirty (30)
days of the Commission's written request.
    (d) Other requirements. (1) For service pursuant to an NSA, no NVOCC
may, either alone or in conjunction with any other person, directly or
indirectly, provide service in the liner trade that is not in accordance
with the rates, charges, classifications, rules and practices contained
in a filed NSA.
    (2) For service pursuant to an NSA, no NVOCC, may, either alone or
in conjunction with any other person, directly or indirectly, engage in
any unfair or unjustly discriminatory practice in the matter of rates or
charges with respect to any port; and
    (3) For service under an NSA, no NVOCC may, either alone or in
conjunction with any other person, directly or indirectly, give any
undue or unreasonable preference or advantage or impose any undue or
unreasonable prejudice or disadvantage with respect to any port.
    (4) No NVOCC may knowingly and willfully enter into an NSA with an
ocean transportation intermediary that does not have a tariff and a
bond, insurance, or other surety as required by sections 8 (46 U.S.C.
40501-40503) and 19 (46 U.S.C. 40901-40904) of the Act.
    (e) Format requirements. Every NSA filed with BTA shall include, as
set forth in Appendix A to this part:
    (1) A unique NSA number of more than one (1) but less than ten (10)
alphanumeric characters in length (``NSA Number''); and
    (2) A consecutively numbered amendment number no more than three
digits in length, with initial NSAs using ``0'' (``Amendment number'');
and
    (3) An indication of the method by which the statement of essential
terms will be published.
    (f) Exception in case of malfunction of Commission electronic filing
system. (1) In the event that the Commission's electronic filing system
is not functioning and cannot receive NSAs filings for twenty-four (24)
continuous hours or more, affected parties will not be subject to the
requirements of paragraph (a) of this section and Sec. 531.11 that an
NSA be filed before cargo is shipped under it.

[[Page 203]]

    (2) However, NSAs which go into effect before they are filed due to
a malfunction of the Commission's electronic filing system pursuant to
paragraph (f)(1) of this section, must be filed within twenty-four (24)
hours of the Commission's electronic filing system's return to service.
    (3) For an NSA that is effective without filing due to a malfunction
of the Commission's filing system, failure to file that NSA within
twenty-four (24) hours of the Commission's electronic filing system's
return to service will be considered a violation of these regulations.
    (g) Failure to comply with the provisions of this section shall
result in the application of the terms of the otherwise applicable
tariff.

[69 FR 75853, Dec. 20, 2004, as amended at 70 FR 56580, Sept. 28, 2005;
74 FR 50724, Oct. 1, 2009; 77 FR 13510, Mar. 7, 2012]



Sec. 531.7  Notices.

    Within thirty (30) days of the occurrence of any event listed below,
there shall be filed with the Commission, pursuant to the same
procedures as those followed for the filing of an amendment pursuant to
Sec. 531.5 and Appendix A to this part, a detailed notice of:
    (a) Correction;
    (b) Cancellation;
    (c) Adjustment of accounts, by re-rating, liquidated damages, or
otherwise;
    (d) Final settlement of any account adjusted as described in
paragraph (c) of this section; and
    (e) Any change to the name, legal name and/or business address of
any NSA party.



Sec. 531.8  Amendment, correction, cancellation, and electronic
transmission errors.

    (a) Amendment. (1) NSAs may be amended by mutual agreement of the
parties. Amendments shall be filed electronically with the Commission in
the manner set forth in Sec. 531.5 and Appendix A to this part.
    (i) Where feasible, NSAs should be amended by amending only the
affected specific term(s) or subterms.
    (ii) Each time any part of an NSA is amended, the filer shall assign
a consecutive amendment number (up to three digits), beginning with the
number ``1.''
    (iii) Each time any part of a filed NSA is amended, the ``Filing
Date'' will be the date of filing of the amendment.
    (2) [Reserved]
    (b) Correction. (1) Requests shall be filed, in duplicate, with the
Commission's Office of the Secretary within forty-five (45) days of the
NSA's filing with the Commission, accompanied by remittance of a $276
service fee.
    (2) Requests shall include:
    (i) A letter of transmittal explaining the purpose of the
submission, and providing specific information to identify the initial
or amended NSA to be corrected;
    (ii) A paper copy of the proposed correct terms. Matter to be
deleted shall be struck through and matter to be added shall immediately
follow the language being deleted and underscored;
    (iii) An affidavit from the filing party attesting with specificity
to the factual circumstances surrounding the clerical or administrative
error, with reference to any supporting documentation;
    (iv) Documents supporting the clerical or administrative error; and
    (v) A brief statement from the other party to the NSA concurring in
the request for correction.
    (3) If the request for correction is granted, the carrier party
shall file the corrected provisions using a special case number as
described in Appendix A to this part.
    (c) Electronic transmission errors. (1) An authorized person who
experiences a purely technical electronic transmission error or a data
conversion error in transmitting an NSA filing or an amendment thereto
is permitted to file a Corrected Transmission (``CT'') of that filing
within 48 hours of the date and time of receipt recorded in the
Commission's electronic filing system (excluding Saturdays, Sundays and
legal public holidays). This time-limited permission to correct an
initial defective NSA filing is not to be used to make changes in the
original NSA rates, terms or conditions that are otherwise provided for
in Sec. 531.6(b). The CT

[[Page 204]]

tab box in the Commission's electronic filing system must be checked at
the time of resubmitting a previously filed NSA, and a description of
the corrections made must be stated at the beginning of the corrected
NSA in a comment box. Failure to check the CT box and enter a
description of the correction will result in the rejection of a file
with the same name, as documents with duplicate file names or NSA and
amendment numbers are not accepted by the FMC's electronic filing
system.
    (2) [Reserved]
    (d) Cancellation. (1) An account may be adjusted for events and
damages covered by the NSA. This shall include adjustment necessitated
by either liability for liquidated damages appearing in the NSA as filed
with the Commission under Sec. 531.6(b)(7), or the occurrence of an
event described below in paragraph (d)(2) of this section.
    (2) In the event of cancellation as defined in Sec. 531.3(g):
    (i) Further or continued implementation of the NSA is prohibited;
and
    (ii) The cargo previously carried under the NSA shall be re-rated
according to the otherwise applicable tariff provisions.
    (e) If the amendment, correction or cancellation affects an
essential term required to be published under Sec. 531.9, the statement
of essential terms shall be changed as soon as possible after the filing
of the amendment to accurately reflect the change to the NSA terms.



                Subpart C_Publication of Essential Terms



Sec. 531.9  Publication.

    (a) Contents. All authorized persons who choose to file NSAs under
this part are also required to make available to the public,
contemporaneously with the filing of each NSA with the Commission, and
in tariff format, a concise statement of the following essential terms:
    (1) The port ranges:
    (i) origin; and
    (ii) destination;
    (2) The commodity or commodities involved;
    (3) The minimum volume or portion; and
    (4) The duration.
    (b) Certainty of terms. The terms described in paragraph (a) of this
section may not:
    (1) Be uncertain, vague or ambiguous; or
    (2) Make reference to terms not explicitly detailed in the statement
of essential terms, unless those terms are contained in a publication
widely available to the public and well known within the industry.
Reference may not be made to a tariff of a common carrier other than the
NVOCC party to the NSA.
    (c) Location. The statement of essential terms shall be published as
a separate part of the individual NVOCC's automated tariff system.
    (d) References. The statement of essential terms shall contain a
reference to the ``NSA Number'' as described in Sec. 531.6(e)(1).
    (e) Terms. (1) The publication of the statement of essential terms
shall accurately reflect the terms as filed with the Commission.
    (2) If any of the published essential terms include information not
required to be filed with the Commission but filed voluntarily, the
statement of essential terms shall so note.
    (f) Commission listing. The Commission will publish on its website,
www.fmc.gov, a listing of the locations of all NSA essential terms
publications.
    (g) Updating statements of essential terms. To ensure that the
information contained in a published statement of essential terms is
current and accurate, the statement of essential terms publication shall
include a prominent notice indicating the date of its most recent
publication or revision. When the published statement of essential terms
is affected by filed amendments, corrections, or cancellations, the
current terms shall be changed and published as soon as possible in the
relevant statement of essential terms.



                 Subpart D_Exceptions and Implementation



Sec. 531.10  Excepted and exempted commodities.

    (a) Statutory exceptions. NSAs for the movement of the following, as
defined in section 3 of the Act (46 U.S.C. 40102)

[[Page 205]]

and Sec. 530.3 or Sec. 520.2 of this chapter, are not subject to the
conditions of this exemption:
    (1) Bulk cargo;
    (2) Forest products;
    (3) Recycled metal scrap;
    (4) New assembled motor vehicles; and
    (5) Waste paper or paper waste.
    (b) Commission exemptions. The following commodities and/or services
are not subject to the conditions of this exemption:
    (1) Mail in foreign commerce. Transportation of mail between the
United States and foreign countries.
    (2) Department of Defense cargo. Transportation of U.S. Department
of Defense cargo moving in foreign commerce under terms and conditions
approved by the Military Transportation Management Command and published
in a universal service contract. An exact copy of the universal service
contract, including any amendments thereto, shall be filed with the
Commission as soon as it becomes available.
    (c) Inclusion of excepted or exempted matter. (1) The Commission
will not accept for filing NSAs which exclusively concern the
commodities or services listed in paragraph (a) or (b) of this section.
    (2) NSAs filed with the Commission may include the commodities or
services listed in paragraph (a) or (b) of this section only if:
    (i) There is a tariff of general applicability for the
transportation, which contains a specific commodity rate for the
commodity or service in question; or
    (ii) The NSA itself sets forth a rate or charge which will be
applied if the NSA is canceled, as defined in Sec. 531.3(e) and Sec.
531.8(d).
    (d) Waiver. Upon filing an NSA pursuant to paragraph (c) of this
section, the NSA shall be subject to the same requirements as those for
NSAs generally.

[69 FR 75853, Dec. 20, 2004, as amended at 74 FR 50725, Oct. 1, 2009]



Sec. 531.11  Implementation.

    Generally. Performance under an NSA or amendment thereto may not
begin before the day it is effective and filed with the Commission.



                    Subpart E_Recordkeeping and Audit



Sec. 531.12  Recordkeeping and audit.

    (a) Records retention for five years. Every NVOCC shall maintain
original signed NSAs, amendments, and their associated records in an
organized, readily accessible or retrievable manner for a period of five
(5) years from the termination of each NSA. These records must be kept
in a form that is readily available and usable to the Commission;
electronically maintained records shall be no less accessible than if
they were maintained in paper form.
    (b) Production for audit within 30 days of request. Every NVOCC
shall, upon written request of the FMC's Director, Bureau of
Enforcement, any Area Representative or the Director, Bureau of Trade
Analysis, submit copies of requested original NSAs or their associated
records within thirty (30) days of the date of the request.



Sec. Sec. 531.13-531.98  [Reserved]



Sec. 531.99  OMB control numbers assigned pursuant to the Paperwork
Reduction Act.

    The Commission has received OMB approval for this collection of
information pursuant to the Paperwork Reduction Act of 1995, as amended.
In accordance with that Act, agencies are required to display a
currently valid control number. The valid control number for this
collection of information is 3072-0070. The valid control number for
form FMC-78 is 3072-0070.

[69 FR 75853, Dec. 20, 2004, as amended at 70 FR 31370, June 1, 2005]



    Sec. Appendix A to Part 531--Instructions for the Filing of NSAs

    NSAs shall be filed in accordance with the instructions found on the
Commission's home page, http://www.fmc.gov.

                A. Registration, Log-on I.D. and Password

    To register for filing, an NVOCC or authorized agent must submit the
NSA Registration Form (Form FMC-78) to BTA. A separate NSA Registration
Form is required for each individual that will file NSAs. BTA will

[[Page 206]]

direct OIT to provide approved filers with a log-on identification
number (``I.D.'') and password. Filers who would like a third party
(agent/publisher) to file their NSAs must so indicate on Form FMC-78.
Authority for filing can be transferred by submitting an amended
registration form requesting the assignment of a new log-on I.D. and
password. The original log-on ID will be canceled when a replacement
log-on I.D. is issued. Log-on I.D.s and passwords may not be shared
with, loaned to or used by any individual other than the individual
registrant. The Commission reserves the right to disable any log-on I.D.
that is shared with, loaned to or used by parties other than the
registrant.

                                B. Filing

    After receiving a log-on I.D. and a password, a filer may log-on to
the NSA filing area on the Commission's home page and file NSAs. The
filing screen will request such information as: filer name, organization
number (``Registered Persons Index'' or ``RPI'' number); NSA and
amendment number; effective date and file name. The filer will attach
the entire NSA file and submit it into the system. When the NSA has been
submitted for filing, the system will assign a filing date and an FMC
control number, both of which will be included in the acknowledgment/
confirmation message.
[GRAPHIC] [TIFF OMITTED] TR01OC09.006


[[Page 207]]


[GRAPHIC] [TIFF OMITTED] TR01OC09.007


[[Page 208]]


[GRAPHIC] [TIFF OMITTED] TR01JN05.637


[69 FR 75853, Dec. 20, 2004, as amended at 70 FR 31370, June 1, 2005; 74
FR 50725, Oct. 1, 2009]

[[Page 209]]



PART 532_NVOCC NEGOTIATED RATE ARRANGEMENTS--Table of Contents



                      Subpart A_General Provisions

Sec.
532.1 Purpose.
532.2 Scope and applicability.
532.3 Definitions.

   Subpart B_Procedures Related to NVOCC Negotiated Rate Arrangements

532.4 Duties of the NVOCC rules tariff.
532.5 Requirements for NVOCC negotiated rate arrangements.
532.6 Notices.

                  Subpart C_Recordkeeping Requirements

532.7 Recordkeeping and audit.
532.91 OMB control number assigned pursuant to the Paperwork Reduction
          Act.

    Authority: 46 U.S.C. 40103.

    Source: 76 FR 11360, Mar. 2, 2011, unless otherwise noted.



                      Subpart A_General Provisions



Sec. 532.1  Purpose.

    The purpose of this part, pursuant to the Commission's statutory
authority, is to exempt non-vessel-operating common carriers (NVOCCs)
from the tariff rate publication and adherence requirements of the
Shipping Act of 1984, as enumerated herein.

[78 FR 42888, July 18, 2013]



Sec. 532.2  Scope and applicability.

    This part exempts NVOCCs duly licensed pursuant to 46 CFR 515.3 or
registered pursuant to 46 CFR 515.19, holding adequate proof of
financial responsibility pursuant to 46 CFR 515.21, and meeting the
requirements of 46 CFR 532.4 through 532.7, from the following
requirements and prohibitions of the Shipping Act and the Commission's
regulations:
    (a) The requirement in 46 U.S.C. 40501(a)-(c) that the NVOCC include
its rates in a tariff open to public inspection in an automated tariff
system;
    (b) 46 U.S.C. 40501(d);
    (c) 46 U.S.C. 40501(e)
    (d) 46 U.S.C. 40503;
    (e) the prohibition in 46 U.S.C. 41104(2)(A);
    (f) the Commission's corresponding regulation at 46 CFR 520.3(a)
that the NVOCC include its rates in a tariff open for public inspection
in an automated tariff system; and
    (g) the Commission's corresponding regulations at 46 CFR
520.4(a)(4), 520.4(f), 520.6(e), 520.7(c), (d), 520.8(a), 520.12, and
520.14. Any NVOCC failing to maintain its bond or license or
registration as set forth above, or who has had its tariff suspended by
the Commission, shall not be eligible to invoke this exemption.

[76 FR 11360, Mar. 2, 2011, as amended at 78 FR 42888, July 18, 2013]



Sec. 532.3  Definitions.

    When used in this part,
    (a) ``NVOCC Negotiated Rate Arrangement'' or ``NRA'' means a written
and binding arrangement between an NRA shipper and an eligible NVOCC to
provide specific transportation service for a stated cargo quantity,
from origin to destination, on and after receipt of the cargo by the
carrier or its agent (or the originating carrier in the case of through
transportation).
    (b) ``Rate'' means a price stated for providing a specified level of
transportation service for a stated cargo quantity, from origin to
destination, on and after a stated date or within a defined time frame.
    (c) ``Rules tariff'' means a tariff or the portion of a tariff, as
defined by 46 CFR 520.2, containing the terms and conditions governing
the charges, classifications, rules, regulations and practices of an
NVOCC, but does not include a rate.
    (d) ``NRA shipper'' means a cargo owner, the person for whose
account the ocean transportation is provided, the person to whom
delivery is to be made, a shippers' association, or an ocean
transportation intermediary, as defined in section 3(17)(B) of the Act
(46 U.S.C. 40102(16)), that accepts responsibility for payment of all
applicable charges under the NRA.
    (e) ``Affiliate'' means two or more entities which are under common
ownership or control by reason of being parent and subsidiary or
entities associated with, under common control with or otherwise related
to each other

[[Page 210]]

through common stock ownership or common directors or officers.



   Subpart B_Procedures Related to NVOCC Negotiated Rate Arrangements



Sec. 532.4  NVOCC rules tariff.

    Before entering into NRAs under this Part, an NVOCC must provide
electronic access to its rules tariffs to the public free of charge.



Sec. 532.5  Requirements for NVOCC negotiated rate arrangements.

    In order to qualify for the exemptions to the general rate
publication requirement as set forth in section 532.2, an NRA must:
    (a) Be in writing;
    (b) Contain the names of the parties and the names of the
representatives agreeing to the NRA;
    (c) Be agreed to by both NRA shipper and NVOCC, prior to receipt of
cargo by the common carrier or its agent (including originating carriers
in the case of through transportation);
    (d) Clearly specify the rate and the shipment or shipments to which
such rate will apply; and
    (e) May not be modified after the time the initial shipment is
received by the carrier or its agent (including originating carriers in
the case of through transportation).

[76 FR 11360, Mar. 2, 2011; 76 FR 19707, Apr. 8, 2011, as amended at 77
FR 33972, June 8, 2012]



Sec. 532.6  Notices.

    An NVOCC wishing to invoke an exemption pursuant to this part must
indicate that intention to the Commission and the public by a prominent
notice in its rules tariff.

[77 FR 33972, June 8, 2012]



                         Subpart C_Recordkeeping



Sec. 532.7  Recordkeeping and audit.

    (a) An NVOCC invoking an exemption pursuant to this part must
maintain original NRAs in an organized, readily accessible or
retrievable manner for 5 years from the completion date of performance
of the NRA by an NVOCC, in a format easily produced to the Commission.
    (b) NRAs are subject to inspection and reproduction requests by the
Commission. An NVOCC shall produce the requested NRAs promptly in
response to a Commission request. All records produced must be in
English or be accompanied by a certified English translation.
    (c) Failure to keep or timely produce original NRAs will disqualify
an NVOCC from the operation of the exemption provided pursuant to this
part, regardless of whether it has been invoked by notice as set forth
above, and may result in a Commission finding of a violation of 46
U.S.C. 41104(1), 41104(2)(A) or other acts prohibited by the Shipping
Act.

[77 FR 33972, June 8, 2012, as amended at 78 FR 42889, July 18, 2013]



Sec. 532.91  OMB control number issued pursuant to the Paperwork
Reduction Act.

    The Commission has received OMB approval for this collection of
information pursuant to the Paperwork Reduction Act of 1995, as amended.
In accordance with that Act, agencies are required to display a
currently valid control number. The valid control number for this
collection of information is 3072-0071.



PART 535_OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR AGREEMENTS
SUBJECT TO THE SHIPPING ACT OF 1984--Table of Contents



                      Subpart A_General Provisions

Sec.
535.101 Authority.
535.102 Purpose.
535.103 Policies.
535.104 Definitions.

                             Subpart B_Scope

535.201 Subject agreements.
535.202 Non-subject agreements.

                          Subpart C_Exemptions

535.301 Exemption procedures.
535.302 Exemptions for certain modifications of effective agreements.
535.303 Husbanding agreements--exemption.

[[Page 211]]

535.304 Agency agreements--exemption.
535.305 Equipment interchange agreements--exemption.
535.306 Nonexclusive transshipment agreements--exemption.
535.307 Agreements between or among wholly-owned subsidiaries and/or
          their parent--exemption.
535.309 Marine terminal services agreements--exemption.
535.310 Marine terminal facilities agreements--exemption.
535.311 Low market share agreements--exemption.
535.312 Vessel charter party--exemption.

                     Subpart D_Filing of Agreements

535.401 General requirements.
535.402 Complete and definite agreements.
535.403 Form of agreements.
535.404 Agreement provisions.
535.405 Organization of conference agreements.
535.406 Modification of agreements.
535.407 Application for waiver.
535.408 Activities that may be conducted without further filings.

                 Subpart E_Information Form Requirements

535.501 General requirements.
535.502 Agreements subject to the Information Form requirements.
535.503 Information Form.
535.504 Application for waiver.

                     Subpart F_Action on Agreements

535.601 Preliminary review--rejection of agreements.
535.602 Federal Register notice.
535.603 Comment.
535.604 Waiting period.
535.605 Requests for expedited review.
535.606 Requests for additional information.
535.607 Failure to comply with requests for additional information.
535.608 Confidentiality of submitted material.
535.609 Negotiations.

                    Subpart G_Reporting Requirements

535.701 General requirements.
535.702 Agreements subject to Monitoring Report and alternative periodic
          reporting requirements.
535.703 Monitoring Report form.
535.704 Filing of minutes.
535.705 Application for waiver.

              Subpart H_Mandatory and Prohibited Provisions

535.801 Independent action.
535.802 Service contracts.
535.803 Ocean freight forwarder compensation.

                           Subpart I_Penalties

535.901 Failure to file.
535.902 Falsification of reports.

                      Subpart J_Paperwork Reduction

535.991 OMB control numbers assigned pursuant to the Paperwork Reduction
          Act.

Appendix A to Part 535--Information Form and Instructions
Appendix B to Part 535--Monitoring Report and Instructions

    Authority: 5 U.S.C. 553; 46 U.S.C. 305, 40101-40104, 40301-40307,
40501-40503, 40901-40904, 41101-41109, 41301-41302, and 41305-41307.

    Source: 69 FR 64414, Nov. 4, 2004, unless otherwise noted.



                      Subpart A_General Provisions



Sec. 535.101  Authority.

    The rules in this part are issued pursuant to the authority of
section 4 of the Administrative Procedure Act (5 U.S.C. 553), sections
2, 3, 4, 5, 6, 7, 8, 10, 11, 13, 15, 16, 17, and 19 of the Shipping Act
of 1984 (``the Act'') (46 U.S.C. 305, 40101-40104, 40301-40307, 40501-
40503, 40901-40904, 41101-41109, 41301-41302, and 41305-41307), and the
Ocean Shipping Reform Act of 1998, Pub. L. 105-258, 112 Stat. 1902.

[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50727, Oct. 1, 2009]



Sec. 535.102  Purpose.

    This part implements those provisions of the Act that govern
agreements by or among ocean common carriers and agreements among marine
terminal operators and among one or more marine terminal operators and
one or more ocean common carriers. This part also sets forth more
specifically certain procedures provided for in the Act.



Sec. 535.103  Policies.

    (a) The Act requires that agreements be processed and reviewed, upon
their initial filing, according to strict statutory deadlines. This part
is intended to establish procedures for the orderly and expeditious
review of filed agreements in accordance with the statutory
requirements.

[[Page 212]]

    (b) The Act requires that agreements be reviewed, upon their initial
filing, to ensure compliance with all applicable provisions of the Act
and empowers the Commission to obtain information to conduct that
review. This part identifies those types of agreements that must be
accompanied by information submissions when they are first filed, and
sets forth the kind of information for certain agreements that the
Commission believes relevant to that review. Only information that is
relevant to such a review is requested. It is the policy of the
Commission to keep the costs of regulation to a minimum and at the same
time obtain information needed to fulfill its statutory responsibility.
    (c) To further the goal of expedited processing and review of
agreements upon their initial filing, agreements are required to meet
certain minimum requirements as to form. These requirements are intended
to ensure expedited review and should assist parties in preparing
agreements. These requirements as to form do not affect the substance of
an agreement and are intended to allow parties the freedom to develop
innovative commercial relationships and provide efficient and economic
transportation systems.
    (d) The Act itself excludes certain agreements from the filing
requirements and authorizes the Commission to exempt other classes of
agreements from any requirement of the Act or this part. To minimize
delay in the implementation of routine agreements and to avoid the
private and public cost of unnecessary regulation, certain classes of
agreements are exempt from the filing requirements of this part.
    (e) Under the regulatory framework established by the Act, the role
of the Commission as a monitoring agency has been enhanced. The Act
favors greater freedom in allowing parties to form their commercial
arrangements. This, however, requires greater monitoring of agreements
after they have become effective to assure their continued compliance
with all applicable provisions of the Act. The Act empowers the
Commission to impose certain recordkeeping and reporting requirements.
This part identifies those agreements that require specific record
retention and reporting to the Commission and prescribes the applicable
period of record retention, the form and content of such reporting, and
the applicable time periods for filing with the Commission. Only
information that is necessary to assure that the Commission's monitoring
responsibilities will be fulfilled is requested.
    (f) The Act requires that conference agreements contain certain
mandatory provisions. Each conference agreement must:
    (1) State its purpose;
    (2) Provide reasonable and equal terms and conditions for admission
and readmission to membership;
    (3) Allow for withdrawal from membership upon reasonable notice
without penalty;
    (4) Require an independent neutral body to police the conference, if
requested by a member;
    (5) Prohibit conduct specified in sections 10(c)(1) or 10(c)(3) of
the Act (46 U.S.C. 41105(1) or 41105(3));
    (6) Provide for a consultation process;
    (7) Establish procedures for considering shippers' requests and
complaints; and
    (8) Provide for independent action.
    (g) To promote competitive and efficient transportation and a
greater reliance on the marketplace, the Act places limits on carriers'
agreements regarding service contracts. Carriers may not enter into an
agreement to prohibit or restrict members from engaging in contract
negotiations, may not require members to disclose service contract
negotiations or terms and conditions (other than those required to be
published), and may not adopt mandatory rules or requirements affecting
the right of an agreement member or agreement members to negotiate and
enter into contracts. However, agreement members may adopt voluntary
guidelines covering the terms and procedures of members' contracts.

[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50727, Oct. 1, 2009]



Sec. 535.104  Definitions.

    When used in this part:
    (a) Agreement means an understanding, arrangement, or association,

[[Page 213]]

written or oral (including any modification, cancellation or appendix)
entered into by or among ocean common carriers and/or marine terminal
operators, but does not include a maritime labor agreement.
    (b) Antitrust laws means the Act of July 2, 1890 (ch. 647, 26 Stat.
209), 15 U.S.C. 1, as amended; the Act of October 15, 1914 (ch. 323, 38
Stat. 730), 15 U.S.C. 12, as amended; the Federal Trade Commission Act
(38 Stat. 717), 15 U.S.C. 41, as amended; sections 73 and 74 of the Act
of August 27, 1894 (28 Stat. 570), 15 U.S.C. 8, 9, as amended; the Act
of June 19, 1936 (ch. 592, 49 Stat. 1526), 15 U.S.C. 13, as amended; the
Antitrust Civil Process Act (76 Stat. 548), 15 U.S.C. 1311, note as
amended; and amendments and Acts supplementary thereto.
    (c) Appendix means a document containing additional material of
limited application and appended to an agreement, distinctly
differentiated from the main body of the basic agreement.
    (d) Assessment agreement means an agreement, whether part of a
collective bargaining agreement or negotiated separately, that provides
for collectively bargained fringe benefit obligations on other than a
uniform man-hour basis regardless of the cargo handled or type of vessel
or equipment utilized.
    (e) Capacity rationalization means a concerted reduction,
stabilization, withholding, or other limitation in any manner whatsoever
by ocean common carriers on the size or number of vessels or available
space offered collectively or individually to shippers in any trade or
service.
    (f) Common carrier means a person holding itself out to the general
public to provide transportation by water of passengers or cargo between
the United States and a foreign country for compensation that:
    (1) Assumes responsibility for the transportation from the port or
point of receipt to the port or point of destination; and
    (2) Utilizes, for all or part of that transportation, a vessel
operating on the high seas or the Great Lakes between a port in the
United States and a port in a foreign country, except that the term does
not include a common carrier engaged in ocean transportation by ferry
boat, ocean tramp, or chemical parcel tanker, or by a vessel when
primarily engaged in the carriage of perishable agricultural
commodities:
    (i) If the common carrier and the owner of those commodities are
wholly owned, directly or indirectly, by a person primarily engaged in
the marketing and distribution of those commodities; and
    (ii) Only with respect to those commodities.
    (g) Conference agreement means an agreement between or among two or
more ocean common carriers that provides for the fixing of and adherence
to uniform tariff rates, charges, practices, and conditions of service
relating to the receipt, carriage, handling and/or delivery of
passengers or cargo for all members. The term does not include joint
service, pooling, sailing, space charter, or transshipment agreements.
    (h) Consultation means a process whereby a conference and a shipper
confer for the purpose of promoting the commercial resolution of
disputes and/or the prevention and elimination of the occurrence of
malpractices.
    (i) Cooperative working agreement means an agreement that
establishes exclusive, preferential, or cooperative working
relationships that are subject to the Act, but that do not fall
precisely within the parameters of any specifically defined agreement.
    (j) Effective agreement means an agreement effective under the Act.
    (k) Equal access agreement means an agreement between ocean common
carriers of different nationalities, as determined by the incorporation
or domicile of the carriers' operating companies, whereby such ocean
common carriers associate for the purpose of gaining reciprocal access
to cargo that is otherwise reserved by national decree, legislation,
statute or regulation to carriage by the merchant marine of the
carriers' respective nations.
    (l) Independent neutral body means a disinterested third party,
authorized by a conference and its members to review, examine, and
investigate alleged breaches or violations of the conference agreement
and/or the conference's properly promulgated tariffs,

[[Page 214]]

rules, or regulations by any member of the conference.
    (m) Information Form means the form containing economic information
that must accompany the filing of certain agreements and modifications.
    (n) Interconference agreement means an agreement between
conferences.
    (o)(1) Joint service agreement means an agreement between ocean
common carriers operating as a joint venture whereby a separate service
is established that:
    (i) Holds itself out in its own distinct operating name;
    (ii) Independently fixes its own rates, charges, practices, and
conditions of service or chooses to participate under its operating name
in another agreement that is duly authorized to determine and implement
such activities;
    (iii) Independently publishes its own tariff or chooses to
participate under its operating name in an otherwise established tariff;
    (iv) Issues its own bills of lading; and
    (v) Acts generally as a single carrier.
    (2) The common use of facilities in a joint service may occur, and
there is no competition between members for cargo in the agreement
trade; but they otherwise maintain their separate identities.
    (p) Marine terminal facilities means one or more structures (and
services connected therewith) comprising a terminal unit, including, but
not limited to docks, berths, piers, aprons, wharves, warehouses,
covered and/or open storage space, cold storage plants, grain elevators
and/or bulk cargo loading and/or unloading structures, landings, and
receiving stations, used for the transmission, care and convenience of
cargo and/or passengers or the interchange of same between land and
ocean common carriers or between two ocean common carriers. This term is
not limited to waterfront or port facilities and includes so-called off-
dock container freight stations at inland locations and any other
facility from which inbound waterborne cargo may be tendered to the
consignee or outbound cargo may be received from shippers for vessel or
container loading.
    (q) Marine terminal operator means a person engaged in the United
States in the business of furnishing wharfage, dock, warehouse, or other
terminal facilities in connection with a common carrier, or in
connection with a common carrier and a water carrier subject to
subchapter II of chapter 135 of title 49 U.S.C. This term does not
include shippers or consignees who exclusively furnish marine terminal
facilities or services in connection with tendering or receiving
proprietary cargo from a common carrier or water carrier.
    (r) Maritime labor agreement means a collective-bargaining agreement
between an employer subject to the Act or group of such employers, and a
labor organization representing employees in the maritime or stevedoring
industry, or an agreement preparatory to such a collective-bargaining
agreement among members of a multi-employer bargaining group, or an
agreement specifically implementing provisions of such a collective-
bargaining agreement or providing for the formation, financing or
administration of a multi-employer bargaining group; but the term does
not include an assessment agreement.
    (s) Modification means any change, alteration, correction, addition,
deletion, or revision of an existing effective agreement or to any
appendix to such an agreement.
    (t) Monitoring Report means the report containing economic
information that must be filed at defined intervals with regard to
certain agreements that are effective under the Act.
    (u) Ocean common carrier means a common carrier that operates, for
all or part of its common carrier service, a vessel on the high seas or
the Great Lakes between a port in the United States and a port in a
foreign country, except that the term does not include a common carrier
engaged in ocean transportation by ferry boat, ocean tramp, or chemical
parcel-tanker.
    (v) Ocean freight forwarder means a person in the United States that
dispatches shipments from the United States via common carriers and
books or otherwise arranges space for those shipments on behalf of
shippers; and processes the documentation or performs related activities
incident to those shipments.

[[Page 215]]

    (w) Person means individuals, corporations, partnerships and
associations existing under or authorized by the laws of the United
States or of a foreign country.
    (x) Pooling agreement means an agreement between ocean common
carriers that provides for the division of cargo carryings, earnings, or
revenue and/or losses between the members in accordance with an
established formula or scheme.
    (y) Port means the place at which an ocean common carrier originates
or terminates (and/or transships) its actual ocean carriage of cargo or
passengers as to any particular transportation movement.
    (z) Rate, for purposes of this part, includes both the basic price
paid by a shipper to an ocean common carrier for a specified level of
transportation service for a stated quantity of a particular commodity,
from origin to destination, on or after a stated effective date or
within a defined time frame, and also any accessorial charges or
allowances that increase or decrease the total transportation cost to
the shipper.
    (aa) Rate agreement means an agreement between ocean common carriers
that authorizes the discussion of or agreement on, either on a binding
basis under a common tariff or on a non-binding basis, any kind of rate
or charge.
    (bb) Sailing agreement means an agreement between ocean common
carriers to provide service by establishing a schedule of ports that
each carrier will serve, the frequency of each carrier's calls at those
ports, and/or the size and capacity of the vessels to be deployed by the
parties. The term does not include joint service agreements, or capacity
rationalization agreements.
    (cc) Service contract means a written contract, other than a bill of
lading or a receipt, between one or more shippers and an individual
ocean common carrier or an agreement between or among ocean common
carriers in which the shipper or shippers makes a commitment to provide
a certain volume or portion of cargo over a fixed time period, and the
ocean common carrier or the agreement commits to a certain rate or rate
schedule and a defined service level, such as assured space, transit
time, port rotation, or similar service features. The contract may also
specify provisions in the event of nonperformance on the part of any
party.
    (dd) Shipper means:
    (1) A cargo owner;
    (2) The person for whose account the ocean transportation is
provided;
    (3) The person to whom delivery is to be made;
    (4) A shippers' association; or
    (5) A non-vessel-operating common carrier (i.e., a common carrier
that does not operate the vessels by which the ocean transportation is
provided and is a shipper in its relationship with an ocean common
carrier) that accepts responsibility for payment of all charges
applicable under the tariff or service contract.
    (ee) Shippers' association means a group of shippers that
consolidates or distributes freight on a nonprofit basis for the members
of the group in order to secure carload, truckload, or other volume
rates or service contracts.
    (ff) Shippers' requests and complaints means a communication from a
shipper to a conference requesting a change in tariff rates, rules,
regulations, or service; protesting or objecting to existing rates,
rules, regulations or service; objecting to rate increases or other
tariff changes; protesting allegedly erroneous service contract or
tariff implementation or application, and/or requesting to enter into a
service contract. Routine information requests are not included in the
term.
    (gg) Space charter agreement means an agreement between ocean common
carriers whereby a carrier (or carriers) agrees to provide vessel space
for use by another carrier (or carriers) in exchange for compensation or
services. The arrangement may include arrangements for equipment
interchange and receipt/delivery of cargo, but may not include capacity
rationalization as defined in this subpart.
    (hh) Sub-trade means the scope of ocean liner cargo carried between
each U.S. port range and each foreign country within the scope of the
agreement. U.S. port ranges are defined as follows:
    (1) Atlantic and Gulf shall encompass ports along the eastern
seaboard and the Gulf of Mexico from the northern

[[Page 216]]

boundary of Maine to Brownsville, Texas. It also includes all ports
bordering on the Great Lakes and their connecting waterways, all ports
in the State of New York on the St. Lawrence River, and all ports in
Puerto Rico and the U.S. Virgin Islands; and
    (2) Pacific shall encompass all ports in the States of Alaska,
Hawaii, California, Oregon, and Washington. It also includes all ports
in Guam, American Samoa, Northern Marianas, Johnston Island, Midway
Island, and Wake Island.
    (ii) Through transportation means continuous transportation between
origin and destination for which a through rate is assessed and which is
offered or performed by one or more carriers, at least one of which is
an ocean common carrier, between a United States point or port and a
foreign point or port.
    (jj) Transshipment agreement means an agreement between an ocean
common carrier serving a port or point of origin and another such
carrier serving a port or point of destination, whereby cargo is
transferred from one carrier to another carrier at an intermediate port
served by direct vessel call of both such carriers in the conduct of
through transportation and the publishing carrier performs the
transportation on one leg of the through transportation on its own
vessel or on a vessel on which it has rights to space under a filed and
effective agreement. Such an agreement does not provide for the
concerted discussion, publication or otherwise fixing of rates for the
account of the cargo interests, conditions of service or other tariff
matters other than the tariff description of the transshipment service
offered, the port of transshipment and the participation of the
nonpublishing carrier. An agreement that involves the movement of cargo
in a domestic offshore trade as part of a through movement of cargo via
transshipment involving the foreign commerce of the United States shall
be considered to be in the foreign commerce of the United States and,
therefore, subject to the Act and this part.
    (kk) Vessel-operating costs means any of the following expenses
incurred by an ocean common carrier: salaries and wages of officers and
unlicensed crew, including relief crews and others regularly employed
aboard the vessel; fringe benefits; expenses associated with consumable
stores, supplies and equipment; vessel fuel and incidental costs; vessel
maintenance and repair expense; hull and machinery insurance costs;
protection and indemnity insurance costs; costs for other marine risk
insurance not properly chargeable to hull and machinery insurance or to
protection and indemnity insurance accounts; and charter hire expenses.



                             Subpart B_Scope



Sec. 535.201  Subject agreements.

    (a) Ocean common carrier agreements. This part applies to agreements
by or among ocean common carriers to:
    (1) Discuss, fix, or regulate transportation rates, including
through rates, cargo space accommodations, and other conditions of
service;
    (2) Pool or apportion traffic, revenues, earnings, or losses;
    (3) Allot ports or restrict or otherwise regulate the number and
character of sailings between ports;
    (4) Limit or regulate the volume or character of cargo or passenger
traffic to be carried;
    (5) Engage in exclusive, preferential, or cooperative working
arrangements among themselves or with one or more marine terminal
operators;
    (6) Control, regulate, or prevent competition in international ocean
transportation; or
    (7) Discuss and agree on any matter related to service contracts.
    (b) Marine terminal operator agreements. This part applies to
agreements among marine terminal operators and among one or more marine
terminal operators and one or more ocean carriers to:
    (1) Discuss, fix, or regulate rates or other conditions of service;
or
    (2) Engage in exclusive, preferential, or cooperative working
arrangements, to the extent that such agreements involve ocean
transportation in the foreign commerce of the United States.



Sec. 535.202  Non-subject agreements.

    This part does not apply to the following agreements:

[[Page 217]]

    (a) Any acquisition by any person, directly or indirectly, of any
voting security or assets of any other person;
    (b) Any maritime labor agreement;
    (c) Any agreement related to transportation to be performed within
or between foreign countries;
    (d) Any agreement among common carriers to establish, operate, or
maintain a marine terminal in the United States; and
    (e) Any agreement among marine terminal operators that exclusively
and solely involves transportation in the interstate commerce of the
United States.



                          Subpart C_Exemptions



Sec. 535.301  Exemption procedures.

    (a) Authority. The Commission, upon application or its own motion,
may by order or rule exempt for the future any class of agreement
involving ocean common carriers and/or marine terminal operators from
any requirement of the Act if it finds that the exemption will not
result in substantial reduction in competition or be detrimental to
commerce.
    (b) Optional filing. Notwithstanding any exemption from filing, or
other requirements of the Act and this part, any party to an exempt
agreement may file such an agreement with the Commission.
    (c) Application for exemption. Applications for exemptions shall
conform to the general filing requirements for exemptions set forth at
Sec. 502.67 of this title.
    (d) Retention of agreement by parties. Any agreement that has been
exempted by the Commission pursuant to section 16 of the Act (46 U.S.C.
40103) shall be retained by the parties and shall be available upon
request by the Bureau of Trade Analysis for inspection during the term
of the agreement and for a period of three years after its termination.

[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50727, Oct. 1, 2009]



Sec. 535.302  Exemptions for certain modifications of effective
agreements.

    (a) Non-substantive modifications to effective agreements. A non-
substantive modification to an effective agreement between ocean common
carriers and/or marine terminal operators, acting individually or
through approved agreements, is one which:
    (1) Reflects changes in the name of any geographic locality stated
therein, the name of the agreement or the name of a party to the
agreement, the names and/or numbers of any other section 4 agreement (46
U.S.C. 40301(a)-(c)) or designated provisions thereof referred to in an
agreement;
    (2) Corrects typographical and grammatical errors in the text of the
agreement or renumbers or reletters articles or sub-articles of
agreements and references thereto in the text; or
    (3) Reflects changes in the titles of persons or committees
designated therein or transfers the functions of such persons or
committees to other designated persons or committees or which merely
establishes a committee.
    (b) Other Miscellaneous Modifications to effective agreements. A
miscellaneous modification to an effective agreement is one that:
    (1) Cancels the agreement or a portion thereof;
    (2) Deletes an agreement party;
    (3) Changes the parties to a conference agreement or a discussion
agreement among passenger vessel operating common carriers that is open
to all ocean common carriers operating passenger vessels of a class
defined in the agreements and that does not contain ratemaking, pooling,
joint service, sailing or space chartering authority; or
    (4) Changes the officials of the agreement and delegations of
authority.
    (c) A copy of a modification described in (a) or (b) of this section
shall be submitted to the Commission but is otherwise exempt from the
waiting period requirement of the Act and this part.
    (d) Parties to agreements may seek a determination from the Director
of the Bureau of Trade Analysis as to whether a particular modification
is a non-substantive or other miscellaneous modification within the
meaning of this section.
    (e) The filing fee for non-substantive or other miscellaneous
modifications is provided in Sec. 535.401(g).

[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50727, Oct. 1, 2009]

[[Page 218]]



Sec. 535.303  Husbanding agreements--exemption.

    (a) A husbanding agreement is an agreement between an ocean common
carrier and another ocean common carrier or marine terminal operator,
acting as the former's agent, under which the agent handles routine
vessel operating activities in port, such as notifying port officials of
vessel arrivals and departures; ordering pilots, tugs, and linehandlers;
delivering mail; transmitting reports and requests from the Master to
the owner/operator; dealing with passenger and crew matters; and
providing similar services related to the above activities. The term
does not include an agreement that provides for the solicitation or
booking of cargoes, signing contracts or bills of lading and other
related matters, nor does it include an agreement that prohibits the
agent from entering into similar agreements with other carriers.
    (b) A husbanding agreement is exempt from the filing requirements of
the Act and of this part.
    (c) The filing fee for optional filing of husbanding agreements is
provided in Sec. 535.401(g).



Sec. 535.304  Agency agreements--exemption.

    (a) An agency agreement is an agreement between an ocean common
carrier and another ocean common carrier or marine terminal operator,
acting as the former's agent, under which the agent solicits and books
cargoes and signs contracts of affreightment and bills of lading on
behalf of the ocean common carrier. Such an agreement may or may not
also include husbanding service functions and other functions incidental
to the performance of duties by agents, including processing of claims,
maintenance of a container equipment inventory control system,
collection and remittance of freight and reporting functions.
    (b) An agency agreement as defined above is exempt from the filing
requirements of the Act and of this part, except those:
    (1) Where a common carrier is to be the agent for a competing ocean
common carrier in the same trade; or
    (2) That permit an agent to enter into similar agreements with more
than one ocean common carrier in a trade.
    (c) The filing fee for optional filing of agency agreements is
provided in Sec. 535.401(g).



Sec. 535.305  Equipment interchange agreements--exemption.

    (a) An equipment interchange agreement is an agreement between two
or more ocean common carriers for:
    (1) The exchange of empty containers, chassis, empty LASH/SEABEE
barges, and related equipment; and
    (2) The transportation of the equipment as required, payment
therefor, management of the logistics of transferring, handling and
positioning equipment, its use by the receiving carrier, its repair and
maintenance, damages thereto, and liability incidental to the
interchange of equipment.
    (b) An equipment interchange agreement is exempt from the filing
requirements of the Act and of this part.
    (c) The filing fee for optional filing of equipment interchange
agreements is provided in Sec. 535.401(g).



Sec. 535.306  Nonexclusive transshipment agreements--exemption.

