[Senate Report 105-61]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 144
105th Congress                                                   Report
                                 SENATE

 1st Session                                                     105-61
_______________________________________________________________________


 
                       OCEAN SHIPPING REFORM ACT

                                _______
                                

                              R E P O R T

                                 of the

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                 S. 414





                 July 31, 1997.--Ordered to be printed


       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                       ONE HUNDRED FIFTH CONGRESS
                             FIRST SESSION
                     JOHN McCAIN, Arizona, Chairman
TED STEVENS, Alaska                  ERNEST F. HOLLINGS, South Carolina
CONRAD BURNS, Montana                DANIEL K. INOUYE, Hawaii
SLADE GORTON, Washington             WENDELL H. FORD, Kentucky
TRENT LOTT, Mississippi              JOHN D. ROCKEFELLER IV, West 
KAY BAILEY HUTCHISON, Texas              Virginia
OLYMPIA SNOWE, Maine                 JOHN F. KERRY, Massachusetts
JOHN ASHCROFT, Missouri              JOHN B. BREAUX, Louisiana
BILL FRIST, Tennessee                RICHARD H. BRYAN, Nevada
SPENCER ABRAHAM, Michigan            BYRON L. DORGAN, North Dakota
SAM BROWNBACK, Kansas                RON WYDEN, Oregon
                       John Raidt, Staff Director
     Ivan A. Schlager, Democratic Chief Counsel and Staff Director


                                                       Calendar No. 144
105th Congress                                                   Report
                                 SENATE

 1st Session                                                     105-61
_______________________________________________________________________


                       OCEAN SHIPPING REFORM ACT

                                _______
                                

                 July 31, 1997.--Ordered to be printed

_______________________________________________________________________


       Mr. McCain, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 414]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 414) ``A Bill to amend the 
Shipping Act of 1984 to encourage competition in international 
shipping and growth of United States imports and exports, and 
for other purposes'', having considered the same, reports 
favorably thereon with an amendment in the nature of a 
substitute and recommends that the bill (as amended) do pass.

                          Purpose of the Bill

  S. 414, the Ocean Shipping Reform Bill of 1997, would amend 
the Shipping Act of 1984 (46 U.S.C. App. 1701 et seq.), and 
other related U.S. shipping laws to encourage competition in 
international shipping, growth in United States exports, and 
the increased use of United States ports for international 
trade, and for other purposes.

