[Congressional Record Volume 140, Number 126 (Monday, September 12, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: September 12, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
   FEDERAL MARITIME COMMISSION AUTHORIZATION ACT FOR FISCAL YEAR 1995

  Mr. STUDDS. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 4391) to authorize appropriations for the Federal Maritime 
Commission for fiscal year 1995, as amended.
  The Clerk read as follows:

                               H.R. 4391

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Federal Maritime Commission 
     Authorization Act for Fiscal Year 1995''.

     SEC. 2. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated to the Federal 
     Maritime Commission, $18,900,000 for fiscal year 1995.

     SEC. 3. INDEPENDENT ACTION.

        Section 5(b) of the Shipping Act of 1984 (46 U.S.C. App. 
     1704(b)) is amended by striking paragraph (8) and inserting 
     the following:
       ``(8) provide that--
       ``(A) any member of the conference may take independent 
     action on any rate, service item, or level of ocean freight 
     forwarder compensation required to be filed in a tariff under 
     section 8(a) upon not more than 10 calendar days notice to 
     the conference; and
       ``(B) the conference will include the new rate, service 
     item, or level of ocean freight forwarder compensation in its 
     tariff for use by that member, effective no later than 10 
     calendar days after receipt of the notice, and by any other 
     member that notifies the conference that it elects to adopt 
     the independent rate, service item, or level of ocean freight 
     forwarder compensation on or after its effective date, in 
     lieu of the existing conference tariff provision for that 
     rate, service item, or level of ocean freight forwarder 
     compensation.''.

     SEC. 4. PROHIBITION ON DENYING COMPENSATION.

        Section 10(c) of the Shipping Act of 1984 (46 U.S.C. App. 
     1709(c)), is amended by striking paragraph (5) and inserting 
     the following:
       ``(5) deny in the export foreign commerce of the United 
     States compensation to an ocean freight forwarder, or limit 
     that compensation to less than 1.25 percent of the aggregate 
     of all of the rates and charges applicable under the tariff 
     assessed against the cargo on which the forwarding services 
     are provided; or''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Massachusetts [Mr. Studds] will be recognized for 20 minutes, and the 
gentleman from Pennsylvania [Mr. Weldon] will be recognized for 20 
minutes.
  The Chair recognizes the gentleman from Massachusetts [Mr. Studds].
  Mr. STUDDS. Mr. Speaker, I yield myself such time as I may consume.
   Mr. Speaker, the Federal Maritime Commission [FMC] regulates 
international and domestic ocean common carriers to ensure that ocean 
transportation is available to shippers on a fair and nondiscriminatory 
basis and that the practices of ocean common carriers do not adversely 
impact the commerce of the United States. The FMC is also charged with 
protecting the rights of U.S. Shippers and carriers from discriminatory 
foreign shipping policies.
   H.R. 4391 authorizes $18,900,000 for the fiscal year 1995 
expenditures of this Agency. This amount is identical to that 
appropriated last year, and slightly higher than the appropriations 
provided for fiscal year 1995.
  This bill includes the text of H.R. 56, a bill introduced by 
Representative Bentley that corrects an inconsistency in a 1986 statute 
that provided protection to certain freight forwarders. The 
administration supports this change.
  This is a fair bill and I urge the Members' support for it.