    (a) A nonexclusive transshipment agreement is a transshipment
agreement by which one ocean common carrier serving a port of origin by
direct vessel call and another such carrier serving a port of
destination by direct vessel call provide transportation between such
ports via an intermediate port served by direct vessel call of both such
carriers and at which cargo will be transferred from one to the other
and which agreement does not:
    (1) Prohibit either carrier from entering into similar agreements
with other carriers;
    (2) Guarantee any particular volume of traffic or available
capacity; or
    (3) Provide for the discussion or fixing of rates for the account of
the cargo interests, conditions of service or other tariff matters other
than the tariff description of the service offered as being by means of
transshipment, the port of transshipment and the participation of the
nonpublishing carrier.
    (b) A nonexclusive transshipment agreement is exempt from the filing
requirements of the Act and of this part,

[[Page 219]]

provided that the tariff provisions set forth in paragraph (c) of this
section and the content requirements of paragraph (d) of this section
are met.
    (c) The applicable tariff or tariffs shall provide:
    (1) The through rate;
    (2) The routings (origin, transshipment and destination ports);
additional charges, if any (i.e. port arbitrary and/or additional
transshipment charges); and participating carriers; and
    (3) A tariff provision substantially as follows:
    The rules, regulations, and rates in this tariff apply to all
transshipment arrangements between the publishing carrier or carriers
and the participating, connecting or feeder carrier. Every participating
connecting or feeder carrier which is a party to transshipment
arrangements has agreed to observe the rules, regulations, rates, and
routings established herein as evidenced by a connecting carrier
agreement between the parties.
    (d) Nonexclusive transshipment agreements must contain the entire
arrangement between the parties, must contain a declaration of the
nonexclusive character of the arrangement and may provide for:
    (1) The identification of the parties and the specification of their
respective roles in the arrangement;
    (2) A specification of the governed cargo;
    (3) The specification of responsibility for the issuance of bills of
lading (and the assumption of common carriage-associated liabilities) to
the cargo interests;
    (4) The specification of the origin, transshipment and destination
ports;
    (5) The specification of the governing tariff(s) and provision for
their succession;
    (6) The specification of the particulars of the nonpublishing
carrier's concurrence/participation in the tariff of the publishing
carrier;
    (7) The division of revenues earned as a consequence of the
described carriage;
    (8) The division of expenses incurred as a consequence of the
described carriage;
    (9) Termination and/or duration of the agreement;
    (10) Intercarrier indemnification or provision for intercarrier
liabilities consequential to the contemplated carriage and such
documentation as may be necessary to evidence the involved obligations;
    (11) The care, handling and liabilities for the interchange of such
carrier equipment as may be consequential to the involved carriage;
    (12) Such rationalization of services as may be necessary to ensure
the cost effective performance of the contemplated carriage; and
    (13) Such agency relationships as may be necessary to provide for
the pickup and/or delivery of the cargo.
    (e) No subject other than as listed in paragraph (d) of this section
may be included in exempted nonexclusive transshipment agreements.
    (f) The filing fee for optional filing of nonexclusive transshipment
agreements is provided in Sec. 535.401(g).



Sec. 535.307  Agreements between or among wholly-owned subsidiaries
and/or their parent--exemption.

    (a) An agreement between or among wholly-owned subsidiaries and/or
their parent means an agreement under section 4 of the Act (46 U.S.C.
40301(a)-(c)) between or among an ocean common carrier or marine
terminal operator subject to the Act and any one or more ocean common
carriers or marine terminal operators which are ultimately owned 100
percent by that ocean common carrier or marine terminal operator, or an
agreement between or among such wholly-owned carriers or terminal
operators.
    (b) All agreements between or among wholly-owned subsidiaries and/or
their parent are exempt from the filing requirements of the Act and this
part.
    (c) Ocean common carriers are exempt from section 10(c) of the Act
(46 U.S.C. 41105) to the extent that the concerted activities proscribed
by that section result solely from agreements between or among wholly-
owned subsidiaries and/or their parent.

[[Page 220]]

    (d) The filing fee for optional filing of these agreements is
provided in Sec. 535.401(g).

[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50728, Oct. 1, 2009]



Sec. 535.309  Marine terminal services agreements--exemption.

    (a) Marine terminal services agreement means an agreement, contract,
understanding, arrangement, or association, written or oral, (including
any modification or appendix) between a marine terminal operator and an
ocean common carrier that applies to marine terminal services that are
provided to and paid for by an ocean common carrier. These services
include: checking, dockage, free time, handling, heavy lift, loading and
unloading, terminal storage, usage, wharfage, and wharf demurrage and
including any marine terminal facilities that may be provided
incidentally to such marine terminal services. The term marine terminal
services agreement does not include any agreement that conveys to the
involved carrier any rights to operate any marine terminal facility by
means of a lease, license, permit, assignment, land rental, or similar
other arrangement for the use of marine terminal facilities or property.
    (b) All marine terminal services agreements as defined in Sec.
535.309(a) are exempt from the filing and waiting period requirements of
the Act and this part on condition that:
    (1) They do not include rates, charges, rules, and regulations that
are determined through a marine terminal conference agreement. Marine
terminal conference agreement means an agreement between or among two or
more marine terminal operators and/or ocean common carriers for the
conduct or facilitation of marine terminal operations that provides for
the fixing of and adherence to uniform maritime terminal rates, charges,
practices and conditions of service relating to the receipt, handling,
and/or delivery of passengers or cargo for all members; and
    (2) No antitrust immunity is conferred under the Act with regard to
terminal services provided to an ocean common carrier under a marine
terminal services agreement that is not filed with the Commission.
    (c) The filing fee for optional filing of terminal services
agreements is provided in Sec. 535.401(g).

[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 65036, Dec. 9, 2009]



Sec. 535.310  Marine terminal facilities agreement--exemption.

    (a) Marine terminal facilities agreement means any agreement between
or among two or more marine terminal operators, or between one or more
marine terminal operators and one or more ocean common carriers, to the
extent that the agreement involves ocean transportation in the foreign
commerce of the United States, that conveys to any of the involved
parties any rights to operate any marine terminal facility by means of
lease, license, permit, assignment, land rental, or other similar
arrangement for the use of marine terminal facilities or property.
    (b) All marine terminal facilities agreements as defined in Sec.
535.310(a) are exempt from the filing and waiting period requirements of
the Act and this part.
    (c) Parties to marine terminal facilities agreements currently in
effect shall provide copies to any requesting party for a reasonable
copying and mailing fee.
    (d) The filing fee for optional filing of terminal facilities
agreements is provided in Sec. 535.401(g).



Sec. 535.311  Low market share agreements--exemption.

    (a) Low market share agreement means any agreement among ocean
common carriers which contains none of the authorities listed in Sec.
535.502(b) and for which the combined market share, based on cargo
volume, of the parties in any of the agreement's sub-trades is either:
    (1) Less than 30 percent, if all parties are members of another
agreement in the same trade or sub-trade containing any of the
authorities listed in Sec. 535.502(b); or
    (2) Less than 35 percent, if at least one party is not a member of
another agreement in the same trade or sub-trade containing any of the
authorities listed in Sec. 535.502(b).

[[Page 221]]

    (b) Low market share agreements are exempt from the waiting period
requirement of the Act and this part, and are effective on filing.
    (c) Parties to agreements may seek a determination from the
Director, Bureau of Trade Analysis, as to whether a proposed agreement
meets the general definition of a low market share agreement.
    (d) The filing fee for low market share agreements is provided in
Sec. 535.401(g).

[69 FR 64414, Nov. 4, 2004, as amended at 70 FR 20303, Apr. 19, 2005]



Sec. 535.312  Vessel charter party-exemption.

    (a) For purposes of this section, vessel charter party shall mean a
contractual agreement between two ocean common carriers for the charter
of the full reach of a vessel, which agreement sets forth the entire
terms and conditions (including duration, charter hire, and geographical
or operational limitations, if any) under which the vessel will be
employed.
    (b) Vessel charter parties, as defined in paragraph (a) of this
section, are exempt from the filing requirements of the Act and this
part.
    (c) The filing fee for optional filing of vessel charter parties is
provided in Sec. 535.401(g).



                     Subpart D_Filing of Agreements



Sec. 535.401  General requirements.

    (a) All agreements (including oral agreements reduced to writing in
accordance with the Act) subject to this part and filed with the
Commission for review and disposition pursuant to section 6 of the
Act(46 U.S.C. 40304, 40306, 41307(b)-(d)), shall be submitted during
regular business hours to the Secretary, Federal Maritime Commission,
Washington, DC 20573. Such filing shall consist of:
    (1) A true copy and seven additional copies of the executed
agreement;
    (2) Where required by this part, an original and five copies of the
completed Information Form referenced at subpart E of this part; and
    (3) A letter of transmittal as described in paragraph (b) of this
section.
    (b) The letter of transmittal shall:
    (1) Identify all of the documents being transmitted including, in
the instance of a modification to an effective agreement, the full name
of the effective agreement, the Commission-assigned agreement number of
the effective agreement and the revision, page and/or appendix number of
the modification being filed;
    (2) Provide a concise, succinct summary of the filed agreement or
modification separate and apart from any narrative intended to provide
support for the acceptability of the agreement or modification;
    (3) Clearly provide the typewritten or otherwise imprinted name,
position, business address, and telephone number of the filing party;
and
    (4) Be signed in the original by the filing party or on the filing
party's behalf by an authorized employee or agent of the filing party.
    (c) To facilitate the timely and accurate publication of the Federal
Register Notice, the letter of transmittal shall also provide a current
list of the agreement's participants where such information is not
provided elsewhere in the transmitted documents.
    (d) Any agreement that does not meet the filing requirements of this
section, including any applicable Information Form requirements, shall
be rejected in accordance with Sec. 535.601(b).
    (e) Assessment agreements shall be filed and shall be effective upon
filing.
    (f) Parties to agreements with expiration dates shall file any
modification seeking renewal for a specific term or elimination of a
termination date in sufficient time to accommodate the 45-day waiting
period required under the Act.
    (g) Fees. The filing fee is $1,780 for new agreements requiring
Commission review and action; $851 for agreement modifications requiring
Commission review and action; $397 for agreements processed under
delegated authority (for types of agreements that can be processed under
delegated authority, see Sec. 501.27(e) of this chapter); $138 for
carrier exempt agreements; and $75 for terminal exempt agreements.

[[Page 222]]

    (h) The fee for the Commission's agreement database report is $6.

[69 FR 64414, Nov. 4, 2004, as amended at 70 FR 10330, Mar. 3, 2005; 74
FR 50728, Oct. 1, 2009; 75 FR 29455, May 26, 2010]



Sec. 535.402  Complete and definite agreements.

    An agreement filed under the Act must be clear and definite in its
terms, must embody the complete, present understanding of the parties,
and must set forth the specific authorities and conditions under which
the parties to the agreement will conduct their operations and regulate
the relationships among the agreement members, unless those details are
matters specifically enumerated as exempt from the filing requirements
of this part.



Sec. 535.403  Form of agreements.

    The requirements of this section apply to all agreements except
marine terminal agreements and assessment agreements.
    (a) Agreements shall be clearly and legibly written. Agreements in a
language other than English shall be accompanied by an English
translation.
    (b) Every agreement shall include a Title Page indicating:
    (1) The full name of the agreement;
    (2) Once assigned, the Commission-assigned agreement number;
    (3) If applicable, the expiration date of the agreement; and
    (4) The original effective date of the agreement whenever the Title
Page is revised.
    (c) Each agreement page (including modifications and appendices)
shall be identified by printing the agreement name (as shown on the
agreement title page) and, once assigned, the applicable Commission-
assigned agreement number at the top of each page. For agreement
modifications, the appropriate amendment number for each modification
should also appear on the page along with the basic agreement number.
    (d) Each agreement and/or modification filed will be signed in the
original by an official or authorized representative of each of the
parties and shall indicate the typewritten full name of the signing
party and his or her position, including organizational affiliation.
Faxed or photocopied signatures will be accepted if replaced with an
original signature as soon as practicable before the effective date.
    (e) Every agreement shall include a Table of Contents indicating the
location of all agreement provisions.



Sec. 535.404  Agreement provisions.

    Generally, each agreement should:
    (a) Indicate the full legal name of each party, including any FMC-
assigned agreement number associated with that name, and the address of
its principal office (not the address of any agent or representative not
an employee of the participating party);
    (b) State the ports or port ranges to which the agreement applies as
well as any inland points or areas to which it also applies; and
    (c) Specify, by organizational title, the administrative and
executive officials determined by the agreement parties to be
responsible for designated affairs of the agreement and the respective
duties and authorities delegated to those officials. At a minimum, the
agreement should specify:
    (1) The official(s) with authority to file the agreement and any
modification thereto and to submit associated supporting materials; and
    (2) A statement as to any designated U.S. representative of the
agreement required by this chapter.



Sec. 535.405  Organization of conference agreements.

    Each conference agreement shall:
    (a) State that, at the request of any member, the conference shall
engage the services of an independent neutral body to fully police the
obligations of the conference and its members. The agreement must
include a description of any such neutral body authority and procedures
related thereto.
    (b) State affirmatively that the conference parties shall not engage
in conduct prohibited by sections 10(c)(1) or 10(c)(3) of the Act (46
U.S.C. 41105(1) or 41105(3)).
    (c) Specify the procedures for consultation with shippers and for
handling shippers' requests and complaints.

[[Page 223]]

    (d) Include provisions for independent action in accordance with
Sec. 535.801 of this part.

[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50728, Oct. 1, 2009]



Sec. 535.406  Modification of agreements.

    The requirements of this section apply to all agreements except
marine terminal agreements and assessment agreements.
    (a) Agreement modifications shall be filed in accordance with the
provisions of Sec. Sec. 535.401, 535.402, and 535.403.
    (b) Agreement modifications shall be made by reprinting the entire
page on which the matter being changed is published (``revised page'').
The revised page shall indicate the consecutive denomination of the
revision (e.g., ``1st Revised Page 7''). Additional material may be
published on a new original page. New original pages inserted between
existing effective pages shall be numbered with an alpha suffix (e.g., a
page inserted between page 7 and page 8 shall be numbered 7a).
    (c) Each revised page shall be accompanied by a duplicate page,
submitted for illustrative purposes only, indicating the language being
modified in the following manner:
    (1) Language being deleted or superseded shall be struck through;
and,
    (2) New and initial or replacement language shall immediately follow
the language being superseded and be underlined.
    (d) If a modification requires the relocation of the provisions of
the agreement, such modification shall be accompanied by a revised Table
of Contents page that shall indicate the new location of the provisions.



Sec. 535.407  Application for waiver.

    (a) Upon a showing of good cause, the Commission may waive the
requirements of Sec. Sec. 535.401, 535.403, 535.404, 535.405, and
535.406.
    (b) Requests for such a waiver shall be submitted in advance of the
filing of the agreement to which the requested waiver would apply and
shall state:
    (1) The specific provisions from which relief is sought;
    (2) The special circumstances requiring the requested relief; and
    (3) Why granting the requested waiver will not substantially impair
effective review of the agreement.



Sec. 535.408  Activities that may be conducted without further filings.

    (a) Agreements that arise from authority of an effective agreement
but whose terms are not fully set forth in the effective agreement to
the extent required by Sec. 535.402 are permitted without further
filing only if they:
    (1) Are themselves exempt from the filing requirements of this part
(pursuant to subpart C--Exemptions of this part); or
    (2) Are listed in paragraph (b) of this section.
    (b) Unless otherwise exempt in subpart C of this part, only the
following technical or operational matters of an agreement's affairs
established pursuant to express enabling authority in an agreement are
considered part of the effective agreement and do not require further
filing under section 5 of the Act (46 U.S.C. 40301(d)-(e), 40302-40303,
40305):
    (1) Establishment of tariff rates, rules and regulations and their
joint publication;
    (2) The terms and conditions of space allocation and slot sales, the
procedures for allocating space, the establishment of space charter
rates, and the terms and conditions of charter parties;
    (3) Stevedoring, terminal, and related services including the
operation of tonnage centers or other joint container marshaling
facilities;
    (4) The following administrative matters:
    (i) Scheduling of agreement meetings;
    (ii) Collection, collation and circulation of data and reports from
or to members;
    (iii) Procurement, maintenance, or sharing of office facilities,
furnishings, equipment and supplies, the allocation and assessment of
costs thereof, or the provisions for the administration and management
of such agreements by duly appointed individuals;
    (iv) Procedures for anticipating parties' space requirements;
    (v) Maintenance of books and records; and

[[Page 224]]

    (vi) Details as to the following matters as between parties to the
agreement: insurance, procedures for resolutions of disputes relating to
loss and/or damage of cargo, and force majeure clauses;
    (5) The following operational matters:
    (i) Port rotations and schedule adjustments; and
    (ii) Changes in vessel size, number of vessels, or vessel
substitution or replacement, if the resulting change is within a
capacity range specified in the agreement; and
    (6) Neutral body policing (limited to the description of neutral
body authority and procedures related thereto).

[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50728, Oct. 1, 2009]



                 Subpart E_Information Form Requirements



Sec. 535.501  General requirements.

    (a) Agreements and modifications to agreements identified in Sec.
535.502 shall be accompanied by an Information Form containing
information and data on the agreement and the parties' authority under
the agreement.
    (b) Parties to an agreement subject to this subpart shall complete
and submit an original and five copies of the Information Form at the
time the agreement is filed. A copy of the Form in Microsoft Word and
Excel format may be downloaded from the Commission's home page at http:/
/www.fmc.gov, or a paper copy of the Form may be obtained from the
Bureau of Trade Analysis. In lieu of submitting paper copies, parties
may complete and submit their Information Form in the Commission's
prescribed electronic format, either on diskette or CD-ROM.
    (c) A complete response in accordance with the instructions on the
Information Form shall be supplied to each item. If a party to the
agreement is unable to supply a complete response, that party shall
provide either estimated data (with an explanation of why precise data
are not available) or a detailed statement of reasons for noncompliance
and the efforts made to obtain the required information.
    (d) Agreement parties may supplement the Information Form with any
additional information or material to assist the Commission's review of
an agreement.
    (e) The Information Form and any additional information submitted in
conjunction with the filing of an agreement shall not be disclosed by
the Commission except as provided in Sec. 535.608.



Sec. 535.502  Agreements subject to the Information Form requirements.

    Agreements and modifications to agreements between or among ocean
common carriers subject to this subpart are:
    (a) All agreements identified in Sec. 535.201(a), except for low
market share agreements identified in Sec. 535.311;
    (b) Modifications to an agreement that add any of the following
authorities:
    (1) The discussion of, or agreement upon, whether on a binding basis
under a common tariff or a non-binding basis, any kind of rate or
charge;
    (2) The discussion of, or agreement on, capacity rationalization;
    (3) The establishment of a joint service;
    (4) The pooling or division of cargo traffic, earnings, or revenues
and/or losses; or
    (5) The discussion of, or agreement on, any service contract matter;
and
    (c) Modifications that expand the geographic scope of an agreement
containing any authority identified in Sec. 535.502(b).



Sec. 535.503  Information Form.

    (a) The Information Form, with instructions, for agreements and
modifications to agreements subject to this subpart, are set forth in
sections I through V of appendix A of this part. The instructions should
be read in conjunction with the Act and this part.
    (b) The Information Form shall apply as follows:
    (1) Sections I and V shall be completed by parties to all agreements
identified in Sec. 535.502;
    (2) Section II shall be completed by parties to agreements
identified in Sec. 535.502(a) that contain any of the following
authorities: the charter or use

[[Page 225]]

of vessel space in exchange for compensation or services; or the
rationalization of sailings or services relating to a schedule of ports,
the frequency of vessel calls at ports, or the size and capacity of
vessels for deployment. Such authorities do not include the
establishment of a joint service, nor capacity rationalization;
    (3) Section III shall be completed by parties to agreements
identified in Sec. 535.502 that contain the authority to discuss or
agree on capacity rationalization; and
    (4) Section IV shall be completed by parties to agreements
identified in Sec. 535.502 that contain any of the following
authorities:
    (i) The discussion of, or agreement upon, whether on a binding basis
under a common tariff or a non-binding basis, any kind of rate or
charge;
    (ii) The establishment of a joint service;
    (iii) The pooling or division of cargo traffic, earnings, or
revenues and/or losses; or
    (iv) The discussion of, or agreement on, any service contract
matter.



Sec. 535.504  Application for waiver.

    (a) Upon a showing of good cause, the Commission may waive any part
of the Information Form requirements in this subpart.
    (b) A request for such a waiver must be submitted and approved by
the Commission in advance of the filing of the Information Form to which
the requested waiver would apply. Requests for a waiver shall be
submitted in writing to the Director, Bureau of Trade Analysis, Federal
Maritime Commission, Washington, DC 20573-0001, and shall state:
    (1) The specific requirements from which relief is sought;
    (2) The special circumstances requiring the requested relief;
    (3) Relevant trade and industry data and information to substantiate
and support the special circumstances requiring the requested relief;
    (4) Why granting the requested waiver will not substantially impair
effective review of the agreement; and
    (5) A description of the full membership, geographic scope, and
authority of the agreement or the agreement modification that is to be
filed with the Commission.
    (c) The Commission may take into account the presence or absence of
shipper complaints as well as the past compliance of the agreement
parties with any reporting requirement under this part in considering an
application for a waiver.



                     Subpart F_Action on Agreements



Sec. 535.601  Preliminary review-rejection of agreements.

    (a) The Commission shall make a preliminary review of each filed
agreement to determine whether the agreement is in compliance with the
requirements of the Act and this part and, where applicable, whether the
accompanying Information Form is complete or, where not complete,
whether the deficiency is adequately explained or is excused by a waiver
granted by the Commission under Sec. 535.504.
    (b)(1) The Commission shall reject any agreement that fails to
comply substantially with the filing and Information Form of the Act and
this part. The Commission shall notify the filing party in writing of
the reason for rejection of the agreement. The original filing, along
with any supplemental information or documents submitted, shall be
returned to the filing party.
    (2) Should a rejected agreement be refiled, the full 45-day waiting
period will apply to the refiled agreement.



Sec. 535.602  Federal Register notice.

    (a) A notice of any filed agreement will be transmitted to the
Federal Register within seven days of the date of filing.
    (b) The notice will include:
    (1) A short title for the agreement;
    (2) The identity of the parties to the agreement and the filing
party;
    (3) The Federal Maritime Commission agreement number;
    (4) A concise summary of the agreement's contents;
    (5) A statement that the agreement is available for inspection at
the Commission's offices; and
    (6) The final date for filing comments regarding the agreement.

[[Page 226]]



Sec. 535.603  Comment.

    (a) Persons may file with the Secretary written comments regarding a
filed agreement. Such comments will be submitted in an original and ten
(10) copies and are not subject to any limitations except the time
limits provided in the Federal Register notice. Late-filed comments will
be received only by leave of the Commission and only upon a showing of
good cause. If requested, comments and any accompanying material shall
be accorded confidential treatment to the fullest extent permitted by
law. Such requests must include a statement of legal basis for
confidential treatment including the citation of appropriate statutory
authority. Where a determination is made to disclose all or a portion of
a comment, notwithstanding a request for confidentiality, the party
requesting confidentiality will be notified prior to disclosure.
    (b) The filing of a comment does not entitle a person to:
    (1) A reply to the comment by the Commission;
    (2) The institution of any Commission or court proceeding;
    (3) Discussion of the comment in any Commission or court proceeding
concerning the filed agreement; or
    (4) Participation in any proceeding that may be instituted.



Sec. 535.604  Waiting period.

    (a) The waiting period before an agreement becomes effective shall
commence on the date that an agreement is filed with the Commission.
    (b) Unless suspended by a request for additional information or
extended by court order, the waiting period terminates and an agreement
becomes effective on the later of the 45th day after the filing of the
agreement with the Commission or on the 30th day after publication of
notice of the filing in the Federal Register.
    (c) The waiting period is suspended on the date when the Commission,
either orally or in writing, requests additional information or
documentary materials pursuant to section 6(d) of the Act (46 U.S.C.
40304(d)). A new 45-day waiting period begins on the date of receipt of
all the additional material requested or of a statement of the reasons
for noncompliance, and the agreement becomes effective in 45 days unless
the waiting period is further extended by court order or the Commission
grants expedited review.

[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50728, Oct. 1, 2009; 74
FR 65036, Dec. 9, 2009]



Sec. 535.605  Requests for expedited review.

    (a) Upon written request of the filing party, the Commission may
shorten the waiting period. In support of a request, the filing party
should provide a full explanation, with reference to specific facts and
circumstances, of the necessity for a shortened waiting period. In
reviewing requests, the Commission will consider the parties' needs and
the Commission's ability to complete its review of the agreement's
potential impact. In no event, however, may the period be shortened to
less than fourteen (14) days after the publication of the notice of the
filing of the agreement in the Federal Register. When a request for
expedited review is denied, the normal 45-day waiting period will apply.
Requests for expedited review will not be granted routinely and will be
granted only on a showing of good cause. Good cause would include, but
is not limited to, the impending expiration of the agreement; an
operational urgency; Federal or State imposed time limitations; or other
reasons that, in the Commission's discretion, constitute grounds for
granting the request.
    (b) A request for expedited review will be considered for an
agreement whose 45-day waiting period has begun anew after being stopped
by a request for additional information.



Sec. 535.606  Requests for additional information.

    (a) The Commission may request from the filing party any additional
information and documents necessary to complete the statutory review
required by the Act. The request shall be made prior to the expiration
of the 45-day waiting period. All responses to a request for additional
information shall be submitted to the Director, Bureau of Trade
Analysis, Federal Maritime Commission, Washington, DC 20573.

[[Page 227]]

    (b) Where the Commission has made a request for additional
information, the agreement's effective date will be 45 days after
receipt of the complete response to the request for additional
information. If all questions are not fully answered or requested
documents are not supplied, the parties must include a statement of
reasons why questions were not fully answered or documents supplied. In
the event all material is not submitted, the agreement's effective date
will be 45 days after receipt of both the documents and information
which are submitted, if any, and the statement indicating the reasons
for noncompliance. The Commission may, upon notice to the Attorney
General, and pursuant to sections 6(i) and 6(k) of the Act (46 U.S.C.
41307(c) and 41307(d)), request the United States District Court for the
District of Columbia to further extend the agreement's effective date
until there has been substantial compliance.
    (c) A request for additional information may be made orally or in
writing. In the case of an oral request, a written confirmation of the
request shall be mailed to the filing party within seven days of the
oral request.
    (d) The Commission will publish a notice in the Federal Register
that it has requested additional information and serve that notice on
any commenting parties. The notice will indicate only that a request was
made and will not specify what information is being sought. Interested
parties will have fifteen (15) days after publication of the notice to
file further comments on the agreement.

[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50728, Oct. 1, 2009]



Sec. 535.607  Failure to comply with requests for additional
information.

    (a) A failure to comply with a request for additional information
results when a person filing an agreement, or an officer, director,
partner, agent, or employee thereof fails to substantially respond to
the request or does not file a satisfactory statement of reasons for
noncompliance. An adequate response is one which directly addresses the
Commission's request. When a response is not received by the Commission
within a specified time, failure to comply will have occurred.
    (b) The Commission may, pursuant to section 6(i) of the Act (46
U.S.C. 41307(c)), request relief from the United States District Court
for the District of Columbia when it considers that there has been a
failure to substantially comply with a request for additional
information. The Commission may request that the court:
    (1) Order compliance with the request;
    (2) Extend the review period until there has been substantial
compliance; or
    (3) Grant other equitable relief that under the circumstances seems
necessary or appropriate.
    (c) Where there has been a failure to substantially comply, section
6(i)(2) of the Act (46 U.S.C. 41307(c)(2)) provides that the court shall
extend the review period until there has been substantial compliance.

[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50729, Oct. 1, 2009]



Sec. 535.608  Confidentiality of submitted material.

    (a) Except for an agreement filed under section 5 of the Act (46
U.S.C. 40301(d)-(e), 40302-40303, 40305), all information submitted to
the Commission by the filing party will be exempt from disclosure under
5 U.S.C. 552. Included in this disclosure exemption is information
provided in the Information Form, voluntary submission of additional
information, reasons for noncompliance, and replies to requests for
additional information.
    (b) Information that is confidential pursuant to paragraph (a) of
this section may be disclosed, however, to the extent:
    (1) It is relevant to an administrative or judicial action or
proceeding; or
    (2) It is disclosed to either body of Congress or to a duly
authorized committee or subcommittee of Congress.
    (c) Parties may voluntarily disclose or make information publicly
available. If parties elect to disclose information they shall promptly
inform the Commission.

[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50729, Oct. 1, 2009]

[[Page 228]]



Sec. 535.609  Negotiations.

    At any time after the filing of an agreement and prior to the
conclusion of judicial injunctive proceedings, the filing party or an
authorized representative may submit additional factual or legal support
for an agreement or may propose modifications of an agreement. Such
negotiations between Commission personnel and filing parties may
continue during the pendency of injunctive proceedings. Shippers, other
government departments or agencies, and other third parties may not
participate in these negotiations.



                    Subpart G_Reporting Requirements



Sec. 535.701  General requirements.

    (a) Parties to agreements identified in Sec. 535.702(a) shall
submit quarterly Monitoring Reports on an ongoing basis for as long as
the agreement remains in effect, containing information and data on the
agreement and the parties' authority under the agreement.
    (b) Parties to agreements identified in Sec. 535.704 are required
to submit minutes of their meetings for as long as their agreements
remain in effect.
    (c) If a joint service is a party to an agreement that is subject to
the requirements of this subpart, the joint service shall be treated as
one member of that agreement for purposes of that agreement's Monitoring
Reports.
    (d) Monitoring Reports and minutes required to be filed by this
subpart should be submitted to: Director, Bureau of Trade Analysis,
Federal Maritime Commission, Washington, DC 20573-0001. A copy of the
Monitoring Report form in Microsoft Word and Excel format may be
downloaded from the Commission's home page at http://www.fmc.gov, or a
paper copy may be obtained from the Bureau of Trade Analysis. In lieu of
submitting paper copies, parties may complete and submit their
Monitoring Reports in the Commission's prescribed electronic format,
either on diskette or CD-ROM.
    (e)(1) The regulations in this paragraph (e) are stayed until
further notice.
    (2) Reports and minutes required to be filed by this subpart may be
filed by direct electronic transmission in lieu of hard copy. Detailed
information on electronic transmission is available from the
Commission's Bureau of Trade Analysis. Certification and signature
requirements of this subpart can be met on electronic transmissions
through use of a pre-assigned Personal Identification Number (PIN)
obtained from the Commission. PINs can be obtained by submission by an
official of the filing party of a statement to the Commission agreeing
that inclusion of the PIN in the transmission constitutes the signature
of the official. Only one PIN will be issued for each agreement. Where a
filing party has more than one official authorized to file minutes or
reports, each additional official must submit such a statement
countersigned by the principal official of the filing party. Each filing
official will be issued a unique password. A PIN or designation of
authorized filing officials may be canceled or changed at any time upon
the written request of the principal official of the filing party.
Direct electronic transmission filings may be made at any time except
between the hours of 8:30 a.m. and 2 p.m. Eastern time on Commission
business days.
    (f) Time for filing. Except as otherwise instructed, Monitoring
Reports shall be filed within 75 days of the end of each calendar
quarter. Minutes of meetings shall be filed within 21 days after the
meeting. Other documents shall be filed within 15 days of the receipt of
a request for documents.
    (g) A complete response in accordance with the instructions on the
Monitoring Report shall be supplied to each item. If a party to an
agreement is unable to supply a complete response, that party shall
provide either estimated data (with an explanation of why precise data
are not available) or a detailed statement of reasons for noncompliance
and the efforts made to obtain the required information.
    (h) A Monitoring Report for a particular agreement may be
supplemented with any other relevant information or documentary
material.
    (i) Confidentiality. (1) The Monitoring Reports, minutes, and any
other additional information submitted by a particular agreement will be
exempt from

[[Page 229]]

disclosure under 5 U.S.C. 552, except to the extent:
    (i) It is relevant to an administrative or judicial action or
proceeding; or
    (ii) It is disclosed to either body of Congress or to a duly
authorized committee or subcommittee of Congress.
    (2) Parties may voluntarily disclose or make Monitoring Reports,
minutes or any other additional information publicly available. The
Commission must be promptly informed of any such voluntary disclosure.
    (j) Monitoring Report or alternative periodic reporting requirements
in this subpart shall not be construed to authorize the exchange or use
by or among agreement members of information required to be submitted.

    Effective Date Note: At 69 FR 64414, Nov. 4, 2004, paragraph (e) of
Sec. 535.701 was stayed indefinitely.



Sec. 535.702  Agreements subject to Monitoring Report and alternative
periodic reporting requirements.

    (a) Agreements subject to the Monitoring Report requirements of this
subpart are:
    (1) An agreement that contains the authority to discuss or agree on
capacity rationalization; or
    (2) Where the parties to an agreement hold a combined market share,
based on cargo volume, of 35 percent or more in the entire U.S. inbound
or outbound geographic scope of the agreement and the agreement contains
any of the following authorities:
    (i) The discussion of, or agreement upon, whether on a binding basis
under a common tariff or a non-binding basis, any kind of rate or
charge;
    (ii) The establishment of a joint service;
    (iii) The pooling or division of cargo traffic, earnings, or
revenues and/or losses; or
    (iv) The discussion of, or agreement on, any service contract
matter.
    (b) The determination of an agreement's reporting obligation under
Sec. 535.702(a)(2) in the first instance shall be based on the market
share data reported on the agreement's Information Form pursuant to
Sec. 535.503. Thereafter, at the beginning of each calendar year, the
Bureau of Trade Analysis will notify the agreement parties of any
changes in its reporting requirements based on market share data
reported on the agreement's quarterly Monitoring Report for the previous
second quarter (April-June).
    (c) The Commission may require, as necessary, that the parties to an
agreement with market share below the 35 percent threshold, as
identified and defined in Sec. 535.702(a)(2), submit Monitoring Reports
pursuant to Sec. 535.703.
    (d) In addition to or instead of the Monitoring Report in Sec.
535.703, the Commission may prescribe, as necessary, alternative
periodic reporting requirements for parties to any agreement identified
in Sec. 535.201.



Sec. 535.703  Monitoring Report form.

    (a) For agreements subject to the Monitoring Report requirements in
Sec. 535.702(a), the Monitoring Report form, with instructions, is set
forth in sections I through III of appendix B of this part. The
instructions should be read in conjunction with the Act and this part.
    (b) The Monitoring Report shall apply as follows:
    (1) Section I shall be completed by parties to agreements identified
in Sec. 535.702(a)(1);
    (2) Section II shall be completed by parties to agreements
identified in Sec. 535.702(a)(2); and
    (3) Section III shall be completed by parties to all agreements
identified in Sec. 535.702(a).
    (c) In accordance with the requirements and instructions in appendix
B of this part, parties to an agreement subject to part 2(C) of section
I of the Monitoring Report shall submit a narrative statement on any
significant reductions in vessel capacity that the parties will
implement under the agreement. The term ``a significant reduction'' is
defined in appendix B. The narrative statement shall be submitted to the
Director, Bureau of Trade Analysis, no later than 15 days after a
significant reduction in vessel capacity has been agreed upon by the
parties but prior to the implementation of the actual reduction under
the agreement.
    (d)(1) The Commission may require, in its discretion, that the
information on the top agreement commodities in part 4 of section II of
the Monitoring

[[Page 230]]

Report be reported on a sub-trade basis, as defined in appendix B of
this part, rather than on an agreement-wide basis. When commodity sub-
trade information is required under this section, the Commission shall
notify the parties to the agreement.
    (2) For purposes of Sec. 535.703(d)(1), the top agreement
commodities shall mean the top 10 liner commodities (including
commodities not subject to tariff publication) carried by all the
agreement parties in each sub-trade within the geographic scope of the
agreement during the calendar quarter. Where the agreement covers both
U.S. inbound and outbound liner movements, inbound and outbound sub-
trades shall be stated separately. All other instructions, definitions,
and terms shall apply as specified and required in appendix B of this
part.



Sec. 535.704  Filing of minutes.

    (a) Agreements required to file minutes. (1) This section applies to
agreements authorized to engage in any of the following activities:
discussion or establishment of any type of rates or charges, whether in
tariffs or service contracts; pooling or apportionment of cargo traffic;
discussion of revenues, losses, or earnings; or discussion or agreement
on service contract matters, including the establishment of voluntary
service contract guidelines.
    (2) Each agreement to which this section applies shall file with the
Commission, through a designated official, minutes of all meetings
defined in paragraph (b) of this section, except as provided in
paragraph (d) of this section.
    (b) Meetings. For purposes of this subpart, the term meeting shall
include all discussions at which any agreement is reached among any
number of the parties to an agreement relating to the business of the
agreement, and all other discussions among three or more members of the
agreement (or all members if fewer than three) relating to the business
of the agreement. This includes, but is not limited to, meetings of the
members' agents, principals, owners, officers, employees,
representatives, committees, or subcommittees, and communications among
members facilitated by agreement officials. Discussions conducted by
telephone, electronic device, or other means are included.
    (c) Content of minutes. Minutes shall include the following:
    (1) The date, time, and place of the meeting;
    (2) A list of participants and companies represented;
    (3) A description of discussions detailed enough so that a non-
participant reading the minutes could reasonably gain a clear
understanding of the nature and extent of the discussions and, where
applicable, any decisions reached. Such description need not disclose
the identity of the parties that participated in the discussion or the
votes taken; and
    (4) Any report, circular, notice, statistical compilation,
analytical study, survey, or other work distributed, discussed, or
exchanged at the meeting, whether presented by oral, written,
electronic, or other means. Where the aforementioned materials are
reasonably available to the public, a citation to the work or relevant
part thereof is acceptable in lieu of the actual work. Any documents
submitted to the Commission pursuant to this section need not disclose
the identity of the party or parties that circulated the document at the
meeting.
    (d) Exemption. For parties to agreements subject to this section,
the following exemptions shall apply:
    (1) Minutes of meetings between parties are not required to reflect
discussions of matters set forth in Sec. 535.408(b)(2), (b)(3),
(b)(4)(iii), (b)(4)(iv), (b)(4)(v), and (b)(4)(vi);
    (2) Minutes of meetings between parties are not required to reflect
discussion of matters set forth in Sec. 535.408(b)(5) to the extent
that such discussions involve minor operational matters that have little
or no impact on the frequency of vessel calls at ports or the amount of
vessel capacity offered by the parties in the geographic scope of the
agreement; and
    (3) Minutes of meetings between parties are not required to reflect
discussions of or actions taken with regard to rates that, if adopted,
would be required to be published in an appropriate tariff. This
exemption does not apply to discussions concerning general

[[Page 231]]

rate policy, general rate changes, the opening or closing of rates,
service contracts, or time/volume rates.
    (e) Serial numbers. Each set of minutes filed with the Commission
shall include the agreement name and FMC number and a unique
identification number indicating the sequence in which the meeting took
place during the calendar year.

[69 FR 64414, Nov. 4, 2004, as amended at 70 FR 20303, Apr. 19, 2005]



Sec. 535.705  Application for waiver.

    (a) Upon a showing of good cause, the Commission may waive any
requirement of this subpart.
    (b) A request for such a waiver must be submitted and approved by
the Commission in advance of the filing of the Monitoring Report or
minutes to which the requested waiver would apply. Requests for a waiver
shall be submitted in writing to the Director, Bureau of Trade Analysis,
Federal Maritime Commission, Washington, DC 20573-0001, and shall state
and provide the following:
    (1) The specific requirements from which relief is sought;
    (2) The special circumstances requiring the requested relief;
    (3) Relevant trade and industry data and information to substantiate
and support the special circumstances requiring the requested relief;
and
    (4) Why granting the requested waiver will not substantially impair
effective monitoring of the agreement.
    (c) The Commission may take into account the presence or absence of
shipper complaints as well as the past compliance of the agreement
parties with any reporting requirement under this part in considering an
application for a waiver.



              Subpart H_Mandatory and Prohibited Provisions



Sec. 535.801  Independent action.

    (a) Each conference agreement shall specify the independent action
(``IA'') procedures of the conference, which shall provide that any
conference member may take independent action on any rate or service
item upon not more than 5 calendar days' notice to the conference and
shall otherwise be in conformance with section 5(b)(8) of the Act (46
U.S.C. 40303(b)(8)).
    (b)(1) Each conference agreement that provides for a period of
notice for independent action shall establish a fixed or maximum period
of notice to the conference. A conference agreement shall not require or
permit a conference member to give more than 5 calendar days' notice to
the conference, except that in the case of a new or increased rate the
notice period shall conform to the tariff publication requirements of
this chapter.
    (2) A conference agreement shall not prescribe notice periods for
adopting, withdrawing, postponing, canceling, or taking other similar
actions on independent actions.
    (c) Each conference agreement shall indicate the conference
official, single designated representative, or conference office to
which notice of independent action is to be provided. A conference
agreement shall not require notice of independent action to be given by
the proposing member to the other parties to the agreement.
    (d) A conference agreement shall not require a member who proposes
independent action to attend a conference meeting, to submit any further
information other than that necessary to accomplish the publication of
the independent tariff item, or to comply with any other procedure for
the purpose of explaining, justifying, or compromising the proposed
independent action.
    (e) A conference agreement shall specify that any new rate or
service item proposed by a member under independent action (except for
exempt commodities not published in the conference tariff) shall be
included by the conference in its tariff for use by that member
effective no later than 5 calendar days after receipt of the notice and
by any other member that notifies the conference that it elects to adopt
the independent rate or service item on or after its effective date.
    (f)(1) As it pertains to this part, ``adopt'' means the assumption
in identical form of an originating member's independent action rate or
service item, or a particular portion of such a rate or service item. If
a carrier adopts

[[Page 232]]

an IA at a lower rate than the conference rate when there is less than
30 days remaining on the original IA, the adopted IA should be made to
expire 30 days after its effectiveness to comply with the statutory 30-
day notice requirement. In the case of an independent action time/volume
rate (``IA TVR''), the dates of the adopting IA may vary from the dates
of the original IA, so long as the duration of the adopting IA is the
same as that of the originating IA. Furthermore, no term other than
``adopt'' (e.g., ``follow,'' ``match'') can be used to describe the
action of assuming as one's own an initiating carrier's IA.
Additionally, if a party to an agreement chooses to take on an IA of
another party, but alters it, such action is considered a new IA and
must be published pursuant to the IA publication and notice provisions
of the applicable agreement.
    (2) An IA TVR published by a member of a ratemaking agreement may be
adopted by another member of the agreement, provided that the adopting
member takes on the original IA TVR in its entirety without change to
any aspect of the original rate offering (except beginning and ending
dates in the time period) (i.e., a separate TVR with a separate volume
of cargo but for the same duration). Any subsequent IA TVR offering that
results in a change in any aspect of the original IA TVR, other than the
name of the offering carrier or the beginning date of the adopting IA
TVR, is a new independent action and shall be processed in accordance
with the provisions of the applicable agreement. The adoption procedures
discussed above do not authorize the participation by an adopting
carrier in the cargo volume of the originating carrier's IA TVR. Member
lines may publish and participate in joint IA TVRs, if permitted to do
so under the terms of their agreement; however, no carrier may
participate in an IA TVR already published by another carrier.
    (g) A conference agreement shall not require or permit individual
member lines to be assessed on a per carrier usage basis the costs and/
or administrative expenses incurred by the agreement in processing
independent action filings.
    (h) A conference agreement may not permit the conference to
unilaterally designate an expiration date for an independent action
taken by a member line. The right to determine the duration of an IA
remains with the member line, and a member line must be given the
opportunity to designate whatever duration it chooses for its IA,
regardless if the duration is for a specified period or open ended. Only
in instances where a member line gives its consent to the conference, or
where a member line freely elects not to provide for the duration of its
IA after having been given the opportunity, can the conference designate
an expiration date for the member line's IA.
    (i) Any new conference agreement or any modification to an existing
conference agreement that does not comply with the requirements of this
section shall be rejected pursuant to Sec. 535.601 of this part.
    (j) If ratemaking is by sections within a conference, then any
notice to the conference required by Sec. 535.801 may be made to the
particular ratemaking section.

[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50729, Oct. 1, 2009]



Sec. 535.802  Service contracts.

    (a) Ocean common carrier agreements may not prohibit or restrict a
member or members of the agreement from engaging in negotiations for
service contracts with one or more shippers.
    (b) Ocean common carrier agreements may not require a member or
members of the agreement to disclose a negotiation on a service
contract, or the terms and conditions of a service contract, other than
those terms or conditions required by section 8(c)(3) of the Act (46
U.S.C. 40502(d)).
    (c) Ocean common carrier agreements may not adopt mandatory rules or
requirements affecting the right of an agreement member or agreement
members to negotiate or enter into service contracts.
    (d) An agreement may provide authority to adopt voluntary guidelines
relating to the terms and procedures of an agreement member's or
agreement members' service contracts if the guidelines explicitly state
the right of

[[Page 233]]

the members of the agreement not to follow these guidelines.
    (e) Voluntary guidelines shall be submitted to the Director, Bureau
of Trade Analysis, Federal Maritime Commission, Washington, DC 20573-
0001. Voluntary guidelines shall be kept confidential in accordance with
Sec. 535.608 of this part. Use of voluntary guidelines prior to their
submission is prohibited.