                          BACKGROUND AND NEEDS

  Ocean liner shipping is an international industry involving 
trade between sovereign nations, and the industry is subject to 
multinational regulation. The international nature of the 
industry has been characterized by chronic conditions of 
carrier overcapacity. The primary cause of liner shipping 
overcapacity is the presence of international policies designed 
to promote national-flag carriers and also to ensure strong 
shipbuilding capacity in the interests of national security and 
employment. These policies include subsidies to purchase ships 
and operate ships, tax advantages to lower costs, cargo 
reservation schemes, and national control of shipyards and 
shipping companies and have resulted in an industry which is 
not completely driven by economic objectives.
  Expansion of the liner shipping industry has increased every 
year since the utilization of containerization in the late 
1960's, and in the 1990's, container port handling has risen at 
nearly 10% per annum. According to a Drewry shipping report on 
Global Container Markets--Prospect and Profitability in a High 
Growth Era (1996): ``Global ocean and intermodal container 
freight revenue is around $80-90 billion per annum, and while 
this is rising annually with the expansion of world container 
trade, unit revenues are, and have been consistently falling. 
For instance, in the transpacific trade, average unit revenues 
were 60% less in real terms in 1994 than in 1976. The 
transatlantic market presents a broadly similar picture, and 
average westbound earnings in 1994 (post-Trans-Atlantic 
Agreement and Trans-Atlantic Conference Agreement rate 
restoration) were just 46% of 1978's level in real terms, 
having reached as low as 35% at the bottom of the market in 
1992.'' The primary causes for reductions in unit revenues per 
box, in real terms, continue to be overcapacity and gains in 
productivity inherent in intermodal containerization.
  Historically, ocean shipping liner companies attempted to 
combat the ocean shipping overcapacity that had developed into 
``rate wars'' by establishing shipping conferences to 
coordinate their practices and pricing policies. The first 
shipping conference was established in 1875, but it was not 
until 1916 that the Federal government reviewed the conference 
system. The Alexander Committee (named after the then-Chairman 
of the House Committee on Merchant Marine and Fisheries) 
recommended continuing the conference system in order to avoid 
ruinous ``rate wars'' and trade instability, but also 
determined that conference practices should be regulated to 
ensure that they did not adversely impact shippers. All other 
maritime nations allow shipping conferences to exist with 
immunity from the application of antitrust or competition laws.
  U.S. regulation of the international ocean shipping industry 
began with the Shipping Act, 1916 (1916 Act). The 1916 Act 
provided conferences with immunity from U.S. antitrust laws, 
imposed certain requirements on conferences (such as free entry 
and exit of their members, or more commonly known as open 
conference requirements), and prohibited discriminatory rates 
or services. The 1916 Act also created a separate government 
agency, the United States Shipping Board, to enforce the 1916 
Act.
  In 1961, Congress amended the 1916 Act to address certain 
concerns about anticompetitive conduct by ocean carrier 
conferences. The 1961 Amendments mandated tariff filing, 
introduced a limited form of independent action, and 
established an independent agency, the Federal Maritime 
Commission (FMC), to regulate ocean shipping practices. Prior 
to the creation of the FMC, ocean shipping regulation was 
performed by the Federal Maritime Board as part of the 
Department of Commerce. The 1961 Amendments authorized the FMC 
to apply a public interest standard to the agency's review of 
ocean carrier agreements, strengthened the FMC's powers to 
investigate and punish ocean carrier transgressions, and 
authorized it to disapprove rates that were determined to be 
detrimental to the commerce of the United States.
    After enactment of the 1961 Amendments, ocean carriers 
complained about delays in the FMC agreement approval process. 
The 1961 Amendments strengthened the agreement review process 
to incorporate public interest standards, and the injection of 
antitrust considerations after the Supreme Court decision in 
Federal Maritime Commission v. Aktiebolaget Svenska America 
Linien, 390 U.S. 238 (1968), severely delayed consideration and 
approval of carrier agreements.
    The advances in ocean shipping productivity were dramatic 
in the 1960's and 1970's, but the general worldwide recession 
in the early 1970's tightened the need for shipping services. 
Foreign carriers crowded into the U.S. trades where the U.S. 
policy requiring conferences to be open guaranteed that they 
would be entitled to conference cargoes. Uncertainty as to the 
legality of ocean shipping agreements that contained land-side 
intermodal agreements, widespread illegal practices brought 
about by competitive pressures, and delays in approval for 
agreements that increased productivity by allowing and 
facilitating intermodal containerization, led to the call for 
reform of the 1916 Act.
    Congress considered ocean shipping regulation throughout 
the 97th and 98th Congress, culminating in the enactment of the 
Shipping Act of 1984 (1984 Act). The 1984 Act overhauled the 
ocean carrier agreement review process, allowed greater 
flexibility in the type of discount-rate and contracts that 
could be offered by ocean carriers, recognized the increasing 
role of non-vessel-operating common carriers (NVOCCs) and 
shippers' associations in facilitating intermodal ocean 
transportation, and expanded the right of independent action to 
conference tariffs. While the 1984 Act allowed greater 
discrimination for service contracts than tariffs, it 
essentially preserved common carriage requirements for both 
types of transactions, and similarly situated shippers were 
afforded identical contract rights.
    The 1984 Act also established an Advisory Commission on 
Conferences in Ocean Shipping (the Advisory Commission), 
effective five and one-half years after the date of enactment, 
to study the ocean shipping regulatory system and recommend 
changes to that system. The Advisory Commission report, 
submitted in April 1992, produced no consensus within either 
the Advisory Commission or the industry on recommended changes 
to the 1984 Act. The Advisory Commission report, however, 
identified several concerns of individual industry segments 
with certain aspects of the regulatory system:
    Ocean carrier conferences: Many shippers expressed concern 
that conferences were able to wield excessive power to prevent 
competition under the 1984 Act. This concern was based on the 
FMC's limited ability to challenge anticompetitive ocean 
carrier agreements under section 6(g) of the 1984 Act, the 
increasing market share of conferences in most trade lanes, the 
use of trade stabilization agreements between conferences and 
non-conference ocean carriers, conference use of public tariff 
and service contract information and the independent action 10-
day waiting period to restrict competition among conference 
carriers, and the absence of a mandatory right of independent 
action by conference carriers for service contracts. Ocean 
carriers contended that an unrestricted market wouldresult in a 
highly destructive market, and rapidly devolve into a market oligopoly.
  Publication of tariff and service contract rates and terms: 
Many shippers, especially large volume shippers, expressed 
concern that the transparency of the U.S. system disadvantages 
U.S. shippers with respect to their foreign competitors in 
third markets. In general, foreign nations have not required 
transparency of rates or services, and their shippers' rates 
are not publicly accessible. Larger shippers also objected to 
the requirement that similarly situated shippers be allowed to 
access identical service contract rights, contending that it 
reduced their ability to negotiate competitive advantages, 
while smaller shippers contended that this right helped to 
counter competitive advantages. Many shippers also objected to 
conference provisions that restricted their rights to negotiate 
directly with individual conference carriers.
  Shippers' associations, NVOCCs, and freight forwarders: Many 
shippers' associations and NVOCCs expressed concerns that 
conferences were not negotiating with them in good faith. Many 
freight forwarders wanted to increase the mandatory floor for 
freight forwarder compensation, which is only applicable to 
freight forwarders that are also customs brokers, to include 
those forwarders who do not also perform customs brokerage. 
These entities generally supported the 1984 Act's transparency 
and common carriage requirements, although some NVOCCs 
generally wanted relief from tariff filing requirements. Many 
NVOCCs also wanted the right to enter into service contracts 
with shippers as carriers to help them compete with ocean 
carriers. Smaller shippers also expressed concerns that 
reductions in contract transparency could facilitate carrier 
abuse of collective business authority, and would also ensure 
the benefit of larger shippers at the expense of smaller 
shippers.
  Subsequent to the Advisory Commission report, Committee 
hearings and discussions with industry representatives have 
produced similar views as expressed in the report. One 
significant exception is the recent support of U.S. ocean 
carriers for relief from common carriage principles with 
respect to service contracts, including confidentiality of 
service contract terms. Since the Advisory Commission report, 
ocean carrier relationships have become increasingly 
diversified. As the need for intermodal shipping services 
becomes increasingly global, ocean carriers increasingly rely 
on complex partnerships with other ocean carriers to coordinate 
assets and services to meet this global requirement. These 
ocean carrier partnerships involve smaller carrier groups and 
more comprehensive coordination of intermodal and ocean 
shipping assets than typical conference activities, which are 
focused more on rate stability. Many U.S. ocean carriers 
participate in collective shipping arrangements and believe 
that these arrangements would produce maximum efficiency if 
carriers were allowed to engage in joint contracts for service. 
Shipper needs for global shipping alternatives will continue, 
and carrier flexibility to engage in tailored carrier-shipper 
contracts will increase.
  While developing the reported bill, the Committee conducted 
two hearings and more than 100 meetings with affected industry 
and Federal agency representatives, spent in excess of 300 
hours in discussion with these representatives, and developed a 
comprehensive understanding of the concerns of all of these 
affected parties. Attempts to balance the interests of all 
affected parties were difficult given the competing interests. 
Additionally, the Committee bill attempted to balance the need 
to deregulate the industry with the need to provide oversight 
of industry practices, given the immunity from the antitrust 
laws. The reported bill attempts to compromise the positions 
and interests of those who support complete deregulation of 
ocean shipping and those who support the status quo.