  Mr. Speaker, I reserve the balance of my time.
  Mr. WELDON. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in strong support of H.R. 4391 and applaud the 
chairman of our full committee, the gentleman from Massachusetts [Mr. 
Studds], as well as our ranking member, the gentleman from Texas [Mr. 
Fields], who is on his way to the House floor at this very moment. I 
also rise to commend the chairman of the Subcommittee on Merchant 
Marine, the gentleman from Illinois [Mr. Lipinski], and our ranking 
member, the gentleman from Virginia [Mr. Bateman], for their work on 
this piece of legislation.
  Mr. Speaker, this is an important piece of legislation and has the 
full support of our committee. It went through the committee process 
unanimously and enjoys the support of both Republicans, Democrats, and 
the administration.
  Mr. Speaker, I move for expedited approval of this bill. As our 
chairman pointed out, during our committee's deliberations we agreed to 
incorporate into this bill the text of legislation introduced by our 
distinguished colleague, the honorable gentlewoman from Maryland [Mrs. 
Bentley], who has served in a leadership roll in this institution on 
Federal maritime issues. This provision will require that ocean carrier 
conferences equitably treat ocean freight forwarders. It simply expands 
the scope of language in the 1986 Tax Reform Act which provided certain 
benefits to freight forwarders who were also customs brokers. It is 
only fair to provide all freight forwarders these benefits, and not 
limit it to those forwarders who also perform the services of custom 
brokers.
  I was pleased that the leadership in this body as well as the 
administration agreed to accept the language of our colleague, Mrs. 
Bentley, and I am happy to support this bill.
  Mr. Speaker, I urge our colleagues to support passage of this 
legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. STUDDS. Mr. Speaker, I yield 3 minutes to the distinguished 
chairman of the Subcommittee on Merchant Marine, the gentleman from 
Illinois [Mr. Lipinski].
  Mr. LIPINSKI. Mr. Speaker, I thank the chairman for yielding time to 
me.
  Mr. Speaker, I rise today in support of H.R. 4391, the Federal 
Maritime Commission Authorization Act for fiscal year 1995. H.R. 4391 
authorizes the Commission an appropriation of $18,900,000 and will 
provide the Commission with the financial means to fulfill its 
regulatory responsibilities to administer various statutes affecting 
ocean commerce.
  The Commission is charged with enforcing U.S. shipping statutes to 
ensure an equitable trading environment in the ocean transportation 
industry.
  U.S. exports and imports are highly dependent on ocean transportation 
costs and availability, and the Commission plays an indispensable role 
to ensure fair market access for American companies in the global 
transportation marketplace.
  I would like to commend Congresswoman Bentley for her efforts to 
secure a provision in H.R. 4391 that would guarantee freight forwarders 
a minimum rate of compensation. This provision is of vital importance 
to the mom and pop businesses which are the backbone of our Nation's 
shipping industry.
  I would also like to thank Chairman Studds, Mr. Fields, and Mr. 
Bateman for their leadership, and I urge adoption of this important 
legislation.
  Mr. WELDON. Mr. Speaker, I yield such time as he may consume to the 
distinguished ranking member of the Committee on Merchant Marine and 
Fisheries, our good friend and colleague the distinguished gentleman 
from Texas [Mr. Fields], who just arrived from the airport from his 
home in Texas.
  (Mr. FIELDS of Texas asked and was given permission to revise and 
extend his remarks.)