[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50729, Oct. 1, 2009]



Sec. 535.803  Ocean freight forwarder compensation.

    No conference or group of two or more ocean common carriers may:
    (a) Deny to any member of such conference or group the right, upon
notice of not more than 5 calendar days, to take independent action on
any level of compensation paid to an ocean freight forwarder; or
    (b) Agree to limit the payment of compensation to an ocean freight
forwarder to less than 1.25 percent of the aggregate of all rates and
charges applicable under the tariff assessed against the cargo on which
the forwarding services are provided.



                           Subpart I_Penalties



Sec. 535.901  Failure to file.

    Any person operating under an agreement, involving activities
subject to the Act pursuant to sections 4 and 5(a) of the Act (46 U.S.C.
40301(a)-(c) and 40302) and this part and not exempted pursuant to
section 16 of the Act (46 U.S.C. 40103) or excluded from filing by the
Act, that has not been filed and that has not become effective pursuant
to the Act and this part is in violation of the Act and this part and is
subject to the civil penalties set forth in section 13(a) of the Act (46
U.S.C. 41107).

[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50729, Oct. 1, 2009]



Sec. 535.902  Falsification of reports.

    Knowing falsification of any report required by the Act or this
part, including knowing falsification of any item in any applicable
agreement information and/or reporting requirements pursuant to subparts
E and G of this part, is a violation of the rules of this part and is
subject to the civil penalties set forth in section 13(a) of the Act (46
U.S.C. 41107) and may be subject to the criminal penalties provided for
in 18 U.S.C. 1001.

[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50730, Oct. 1, 2009]



                      Subpart J_Paperwork Reduction



Sec. 535.991  OMB control numbers assigned pursuant to the Paperwork
Reduction Act.

    This section displays the control number assigned to information
collection requirements of the Commission in this part by the Office of
Management and Budget pursuant to the Paperwork Reduction Act of 1995,
Pub. L. 104-13. The Commission intends that this section comply with the
requirements of section 3507(a)(3) of the Paperwork Reduction Act, which
requires that agencies display a current control number assigned by the
Director of the Office of Management and Budget (OMB) for each agency
information collection requirement in the following table:

------------------------------------------------------------------------
                                                            Current OMB
                         Section                            control No.
------------------------------------------------------------------------
535.101 through 535.902.................................       3072-0045
------------------------------------------------------------------------



     Sec. Appendix A to Part 535--Information Form and Instructions

                      Information Form Instructions

    1. All agreements and modifications to agreements between or among
ocean common carriers identified in 46 CFR 535.502 must be accompanied
by a completed Information Form to the full extent required in sections
I through V of this Form. Sections I and V must be completed by all such
agreements. In addition, sections II, III and IV must be completed, as
applicable, in accordance with the authority contained in each
agreement. Where an agreement containing multiple authorities is subject
to duplicate reporting requirements in the various sections of this
Form, the parties may provide only one response so long as the reporting
requirements within each section are fully addressed. The Information
Form specifies the data and information which must be reported for each
section and the format in which it must be provided. If a party to an
agreement is unable to supply a complete response to any item of this
Form, that party

[[Page 234]]

shall provide either estimated data (with an explanation of why precise
data are not available) or a detailed statement of reasons for
noncompliance and the efforts made to obtain the required information.
For purposes of this Form, if one of the agreement signatories is a
joint service operating under an effective agreement, that signatory
shall respond to the Form as a single agreement party.
    2. For clarification of the agreement terminology used in this Form,
the parties may refer to the definitions provided in 46 CFR 535.104. In
addition, the following definitions shall apply for purposes of this
Form: liner movement means the carriage of liner cargo by liner
operators; liner cargo means cargo carried on liner vessels in a liner
service; liner operator means a vessel-operating common carrier engaged
in liner service; liner vessel means a vessel used in a liner service;
liner service means a definite, advertised schedule of sailings at
regular intervals; and TEU means a unit of measurement equivalent to one
20-foot shipping container. Further, when used in this Form, the terms
``entire geographic scope of the agreement'' or ``agreement-wide'' refer
to the combined U.S. inbound trade and/or the combined U.S. outbound
trade as such trades apply to the geographic scope of the agreement, as
opposed to the term ``sub-trade,'' which is defined for reporting
purposes as the scope of all liner movements between each U.S. port
range and each foreign country within the scope of the agreement.
Whether required on a combined trade basis or a sub-trade basis, the
U.S. inbound trade (or sub-trades) and the U.S. outbound trade (or sub-
trades) shall always be stated separately.

                                Section I

    Section I applies to all agreements identified in 46 CFR 535.502.
Parties to such agreements must complete parts 1 through 4 of this
section. The authorities listed in part 4 of this section do not
necessarily include all of the authorities that must be set forth in an
agreement filed under the Act. The specific authorities between the
parties to an agreement, however, must be set forth, clearly and
completely, in a filed agreement in accordance with 46 CFR 535.402.

                                 Part 1

    State the full name of the agreement.

                                 Part 2

    Provide a narrative statement describing the specific purpose(s) of
the agreement pertaining to the parties' business activities as ocean
common carriers in the foreign commerce of the United States, and the
commercial or other relevant circumstances within the geographic scope
of the agreement that led the parties to enter into the agreement.

                                 Part 3

    List all effective agreements that cover all or part of the
geographic scope of this agreement, and whose parties include one or
more of the parties to this agreement.

                                Part 4(A)

    Identify whether the agreement authorizes the parties to discuss, or
agree upon, whether on a binding basis under a common tariff or a non-
binding basis, any kind of rate or charge.

                                Part 4(B)

    Identify whether the agreement authorizes the parties to establish a
joint service.

                                Part 4(C)

    Identify whether the agreement authorizes the parties to pool cargo
traffic or revenues.

                                Part 4(D)

    Identify whether the agreement authorizes the parties to discuss, or
agree on, any service contract matter.

                                Part 4(E)

    Identify whether the agreement authorizes the parties to discuss or
agree on capacity rationalization as defined in 46 CFR 535.104(e).

                                Part 4(F)

    Identify whether the agreement contains provisions that place
conditions or restrictions on the parties' agreement participation, and/
or use or offering of competing services within the geographic scope of
the agreement.

                                Part 4(G)

    Identify whether the agreement authorizes the parties to charter or
use vessel space in exchange for compensation or services. This
authority does not include capacity rationalization as referred to in
part 4(E) of this section.

                                Part 4(H)

    Identify whether the agreement authorizes the parties to rationalize
sailings or services relating to a schedule of ports, the frequency of
vessel calls at ports, or the size and capacity of vessels for
deployment. This authority does not include the establishment of a joint
service or capacity rationalization as referred to in parts 4(B) and
4(E) of this section.

                               Section II

    Section II applies to agreements identified in 46 CFR 535.502(a)
that contain any of the following authorities: a) the charter or use of
vessel space in exchange for compensation or

[[Page 235]]

services; or b) the rationalization of sailings or services relating to
a schedule of ports, the frequency of vessel calls at ports, or the size
and capacity of vessels for deployment. Such authorities do not include
the establishment of a ``joint service,'' nor ``capacity
rationalization'' as these terms are defined in 46 CFR 535.104 (o) and
(e). Parties to agreements identified in this section must complete all
items in part 1.

                                Part 1(A)

    For the most recent 12-month period for which complete data are
available, provide the number of vessel calls each party made at each
port for its liner services that would be covered by the agreement
within the entire geographic scope of the agreement.

                                Part 1(B)

    Provide a narrative statement on any significant changes,
anticipated or planned to be implemented when the agreement goes into
effect, in the number of vessel calls at a port for the parties' liner
services that would be covered by the agreement within the entire
geographic scope of the agreement. Specifically, explain the nature of
the significant change and its effect on the frequency of vessel calls
at the port for the liner service that would be subject to the change.
For purposes of this part, a significant change refers to an increase or
a decrease in the number of vessel calls at a port for a fixed,
seasonally planned, or indefinite period of time. A significant change
excludes an incidental or temporary alteration in the number of vessel
calls at a port, or an operational change in vessel calls that would
have little or no impact on the number of vessel calls at a port. If no
significant change is anticipated or planned, it shall be noted with the
term ``none'' in response to part 1(B) of this section.

                               Section III

    Section III applies to agreements identified in 46 CFR 535.502 that
contain the authority to discuss or agree on capacity rationalization as
defined in 46 CFR 535.104(e). Parties to such agreements must complete
parts 1 and 2 of this section.

                                Part 1(A)

    1. For the most recent calendar quarter for which complete data are
available, provide the amount of vessel capacity for each party for each
of its liner services that would be covered by the agreement within the
entire geographic scope of the agreement, stated separately for the U.S.
inbound and outbound trades as applicable to the geographic scope of the
agreement. For purposes of this Form, vessel capacity means a party's
total commercial liner space on line-haul vessels, whether operated by
it or other parties from whom space is obtained, sailing to and/or from
the continent of North America for each of its liner services that would
be covered by the agreement.
    2. When 50 percent or more of the total liner cargo carried by all
the parties in the geographic scope of the agreement during the calendar
quarter was containerized, the amount(s) of vessel capacity for each
party shall be reported in TEUs. When 50 percent or more of the total
liner cargo carried by all the parties in the geographic scope of the
agreement during the calendar quarter was non-containerized, the
amount(s) of vessel capacity for each party shall be reported in non-
containerized units of measurement. The unit of measurement used in
calculating the amounts of non-containerized vessel capacity must be
specified clearly and consistently applied.

                                Part 1(B)

    Provide the percentage of vessel capacity utilization for each party
for each of its liner services that would be covered by the agreement
within the entire geographic scope of the agreement, corresponding to
the figures and time period used in part 1(A) of this section, stated
separately for the U.S. inbound and outbound trades as applicable to the
geographic scope of the agreement. For purposes of this Form, the
percentage of vessel capacity utilization means a party's total volume
of liner cargo, for each of its liner services that would be covered by
the agreement, carried on any vessel space counted under part 1(A) of
this section, divided by its total vessel capacity as defined and
derived in part 1(A) of this section, which quotient is multiplied by
100.

                                Part 1(C)

    Provide a narrative statement on any significant changes,
anticipated or planned to be implemented when the agreement goes into
effect, in the amounts of vessel capacity for the parties' liner
services that would be covered by the agreement within the entire
geographic scope of the agreement. Specifically, explain the nature of
and the reasons for the significant change and its effects on the liner
service and the total amount of vessel capacity for such service that
would be subject to the change. For purposes of this part, a significant
change refers to the removal from or addition to a liner service of
vessels or vessel space for a fixed, seasonally planned, or indefinite
period of time. A significant change excludes instances when vessels may
be temporarily repositioned or shifted from one service to another, or
when vessel space may be temporarily altered, or when vessels are
removed from a liner service and vessels of similar capacity are
substituted. It also excludes operational changes in vessels or vessel
space that would

[[Page 236]]

have little or no impact on the amount of vessel capacity offered in a
liner service or a trade. If no significant change is anticipated or
planned, it shall be noted with the term ``none'' in response to part
1(C) of this section.

                                Part 2(A)

    For the most recent 12-month period for which complete data are
available, provide the number of vessel calls each party made at each
port for its liner services that would be covered by the agreement
within the entire geographic scope of the agreement.

                                Part 2(B)

    Provide a narrative statement on any significant changes,
anticipated or planned to be implemented when the agreement goes into
effect, in the number of vessel calls at a port for the parties' liner
services that would be covered by the agreement within the entire
geographic scope of the agreement. Specifically, explain the nature of
the significant change and its effect on the frequency of vessel calls
at the port for the liner service that would be subject to the change.
For purposes of this part, a significant change refers to an increase or
a decrease in the number of vessel calls at a port for a fixed,
seasonally planned, or indefinite period of time. A significant change
excludes an incidental or temporary alteration in the number of vessel
calls at a port, or an operational change in vessel calls that would
have little or no impact on the number of vessel calls at a port. If no
significant change is anticipated or planned, it shall be noted with the
term ``none'' in response to part 2(B) of this section.

                               Section IV

    Section IV applies to agreements identified in 46 CFR 535.502 that
contain any of the following authorities: a) the discussion of, or
agreement upon, whether on a binding basis under a common tariff or a
non-binding basis, any kind of rate or charge; b) the establishment of a
joint service; c) the pooling or division of cargo traffic, earnings, or
revenues and/or losses; or d) the discussion of, or agreement on, any
service contract matter. Parties to such agreements must complete parts
1 through 5 of this section.

                                 Part 1

    1. For the most recent calendar quarter for which complete data are
available, provide the market shares of all liner operators for the
entire geographic scope of the agreement and in each sub-trade within
the scope of the agreement. A joint service shall be treated as a single
liner operator, whether it is an agreement line or a non-agreement line.
Sub-trade is defined as the scope of all liner movements between each
U.S. port range within the scope of the agreement and each foreign
country within the scope of the agreement. Where the agreement covers
both U.S. inbound and outbound liner movements, inbound and outbound
market shares shall be shown separately.
    2. U.S. port ranges are defined as follows:
    a. Atlantic and Gulf--Includes ports along the eastern seaboard and
the Gulf of Mexico from the northern boundary of Maine to Brownsville,
Texas. Also includes all ports bordering upon the Great Lakes and their
connecting waterways, all ports in the State of New York on the St.
Lawrence River, and all ports in Puerto Rico and the U.S. Virgin
Islands.
    b. Pacific--Includes all ports in the States of Alaska, Hawaii,
California, Oregon, and Washington. Also includes all ports in Guam,
American Samoa, Northern Marianas, Johnston Island, Midway Island, and
Wake Island.
    3. An application may be filed for a waiver of the definition of
``sub-trade'' under the procedures described in 46 CFR 535.504. In any
such application, the burden shall be on the parties to show that their
marketing and pricing practices have been done by ascertainable multi-
country regions rather than by individual countries or, in the case of
the United States, by broader areas than the port ranges defined herein.
The parties must further show that, though operating individually, they
were nevertheless applying essentially similar regional practices.
    4. The formula for calculating market share in the entire agreement
scope or in a sub-trade is as follows: The total amount of liner cargo
carried on each liner operator's liner vessels in the entire agreement
scope or in the sub-trade during the most recent calendar quarter for
which complete data are available, divided by the total liner movements
in the entire agreement scope or in the sub-trade during the same
calendar quarter, which quotient is multiplied by 100. The calendar
quarter used must be clearly identified. The market shares held by non-
agreement lines as well as by agreement lines must be provided, stated
separately in the format indicated.
    5. If 50 percent or more of the total liner cargo carried by the
parties in the entire agreement scope during the calendar quarter was
containerized, only containerized liner movements (measured in TEUs)
must be used for determining market share. If 50 percent or more of the
total liner cargo carried by the parties was non-containerized, only
non-containerized liner movements must be used for determining market
share. The unit of measurement used in calculating amounts of non-
containerized cargo must be specified clearly and applied consistently.

[[Page 237]]

                                 Part 2

    1. For each party that served all or any part of the geographic
scope of the agreement during all or any part of the most recent 12-
month period for which complete data are available, provide each party's
total liner revenues within the geographic scope, total liner cargo
carried within the geographic scope, and average revenue. For purposes
of this Form, total liner revenues means the total revenues, in U.S.
dollars, of each party corresponding to its total cargo carried for its
liner services that would fall under the agreement, inclusive of all
ocean freight charges, whether assessed on a port-to-port basis or a
through intermodal basis; accessorial charges; surcharges; and charges
for inland cargo carriage. Average revenue shall be calculated as the
quotient of each party's total liner revenues within the geographic
scope divided by its total cargo carried within the geographic scope.
    2. When 50 percent or more of the total liner cargo carried by all
the parties in the geographic scope of the agreement during the 12-month
period was containerized, each party shall report only its total
carryings of containerized liner cargo (measured in TEUs) within the
geographic scope, total revenues generated by its carriage of
containerized liner cargo, and average revenue per TEU. When 50 percent
or more of the total liner cargo carried by all the parties in the
geographic scope of the agreement during the 12-month period was non-
containerized, each party shall report only its total carryings of non-
containerized liner cargo (specifying the unit of measurement used),
total revenues generated by its carriage of non-containerized liner
cargo, and average revenue per unit of measurement. When the agreement
covers both U.S. inbound and outbound liner movements, inbound and
outbound data shall be stated separately.

                                Part 3(A)

    For the same 12-month period used in part 2 of this section, provide
a list, for the entire geographic scope of the agreement, of the top 10
liner commodities (including commodities not subject to tariff
publication) carried by all the parties for their liner services that
would fall under the agreement. For purposes of this Form, commodities
shall be identified at the 4-digit level of customarily used commodity
coding schedules. When 50 percent or more of the total liner cargo
carried by all the parties in the geographic scope of the agreement
during the 12-month period was containerized, this list shall include
only containerized commodities. When 50 percent or more of the total
liner cargo carried by all the parties in the geographic scope of the
agreement during the 12-month period was non-containerized, this list
shall include only non-containerized commodities. When the agreement
covers both U.S. inbound and outbound liner movements, inbound and
outbound data shall be stated separately.

                                Part 3(B)

    Provide the cargo volume and revenue results for each party for each
of the major commodities listed in part 3(A) of this section,
corresponding to the same 12-month period and unit of measurement used.
For purposes of this Form, revenue results means the revenues, in U.S.
dollars, earned by each party on the cargo volume of each major
commodity listed in part 3(A) of this section, inclusive of all ocean
freight charges, whether assessed on a port-to-port basis or a through
intermodal basis; accessorial charges; surcharges; and charges for
inland cargo carriage. If a party has no cargo volume and revenue
results for a commodity listed in part 3(A) of this section, it shall be
noted by using a zero for that party in response to part 3(B) of this
section.

                                Part 4(A)

    For the same calendar quarter used in part 1 of this section,
provide the amount of vessel capacity for each party for each of its
liner services that would fall under the agreement within the entire
geographic scope of the agreement, stated separately for the U.S.
inbound and outbound trades as applicable to the geographic scope of the
agreement. For purposes of this Form, vessel capacity means a party's
total commercial liner space on line-haul vessels, whether operated by
it or other parties from whom space is obtained, sailing to and/or from
the continent of North America for each of its liner services that would
fall under the agreement. When 50 percent or more of the total liner
cargo carried by all the parties in the geographic scope of the
agreement during the calendar quarter was containerized, the amount(s)
of vessel capacity for each party shall be reported in TEUs. When 50
percent or more of the total liner cargo carried by all the parties in
the geographic scope of the agreement during the calendar quarter was
non-containerized, the amount(s) of vessel capacity for each party shall
be reported in non-containerized units of measurement. The unit of
measurement used in calculating the amounts of non-containerized vessel
capacity must be specified clearly and consistently applied.

                                Part 4(B)

    Provide the percentage of vessel capacity utilization for each party
for each of its liner services that would fall under the agreement
within the entire geographic scope of the agreement, corresponding to
the figures and time period used in part 4(A) of this section, stated
separately for the U.S. inbound and

[[Page 238]]

outbound trades as applicable to the geographic scope of the agreement.
For purposes of this Form, the percentage of vessel capacity utilization
means a party's total volume of liner cargo, for each of its liner
services that would fall under the agreement, carried on any vessel
space counted under part 4(A) of this section, divided by its total
vessel capacity as defined and derived in part 4(A) of this section,
which quotient is multiplied by 100.

                                Part 4(C)

    Provide a narrative statement on any significant changes,
anticipated or planned for when the agreement goes into effect, in the
amounts of vessel capacity for the parties' liner services that would
fall under the agreement within the entire geographic scope of the
agreement. Specifically, explain the nature of and reasons for the
significant change and its effects on the liner service and the total
amount of vessel capacity for such service that would be subject to the
change. For purposes of this part, a significant change refers to the
removal from or addition to a liner service of vessels or vessel space
for a fixed, seasonally planned, or indefinite period of time. A
significant change excludes instances when vessels may be temporarily
repositioned or shifted from one service to another, or when vessel
space may be temporarily altered, or when vessels are removed from a
liner service and vessels of similar capacity are substituted. It also
excludes operational changes in vessels or vessel space that would have
little or no impact on the amount of vessel capacity offered in a liner
service or a trade. If no significant change is anticipated or planned,
it shall be noted with the term ``none'' in response to part 4(C) of
this section.

                                Part 5(A)

    For the same 12-month period used in parts 2 and 3 of this section,
provide the number of vessel calls each party made at each port for its
liner services that would fall under the agreement within the entire
geographic scope of the agreement.

                                Part 5(B)

    Provide a narrative statement on any significant changes,
anticipated or planned for when the agreement goes into effect, in the
number of vessel calls at a port for the parties' liner services that
would fall under the agreement within the entire geographic scope of the
agreement. Specifically, explain the nature of the significant change
and its effect on the frequency of vessel calls at the port for the
liner service that would be subject to the change. For purposes of this
part, a significant change refers to an increase or decrease in the
number of vessel calls at a port for a fixed, seasonally planned, or
indefinite period of time. A significant change excludes an incidental
or temporary alteration in vessel calls at a port, or an operational
change in vessel calls that would have little or no impact on the number
of vessel calls at a port. If no significant change is anticipated or
planned, it shall be noted with the term ``none'' in response to part
5(B) of this section.

                                Section V

    Section V applies to all agreements identified in 46 CFR 535.502.
Parties to such agreements must complete all items in part 1 of this
section.

                                Part 1(A)

    State the name, title, address, telephone and fax numbers, and
electronic mail address of a person the Commission may contact regarding
the Information Form and any information provided therein.

                                Part 1(B)

    State the name, title, address, telephone and fax numbers, and
electronic mail address of a person the Commission may contact regarding
a request for additional information or documents.

                                Part 1(C)

    A representative of the parties shall sign the Information Form and
certify that the information in the Form and all attachments and
appendices are, to the best of his or her knowledge, true, correct and
complete. The representative also shall indicate his or her relationship
with the parties to the agreement.

             Privacy Act and Paperwork Reduction Act Notice

    1. The collection of this information is authorized generally by
section 15 of the Shipping Act of 1984 (46 U.S.C. 40104). The submission
of this form is mandatory for parties to agreements that contain certain
authorities.
    2. You are not required to provide information requested on a form
that is subject to the Paperwork Reduction Act unless the form displays
a valid OMB control number. The valid control number for this
information collection is 3072-0045.
    3. The time needed to complete and submit this form will vary
depending on individual circumstances. The total estimated average time
to complete this form is about 30 hours. This estimate includes reading
the instructions, collecting necessary data, and compiling that data.
    4. If you have any comments concerning the accuracy of the above
estimate or have any suggestions for simplifying the form, please
contact Secretary, Federal Maritime Commission, 800 North Capitol
Street, NW.,

[[Page 239]]

Washington, DC 20573-0001; or by e-mail [email protected].

FMC Form-150                                   OMB Control No. 3072-0045
                       FEDERAL MARITIME COMMISSION
                          INFORMATION FORM FOR
            AGREEMENTS BETWEEN OR AMONG OCEAN COMMON CARRIERS


                                Section I

                                 Part 1

 Agreement Name:________________________________________________________

                                 Part 2

 Narrative statement on agreement purpose, and commercial or other
circumstances requiring the agreement:__________________________________

________________________________________________________________________

________________________________________________________________________

                                 Part 3

    List all effective agreements covering all or part of the geographic
scope of this agreement, whose parties include one or more of the
parties to this agreement.

                                 Part 4

This agreement includes:
    (A) Authority to discuss or agree upon rates    Yes [squ]   No [squ]
     or charges?..................................
    (B) Joint service?............................  Yes [squ]   No [squ]
    (C) Pooling of cargo traffic or revenues?.....  Yes [squ]   No [squ]
    (D) Authority to discuss or agree on service    Yes [squ]   No [squ]
     contracts and their terms?...................
    (E) Authority to discuss or agree on capacity   Yes [squ]   No [squ]
     rationalization?.............................
    (F) Conditions or restrictions on the parties'  Yes [squ]   No [squ]
     agreement participation, and/or use or
     offering of competing services in the
     geographic scope?............................
    (G) Authority to charter vessel space?........  Yes [squ]   No [squ]
    (H) Authority to rationalize sailings or        Yes [squ]   No [squ]
     services?....................................


                               Section II

                                 Part 1

(A) Vessel Calls
Agreement-Wide Trade: U.S. Inbound (or Outbound) Name
Time Period: [12-Months]
[Port Names] Port 1 Port 2 Port 3 Port 4 Etc. . . .
Carrier A [Name]
Carrier B
Carrier C
Etc. . . .

 (B) Narrative statement on significant changes in vessel calls:________

________________________________________________________________________

________________________________________________________________________

                               Section III

                 Part 1 Vessel Capacity And Utilization

Agreement-Wide Trade: U.S. Inbound (or Outbound) Name
Time Period: [Calendar Quarter]


                                            (A) Vessel
                                          Capacity [TEUs        (B)
                                             or other       Utilization
                                              units]         [percent]

Carrier A [Name]
    Liner Service 1 [Name]..............          XX,XXX              XX
    Liner Service 2.....................          XX,XXX              XX
    Liner Service 3.....................          XX,XXX              XX
    Etc. . . .
Carrier B
    Liner Service 1.....................          XX,XXX              XX
    Liner Service 2.....................          XX,XXX              XX
    Liner Service 3.....................          XX,XXX              XX
    Etc. . . .



[[Page 240]]

Etc. . . .

 (C) Narrative statement on significant changes in vessel capacity:_____

________________________________________________________________________

________________________________________________________________________

                           Part 2 Vessel Calls

(A) Agreement-Wide Trade: U.S. Inbound (or Outbound) Name
Time Period: [12-Months]
[Port Names] Port 1 Port 2 Port 3 Port 4 Etc. . . .
Carrier A [Name]
Carrier B
Carrier C
Etc. . . .

 (B) Narrative statement on significant changes in vessel calls:________

________________________________________________________________________

________________________________________________________________________

                               Section IV

                           Part 1 Market Share

Agreement-Wide Trade (or Sub-Trade): U.S. Inbound (or Outbound) Name
Time Period: [Calendar Quarter]


                                          TEUs [or other
                                              units]          Percent

Agreement Market Share:
    Line A [Name].......................           X,XXX              XX
    Line B..............................           X,XXX              XX
    Line C..............................           X,XXX              XX
    Etc. . . .
        Total Agreement.................           X,XXX              XX
Non-Agreement Market Share:
    Line X..............................           X,XXX              XX
    Line Y..............................           X,XXX              XX
    Line Z..............................           X,XXX              XX
    Etc. . . .
        Total Non-Agreement.............           X,XXX              XX
Total Trade [or Sub-Trade]..............           X,XXX             100


                  Part 2 Total Liner Cargo and Revenues

Agreement-Wide Trade: U.S. Inbound (or Outbound) Name
Time Period: [12-Months]


                                                                                  TEUs [or other      Average
                             [Name]                               Total revenues      units]          revenue

Carrier A.......................................................               $           X,XXX               $
Carrier B.......................................................               $           X,XXX               $
Carrier C.......................................................               $           X,XXX               $
    Etc. . . .


                      Part 3 Top Liner Commodities

Agreement-Wide Trade: U.S. Inbound (or Outbound) Name
Time Period: [Same 12-Months in part 2 of this section]


                             [Name]                                  Carrier A       Carrier B      Etc. . . .

Commodity 1 [Name and 4-Digit Code]:
    TEUs [or other units].......................................           X,XXX           X,XXX
    Revenues....................................................               $               $
Commodity 2:
    TEUs........................................................           X,XXX           X,XXX
    Revenues....................................................               $               $
    Etc. . . .


                 Part 4 Vessel Capacity and Utilization

Agreement-Wide Trade: U.S. Inbound (or Outbound) Name
Time Period: [Same Calendar Quarter in part 1 of this section]

[[Page 241]]



                                            (A) Vessel
                                          capacity [TEUs        (B)
                                             or other       Utilization
                                              units]         [percent]

Carrier A [Name]
    Liner Service 1 [Name]..............          XX,XXX              XX
    Liner Service 2.....................          XX,XXX              XX
    Liner Service 3.....................          XX,XXX              XX
    Etc. . . .
Carrier B
    Liner Service 1.....................          XX,XXX              XX
    Liner Service 2.....................          XX,XXX              XX
    Liner Service 3.....................          XX,XXX              XX
    Etc. . . .
Etc. . . .


 (C) Narrative statement on significant changes in vessel capacity:_____

________________________________________________________________________

________________________________________________________________________

                                 Part 5

(A) Vessel Calls
Agreement-Wide Trade: U.S. Inbound (or Outbound) Name
Time Period: [Same 12-Months in parts 2 and 3 of this section]
[Port Names] Port 1 Port 2 Port 3 Port 4 Etc. . . .
Carrier A [Name]
Carrier B
Carrier C
Etc. . . .
 (B) Narrative statement on significant changes in vessel calls:________

________________________________________________________________________

________________________________________________________________________

                                Section V

                Part 1 Contact Persons and Certification

(A) Person(s) to Contact Regarding Information Form.

 (1) Name_______________________________________________________________

 (2) Title______________________________________________________________

 (3) Firm Name and Business_____________________________________________

 (4) Business Telephone Number__________________________________________

 (5) Fax Number_________________________________________________________

 (6) E-Mail Address_____________________________________________________

(B) Individual Located in the United States Designated for the Limited
Purpose of Receiving Notice of an Issuance of a Request for Additional
Information or Documents (see 46 CFR 535.606).

 (1) Name_______________________________________________________________

 (2) Title______________________________________________________________

 (3) Firm Name and Business_____________________________________________

 (4) Business Telephone Number__________________________________________

 (5) Fax Number_________________________________________________________

 (6) E-Mail Address_____________________________________________________

(C) Certification

This Information Form, together with any and all appendices and
attachments thereto, was prepared and assembled in accordance with
instructions issued by the Federal Maritime Commission. The information
is, to the best of my knowledge, true, correct, and complete.

 Name (please print or type)____________________________________________

 Title__________________________________________________________________

 Relationship with parties to agreement_________________________________

 Signature______________________________________________________________

 Date___________________________________________________________________

[69 FR 64414, Nov. 4, 2004, as amended at 70 FR 20304, Apr. 19, 2005; 74
FR 50730, Oct. 1, 2009]



     Sec. Appendix B to Part 535--Monitoring Report and Instructions

                     Monitoring Report Instructions

    1. All agreements between or among ocean common carriers identified
in 46 CFR 535.702(a) must submit completed Monitoring Reports to the
full extent required in sections I through III of this Report. Sections
I and II must be completed, as applicable, in accordance with the
authority contained in each agreement. Section III must be completed by
all agreements subject to Monitoring Report requirements.
    2. Where an agreement containing multiple authorities is subject to
duplicate reporting requirements in the various sections of this Report,
the parties may provide only one response so long as the reporting
requirements within each section are fully addressed. The Monitoring
Report specifies the data and information which must be reported for
each section and the format in which it must be provided. If a party to
an agreement is unable to supply a complete response to any item of this
Report, that party shall provide either estimated data (with an
explanation of why precise data are not available) or a

[[Page 242]]

detailed statement of reasons for noncompliance and the efforts made to
obtain the required information. For purposes of this Report, if one of
the agreement signatories is a joint service operating under an
effective agreement, that signatory shall respond to the Report as a
single agreement party.
    3. For clarification of the agreement terminology used in this
Report, the parties may refer to the definitions provided in 46 CFR
535.104. In addition, the following definitions shall apply for purposes
of this Report: liner movement means the carriage of liner cargo by
liner operators; liner cargo means cargo carried on liner vessels in a
liner service; liner operator means a vessel-operating common carrier
engaged in liner service; liner vessel means a vessel used in a liner
service; liner service means a definite, advertised schedule of sailings
at regular intervals; and TEU means a unit of measurement equivalent to
one 20-foot shipping container. Further, when used in this Report, the
terms ``entire geographic scope of the agreement'' or ``agreement-wide''
refer to the combined U.S. inbound trade and/or the combined U.S.
outbound trade as such trades apply to the geographic scope of the
agreement, as opposed to the term ``sub-trade,'' which is defined for
reporting purposes as the scope of all liner movements between each U.S.
port range and each foreign country within the scope of the agreement.
Whether required on a combined trade basis or a sub-trade basis, the
U.S. inbound trade (or sub-trades) and the U.S. outbound trade (or sub-
trades) shall always be stated separately.

                                Section I

    Section I applies to agreements, identified in 46 CFR 535.702(a)(1),
that contain the authority to discuss or agree on capacity
rationalization as defined in 46 CFR 535.104(e). Parties to such
agreements must complete parts 1 through 3 of this section.

                                 Part 1

    State the full name of the agreement and the agreement number
assigned by the FMC.

                                Part 2(A)

    1. For the preceding calendar quarter, provide the amount of vessel
capacity for each party for each of its liner services that is covered
by the agreement within the entire geographic scope of the agreement,
stated separately for the U.S. inbound and outbound trades as applicable
to the geographic scope of the agreement. For purposes of this Report,
vessel capacity means a party's total commercial liner space on line-
haul vessels, whether operated by it or other parties from whom space is
obtained, sailing to and/or from the continent of North America for each
of its liner services that is covered by the agreement.
    2. When 50 percent or more of the total liner cargo carried by all
the parties in the geographic scope of the agreement during the calendar
quarter was containerized, the amount(s) of vessel capacity for each
party shall be reported in TEUs. When 50 percent or more of the total
liner cargo carried by all the parties in the geographic scope of the
agreement during the calendar quarter was non-containerized, the
amount(s) of vessel capacity for each party shall be reported in non-
containerized units of measurement. The unit of measurement used in
calculating the amounts of non-containerized vessel capacity must be
specified clearly and consistently applied.

                                Part 2(B)

    For the preceding calendar quarter, provide the percentage of vessel
capacity utilization for each party for each of its liner services that
is covered by the agreement within the entire geographic scope of the
agreement, corresponding to the figures used in part 2(A) of this
section, stated separately for the U.S. inbound and outbound trades as
applicable to the geographic scope of the agreement. For purposes of
this Report, the percentage of vessel capacity utilization means a
party's total volume of liner cargo, for each of its liner services that
is covered by the agreement, carried on any vessel space counted under
part 2(A) of this section, divided by its total vessel capacity as
defined and derived in part 2(A) of this section, which quotient is
multiplied by 100.

                                Part 2(C)

    Provide a narrative statement on any significant reductions, to be
implemented under the agreement, in the amounts of vessel capacity for
the parties' liner services that are covered by the agreement within the
entire geographic scope of the agreement. Specifically, explain the
nature of and the reasons for the significant reduction and its effects
on the liner service and the total amount of vessel capacity for such
service that would be subject to the reduction. The narrative statement
for part 2(C) of this section shall be submitted to the Director, Bureau
of Trade Analysis, no later than 15 days after a significant reduction
in the amount of vessel capacity has been agreed upon by the parties but
prior to the implementation of the actual reduction under the agreement.
For purposes of this part, a significant reduction refers to the removal
from a liner service of vessels or vessel space for a fixed, seasonally
planned, or indefinite period of time. A significant reduction excludes
instances when vessels may be temporarily repositioned or shifted from
one service to another, or when vessel space may be temporarily altered,
or when vessels are removed from a liner service and vessels of similar
or greater capacity

[[Page 243]]

are substituted. It also excludes operational changes in vessels or
vessel space that would have little or no impact on the amount of vessel
capacity offered in a liner service or a trade.

                                Part 2(D)

    Excluding those changes already reported in part 2(C) of this
section, provide a narrative statement on any other significant changes,
implemented under the agreement during the preceding calendar quarter,
in the amounts of vessel capacity for the parties' liner services that
are covered by the agreement within the entire geographic scope of the
agreement. Specifically, explain the nature of and the reasons for the
significant change and its effects on the liner service and the total
amount of vessel capacity for such service that was subject to the
change. For purposes of this part, a significant change refers to the
addition to a liner service of vessels or vessel space for a fixed,
seasonally planned, or indefinite period of time. A significant change
excludes instances when vessels were temporarily repositioned or shifted
from one service to another, or when vessel space was temporarily
altered, or when vessels were removed from a liner service and vessels
of similar capacity were substituted. It also excludes operational
changes in vessels or vessel space that had little or no impact on the
amount of vessel capacity offered in a liner service or a trade. If no
significant change was implemented, it shall be noted with the term
``none'' in response to part 2(D) of this section.

                                 Part 3

    Provide a narrative statement on any significant changes,
implemented under the agreement during the calendar quarter, in the
number of vessel calls at a port for the parties' liner services that
are covered by the agreement within the entire geographic scope of the
agreement. Specifically, explain the nature of the significant change
and its effect on the frequency of vessel calls at the port for the
liner service that was subject to the change. For purposes of this part,
a significant change refers to an increase or a decrease in the number
of vessel calls at a port for a fixed, seasonally planned, or indefinite
period of time. A significant change excludes an incidental or temporary
alteration in the number of vessel calls at a port, or an operational
change in vessel calls that had little or no impact on the number of
vessel calls at a port. If no significant change was implemented, it
shall be noted with the term ``none'' in response to part 3 of this
section.

                               Section II

    Section II applies to agreements, identified in 46 CFR
535.702(a)(2), where the parties to the agreement hold a combined market
share, based on cargo volume, of 35 percent or more in the entire U.S.
inbound or outbound geographic scope of the agreement and the agreement
contains any of the following authorities: a) the discussion of, or
agreement upon, whether on a binding basis under a common tariff or a
non-binding basis, any kind of rate or charge; b) the establishment of a
joint service; c) the pooling or division of cargo traffic, earnings, or
revenues and/or losses; or d) the discussion of, or agreement on, any
service contract matter. Parties to such agreements must complete parts
1 through 6 of this section.

                                 Part 1

    State the full name of the agreement and the agreement number
assigned by the FMC.

                                 Part 2

    1. For the preceding calendar quarter, provide the market shares of
all liner operators for the entire geographic scope of the agreement and
in each sub-trade within the scope of the agreement. A joint service
shall be treated as a single liner operator, whether it is an agreement
line or a non-agreement line. Sub-trade is defined as the scope of all
liner movements between each U.S. port range within the scope of the
agreement and each foreign country within the scope of the agreement.
Where the agreement covers both U.S. inbound and outbound liner
movements, inbound and outbound market shares shall be shown separately.
    2. U.S. port ranges are defined as follows:
    a. Atlantic and Gulf--Includes ports along the eastern seaboard and
the Gulf of Mexico from the northern boundary of Maine to Brownsville,
Texas. Also includes all ports bordering upon the Great Lakes and their
connecting waterways, all ports in the State of New York on the St.
Lawrence River, and all ports in Puerto Rico and the U.S. Virgin
Islands.
    b. Pacific--Includes all ports in the States of Alaska, Hawaii,
California, Oregon, and Washington. Also includes all ports in Guam,
American Samoa, Northern Marianas, Johnston Island, Midway Island, and
Wake Island.
    3. An application may be filed for a waiver of the definition of
``sub-trade'' under the procedures described in 46 CFR 535.705. In any
such application, the burden shall be on the parties to show that their
marketing and pricing practices have been done by ascertainable multi-
country regions rather than by individual countries or, in the case of
the United States, by broader areas than the port ranges defined herein.
The Commission will also consider whether the alternative definition of
``sub-trade'' requested by the waiver application is reasonably
consistent with the definition of ``sub-trade'' applied in the original
Information Form for the agreement.

[[Page 244]]

    4. The formula for calculating market share in the entire agreement
scope or in a sub-trade is as follows: The total amount of liner cargo
carried on each liner operator's liner vessels in the entire agreement
scope or in the sub-trade during the most recent calendar quarter for
which complete data are available, divided by the total liner movements
in the entire agreement scope or in the sub-trade during the same
calendar quarter, which quotient is multiplied by 100. The market shares
held by non-agreement lines as well as by agreement lines must be
provided, stated separately in the format indicated.
    5. If 50 percent or more of the total liner cargo carried by the
parties in the entire agreement scope during the calendar quarter was
containerized, only containerized liner movements (measured in TEUs)
must be used for determining market share. If 50 percent or more of the
total liner cargo carried by the parties was non-containerized, only
non-containerized liner movements must be used for determining market
share. The unit of measurement used in calculating amounts of non-
containerized cargo must be specified clearly and applied consistently.

                                 Part 3

    1. For the preceding calendar quarter, provide each party's total
liner revenues in the entire geographic scope of the agreement, total
liner cargo carried in the entire geographic scope of the agreement, and
average revenue. For purposes of this Report, total liner revenues means
the total revenues, in U.S. dollars, of each party corresponding to its
total cargo carried for its liner services that fall under the
agreement, inclusive of all ocean freight charges, whether assessed on a
port-to-port basis or a through intermodal basis; accessorial charges;
surcharges; and charges for inland cargo carriage. Average revenue shall
be calculated as the quotient of each party's total liner revenues in
the entire geographic scope divided by its total cargo carried in the
entire geographic scope.
    2. When 50 percent or more of the total liner cargo carried by all
the parties in the geographic scope of the agreement during the calendar
quarter was containerized, each party shall report only its total
carryings of containerized liner cargo (measured in TEUs) during the
calendar quarter, total revenues generated by its carriage of
containerized liner cargo, and average revenue per TEU. When 50 percent
or more of the total liner cargo carried by all the parties in the
geographic scope of the agreement during the calendar quarter was non-
containerized, each party shall report only its total carryings of non-
containerized liner cargo during the calendar quarter (specifying the
unit of measurement used), total revenues generated by its carriage of
non-containerized liner cargo, and average revenue per unit of
measurement. When the agreement covers both U.S. inbound and outbound
liner movements, inbound and outbound data shall be stated separately.

                                Part 4(A)

    For the preceding calendar quarter, provide a list, for the entire
geographic scope of the agreement, of the top 10 liner commodities
(including commodities not subject to tariff publication) carried by all
the parties for their liner services that fall under the agreement. For
purposes of this Report, commodities shall be identified at the 4-digit
level of customarily used commodity coding schedules. When 50 percent or
more of the total liner cargo carried by all the parties in the
geographic scope of the agreement during the calendar quarter was
containerized, this list shall include only containerized commodities.
When 50 percent or more of the total liner cargo carried by all the
parties in the geographic scope of the agreement during the calendar
quarter was non-containerized, this list shall include only non-
containerized commodities. When the agreement covers both U.S. inbound
and outbound liner movements, inbound and outbound data shall be stated
separately.

                                Part 4(B)

    For the preceding calendar quarter, provide the cargo volume and
revenue results for each party for each of the major commodities listed
in part 4(A) of this section, corresponding to the same unit of
measurement used. For purposes of this Report, revenue results means the
revenues, in U.S. dollars, earned by each party on the cargo volume of
each major commodity listed in part 4(A) of this section, inclusive of
all ocean freight charges, whether assessed on a port-to-port basis or a
through intermodal basis; accessorial charges; surcharges; and charges
for inland cargo carriage. If a party has no cargo volume and revenue
results for a commodity listed in part 4(A) of this section, it shall be
noted by using a zero for that party in response to part 4(B) of this
section.

                                Part 5(A)

    For the preceding calendar quarter, provide the amount of vessel
capacity for each party for each of its liner services that falls under
the agreement within the entire geographic scope of the agreement,
stated separately for the U.S. inbound and outbound trades as applicable
to the geographic scope of the agreement. For purposes of this Report,
vessel capacity means a party's total commercial liner space on line-
haul vessels, whether operated by it or other parties from whom space is
obtained, sailing to and/or from the continent of North America for

[[Page 245]]

each of its liner services that falls under the agreement. When 50
percent or more of the total liner cargo carried by all the parties in
the geographic scope of the agreement during the calendar quarter was
containerized, the amount(s) of vessel capacity for each party shall be
reported in TEUs. When 50 percent or more of the total liner cargo
carried by all the parties in the geographic scope of the agreement
during the calendar quarter was non-containerized, the amount(s) of
vessel capacity for each party shall be reported in non-containerized
units of measurement. The unit of measurement used in calculating the
amounts of non-containerized vessel capacity must be specified clearly
and consistently applied.

                                Part 5(B)

    For the preceding calendar quarter, provide the percentage of vessel
capacity utilization for each party for each of its liner services that
falls under the agreement within the entire geographic scope of the
agreement, corresponding to the figures used in part 5(A) of this
section, stated separately for the U.S. inbound and outbound trades as
applicable to the geographic scope of the agreement. For purposes of
this Report, the percentage of vessel capacity utilization means a
party's total volume of liner cargo, for each of its liner services that
falls under the agreement, carried on any vessel space counted under
part 5(A) of this section, divided by its total vessel capacity as
defined and derived in part 5(A) of this section, which quotient is
multiplied by 100.

                                Part 5(C)

    Provide a narrative statement on any significant changes in the
amount of vessel capacity that occurred during the preceding calendar
quarter for the parties' liner services that fall under the agreement
within the entire geographic scope of the agreement. Specifically,
explain the nature of and the reasons for the significant change and its
effects on the liner service and the total amount of vessel capacity for
such service that was subject to the change. For purposes of this part,
a significant change refers to the removal from or addition to a liner
service of vessels or vessel space for a fixed, seasonally planned, or
indefinite period of time. A significant change would exclude instances
when vessels were temporarily repositioned or shifted from one service
to another, or when vessel space was temporarily altered, or when
vessels were removed from a liner service and vessels of similar
capacity were substituted. It also excludes operational changes in
vessels and vessel space that had little or no impact on the amount of
vessel capacity offered in a liner service or a trade. If no significant
change occurred during the calendar quarter, it shall be noted with the
term ``none'' in response to part 5(C) of this section.