                          Legislative History

  On February 2, 1995, the House of Representatives Committee 
on Transportation and Infrastructure Subcommittee on Coast 
Guard and Maritime Transportation held a hearing on 
international ocean shipping. On August 1, 1995, Congressman 
Shuster, Chairman of the House Transportation and 
Infrastructure Committee introduced H.R. 2149, the Ocean 
Shipping Reform Act of 1995, with Congressmen Mineta, Coble, 
Traficant, and Oberstar as cosponsors. On August 2, 1995, the 
House Transportation and Infrastructure Committee ordered H.R. 
2149 reported by voice vote.
  On October 23, 1995, Senator Pressler, Chairman of this 
Committee, introduced S. 1356, the Ocean Shipping Reform Act of 
1995, which was a companion bill to H.R. 2149, as reported. On 
November 1, 1995, the Committee held a hearing on S. 1356. 
Because of concerns about lack of oversight of carrier 
practices immune from the antitrust laws, the Committee worked 
to develop a compromise that would ensure a higher degree of 
review of carrier-shipper practices. Senator Pressler published 
amendments to S. 1356 in the Congressional Record on July 18, 
1996 and September 30, 1996 for public comment. The Senate 
Commerce Committee took no further action on ocean shipping 
regulation in the 104th Congress.
  On March 10, 1997, Senator Hutchison, Chairman of the 
Committee's Subcommittee on Surface Transportation and Merchant 
Marine, introduced S. 414. The bill was cosponsored by Senators 
Lott, Breaux, and Gorton. This bill included minor changes to 
the amendment to S. 1356 published on September 30, 1996. The 
Subcommittee held a hearing on S. 414 on March 20, 1997 (see 
Senate document S. Hrg. 105-57 for a record of the hearing). On 
May 1, 1997, the Committee considered and adopted an amendment 
in the nature of a substitute for S. 414 offered by Senator 
Hutchison, cosponsored by Senators Lott, Breaux, and Gorton. 
The Committee also adopted an amendment offered by Senator 
McCain that would prohibit ocean carriers that had violated 
certain U.S. shipping laws within the previous five years from 
receiving a shipbuilding loan guarantee under title XI of the 
Merchant Marine Act, 1936. The amended bill was ordered 
reported by the Committee.