                              {time}  1220

  Mr. FIELDS of Texas. Mr. Speaker, I rise in support of H.R. 4391, 
legislation authorizing appropriations for the Federal Maritime 
Commission [FMC] for fiscal year 1995.
  The administration's request for the FMC was for $18,700,000, which 
was $200,000 less than the agency received last year. Based on 
testimony given to the Committee on Merchant Marine and Fisheries, it 
has been determined that this funding level was not sufficient to cover 
all of the FMC's necessary expenses. When H.R. 4391 was introduced by 
our committee leadership, the funding level was set at $18,900,000 
which represents level funding from last year.
  While this legislation represents a modest $200,000 increase over the 
administration's request, as the Chairman of the FMC, the Honorable 
Bill Hathaway testified, without this increase the agency simply would 
not have enough funds to even cover the salaries of their approved 
personnel.
  Mr. Speaker, the programs carried out by this independent agency are 
critical to the long-term future of the U.S.-flag liner industry and we 
should provide them with sufficient resources to do their job.
  During our committee's deliberations, we agreed to incorporate into 
this bill the text of legislation introduced by our distinguished 
colleague from Maryland, the Honorable Helen Bentley. This provision 
would require that ocean carrier conferences equitably treat ocean 
freight forwarders. It simply expands the scope of language in the 1986 
Tax Reform Act, which provided certain benefits to freight forwarders 
who were also customs brokers. It is only fair to provide all freight 
forwarders these benefits, and not limit it to just those forwarders 
who also perform the services of customs brokers. I am pleased to 
support this language and compliment Congresswoman Bentley for her 
outstanding leadership in bringing this issue to our attention.
  Mr. Speaker, this is a good bill and I urge the Members of this body 
to join Chairman Studds and myself in supporting this legislation.
  Mrs. BENTLEY. Mr. Speaker, I rise in strong support of H.R. 4391, the 
Federal Maritime Commission authorization for fiscal year 1995.
  The FMC, an agency I once chaired, is responsible for the regulation 
of waterborne foreign and domestic offshore commerce of the United 
States and the assurance that the United States international trade is 
open to all nations on fair and equable terms. The FMC is an agency too 
important not to have its authorization bill enacted by the Congress.
  Mr. Speaker, this year's FMC authorization legislation is especially 
important because it contains language of tremendous value to freight 
forwarders and customs brokers throughout our country. Specifically, 
H.R. 4391 contains the text of H.R. 56, a bill I introduced designed to 
extend the 1986 forwarder compensation law to all ocean freight 
forwarders--action which should have been done years ago.
  Mr. Speaker, as you know, freight forwarders form an indispensable 
link between shippers and carriers in the movement of international 
cargo. Ocean freight forwarders are the people who arrange the space on 
ocean carriers for U.S. exports. It is a good analogy to say that 
freight forwarders are to cargo what travel agents are to people. They 
are, by and large, totally American small businesses, and like travel 
agents, are located in virtually every commercial center throughout our 
country.
  Mr. Speaker, back in 1986 Congress passed a critical independent 
action amendment to the Tax Reform Act, essentially to protect U.S. 
freight forwarders against unfair practices by steamship conferences, 
which were granted antitrust immunity in the Shipping Act of 1984. The 
1986 amendment established a minimum rate which the steamship 
conferences acting in concert must pay U.S. freight forwarders, and it 
permits individual steamship lines to negotiate compensation with 
freight forwarders.
  The independent action provision in the Tax Reform Act was an 
important first step in protecting hundreds of freight forwarding 
companies and thousands of their employees throughout the United States 
and in establishing a more competitive climate in the export trade 
arena.
  Nevertheless, the wording of the independent action provision limits 
its application to freight forwarders who are also customs brokers. 
This provision, which discriminates against freight forwarders who are 
not custom brokers--and runs contrary to common sense--was enacted due 
to the jurisdictional lines of the committee involved in passage of the 
measure in 1986.
  Therefore, Mr. Speaker, with the passage of the legislation we will 
be able to correct this discrepancy in the 1986 tax reform bill by 
placing all ocean freight forwarders on equal footing with respect to 
the receipt of compensation from ocean common carriers. My amendment 
provides a more consistent regulatory approach and could serve to 
eliminate any inequities caused by the current law.
  There is no reason not to include all freight forwarders irrespective 
of whether they are customs brokers. H.R. 56 is noncontroversial 
legislation, supported by current FMC Chairman William Hathaway that 
should have been adopted by Congress back in 1986.
  In closing, Mr. Speaker, I would like to take a moment to thank the 
Merchant Marine and Fisheries Committee leadership, especially Chairman 
Studds, Subcommittee Chairman Lipinski, Mr. Fields, and Mr. Bateman for 
their critical assistance in enabling H.R. 56 to pass the House this 
year, my last year in the Congress. I would also like to thank our hard 
working and very capable committee staff on both sides of the aisle.
  Mr. Speaker, I again urge quick adoption of this important 
legislation.
  Mr. WELDON. Mr. Speaker, I urge passage of this legislation.
  Mr. Speaker, I have no further requests for time, and I yield back 
the balance of my time.
  Mr. STUDDS. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Montgomery). The question is on the 
motion offered by the gentleman from Massachusetts [Mr. Studds] that 
the House suspend the rules and pass the bill, H.R. 4391, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  The title of the bill was amended so as to read: ``A bill to 
authorize appropriations for the Federal Maritime Commission for fiscal 
year 1995, and to amend the Shipping Act of 1984 to require that 
conference agreements authorize members of conferences to take certain 
independent actions and to prohibit conferences and groups of common 
carriers from denying or limiting in export foreign commerce 
compensation to ocean freight forwarders.''.
  A motion to reconsider was laid on the table.

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