                                 Part 6

    Provide a narrative statement on any significant changes in the
number of vessel calls at a port that occurred during the preceding
calendar quarter for the parties' liner services that fall under the
agreement within the entire geographic scope of the agreement.
Specifically, explain the nature of the significant change and its
effect on the frequency of vessel calls at the port for the liner
service that was subject to the change. For purposes of this part, a
significant change refers to an increase or a decrease in the number of
vessel calls at a port for a fixed, seasonally planned, or indefinite
period of time. A significant change excludes an incidental or temporary
alteration in the number of vessel calls at a port, or an operational
change in vessel calls that had little or no impact on the number of
vessel calls at a port. If no significant change occurred during the
calendar quarter, it shall be noted with the term ``none'' in response
to part 6 of this section.

                               Section III

    Section III applies to all agreements identified in 46 CFR
535.702(a). Parties to such agreements must complete all items in part 1
of this section.

                                Part 1(A)

    State the name, title, address, telephone and fax numbers, and
electronic mail address of a person the Commission may contact regarding
the Monitoring Report and any information provided therein.

                                Part 1(B)

    A representative of the parties shall sign the Monitoring Report and
certify that the information in the Report and all attachments and
appendices are, to the best of his or her knowledge, true, correct and
complete. The representative also shall indicate his or her relationship
with the parties to the agreement.

             Privacy Act and Paperwork Reduction Act Notice

    1. The collection of this information is authorized generally by
section 15 of the Shipping Act of 1984 (46 U.S.C. 40104). The submission
of this form is mandatory for parties to agreements that contain certain
authorities.
    2. You are not required to provide information requested on a form
that is subject to the Paperwork Reduction Act unless the form displays
a valid OMB control number. The valid control number for this
information collection is 3072-0045.
    3. The time needed to complete and submit this form will vary
depending on individual

[[Page 246]]

circumstances. The total estimated average time to complete this form is
about 63.5 hours. This estimate includes reading the instructions,
collecting necessary data, and compiling that data.
    4. If you have any comments concerning the accuracy of the above
estimate or have any suggestions for simplifying the form, please
contact Secretary, Federal Maritime Commission, 800 North Capitol
Street, NW., Washington, DC 20573-0001; or by e-mail [email protected].

FMC Form-151                                   OMB Control No. 3072-0045
                       FEDERAL MARITIME COMMISSION
                          MONITORING REPORT FOR
            AGREEMENTS BETWEEN OR AMONG OCEAN COMMON CARRIERS


                                Section I

                                 Part 1

 Agreement Name:________________________________________________________

 FMC Number:____________________________________________________________

                 Part 2 Vessel Capacity and Utilization

Agreement-Wide Trade: U.S. Inbound (or Outbound) Name
Time Period: [Calendar Quarter]


                                            (A) Vessel
                                          capacity [TEUs        (B)
                                             or other       Utilization
                                              units]         [percent]

Carrier A [Name]:
    Liner Service 1 [Name]..............          XX,XXX              XX
    Liner Service 2.....................          XX,XXX              XX
    Liner Service 3.....................          XX,XXX              XX
    Etc. . . ...........................
Carrier B:
    Liner Service 1.....................          XX,XXX              XX
    Liner Service 2.....................          XX,XXX              XX
    Liner Service 3.....................          XX,XXX              XX
    Etc. . . .
Etc. . . .


 (C) Narrative statement on significant reductions in vessel capacity to
be implemented (submit statement no later than 15 days after a reduction
has been agreed upon but prior to the implementation of the reduction):_

________________________________________________________________________

 (D) Narrative statement on other significant changes in vessel capacity
implemented during the calendar quarter:________________________________

________________________________________________________________________

                           Part 3 Vessel Calls

 Narrative statement on significant changes in vessel calls implemented
during the calendar quarter:____________________________________________

________________________________________________________________________

                               Section II

                                 Part 1

 Agreement Name:________________________________________________________

 FMC Number:____________________________________________________________

                           Part 2 Market Share

Agreement-Wide Trade (or Sub-Trade): U.S. Inbound (or Outbound) Name
Time Period: [Calendar Quarter]


                                          TEUs [or other
                                              units]          Percent

Agreement Market Share:
    Line A [Name].......................           X,XXX              XX
    Line B..............................           X,XXX              XX
    Line C..............................           X,XXX              XX
    Etc. . . .
        Total Agreement.................           X,XXX              XX
Non-Agreement Market Share:
    Line X..............................           X,XXX              XX

[[Page 247]]


    Line Y..............................           X,XXX              XX
    Line Z..............................           X,XXX              XX
    Etc. . . .
        Total Non-Agreement.............           X,XXX              XX
Total Trade [or Sub-Trade]..............           X,XXX             100


                  Part 3 Total Liner Cargo and Revenues

Agreement-Wide Trade: U.S. Inbound (or Outbound) Name
Time Period: [Calendar Quarter]


                                                                                  TEUs [or other      Average
                             [Name]                               Total revenues      units]          revenue

Carrier A.......................................................               $           X,XXX               $
Carrier B.......................................................               $           X,XXX               $
Carrier C.......................................................               $           X,XXX               $
    Etc. . . .


                      Part 4 Top Liner Commodities

Agreement-Wide Trade: U.S. Inbound (or Outbound) Name
Time Period: [Calendar Quarter]


                             [Name]                                  Carrier A       Carrier B       Etc. . .

Commodity 1 [Name and 4-Digit Code]:
    TEUs [or other units].......................................           X,XXX           X,XXX
    Revenues....................................................               $               $
Commodity 2:
    TEUs........................................................           X,XXX           X,XXX
    Revenues....................................................               $               $
Etc. . . .


                 Part 5 Vessel Capacity and Utilization

Agreement-Wide Trade: U.S. Inbound (or Outbound) Name
Time Period: [Calendar Quarter]


                                            (A) Vessel
                                          capacity [TEUs        (B)
                                             or other       Utilization
                                              units]         [percent]

Carrier A [Name]:
    Liner Service 1 [Name]..............          XX,XXX              XX
    Liner Service 2.....................          XX,XXX              XX
    Liner Service 3.....................          XX,XXX              XX
    Etc. . . ...........................
Carrier B:
    Liner Service 1.....................          XX,XXX              XX
    Liner Service 2.....................          XX,XXX              XX
    Liner Service 3.....................          XX,XXX              XX
    Etc. . . .
Etc. . . .


 (C) Narrative statement on significant changes in vessel capacity that
occurred during the calendar quarter:___________________________________

________________________________________________________________________

                           Part 6 Vessel Calls

 Narrative statement on significant changes in vessel calls that
occurred during the calendar quarter:___________________________________

________________________________________________________________________

________________________________________________________________________

[[Page 248]]

                               Section III

                 Part 1 Contact Person and Certification

(A) Person(s) To Contact Regarding Monitoring Report.

 (1) Name_______________________________________________________________

 (2) Title______________________________________________________________

 (3) Firm Name and Business_____________________________________________

 (4) Business Telephone Number__________________________________________

 (5) Fax Number_________________________________________________________

 (6) E-Mail Address_____________________________________________________

(B) Certification.

This Monitoring Report, together with any and all appendices and
attachments thereto, was prepared and assembled in accordance with
instructions issued by the Federal Maritime Commission. The information
is, to the best of my knowledge, true, correct, and complete.

 Name (please print or type)____________________________________________

 Title__________________________________________________________________

 Relationship with parties to agreement_________________________________

 Signature______________________________________________________________

 Date___________________________________________________________________

[69 FR 64414, Nov. 4, 2004, as amended at 74 FR 50730, Oct. 1, 2009]



PART 540_PASSENGER VESSEL FINANCIAL RESPONSIBILITY--Table of Contents



 Subpart A_Proof of Financial Responsibility, Bonding and Certification
   of Financial Responsibility for Indemnification of Passengers for
                    Nonperformance of Transportation

Sec.
540.1 Scope.
540.2 Definitions.
540.3 Proof of financial responsibility, when required.
540.4 Procedure for establishing financial responsibility.
540.5 Insurance, guaranties, and escrow accounts.
540.6 Surety bonds.
540.7 Evidence of financial responsibility.
540.8 Denial, revocation, suspension, or modification.
540.9 Miscellaneous.

Form FMC-132A to Subpart A of Part 540
Form FMC-133A to Subpart A of Part 540
Appendix A to Subpart A of Part 540--Example of Escrow Agreement for Use
          Under 46 CFR 540.5(b)

 Subpart B_Proof of Financial Responsibility, Bonding and Certification
  of Financial Responsibility To Meet Liability Incurred for Death or
            Injury to Passengers or Other Persons on Voyages

540.20 Scope.
540.21 Definitions.
540.22 Proof of financial responsibility, when required.
540.23 Procedure for establishing financial responsibility.
540.24 Insurance, surety bonds, self-insurance, guaranties, and escrow
          accounts.
540.25 Evidence of financial responsibility.
540.26 Denial, revocation, suspension, or modification.
540.27 Miscellaneous.

Form FMC-132B to Subpart B of Part 540
Form FMC-133B to Subpart B of Part 540

                            Subpart C_General

540.91 OMB control numbers assigned pursuant to the Paperwork Reduction
          Act.

    Authority: 5 U.S.C. 552, 553; 31 U.S.C. 9701; 46 U.S.C. 305, 44101-
44106.

    Source: 49 FR 36313, Sept. 14, 1984, unless otherwise noted.



 Subpart A_Proof of Financial Responsibility, Bonding and Certification
   of Financial Responsibility for Indemnification of Passengers for
                    Nonperformance of Transportation



Sec. 540.1  Scope.

    (a) The regulations contained in this subpart set forth the
procedures whereby persons in the United States who arrange, offer,
advertise or provide passage on a vessel having berth or stateroom
accommodations for 50 or more passengers and embarking passengers at
U.S. ports shall establish their financial responsibility or, in lieu
thereof, file a bond or other security for obligations under the terms
of ticket contracts to indemnify passengers for nonperformance of
transportation to which they would be entitled. Included also are the
qualifications required by the Commission for issuance of a Certificate
(Performance) and the basis for the denial, revocation, modification, or
suspension of such Certificates.

[[Page 249]]

    (b) Failure to comply with this part may result in denial of an
application for a certificate. Vessels operating without the proper
certificate may be denied clearance by the Department of Homeland
Security and their owners may also be subject to a civil penalty of not
more than $5,000 in addition to a civil penalty of $200 for each passage
sold, such penalties to be assessed by the Federal Maritime Commission
(46 U.S.C. 44101-44106, 60105).

[49 FR 36313, Sept. 14, 1984, as amended at 74 FR 50730, Oct. 1, 2009;
78 FR 13277, Feb. 27, 2013]



Sec. 540.2  Definitions.

    As used in this subpart, the following terms shall have the
following meanings:
    (a) Person includes individuals, limited liability companies,
corporations, partnerships, associations, and other legal entities
existing under or authorized by the laws of the United States or any
State thereof or the District of Columbia, the Commonwealth of Puerto
Rico, the Virgin Islands or any territory or possession of the United
States, or the laws of any foreign country.
    (b) Vessel means any commercial vessel having berth or stateroom
accommodations for 50 or more passengers and embarking passengers at
U.S. ports.
    (c) Commission means the Federal Maritime Commission.
    (d) United States includes the Commonwealth of Puerto Rico, the
Virgin Islands or any territory or possession of the United States.
    (e) Berth or stateroom accommodation or passenger accommodations
includes all temporary and all permanent passenger sleeping facilities.
    (f) Certificate (Performance) means a Certificate of Financial
Responsibility for Indemnification of Passengers for Nonperformance of
Transportation issued pursuant to this subpart.
    (g) Passenger means any person who is to embark on a vessel at any
U.S. port and who has paid any amount for a ticket contract entitling
him to water transportation.
    (h) Passenger revenue means those monies wherever paid by passengers
who are to embark at any U.S. port for water transportation and all
other accommodations, services and facilities relating thereto.
    (i) Unearned passenger revenue means that passenger revenue received
for water transportation and all other accommodations, services, and
facilities relating thereto not yet performed; this includes port fees
and taxes paid, but excludes such items as airfare, hotel
accommodations, and tour excursions.
    (j) Insurer means any insurance company, underwriter, corporation,
or association or underwriters, ship owners' protection and indemnity
association, or other insurer acceptable to the Commission.
    (k) Evidence of insurance means a policy, certificate of insurance,
cover note, or other evidence of coverage acceptable to the Commission.
    (l) Whole-ship charter means an arrangement between a passenger
vessel operator and a corporate or institutional entity:
    (1) Which provides for the purchase of all the passenger
accommodations on a vessel for a particular voyage or series of voyages;
and
    (2) Whereby the involved corporate or institutional entity provides
such accommodations to the ultimate passengers free of charge and such
accommodations are not resold to the public.

[49 FR 36313, Sept. 14, 1984, as amended at 57 FR 41891, Sept. 14, 1992;
78 FR 13278, Feb. 27, 2013]



Sec. 540.3  Proof of financial responsibility, when required.

    No person in the United States may arrange, offer, advertise or
provide passage on a vessel unless a Certificate (Performance) has been
issued to or covers such person.



Sec. 540.4  Procedure for establishing financial responsibility.

    (a) In order to comply with section 3 of Public Law 89-777 (46
U.S.C. 44101-44102, 44104-44106) enacted November 6, 1966, there must be
filed with the Federal Maritime Commission an application on Form FMC-
131 for a Certificate of Financial Responsibility for Indemnification of
Passengers for Nonperformance of Transportation. Copies of Form FMC-131
may be obtained from the Commission's Web site at http://

[[Page 250]]

www.fmc.gov, or from the Bureau of Certification and Licensing, Federal
Maritime Commission, Washington, DC 20573.
    (b) An application for a Certificate (Performance) shall be filed
with the Bureau of Certification and Licensing, Federal Maritime
Commission, by the vessel owner or charterer at least 60 days in advance
of the arranging, offering, advertising, or providing of any water
transportation or tickets in connection therewith except that any person
other than the owner or charterer who arranges, offers, advertises, or
provides passage on a vessel may apply for a Certificate (Performance).
Late filing of the application will be permitted without penalty only
for good cause shown.
    (c) All applications and evidence required to be filed with the
Commission shall be in English, and any monetary terms shall be
expressed in terms of U.S. currency.
    (d) The Commission shall have the privilege of verifying any
statements made or any evidence submitted under the rules of this
subpart.
    (e) An application for a Certificate (Performance), excluding an
application for the addition or substitution of a vessel to the
applicant's fleet, shall be accompanied by a filing fee remittance of
$2,767. An application for a Certificate (Performance) for the addition
or substitution of a vessel to the applicant's fleet shall be
accompanied by a filing fee remittance of $1,382. Administrative
changes, such as the renaming of a vessel will not incur any additional
fees.
    (f) The application shall be signed by a duly authorized officer or
representative of the applicant with a copy of evidence of his or her
authority.
    (g) In the event of any material change in the facts as reflected in
the application, an amendment to the application shall be filed no later
than fifteen (15) days following such change. For the purpose of this
subpart, a material change shall be one which:
    (1) Results in a decrease in the amount submitted to establish
financial responsibility to a level below that required to be maintained
under the rules of this subpart, or
    (2) Requires that the amount to be maintained be increased above the
amount submitted to establish financial responsibility.
    (h) Notice of the application for issuance, denial, revocation,
suspension, or modification of any such Certificate will be published on
the Commission's web site at http://www.fmc.gov.

[78 FR 13278, Feb. 27, 2013]



Sec. 540.5  Insurance, guaranties, and escrow accounts.

    Except as provided in Sec. 540.9(j), the amount of coverage
required under this section and Sec. 540.6(b) shall be in an amount
determined by the Commission to be no less than 110 percent of the
unearned passenger revenue of the applicant on the date within the two
fiscal years immediately prior to the filing of the application which
reflects the greatest amount of unearned passenger revenue. The
Commission, for good cause shown, may consider a time period other than
the previous two-fiscal-year requirement in this section or other
methods acceptable to the Commission to determine the amount of coverage
required. Evidence of adequate financial responsibility for the purposes
of this subpart may be established by one or a combination (including
Sec. 540.6 Surety Bonds) of the following methods:
    (a) Filing with the Commission evidence of insurance, issued by an
insurer, providing coverage for indemnification of passengers in the
event of the nonperformance of water transportation.
    (1) Termination or cancellation of the evidence of insurance,
whether by the assured or by the insurer, and whether for nonpayment of
premiums, calls or assessments or for other cause, shall not be
effected: (i) Until notice in writing has been given to the assured or
to the insurer and to the Bureau of Certification and Licensing at its
office in Washington, DC 20573, by certified mail or courier service,
(ii) until after 30 days expire from the date notice is actually
received by the Commission, or until after the Commission revokes the
Certificate (Performance), whichever occurs first. Notice of termination

[[Page 251]]

or cancellation to the assured or insurer shall be simultaneous to such
notice given to the Commission. The insurer shall remain liable for
claims covered by said evidence of insurance arising by virtue of an
event which had occurred prior to the effective date of said termination
or cancellation. No such termination or cancellation shall become
effective while a voyage is in progress.
    (2) The insolvency or bankruptcy of the assured shall not constitute
a defense to the insurer as to claims included in said evidence of
insurance and in the event of said insolvency or bankruptcy, the insurer
agrees to pay any unsatisfied final judgments obtained on such claims.
    (3) No insurance shall be acceptable under these rules which
restricts the liability of the insurer where privity of the owner or
charterer has been shown to exist.
    (4) Paragraphs (a)(1) through (a)(3) of this section shall apply to
the guaranty as specified in paragraph (c) of this section.
    (b) Filing with the Commission evidence of an escrow account,
acceptable to the Commission, for indemnification of passengers in the
event of nonperformance of water transportation. Parties filing escrow
agreements for Commission approval may execute such agreements in the
form set forth in appendix A of subpart A of this part.
    (c) Filing with the Commission a guaranty on Form FMC-133A, by a
Protection and Indemnity Association with established assets, reserves
and reinsurance acceptable to the Commission, for indemnification of
passengers in the event of nonperformance of water transportation. The
requirements of Form FMC-133A, however, may be amended by the Commission
in a particular case for good cause. Copies of Form FMC-133A may be
obtained from the Commission's Web site at http://www.fmc.gov or from
the Bureau of Certification and Licensing.
    (d) Revenues derived from whole-ship charters, as defined in Sec.
540.2(l), may be exempted from consideration as unearned passenger
revenues, on condition that, in the case of a new operator or within 30
days of the execution of the whole-ship charter if the operator has a
Performance Certificate for the vessel in question: (1) A certified true
copy of the contract or charter is furnished with the application; (2)
The chartering party attests that it will redistribute the vessel's
passenger accommodations without charge; and (3) A document executed by
the chartering party's Chief Executive Officer or other responsible
corporate officer is submitted by which the chartering party
specifically acknowledges that its rights to indemnification under
section 3 of Public Law 89-777 (46 U.S.C. 44101-44102, 44104-44106) may
be affected by the reduction in section 3, Public Law 89-777, financial
responsibility coverage attributable to the exclusion of such funds from
the operator's UPR.

[49 FR 36313, Sept. 14, 1984, as amended at 55 FR 1824, Jan. 19, 1990;
57 FR 41891, Sept. 14, 1992; 57 FR 62480, Dec. 31, 1992; 67 FR 44776,
July 5, 2002; 74 FR 50730, Oct. 1, 2009; 78 FR 13278, Feb. 27, 2013]



Sec. 540.6  Surety bonds.

    (a) Where financial responsibility is not established under Sec.
540.5, a surety bond shall be filed on Form FMC-132A. Such surety bond
shall be issued by a bonding company authorized to do business in the
United States and acceptable to the Commission for indemnification of
passengers in the event of nonperformance of water transportation. The
requirements of Form FMC-132A, however, may be amended by the Commission
in a particular case for good cause. Copies of Form FMC-132A may be
obtained from the Commission's Web site at http://www.fmc.gov or from
the Bureau of Certification and Licensing.
    (b) In the case of a surety bond which is to cover all passenger
operations of the applicant subject to these rules, such bond shall be
in an amount calculated as in the introductory text of Sec. 540.5.
    (c) In the case of a surety bond which is to cover an individual
voyage, such bond shall be in an amount determined by the Commission to
equal the gross passenger revenue for that voyage.
    (d) The liability of the surety under the rules of this subpart to
any passenger shall not exceed the amount paid by any such passenger,
except

[[Page 252]]

that, no such bond shall be terminated while a voyage is in progress.

[49 FR 36313, Sept. 14, 1984, as amended at 55 FR 1824, Jan. 19, 1990;
78 FR 13278, Feb. 27, 2013]



Sec. 540.7  Evidence of financial responsibility.

    Where satisfactory proof of financial responsibility has been
established:
    (a) A Certificate (Performance) covering specified vessels shall be
issued evidencing the Commission's finding of adequate financial
responsibility to indemnify passengers for nonperformance of water
transportation.
    (b) The period covered by the Certificate (Performance) shall be
five (5) years, unless another termination date has been specified
thereon.

[78 FR 13278, Feb. 27, 2013]



Sec. 540.8  Denial, revocation, suspension, or modification.

    (a) Prior to the denial, revocation, suspension, or modification of
a Certificate (Performance), the Commission shall notify the applicant
of its intention to deny, revoke, suspend, or modify and shall include
with the notice the reason(s) for such action. If the applicant, within
20 days after the receipt of such notice, requests a hearing to show
that the evidence of financial responsibility filed with the Commission
does meet the rules of this subpart, such hearing shall be granted by
the Commission. Regardless of a hearing, a Certificate (Performance)
shall become null and void upon cancellation or termination of the
surety bond, evidence of insurance, guaranty, or escrow account.
    (b) A Certificate (Performance) may be denied, revoked, suspended,
or modified for any of the following reasons:
    (1) Making any willfully false statement to the Commission in
connection with an application for a Certificate (Performance);
    (2) Circumstances whereby the party does not qualify as financially
responsible in accordance with the requirements of the Commission;
    (3) Failure to comply with or respond to lawful inquiries, requests
for information, rules, regulations, or orders of the Commission
pursuant to the rules of this subpart.
    (c) If the applicant, within 20 days after notice of the proposed
denial, revocation, suspension, or modification under paragraph (b) of
this section, requests a hearing to show that such denial, revocation,
suspension, or modification should not take place, such hearing shall be
granted by the Commission.

[49 FR 36313, Sept. 14, 1984, as amended at 78 FR 13278, Feb. 27, 2013]



Sec. 540.9  Miscellaneous.

    (a) If any evidence filed with the application does not comply with
the requirements of this subpart, or for any reason fails to provide
adequate or satisfactory protection to the public, the Commission will
notify the applicant stating the deficiencies thereof.
    (b) Any financial evidence submitted to the Commission under the
rules of this subpart shall be written in the full and correct name of
the person to whom the Certificate (Performance) is to be issued, and in
case of a partnership, all partners shall be named.
    (c) The Commission's bond (Form FMC-132A), guaranty (Form FMC-133A),
and application (Form FMC-131) forms may be obtained from the
Commission's Web site at http://www.fmc.gov or from the Bureau of
Certification and Licensing at its office in Washington, DC 20573.
    (d) Any securities or assets accepted by the Commission (from
applicants, insurers, guarantors, escrow agents, or others) under the
rules of this subpart must be physically located in the United States.
    (e) Each applicant, insurer, escrow agent and guarantor shall
furnish a written designation of a person in the United States as legal
agent for service of process for the purposes of the rules of this
subpart. Such designation must be acknowledged, in writing, by the
designee and filed with the Commission. In any instance in which the
designated agent cannot be served because of death, disability, or
unavailability, the Secretary, Federal Maritime Commission, will be
deemed to be the agent for service of process. A party serving the
Secretary in accordance with the above provision must also serve the
certificant, insurer, escrow agent, or

[[Page 253]]

guarantor, as the case may be, by certified mail or courier service at
the last known address of them on file with the Commission.
    (f) [Reserved]
    (g) Financial data filed in connection with the rules of this
subpart shall be confidential except in instances where information
becomes relevant in connection with hearings which may be requested by
applicant pursuant to Sec. 540.8 (a) or (b).
    (h) Every person who has been issued a Certificate (Performance)
must submit to the Commission a semi-annual statement of any changes
with respect to the information contained in the application or
documents submitted in support thereof or a statement that no changes
have occurred. Negative statements are required to indicate no change.
These statements must cover the 6-month period of January through June
and July through December, and include a statement of the highest
unearned passenger vessel revenue accrued for each month in the 6-month
reporting period. Such statements will be due within 30 days after the
close of every such 6-month period. The reports required by this
paragraph shall be submitted to the Bureau of Certification and
Licensing at its office in Washington, DC 20573 by certified mail,
courier service, or electronic submission.
    (i) [Reserved]
    (j) The amount of: the insurance as specified in Sec. 540.5(a), the
escrow account as specified in Sec. 540.5(b), the guaranty as specified
in Sec. 540.5(c), or the surety bond as specified in Sec. 540.6 shall
not be required to exceed $15 million for one year after April 2, 2013.
Twelve (12) months after April 2, 2013, the amount shall not exceed $22
million, and twenty four (24) months after April 2, 2013, the amount
shall not exceed $30 million. Every two years, on the anniversary after
the cap on required financial responsibility reaches $30 million, the
cap shall automatically adjust to the nearest $1 million based on
changes as reflected in the U.S. Bureau of Labor Statistics' Consumer
Price Index. The Bureau of Certification and Licensing will determine
the amount of each adjustment and transmit that information to the
Secretary of the Federal Maritime Commission for publication on the
Commission's Web site (www.fmc.gov) and in the Federal Register with an
effective date that is no less than sixty (60) days after Federal
Register publication.
    (k) Every person in whose name a Certificate (Performance) has been
issued shall be deemed to be responsible for any unearned passage money
or deposits held by its agents or any other person authorized by the
certificant to sell the certificant's tickets. Certificants shall
promptly notify the Commission of any arrangements, including charters
and subcharters, made by it or its agent with any person pursuant to
which the certificant does not assume responsibility for all passenger
fares and deposits collected by such person or organization and held by
such person or organization as deposits or payment for services to be
performed by the certificant. If responsibility is not assumed by the
certificant, the certificant also must inform such person or
organization of the certification requirements of Public Law 89-777 and
not permit use of its vessel, name or tickets in any manner unless and
until such person or organization has obtained the requisite Certificate
(Performance) from the Commission. Failure to follow the procedures in
this paragraph means the certificant shall retain full financial
responsibility for indemnification of passengers for nonperformance of
the transportation.
    (l) Requests to substitute alternative financial responsibility. (1)
A certificant whose unearned passenger revenue at no time for the two
immediately prior fiscal years has exceeded 150% of the required cap may
submit a request to the Director, Bureau of Certification and Licensing,
to substitute alternative forms of financial protection to evidence the
financial responsibility as otherwise provided in this part.
    (2) The Commission will consider such requests on a case-by-case
basis.
    (3) The request must include copies of the requesting PVO's most
recently available annual and quarterly financial and income statements.
Other documents and information in support of its request may also be
submitted.

[[Page 254]]

    (4) For requests based upon the already existing protections
available to credit card purchases of passenger vessel transportation,
the requesting PVO must supply the following information for the most
recent twelve months preceding the request: Total deposits and payments
received for passenger vessel transportation; Credit card receipt
totals; Copy of the PVO's policy(ies) governing payments by passengers
(i.e., deposits and the number of days prior to sailing the passenger
must make final payment).
    (5) In determining whether and to what level to reduce the required
amount, the Commission may consider the extent to which other statutory
requirements provide relevant protections, the certificant's financial
data, and other specific facts and circumstances.
    (6) For PVOs with payment policies that provide for final payment
for the passenger vessel transportation no later than 60 days before the
vessel's sailing date, requests based upon credit card receipts may be
granted by the Commission permitting a reduction in the financial
responsibility otherwise required under this Part. The amount of such a
reduction will be established by determining the proportion that the
PVO's total credit card receipts bears to its total receipts and
applying one half of that percentage to the PVO's highest two-year UPR.
    (7) The Bureau of Certification and Licensing may request additional
information as may assist it in considering the request.
    (8) Where a request is granted, the alternative financial
responsibility shall remain in effect until the PVO's Certificate
(Performance) expires under Sec. 540.7(b) or until the Director, Bureau
of Certification and Licensing determines otherwise based upon changing
information pursuant to this paragraph or paragraph (l)(5) of this
section. Additional information may be requested at any time by the
Commission or BCL from a PVO whose request under this section has been
granted.

[49 FR 36313, Sept. 14, 1984, as amended at 55 FR 34568, Aug. 23, 1990;
78 FR 13278, Feb. 27, 2013]



               Sec. Form FMC-132A to Subpart A of Part 540

                              FORM FMC-132A

                       FEDERAL MARITIME COMMISSION

               Passenger Vessel Surety Bond (Performance)

 Surety Co. Bond No.____________________________________________________

 FMC Certificate No.____________________________________________________

    Know all men by these presents, that we -------------------- (Name
of applicant), of ---------------- (City), ---------------- (State and
country), as Principal (hereinafter called Principal), and ------------
---- (Name of surety), a company created and existing under the laws of
------------ (State and country) and authorized to do business in the
United States as Surety (hereinafter called Surety) are held and firmly
bound unto the United States of America in the penal sum of ------------
----, for which payment, well and truly to be made, we bind ourselves
and our heirs, executors, administrators, successors, and assigns,
jointly and severally, firmly by these presents. Whereas the Principal
intends to become a holder of a Certificate (Performance) pursuant to
the provisions of subpart A of part 540 of title 46, Code of Federal
Regulations and has elected to file with the Federal Maritime Commission
such a bond to insure financial responsibility and the supplying
transportation and other services subject to subpart A of part 540 of
title 46, Code of Federal Regulations, in accordance with the ticket
contract between the Principal and the passenger, and
    Whereas this bond is written to assure compliance by the Principal
as an authorized holder of a Certificate (Performance) pursuant to
subpart A of part 540 of title 46, Code of Federal Regulations, and
shall inure to the benefit of any and all passengers to whom the
Principal may be held legally liable for any of the damages herein
described. Now, therefore, the condition of this obligation is such that
if the Principal shall pay or cause to be paid to passengers any sum or
sums for which the Principal may be held legally liable by reason of the
Principal's failure faithfully to provide such transportation and other
accommodations and services in accordance

[[Page 255]]

with the ticket contract made by the Principal and the passenger while
this bond is in effect for the supplying of transportation and other
services pursuant to and in accordance with the provisions of subpart A
of part 540 of title 46, Code of Federal Regulations, then this
obligation shall be void, otherwise, to remain in full force and effect.
    The liability of the Surety with respect to any passenger shall not
exceed the passage price paid by or on behalf of such passenger. The
liability of the Surety shall not be discharged by any payment or
succession of payments hereunder, unless and until such payment or
payments shall amount in the aggregate to the penalty of the bond, but
in no event shall the Surety's obligation hereunder exceed the amount of
said penalty. The Surety agrees to furnish written notice to the Federal
Maritime Commission forthwith of all suits filed, judgments rendered,
and payments made by said Surety under this bond.
    This bond is effective the ------------ day of ----------------,
20----, 12:01 a.m., standard time at the address of the Principal as
stated herein and shall continue in force until terminated as
hereinafter provided. The Principal or the Surety may at any time
terminate this bond by written notice sent by certified mail, courier
service, or other electronic means such as email and fax to the other
and to the Federal Maritime Commission at its office in Washington, DC,
such termination to become effective thirty (30) days after actual
receipt of said notice by the Commission, except that no such
termination shall become effective while a voyage is in progress. The
Surety shall not be liable hereunder for any refunds due under ticket
contracts made by the Principal for the supplying of transportation and
other services after the termination of this bond as herein provided,
but such termination shall not affect the liability of the Surety
hereunder for refunds arising from ticket contracts made by the
Principal for the supplying of transportation and other services prior
to the date such termination becomes effective.
    The underwriting Surety will promptly notify the Director, Bureau of
Certification and Licensing, Federal Maritime Commission, Washington, DC
20573, of any claim(s) or disbursements against this bond.
    In witness whereof, the said Principal and Surety have executed this
instrument on ------------ day of ----------------, 20----.

                                PRINCIPAL

 Name___________________________________________________________________

 By_____________________________________________________________________
     (Signature and title)

 Witness________________________________________________________________

                                 SURETY

[SEAL]

 Name___________________________________________________________________

 By_____________________________________________________________________
     (Signature and title)

 Witness________________________________________________________________

    Only corporations or associations of individual insurers may qualify
to act as surety, and they must establish to the satisfaction of the
Federal Maritime Commission legal authority to assume the obligations of
surety and financial ability to discharge them.

[78 FR 13279, Feb. 27, 2013]



               Sec. Form FMC-133A to Subpart A of Part 540

                              FORM FMC-133A

                       FEDERAL MARITIME COMMISSION

 Guaranty in Respect of Liability for Nonperformance, Section 3 of the
                                   Act

 Guaranty No.___________________________________________________________

 FMC Certificate No.____________________________________________________

    1. Whereas ---------------- (Name of applicant) (Hereinafter
referred to as the ``Applicant'') is the Owner or Charterer of the
passenger Vessel(s) specified in the annexed Schedule (``the
Vessels'''), which are or may become engaged in voyages to or from
United States ports, and the Applicant desires to establish its
financial responsibility in accordance with section 3 of Pub. L. 89-777,
89th Congress, approved November 6, 1966 (``the Act'') then, provided
that the Federal Maritime Commission (``FMC'') shall have accepted, as
sufficient for that purpose, the Applicant's application, supported by
this Guaranty, and provided that FMC shall issue to the Applicant a
Certificate

[[Page 256]]

(Performance) (``Certificate''), the undersigned Guarantor hereby
guarantees to discharge the Applicant's legal liability to indemnify the
passengers of the Vessels for nonperformance of transportation within
the meaning of section 3 of the Act, in the event that such legal
liability has not been discharged by the Applicant within 21 days after
any such passenger has obtained a final judgment (after appeal, if any)
against the Applicant from a United States Federal or State Court of
competent jurisdiction, or has become entitled to payment of a specified
sum by virtue of a compromise settlement agreement made with the
Applicant, with the approval of the Guarantor, whereby, upon payment of
the agreed sum, the Applicant is to be fully, irrevocably and
unconditionally discharged from all further liability to such passenger
for such nonperformance.
    2. The Guarantor's liability under this Guaranty in respect to any
passenger shall not exceed the amount paid by such passenger; and the
aggregate amount of the Guarantor's liability under this Guaranty shall
not exceed $------------.
    3. The Guarantor's liability under this Guaranty shall attach only
in respect of events giving rise to a cause of action against the
Applicant, in respect of any of the Vessels, for nonperformance of
transportation within the meaning of Section 3 of the Act, occurring
after the Certificate has been granted to the Applicant, and before the
expiration date of this Guaranty, which shall be the earlier of the
following dates:
    (a) The date whereon the Certificate is withdrawn, or for any reason
becomes invalid or ineffective; or
    (b) The date 30 days after the date of receipt by FMC of notice in
writing delivered by certified mail, courier service or other electronic
means such as email and fax, that the Guarantor has elected to terminate
this Guaranty except that: (i) If, on the date which would otherwise
have been the expiration date under the foregoing provisions (a) or (b)
of this Clause 3, any of the Vessels is on a voyage whereon passengers
have been embarked at a United States port, then the expiration date of
this Guaranty shall, in respect of such Vessel, be postponed to the date
on which the last passenger on such voyage shall have finally
disembarked; and (ii) Such termination shall not affect the liability of
the Guarantor for refunds arising from ticket contracts made by the
Applicant for the supplying of transportation and other services prior
to the date such termination becomes effective.
    4. If, during the currency of this Guaranty, the Applicant requests
that a vessel owned or operated by the Applicant, and not specified in
the annexed Schedule, should become subject to this Guaranty, and if the
Guarantor accedes to such request and so notifies FMC in writing or
other electronic means such as email and fax, then, provided that within
30 days of receipt of such notice, FMC shall have granted a Certificate,
such Vessel shall thereupon be deemed to be one of the Vessels included
in the said Schedule and subject to this Guaranty.
    5. The Guarantor hereby designates ------------, with offices at --
----------, as the Guarantor's legal agent for service of process for
the purposes of the Rules of the Federal Maritime Commission, subpart A
of part 540 of title 46, Code of Federal Regulations, issued under
Section 3 of Pub. L. 89-777 (80 Stat. 1357, 1358), entitled ``Security
for the Protection of the Public.''

________________________________________________________________________
(Place and Date of Execution)

________________________________________________________________________
(Type Name of Guarantor)

________________________________________________________________________
(Type Address of Guarantor)

 By_____________________________________________________________________
(Signature and Title)

               Schedule of Vessels Referred to in Clause 1

       Vessels Added to This Schedule in Accordance With Clause 4

[78 FR 13280, Feb. 27, 2013]



 Sec. Appendix A to Subpart A of Part 540--Example of Escrow Agreement
                      for Use Under 46 CFR 540.5(b)

                            ESCROW AGREEMENT

    THIS ESCROW AGREEMENT, made as of this ---- day of (month & year),
by and between (Customer), a corporation/company

[[Page 257]]

having a place of business at (``Customer'') --------------------------
-------- and (Banking Institution name & address) a banking corporation,
having a place of business at (``Escrow Agent'').
    Witnesseth:
    WHEREAS, Customer wishes to establish an escrow account in order to
provide for the indemnification of passengers in the event of non-
performance of water transportation to which such passengers would be
entitled, and to establish Customer's financial responsibility
therefore; and
    WHEREAS, Escrow Agent wishes to act as Escrow Agent of the escrow
account established hereunder;
    NOW, THEREFORE, in consideration of the premises and covenants
contained herein and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:
    1. Customer has established on (month, & year) (the ``Commencement
Date'') an escrow account with the Escrow Agent which escrow account
shall hereafter be governed by the terms of this Agreement (the ``Escrow
Account''). Escrow Agent shall maintain the Escrow Account in its name,
in its capacity as Escrow Agent.
    2. Customer will determine, as of the date prior to the Commencement
Date, the amount of unearned passenger revenue, including any funds to
be transferred from any predecessor Escrow Agent. Escrow Agent shall
have no duty to calculate the amount of unearned passenger revenue.
Unearned Passenger Revenues are defined as that passenger revenue
received for water transportation and all other accommodations, services
and facilities relating thereto not yet performed. 46 CFR 540.2(i).
    3. Customer will deposit on the Commencement Date into the Escrow
Account cash in an amount equal to the amount of Unearned Passenger
Revenue determined under Paragraph 2 above plus a cash amount (``the
Fixed Amount'') equal to (10 percent of the Customer's highest Unearned
Passenger Revenue for the prior two fiscal years. For periods on or
after (year of agreement (2009)), the Fixed Amount shall be determined
by the Commission on an annual basis, in accordance with 46 CFR Part
540.
    4. Customer acknowledges and agrees that until such time as a cruise
has been completed and Customer has taken the actions described herein,
Customer shall not be entitled, nor shall it have any interest in any
funds deposited with Escrow Agent to the extent such funds represent
Unearned Passenger Revenue.
    5. Customer may, at any time, deposit additional funds consisting
exclusively of Unearned Passenger Revenue and the Fixed Amount, into the
Escrow Account and Escrow Agent shall accept all such funds for deposit
and shall manage all such funds pursuant to the terms of this Agreement.
    6. After the establishment of the Escrow Account, as provided in
Paragraph 1, Customer shall on a weekly basis on each (identify day of
week), or if Customer or Escrow Agent is not open for business on
(identify day of week) then on the next business day that Customer and
Escrow Agent are open for business recompute the amount of Unearned
Passenger Revenue as of the close of business on the preceding business
day (hereinafter referred to as the ``Determination Date'') and deliver
a Recomputation Certificate to Escrow Agent on such date. In each such
weekly recomputation Customer shall calculate the amount by which
Unearned Passenger Revenue has decreased due to (i) the cancellation of
reservations and the corresponding refund of monies from Customer to the
persons or entities canceling such reservations; (ii) the amount which
Customer has earned as revenue as a result of any cancellation fee
charged upon the cancellation of any reservations; (iii) the amount
which Customer has earned due to the completion of cruises; and (iv) the
amount by which Unearned Passenger Revenue has increased due to receipts
from passengers for future water transportation and all other
accommodations, services and facilities relating thereto and not yet
performed.
    The amount of Unearned Passenger Revenue as recomputed shall be
compared with the amount of Unearned Passenger Revenue for the
immediately preceding period to determine whether there has been a net
increase or decrease in Unearned Passenger Revenue. If the balance of
the Escrow Account as of the Determination Date exceeds the sum of the
amount of Unearned Passenger Revenue, as recomputed, plus the Fixed
Amount then applicable, then Escrow Agent shall make any excess funds in
the Escrow Account available to Customer. If the balance in the Escrow
Account as of the Determination Date is less than the sum of the amount
of Unearned Passenger Revenue, as recomputed, plus an amount equal to
the Fixed Amount, Customer shall deposit an amount equal to such
deficiency with the Escrow Agent. Such deposit shall be made in
immediately available funds via wire transfer or by direct transfer from
the Customer's U.S. Bank checking account before the close of business
on the next business day following the day on which the Recomputation
Certificate is received by Escrow Agent. The Escrow Agent shall promptly
notify the Commission within two business days any time a deposit
required by a Recomputation Certificate delivered to the Escrow Agent is
not timely made.
    7. Customer shall furnish a Recomputation Certificate, in
substantially the form attached hereto as Annex 1, to the Federal
Maritime Commission (the ``Commission'')

[[Page 258]]

and to the Escrow Agent setting forth the weekly recomputation of
Unearned Passenger Revenue required by the terms of Paragraph 6 above.
Customer shall mail or fax to the Commission and deliver to the Escrow
Agent the required Recomputation Certificate before the close of
business on the business day on which Customer recomputes the amount of
Unearned Passenger Revenue. Notwithstanding any other provision herein
to the contrary, Escrow Agent shall not make any funds available to
Customer out of the Escrow Account because of a decrease in the amount
of Unearned Passenger Revenue or otherwise, until such time as Escrow
Agent receives the above described Recomputation Certificate from
Customer, which Recomputation Certificate shall include the Customer's
verification certification in the form attached hereto as Annex 1. The
copies of each Recomputation Certificate to be furnished to the
Commission shall be mailed to the Commission at the address provided in
Paragraph 25 herein. If copies are not mailed to the Commission, faxed
or emailed copies shall be treated with the same legal effect as if an
original signature was furnished. No repayment of the Fixed Amount may
be made except upon approval of the Commission.
    Within fifteen (15) days after the end of each calendar month,
Escrow Agent shall provide to Customer and to the Commission at the
addresses provided in Paragraph 25 below, a comprehensive statement of
the Escrow Account. Such statement shall provide a list of assets in the
Escrow Account, the balance thereof as of the beginning and end of the
month together with the original cost and current market value thereof,
and shall detail all transactions that took place with respect to the
assets and investments in the Escrow Account during the preceding month.
    8. At the end of each quarter of Customer's fiscal year, Customer
shall cause the independent auditors then acting for it to conduct an
examination in accordance with generally accepted auditing standards
with respect to the weekly Recomputation Certificates furnished by
Customer of the Unearned Passenger Revenues and the amounts to be
deposited in the Escrow Account and to express their opinion within
forty-five (45) days after the end of such quarter as to whether the
calculations at the end of each fiscal quarter are in accordance with
the provisions of Paragraph 6 of this Agreement. The determination of
Unearned Passenger Revenue of such independent auditors shall have
control over any computation of Unearned Passenger Revenue by Customer
in the event of any difference between such determinations. To the
extent that the actual amount of the Escrow Account is less than the
amount determined by such independent auditors to be required to be on
deposit in the Escrow Account, Customer shall immediately deposit an
amount of cash into the Escrow Account sufficient to cause the balance
of the Escrow Account to equal the amount determined to be so required.
Such deposit shall be completed no later than the business day after
receipt by the Escrow Agent of the auditor's opinion containing the
amount of such deficiency.
    The opinion of such independent auditors shall be furnished by such
auditors directly to Customer, to the Commission and to the Escrow Agent
at their addresses contained in this Agreement. In the event that a
required deposit to the Escrow Agent is not made within one Business Day
after receipt of an auditor's report or a Recomputation Certificate,
Escrow Agent shall send notification to the Commission within the next
two Business Days.
    9. Escrow Agent shall invest the funds in the Escrow Account in
Qualified Investments as directed by Customer in its sole and absolute
discretion. ``Qualified Investments'' means, to the extent permitted by
applicable law:
    (a) Government obligations or obligations of any agency or
instrumentality of the United States of America;
    (b) Commercial paper issued by a United States company rated in the
two highest numerical ``A'' categories (without regard to further
gradation or refinement of such rating category) by Standard & Poor's
Corporation, or in the two highest numerical ``Prime'' categories
(without regard to further gradation or refinement of such rating) by
Moody's Investor Services, Inc.;
    (c) Certificates of deposit and money market accounts issued by any
United States bank, savings institution or trust company, including the
Escrow Agent, and time deposits of any bank, savings institution or
trust company, including the Escrow Agent, which are fully insured by
the Federal Deposit Insurance Corporation;
    (d) Corporate bonds or obligations which are rated by Standard &
Poor's Corporation or Moody's Investors Service, Inc. in one of their
three highest rating categories (without regard to any gradation or
refinement of such rating category by a numerical or other modifier);
and
    (e) Money market funds registered under the Federal Investment
Company Act of 1940, as amended, and whose shares are registered under
the Securities Act of 1933, as amended, and whose shares are rated
``AAA'', ``AA+'' or ``AA'' by Standard & Poor's Corporation.
    10. All interest and other profits earned on the amounts placed in
the Escrow Account shall be credited to Escrow Account.
    11. This Agreement has been entered into by the parties hereto, and
the Escrow Account has been established hereunder by Customer, to
establish the financial responsibility of Customer as the owner,
operator or