                      Summary of Major Provisions

  As reported, S. 414 would, for ocean liner shipping through 
U.S. ports:
          1. Provide shippers and common carriers greater 
        choice and flexibility in entering into contractual 
        relationships with shippers for ocean transportation 
        and intermodal services. The most significant 
        improvement is the right of members of ocean carrier 
        agreements to negotiate and enter into service 
        contracts with one or more shippers independent of the 
        agreement.
          2. Reduce the expense of the tariff filing system and 
        privatize the function of publishing tariff information 
        while maintaining current tariff enforcement and common 
        carriage principles with regard to tariff shipments.
          3. Protect U.S. exporters from disclosure to their 
        foreign competitors of their contractual relationships 
        with common carriers and proprietary business 
        information, including targeted markets.
          4. Specifically exempt new assembled motor vehicles 
        from tariff and service contract requirements and 
        provide the FMC with greater flexibility to grant 
        general exemptions from provisions of the 1984 Act.
          5. Reform the licensing and bonding requirements for 
        ocean freight forwarders and NVOCCs and consolidate the 
        definitions of those two entities under the term 
        ``ocean transportation intermediary.''
          6. Strengthen the provisions of the 1984 Act, the 
        Foreign Shipping Practices Act of 1988, and section 19 
        of the Merchant Marine Act, 1920, that prohibit unfair 
        foreign shipping practices to provide greater 
        protection from certain discriminatory actions.
          7. Provide for an orderly transition to this more 
        deregulated ocean shipping environment.
          8. Transfer the functions of the FMC to the Surface 
        Transportation Board (STB), rename the STB as the 
        Intermodal Transportation Board (ITB), and make 
        appropriate changes in the qualifications of ITB 
        members.

                            Estimated Costs

  In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate prepared by the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 13, 1997.
Hon. John McCain,
Chairman, Committee on Commerce, Science, and Transportation, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 414, the Ocean 
Shipping Reform Act of 1997.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Deborah 
Reis (for the federal costs); Karen McVey (for the state and 
local impact); and Lesley Frymier (for the private-sector 
impact).
            Sincerely,
                                          Paul Van de Water
                                   For June E. O'Neill, (Director).
    Enclosure.

               congressional budget office cost estimate

S. 414--Ocean Shipping Reform Act of 1997

    Summary: S. 414 would amend the Shipping Act of 1984 and 
other laws that govern the regulation of ocean shipping by the 
Federal Maritime Commission (FMC). The bill would authorize the 
appropriation of $15 million for the FMC for fiscal year 1998 
while also providing for the subsequent termination of the 
agency and transfer of its responsibilities to the Surface 
Transportation Board (STB). Finally, the bill would extend 
eligibility for certain veterans' death benefits to cover 
merchant mariners who served between August 16, 1945, and 
December 31, 1946.
    Assuming appropriation of the authorized amount, CBO 
estimates that the FMC would spend $15 million in 1998 to carry 
out routine duties as well as one-time activities to implement 
this legislation. Enacting the bill also would increase direct 
spending by between $0.2 million and $0.4 million annually. 
Finally, enacting S. 414 would increase federal revenues by 
about $1 million in 1998 and decrease revenues by roughly the 
same amount in each of the following years. Because the bill 
would affect direct spending and receipts (revenues), pay-as-
you-go procedures apply.
    S. 414 contains several provisions that would either 
eliminate existing requirements on the private sector or impose 
new private-sector mandates as defined in the Unfunded Mandates 
Reform Act of 1995 (UMRA). S. 414 contains no intergovernmental 
mandates as defined in UMRA and would have no significant 
impact on state, local, or tribal governments.
    Estimated cost to the Federal Government: CBO estimates 
that enacting S. 414 would increase discretionary spending in 
1998 by $1 million over the current year's funding level, 
assuming appropriation of the authorized amount. In addition, 
the bill would affect both revenues and direct spending each 
year. These budgetary effects are summarized in the following 
table.