[[Page 259]]

charterer of the passenger vessel(s) (see Exhibit A), in accordance with
Section 3 of Public Law 89-777, 89th Congress, approved November 6, 1966
(the ``Act''). The Escrow Account shall be held by Escrow Agent in
accordance with the terms hereof, to be utilized to discharge Customer's
legal liability to indemnify the passengers of the named vessel(s) for
non-performance of transportation within the meaning of Paragraph 3 of
the Act. The Escrow Agent shall make indemnification payments pursuant
to written instructions from Customer, on which the Escrow Agent may
rely, or in the event that such legal liability has not been discharged
by Customer within twenty-one (21) days after any such passenger has
obtained a final judgment (after appeal, if any) against Customer from a
United States Federal or State Court of competent jurisdiction the
Escrow Agent is authorized to pay funds out of the Escrow Account, after
such twenty-one day period, in accordance with and pursuant to the terms
of an appropriate order of a court of competent jurisdiction on receipt
of a certified copy of such order.
    As further security for Customer's obligation to provide water
transportation to passengers holding tickets for transportation on the
passenger vessel(s) (see Exhibit A) Customer will pledge to each
passenger who has made full or partial payment for future passage on the
named vessel(s) an interest in the Escrow Account equal to such payment.
Escrow Agent is hereby notified of and acknowledges such pledges.
Customers' instructions to Escrow Agent to release funds from the Escrow
Account as described in this Agreement shall constitute a certification
by Customer of the release of pledge with respect to such funds due to
completed, canceled or terminated cruises. Furthermore, Escrow Agent
agrees to hold funds in the Escrow Account until directed by Customer or
a court order to release such funds as described in this Agreement.
Escrow Agent shall accept instructions only from Customer, acting on its
own behalf or as agent for its passengers, and shall not have any
obligations at any time to act pursuant to instructions of Customer's
passengers or any other third parties except as expressly described
herein. Escrow Agent hereby waives any right of offset to which it is or
may become entitled with regard to the funds on deposit in the Escrow
Account which constitute Unearned Passenger Revenue.
    12. Customer agrees to provide to the Escrow Agent all information
necessary to facilitate the administration of this Agreement and the
Escrow Agent may rely upon any information so provided.
    13. Customer hereby warrants and represents that it is a corporation
in good standing in its State of organization and that is qualified to
do business in the State of . Customer further warrants and represents
that (i) it possesses full power and authority to enter into this
Agreement and fulfill its obligations hereunder and (ii) that the
execution, delivery and performance of this Agreement have been
authorized and approved by all required corporate actions.
    14. Escrow Agent hereby warrants and represents that it is a
national banking association in good standing. Escrow Agent further
warrants and represents that (i) it has full power and authority to
enter into this Agreement and fulfill its obligations hereunder and (ii)
that the execution, delivery and performance of this Agreement have been
authorized and approved by all required corporate actions.
    15. This Agreement shall have a term of one (1) year and shall be
automatically renewed for successive one (1) year terms unless notice of
intent not to renew is delivered to the other party to this Agreement
and to the Commission at least 90 days prior to the expiration of the
current term of this Agreement. Notice shall be given by certified mail
to the parties at the addresses provided in Paragraph 25 below. Notice
shall be given by certified mail to the Commission at the address
specified in this Agreement.
    16. (a) Customer hereby agrees to indemnify and hold harmless Escrow
Agent against any and all claims, losses, damages, liabilities, cost and
expenses, including litigation, arising hereunder, which might be
imposed or incurred on Escrow Agent for any acts or omissions of the
Escrow Agent or Customer, not caused by the negligence or willful
misconduct of the Escrow Agent. The indemnification set forth herein
shall survive the resignation or removal of the Escrow Agent and the
termination of this agreement.
    (b) In the event of any disagreement between parties which result in
adverse claims with respect to funds on deposit with Escrow Agent or the
threat thereof, Escrow Agent may refuse to comply with any demands on it
with respect thereto as long as such disagreement shall continue and in
so refusing, Escrow Agent need not make any payment and Escrow Agent
shall not be or become liable in any way to Customer or any third party
(whether for direct, incidental, consequential damages or otherwise) for
its failure or refusal to comply with such demands and it shall be
entitled to continue so to refrain from acting and so refuse to act
until such conflicting or adverse demands shall finally terminate by
mutual written agreement acceptable to Escrow Agent or by a final, non-
appealable order of a court of competent jurisdiction.
    17. Escrow Agent shall be entitled to such compensation for its
services hereunder as may be agreed upon from time to time by Escrow
Agent and Customer and which shall initially be set forth in a separate
letter

[[Page 260]]

agreement between Escrow Agent and Customer. This Agreement shall not
become effective until such letter agreement has been executed by both
parties hereto and confirmed in writing to the Commission.
    18. Customer may terminate this Agreement and engage a successor
escrow agent, after giving at least 90 days written termination notice
to Escrow Agent prior to terminating Escrow Agent if such successor
agent is a commercial bank whose passbook accounts are insured by the
Federal Deposit Insurance Corporation and such successor agrees to the
terms of this agreement, or if there is a new agreement then such
termination shall not be effective until the new agreement is approved
in writing by the Commission. Upon giving the written notice to Customer
and the Commission, Escrow Agent may terminate any and all duties and
obligations imposed on Escrow Agent by this Agreement effective as of
the date specified in such notice, which date shall be at least 90 days
after the date such notice is given. All escrowed funds as of the
termination date specified in the notice shall be turned over to the
successor escrow agent, or if no successor escrow agent has been named
within 90 days after the giving of such notice, then all such escrowed
funds for sailing scheduled to commence after the specified termination
date shall be returned to the person who paid such passage fares upon
written approval of the Commission. In the event of any such termination
where the Escrow Agent shall be returning payments to the passengers,
then Escrow Agent shall request from Customer a list of passenger names,
addresses, deposit/fare amounts and other information needed to make
refunds. On receipt of such list, Escrow Agent shall return all passage
fares held in the Escrow Account as of the date of termination specified
in the notice to the passengers, excepting only amounts Customer is
entitled to receive pursuant to the terms of this Agreement for cruises
completed through the termination date specified in the notice, and all
interest which shall be paid to Customer.
    In the event of termination of this Agreement and if alternative
evidence of financial responsibility has been accepted by the Commission
and written evidence satisfactory to Escrow Agent of the Commission's
acceptance is presented to Escrow Agent, then Escrow Agent shall release
to Customer all passage fares held in the Escrow Account as of the date
of termination specified in the notice. In the event of any such
termination where written evidence satisfactory to Escrow Agent of the
Commission's acceptance has not been presented to Escrow Agent, then
Escrow Agent shall request from Customer a list of passenger names,
addresses, deposit/fare amounts and other information needed to make
refunds. On receipt of such list, Escrow Agent shall return all passage
fares held in the Escrow Account as of the date of termination specified
in the notice to the passengers, excepting only amounts Customer is
entitled to receive pursuant to the terms of this Agreement for cruises
completed through the termination date specified in the notice, and all
interest which shall be paid to Customer. Upon termination, Customer
shall pay all costs and fees previously earned or incurred by Escrow
Agent through the termination date.
    19. Neither Customer nor Escrow Agent shall have the right to sell,
pledge, hypothecate, assign, transfer or encumber funds or assets in the
Escrow Account except in accordance with the terms of this Agreement.
    20. This Agreement is for the benefit of the parties hereto and,
accordingly, each and every provision hereof shall be enforceable by any
or each or both of them. Additionally, this Agreement shall be
enforceable by the Commission. However, this Agreement shall not be
enforceable by any other party, person or entity whatsoever.
    21. (a) No amendments, modifications or other change in the terms of
this Agreement shall be effective for any purpose whatsoever unless
agreed upon in writing by Escrow Agent and Customer and approved in
writing by the Commission.
    (b) No party hereto may assign its rights or obligations hereunder
without the prior written consent of the other, and unless approved in
writing by the Commission. The merger of Customer with another entity or
the transfer of a controlling interest in the stock of Customer shall
constitute an assignment hereunder for which prior written approval of
the Commission is required, which approval shall not be unreasonably
withheld.
    22. The foregoing provisions shall be binding upon undersigned,
their assigns, successors and personal representative.
    23. The Commission shall have the right to inspect the books and
records of the Escrow Agent and those of Customer as related to the
Escrow Account. In addition, the Commission shall have the right to seek
copies of annual audited financial statements and other financial
related information.
    24. All investments, securities and assets maintained under the
Escrow Agreement will be physically located in the United States.
    25. Notices relating to this Agreement shall be sent to Customer at
(address) and to Escrow Agent at (address) or to such other address as
any party hereto may hereafter designate in writing. Any communication
sent to the Commission or its successor organization shall be sent to
the following address: Bureau of Certification and Licensing, Federal
Maritime Commission, 800 North Capitol NW., Washington, DC 20573-0001.
    26. This agreement may be executed in any number of counterparts,
each of which shall be deemed to be an original and all of which

[[Page 261]]

when taken together shall constitute one and the same instrument.
    27. This Agreement is made and delivered in, and shall be construed
in accordance with the laws of the State -------- of without regard to
the choice of law rules.
    IN WITNESS WHEREOF, the undersigned have each caused this Agreement
to be executed on their behalf as of the date first above written.
 By:____________________________________________________________________

 Title:_________________________________________________________________

 By:____________________________________________________________________

 Title:_________________________________________________________________

                                EXHIBIT A

    ESCROW AGREEMENT, dated -------------- by and between (Customer) and
(Escrow Agent).

                  Passenger Vessels Owned or Chartered

                                 ANNEX 1

                        RECOMPUTATION CERTIFICATE

To: Federal Maritime Commission
And To: (``Bank'')
    The undersigned, the Controller of -------------------- hereby
furnishes this Recomputation Certificate pursuant to the terms of the
Escrow Agreement dated ----------------, between the Customer and
(``Bank''). Terms herein shall have the same definitions as those in
such Escrow Agreement and Federal Maritime Commission regulations.

I. Unearned Passenger Revenue as of (``Date'') was: $------------
a. Additions to unearned Passenger Revenue since such date were:
1. Passenger Receipts: $------------
2. Other (Specify) $------------
3. Total Additions: $------------
b. Reductions in Unearned Passenger Revenue since such date were:
1. Completed Cruises: $------------
2. Refunds and Cancellations: $------------
3. Other (Specify) $------------
4. Total Reductions: $------------
II. Unearned Passenger Revenue as of the date of this Recomputation
Certificate is: $------------
a. Excess Escrow Amount $------------
III. Plus the Required Fixed Amount: $------------
IV. Total Required in Escrow: $------------
V. Current Balance in Escrow Account: $------------
VI. Amount to be Deposited in Escrow Account: $------------
VII. Amount of Escrow Account available to Operator: $------------
VIII. I declare under penalty of perjury that the above information is
true and correct.
 Dated:_________________________________________________________________

________________________________________________________________________
(Signature)
Name: Title:

________________________________________________________________________
(Signature)
Name: Title:

[78 FR 13281, Feb. 27, 2013]



 Subpart B_Proof of Financial Responsibility, Bonding and Certification
  of Financial Responsibility To Meet Liability Incurred for Death or
            Injury to Passengers or Other Persons on Voyages



Sec. 540.20  Scope.

    The regulations contained in this subpart set forth the procedures
whereby owners or charterers of vessels having berth or stateroom
accommodations for 50 or more passengers and embarking passengers at
U.S. ports shall establish their financial responsibility to meet any
liability which may be incurred for death or injury to passengers or
other persons on voyages to or from U.S. ports. Included also are the
qualifications required by the Commission for issuance of a Certificate
(Casualty) and the basis for the denial, revocation, suspension, or
modification of such Certificates.



Sec. 540.21  Definitions.

    As used in this subpart, the following terms shall have the
following meanings:
    (a) Person includes individuals, corporations, partnerships,
associations, and other legal entities existing under or authorized by
the laws of the United States or any state thereof or the District of
Columbia, the Commonwealth of Puerto Rico, the Virgin Islands or any
territory or possession of the United States, or the laws of any foreign
country.
    (b) Vessel means any commercial vessel having berth or stateroom
accommodations for 50 or more passengers and embarking passengers at
U.S. ports.
    (c) Commission means the Federal Maritime Commission.
    (d) United States includes the Commonwealth of Puerto Rico, the
Virgin Islands or any territory or possession of the United States.

[[Page 262]]

    (e) Berth or stateroom accommodations or passenger accommodations
includes all temporary and all permanent passenger sleeping facilities.
    (f) Certificate (Casualty) means a Certificate of Financial
Responsibility to Meet Liability Incurred for Death or Injury to
Passengers or Other Persons on Voyages issued pursuant to this subpart.
    (g) Voyage means voyage of a vessel to or from U.S. ports.
    (h) Insurer means any insurance company, underwriter, corporation or
association of underwriters, ship owners' protection and indemnity
association, or other insurer acceptable to the Commission.
    (i) Evidence of insurance means a policy, certificate of insurance,
cover note, or other evidence of coverage acceptable to the Commission.
    (j) For the purpose of determining compliance with Sec. 540.22,
passengers embarking at United States ports means any persons, not
necessary to the business, operation, or navigation of a vessel, whether
holding a ticket or not, who board a vessel at a port or place in the
United States and are carried by the vessel on a voyage from that port
or place.



Sec. 540.22  Proof of financial responsibility, when required.

    No vessel shall embark passengers at U.S. ports unless a Certificate
(Casualty) has been issued to or covers the owner or charterer of such
vessel.



Sec. 540.23  Procedure for establishing financial responsibility.

    (a) In order to comply with section 2 of Pub. L. 89-777 (46 U.S.C.
44101, 44103-44106) enacted November 6, 1966, there must be filed an
Application on Form FMC-131 for a Certificate of Financial
Responsibility to Meet Liability Incurred for Death or Injury to
Passengers or Other Persons on Voyages. Copies of Form FMC-131 may be
obtained from the Secretary, Federal Maritime Commission, Washington, DC
20573.
    (b) An application for a Certificate (Casualty) shall be filed in
duplicate with the Secretary, Federal Maritime Commission, by the vessel
owner or charterer at least 60 days in advance of the sailing. Late
filing of the application will be permitted only for good cause shown.
All applications and evidence required to be filed with the Commission
shall be in English, and any monetary terms shall be expressed in terms
of U.S. currency. The Commission shall have the privilege of verifying
any statements made or any evidence submitted under the rules of this
subpart. An application for a Certificate (Casualty), excluding an
application for the addition or substitution of a vessel to the
applicant's fleet, shall be accompanied by a filing fee remittance of
$1,206. An application for a Certificate (Casualty) for the addition or
substitution of a vessel to the applicant's fleet shall be accompanied
by a filing fee remittance of $605.
    (c) The application shall be signed by a duly authorized officer or
representative of the applicant with a copy of evidence of his
authority. In the event of any material change in the facts as reflected
in the application, an amendment to the application shall be filed no
later than five (5) days following such change. For the purpose of this
subpart, a material change shall be one which: (1) Results in a decrease
in the amount submitted to establish financial responsibility to a level
below that required to be maintained under the rules of this subpart, or
(2) requires that the amount to be maintained be increased above the
amount submitted to establish financial responsibility. Notice of the
application for, issuance, denial, revocation, suspension, or
modification of any such Certificate shall be published in the Federal
Register.

[49 FR 36313, Sept. 14, 1984, as amended at 59 FR 59172, Nov. 16, 1994;
63 FR 50537, Sept. 22, 1998; 67 FR 39861, June 11, 2002; 70 FR 10331,
Mar. 3, 2005; 74 FR 50731, Oct. 1, 2009]



Sec. 540.24  Insurance, surety bonds, self-insurance, guaranties, and
escrow accounts.

    Evidence of adequate financial responsibility for the purposes of
this subpart may be established by one of the following methods:
    (a) Filing with the Commission evidence of insurance issued by an
insurer providing coverage for liability which may be incurred for death
or injury to

[[Page 263]]

passengers or other persons on voyages in an amount based upon the
number of passenger accommodations aboard the vessel, calculated as
follows:

Twenty thousand dollars for each passenger accommodation up to and
including 500; plus
Fifteen thousand dollars for each additional passenger accommodation
between 501 and 1,000; plus
Ten thousand dollars for each additional passenger accommodation between
1,001 and 1,500; plus
Five thousand dollars for each passenger accommodation in excess of
1,500;


Except that, if the applicant is operating more than one vessel subject
to this subpart, the amount prescribed by this paragraph shall be based
upon the number of passenger accommodations on the vessel being so
operated which has the largest number of passenger accommodations.
    (1) Termination or cancellation of the evidence of insurance,
whether by the assured or by the insurer, and whether for nonpayment of
premiums, calls or assessments, or for other cause, shall not be
effected: (i) Until notice in writing has been given to the assured or
to the insurer and to the Secretary of the Commission at its office in
Washington, DC 20573, by certified mail, and (ii) until after 30 days
expire from the date notice is actually received by the Commissioner, or
until after the Commission revokes the Certificate (Casualty), whichever
occurs first. Notice of termination or cancellation to the assured or
insurer shall be simultaneous to such notice given to the Commission.
The insurer shall remain liable for claims covered by said evidence of
insurance arising by virtue of an event which had occurred prior to the
effective date of said termination or cancellation. No such termination
or cancellation shall become effective while a voyage is in progress.
    (2) The insolvency or bankruptcy of the assured shall not constitute
a defense to the insurer as to claims included in said evidence of
insurance and in the event of said insolvency or bankruptcy, the insurer
agrees to pay any unsatisfied final judgments obtained on such claims.
    (3) No insurance shall be acceptable under these rules which
restricts the liability of the insurer where privity of the owner or
charterer has been shown to exist.
    (4) Paragraphs (a)(1) through (a)(3) of this section shall apply to
the guaranty as specified in paragraph (d) of this section.
    (b) Filing with the Commission a surety bond on Form FMC-132B issued
by a bonding company authorized to do business in the United States and
acceptable to the Commission. Such surety bond shall evidence coverage
for liability which may be incurred for death or injury to passengers or
other persons on voyages in an amount calculated as in paragraph (a) of
this section, and shall not be terminated while a voyage is in progress.
The requirements of Form FMC-132B, however, may be amended by the
Commission in a particular case for good cause.
    (c) Filing with the Commission for qualification as a self-insurer
such evidence acceptable to the Commission as will demonstrate continued
and stable passenger operations over an extended period of time in the
foreign or domestic trade of the United States. In addition, applicant
must demonstrate financial responsibility by maintenance of working
capital and net worth, each in an amount calculated as in paragraph (a)
of this section. The Commission will take into consideration all current
contractual requirements with respect to the maintenance of working
capital and/or net worth to which the applicant is bound. Evidence must
be submitted that the working capital and net worth required above are
physically located in the United States. This evidence of financial
responsibility shall be supported by and subject to the following which
are to be submitted on a continuing basis for each year or portion
thereof while the Certificate (Casualty) is in effect:
    (1) A current quarterly balance sheet, except that the Commission,
for good cause shown, may require only an annual balance sheet;
    (2) A current quarterly statement of income and surplus except that
the Commission, for good cause shown, may require only an annual
statement of income and surplus;

[[Page 264]]

    (3) An annual current balance sheet and an annual current statement
of income and surplus to be certified by appropriate certified public
accountants;
    (4) An annual current statement of the book value or current market
value of any assets physically located within the United States together
with a certification as to the existence and amount of any encumbrances
thereon;
    (5) An annual current credit rating report by Dun and Bradstreet or
any similar concern found acceptable to the Commission;
    (6) A list of all contractual requirements or other encumbrances
(and to whom the applicant is bound in this regard) relating to the
maintenance of working capital and net worth;
    (7) All financial statements required to be submitted under this
section shall be due within a reasonable time after the close of each
pertinent accounting period;
    (8) Such additional evidence of financial responsibility as the
Commission may deem necessary in appropriate cases.
    (d) Filing with the Commission a guaranty on Form FMC-133B by a
guarantor acceptable to the Commission. Any such guaranty shall be in an
amount calculated as in paragraph (a) of this section. The requirements
of Form FMC-133B, however, may be amended by the Commission in a
particular case for good cause.
    (e) Filing with the Commission evidence of an escrow account,
acceptable to the Commission, the amount of such account to be
calculated as in paragraph (a) of this section.
    (f) The Commission will, for good cause shown, consider any
combination of the alternatives described in paragraphs (a) through (e)
of this section for the purpose of establishing financial
responsibility.

[49 FR 36313, Sept. 14, 1984, as amended at 55 FR 1824, Jan. 19, 1990]



Sec. 540.25  Evidence of financial responsibility.

    Where satisfactory proof of financial responsibility has been
established, a Certificate (Casualty) covering specified vessels shall
be issued evidencing the Commission's finding of adequate financial
responsibility to meet any liability which may be incurred for death or
injury to passengers or other persons on voyages. The period covered by
the certificate shall be indeterminate unless a termination date has
been specified therein.



Sec. 540.26  Denial, revocation, suspension, or modification.

    (a) Prior to the denial, revocation, suspension, or modification of
a Certificate (Casualty), the Commission shall advise the applicant of
its intention to deny, revoke, suspend, or modify, and shall state the
reasons therefor. If the applicant, within 20 days after the receipt of
such advice, requests a hearing to show that the evidence of financial
responsibility filed with the Commission does meet the rules of this
subpart, such hearing shall be granted by the Commission, except that a
Certificate (Casualty) shall become null and void upon cancellation or
termination of evidence of insurance, surety bond, guaranty, or escrow
account.
    (b) A Certificate (Casualty) may be denied, revoked, suspended, or
modified for any of the following reasons:
    (1) Making any willfully false statement to the Commission in
connection with an application for a Certificate (Casualty);
    (2) Circumstances whereby the party does not qualify as financially
responsible in accordance with the requirements of the Commission;
    (3) Failure to comply with or respond to lawful inquiries, rules,
regulations, or orders of the Commission pursuant to the rules of this
subpart.
    (c) If the applicant, within 20 days after notice of the proposed
denial, revocation, suspension, or modification under paragraph (b) of
this section, requests a hearing to show that such denial, revocation,
suspension, or modification should not take place, such hearing shall be
granted by the Commission.



Sec. 540.27  Miscellaneous.

    (a) If any evidence filed with the application does not comply with
the requirements of this subpart, or for any reason, fails to provide
adequate or satisfactory protection to the public, the

[[Page 265]]

Commission will notify the applicant stating the deficiencies thereof.
    (b) Any financial evidence submitted to the Commission under the
rules of this subpart shall be written in the full and correct name of
the person to whom the Certificate (Casualty) is to be issued, and in
case of a partnership, all partners shall be named.
    (c) The Commission's bond (Form FMC-132B), guaranty (Form FMC-133B),
and application (Form FMC-131 as set forth in subpart A of this part)
forms are hereby incorporated as a part of the rules of this subpart.
Any such forms filed with the Commission under this subpart must be in
duplicate.
    (d) Any securities or assets accepted by the Commission (from
applicants, insurers, guarantors, escrow agents, or others) under the
rules of this subpart must be physically located in the United States.
    (e) Each applicant, insurer, escrow agent, and guarantor shall
furnish a written designation of a person in the United States as legal
agent for service of process for the purposes of the rules of this
subpart. Such designation must be acknowledged, in writing, by the
designee. In any instance in which the designated agent cannot be served
because of death, disability, or unavailability, the Secretary, Federal
Maritime Commission, will be deemed to be the agent for service of
process. A party serving the Secretary in accordance with the above
provision must also serve the certificant, insurer, escrow agent, or
guarantor, as the case may be, by registered mail, at its last known
address on file with the Commission.
    (f) In the case of any charter arrangements involving a vessel
subject to the regulations of this subpart, the vessel owner (in the
event of a subcharter, the charterer shall file) must within 10 days
file with the Secretary of the Commission evidence of any such
arrangement.
    (g) Financial data filed in connection with the rules of this
subpart shall be confidential except in instances where information
becomes relevant in connection with hearings which may be requested by
applicant pursuant to Sec. 540.26(a) or Sec. 540.26(b).
    (h) Every person who has been issued a Certificate (Casualty) must
submit to the Commission a semiannual statement of any changes that have
taken place with respect to the information contained in the application
or documents submitted in support thereof. Negative statements are
required to indicate no change. Such statements must cover every such 6-
month period commencing with the first 6-month period of the fiscal year
immediately subsequent to the date of the issuance of the Certificate
(Casualty). In addition, the statements will be due within 30 days after
the close of every 6-month period.



               Sec. Form FMC-132B to Subpart B of Part 540

                              Form FMC-132B

(5-67)

                       FEDERAL MARITIME COMMISSION

Surety Co. Bond No. ------------
FMC Certificate No. ------------

             Passenger Vessel Surety Bond (46 CFR Part 540)

    Know all men by these presents, that We ------------ (Name of
applicant), of ---------- (City), ------------ (State and country), as
Principal (hereinafter called Principal), and ------------ (Name of
surety), a company created and existing under the laws of ------------
(State and country) and authorized to do business in the United States,
as Surety (hereinafter called Surety) are held and firmly bound unto the
United States of America in the penal sum of ------------, for which
payment, well and truly to be made, we bind ourselves and our heirs,
executors, administrators, successors, and assigns, jointly and
severally, firmly by these presents.
    Whereas, the Principal intends to become a holder of a Certificate
(Casualty) pursuant to the provisions of subpart B of part 540 of title
46, Code of Federal Regulations, and has elected to file with the
Federal Maritime Commission such a bond to insure financial
responsibility to meet any liability it may incur for death or injury to
passengers or other persons on voyages to or from U.S. ports, and
    Whereas, this bond is written to assure compliance by the Principal
as an authorized holder of a Certificate (Casualty) pursuant to

[[Page 266]]

subpart B of part 540 of title 46, Code of Federal Regulations, and
shall inure to the benefit of any and all passengers or other persons to
whom the Principal may be held legally liable for any of the damages
herein described.
    Now, therefore, the condition of this obligation is such that if the
Principal shall pay or cause to be paid to passengers or other persons
any sum or sums for which the Principal may be held legally liable by
reason of the Principal's failure faithfully to meet any liability the
Principal may incur for death or injury to passengers or other persons
on voyages to or from U.S. ports, while this bond is in effect pursuant
to and in accordance with the provisions of subpart B of part 540 of
title 46, Code of Federal Regulations, then this obligation shall be
void, otherwise, to remain in full force and effect.
    The liability of the Surety with respect to any passenger or other
persons shall in no event exceed the amount of the Principal's legal
liability under any final judgment or settlement agreement, except that,
if the aggregate amount of such judgments and settlements exceeds an
amount computed in accordance with the formula contained in section 2(a)
of Pub. L. 89-777 (46 U.S.C. 44103(b)), then the Surety's total
liability under this surety bond shall be limited to an amount computed
in accordance with such formula.
    The Surety agrees to furnish written notice to the Federal Maritime
Commission forthwith of all suits filed, judgments rendered, and
payments made by said Surety under this bond.
    This bond is effective the -------------- day of ------------------,
19----, 12:01 a.m., standard time, at the address of the Principal as
stated herein and shall continue in force until terminated as
hereinafter provided. The Principal or the Surety may at any time
terminate this bond by written notice sent by certified mail to the
other and to the Federal Maritime Commission at its Office in
Washington, D.C., such termination to become effective thirty (30) days
after actual receipt of said notice by the Commission, except that no
such termination shall become effective while a voyage is in progress.
The Surety shall not be liable hereunder for any liability incurred for
death or injury to passengers or other persons on voyages to or from
U.S. ports after the termination of this bond as herein provided, but
such termination shall not affect the liability of the Surety hereunder
for such liability incurred for death or injury to passengers or other
persons on voyages to or from U.S. ports prior to the date such
termination becomes effective.
    In witness whereof, the said Principal and Surety have executed this
instrument on the ------------ day of ----------------, 19----.

                                PRINCIPAL

 Name___________________________________________________________________
 By_____________________________________________________________________

     (Signature and title)

 Witness________________________________________________________________

                                 SURETY

 Name___________________________________________________________________
 By [SEAL]______________________________________________________________

     (Signature and title)

 Witness________________________________________________________________

    Only corporations or associations of individual insurers may qualify
to act as Surety, and they must establish to the satisfaction of the
Federal Maritime Commission legal authority to assume the obligations of
surety and financial ability to discharge them.

[49 FR 36313, Sept. 14, 1984, as amended at 74 FR 50732, Oct. 1, 2009]



               Sec. Form FMC-133B to Subpart B of Part 540

                              Form FMC-133B

(5-67)

                       FEDERAL MARITIME COMMISSION

 Guaranty No.___________________________________________________________
 FMC Certificate No.____________________________________________________

 Guaranty in Respect of Liability for Death or Injury, Section 2 of the
                   Act (46 U.S.C. 44101, 44103-44106)

    1. Whereas ------------ (Name of Applicant) (Hereinafter referred to
as the ``Applicant'') is the Owner or Charterer of the passenger
Vessel(s) specified in the annexed Schedule (``the Vessels''), which are
or may become engaged in voyages to or from U.S. ports, and the
Applicant desires to establish its financial responsibility in
accordance with section 2 of Public Law 89-777, 89th Congress, approved
November 6, 1966 (``the Act'') then, provided that the Federal Maritime
Commission (``FMC'') shall have accepted, as sufficient for that
purpose, the Applicant's application, supported by this Guaranty, and
provided that FMC shall issue to the Applicant a Certificate (Casualty)
(``Certificate''), the undersigned Guarantor hereby guarantees to
discharge the applicant's legal liability in respect of claims for
damages for death or injury to passengers or other persons on voyages of
the Vessels to or from U.S. ports, in the event that such legal
liability has not been discharged by the Applicant within 21 days after
any such passenger or other person, or, in the event of death, his or
her personal representative, has obtained a final judgment (after
appeal, if any) against the Applicant from a U.S. Federal or State Court

[[Page 267]]

of competent jurisdiction, or has become entitled to payment of a
specified sum by virtue of a compromise settlement agreement made with
the Applicant, with the approval of the Guarantor, whereby, upon payment
of the agreed sum, the Applicant is to be fully, irrevocably and
unconditionally discharged from all further liability to such passenger
or other person, or to such personal representative, with respect to
such claim.
    2. The Guarantor's liability under this Guaranty shall in no event
exceed the amount of the Applicant's legal liability under any such
judgment or settlement agreement, except that, if the aggregate amount
of such judgments and settlements exceeds an amount computed in
accordance with the formula contained in section 2(a) of the Act (46
U.S.C. 44103(b)), then the Guarantor's total liability under this
Guaranty shall be limited to an amount computed in accordance with such
formula.
    3. The Guarantor's liability under this Guaranty shall attach only
in respect of events giving rise to causes of action against the
Applicant in respect of any of the Vessels for damages for death or
injury within the meaning of section 2 of the Act, occurring after the
Certificate has been granted to the Applicant and before the expiration
date of this Guaranty, which shall be the earlier of the following
dates:
    (a) The date whereon the Certificate is withdrawn, or for any reason
becomes invalid or ineffective; or
    (b) The date 30 days after the date of receipt by FMC of notice in
writing (including telex or cable) that the Guarantor has elected to
terminate this Guaranty, except that if, on the date which would
otherwise have been the expiration date of this Guaranty under the
foregoing provisions of this Clause 3, any of the Vessels is on a voyage
in respect of which such Vessel would not have received clearance in
accordance with section 2(e) of the Act (46 U.S.C. 44105) without the
Certificate, then the expiration date of this Guaranty shall, in respect
of such Vessel, be postponed to the date on which the last passenger on
such voyage shall have fully disembarked.
    4. If, during the currency of this Guaranty, the Applicant requests
that a vessel owned or operated by the Applicant, and not specified in
the annexed Schedule, should become subject to this Guaranty, and if the
Guarantor accedes to such request and so notifies FMC in writing
(including telex or cable), then provided that, within 30 days of
receipt of such notice FMC shall have granted a Certificate, such vessel
shall thereupon be deemed to be one of the Vessels included in the said
Schedule and subject to this Guaranty.
    5. The Guarantor hereby designates ------------, with offices at --
----------, as the Guarantor's legal agent for Service of process for
the purposes of the Rules of the Federal Maritime Commission, subpart B
of part 540 of title 46, Code of Federal Regulations, issued under
section 2 of the Pub. L 89-777 (80 Stat. 1357, 1358), entitled
``Security for the Protection of the Public.''

________________________________________________________________________

     (Place and Date of Execution)

________________________________________________________________________

     (Name and Guarantor)

________________________________________________________________________

     (Address of Guarantor)

 By_____________________________________________________________________

     (Name and Title)

               Schedule of Vessels Referred to in Clause 1

       Vessels Added to This Schedule in Accordance With Clause 4

[49 FR 36313, Sept. 14, 1984, as amended at 74 FR 50732, Oct. 1, 2009]



                            Subpart C_General



Sec. 540.91  OMB control numbers assigned pursuant to the Paperwork
Reduction Act.

    This section displays the control numbers assigned to information
collection requirements of the Commission in this part by the Office of
Management and Budget pursuant to the Paperwork Reduction Act of 1980,
Public Law 96-511. The Commission intends that this section comply with
the requirements of section 3507(f) of the Paperwork Reduction Act,
which requires that agencies display a current control number assigned
by the Director of the Office of Management and Budget (OMB) for each
agency information collection requirement:

------------------------------------------------------------------------
                                                            Current OMB
                         Section                            Control No.
------------------------------------------------------------------------
540.4 (Form FMC-131)....................................       3072-0012
540.5...................................................       3072-0011
540.6...................................................       3072-0011
540.8...................................................       3072-0011
540.9...................................................       3072-0011
540.23 (Form FMC-131)...................................       3072-0012
540.24..................................................       3072-0011
540.26..................................................       3072-0011
540.27..................................................       3072-0011
------------------------------------------------------------------------


[[Page 268]]



PART 545_INTERPRETATIONS AND STATEMENTS OF POLICY--Table of Contents



Sec.
545.1 Interpretation of Shipping Act of 1984--Refusal to negotiate with
          shippers' associations.
545.2 Interpretation of Shipping Act of 1984--Unpaid ocean freight
          charges.
545.3 Interpretation of Sec. 515.23(b) of this chapter--Payment
          pursuant to a claim against an ocean transportation
          intermediary.

    Authority: 5 U.S.C. 553; 46 U.S.C. 305, 40307, 40501-40503, 41101-
41106, and 40901-40904; 46 CFR 515.23



Sec. 545.1  Interpretation of Shipping Act of 1984--Refusal to negotiate
with shippers' associations.

    (a) 8(c) of the Shipping Act of 1984 (``the Act'') (46 U.S.C. 40502)
authorizes ocean common carriers and agreements between or among ocean
common carriers to enter into a service contract with a shippers'
association, subject to the requirements of the Act. Section 10(b)(10)
of the Act (46 U.S.C. 41104(10)) prohibits carriers from unreasonably
refusing to deal or negotiate. Section 7(a)(2) of the Act (46 U.S.C.
40307(a)(3)) exempts from the antitrust laws any activity within the
scope of that Act, undertaken with a reasonable basis to conclude that
it is pursuant to a filed and effective agreement.
    (b) The Federal Maritime Commission interprets these provisions to
establish that a common carrier or conference may not require a
shippers' association to obtain or apply for a Business Review Letter
from the Department of Justice prior to or as part of a service contract
negotiation process.

[53 FR 43698, Oct. 28, 1988. Redesignated and amended at 64 FR 7813,
Feb. 17, 1999; 64 FR 9922, Mar. 1, 1999; 74 FR 50732, Oct. 1, 2009]



Sec. 545.2  Interpretation of Shipping Act of 1984--Unpaid ocean
freight charges.

    Section 10(a)(1) of the Shipping Act of 1984 (46 U.S.C. 41102(a))
states that it is unlawful for any person to obtain or attempt to obtain
transportation for property at less than the properly applicable rates,
by any ``unjust or unfair device or means.'' An essential element of the
offense is use of an ``unjust or unfair device or means.'' In the
absence of evidence of bad faith or deceit, the Federal Maritime
Commission will not infer an ``unjust or unfair device or means'' from
the failure of a shipper to pay ocean freight. An ``unjust or unfair
device or means'' could be inferred where a shipper, in bad faith,
induced the carrier to relinquish its possessory lien on the cargo and
to transport the cargo without prepayment by the shipper of the
applicable freight charges.

[58 FR 7194, Feb. 5, 1993. Redesignated at 64 FR 7813, Feb. 17, 1999, as
amended at 74 FR 50732, Oct. 1, 2009]



Sec. 545.3  Interpretation of Sec. 515.23(b) of this chapter--Payment
pursuant to a claim against an ocean transportation intermediary.

    A claimant seeking to settle a claim in accordance with Sec.
515.23(b)(1) of this chapter should promptly provide to the financial
responsibility provider all documents and information relating to and
supporting its claim for the purpose of evaluating the validity and
subject matter of the claim.

[65 FR 33480, May 24, 2000]

[[Page 269]]



  SUBCHAPTER C_REGULATIONS AND ACTIONS TO ADDRESS RESTRICTIVE FOREIGN
                           MARITIME PRACTICES





PART 550_REGULATIONS TO ADJUST OR MEET CONDITIONS UNFAVORABLE TO
SHIPPING IN THE FOREIGN TRADE OF THE UNITED STATES--Table of Contents



                      Subpart A_General Provisions

Sec.
550.101 Purpose.
550.102 Scope.
550.103 Definitions.
550.104 Confidentiality.
550.105 Consultation.

                   Subpart B_Production of Information

550.201 Information orders.
550.202 Type of information.
550.203 Failure to provide information.

              Subpart C_Conditions Unfavorable to Shipping

550.301 Findings.

                Subpart D_Petitions For Section 19 Relief

550.401 Who may file.
550.402 Filing of petitions.
550.403 Contents of petitions.
550.404 Amendment or dismissal of petitions.

                          Subpart E_Proceedings

550.501 Participation of interested persons.
550.502 Discovery.
550.503 Subpoenas.
550.504 Witness fees.
550.505 Failure to supply information.
550.506 Enforcement of orders.
550.507 Postponement, discontinuance, or suspension of action.
550.508 Publication, content, and effective date of regulation.

                      Subpart F_Corrective Actions

550.601 Actions to correct unfavorable conditions.
550.602 Penalty.

    Authority: 5 U.S.C. 553; 46 U.S.C. 301-307; sec. 19 (a)(2), (e),
(f), (g), (h), (i), (j), (k) and (l) of the Merchant Marine Act, 1920,
46 U.S.C. 42101 and 42104-42109; and sec. 10002 of the Foreign Shipping
Practices Act of 1988, 46 U.S.C. 42301-42307.

    Source: 58 FR 64910, Dec. 10, 1993, unless otherwise noted.
Redesignated at 64 FR 8008, Feb. 18, 1999.
    Note to part 550: In accordance with 44 U.S.C. 3518(c)(1)(B), and
except for investigations undertaken with reference to a category of
individuals or entities (e.g., an entire industry), any information
requests or requirements in this part 550 are not subject to the
requirements of section 3507 of the Paperwork Reduction Act because such
collections of information are pursuant to a civil, administrative
action or investigation by an agency of the United States against
specific individuals or entities.



                      Subpart A_General Provisions



Sec. 550.101  Purpose.

    It is the purpose of the regulations of this part to declare certain
conditions resulting from governmental actions by foreign nations or
from the competitive methods or practices of owners, operators, agents,
or masters of vessels of a foreign country unfavorable to shipping in
the foreign trade of the United States and to establish procedures by
which persons who are or can reasonably expect to be adversely affected
by such conditions may petition the Federal Maritime Commission for the
issuance of regulations under the authority of section 19 of the
Merchant Marine Act of 1920 (46 U.S.C. 42101-42109). It is the further
purpose of the regulations of this part to afford notice of the general
circumstances under which the authority granted to the Commission under
section 19 may be invoked and the nature of the regulatory actions
contemplated.

[58 FR 64910, Dec. 10, 1993. Redesignated at 64 FR 8008, Feb. 18, 1999,
as amended at 74 FR 50732, Oct. 1, 2009]



Sec. 550.102  Scope.

    Regulatory actions may be taken when the Commission finds, on its
own motion or upon petition, that a foreign government has promulgated
and enforced or intends to enforce laws, decrees, regulations or the
like, or has engaged in or intends to engage in

[[Page 270]]

practices which presently have or prospectively could create conditions
unfavorable to shipping in the foreign trade of the United States, or
when owners, operators, agents or masters of foreign vessels engage in
or intend to engage in competitive methods, pricing practices or other
practices which have created or could create such conditions.

[64 FR 8009, Feb. 18, 1999]



Sec. 550.103  Definitions.

    When used in this part:
    (a) Act means the Merchant Marine Act, 1920, as amended by Pub. L.
101-595 and as amended by Pub. L. 105-258.
    (b) Person means individuals, corporations, partnerships and
associations existing under or authorized by the laws of the United
States or of a foreign country, and includes any common carrier, tramp
operator, bulk operator, shipper, shippers' association, importer,
exporter, consignee, ocean transportation intermediary, marine terminal
operator, or any component of the Government of the United States.
    (c) Voyage means an inbound or outbound movement between a foreign
country and the United States by a vessel engaged in the United States
oceanborne trade. Each inbound or outbound movement constitutes a
separate voyage.

[58 FR 64910, Dec. 10, 1993. Redesignated and amended at 64 FR 8008,
8009, Feb. 18, 1999]



Sec. 550.104  Confidentiality.

    Notwithstanding any other law, the Commission may refuse to disclose
to the public a response or other information provided under the terms
of this part.



Sec. 550.105  Consultation.

    (a) Consultation with other agencies. The Commission may consult
with, seek the cooperation of, or make recommendations to other
appropriate agencies prior to taking any action under this part.
    (b) Request for resolution through diplomatic channels. Upon the
filing of a petition, or on its own motion when there are indications
that conditions unfavorable to shipping in the foreign trade of the
United States may exist, the Commission may notify the Secretary of
State that such conditions apparently exist, and may request that the
Secretary seek resolution of the matter through diplomatic channels. If
request is made, the Commission will give every assistance in such
efforts, and the Commission may request the Secretary to report the
results of such efforts at a specified time.



                   Subpart B_Production of Information



Sec. 550.201  Information orders.

    In furtherance of the purposes of this part--
    (a) The Commission may, by order, require any person (including any
common carrier, tramp operator, bulk operator, shipper, shippers'
association, ocean transportation intermediary, or marine terminal
operator, or any officer, receiver, trustee, lessee, agent, or employee
thereof), to file with the Commission a report, answers to questions,
documentary material, or other information which the Commission
considers necessary or appropriate;
    (b) The Commission may require a report or answers to questions to
be made under oath;
    (c) The Commission may prescribe the form and the time for response
to a report or answers to questions.

[58 FR 64910, Dec. 10, 1993. Redesignated and amended at 64 FR 8008,
8009, Feb. 18, 1999]



Sec. 550.202  Type of information.

    In order to aid in the determination of whether conditions
unfavorable to shipping in the foreign trade of the United States exist,
or in order to aid in the formulation of appropriate regulations
subsequent to a finding that conditions unfavorable to shipping in the
foreign trade of the United States exist, the Commission may, when it
deems necessary or appropriate, and without further proceedings, order
any:
    (a) Owner, operator, or charterer in the affected trade to furnish
any or all of the following information:
    (1) Statistics for a representative period showing passengers or
cargo carried to and from the United States in

[[Page 271]]

the affected trade on vessels owned, operated or chartered by it, by
type, source, value, and direction;
    (2) Information for a representative period on the activities of
vessels owned, operated, or chartered, which shall include sailings to
and from United States ports, costs incurred, taxes or other charges
paid to authorities, and subsidies or other payments received from
foreign authorities;
    (3) Information for a specified future period on the prospective
activities of vessels which it owns, operates or charters or plans to
own, operate or charter, to and from United States ports, which shall
include projected sailings, anticipated costs, taxes or other charges to
be paid to authorities, and expected subsidies or other payments to be
received from foreign authorities; and
    (4) Such other information that the Commission considers relevant to
discovering or determining the existence of general or special
conditions unfavorable to shipping in the foreign trade of the United
States.
    (b) Shipper, shippers' association, or ocean transportation
intermediary in the affected trade to furnish any or all of the
following information:
    (1) Information for a representative period showing shipments made,
type of cargo, commodity, carrier and vessel on which shipment was made,
including furnishing copies of bills of lading and other shipping
documents;
    (2) Information relating to the application for, grant of, or
securing of waivers or other exemption from requirements imposed by
foreign governments that cargo move on national-flag, conference, or
non-conference vessels;
    (3) Amount of brokerage, ocean transportation intermediary
compensation or other charges collected or paid in connection with
shipments in the affected trade; and
    (4) such other information that the Commission considers relevant to
discovering or determining the existence of general or special
conditions unfavorable to shipping in the foreign trade of the United
States.
    (c) Any marine terminal operator to furnish any or all of the
following information:
    (1) Marine terminal facilities agreements, whether or not on file
with the Commission, into which it has entered with any ocean carrier in
the affected trade;
    (2) Information for a representative period showing the difference
between the rates agreed to for use of its facilities by any ocean
carrier serving the affected trade pursuant to an agreement authorizing
preferential treatment or lease terms and those rates which would
otherwise have applied to such services or leases.