                                    [By fiscal years, in millions of dollars]                                   
----------------------------------------------------------------------------------------------------------------
                                                   1997       1998       1999       2000       2001       2002  
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION                                       
                                                                                                                
FMC Spending Under Current Law:                                                                                 
    Budget Authority\1\.......................         14          0          0          0          0          0
    Estimated Outlays.........................         14          1          0          0          0          0
Proposed Changes:                                                                                               
    Authorization Level.......................          0         15          0          0          0          0
    Estimated Outlays.........................          0         14          1          0          0          0
FMC Spending Under S. 414:                                                                                      
    Authorization Level \1\...................         14         15          0          0          0          0
    Estimated Outlays.........................         14         15          1          0          0          0
                                                                                                                
                                     CHANGES IN DIRECT SPENDING AND REVENUES                                    
                                                                                                                
Direct Spending:                                                                                                
    Estimated Budget Authority................          0      (\2\)      (\2\)      (\2\)      (\2\)      (\2\)
    Estimated Outlays.........................          0      (\2\)      (\2\)      (\2\)      (\2\)      (\2\)
Revenues:                                                                                                       
    Estimated Revenues........................          0          1         -1         -1         -1         -1
----------------------------------------------------------------------------------------------------------------
\1\ The 1997 level is the amount appropriated for that year.                                                    
\2\ Less than $500,000.                                                                                         

    The costs of this legislation fall within budget function 
400 (transportation).
    Basis of estimate: For purposes of this estimate, CBO 
assumes that S. 414 will be enacted by the end of fiscal year 
1997 and that all provisions will become effective at that time 
or as stated in the bill.We also assume that the entire amount 
authorized will be appropriated by the beginning of fiscal year 1998. 
Outlays for discretionary activities are estimated on the basis of 
historical spending patterns for the FMC. Estimates of discretionary 
costs, changes in federal revenues, and direct spending effects are 
based on information provided by the FMC, the U.S. Coast Guard, and the 
Office of Management and Budget.

Spending subject to appropriation

    S. 414 would authorize the appropriation of $15 million for 
the FMC for fiscal year 1998. Assuming appropriation of the 
entire amount authorized, CBO estimates that the FMC would 
spend most of the increase on one-time activities to implement 
Titles I and II of the bill.
    Title I would make significant changes in how the FMC 
regulates ocean shipping, particularly common carrier rates, 
and terms and conditions for services provided under tariff 
and/or contract. This title would amend the 1984 act to 
eliminate the existing requirement that ocean common carriers 
and conferences file their tariffs with the FMC. Common 
carriers and conferences (associations of carriers) would still 
have to make tariffs available electronically to the public for 
reasonable fees (or to federal agencies at no charge), but the 
tariffs would not require FMC approval before they become 
effective. Common carriers (of any type or combination) would 
still have to file all service contracts with the FMC and 
publish an abstract of the contract's essential terms, but they 
would no longer have to disclose rate information publicly. The 
FMC would still have to acquire and review published tariffs 
and suspend or prohibit the use of those found to violate 
federal shipping laws.
    Title I would repeal 46 app. United States Code 1707a, 
which requires the FMC to collect and disseminate to the public 
all tariffs and other information through an automated tariff 
filing and information system (ATFI). The FMC would still be 
charged with ensuring the accessibility and accuracy of all 
private automated systems used to provide tariff information to 
the public. Other provisions of Title I would strengthen 
regulations on controlled carriers (which are common carriers 
owned or otherwise controlled by foreign governments) and would 
change licensing and financial security requirements imposed on 
non-vessel-operating common carriers (NVOCCs) to be more 
consistent with those on ocean freight forwarders (OFFs).
    Title II of the bill would terminate the FMC and transfer 
all of the agency's functions and responsibilities to the STB, 
which would be renamed the Intermodal Transportation Board 
(ITB). These provisions of Title II would be effective on 
January 1, 1999.
    Of the $15 million authorized, we estimate that the FMC 
would incur one-time costs of about $1 million in 1998 to 
implement the changes made by Titles I and II. The agency would 
use some of this money for rulemaking proceedings. For example, 
the agency would have to promulgate regulations to implement 
the tariff filing changes made by section 106, including new 
guidelines on electronic tariff systems. Also, the termination 
of ATFI could result in costs of up to $0.2 million to relocate 
computer equipment owned by the FMC but located on a 
contractor's premises. Finally, the balance would be spent on 
activities associated with the agency's termination and the 
transfer of regulatory responsibilities to the ITB. One-time 
spending for these purposes would include minor rulemaking 
costs and severance payments to former employees. We expect 
that any reduction in personnel levels would be small, and that 
severance costs would therefore be minimal.
    After the two regulatory bodies have merged, ongoing costs 
to carry out the new board's responsibilities would be about 
the same as those incurred by the FMC and the STB under current 
law. In addition to reviewing tariffs for potential violations 
of the law, the government would continue to undertake its 
other regulatory responsibilities, such as investigating 
complaints against carriers and others, overseeing conference 
agreements and activities, and taking actions against those who 
engage in prohibited acts.