[58 FR 64910, Dec. 10, 1993. Redesignated and amended at 64 FR 8008,
8009, Feb. 18, 1999]



Sec. 550.203  Failure to provide information.

    (a) A person who fails to file a report, answer, documentary
material, or other information required under this subpart shall be
liable to the United States Government for a civil penalty of not more
than $5,000 for each day that the information is not provided.
    (b) The Commission may, when there is a failure to produce any
information ordered produced under Sec. 550.201, make appropriate
findings of fact and inferences, including the inference that conditions
unfavorable to shipping in the foreign trade of the United States do
exist.

[58 FR 64910, Dec. 10, 1993. Redesignated at 64 FR 8008, Feb. 18, 1999,
and amended at 67 FR 39861, June 11, 2002]



              Subpart C_Conditions Unfavorable to Shipping



Sec. 550.301  Findings.

    For the purposes of this part, conditions created by foreign
governmental action or competitive methods, pricing practices or other
practices of owners, operators, agents or masters of foreign vessels are
found unfavorable to shipping in the foreign trade of the United States,
if such conditions:
    (a) Impose upon vessels in the foreign trade of the United States
fees, charges, requirements, or restrictions different from those
imposed on other vessels competing in the trade, or preclude vessels in
the foreign trade of the United States from competing in the

[[Page 272]]

trade on the same basis as any other vessel;
    (b) Reserve substantial cargoes to the national flag or other
vessels and fail to provide, on reasonable terms, for effective and
equal access to such cargo by vessels in the foreign trade of the United
States;
    (c) Are discriminatory or unfair as between carriers, shippers,
exporters, importers, or ports or between exporters from the United
States and their foreign competitors and which cannot be justified under
generally accepted international agreements or practices and which
operate to the detriment of the foreign commerce or the public interest
of the United States;
    (d) Restrict or burden a carrier's intermodal movements or shore-
based maritime activities, including terminal operations and cargo
solicitation; agency services; ocean transportation intermediary
services and operations; or other activities and services integral to
transportation systems; or
    (e) Are otherwise unfavorable to shipping in the foreign trade of
the United States.

[58 FR 64910, Dec. 10, 1993. Redesignated and amended at 64 FR 8008,
8009, Feb. 18, 1999]



                Subpart D_Petitions for Section 19 Relief



Sec. 550.401  Who may file.

    Any person who has been harmed by, or who can reasonably expect harm
from, existing or impending conditions unfavorable to shipping in the
foreign trade of the United States, may file a petition for relief under
the provisions of this part.



Sec. 550.402  Filing of petitions.

    All requests for relief from conditions unfavorable to shipping in
the foreign trade shall be by written petition. An original and fifteen
copies of a petition for relief under the provisions of this part shall
be filed with the Secretary, Federal Maritime Commission, Washington, DC
20573. The petition shall be accompanied by remittance of a $241 filing
fee.

[70 FR 10331, Mar. 3, 2005]



Sec. 550.403  Contents of petitions.

    Petitions for relief from conditions unfavorable to shipping in the
foreign trade of the United States shall set forth the following:
    (a) A concise description and citation of the foreign law, rule,
regulation, practice or competitive method complained of;
    (b) A certified copy of any law, rule, regulation or other document
involved and, if not in English, a certified English translation
thereof;
    (c) Any other evidence of the existence of such practice or
competitive method;
    (d) A clear description, in detail, of the harm already caused or
which may reasonably be expected to be caused petitioner, including:
    (1) Statistics for the representative period showing the type and
amount of revenue loss or operating cost increase suffered or projected,
such as a present or prospective cargo loss if harm is alleged on that
basis. Such statistics shall include figures which permit comparison or
computation of the proportional effect of the harm alleged. For example,
when the harm alleged is loss of cargo, supporting evidence shall
include the total cargo carried or projected in the trade for the
period;
    (2) Statistics or other evidence for the representative period
showing increased costs, inferior services or other harm to cargo or
other non-vessel interest if injury is claimed on that basis; and
    (3) A statement as to why the period is representative.
    (e) A recommended regulation, the promulgation of which will, in the
view of the petitioner, adjust or meet the alleged conditions
unfavorable to shipping in the foreign trade of the United States.



Sec. 550.404  Amendment or dismissal of petitions.

    Upon the failure of a petitioner to comply with the provisions of
this part, the petitioner will be notified by the Secretary and afforded
reasonable opportunity to amend its petition. Failure to timely amend
the petition may result in its dismissal. For good cause shown
additional time for amendment may be granted.

[[Page 273]]



                          Subpart E_Proceedings



Sec. 550.501  Participation of interested persons.

    In the event that participation of interested persons is deemed
necessary by the Commission, notice will be published in the Federal
Register and interested persons will then be allowed to participate in
this proceeding by the submission of written data, views or arguments,
with or without opportunity to present same orally.



Sec. 550.502  Discovery.

    The Commission may authorize a party to a proceeding to use
depositions, written interrogatories, and discovery procedures that, to
the extent practicable, are in conformity with the rules applicable in
civil proceedings in the district courts of the United States.



Sec. 550.503  Subpoenas.

    In proceedings under this part, the Commission may by subpoena
compel the attendance of witnesses and the production of books, papers,
documents, and other evidence.



Sec. 550.504  Witness fees.

    In proceedings under this subpart, witnesses are, unless otherwise
prohibited by law, entitled to the same fees and mileage as in the
courts of the United States, subject to funds being provided by
appropriations Acts.



Sec. 550.505  Failure to supply information.

    For failure to supply information ordered to be produced or
compelled by subpoena in proceedings under this part, the Commission
may--
    (a) After notice and an opportunity for hearing, suspend tariffs of
a common carrier or that common carrier's right to use the tariffs of
conferences of which it is a member; or
    (b) Assess a civil penalty of not more than $5,000 for each day that
the information is not provided.



Sec. 550.506  Enforcement of orders.

    In proceedings under this part, when a person violates an order of
the Commission or fails to comply with a subpoena, the Commission may
seek enforcement by a United States district court having jurisdiction
over the parties.



Sec. 550.507  Postponement, discontinuance, or suspension of action.

    The Commission may, on its own motion or upon petition, postpone,
discontinue, or suspend any and all actions taken by it under the
provisions of this part. The Commission shall postpone, discontinue or
suspend any or all such actions if the President informs the Commission
that postponement, discontinuance or suspension is required for reasons
of foreign policy or national security.



Sec. 550.508  Publication, content, and effective date of regulation.

    The Commission shall incorporate in any regulations adopted under
the rules of this part a concise statement of their basis and purpose.
Regulations shall be published in the Federal Register. Except where
conditions warrant and for good cause, regulations promulgated under the
rules of this part shall not become effective until at least 30 days
after the date of publication.



                      Subpart F_Corrective Actions



Sec. 550.601  Actions to correct unfavorable conditions.

    Upon submission of a petition filed under the rules of this part, or
upon its own motion, the Commission may find that conditions unfavorable
to shipping in the foreign trade of the United States do exist, and may,
without further proceedings, issue regulations which may:
    (a) Impose equalizing fees or charges;
    (b) Limit sailings to and from United States ports or the amount or
type of cargo carried;
    (c) Suspend, in whole or in part, tariffs and service contracts for
carriage to or from United States ports, including a common carrier's
right to use tariffs of conferences and service contracts of agreements
in United States trades of which it is a member for any period the
Commission specifies;
    (d) Suspend, in whole or in part, an ocean common carrier's right to
operate under an agreement, including any

[[Page 274]]

agreement authorizing preferential treatment at terminals or
preferential terminal leases, whether filed with the Commission or not
filed with the Commission pursuant to the exemptions granted in 46 CFR
Part 535; or any agreement filed with the Commission authorizing space
chartering, or pooling of cargo or revenues with other ocean common
carriers;
    (e) Impose a fee, not to exceed $1,000,000 per voyage;
    (f) Request the collector of customs at the port or place of
destination in the United States to refuse the clearance required by
section 4197 of the Revised Statutes (46 U.S.C. 60105), to a vessel of a
foreign carrier which is or whose government is identified as
contributing to the unfavorable conditions described in subpart C;
    (g) Request the collector of customs at the port or place of
destination in the United States to collect any fees imposed by the
Commission under paragraph (e) of this section;
    (h) Request the Secretary of the department in which the Coast Guard
is operating to deny entry, for purposes of oceanborne trade, of any
vessel of a foreign carrier which is or whose government is identified
as contributing to the unfavorable conditions described in subpart C, to
any port or place in the United States or the navigable waters of the
United States, or to detain any such vessel at the port or place in the
United States from which it is about to depart for any other port or
place in the United States; or
    (i) Take any other action the Commission finds necessary and
appropriate to adjust or meet any condition unfavorable to shipping in
the foreign trade of the United States.

[58 FR 64910, Dec. 10, 1993. Redesignated and amended at 64 FR 8008,
8009, Feb. 18, 1999; 67 FR 39861, June 11, 2002; 74 FR 50733, Oct. 1,
2009]



Sec. 550.602  Penalty.

    A common carrier that accepts or handles cargo for carriage under a
tariff or service contract that has been suspended under Sec. 550.505
or Sec. 550.601 of this part, or after its right to use another tariff
or service contract has been suspended under those sections, is subject
to a civil penalty of not more than $50,000 for each day that it is
found to be operating under a suspended tariff or service contract.

[64 FR 8009, Feb. 18, 1999]



PART 551_ACTIONS TO ADJUST OR MEET CONDITIONS UNFAVORABLE TO SHIPPING
IN THE U.S. FOREIGN TRADE--Table of Contents



    Authority: 46 U.S.C. 301-307; 46 U.S.C. 42101-42109; 46 CFR Part
550.
    Note to part 551: In accordance with 44 U.S.C. 3518(c)(1)(B), and
except for investigations undertaken with reference to a category of
individuals or entities (e.g., an entire industry), any information
requests or requirements in this part 551 are not subject to the
requirements of section 3507 of the Paperwork Reduction Act because such
collections of information are pursuant to a civil, administrative
action or investigation by an agency of the United States against
specific individuals or entities.



Sec. 551.1  Actions to adjust or meet conditions unfavorable to shipping
in specific trades.

    Whenever the Commission determines that conditions unfavorable to
shipping exist in the United States foreign trade with any nation and
issues rules to adjust or meet such conditions, pursuant to section
19(1)(b) of the Merchant Marine Act, 1920 (46 U.S.C. 42101) and 46 CFR
part 551, such rules shall be published in the Federal Register and
added to this part.

[67 FR 39861, June 11, 2002, as amended at 74 FR 50733, Oct. 1, 2009]



PART 555_ACTIONS TO ADDRESS ADVERSE CONDITIONS AFFECTING U.S.-FLAG
CARRIERS THAT DO NOT EXIST FOR FOREIGN CARRIERS IN THE UNITED

STATES--Table of Contents



Sec.
555.1 Purpose.
555.2 Definitions.
555.3 Scope.
555.4 Petitions.
555.5 Investigations.
555.6 Information demands and subpoenas.
555.7 Notification to Secretary of State.
555.8 Action against foreign carriers.

    Authority: 5 U.S.C. 553; sec. 10002 of the Foreign Shipping
Practices Act of 1988 (46 U.S.C. 42301-42307).

[[Page 275]]


    Source: 54 FR 11533, Mar. 21, 1989, unless otherwise noted.
Redesignated at 64 FR 8010, Feb. 18, 1999.
    Note to part 555: In accordance with 44 U.S.C. 3518(c)(1)(B), and
except for investigations undertaken with reference to a category of
individuals or entities (e.g., an entire industry), any information
requests or requirements in this part 555 are not subject to the
requirements of section 3507 of the Paperwork Reduction Act because such
collections of information are pursuant to a civil, administrative
action or investigation by an agency of the United States against
specific individuals or entities.



Sec. 555.1  Purpose.

    It is the purpose of the regulations of this part to establish
procedures to implement the Foreign Shipping Practices Act of 1988, as
amended by the Ocean Shipping Reform Act of 1998, which authorizes the
Commission to take action against foreign carriers, whose practices or
whose government's practices result in adverse conditions affecting the
operations of United States carriers, which adverse conditions do not
exist for those foreign carriers in the United States. The regulations
of this part provide procedures for investigating such practices and for
obtaining information relevant to the investigations, and also afford
notice of the types of actions included among those that the Commission
is authorized to take.

[64 FR 8010, Feb. 18, 1999]



Sec. 555.2  Definitions.

    For the purposes of this part:
    (a) Common carrier, marine terminal operator, ocean transportation
intermediary, ocean common carrier, person, shipper, shippers'
association, and United States have the meanings given each such term,
respectively, in section 3 of the Shipping Act of 1984 (46 U.S.C.
40102);
    (b) Foreign carrier means an ocean common carrier a majority of
whose vessels are documented under the laws of a country other than the
United States;
    (c) Maritime services means port-to-port carriage of cargo by the
vessels operated by ocean common carriers;
    (d) Maritime-related services means intermodal operations, terminal
operations, cargo solicitation, agency services, ocean transportation
intermediary services and operations, and all other activities and
services integral to total transportation systems of ocean common
carriers and their foreign domiciled affiliates on their own and others'
behalf;
    (e) United States carrier means an ocean common carrier which
operates vessels documented under the laws of the United States;
    (f) United States oceanborne trade means the carriage of cargo
between the United States and a foreign country, whether direct or
indirect, by an ocean common carrier;
    (g) Voyage means an inbound or outbound movement between a foreign
country and the United States by a vessel engaged in the United States
oceanborne trade. Each inbound or outbound movement constitutes a
separate voyage.

[54 FR 11533, Mar. 21, 1989. Redesignated and amended at 64 FR 8010,
Feb. 18, 1999; 74 FR 50733, Oct. 1, 2009]



Sec. 555.3  Scope.

    The Commission shall take such action under this part as it
considers necessary and appropriate when it determines that any laws,
rules, regulations, policies, or practices of foreign governments, or
any practices of foreign carriers or other persons providing maritime or
maritime-related services in a foreign country, result in conditions
that adversely affect the operations of United States carriers in United
States oceanborne trade, and do not exist for foreign carriers of that
country in the United States under the laws of the United States or as a
result of acts of United States carriers or other persons providing
maritime or maritime-related services in the United States.



Sec. 555.4  Petitions.

    (a) A petition for investigation to determine the existence of
adverse conditions as described in Sec. 555.3 may be submitted by any
person, including any common carrier, shipper, shippers' association,
ocean freight forwarder, or marine terminal operator, or any branch,
department, agency, or other component of the Government of the United
States. Petitions for relief under this part shall be in writing, and

[[Page 276]]

filed in the form of an original and fifteen copies with the Secretary,
Federal Maritime Commission, Washington, DC 20573. The petition shall be
accompanied by remittance of a $241 filing fee.
    (b) Petitions shall set forth the following:
    (1) The name and address of the petitioner;
    (2) The name and address of each party (foreign government, agency
or instrumentality thereof, carrier, or other person) against whom the
petition is made, a statement as to whether the party is a foreign
government, agency or instrumentality thereof, and a brief statement
describing the party's function, business or operation;
    (3) The name and address of each United States carrier alleged to be
adversely affected, and a description, and if possible, documentation,
of why each is considered by petitioner to be a United States carrier;
    (4) A precise description and, if applicable, citation of any law,
rule, regulation, policy or practice of a foreign government or practice
of a foreign carrier or other person causing the conditions complained
of;
    (5) A certified copy of any law, rule, regulation or other document
involved and, if not in English, a certified English translation
thereof;
    (6) Any other evidence of the existence of such laws and practices,
evidence of the alleged adverse effects on the operations of United
States carriers in United States oceanborne trade, and evidence that
foreign carriers of the country involved are not subjected to similar
adverse conditions in the United States.
    (7) With respect to the harm already caused, or which may reasonably
be expected to be caused, the following information, if available to
petitioner:
    (i) Statistical data documenting present or prospective cargo loss
by United States carriers due to foreign government or commercial
practices for a representative period, if harm is alleged on that basis,
and the sources of the statistical data;
    (ii) Statistical data or other information documenting the impact of
the foreign government or commercial practices causing the conditions
complained of, and the sources of those data; and
    (iii) A statement as to why the period used is representative.
    (8) A separate memorandum of law or a discussion of the relevant
legal issues; and
    (9) A recommended action, including any of those enumerated in Sec.
555.8, the result of which will, in the view of the petitioner, address
the conditions complained of.
    (c) A petition which the Commission determines fails to comply
substantially with the requirements of paragraph (b) of this section
shall be rejected promptly and the person filing the petition shall be
notified of the reasons for such rejection. Rejection is without
prejudice to the filing of an amended petition.

[54 FR 11533, Mar. 21, 1989, as amended at 63 FR 50537, Sept. 22, 1998;
64 FR 8010, Feb. 18, 1999; 64 FR 23551, May 3, 1999; 67 FR 39861, June
11, 2002; 70 FR 10331, Mar. 3, 2005]



Sec. 555.5  Investigations.

    (a) An investigation to determine the existence of adverse
conditions as described in Sec. 555.3 may be initiated by the
Commission on its own motion or on the petition of any person pursuant
to Sec. 555.4. An investigation shall be considered to have been
initiated for the purpose of the time limits imposed by the Foreign
Shipping Practices Act of 1988 upon the publication in the Federal
Register of the Commission's notice of investigation, which shall
announce the initiation of the proceeding upon either the Commission's
own motion or the filing of a petition.
    (b) The provisions of part 502 of this chapter (Rules of Practice
and Procedure) shall not apply to this part except for those provisions
governing ex parte communications (Sec. 502.11 of this chapter) and
except as the Commission may otherwise determine by order. The precise
procedures and timetables for participation in investigations initiated
under this part will be established on an ad hoc basis as appropriate
and set forth in the notice. Proceedings may include oral evidentiary
hearings, but only when the Commission determines that there are likely
to be genuine issues of material fact that cannot

[[Page 277]]

be resolved on the basis of written submissions, or that the nature of
the matter in issue is such that an oral hearing and cross-examination
are necessary for the development of an adequate record. In any event,
investigations initiated under this part shall proceed expeditiously,
consistent with due process, to conform with the time limits specified
in the Foreign Shipping Practices Act and to identify promptly the
conditions described in Sec. 555.3 of this part.
    (c) Upon initiation of an investigation, interested persons will be
given the opportunity to participate in the proceeding pursuant to the
procedures set forth in the notice. Submissions filed in response to a
notice of investigation may include written data and statistics, views,
and legal arguments. Factual information submitted shall be certified
under oath. An original and 15 copies of such submissions will be filed
with the Secretary, Federal Maritime Commission, Washington, DC 20573.
Persons who receive information requests from the Commission pursuant to
Sec. 555.6 of this part are not precluded from filing additional
voluntary submissions in accordance with this paragraph.
    (d) An investigation shall be completed and a decision rendered
within 120 days after it has commenced as defined in paragraph (a) of
this section, unless the Commission determines that an additional 90-day
period is necessary in order to obtain sufficient information on which
to render a decision. When the Commission determines to extend the
investigation period for an additional 90 days, it shall issue a notice
clearly stating the reasons therefor.

[54 FR 11533, Mar. 21, 1989. Redesignated at 64 FR 8010, Feb. 18, 1999,
and amended at 67 FR 39862, June 11, 2002; 74 FR 50733, Oct. 1, 2009]



Sec. 555.6  Information demands and subpoenas.

    (a) In furtherance of this part, the Commission may, by order,
require any person (including any common carrier, shipper, shipper's
association, ocean freight forwarder, or marine terminal operator, or
any officer, receiver, trustee, lessee, agent or employee thereof) to
file with the Commission any periodic or special report, answers to
questions, documentary material, or other information which the
Commission considers necessary or appropriate, and in the form and
within the time prescribed by the Commission. Responses to such orders
may be required by the Commission to be made under oath.
    (b) The Commission may issue subpoenas to compel the attendance and
testimony of witnesses and the production of records or other evidence
as it deems necessary and appropriate in conducting an investigation
under Sec. 555.5 of this part.
    (c) The Commission may, in its discretion, determine that any
information submitted to it in response to a request (including a
subpoena) under this section, or accompanying a petition under Sec.
555.4, or voluntarily submitted by any person pursuant to Sec.
555.5(c), shall not be disclosed to the public. To this end, persons
submitting information for consideration in a proceeding or
investigation under this part may indicate in writing any factors they
wish the Commission to consider relevant to a decision on
confidentiality under this section; however, such information will be
advisory only, and the actual determination will be made by the
Commission. In the event that a request for confidentiality is not
accommodated, the person making the request will be so advised before
any disclosure occurs.

[54 FR 11533, Mar. 21, 1989. Redesignated at 64 FR 8010, Feb. 18, 1999,
and amended at 67 FR 39862, June 11, 2002]



Sec. 555.7  Notification to Secretary of State.

    Upon publication of a petition in the Federal Register, or on its
own motion should it determine to initiate an investigation pursuant to
Sec. 555.5, the Commission will notify the Secretary of State of same,
and may request action to seek resolution of the matter through
diplomatic channels. The Commission may request the Secretary to report
the results of such efforts at a specified time.

[54 FR 11533, Mar. 21, 1989. Redesignated at 64 FR 8010, Feb. 18, 1999,
and amended at 67 FR 39862, June 11, 2002]

[[Page 278]]



Sec. 555.8  Action against foreign carriers.

    (a) Whenever, after notice and opportunity for comment or hearing,
the Commission determines that the conditions specified in Sec. 555.3
of this part exist, the Commission shall take such action as it
considers necessary and appropriate against any foreign carrier which it
identifies as a contributing cause to, or whose government is a
contributing cause to, such conditions, in order to offset such
conditions. Such action may include, but is not limited to:
    (1) Limitations on sailings to and from United States ports or on
the amount or type of cargo carried;
    (2) Suspension, in whole or in part, of any or all tariffs or
service contracts, including the right of an ocean common carrier to use
any or all tariffs or service contracts of conferences in United States
trades of which it is a member for such period as the Commission
specifies;
    (3) Suspension, in whole or in part, of the right of an ocean common
carrier to operate under any agreement filed with the Commission,
including agreements authorizing preferential treatment at terminals,
preferential terminal leases, space chartering, or pooling of cargo or
revenues with other ocean common carriers;
    (4) Imposition of a charge, not to exceed $1,000,000 per voyage;
    (5) A request to the collector of customs at any port or place of
destination in the United States to refuse the clearance required by
section 4197 of the Revised Statutes(46 U.S.C. 60105), to any vessel of
a foreign carrier that is identified by the Commission under this
section;
    (6) A request to the Secretary of the department in which the Coast
Guard is operating to deny entry, for purposes of oceanborne trade, of
any vessel of a foreign carrier that is identified by the Commission
under this section to any port or place in the United States or the
navigable waters of the United States, or to detain any such vessel at
the port or place in the United States from which it is about to depart
for any other port or place in the United States; and
    (7) Any other action the Commission finds necessary and appropriate
to address adverse foreign shipping practices as described in Sec.
555.3 of this part.
    (b) The Commission may consult with, seek the cooperation of, or
make recommendations to other appropriate U.S. Government agencies prior
to taking any action under this action.
    (c) Before any action against foreign carriers under this section
becomes effective or a request under this section is made, the
Commission's determination as to adverse conditions and its proposed
actions and/or requests shall be submitted immediately to the President.
Such actions will not become effective nor requests made if, within 10
days of receipt of the Commission's determination and proposal, the
President disapproves it in writing, setting forth the reasons for the
disapproval, if the President finds that disapproval is required for
reasons of the national defense or the foreign policy of the United
States.

[54 FR 11533, Mar. 21, 1989. Redesignated and amended at 64 FR 8010,
Feb. 18, 1999; 67 FR 39862, June 11, 2002; 74 FR 50733, Oct. 1, 2009]



PART 560_ACTIONS TO ADDRESS CONDITIONS UNDULY IMPAIRING ACCESS OF
U.S.-FLAG VESSELS TO OCEAN TRADE BETWEEN FOREIGN PORTS--Table of

Contents



Sec.
560.1 Purpose; general provisions.
560.2 Factors indicating conditions unduly impairing access.
560.3 Petitions for relief.
560.4 Proceeding.
560.5 Receipt of relevant information.
560.6 Notification to Secretary of State.
560.7 Decision; sanctions; effective date.
560.8 Submission of decision to the President.
560.9 Postponement, discontinuance, or suspension of action.

    Authority: 5 U.S.C. 553; secs. 13(b)(6), 15 and 17 of the Shipping
Act of 1984, 46 U.S.C. 305, 40104, and 41108(d); sec. 10002 of the
Foreign Shipping Practices Act of 1988 (46 U.S.C. 42301-42307).

    Source: 49 FR 45406, Nov. 15, 1984, unless otherwise noted.
Redesignated at 64 FR 8009, Feb. 18, 1999.
    Note: In accordance with 44 U.S.C. 3518(c)(1)(B), and except for
investigations undertaken with reference to a category of individuals or
entities (e.g., an entire industry), any information request or
requirement

[[Page 279]]

in this part is not subject to the requirements of section 3507(f) of
the Paperwork Reduction Act because such collection of information is
pursuant to a civil, administrative action or investigation by an agency
of the United States against specific individuals or entities.



Sec. 560.1  Purpose; general provisions.

    (a)(1) It is the purpose of this part to enumerate certain
conditions resulting from the action of a common carrier, acting alone
or in concert with any person, or a foreign government, which unduly
impair the access of a vessel documented under the laws of the United
States whether liner, bulk, tramp or other vessel, (hereinafter ``U.S.
flag vessel'') to ocean trade between foreign ports, which includes
intermodal movements, and to establish procedures by which the owner or
operator of a U.S. flag vessel (hereinafter ``U.S. flag carrier'') may
petition the Federal Maritime Commission for relief under the authority
of section 13(b)(6)of the Shipping Act of 1984 (``the Act'') (46 U.S.C.
41108(d)).
    (2) It is the further purpose of this part to indicate the general
circumstances under which the authority granted to the Commission under
section 13(b)(6) (46 U.S.C. 41108(d)) may be invoked, and the nature of
the subsequent actions contemplated by the Commission.
    (3) This part also furthers the goals of the Act with respect to
encouraging the development of an economically sound and efficient U.S.
flag liner fleet as stated in section 2 of the Act (46 U.S.C. 40101).
    (b)(1) This part implements the statutory notice and hearing
requirement and ensures that due process is afforded to all affected
parties. At the same time, it allows for flexibility in structuring
proceedings so that the Commission may act expeditiously whenever harm
to a U.S. flag carrier resulting from impaired access to cross trades
has been demonstrated or is imminent.
    (2) The provisions of part 502 of this chapter (Rules of Practice
and Procedure) shall not apply to this part except for those provisions
governing ex parte communications (Sec. 502.11 of this chapter) and
service of documents and copies of documents (Sec. Sec. 502.114(b) and
502.118 of this chapter), and except as the Commission may otherwise
determine by order.
    (c) The condition of unduly impaired access will be found only where
a U.S. flag carrier is commercially able to enter a trade in which its
access is being unduly impaired, or is reasonably expected to be
impaired, or where actual participation in a trade by a U.S. flag
carrier is being restricted for reasons other than its commercial
ability or competitiveness.
    (d) In examining conditions in a trade between foreign ports, and in
considering appropriate action, the Commission will give due regard to
U.S. maritime policy and U.S. Government shipping arrangements with
other nations, as well as the degree of reciprocal access afforded in
U.S. foreign trades to the carriers of the countries against whom
Commission action is contemplated.

[49 FR 45406, Nov. 15, 1984, as amended at 55 FR 28400, July 11, 1990;
64 FR 8009, Feb. 18, 1999; 74 FR 50734, Oct. 1, 2009]



Sec. 560.2  Factors indicating conditions unduly impairing access.

    For the purpose of this part, factors which would indicate the
existence of conditions created by foreign government action or action
of a common carrier acting alone or in concert with any person, which
unduly impair access of a U.S. flag vessel engaged in or seeking access
to ocean trade between foreign ports, include, but are not limited to:
    (a) Imposition upon U.S. flag vessels or upon shippers or consignees
using such vessels, of fees, charges, requirements, or restrictions
different from those imposed on national-flag or other vessels, or which
preclude or tend to preclude U.S. flag vessels from competing in the
trade on the same basis as any other vessel.
    (b) Reservation of a substantial portion of the total cargo in the
trade to national-flag or other vessels which results in failure to
provide reasonable competitive access to cargoes by U.S. flag vessels.
    (c) Use of predatory practices, possibly including but not limited
to the use of a vessel or vessels in a particular

[[Page 280]]

trade for the purpose of excluding, preventing, or reducing competition
by driving another ocean common carrier out of that trade, and closed
conferences employing deferred rebates, which unduly impair access of a
U.S. flag vessel to the trade.
    (d) Any government or commercial practice that results in, or may
result in, unequal and unfair opportunity for U.S. flag vessel access to
port or intermodal facilities or services related to the carriage of
cargo inland to or from ports in the trade.
    (e) Any other practice which unduly impairs access of a U.S. flag
vessel to trade between foreign ports.

[49 FR 45406, Nov. 15, 1984. Redesignated and amended at 64 FR 8009,
8010, Feb. 18, 1999]



Sec. 560.3  Petitions for relief.

    (a) Filing. (1) Any owner or operator of a liner, bulk, tramp or
other vessel documented under the laws of the United States who believes
that its access to ocean trade between foreign ports has been, or will
be, unduly impaired may file a written petition for relief under the
provisions of this part.
    (2) An original and fifteen copies of such a petition including any
supporting documents shall be filed with the Secretary, Federal Maritime
Commission, Washington, DC 20573. The petition shall be accompanied by
remittance of a $241 filing fee.
    (b) Contents. Petitions for relief shall include the following and
shall also include an affidavit attesting to the truth and accuracy of
the information submitted:
    (1) The name and address of the petitioner;
    (2) The name and address of each party (foreign government, agency
or instrumentality thereof, carrier, or other person) against whom the
petition is made and a statement as to whether the party is a foreign
government, agency or instrumentality thereof;
    (3) A concise description and citation of the foreign law, rule or
government or commercial practice complained of;
    (4) A certified copy of any law, rule, regulation or other document
concerned, when available and, if not in English, a certified English
translation thereof;
    (5) Any other information relating to any law, rule or regulation,
or indicating the existence of any government or commercial practice;
    (6) A description of the service offered or proposed, as a result of
which petitioner is alleging harm, including information which indicates
the ability of the petitioner to otherwise participate in the trade;
    (7) A clear description, in detail, of the harm already caused, or
which may reasonably be expected to be caused, to the petitioner for a
representative period, including:
    (i) Statistics documenting present or prospective cargo loss due to
discriminatory government or commercial practices if harm is alleged on
that basis; such statistics shall include figures for the total cargo
carried or projected to be carried by petitioner in the trade for the
period, and the sources of the statistics;
    (ii) Information documenting how the petitioner is being prevented
from entering a trade, if injury is claimed on that basis;
    (iii) Statistics or other information documenting the impact of
discriminatory government or commercial practices resulting in an
increase in costs, service restrictions, or other harm on the basis of
which injury is claimed, and the sources of the statistics; and
    (iv) A statement as to why the period is representative.
    (8) A separate memorandum of law or a discussion of the relevant
legal issues.
    (9) A recommended action, rule or regulation, the result of which
will, in the view of the petitioner, address the alleged conditions
unduly impairing the access of petitioner to the affected trade.
    (c) Deficient petition. A petition which substantially fails to
comply with the requirements of paragraph (b) of this section shall be
rejected and the person filing the petition shall be notified of the
reasons for such rejection. Rejection is without prejudice to filing of
an amended petition.

[49 FR 45406, Nov. 15, 1984, as amended at 63 FR 50537, Sept. 22, 1998;
67 FR 39862, June 11, 2002; 70 FR 10331, Mar. 3, 2005]

[[Page 281]]



Sec. 560.4  Proceeding.

    (a) Upon the Commission's own motion or upon the filing of a
petition which meets the requirements of Sec. 560.3, when there are
indications that conditions unduly impairing the access of a U.S. flag
vessel to trade between foreign ports may exist, the Commission will
institute a proceeding pursuant to this part.
    (b)(1) Notice of the institution of any such proceeding will be
published in the Federal Register, and that notice and petition, if any,
will be served on the parties.
    (2) Interested or adversely affected persons will be allowed a
period of time to reply to the petition by the submission of written
data, views or legal arguments pursuant to Sec. 560.5 of this part.
Factual submissions shall be in affidavit form.
    (3) An original and 15 copies of such submissions will be filed with
the Secretary, Federal Maritime Commission, Washington, DC 20573.
    (c) Following the close of the initial response period, the
Commission may issue a decision or order further hearings if warranted.
If further hearings are ordered, they will be conducted pursuant to
procedures to be outlined by the Commission in its order.

[49 FR 45406, Nov. 15, 1984. Redesignated at 64 FR 8009, Feb. 18, 1999,
and amended at 67 FR 39862, June 11, 2002]



Sec. 560.5  Receipt of relevant information.

    (a) In making its decision on matters arising under section
13(b)(6)of the Act (46 U.S.C. 41108(d)), the Commission may receive and
consider relevant information from any owner, operator, or conference in
an affected trade, or from any foreign government, either directly or
through the Department of State or from any other reliable source. All
such submissions should be supported by affidavits of fact and
memorandum of law. Relevant information may include, but is not limited
to:
    (1) Statistics, with sources, or, if unavailable, the best estimates
pertaining to:
    (i) The total cargo carried in the affected liner or bulk trade by
type, source, value, tonnage and direction.
    (ii) Cargo carried in the affected trade on vessels owned or
operated by any person or conference, by type, source, value, tonnage
and direction.
    (iii) The percentage such cargo carried is of the total affected
liner or bulk trade, on a tonnage and value basis.
    (iv) The amount of cargo reserved by a foreign government for
national-flag or other vessels in the affected trade, on a tonnage and
value basis, and a listing of the types of cargo and specific
commodities which are reserved for national-flag or other vessels.
    (2) Information on the operations of vessels of any party serving
the affected trade, including sailings to and from ports in the trade,
taxes or other charges paid to foreign authorities, and subsidies or
other payments received from foreign authorities.
    (3) Information clarifying the meaning of the foreign law, rule,
regulation or practice complained of, and a description of its
implementation.
    (4) Complete copies of all conference and other agreements,
including amendments and related documents, which apply in the trade.
    (b) Once introduced or adduced, information of the character
described in paragraph (a) of this section, and petitions and responses
thereto, shall be made part of the record for decision and may provide
the basis for Commission findings of fact and conclusions of law, and
for the imposition of sanctions under the Act and this part.

[49 FR 45406, Nov. 15, 1984. Redesignated and amended at 64 FR 8009,
8010, Feb. 18, 1999; 74 FR 50734, Oct. 1, 2009]



Sec. 560.6  Notification to Secretary of State.

    When there are indications that conditions unduly impairing the
access of a U.S. flag vessel to trade between foreign ports may exist,
the Commission shall so notify the Secretary of State and may request
that the Secretary of State seek resolution of the matter through
diplomatic channels. If request is made, the Commission will give every
assistance in such efforts, and the Commission may request the Secretary
to report the results of such efforts within a specified time period.

[[Page 282]]



Sec. 560.7  Decision; sanctions; effective date.

    (a) Upon completion of any proceeding conducted under this part, the
Commission will issue and serve a decision on all parties.
    (b) If the Commission finds that conditions unduly impairing access
of a U.S. flag vessel to ocean trade between foreign ports exist, any of
the following actions may be taken:
    (1) Imposition of equalizing fees or charges applied in the foreign
trade of the United States;
    (2) Limitations on sailings to and from United States ports or on
the amount or type of cargo carried;
    (3)(i) Suspension, in whole or in part, of any or all tariffs or
service contracts for carriage to or from United States ports for any
period the Commission specifies, or until such time as unimpaired access
is secured for U.S. flag carriers in the affected trade.
    (ii) Acceptance or handling of cargo for carriage under a tariff
that has been suspended, or after a common carrier's right to utilize
that tariff has been suspended pursuant to this part, will subject a
carrier to the imposition of a civil penalty as provided under the Act
(46 U.S.C. 41108(b)) of not more than $50,000 per shipment; and
    (4) Suspension, in whole or in part, of the right of an ocean common
carrier to operate under any agreement filed with the Commission,
including agreements authorizing preferential treatment at terminals,
preferential terminal leases, space chartering, or pooling of cargo or
revenues with other ocean common carriers;
    (5) Imposition of a charge not to exceed $1,000,000 per inbound or
outbound movement between a foreign country and the United States by a
vessel engaged in the United States oceanborne trade;
    (6) A request to the collector of customs at any port or place of
destination in the United States to refuse the clearance required by
section 4197 of the Revised Statutes (46 U.S.C. 60105), to any vessel of
a foreign carrier which is or whose government is identified as
contributing to the conditions described in Sec. 560.2 of this part;
    (7) A request to the Secretary of the department in which the Coast
Guard is operating to deny entry, for purposes of oceanborne trade, of
any vessel of a foreign carrier which is or whose government is
identified as contributing to the conditions described in Sec. 587.2 of
this part to any port or place in the United States or the navigable
waters of the United States, or to detain any such vessel at the port or
place in the United States from which it is about to depart for any
other port or place in the United States; and
    (8) Any other action the Commission finds necessary and appropriate
to address conditions unduly impairing access of a U.S.-flag vessel to
trade between foreign ports.
    (c) If the Commission finds that conditions impairing access of a
U.S. flag vessel to ocean trade between foreign ports has not yet
occurred, and punitive sanctions are warranted, such sanctions will be
imposed to become effective simultaneously with the implementation of
the action that would unduly impair the access of a U.S. flag vessel.
    (d)(1) All decisions will be published in the Federal Register.
    (2) Decisions imposing sanctions, except where conditions warrant
and for good cause, will become effective 30 days after the date of
publication.
    (e) Any party may file a petition to reconsider any decision under
this part. Such a petition shall be served on all other parties to the
proceeding and shall not, in and of itself, stay the effective date of
the Commission action.

[49 FR 45406, Nov. 15, 1984, as amended at 54 FR 11532, Mar. 21, 1989;
64 FR 8010, Feb. 18, 1999; 67 FR 39862, June 11, 2002; 74 FR 50734, Oct.
1, 2009]



Sec. 560.8  Submission of decision to the President.

    Concurrently with the submission of any decision imposing sanctions
to the Federal Register pursuant to Sec. 560.7(d)(1), the Commission
shall transmit that decision to the President of the United States who
may, within ten days after receiving the decision, disapprove it if the
President finds that disapproval is required for reasons of the national
defense or the foreign policy of the United States.

[67 FR 39862, June 11, 2002]

[[Page 283]]



Sec. 560.9  Postponement, discontinuance, or suspension of action.

    (a) The Commission may, on its own motion or upon a petition,
postpone, discontinue, or suspend any action taken by it under the
provisions of this part. Such a petition will be served on all other
parties and will not, in and of itself, stay the effective date of
Commission action.
    (b) The Commission shall postpone, discontinue or suspend any action
provided for in its final decision if so directed by the President for
reasons of national defense or foreign policy of the United States as
provided in Sec. 560.8.

[49 FR 45406, Nov. 15, 1984. Redesignated at 64 FR 8009, Feb. 18, 1999,
and amended at 67 FR 39862, June 11, 2002]



PART 565_CONTROLLED CARRIERS--Table of Contents



Sec.
565.1 Purpose and scope.
565.2 Definitions.
565.3 Classification as controlled carrier.
565.4 Notification to Commission of change in control.
565.5 Exceptions.
565.6 Level of rates and charges generally.
565.7 Effective dates.
565.8 Special permission.
565.9 Commission review, suspension and prohibition of rates, charges,
          classifications, rules or regulations.
565.10 Suspension procedures, period of suspension, and replacement
          rates.
565.11 Presidential review.
565.12 Stay, postponement, discontinuance or suspension of action.
565.13 OMB control number assigned pursuant to the Paperwork Reduction
          Act

    Authority: 46 U.S.C. 40701-40706.

    Source: 64 FR 8010, Feb. 18, 1999, unless otherwise noted.



Sec. 565.1  Purpose and scope.

    (a) Purpose. The regulations of this part are intended to carry out
the Commission's mandate under section 9 of the Shipping Act of 1984 (46
U.S.C. 40701-40706), as amended by the Ocean Shipping Reform Act of
1998, to monitor the practices of controlled carriers and ensure that
they do not:
    (1) Maintain rates or charges in their tariffs and service contracts
that are below a level that is just and reasonable; nor
    (2) Establish, maintain or enforce unjust or unreasonable
classifications, rules or regulations in those tariffs or service
contracts which result or are likely to result in the carriage or
handling of cargo at rates or charges that are below a just and
reasonable level.
    (b) Scope. The regulations contained in this part set forth the
special procedures whereby controlled carriers' tariffs and service
contracts become effective and are reviewed by the Commission. These
regulations in no way exempt controlled carriers from other Commission
regulations or statutory authority to which they may otherwise be
subject as ocean common carriers. These regulations apply to all
controlled carriers operating in the foreign commerce of the United
States unless excepted under section 9(f) of the Shipping Act of 1984
(46 U.S.C. 40706), as reflected by Sec. 565.5.

[64 FR 8010, Feb. 18, 1999, as amended at 74 FR 50735, Oct. 1, 2009]



Sec. 565.2  Definitions.

    (a) Controlled carrier means an ocean common carrier that is, or
whose operating assets are, directly or indirectly owned or controlled
by a government. Ownership or control by a government shall be deemed to
exist with respect to any ocean common carrier if:
    (1) A majority portion of the interest in the carrier is owned or
controlled in any manner by that government, by any agency thereof, or
by any public or private person controlled by that government; or
    (2) That government has the right to appoint or disapprove the
appointment of a majority of the directors, the chief operating officer
or the chief executive officer of the carrier.
    (b) Effective date has the same meaning it has in 46 CFR part 520.



Sec. 565.3  Classification as controlled carrier.

    (a) Notification. The Commission will periodically review the ocean
common carriers operating in the foreign commerce of the United States
and will notify any ocean common carrier of any change in its
classification as a controlled carrier.
    (b) Rebuttal of classification. (1) Any ocean common carrier
contesting such

[[Page 284]]

a classification may, within 30 days after the date of the Commission's
notice, submit a rebuttal statement.
    (2) The Commission shall review the rebuttal and notify the ocean
common carrier of its final decision.



Sec. 565.4  Notification to Commission of change in control.

    Whenever the operation, control or ownership of an ocean common
carrier is transferred resulting in a majority portion of the interest
of that ocean common carrier being owned or controlled in any manner by
a government, the ocean common carrier shall immediately send written
notification of the details of the change to the Secretary of the
Commission. If a carrier is newly commencing ocean common carrier
operations in a United States trade, and if a majority portion of the
carrier is owned or controlled by a government, or if a government may
approve or disapprove the majority of directors or the chief executive
or operating officer of the carrier, the carrier shall immediately send
written notification to the Secretary of the details of such ownership
or control.



Sec. 565.5  Exceptions.

    All controlled carriers shall be subject to provisions of this part
and section 9 of the Shipping Act of 1984 (46 U.S.C. 40701-40706) except
those which meet the following exceptions:
    (a) When the vessels of the controlling state are entitled by a
treaty of the United States to receive national or most-favored-nation
treatment; or
    (b) When the controlled carrier operates in a trade served
exclusively by controlled carriers.

[64 FR 8010, Feb. 18, 1999, as amended at 74 FR 50735, Oct. 1, 2009]



Sec. 565.6  Level of rates and charges generally.

    No controlled carrier may maintain or enforce rates or charges in
its tariffs or service contracts that are below a level that is just and
reasonable. No controlled carrier may establish or maintain unjust or
unreasonable classifications, rules, or regulations in its tariffs or
service contracts. An unjust or unreasonable classification, rule or
regulation means one that results or is likely to result in the carriage
or handling of cargo at rates or charges that are below a just and
reasonable level. See Sec. 565.9(a)(2) (Rate standards).



Sec. 565.7  Effective dates.

    (a) Generally. Except for service contracts, the rates, charges,
classifications, rules or regulations of controlled carriers may not,
unless the Commission has granted special permission, become effective
sooner than the 30th day after the date of publication.
    (b) Open rates--(1) Generally. Controlled carriers that are members
of conference agreements publishing rates for commodities designated as
open by the conference are subject to the 30-day controlled carrier
notice requirement, except when special permission is granted by the
Commission under Sec. 565.8.
    (2) Conference publication of reduced open rates. Notwithstanding
paragraph (b)(1) of this section, a conference may, on less than 30
days' notice, publish reduced rates on behalf of controlled carrier
members for open-rated commodities:
    (i) At or above the minimum level set by the conference; or
    (ii) At or above the level set by a member of the conference that
has not been determined by the Commission to be a controlled carrier
subject to section 9 of the Shipping Act of 1984 (46 U.S.C. 40701-
40706).
    (c) Independent action rates of controlled carriers. Conferences may
publish on behalf of their controlled carrier members lower independent
action rates on less than 30 days' notice, subject to the requirements
of their basic agreements and subject to such rates being published at
or above the level set by a member of the conference that has not been
determined by the Commission to be a controlled carrier subject to
section 9 of the Shipping Act of 1984.

[64 FR 8010, Feb. 18, 1999, as amended at 74 FR 50735, Oct. 1, 2009]



Sec. 565.8  Special permission.

    Section 8(d) of the Shipping Act of 1984 (46 U.S.C. 40501(e))
authorizes the Commission, in its discretion and for good cause shown,
to permit increases or decreases in rates, or the issuance of

[[Page 285]]

new or initial rates, on less than statutory notice under Sec. 565.7.
Section 9(c) of the Shipping Act of 1984 (46 U.S.C. 40703, 40704(a))
authorizes the Commission to permit a controlled carrier's rates,
charges, classifications, rules or regulations to become effective on
less than 30 days' notice. The Commission may also in its discretion and
for good cause shown, permit departures from the requirements of this
part. The Commission will consider such requests for special permission
by controlled carriers pursuant to its procedures set forth at 46 CFR
part 520.

[64 FR 8010, Feb. 18, 1999, as amended at 74 FR 50735, Oct. 1, 2009]



Sec. 565.9  Commission review, suspension and prohibition of rates,
charges, classifications, rules or regulations.

    (a)(1) Request for justification. Within 20 days of a request (with
respect to its existing or proposed rates, charges, classifications,
rules or regulations) from the Commission, each controlled carrier shall
file a statement of justification that sufficiently details the
controlled carrier's need and purpose for such rates, charges,
classifications, rules or regulations upon which the Commission may
reasonably base its determination of the lawfulness thereof.
    (2) Rate standards. (i) In determining whether rates, charges,
classifications, rules or regulations by a controlled carrier are just
and reasonable, the Commission shall take into account whether the rates
or charges which have been published or assessed or which would result
from the pertinent rates, charges, classifications, rules or regulations
are below a level which is fully compensatory to the controlled carrier
based upon that carrier's actual or constructive costs.
    (ii) For the purposes of paragraph (a)(2)(i) of this section,
constructive costs means the costs of another carrier, other than a
controlled carrier, operating similar vessels and equipment in the same
or a similar trade.
    (iii) The Commission may also take into account other appropriate
factors, including, but not limited to, whether:
    (A) The rates, charges, classifications, rules or regulations are
the same as or similar to those published or assessed by other carriers
in the same trade;
    (B) The rates, charges, classifications, rules or regulations are
required to assure movement of particular cargo in the trade; or
    (C) The rates, charges, classifications, rules or regulations are
required to maintain acceptable continuity, level or quality of common
carrier service to or from affected ports.
    (3) Time for determination. The Commission shall determine within
120 days of the receipt of information requested by the Commission under
this section, whether the rates, charges, classifications, rules or
regulations of a controlled carrier may be unjust and unreasonable.
Whenever the Commission is of the opinion that the rates, charges,
classifications, rules or regulations published or assessed by a
controlled carrier may be unjust and unreasonable, the Commission shall
issue an order to the controlled carrier to show cause why those rates,
charges, classifications, rules or regulations should not be prohibited.
    (b) Suspension. Pending a decision on whether to prohibit the rates,
charges, classifications, rules or regulations of a controlled carrier,
the Commission may suspend the rates, charges, classifications, rules or
regulations. See Sec. 565.10.
    (c) Prohibition. The Commission shall prohibit the use of any rates,
charges, classifications, rules or regulations that the controlled
carrier has failed to demonstrate to be just and reasonable. In a
proceeding under this paragraph, the burden of proof is on the
controlled carrier to demonstrate that its rates, charges,
classifications, rules or regulations are just and reasonable. The use
of rates, charges, classifications, rules or regulations published or
assessed by a controlled carrier that have been suspended or prohibited
by the Commission is unlawful.
    (d) Publication. All final orders of prohibition shall be published
in the Federal Register.



Sec. 565.10  Suspension procedures, period of suspension, and
replacement rates.

    (a)(1) Suspension prior to effective date. Pending a determination
as to their

[[Page 286]]

lawfulness in a prohibition proceeding as described in Sec. 565.9, the
Commission may suspend the rates, charges, classifications, rules or
regulations at any time before their effective date.
    (2) Suspension after effective date. In the case of rates, charges,
classifications, rules or regulations that have already become
effective, the Commission may, upon the issuance of an order to show
cause, suspend those rates, charges, classifications, rules or
regulations on not less than 30 days' notice to the controlled carrier.
    (b) Period of suspension. In any case, no period of suspension may
be greater than 180 days.
    (c) Implementation. (1) Upon issuance of an order suspending a rate,
charge, classification, rule or regulation in whole or in part, the
Commission shall direct the controlled carrier to remove the suspended
material from its tariff publication; or
    (2) if the matter subject to the suspension order is not covered by
paragraph (c)(1) of this section, the Commission shall set forth
procedures in the order for implementing the suspension.
    (3) Publication. All orders of suspension shall be published in the
Federal Register.
    (d) Replacement rates. Controlled carriers may publish in tariffs or
file in service contracts rates, charges, classifications, rules or
regulations in lieu of the suspended matter (``replacement rates'').
    (1) Effective date. In the case of replacement rates which are
published in tariffs and which are scheduled to become effective during
a suspension period, may become effective immediately upon either their
publication in tariffs or upon the effective date of the suspension,
whichever is later.
    (2) Rejection of replacement rates. The Commission may reject the
replacement rates, charges, classifications, rules or regulations
published in tariffs or filed in service contracts to take effect during
the suspension period if they are unjust and unreasonable. In
determining whether to reject replacement rates, charges,
classifications, rules or regulations, the Commission will consider
whether they would result in total charges (i.e, rate plus applicable
surcharges) that are lower than the lowest comparable charges effective
for a common carrier, other than a controlled carrier, serving the same
trade.
    (3) At the same time it announces replacement rates, the controlled
carrier shall submit to the Secretary of the Commission, a letter
identifying the specific competing common carrier's rates, charges,
classification or rules resulting in total charges which are equal to or
lower than its own.



Sec. 565.11  Presidential review.

    The Commission shall transmit all orders of suspension or final
orders of prohibition to the President of the United States concurrently
with the submission of such orders to the Federal Register pursuant to
Sec. 565.9(d) or Sec. 565.10(c)(3). The President may, within 10 days
of either the receipt or effective date of the order, request in writing
that the Commission stay the effect of the order for reasons of national
defense or foreign policy.



Sec. 565.12  Stay, postponement, discontinuance or suspension of action.

    The Commission may, on its own motion or upon petition, postpone,
discontinue, or suspend any and all actions taken by it under the
provisions of this part. The Commission shall immediately stay the
effect of any order issued under this part as requested by the President
pursuant to Sec. 565.11.



Sec. 565.13  OMB control number assigned pursuant to the Paperwork
Reduction Act

    The Commission has received OMB approval for this collection of
information pursuant to the Paperwork Reduction Act of 1995, as amended.
In accordance with that Act, agencies are required to display a
currently valid control number. The valid control number for this
collection of information is 3072-0060.

                        PARTS 566	599 [RESERVED]

[[Page 287]]



    SUBCHAPTER D_REGULATIONS AFFECTING MARITIME CARRIERS AND RELATED
                ACTIVITIES IN FOREIGN COMMERCE [RESERVED]



[[Page 289]]



                              FINDING AIDS




  --------------------------------------------------------------------

  A list of CFR titles, subtitles, chapters, subchapters and parts and 
an alphabetical list of agencies publishing in the CFR are included in 
the CFR Index and Finding Aids volume to the Code of Federal Regulations 
which is published separately and revised annually.

  Table of CFR Titles and Chapters
  Alphabetical List of Agencies Appearing in the CFR
  List of CFR Sections Affected

[[Page 291]]



                    Table of CFR Titles and Chapters




                     (Revised as of October 1, 2014)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
       III  Administrative Conference of the United States (Parts 
                300--399)
        IV  Miscellaneous Agencies (Parts 400--500)

                    Title 2--Grants and Agreements

            Subtitle A--Office of Management and Budget Guidance 
                for Grants and Agreements
         I  Office of Management and Budget Governmentwide 
                Guidance for Grants and Agreements (Parts 2--199)
        II  Office of Management and Budget Guidance (Parts 200--
                299)
            Subtitle B--Federal Agency Regulations for Grants and 
                Agreements
       III  Department of Health and Human Services (Parts 300--
                399)
        IV  Department of Agriculture (Parts 400--499)
        VI  Department of State (Parts 600--699)
       VII  Agency for International Development (Parts 700--799)
      VIII  Department of Veterans Affairs (Parts 800--899)
        IX  Department of Energy (Parts 900--999)
        XI  Department of Defense (Parts 1100--1199)
       XII  Department of Transportation (Parts 1200--1299)
      XIII  Department of Commerce (Parts 1300--1399)
       XIV  Department of the Interior (Parts 1400--1499)
        XV  Environmental Protection Agency (Parts 1500--1599)
     XVIII  National Aeronautics and Space Administration (Parts 
                1800--1899)
        XX  United States Nuclear Regulatory Commission (Parts 
                2000--2099)
      XXII  Corporation for National and Community Service (Parts 
                2200--2299)
     XXIII  Social Security Administration (Parts 2300--2399)
      XXIV  Housing and Urban Development (Parts 2400--2499)
       XXV  National Science Foundation (Parts 2500--2599)
      XXVI  National Archives and Records Administration (Parts 
                2600--2699)
     XXVII  Small Business Administration (Parts 2700--2799)
    XXVIII  Department of Justice (Parts 2800--2899)

[[Page 292]]

       XXX  Department of Homeland Security (Parts 3000--3099)
      XXXI  Institute of Museum and Library Services (Parts 3100--
                3199)
     XXXII  National Endowment for the Arts (Parts 3200--3299)
    XXXIII  National Endowment for the Humanities (Parts 3300--
                3399)
     XXXIV  Department of Education (Parts 3400--3499)
      XXXV  Export-Import Bank of the United States (Parts 3500--
                3599)
    XXXVII  Peace Corps (Parts 3700--3799)
     LVIII  Election Assistance Commission (Parts 5800--5899)

                        Title 3--The President

         I  Executive Office of the President (Parts 100--199)

                           Title 4--Accounts

         I  Government Accountability Office (Parts 1--199)
        II  Recovery Accountability and Transparency Board (Parts 
                200--299)

                   Title 5--Administrative Personnel

         I  Office of Personnel Management (Parts 1--1199)
        II  Merit Systems Protection Board (Parts 1200--1299)
       III  Office of Management and Budget (Parts 1300--1399)
         V  The International Organizations Employees Loyalty 
                Board (Parts 1500--1599)
        VI  Federal Retirement Thrift Investment Board (Parts 
                1600--1699)
      VIII  Office of Special Counsel (Parts 1800--1899)
        IX  Appalachian Regional Commission (Parts 1900--1999)
        XI  Armed Forces Retirement Home (Parts 2100--2199)
       XIV  Federal Labor Relations Authority, General Counsel of 
                the Federal Labor Relations Authority and Federal 
                Service Impasses Panel (Parts 2400--2499)
        XV  Office of Administration, Executive Office of the 
                President (Parts 2500--2599)
       XVI  Office of Government Ethics (Parts 2600--2699)
       XXI  Department of the Treasury (Parts 3100--3199)
      XXII  Federal Deposit Insurance Corporation (Parts 3200--
                3299)
     XXIII  Department of Energy (Parts 3300--3399)
      XXIV  Federal Energy Regulatory Commission (Parts 3400--
                3499)
       XXV  Department of the Interior (Parts 3500--3599)
      XXVI  Department of Defense (Parts 3600--3699)
    XXVIII  Department of Justice (Parts 3800--3899)
      XXIX  Federal Communications Commission (Parts 3900--3999)
       XXX  Farm Credit System Insurance Corporation (Parts 4000--
                4099)
      XXXI  Farm Credit Administration (Parts 4100--4199)

[[Page 293]]

    XXXIII  Overseas Private Investment Corporation (Parts 4300--
                4399)
     XXXIV  Securities and Exchange Commission (Parts 4400--4499)
      XXXV  Office of Personnel Management (Parts 4500--4599)
    XXXVII  Federal Election Commission (Parts 4700--4799)
        XL  Interstate Commerce Commission (Parts 5000--5099)
       XLI  Commodity Futures Trading Commission (Parts 5100--
                5199)
      XLII  Department of Labor (Parts 5200--5299)
     XLIII  National Science Foundation (Parts 5300--5399)
       XLV  Department of Health and Human Services (Parts 5500--
                5599)
      XLVI  Postal Rate Commission (Parts 5600--5699)
     XLVII  Federal Trade Commission (Parts 5700--5799)
    XLVIII  Nuclear Regulatory Commission (Parts 5800--5899)
      XLIX  Federal Labor Relations Authority (Parts 5900--5999)
         L  Department of Transportation (Parts 6000--6099)
       LII  Export-Import Bank of the United States (Parts 6200--
                6299)
      LIII  Department of Education (Parts 6300--6399)
       LIV  Environmental Protection Agency (Parts 6400--6499)
        LV  National Endowment for the Arts (Parts 6500--6599)
       LVI  National Endowment for the Humanities (Parts 6600--
                6699)
      LVII  General Services Administration (Parts 6700--6799)
     LVIII  Board of Governors of the Federal Reserve System 
                (Parts 6800--6899)
       LIX  National Aeronautics and Space Administration (Parts 
                6900--6999)
        LX  United States Postal Service (Parts 7000--7099)
       LXI  National Labor Relations Board (Parts 7100--7199)
      LXII  Equal Employment Opportunity Commission (Parts 7200--
                7299)
     LXIII  Inter-American Foundation (Parts 7300--7399)
      LXIV  Merit Systems Protection Board (Parts 7400--7499)
       LXV  Department of Housing and Urban Development (Parts 
                7500--7599)
      LXVI  National Archives and Records Administration (Parts 
                7600--7699)
     LXVII  Institute of Museum and Library Services (Parts 7700--
                7799)
    LXVIII  Commission on Civil Rights (Parts 7800--7899)
      LXIX  Tennessee Valley Authority (Parts 7900--7999)
       LXX  Court Services and Offender Supervision Agency for the 
                District of Columbia (Parts 8000--8099)
      LXXI  Consumer Product Safety Commission (Parts 8100--8199)
    LXXIII  Department of Agriculture (Parts 8300--8399)
     LXXIV  Federal Mine Safety and Health Review Commission 
                (Parts 8400--8499)
     LXXVI  Federal Retirement Thrift Investment Board (Parts 
                8600--8699)
    LXXVII  Office of Management and Budget (Parts 8700--8799)
      LXXX  Federal Housing Finance Agency (Parts 9000--9099)
   LXXXIII  Special Inspector General for Afghanistan 
                Reconstruction (Parts 9300--9399)

[[Page 294]]

    LXXXIV  Bureau of Consumer Financial Protection (Parts 9400--
                9499)
    LXXXVI  National Credit Union Administration (Parts 9600--
                9699)
     XCVII  Department of Homeland Security Human Resources 
                Management System (Department of Homeland 
                Security--Office of Personnel Management) (Parts 
                9700--9799)
     XCVII  Council of the Inspectors General on Integrity and 
                Efficiency (Parts 9800--9899)
      XCIX  Military Compensation and Retirement Modernization 
                Commission (Parts 9900--9999)

                      Title 6--Domestic Security

         I  Department of Homeland Security, Office of the 
                Secretary (Parts 1--99)
         X  Privacy and Civil Liberties Oversight Board (Parts 
                1000--1099)

                         Title 7--Agriculture

            Subtitle A--Office of the Secretary of Agriculture 
                (Parts 0--26)
            Subtitle B--Regulations of the Department of 
                Agriculture
         I  Agricultural Marketing Service (Standards, 
                Inspections, Marketing Practices), Department of 
                Agriculture (Parts 27--209)
        II  Food and Nutrition Service, Department of Agriculture 
                (Parts 210--299)
       III  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 300--399)
        IV  Federal Crop Insurance Corporation, Department of 
                Agriculture (Parts 400--499)
         V  Agricultural Research Service, Department of 
                Agriculture (Parts 500--599)
        VI  Natural Resources Conservation Service, Department of 
                Agriculture (Parts 600--699)
       VII  Farm Service Agency, Department of Agriculture (Parts 
                700--799)
      VIII  Grain Inspection, Packers and Stockyards 
                Administration (Federal Grain Inspection Service), 
                Department of Agriculture (Parts 800--899)
        IX  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Fruits, Vegetables, Nuts), Department 
                of Agriculture (Parts 900--999)
         X  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Milk), Department of Agriculture 
                (Parts 1000--1199)
        XI  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Miscellaneous Commodities), Department 
                of Agriculture (Parts 1200--1299)
       XIV  Commodity Credit Corporation, Department of 
                Agriculture (Parts 1400--1499)
        XV  Foreign Agricultural Service, Department of 
                Agriculture (Parts 1500--1599)

[[Page 295]]

       XVI  Rural Telephone Bank, Department of Agriculture (Parts 
                1600--1699)
      XVII  Rural Utilities Service, Department of Agriculture 
                (Parts 1700--1799)
     XVIII  Rural Housing Service, Rural Business-Cooperative 
                Service, Rural Utilities Service, and Farm Service 
                Agency, Department of Agriculture (Parts 1800--
                2099)
        XX  Local Television Loan Guarantee Board (Parts 2200--
                2299)
       XXV  Office of Advocacy and Outreach, Department of 
                Agriculture (Parts 2500--2599)
      XXVI  Office of Inspector General, Department of Agriculture 
                (Parts 2600--2699)
     XXVII  Office of Information Resources Management, Department 
                of Agriculture (Parts 2700--2799)
    XXVIII  Office of Operations, Department of Agriculture (Parts 
                2800--2899)
      XXIX  Office of Energy Policy and New Uses, Department of 
                Agriculture (Parts 2900--2999)
       XXX  Office of the Chief Financial Officer, Department of 
                Agriculture (Parts 3000--3099)
      XXXI  Office of Environmental Quality, Department of 
                Agriculture (Parts 3100--3199)
     XXXII  Office of Procurement and Property Management, 
                Department of Agriculture (Parts 3200--3299)
    XXXIII  Office of Transportation, Department of Agriculture 
                (Parts 3300--3399)
     XXXIV  National Institute of Food and Agriculture (Parts 
                3400--3499)
      XXXV  Rural Housing Service, Department of Agriculture 
                (Parts 3500--3599)
     XXXVI  National Agricultural Statistics Service, Department 
                of Agriculture (Parts 3600--3699)
    XXXVII  Economic Research Service, Department of Agriculture 
                (Parts 3700--3799)
   XXXVIII  World Agricultural Outlook Board, Department of 
                Agriculture (Parts 3800--3899)
       XLI  [Reserved]
      XLII  Rural Business-Cooperative Service and Rural Utilities 
                Service, Department of Agriculture (Parts 4200--
                4299)

                    Title 8--Aliens and Nationality

         I  Department of Homeland Security (Immigration and 
                Naturalization) (Parts 1--499)
         V  Executive Office for Immigration Review, Department of 
                Justice (Parts 1000--1399)

                 Title 9--Animals and Animal Products

         I  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 1--199)

[[Page 296]]

        II  Grain Inspection, Packers and Stockyards 
                Administration (Packers and Stockyards Programs), 
                Department of Agriculture (Parts 200--299)
       III  Food Safety and Inspection Service, Department of 
                Agriculture (Parts 300--599)

                           Title 10--Energy

         I  Nuclear Regulatory Commission (Parts 0--199)
        II  Department of Energy (Parts 200--699)
       III  Department of Energy (Parts 700--999)
         X  Department of Energy (General Provisions) (Parts 
                1000--1099)
      XIII  Nuclear Waste Technical Review Board (Parts 1300--
                1399)
      XVII  Defense Nuclear Facilities Safety Board (Parts 1700--
                1799)
     XVIII  Northeast Interstate Low-Level Radioactive Waste 
                Commission (Parts 1800--1899)

                      Title 11--Federal Elections

         I  Federal Election Commission (Parts 1--9099)
        II  Election Assistance Commission (Parts 9400--9499)

                      Title 12--Banks and Banking

         I  Comptroller of the Currency, Department of the 
                Treasury (Parts 1--199)
        II  Federal Reserve System (Parts 200--299)
       III  Federal Deposit Insurance Corporation (Parts 300--399)
        IV  Export-Import Bank of the United States (Parts 400--
                499)
         V  Office of Thrift Supervision, Department of the 
                Treasury (Parts 500--599)
        VI  Farm Credit Administration (Parts 600--699)
       VII  National Credit Union Administration (Parts 700--799)
      VIII  Federal Financing Bank (Parts 800--899)
        IX  Federal Housing Finance Board (Parts 900--999)
         X  Bureau of Consumer Financial Protection (Parts 1000--
                1099)
        XI  Federal Financial Institutions Examination Council 
                (Parts 1100--1199)
       XII  Federal Housing Finance Agency (Parts 1200--1299)
      XIII  Financial Stability Oversight Council (Parts 1300--
                1399)
       XIV  Farm Credit System Insurance Corporation (Parts 1400--
                1499)
        XV  Department of the Treasury (Parts 1500--1599)
       XVI  Office of Financial Research (Parts 1600--1699)
      XVII  Office of Federal Housing Enterprise Oversight, 
                Department of Housing and Urban Development (Parts 
                1700--1799)
     XVIII  Community Development Financial Institutions Fund, 
                Department of the Treasury (Parts 1800--1899)

[[Page 297]]

               Title 13--Business Credit and Assistance

         I  Small Business Administration (Parts 1--199)
       III  Economic Development Administration, Department of 
                Commerce (Parts 300--399)
        IV  Emergency Steel Guarantee Loan Board (Parts 400--499)
         V  Emergency Oil and Gas Guaranteed Loan Board (Parts 
                500--599)

                    Title 14--Aeronautics and Space

         I  Federal Aviation Administration, Department of 
                Transportation (Parts 1--199)
        II  Office of the Secretary, Department of Transportation 
                (Aviation Proceedings) (Parts 200--399)
       III  Commercial Space Transportation, Federal Aviation 
                Administration, Department of Transportation 
                (Parts 400--1199)
         V  National Aeronautics and Space Administration (Parts 
                1200--1299)
        VI  Air Transportation System Stabilization (Parts 1300--
                1399)

                 Title 15--Commerce and Foreign Trade

            Subtitle A--Office of the Secretary of Commerce (Parts 
                0--29)
            Subtitle B--Regulations Relating to Commerce and 
                Foreign Trade
         I  Bureau of the Census, Department of Commerce (Parts 
                30--199)
        II  National Institute of Standards and Technology, 
                Department of Commerce (Parts 200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  Foreign-Trade Zones Board, Department of Commerce 
                (Parts 400--499)
       VII  Bureau of Industry and Security, Department of 
                Commerce (Parts 700--799)
      VIII  Bureau of Economic Analysis, Department of Commerce 
                (Parts 800--899)
        IX  National Oceanic and Atmospheric Administration, 
                Department of Commerce (Parts 900--999)
        XI  Technology Administration, Department of Commerce 
                (Parts 1100--1199)
      XIII  East-West Foreign Trade Board (Parts 1300--1399)
       XIV  Minority Business Development Agency (Parts 1400--
                1499)
            Subtitle C--Regulations Relating to Foreign Trade 
                Agreements
        XX  Office of the United States Trade Representative 
                (Parts 2000--2099)
            Subtitle D--Regulations Relating to Telecommunications 
                and Information
     XXIII  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                2300--2399)

[[Page 298]]

                    Title 16--Commercial Practices

         I  Federal Trade Commission (Parts 0--999)
        II  Consumer Product Safety Commission (Parts 1000--1799)

             Title 17--Commodity and Securities Exchanges

         I  Commodity Futures Trading Commission (Parts 1--199)
        II  Securities and Exchange Commission (Parts 200--399)
        IV  Department of the Treasury (Parts 400--499)

          Title 18--Conservation of Power and Water Resources

         I  Federal Energy Regulatory Commission, Department of 
                Energy (Parts 1--399)
       III  Delaware River Basin Commission (Parts 400--499)
        VI  Water Resources Council (Parts 700--799)
      VIII  Susquehanna River Basin Commission (Parts 800--899)
      XIII  Tennessee Valley Authority (Parts 1300--1399)

                       Title 19--Customs Duties

         I  U.S. Customs and Border Protection, Department of 
                Homeland Security; Department of the Treasury 
                (Parts 0--199)
        II  United States International Trade Commission (Parts 
                200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  U.S. Immigration and Customs Enforcement, Department 
                of Homeland Security (Parts 400--599)

                     Title 20--Employees' Benefits

         I  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 1--199)
        II  Railroad Retirement Board (Parts 200--399)
       III  Social Security Administration (Parts 400--499)
        IV  Employees' Compensation Appeals Board, Department of 
                Labor (Parts 500--599)
         V  Employment and Training Administration, Department of 
                Labor (Parts 600--699)
        VI  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 700--799)
       VII  Benefits Review Board, Department of Labor (Parts 
                800--899)
      VIII  Joint Board for the Enrollment of Actuaries (Parts 
                900--999)
        IX  Office of the Assistant Secretary for Veterans' 
                Employment and Training Service, Department of 
                Labor (Parts 1000--1099)

[[Page 299]]

                       Title 21--Food and Drugs

         I  Food and Drug Administration, Department of Health and 
                Human Services (Parts 1--1299)
        II  Drug Enforcement Administration, Department of Justice 
                (Parts 1300--1399)
       III  Office of National Drug Control Policy (Parts 1400--
                1499)

                      Title 22--Foreign Relations

         I  Department of State (Parts 1--199)
        II  Agency for International Development (Parts 200--299)
       III  Peace Corps (Parts 300--399)
        IV  International Joint Commission, United States and 
                Canada (Parts 400--499)
         V  Broadcasting Board of Governors (Parts 500--599)
       VII  Overseas Private Investment Corporation (Parts 700--
                799)
        IX  Foreign Service Grievance Board (Parts 900--999)
         X  Inter-American Foundation (Parts 1000--1099)
        XI  International Boundary and Water Commission, United 
                States and Mexico, United States Section (Parts 
                1100--1199)
       XII  United States International Development Cooperation 
                Agency (Parts 1200--1299)
      XIII  Millennium Challenge Corporation (Parts 1300--1399)
       XIV  Foreign Service Labor Relations Board; Federal Labor 
                Relations Authority; General Counsel of the 
                Federal Labor Relations Authority; and the Foreign 
                Service Impasse Disputes Panel (Parts 1400--1499)
        XV  African Development Foundation (Parts 1500--1599)
       XVI  Japan-United States Friendship Commission (Parts 
                1600--1699)
      XVII  United States Institute of Peace (Parts 1700--1799)

                          Title 23--Highways

         I  Federal Highway Administration, Department of 
                Transportation (Parts 1--999)
        II  National Highway Traffic Safety Administration and 
                Federal Highway Administration, Department of 
                Transportation (Parts 1200--1299)
       III  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 1300--1399)

                Title 24--Housing and Urban Development

            Subtitle A--Office of the Secretary, Department of 
                Housing and Urban Development (Parts 0--99)
            Subtitle B--Regulations Relating to Housing and Urban 
                Development
         I  Office of Assistant Secretary for Equal Opportunity, 
                Department of Housing and Urban Development (Parts 
                100--199)

[[Page 300]]

        II  Office of Assistant Secretary for Housing-Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 200--299)
       III  Government National Mortgage Association, Department 
                of Housing and Urban Development (Parts 300--399)
        IV  Office of Housing and Office of Multifamily Housing 
                Assistance Restructuring, Department of Housing 
                and Urban Development (Parts 400--499)
         V  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 500--599)
        VI  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 600--699) [Reserved]
       VII  Office of the Secretary, Department of Housing and 
                Urban Development (Housing Assistance Programs and 
                Public and Indian Housing Programs) (Parts 700--
                799)
      VIII  Office of the Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Section 8 Housing Assistance 
                Programs, Section 202 Direct Loan Program, Section 
                202 Supportive Housing for the Elderly Program and 
                Section 811 Supportive Housing for Persons With 
                Disabilities Program) (Parts 800--899)
        IX  Office of Assistant Secretary for Public and Indian 
                Housing, Department of Housing and Urban 
                Development (Parts 900--1699)
         X  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Interstate Land Sales 
                Registration Program) (Parts 1700--1799)
       XII  Office of Inspector General, Department of Housing and 
                Urban Development (Parts 2000--2099)
        XV  Emergency Mortgage Insurance and Loan Programs, 
                Department of Housing and Urban Development (Parts 
                2700--2799) [Reserved]
        XX  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 3200--3899)
      XXIV  Board of Directors of the HOPE for Homeowners Program 
                (Parts 4000--4099) [Reserved]
       XXV  Neighborhood Reinvestment Corporation (Parts 4100--
                4199)

                           Title 25--Indians

         I  Bureau of Indian Affairs, Department of the Interior 
                (Parts 1--299)
        II  Indian Arts and Crafts Board, Department of the 
                Interior (Parts 300--399)
       III  National Indian Gaming Commission, Department of the 
                Interior (Parts 500--599)
        IV  Office of Navajo and Hopi Indian Relocation (Parts 
                700--799)

[[Page 301]]

         V  Bureau of Indian Affairs, Department of the Interior, 
                and Indian Health Service, Department of Health 
                and Human Services (Part 900)
        VI  Office of the Assistant Secretary-Indian Affairs, 
                Department of the Interior (Parts 1000--1199)
       VII  Office of the Special Trustee for American Indians, 
                Department of the Interior (Parts 1200--1299)

                      Title 26--Internal Revenue

         I  Internal Revenue Service, Department of the Treasury 
                (Parts 1--End)

           Title 27--Alcohol, Tobacco Products and Firearms

         I  Alcohol and Tobacco Tax and Trade Bureau, Department 
                of the Treasury (Parts 1--399)
        II  Bureau of Alcohol, Tobacco, Firearms, and Explosives, 
                Department of Justice (Parts 400--699)

                   Title 28--Judicial Administration

         I  Department of Justice (Parts 0--299)
       III  Federal Prison Industries, Inc., Department of Justice 
                (Parts 300--399)
         V  Bureau of Prisons, Department of Justice (Parts 500--
                599)
        VI  Offices of Independent Counsel, Department of Justice 
                (Parts 600--699)
       VII  Office of Independent Counsel (Parts 700--799)
      VIII  Court Services and Offender Supervision Agency for the 
                District of Columbia (Parts 800--899)
        IX  National Crime Prevention and Privacy Compact Council 
                (Parts 900--999)
        XI  Department of Justice and Department of State (Parts 
                1100--1199)

                            Title 29--Labor

            Subtitle A--Office of the Secretary of Labor (Parts 
                0--99)
            Subtitle B--Regulations Relating to Labor
         I  National Labor Relations Board (Parts 100--199)
        II  Office of Labor-Management Standards, Department of 
                Labor (Parts 200--299)
       III  National Railroad Adjustment Board (Parts 300--399)
        IV  Office of Labor-Management Standards, Department of 
                Labor (Parts 400--499)
         V  Wage and Hour Division, Department of Labor (Parts 
                500--899)
        IX  Construction Industry Collective Bargaining Commission 
                (Parts 900--999)

[[Page 302]]

         X  National Mediation Board (Parts 1200--1299)
       XII  Federal Mediation and Conciliation Service (Parts 
                1400--1499)
       XIV  Equal Employment Opportunity Commission (Parts 1600--
                1699)
      XVII  Occupational Safety and Health Administration, 
                Department of Labor (Parts 1900--1999)
        XX  Occupational Safety and Health Review Commission 
                (Parts 2200--2499)
       XXV  Employee Benefits Security Administration, Department 
                of Labor (Parts 2500--2599)
     XXVII  Federal Mine Safety and Health Review Commission 
                (Parts 2700--2799)
        XL  Pension Benefit Guaranty Corporation (Parts 4000--
                4999)

                      Title 30--Mineral Resources

         I  Mine Safety and Health Administration, Department of 
                Labor (Parts 1--199)
        II  Bureau of Safety and Environmental Enforcement, 
                Department of the Interior (Parts 200--299)
        IV  Geological Survey, Department of the Interior (Parts 
                400--499)
         V  Bureau of Ocean Energy Management, Department of the 
                Interior (Parts 500--599)
       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department of the Interior (Parts 700--999)
       XII  Office of Natural Resources Revenue, Department of the 
                Interior (Parts 1200--1299)

                 Title 31--Money and Finance: Treasury

            Subtitle A--Office of the Secretary of the Treasury 
                (Parts 0--50)
            Subtitle B--Regulations Relating to Money and Finance
         I  Monetary Offices, Department of the Treasury (Parts 
                51--199)
        II  Fiscal Service, Department of the Treasury (Parts 
                200--399)
        IV  Secret Service, Department of the Treasury (Parts 
                400--499)
         V  Office of Foreign Assets Control, Department of the 
                Treasury (Parts 500--599)
        VI  Bureau of Engraving and Printing, Department of the 
                Treasury (Parts 600--699)
       VII  Federal Law Enforcement Training Center, Department of 
                the Treasury (Parts 700--799)
      VIII  Office of International Investment, Department of the 
                Treasury (Parts 800--899)
        IX  Federal Claims Collection Standards (Department of the 
                Treasury--Department of Justice) (Parts 900--999)
         X  Financial Crimes Enforcement Network, Department of 
                the Treasury (Parts 1000--1099)

[[Page 303]]

                      Title 32--National Defense

            Subtitle A--Department of Defense
         I  Office of the Secretary of Defense (Parts 1--399)
         V  Department of the Army (Parts 400--699)
        VI  Department of the Navy (Parts 700--799)
       VII  Department of the Air Force (Parts 800--1099)
            Subtitle B--Other Regulations Relating to National 
                Defense
       XII  Defense Logistics Agency (Parts 1200--1299)
       XVI  Selective Service System (Parts 1600--1699)
      XVII  Office of the Director of National Intelligence (Parts 
                1700--1799)
     XVIII  National Counterintelligence Center (Parts 1800--1899)
       XIX  Central Intelligence Agency (Parts 1900--1999)
        XX  Information Security Oversight Office, National 
                Archives and Records Administration (Parts 2000--
                2099)
       XXI  National Security Council (Parts 2100--2199)
      XXIV  Office of Science and Technology Policy (Parts 2400--
                2499)
     XXVII  Office for Micronesian Status Negotiations (Parts 
                2700--2799)
    XXVIII  Office of the Vice President of the United States 
                (Parts 2800--2899)

               Title 33--Navigation and Navigable Waters

         I  Coast Guard, Department of Homeland Security (Parts 
                1--199)
        II  Corps of Engineers, Department of the Army (Parts 
                200--399)
        IV  Saint Lawrence Seaway Development Corporation, 
                Department of Transportation (Parts 400--499)

                          Title 34--Education

            Subtitle A--Office of the Secretary, Department of 
                Education (Parts 1--99)
            Subtitle B--Regulations of the Offices of the 
                Department of Education
         I  Office for Civil Rights, Department of Education 
                (Parts 100--199)
        II  Office of Elementary and Secondary Education, 
                Department of Education (Parts 200--299)
       III  Office of Special Education and Rehabilitative 
                Services, Department of Education (Parts 300--399)
        IV  Office of Vocational and Adult Education, Department 
                of Education (Parts 400--499)
         V  Office of Bilingual Education and Minority Languages 
                Affairs, Department of Education (Parts 500--599)
        VI  Office of Postsecondary Education, Department of 
                Education (Parts 600--699)
       VII  Office of Educational Research and Improvement, 
                Department of Education (Parts 700--799)[Reserved]
            Subtitle C--Regulations Relating to Education

[[Page 304]]

        XI  National Institute for Literacy (Parts 1100--1199)
       XII  National Council on Disability (Parts 1200--1299)

                          Title 35 [Reserved]

             Title 36--Parks, Forests, and Public Property

         I  National Park Service, Department of the Interior 
                (Parts 1--199)
        II  Forest Service, Department of Agriculture (Parts 200--
                299)
       III  Corps of Engineers, Department of the Army (Parts 
                300--399)
        IV  American Battle Monuments Commission (Parts 400--499)
         V  Smithsonian Institution (Parts 500--599)
        VI  [Reserved]
       VII  Library of Congress (Parts 700--799)
      VIII  Advisory Council on Historic Preservation (Parts 800--
                899)
        IX  Pennsylvania Avenue Development Corporation (Parts 
                900--999)
         X  Presidio Trust (Parts 1000--1099)
        XI  Architectural and Transportation Barriers Compliance 
                Board (Parts 1100--1199)
       XII  National Archives and Records Administration (Parts 
                1200--1299)
        XV  Oklahoma City National Memorial Trust (Parts 1500--
                1599)
       XVI  Morris K. Udall Scholarship and Excellence in National 
                Environmental Policy Foundation (Parts 1600--1699)

             Title 37--Patents, Trademarks, and Copyrights

         I  United States Patent and Trademark Office, Department 
                of Commerce (Parts 1--199)
        II  U.S. Copyright Office, Library of Congress (Parts 
                200--299)
       III  Copyright Royalty Board, Library of Congress (Parts 
                300--399)
        IV  Assistant Secretary for Technology Policy, Department 
                of Commerce (Parts 400--599)

           Title 38--Pensions, Bonuses, and Veterans' Relief

         I  Department of Veterans Affairs (Parts 0--199)
        II  Armed Forces Retirement Home (Parts 200--299)

                       Title 39--Postal Service

         I  United States Postal Service (Parts 1--999)
       III  Postal Regulatory Commission (Parts 3000--3099)

                  Title 40--Protection of Environment

         I  Environmental Protection Agency (Parts 1--1099)

[[Page 305]]

        IV  Environmental Protection Agency and Department of 
                Justice (Parts 1400--1499)
         V  Council on Environmental Quality (Parts 1500--1599)
        VI  Chemical Safety and Hazard Investigation Board (Parts 
                1600--1699)
       VII  Environmental Protection Agency and Department of 
                Defense; Uniform National Discharge Standards for 
                Vessels of the Armed Forces (Parts 1700--1799)
      VIII  Gulf Coast Ecosystem Restoration Council (Parts 1800--
                1899)

          Title 41--Public Contracts and Property Management

            Subtitle A--Federal Procurement Regulations System 
                [Note]
            Subtitle B--Other Provisions Relating to Public 
                Contracts
        50  Public Contracts, Department of Labor (Parts 50-1--50-
                999)
        51  Committee for Purchase From People Who Are Blind or 
                Severely Disabled (Parts 51-1--51-99)
        60  Office of Federal Contract Compliance Programs, Equal 
                Employment Opportunity, Department of Labor (Parts 
                60-1--60-999)
        61  Office of the Assistant Secretary for Veterans' 
                Employment and Training Service, Department of 
                Labor (Parts 61-1--61-999)
   62--100  [Reserved]
            Subtitle C--Federal Property Management Regulations 
                System
       101  Federal Property Management Regulations (Parts 101-1--
                101-99)
       102  Federal Management Regulation (Parts 102-1--102-299)
  103--104  [Reserved]
       105  General Services Administration (Parts 105-1--105-999)
       109  Department of Energy Property Management Regulations 
                (Parts 109-1--109-99)
       114  Department of the Interior (Parts 114-1--114-99)
       115  Environmental Protection Agency (Parts 115-1--115-99)
       128  Department of Justice (Parts 128-1--128-99)
  129--200  [Reserved]
            Subtitle D--Other Provisions Relating to Property 
                Management [Reserved]
            Subtitle E--Federal Information Resources Management 
                Regulations System [Reserved]
            Subtitle F--Federal Travel Regulation System
       300  General (Parts 300-1--300-99)
       301  Temporary Duty (TDY) Travel Allowances (Parts 301-1--
                301-99)
       302  Relocation Allowances (Parts 302-1--302-99)
       303  Payment of Expenses Connected with the Death of 
                Certain Employees (Part 303-1--303-99)
       304  Payment of Travel Expenses from a Non-Federal Source 
                (Parts 304-1--304-99)

[[Page 306]]

                        Title 42--Public Health

         I  Public Health Service, Department of Health and Human 
                Services (Parts 1--199)
        IV  Centers for Medicare & Medicaid Services, Department 
                of Health and Human Services (Parts 400--599)
         V  Office of Inspector General-Health Care, Department of 
                Health and Human Services (Parts 1000--1999)

                   Title 43--Public Lands: Interior

            Subtitle A--Office of the Secretary of the Interior 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Lands
         I  Bureau of Reclamation, Department of the Interior 
                (Parts 400--999)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)
       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10099)

             Title 44--Emergency Management and Assistance

         I  Federal Emergency Management Agency, Department of 
                Homeland Security (Parts 0--399)
        IV  Department of Commerce and Department of 
                Transportation (Parts 400--499)

                       Title 45--Public Welfare

            Subtitle A--Department of Health and Human Services 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Welfare
        II  Office of Family Assistance (Assistance Programs), 
                Administration for Children and Families, 
                Department of Health and Human Services (Parts 
                200--299)
       III  Office of Child Support Enforcement (Child Support 
                Enforcement Program), Administration for Children 
                and Families, Department of Health and Human 
                Services (Parts 300--399)
        IV  Office of Refugee Resettlement, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 400--499)
         V  Foreign Claims Settlement Commission of the United 
                States, Department of Justice (Parts 500--599)
        VI  National Science Foundation (Parts 600--699)
       VII  Commission on Civil Rights (Parts 700--799)
      VIII  Office of Personnel Management (Parts 800--899)
         X  Office of Community Services, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 1000--1099)
        XI  National Foundation on the Arts and the Humanities 
                (Parts 1100--1199)

[[Page 307]]

       XII  Corporation for National and Community Service (Parts 
                1200--1299)
      XIII  Office of Human Development Services, Department of 
                Health and Human Services (Parts 1300--1399)
       XVI  Legal Services Corporation (Parts 1600--1699)
      XVII  National Commission on Libraries and Information 
                Science (Parts 1700--1799)
     XVIII  Harry S. Truman Scholarship Foundation (Parts 1800--
                1899)
       XXI  Commission on Fine Arts (Parts 2100--2199)
     XXIII  Arctic Research Commission (Part 2301)
      XXIV  James Madison Memorial Fellowship Foundation (Parts 
                2400--2499)
       XXV  Corporation for National and Community Service (Parts 
                2500--2599)

                          Title 46--Shipping

         I  Coast Guard, Department of Homeland Security (Parts 
                1--199)
        II  Maritime Administration, Department of Transportation 
                (Parts 200--399)
       III  Coast Guard (Great Lakes Pilotage), Department of 
                Homeland Security (Parts 400--499)
        IV  Federal Maritime Commission (Parts 500--599)

                      Title 47--Telecommunication

         I  Federal Communications Commission (Parts 0--199)
        II  Office of Science and Technology Policy and National 
                Security Council (Parts 200--299)
       III  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                300--399)
        IV  National Telecommunications and Information 
                Administration, Department of Commerce, and 
                National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 400--499)

           Title 48--Federal Acquisition Regulations System

         1  Federal Acquisition Regulation (Parts 1--99)
         2  Defense Acquisition Regulations System, Department of 
                Defense (Parts 200--299)
         3  Health and Human Services (Parts 300--399)
         4  Department of Agriculture (Parts 400--499)
         5  General Services Administration (Parts 500--599)
         6  Department of State (Parts 600--699)
         7  Agency for International Development (Parts 700--799)
         8  Department of Veterans Affairs (Parts 800--899)
         9  Department of Energy (Parts 900--999)

[[Page 308]]