Direct spending

    Under Title IV, merchant mariners who served between August 
16, 1945, and December 31, 1946, would be eligible for 
veterans' burial and funeral benefits. CBO estimates that these 
provisions would increase direct spending by $0.2 million in 
fiscal year 1998 and by gradually increasing amounts in 
subsequent years, up to $0.4 million annually by 2001.
    CBO estimates that, to carry out Title IV, the Coast Guard 
would incur administrative costs of about $1.5 million in 1998 
and $1 million in the following year. The increased spending in 
both years would be offset by fee collections provided for in 
the bill. Also beginning in 1998, the federal government would 
pay about $0.2 million in additional death benefits (including 
flags, headstones, burial allowances) to eligible seamen. This 
amount would grow to about $0.4 million annually by 2001.

Revenues

    Several provisions of S. 414 would affect federal revenues. 
The most significant of these are sections 106 and 107, which 
would free carriers and conferences from having to file tariffs 
with the FMC and would terminate the agency's responsibility to 
make tariff information available electronically. As a result 
of these provisions, the Treasury would lose nearly all of the 
$0.8 million it collects annually from tariff filing fees, 
remote access charges, and sales of ATFI tapes. Such losses 
would be partially offset by increased collections of license 
application fees resulting from section 117, which would 
require NVOCCs to obtain licenses as ocean transportation 
intermediaries. We estimate that such revenues would be about 
$1.4 million in 1998 for initial applications and about $0.2 
million annually thereafter for new applications and license 
amendments. Finally, the penalty provisions in section 113 also 
could result in additional revenues, but these are likely to be 
minimal. As shown in the preceding table, the net effect of all 
changes in federal revenues would be an increase of about $1 
million in 1998 and a loss of a similar amount each year 
thereafter.
    Pay-as-you-go considerations: Section 252 of the Balanced 
Budget and Emergency Deficit Control Act of 1985 sets up pay-
as-you-go procedures for legislation affecting direct spending 
or receipts through 1998. CBO estimates that S. 414 would have 
no significant effect on direct spending in fiscal year 1998 
and would increase receipts in 1998 by about $1 million.
    Estimated impact on State, local, and tribal governments: 
S. 414 contains no intergovernmental mandates as defined in 
UMRA. Title I of the bill would relieve operators of marine 
terminals, some of which are state or local governmental 
entitles, of two administrative requirements and provide them 
new legal protection in certain rate-setting actions. Based on 
information from operators of public marine terminals and 
ports, CBO estimates that any savings resulting from these 
provisions would be negligible.
    Enactment of Title IV of the bill could result in 
additional costs for some state, local, and tribal governments 
to the extent that their retirement systems provide credit for 
military service. (For the purposes of certain state retirement 
benefits, this title would result in an extra sixteen months of 
service credit for merchant mariners because some states credit 
such service towards their governmental retirement systems.) 
Based on information from stateretirement officials and the 
National Association of State Retirement Executives, CBO estimates such 
costs would not be significant.
    Estimated impact on the private sector: S. 414 would 
eliminate existing mandates on common carriers, conferences, 
and marine terminal operators and impose new mandates on common 
carriers and conferences. Based on information provided by 
government and industry sources, CBO estimates that the net 
direct costs of these new mandates would not exceed the 
statutory threshold established in UMRA ($100 million in 1996, 
adjusted annually for inflation) in any year.
    Section 104 would require conferences to prohibit 
agreements that require members to disclose terms of service 
contracts or that restrict member negotiations for service 
contracts. CBO believes that these requirements would weaken 
conferences' control over service contracts. The magnitude of 
the costs to conferences is unclear; however, any costs 
associated with these requirements would most likely be offset 
by benefits to shippers.
    Section 106 would eliminate the existing mandate that 
common carriers and conferences file tariffs with the Federal 
Maritime Commission and replace it with a requirement that they 
make tariffs publicly available, according to regulations that 
would be issued by the FMC. Based on information provided by 
government and industry sources, CBO estimates that the costs 
of the new mandate, in aggregate, would most likely be less 
than or equal to the costs of the existing mandate.
    Section 117 would replace the license requirement for ocean 
freight forwarders (OFFs) with a license requirement for ocean 
transportation intermediaries (OTIs), a new category that would 
include OFFs and non-vessel operating common carriers. Based on 
information provided by government sources, CBO believes that 
the 2000 OFFs that are already licensed (including 300 NVOCCs) 
would not need to be re-licensed. However, approximately 2000 
NVOCCs would have to be licensed. Assuming license fees remain 
at the current level, the total cost to NVOCCs would be $1.4 
million in fiscal year 1998. CBO also estimates a cost to 
NVOCCs of about $200,000 per year in fiscal years 1999-2002 in 
fees for new licenses and amendments to existing licenses.
    To satisfy license requirements, NVOCCs also would be 
required to be bonded at an amount determined by the FMC. 
Currently, OFFs are bonded at $30,000, with an additional 
$10,000 requirement for every branch office. NVOCCs are bonded 
at $50,000. The NVOCC bond requirement would be repealed under 
S. 414. CBO has no basis for predicting the amount of the 
bonding requirement that would be established for OTIs. 
Depending on FMC regulations, bonding requirements could result 
in savings or impose greater costs on OFFs and NVOCCs.
    Other sections of the bill would eliminate current mandates 
for common carriers, conferences, and operators of marine 
terminals.
    Estimate prepared by: Federal Costs: Deborath Reis. Impact 
on State, Local, and Tribal Governments: Karen McVey. Impact on 
the Private Sector: Lesley Frymier.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

    In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported.

                       number of persons covered

    This legislation does not significantly change the scope of 
entities or actions subject to the 1984 Act. The specific 
exclusion from tariff and service contract requirements of new 
assembled automobiles should result in a minor reduction in the 
number of persons subject to these regulations. The enhancement 
of the FMC's general exemption authority may result in further 
reductions in the area.

                            ECONOMIC IMPACT

    The amendments to the 1984 Act are intended to increase 
competition in ocean shipping, which is not expected to have an 
inflationary impact on the Nation's economy.
    Title II of the bill authorizes appropriations of $15 
million for the FMC for fiscal year 1998. This funding level is 
not expected to have an inflationary impact on the Nation's 
economy. This title also transfers the functions of the FMC to 
the STB, which would be renamed the ITB. This consolidation is 
likely to result in minor cost savings to the Federal 
Government.

                                PRIVACY

    This legislation will not have any adverse impact on the 
personal privacy of the individuals affected.

                               PAPERWORK

    This legislation eliminates the filing of ocean shipping 
tariffs with the FMC and encourages the use of privately owned, 
publicly accessible, automated systems for the publication of a 
reduced volume of information. This legislation creates a new 
requirement to license NVOCCs in the United States. This 
legislation should result in no net increase in paperwork 
requirements.

                      Section-by-Section Analysis

Section 1.--Short title

    This section cites the short title of the bill as the 
``Ocean Shipping Reform Act of 1997''.

Section 2.--Effective date

    This section provides that the amendments made by S. 414 
take effect on March 1, 1998, unless otherwise expressly 
provided in S. 414.