        10  Department of the Treasury (Parts 1000--1099)
        12  Department of Transportation (Parts 1200--1299)
        13  Department of Commerce (Parts 1300--1399)
        14  Department of the Interior (Parts 1400--1499)
        15  Environmental Protection Agency (Parts 1500--1599)
        16  Office of Personnel Management, Federal Employees 
                Health Benefits Acquisition Regulation (Parts 
                1600--1699)
        17  Office of Personnel Management (Parts 1700--1799)
        18  National Aeronautics and Space Administration (Parts 
                1800--1899)
        19  Broadcasting Board of Governors (Parts 1900--1999)
        20  Nuclear Regulatory Commission (Parts 2000--2099)
        21  Office of Personnel Management, Federal Employees 
                Group Life Insurance Federal Acquisition 
                Regulation (Parts 2100--2199)
        23  Social Security Administration (Parts 2300--2399)
        24  Department of Housing and Urban Development (Parts 
                2400--2499)
        25  National Science Foundation (Parts 2500--2599)
        28  Department of Justice (Parts 2800--2899)
        29  Department of Labor (Parts 2900--2999)
        30  Department of Homeland Security, Homeland Security 
                Acquisition Regulation (HSAR) (Parts 3000--3099)
        34  Department of Education Acquisition Regulation (Parts 
                3400--3499)
        51  Department of the Army Acquisition Regulations (Parts 
                5100--5199)
        52  Department of the Navy Acquisition Regulations (Parts 
                5200--5299)
        53  Department of the Air Force Federal Acquisition 
                Regulation Supplement (Parts 5300--5399) 
                [Reserved]
        54  Defense Logistics Agency, Department of Defense (Parts 
                5400--5499)
        57  African Development Foundation (Parts 5700--5799)
        61  Civilian Board of Contract Appeals, General Services 
                Administration (Parts 6100--6199)
        63  Department of Transportation Board of Contract Appeals 
                (Parts 6300--6399)
        99  Cost Accounting Standards Board, Office of Federal 
                Procurement Policy, Office of Management and 
                Budget (Parts 9900--9999)

                       Title 49--Transportation

            Subtitle A--Office of the Secretary of Transportation 
                (Parts 1--99)
            Subtitle B--Other Regulations Relating to 
                Transportation
         I  Pipeline and Hazardous Materials Safety 
                Administration, Department of Transportation 
                (Parts 100--199)

[[Page 309]]

        II  Federal Railroad Administration, Department of 
                Transportation (Parts 200--299)
       III  Federal Motor Carrier Safety Administration, 
                Department of Transportation (Parts 300--399)
        IV  Coast Guard, Department of Homeland Security (Parts 
                400--499)
         V  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 500--599)
        VI  Federal Transit Administration, Department of 
                Transportation (Parts 600--699)
       VII  National Railroad Passenger Corporation (AMTRAK) 
                (Parts 700--799)
      VIII  National Transportation Safety Board (Parts 800--999)
         X  Surface Transportation Board, Department of 
                Transportation (Parts 1000--1399)
        XI  Research and Innovative Technology Administration, 
                Department of Transportation (Parts 1400--1499) 
                [Reserved]
       XII  Transportation Security Administration, Department of 
                Homeland Security (Parts 1500--1699)

                   Title 50--Wildlife and Fisheries

         I  United States Fish and Wildlife Service, Department of 
                the Interior (Parts 1--199)
        II  National Marine Fisheries Service, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 200--299)
       III  International Fishing and Related Activities (Parts 
                300--399)
        IV  Joint Regulations (United States Fish and Wildlife 
                Service, Department of the Interior and National 
                Marine Fisheries Service, National Oceanic and 
                Atmospheric Administration, Department of 
                Commerce); Endangered Species Committee 
                Regulations (Parts 400--499)
         V  Marine Mammal Commission (Parts 500--599)
        VI  Fishery Conservation and Management, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 600--699)

[[Page 311]]





           Alphabetical List of Agencies Appearing in the CFR




                     (Revised as of October 1, 2014)

                                                  CFR Title, Subtitle or 
                     Agency                               Chapter

Administrative Committee of the Federal Register  1, I
Administrative Conference of the United States    1, III
Advisory Council on Historic Preservation         36, VIII
Advocacy and Outreach, Office of                  7, XXV
Afghanistan Reconstruction, Special Inspector     22, LXXXIII
     General for
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development              2, VII; 22, II
  Federal Acquisition Regulation                  48, 7
Agricultural Marketing Service                    7, I, IX, X, XI
Agricultural Research Service                     7, V
Agriculture Department                            2, IV; 5, LXXIII
  Advocacy and Outreach, Office of                7, XXV
  Agricultural Marketing Service                  7, I, IX, X, XI
  Agricultural Research Service                   7, V
  Animal and Plant Health Inspection Service      7, III; 9, I
  Chief Financial Officer, Office of              7, XXX
  Commodity Credit Corporation                    7, XIV
  Economic Research Service                       7, XXXVII
  Energy Policy and New Uses, Office of           2, IX; 7, XXIX
  Environmental Quality, Office of                7, XXXI
  Farm Service Agency                             7, VII, XVIII
  Federal Acquisition Regulation                  48, 4
  Federal Crop Insurance Corporation              7, IV
  Food and Nutrition Service                      7, II
  Food Safety and Inspection Service              9, III
  Foreign Agricultural Service                    7, XV
  Forest Service                                  36, II
  Grain Inspection, Packers and Stockyards        7, VIII; 9, II
       Administration
  Information Resources Management, Office of     7, XXVII
  Inspector General, Office of                    7, XXVI
  National Agricultural Library                   7, XLI
  National Agricultural Statistics Service        7, XXXVI
  National Institute of Food and Agriculture      7, XXXIV
  Natural Resources Conservation Service          7, VI
  Operations, Office of                           7, XXVIII
  Procurement and Property Management, Office of  7, XXXII
  Rural Business-Cooperative Service              7, XVIII, XLII, L
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII, XXXV, L
  Rural Telephone Bank                            7, XVI
  Rural Utilities Service                         7, XVII, XVIII, XLII, L
  Secretary of Agriculture, Office of             7, Subtitle A
  Transportation, Office of                       7, XXXIII
  World Agricultural Outlook Board                7, XXXVIII
Air Force Department                              32, VII
  Federal Acquisition Regulation Supplement       48, 53
Air Transportation Stabilization Board            14, VI
Alcohol and Tobacco Tax and Trade Bureau          27, I
Alcohol, Tobacco, Firearms, and Explosives,       27, II
     Bureau of
AMTRAK                                            49, VII
American Battle Monuments Commission              36, IV
American Indians, Office of the Special Trustee   25, VII

[[Page 312]]

Animal and Plant Health Inspection Service        7, III; 9, I
Appalachian Regional Commission                   5, IX
Architectural and Transportation Barriers         36, XI
     Compliance Board
Arctic Research Commission                        45, XXIII
Armed Forces Retirement Home                      5, XI
Army Department                                   32, V
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 51
Bilingual Education and Minority Languages        34, V
     Affairs, Office of
Blind or Severely Disabled, Committee for         41, 51
     Purchase from People Who Are
Broadcasting Board of Governors                   22, V
  Federal Acquisition Regulation                  48, 19
Bureau of Ocean Energy Management, Regulation,    30, II
     and Enforcement
Census Bureau                                     15, I
Centers for Medicare & Medicaid Services          42, IV
Central Intelligence Agency                       32, XIX
Chemical Safety and Hazardous Investigation       40, VI
     Board
Chief Financial Officer, Office of                7, XXX
Child Support Enforcement, Office of              45, III
Children and Families, Administration for         45, II, III, IV, X
Civil Rights, Commission on                       5, LXVIII; 45, VII
Civil Rights, Office for                          34, I
Council of the Inspectors General on Integrity    5, XCVIII
     and Efficiency
Court Services and Offender Supervision Agency    5, LXX
     for the District of Columbia
Coast Guard                                       33, I; 46, I; 49, IV
Coast Guard (Great Lakes Pilotage)                46, III
Commerce Department                               2, XIII; 44, IV; 50, VI
  Census Bureau                                   15, I
  Economic Analysis, Bureau of                    15, VIII
  Economic Development Administration             13, III
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 13
  Foreign-Trade Zones Board                       15, IV
  Industry and Security, Bureau of                15, VII
  International Trade Administration              15, III; 19, III
  National Institute of Standards and Technology  15, II
  National Marine Fisheries Service               50, II, IV
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Telecommunications and Information     15, XXIII; 47, III, IV
       Administration
  National Weather Service                        15, IX
  Patent and Trademark Office, United States      37, I
  Productivity, Technology and Innovation,        37, IV
       Assistant Secretary for
  Secretary of Commerce, Office of                15, Subtitle A
  Technology Administration                       15, XI
  Technology Policy, Assistant Secretary for      37, IV
Commercial Space Transportation                   14, III
Commodity Credit Corporation                      7, XIV
Commodity Futures Trading Commission              5, XLI; 17, I
Community Planning and Development, Office of     24, V, VI
     Assistant Secretary for
Community Services, Office of                     45, X
Comptroller of the Currency                       12, I
Construction Industry Collective Bargaining       29, IX
     Commission
Consumer Financial Protection Bureau              5, LXXXIV; 12, X
Consumer Product Safety Commission                5, LXXI; 16, II
Copyright Royalty Board                           37, III
Corporation for National and Community Service    2, XXII; 45, XII, XXV
Cost Accounting Standards Board                   48, 99
Council on Environmental Quality                  40, V
Court Services and Offender Supervision Agency    5, LXX; 28, VIII
     for the District of Columbia
Customs and Border Protection                     19, I

[[Page 313]]

Defense Contract Audit Agency                     32, I
Defense Department                                2, XI; 5, XXVI; 32, 
                                                  Subtitle A; 40, VII
  Advanced Research Projects Agency               32, I
  Air Force Department                            32, VII
  Army Department                                 32, V; 33, II; 36, III, 
                                                  48, 51
  Defense Acquisition Regulations System          48, 2
  Defense Intelligence Agency                     32, I
  Defense Logistics Agency                        32, I, XII; 48, 54
  Engineers, Corps of                             33, II; 36, III
  National Imagery and Mapping Agency             32, I
  Navy Department                                 32, VI; 48, 52
  Secretary of Defense, Office of                 2, XI; 32, I
Defense Contract Audit Agency                     32, I
Defense Intelligence Agency                       32, I
Defense Logistics Agency                          32, XII; 48, 54
Defense Nuclear Facilities Safety Board           10, XVII
Delaware River Basin Commission                   18, III
District of Columbia, Court Services and          5, LXX; 28, VIII
     Offender Supervision Agency for the
Drug Enforcement Administration                   21, II
East-West Foreign Trade Board                     15, XIII
Economic Analysis, Bureau of                      15, VIII
Economic Development Administration               13, III
Economic Research Service                         7, XXXVII
Education, Department of                          2, XXXIV; 5, LIII
  Bilingual Education and Minority Languages      34, V
       Affairs, Office of
  Civil Rights, Office for                        34, I
  Educational Research and Improvement, Office    34, VII
       of
  Elementary and Secondary Education, Office of   34, II
  Federal Acquisition Regulation                  48, 34
  Postsecondary Education, Office of              34, VI
  Secretary of Education, Office of               34, Subtitle A
  Special Education and Rehabilitative Services,  34, III
       Office of
  Vocational and Adult Education, Office of       34, IV
Educational Research and Improvement, Office of   34, VII
Election Assistance Commission                    2, LVIII; 11, II
Elementary and Secondary Education, Office of     34, II
Emergency Oil and Gas Guaranteed Loan Board       13, V
Emergency Steel Guarantee Loan Board              13, IV
Employee Benefits Security Administration         29, XXV
Employees' Compensation Appeals Board             20, IV
Employees Loyalty Board                           5, V
Employment and Training Administration            20, V
Employment Standards Administration               20, VI
Endangered Species Committee                      50, IV
Energy, Department of                             2, IX; 5, XXIII; 10, II, 
                                                  III, X
  Federal Acquisition Regulation                  48, 9
  Federal Energy Regulatory Commission            5, XXIV; 18, I
  Property Management Regulations                 41, 109
Energy, Office of                                 7, XXIX
Engineers, Corps of                               33, II; 36, III
Engraving and Printing, Bureau of                 31, VI
Environmental Protection Agency                   2, XV; 5, LIV; 40, I, IV, 
                                                  VII
  Federal Acquisition Regulation                  48, 15
  Property Management Regulations                 41, 115
Environmental Quality, Office of                  7, XXXI
Equal Employment Opportunity Commission           5, LXII; 29, XIV
Equal Opportunity, Office of Assistant Secretary  24, I
     for
Executive Office of the President                 3, I
  Administration, Office of                       5, XV
  Environmental Quality, Council on               40, V
  Management and Budget, Office of                2, Subtitle A; 5, III, 
                                                  LXXVII; 14, VI; 48, 99

[[Page 314]]

  National Drug Control Policy, Office of         21, III
  National Security Council                       32, XXI; 47, 2
  Presidential Documents                          3
  Science and Technology Policy, Office of        32, XXIV; 47, II
  Trade Representative, Office of the United      15, XX
       States
Export-Import Bank of the United States           2, XXXV; 5, LII; 12, IV
Family Assistance, Office of                      45, II
Farm Credit Administration                        5, XXXI; 12, VI
Farm Credit System Insurance Corporation          5, XXX; 12, XIV
Farm Service Agency                               7, VII, XVIII
Federal Acquisition Regulation                    48, 1
Federal Aviation Administration                   14, I
  Commercial Space Transportation                 14, III
Federal Claims Collection Standards               31, IX
Federal Communications Commission                 5, XXIX; 47, I
Federal Contract Compliance Programs, Office of   41, 60
Federal Crop Insurance Corporation                7, IV
Federal Deposit Insurance Corporation             5, XXII; 12, III
Federal Election Commission                       5, XXXVII; 11, I
Federal Emergency Management Agency               44, I
Federal Employees Group Life Insurance Federal    48, 21
     Acquisition Regulation
Federal Employees Health Benefits Acquisition     48, 16
     Regulation
Federal Energy Regulatory Commission              5, XXIV; 18, I
Federal Financial Institutions Examination        12, XI
     Council
Federal Financing Bank                            12, VIII
Federal Highway Administration                    23, I, II
Federal Home Loan Mortgage Corporation            1, IV
Federal Housing Enterprise Oversight Office       12, XVII
Federal Housing Finance Agency                    5, LXXX; 12, XII
Federal Housing Finance Board                     12, IX
Federal Labor Relations Authority                 5, XIV, XLIX; 22, XIV
Federal Law Enforcement Training Center           31, VII
Federal Management Regulation                     41, 102
Federal Maritime Commission                       46, IV
Federal Mediation and Conciliation Service        29, XII
Federal Mine Safety and Health Review Commission  5, LXXIV; 29, XXVII
Federal Motor Carrier Safety Administration       49, III
Federal Prison Industries, Inc.                   28, III
Federal Procurement Policy Office                 48, 99
Federal Property Management Regulations           41, 101
Federal Railroad Administration                   49, II
Federal Register, Administrative Committee of     1, I
Federal Register, Office of                       1, II
Federal Reserve System                            12, II
  Board of Governors                              5, LVIII
Federal Retirement Thrift Investment Board        5, VI, LXXVI
Federal Service Impasses Panel                    5, XIV
Federal Trade Commission                          5, XLVII; 16, I
Federal Transit Administration                    49, VI
Federal Travel Regulation System                  41, Subtitle F
Financial Crimes Enforcement Network              31, X
Financial Research Office                         12, XVI
Financial Stability Oversight Council             12, XIII
Fine Arts, Commission on                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
Food and Drug Administration                      21, I
Food and Nutrition Service                        7, II
Food Safety and Inspection Service                9, III
Foreign Agricultural Service                      7, XV
Foreign Assets Control, Office of                 31, V
Foreign Claims Settlement Commission of the       45, V
     United States
Foreign Service Grievance Board                   22, IX
Foreign Service Impasse Disputes Panel            22, XIV
Foreign Service Labor Relations Board             22, XIV
Foreign-Trade Zones Board                         15, IV

[[Page 315]]

Forest Service                                    36, II
General Services Administration                   5, LVII; 41, 105
  Contract Appeals, Board of                      48, 61
  Federal Acquisition Regulation                  48, 5
  Federal Management Regulation                   41, 102
  Federal Property Management Regulations         41, 101
  Federal Travel Regulation System                41, Subtitle F
  General                                         41, 300
  Payment From a Non-Federal Source for Travel    41, 304
       Expenses
  Payment of Expenses Connected With the Death    41, 303
       of Certain Employees
  Relocation Allowances                           41, 302
  Temporary Duty (TDY) Travel Allowances          41, 301
Geological Survey                                 30, IV
Government Accountability Office                  4, I
Government Ethics, Office of                      5, XVI
Government National Mortgage Association          24, III
Grain Inspection, Packers and Stockyards          7, VIII; 9, II
     Administration
Gulf Coast Ecosystem Restoration Council          40, VIII
Harry S. Truman Scholarship Foundation            45, XVIII
Health and Human Services, Department of          2, III; 5, XLV; 45, 
                                                  Subtitle A,
  Centers for Medicare & Medicaid Services        42, IV
  Child Support Enforcement, Office of            45, III
  Children and Families, Administration for       45, II, III, IV, X
  Community Services, Office of                   45, X
  Family Assistance, Office of                    45, II
  Federal Acquisition Regulation                  48, 3
  Food and Drug Administration                    21, I
  Human Development Services, Office of           45, XIII
  Indian Health Service                           25, V
  Inspector General (Health Care), Office of      42, V
  Public Health Service                           42, I
  Refugee Resettlement, Office of                 45, IV
Homeland Security, Department of                  2, XXX; 6, I; 8, I
  Coast Guard                                     33, I; 46, I; 49, IV
  Coast Guard (Great Lakes Pilotage)              46, III
  Customs and Border Protection                   19, I
  Federal Emergency Management Agency             44, I
  Human Resources Management and Labor Relations  5, XCVII
       Systems
  Immigration and Customs Enforcement Bureau      19, IV
  Transportation Security Administration          49, XII
HOPE for Homeowners Program, Board of Directors   24, XXIV
     of
Housing and Urban Development, Department of      2, XXIV; 5, LXV; 24, 
                                                  Subtitle B
  Community Planning and Development, Office of   24, V, VI
       Assistant Secretary for
  Equal Opportunity, Office of Assistant          24, I
       Secretary for
  Federal Acquisition Regulation                  48, 24
  Federal Housing Enterprise Oversight, Office    12, XVII
       of
  Government National Mortgage Association        24, III
  Housing--Federal Housing Commissioner, Office   24, II, VIII, X, XX
       of Assistant Secretary for
  Housing, Office of, and Multifamily Housing     24, IV
       Assistance Restructuring, Office of
  Inspector General, Office of                    24, XII
  Public and Indian Housing, Office of Assistant  24, IX
       Secretary for
  Secretary, Office of                            24, Subtitle A, VII
Housing--Federal Housing Commissioner, Office of  24, II, VIII, X, XX
     Assistant Secretary for
Housing, Office of, and Multifamily Housing       24, IV
     Assistance Restructuring, Office of
Human Development Services, Office of             45, XIII
Immigration and Customs Enforcement Bureau        19, IV
Immigration Review, Executive Office for          8, V
Independent Counsel, Office of                    28, VII

[[Page 316]]

Indian Affairs, Bureau of                         25, I, V
Indian Affairs, Office of the Assistant           25, VI
     Secretary
Indian Arts and Crafts Board                      25, II
Indian Health Service                             25, V
Industry and Security, Bureau of                  15, VII
Information Resources Management, Office of       7, XXVII
Information Security Oversight Office, National   32, XX
     Archives and Records Administration
Inspector General
  Agriculture Department                          7, XXVI
  Health and Human Services Department            42, V
  Housing and Urban Development Department        24, XII, XV
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Interior Department                               2, XIV
  American Indians, Office of the Special         25, VII
       Trustee
  Bureau of Ocean Energy Management, Regulation,  30, II
       and Enforcement
  Endangered Species Committee                    50, IV
  Federal Acquisition Regulation                  48, 14
  Federal Property Management Regulations System  41, 114
  Fish and Wildlife Service, United States        50, I, IV
  Geological Survey                               30, IV
  Indian Affairs, Bureau of                       25, I, V
  Indian Affairs, Office of the Assistant         25, VI
       Secretary
  Indian Arts and Crafts Board                    25, II
  Land Management, Bureau of                      43, II
  National Indian Gaming Commission               25, III
  National Park Service                           36, I
  Natural Resource Revenue, Office of             30, XII
  Ocean Energy Management, Bureau of              30, V
  Reclamation, Bureau of                          43, I
  Secretary of the Interior, Office of            2, XIV; 43, Subtitle A
  Surface Mining Reclamation and Enforcement,     30, VII
       Office of
Internal Revenue Service                          26, I
International Boundary and Water Commission,      22, XI
     United States and Mexico, United States 
     Section
International Development, United States Agency   22, II
     for
  Federal Acquisition Regulation                  48, 7
International Development Cooperation Agency,     22, XII
     United States
International Joint Commission, United States     22, IV
     and Canada
International Organizations Employees Loyalty     5, V
     Board
International Trade Administration                15, III; 19, III
International Trade Commission, United States     19, II
Interstate Commerce Commission                    5, XL
Investment Security, Office of                    31, VIII
James Madison Memorial Fellowship Foundation      45, XXIV
Japan-United States Friendship Commission         22, XVI
Joint Board for the Enrollment of Actuaries       20, VIII
Justice Department                                2, XXVIII; 5, XXVIII; 28, 
                                                  I, XI; 40, IV
  Alcohol, Tobacco, Firearms, and Explosives,     27, II
       Bureau of
  Drug Enforcement Administration                 21, II
  Federal Acquisition Regulation                  48, 28
  Federal Claims Collection Standards             31, IX
  Federal Prison Industries, Inc.                 28, III
  Foreign Claims Settlement Commission of the     45, V
       United States
  Immigration Review, Executive Office for        8, V
  Offices of Independent Counsel                  28, VI
  Prisons, Bureau of                              28, V
  Property Management Regulations                 41, 128
Labor Department                                  5, XLII
  Employee Benefits Security Administration       29, XXV
  Employees' Compensation Appeals Board           20, IV
  Employment and Training Administration          20, V

[[Page 317]]

  Employment Standards Administration             20, VI
  Federal Acquisition Regulation                  48, 29
  Federal Contract Compliance Programs, Office    41, 60
       of
  Federal Procurement Regulations System          41, 50
  Labor-Management Standards, Office of           29, II, IV
  Mine Safety and Health Administration           30, I
  Occupational Safety and Health Administration   29, XVII
  Office of Workers' Compensation Programs        20, VII
  Public Contracts                                41, 50
  Secretary of Labor, Office of                   29, Subtitle A
  Veterans' Employment and Training Service,      41, 61; 20, IX
       Office of the Assistant Secretary for
  Wage and Hour Division                          29, V
  Workers' Compensation Programs, Office of       20, I
Labor-Management Standards, Office of             29, II, IV
Land Management, Bureau of                        43, II
Legal Services Corporation                        45, XVI
Library of Congress                               36, VII
  Copyright Royalty Board                         37, III
  U.S. Copyright Office                           37, II
Local Television Loan Guarantee Board             7, XX
Management and Budget, Office of                  5, III, LXXVII; 14, VI; 
                                                  48, 99
Marine Mammal Commission                          50, V
Maritime Administration                           46, II
Merit Systems Protection Board                    5, II, LXIV
Micronesian Status Negotiations, Office for       32, XXVII
Military Compensation and Retirement              5, XCIX
     Modernization Commission
Millennium Challenge Corporation                  22, XIII
Mine Safety and Health Administration             30, I
Minority Business Development Agency              15, XIV
Miscellaneous Agencies                            1, IV
Monetary Offices                                  31, I
Morris K. Udall Scholarship and Excellence in     36, XVI
     National Environmental Policy Foundation
Museum and Library Services, Institute of         2, XXXI
National Aeronautics and Space Administration     2, XVIII; 5, LIX; 14, V
  Federal Acquisition Regulation                  48, 18
National Agricultural Library                     7, XLI
National Agricultural Statistics Service          7, XXXVI
National and Community Service, Corporation for   2, XXII; 45, XII, XXV
National Archives and Records Administration      2, XXVI; 5, LXVI; 36, XII
  Information Security Oversight Office           32, XX
National Capital Planning Commission              1, IV
National Commission for Employment Policy         1, IV
National Commission on Libraries and Information  45, XVII
     Science
National Council on Disability                    34, XII
National Counterintelligence Center               32, XVIII
National Credit Union Administration              5, LXXXVI; 12, VII
National Crime Prevention and Privacy Compact     28, IX
     Council
National Drug Control Policy, Office of           21, III
National Endowment for the Arts                   2, XXXII
National Endowment for the Humanities             2, XXXIII
National Foundation on the Arts and the           45, XI
     Humanities
National Highway Traffic Safety Administration    23, II, III; 47, VI; 49, V
National Imagery and Mapping Agency               32, I
National Indian Gaming Commission                 25, III
National Institute for Literacy                   34, XI
National Institute of Food and Agriculture        7, XXXIV
National Institute of Standards and Technology    15, II
National Intelligence, Office of Director of      32, XVII
National Labor Relations Board                    5, LXI; 29, I
National Marine Fisheries Service                 50, II, IV
National Mediation Board                          29, X
National Oceanic and Atmospheric Administration   15, IX; 50, II, III, IV, 
                                                  VI

[[Page 318]]

National Park Service                             36, I
National Railroad Adjustment Board                29, III
National Railroad Passenger Corporation (AMTRAK)  49, VII
National Science Foundation                       2, XXV; 5, XLIII; 45, VI
  Federal Acquisition Regulation                  48, 25
National Security Council                         32, XXI
National Security Council and Office of Science   47, II
     and Technology Policy
National Telecommunications and Information       15, XXIII; 47, III, IV
     Administration
National Transportation Safety Board              49, VIII
Natural Resources Conservation Service            7, VI
Natural Resource Revenue, Office of               30, XII
Navajo and Hopi Indian Relocation, Office of      25, IV
Navy Department                                   32, VI
  Federal Acquisition Regulation                  48, 52
Neighborhood Reinvestment Corporation             24, XXV
Northeast Interstate Low-Level Radioactive Waste  10, XVIII
     Commission
Nuclear Regulatory Commission                     2, XX; 5, XLVIII; 10, I
  Federal Acquisition Regulation                  48, 20
Occupational Safety and Health Administration     29, XVII
Occupational Safety and Health Review Commission  29, XX
Ocean Energy Management, Bureau of                30, V
Offices of Independent Counsel                    28, VI
Office of Workers' Compensation Programs          20, VII
Oklahoma City National Memorial Trust             36, XV
Operations Office                                 7, XXVIII
Overseas Private Investment Corporation           5, XXXIII; 22, VII
Patent and Trademark Office, United States        37, I
Payment From a Non-Federal Source for Travel      41, 304
     Expenses
Payment of Expenses Connected With the Death of   41, 303
     Certain Employees
Peace Corps                                       2, XXXVII; 22, III
Pennsylvania Avenue Development Corporation       36, IX
Pension Benefit Guaranty Corporation              29, XL
Personnel Management, Office of                   5, I, XXXV; 45, VIII
  Human Resources Management and Labor Relations  5, XCVII
       Systems, Department of Homeland Security
  Federal Acquisition Regulation                  48, 17
  Federal Employees Group Life Insurance Federal  48, 21
       Acquisition Regulation
  Federal Employees Health Benefits Acquisition   48, 16
       Regulation
Pipeline and Hazardous Materials Safety           49, I
     Administration
Postal Regulatory Commission                      5, XLVI; 39, III
Postal Service, United States                     5, LX; 39, I
Postsecondary Education, Office of                34, VI
President's Commission on White House             1, IV
     Fellowships
Presidential Documents                            3
Presidio Trust                                    36, X
Prisons, Bureau of                                28, V
Privacy and Civil Liberties Oversight Board       6, X
Procurement and Property Management, Office of    7, XXXII
Productivity, Technology and Innovation,          37, IV
     Assistant Secretary
Public Contracts, Department of Labor             41, 50
Public and Indian Housing, Office of Assistant    24, IX
     Secretary for
Public Health Service                             42, I
Railroad Retirement Board                         20, II
Reclamation, Bureau of                            43, I
Recovery Accountability and Transparency Board    4, II
Refugee Resettlement, Office of                   45, IV
Relocation Allowances                             41, 302
Research and Innovative Technology                49, XI
     Administration
Rural Business-Cooperative Service                7, XVIII, XLII, L
Rural Development Administration                  7, XLII
Rural Housing Service                             7, XVIII, XXXV, L

[[Page 319]]

Rural Telephone Bank                              7, XVI
Rural Utilities Service                           7, XVII, XVIII, XLII, L
Saint Lawrence Seaway Development Corporation     33, IV
Science and Technology Policy, Office of          32, XXIV
Science and Technology Policy, Office of, and     47, II
     National Security Council
Secret Service                                    31, IV
Securities and Exchange Commission                5, XXXIV; 17, II
Selective Service System                          32, XVI
Small Business Administration                     2, XXVII; 13, I
Smithsonian Institution                           36, V
Social Security Administration                    2, XXIII; 20, III; 48, 23
Soldiers' and Airmen's Home, United States        5, XI
Special Counsel, Office of                        5, VIII
Special Education and Rehabilitative Services,    34, III
     Office of
State Department                                  2, VI; 22, I; 28, XI
  Federal Acquisition Regulation                  48, 6
Surface Mining Reclamation and Enforcement,       30, VII
     Office of
Surface Transportation Board                      49, X
Susquehanna River Basin Commission                18, VIII
Technology Administration                         15, XI
Technology Policy, Assistant Secretary for        37, IV
Tennessee Valley Authority                        5, LXIX; 18, XIII
Thrift Supervision Office, Department of the      12, V
     Treasury
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     2, XII; 5, L
  Commercial Space Transportation                 14, III
  Contract Appeals, Board of                      48, 63
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 12
  Federal Aviation Administration                 14, I
  Federal Highway Administration                  23, I, II
  Federal Motor Carrier Safety Administration     49, III
  Federal Railroad Administration                 49, II
  Federal Transit Administration                  49, VI
  Maritime Administration                         46, II
  National Highway Traffic Safety Administration  23, II, III; 47, IV; 49, V
  Pipeline and Hazardous Materials Safety         49, I
       Administration
  Saint Lawrence Seaway Development Corporation   33, IV
  Secretary of Transportation, Office of          14, II; 49, Subtitle A
  Surface Transportation Board                    49, X
  Transportation Statistics Bureau                49, XI
Transportation, Office of                         7, XXXIII
Transportation Security Administration            49, XII
Transportation Statistics Bureau                  49, XI
Travel Allowances, Temporary Duty (TDY)           41, 301
Treasury Department                               5, XXI; 12, XV; 17, IV; 
                                                  31, IX
  Alcohol and Tobacco Tax and Trade Bureau        27, I
  Community Development Financial Institutions    12, XVIII
       Fund
  Comptroller of the Currency                     12, I
  Customs and Border Protection                   19, I
  Engraving and Printing, Bureau of               31, VI
  Federal Acquisition Regulation                  48, 10
  Federal Claims Collection Standards             31, IX
  Federal Law Enforcement Training Center         31, VII
  Financial Crimes Enforcement Network            31, X
  Fiscal Service                                  31, II
  Foreign Assets Control, Office of               31, V
  Internal Revenue Service                        26, I
  Investment Security, Office of                  31, VIII
  Monetary Offices                                31, I
  Secret Service                                  31, IV
  Secretary of the Treasury, Office of            31, Subtitle A
  Thrift Supervision, Office of                   12, V
Truman, Harry S. Scholarship Foundation           45, XVIII
United States and Canada, International Joint     22, IV
   Commission
[[Page 320]]

United States and Mexico, International Boundary  22, XI
     and Water Commission, United States Section
U.S. Copyright Office                             37, II
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs Department                       2, VIII; 38, I
  Federal Acquisition Regulation                  48, 8
Veterans' Employment and Training Service,        41, 61; 20, IX
     Office of the Assistant Secretary for
Vice President of the United States, Office of    32, XXVIII
Vocational and Adult Education, Office of         34, IV
Wage and Hour Division                            29, V
Water Resources Council                           18, VI
Workers' Compensation Programs, Office of         20, I
World Agricultural Outlook Board                  7, XXXVIII

[[Page 321]]



List of CFR Sections Affected



All changes in this volume of the Code of Federal Regulations (CFR) that 
were made by documents published in the Federal Register since January 
1, 2009 are enumerated in the following list. Entries indicate the 
nature of the changes effected. Page numbers refer to Federal Register 
pages. The user should consult the entries for chapters, parts and 
subparts as well as sections for revisions.
For changes to this volume of the CFR prior to this listing, consult the 
annual edition of the monthly List of CFR Sections Affected (LSA). The 
LSA is available at www.fdsys.gov. For changes to this volume of the CFR 
prior to 2001, see the ``List of CFR Sections Affected, 1949-1963, 1964-
1972, 1973-1985, and 1986-2000'' published in 11 separate volumes. The 
``List of CFR Sections Affected 1986-2000'' is available at 
www.fdsys.gov.

                                  2009

46 CFR
                                                                   74 FR
                                                                    Page
Chapter IV
501 Authority citation revised.....................................50714
501.2 (a) revised..................................................50714
501.5 (d)(6) amended...............................................50714
501.11 (a) amended.................................................50714
501.23 Amended.....................................................50714
501.24 (e) amended.................................................50714
    (e) table corrected............................................54913
501.27 (a) amended.................................................50714
    (e), (i), (j), (l)(1) and (m)(1) amended.......................50715
502 Authority citation revised.....................................50715
502.41 Amended.....................................................50715
502.44 (c) amended.................................................50715
502.63 (a) amended.................................................50716
502.67 (b) amended.................................................50716
502.68 (b) amended.................................................50716
502.75 (a) amended.................................................50716
502.114 (b) amended................................................50716
502.254 (a) amended................................................50716
502.301 (a) amended................................................50717
502.318 (b) amended................................................50717
502.601 Amended....................................................50717
502.602 (h) amended................................................50717
503.23 (a)(1) amended..............................................50717
    (a)(2) amended.................................................50718
504 Authority citation revised.....................................50718
504.1 (c) amended..................................................50718
504.2 (a) and (b) amended..........................................50718
504.4 (a)(9) and (15) amended......................................50718
504.9 Amended......................................................50718
506.1 Amended......................................................50719
506.4 (d) revised..................................................38115
508 Authority citation revised.....................................50719
515 Authority citation revised.....................................50719
515.1 (b) amended..................................................50719
515.22 (d)(4) and (5)(i) amended...................................50719
515.23 (a) and (b)(1) amended......................................50719
515.27 (a) and (c) amended.........................................50720
515.21--515.27 (Subpart C) Appendices A, B and C amended...........50720
    Appendices D, E and F amended..................................50721
515.42 (d) amended.................................................50721
520 Authority citation revised.....................................50722
520.1 (a), (b)(2), (3) and (4) amended.............................50722
520.4 (a)(3) and (i) amended.......................................50722
520.13 (a) amended.................................................50722
520.14 Amended.....................................................50722
525 Authority citation revised.....................................50723
525.1 (a) amended..................................................50723
525.2 (a) amended..................................................50723
530 Authority citation revised.....................................50723
530.1 Amended......................................................50723
530.3 (p) amended..................................................50723
530.6 (b) and (d) amended..........................................50723
530.7 (f) amended..................................................50724
530.13 (a) and (b) amended.........................................50724
530.14 (b) amended.................................................50724
531 Authority citation revised.....................................50724
531.1 Amended......................................................50724
531.2 Amended......................................................50724
531.3 (o) amended..................................................50724
531.6 (d)(4) amended...............................................50725
531.10 (a) amended.................................................50725
531 Appendix A amended.............................................50725

[[Page 322]]

535 Authority citation revised.....................................50727
535.101 Amended....................................................50727
535.103 (f)(5) amended.............................................50727
535.301 (d) amended................................................50727
535.302 (a)(1) amended.............................................50727
535.307 (a) and (c) amended........................................50728
535.308 Removed....................................................65036
535.309 (b)(1) revised.............................................65036
535.401 (a) amended................................................50728
535.405 (b) amended................................................50728
535.408 (b) amended................................................50728
535.604 (c) amended................................................50728
    (b) revised....................................................65036
535.606 (b) amended................................................50728
535.607 (b) and (c) amended........................................50729
535.608 (a) amended................................................50729
535.801 (a) amended................................................50729
535.802 (b) amended................................................50729
535.901 Amended....................................................50729
535.902 Amended....................................................50730
535 Appendices A and B amended.....................................50730
540 Authority citation revised.....................................50730
540.1 (b) amended..................................................50730
540.4 (a) amended..................................................50730
540.5 (d) amended..................................................50730
540.1--540.9 (Subpart A) Forms FMC-131 and FMC-133A and Appendix A 
        amended....................................................50731
540.23 (a) amended.................................................50731
540.20--540.27 (Subpart B) Forms FMC-132B and FMC-133B amended.....50732
545 Authority citation revised.....................................50732
545.1 (a) amended..................................................50732
545.2 Amended......................................................50732
550 Authority citation revised.....................................50732
550.101 Amended....................................................50732
550.601 (f) amended................................................50733
551 Authority citation revised.....................................50733
551.1 Amended......................................................50733
555 Authority citation revised.....................................50733
555.2 (a) amended..................................................50733
555.5 (b) amended..................................................50733
555.8 (a)(5) amended...............................................50733
560 Authority citation revised.....................................50734
560.1 (a)(1), (2), (3) and (b)(2) amended..........................50734
560.5 (a) amended..................................................50734
560.7 (b)(3)(ii) and (6) amended...................................50734
565 Authority citation revised.....................................50735
565.1 (a) and (b) amended..........................................50735
565.5 Amended......................................................50735
565.7 (b)(2)(ii) amended...........................................50735
565.8 Amended......................................................50735

                                  2010

46 CFR
                                                                   75 FR
                                                                    Page
Chapter IV
501.3 (c), (d), (h) and (i) revised................................29452
501.4 Revised......................................................29452
    (a) correctly amended..........................................31321
501.5 (a) introductory text, (c)(4), (d)(7), (f), (h) and (k) 
        revised; (d)(10) and (i)(3) removed; (l)(1) amended; 
        (l)(3) added...............................................29452
    (a) correctly amended..........................................31321
501.24 (h) revised.................................................29454
501.25 Revised.....................................................29454
501.28 (a) revised.................................................29454
501.29 Removed.....................................................29454
501.41 (a) amended; (c) revised....................................29454
501 Appendix A revised.............................................29454
    Appendix A correctly revised...................................31321
502.604 (b) and (g) revised........................................29455
535.401 (g) amended................................................29455

                                  2011

46 CFR
                                                                   76 FR
                                                                    Page
Chapter IV
502.2 Revised......................................................10259
502.3 Revised......................................................10260
502.4 Revised......................................................10260
502.5 Added........................................................10260
502.6 Added........................................................10261
502.13 Added.......................................................10261
502.27 (a)(1) amended..............................................10261
502.61--502.72 (Subpart E) Exhibit No. 1 amended...................10261
502.111 Removed....................................................10261
502.112 Removed....................................................10261
502.114 (c) removed................................................10262
502.118 (a), (b)(1), (2) and (3) removed...........................10262
502.119 Removed....................................................10262
502.131--502.136 (Subpart I) Heading revised.......................10262
502.131 Revised....................................................10262
502.132 Amended....................................................10262
502.133 Amended....................................................10262
502.134 Amended....................................................10262
502.135 Heading, (a) and (b) amended...............................10262
502.136 Amended....................................................10262
502.147 (a) amended................................................10262
502.203 (a)(2) and (3) amended.....................................10262
502.210 (b) amended................................................10262
502.286 Amended....................................................10262
502.305 Revised....................................................10262
502.301--502.305 (Subpart S) Exhibit No. 1 amended.................10262
502.321 Revised....................................................10262

[[Page 323]]

503 Authority citation revised.....................................10263
503.51 (i)(3), (j), (p) and (q) revised............................10263
503.52 Added.......................................................10263
503.53 Introductory text, (a) and (d) revised......................10263
503.54 (b) and (c) revised.........................................10263
503.55 (a) introductory text amended; (c)(1) and (2) added.........10263
503.56 (a) revised.................................................10263
503.57 Revised.....................................................10263
503.58 Revised.....................................................10264
503.59 (f) introductory text, (g)(2), (k), (m), (n), (o), (q)(1), 
        (2), (3), (r) and (s) revised..............................10264
506.4 (d) correctly revised........................................74720
520.13 (e) added...................................................11360
530.5 (c)(2) revised...............................................11680
531.5 (d)(2) revised...............................................11680
532 Added..........................................................11360
532.5 (b) correctly amended; (c) correctly revised.................19707
532.6 Paragraph designations correctly removed; text correctly 
        revised....................................................19707

                                  2012

46 CFR
                                                                   77 FR
                                                                    Page
Chapter IV
501.4 (a) amended; (b) redesignated as (c); new (b) added..........59128
501.5 (a) introductory text and (b) introductory text amended; 
        (a)(2) removed; (a)(3) and (4) redesignated as new (a)(2) 
        and (3); (b)(1) added......................................59129
502.5 (b) amended..................................................61524
502.32 (c) revised.................................................61524
502.61--502.78 (Subpart E) Revised.................................61524
502.62 (a)(3)(iii), (iv), (b)(2)(iii) and (iv) correctly amended 
                                                                   64758
502.201--502.210 (Subpart L) Revised...............................61529
515.21--515.27 (Subpart C) Appendix E revised; eff. 11-23-12.......51938
    Appendix F amended; eff. 11-23-12..............................51939
530.8 (c) revised..................................................13510
531.6 (c) revised..................................................13510
532.5 (b) revised..................................................33972
532.6 Revised......................................................33972
532.7 Revised......................................................33972

                                  2013

46 CFR
                                                                   78 FR
                                                                    Page
Chapter IV
501 Authority citation revised.....................................13277
501.5 (g)(2) revised...............................................13277
501.26 Introductory text amended; (d) added........................13277
502 Authority citation revised.....................................45069
502.21 (b) heading and (c) revised.................................45069
502.23 (a), (c) and (d) revised; (e) added.........................45069
502.25 Revised.....................................................45069
502.26 Amended.....................................................45070
502.27 (a)(2), (b) and (c) revised; (a)(3), (d) and (e) added......45070
502.29 Removed.....................................................45070
502.30 Removed.....................................................45070
502.21--502.32 (Subpart B) Exhibit No. 1 revised...................45070
502.41 Revised.....................................................45070
502.42 Revised.....................................................45071
502.43 Revised.....................................................45071
502.44 Removed.....................................................45071
502.52 (b) revised.................................................45071
502.53 (a) and (b) amended; (c) added..............................45071
502.54 Revised.....................................................45071
502.55 Revised.....................................................45071
502.57 Added.......................................................45071
502.79 Added.......................................................45071
502.145 Removed....................................................45071
502.146 Removed....................................................45071
502.147 Removed....................................................45071
502.148 Removed....................................................45071
502.149 Removed....................................................45071
502.201 (h) amended................................................45071
515.19 Added.......................................................42887
515.24 (b), (c) and (d) revised....................................42888
515.91 Corrected...................................................42888
520.13 (e) revised.................................................42888
532.1 Revised......................................................42888
532.2 Introductory text revised; (g) amended.......................42888
532.7 (b) revised..................................................42889
540.1 (b) amended..................................................13277
540.2 (a) and (i) revised..........................................13278
540.4 Revised......................................................13278
540.5 (a)(1)(i) revised; (c) amended...............................13278
540.6 (a) amended..................................................13278
540.7 Revised......................................................13278
540.8 (a) and (b)(3) revised.......................................13278
540.9 (c), (e), (h), (j) and (k) revised; (l) added................13278
540.1--540.9 (Subpart A) Form FMC-131 removed......................13279

[[Page 324]]

    Form FMC-132A revised..........................................13279
    Form FMC-133A revised..........................................13280
    Appendix A revised.............................................13281

                                  2014

  (Regulations published from January 1, 2014, through October 1, 2014)

46 CFR
                                                                   79 FR
                                                                    Page
Chapter IV
501.5 (c)(1)(iii)(C) removed; (c)(1)(iii)(D), (E) and (F) 
        redesignated as new (c)(1)(iii)(C), (D) and (E); (d)(9) 
        revised....................................................24351
501.23 Revised.....................................................24351
502.301 (b) revised; eff. 11-7-14..................................46715
502.304 (a), (d), (e), (g) and (h) amended; eff. 11-7-14...........46715
502.301--502.305 (Subpart S) Exhibits No. 1 and 2 amended; eff. 
        11-7-14....................................................46715
503 Authority citation revised.....................................24351
503.37--503.42 (Subpart E) Added...................................24351
503.41--503.43 (Subpart E) Redesignated as 503.48--503.50 (Subpart 
        F).........................................................24351
503.48--503.50 (Subpart F) Redesignated from 503.41--503.43 
        (Subpart E)................................................24351
503.51--503.59 (Subpart F) Redesignated as Subpart G...............24351
503.51--503.59 (Subpart G) Redesignated from Subpart F.............24351
503.60--503.69 (Subpart G) Redesignated as Subpart H...............24351
503.60--503.69 (Subpart H) Redesignated from Subpart G.............24351
503.70--503.87 (Subpart H) Redesignated as Subpart I...............24351
503.70--503.87 (Subpart I) Redesignated from Subpart H.............24351
506.4 (d) revised..................................................37663
515.12 (a)(1) amended..............................................42987
    Regulation at 79 FR 42987 eff. date confirmed..................56522
515.16 (b) amended.................................................42987
    Regulation at 79 FR 42987 eff. date confirmed..................56522


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