            TITLE I--AMENDMENTS TO THE SHIPPING ACT OF 1984

    This title of the bill contains a number of amendments to 
the 1984 Act. Among the provisions considered for amendment was 
section 6(g). Although the reported bill does not change its 
provisions, a discussion of the Committee's evaluation of 
section 6(g) is warranted.
    Although the bill retains the broad statutory language of 
section 6(g) of the 1984 Act, the Committee believes that the 
agency's interpretation and administration of the general 
standard must be revised to meet the dramatic changes that have 
taken place in the ocean liner shipping industry over the last 
decade. In response to those changes, and in keeping with the 
expanded policy goals of the bill, the Committee intends that 
this report shall guide the agency, and its successor, in the 
future exercise of its section 6(g) agreement review authority.
    In doing so, the Committee wishes to point out that section 
6(g) itself is not changed by the bill. This section continues 
the policy of removing any per se condemnation of concerted 
action as may be applied under antitrust laws, and there is no 
vague public interest standard to be applied to such agreements 
as existed before the1984 Act. The 1984 Act continues to place 
the burden of proof on the agency. Ocean carrier agreements should be 
permitted unless the agency demonstrates that they are likely to 
produce unreasonable changes to transportation costs or services 
through reductions in competition.
  Ocean carriers continue to be free to structure their own 
affairs, except when such structure violates specific statutory 
provisions or the section 6(g) standard. Ocean carriers should 
continue to have the benefit of regulatory certainty and prompt 
rulings from the agency. While the agency may continue to weigh 
reasonable and commercially proven alternative arrangements 
that have less anticompetitive impact, there is no intent to 
return to pre-1984 law under which agreement proponents may 
have been compelled to show that no less anticompetitive 
alternative was available to obtain the benefits of the 1916 
Act.
  Changes in competitive conditions in the shipping industry.--
Since the passage of the 1984 Act, the FMC has taken a narrow 
and restrictive view of its section 6(g) authority, based on 
the instructions set forth in the 1984 Act's Conference Report. 
In addressing the analytical approach to be taken in applying 
the general standard for agreement consideration, much of the 
commentary in that report focused on limiting the application 
of section 6(g); on granting proposed agreements any benefit of 
the doubt; and on establishing a heavy burden of proof with 
respect to FMC action. Given the current concerns with 
regulatory delay, unclear authority, and excessive government 
intervention and regulatory costs, that emphasis was not 
without merit. Moreover, at the time the legislation was 
introduced, debated, and passed (1978-1984), substantial 
independent competition existed in the form of new and 
expanding non- conference service. That competition, in 
addition to the new right of independent action on conference 
rates, appeared to limit the potential market power of liner 
conferences.
  Today, however, the traditional distinction between 
conference and independent lines is eroding. Non-conference 
lines regularly cooperate with their conference rivals under 
the authority of so-called voluntary discussion agreements. 
Activities of those agreements have included capacity 
withholding schemes, coordinated general rate increases, 
collective action with respect to add-on charges, credit terms, 
and an assortment of other price-related tariff and contract 
elements. Although the bill includes pro-competitive reforms, 
such as prohibiting conferences from restricting a member's 
contracting authority or issuing mandatory rules with respect 
to contracts, it does not categorically bar carriers from 
reducing competition through trade-wide capacity control, rate 
discussion agreements, and voluntary cooperation on terms and 
procedures of individual contracts. The likelihood that 
carriers will continue to pursue such arrangements and other 
evolving forms of cooperation creates the need for careful 
agency oversight and policing under the general standard.
  Furthermore, the recent trend toward greater operational 
coordination by means of global strategic alliances, and the 
merger-driven carrier consolidations now taking place, strongly 
suggest that international liner shipping is becoming a more 
concentrated industry. The Committee is concerned that trade- 
wide agreements established by the potential oligopoly of mega- 
carriers and global strategic alliances, composed of fewer and 
more homogeneous members than are today's agreements, may 
effectively dominate the major U.S. trade lanes in the near 
future. On the other hand, the Committee also recognizes that, 
because of ocean carrier alliances, there have actually been an 
increase in the number of competitors in some trades (e.g., in 
the North Atlantic), and there may have been fewer mergers than 
would have been the case in the absence of such alliances. 
Since global carriers and carrier alliances likely will have 
diversified their assets and operations across a range of 
trades, thereby reducing their reliance on revenues from any 
single trade, compromise on collective pricing activities could 
be easier and the likelihood of substantially anti-competitive 
activity could well increase. The agency must be prepared and 
able to address and rectify such anti-competitive conditions 
before they take their toll on importers, exporters, and U.S. 
ocean borne trade.
  Administration of section 6(g).--In administering the 1984 
Act, as amended by the bill, the agency must balance a number 
of important and potentially conflicting policies and 
considerations. Foremost of these should be prompt agreement 
review, minimal government intervention, and continued 
flexibility in structuring agreements. In addition, however, 
the agency must remain mindful of many of the broad policies 
that underlay the 1984 Act. For example, the 1984 Act's 
declaration of policy, as amended by the bill, expresses the 
importance of competitive and efficient ocean transportation 
and placing a greater reliance on the marketplace. The need, in 
light of ongoing changes in the industry, to exercise vigilance 
with respect to the potential anti-competitive effects of 
industry concentration and possible reductions in independent 
competition in U.S. trade lanes also remains an important and 
worthwhile goal. In enforcing the 1984 Act, the agency should 
also continue to be mindful of the historical and international 
acceptance of conferences and carrier cooperation; however, 
such factors must be continuously evaluated in the context of 
evolving industry structure and commercial practices.
  Section 6(g) sets forth a three-part test to be employed by 
the agency in assessing agreements. To warrant injunctive 
action, the agency must first find, as a threshold matter, that 
an agreement is likely to result in a ``reduction in 
competition.'' Second, it must show that an agreement, through 
this reduction in competition, is likely to produce either a 
``reduction in transportation service'' or an ``increase in 
transportation cost.'' Third, the agency must determine that 
the likely reduction in transportation service or increase in 
transportation cost is ``unreasonable.''
  As an initial matter, the Committee would point out that the 
word ``likely'' in the statute clearly indicates that the 
agency is expected to act prospectively to block substantially 
anti- competitive carrier plans before they result in adverse 
effects on shippers and foreign trade. The section contemplates 
the use of reasoned projections and forward-looking analyses by 
the agency, based on its substantial industry expertise. It 
appears that the FMC thus far has given the section a 
restrictive reading, suggesting that an injunction cannot be 
won without direct evidence of actual commercial harm suffered 
by shippers as a result of agreement activity. While evidence 
of shipper harm may indeed be relevant in certain cases, a 
blanket requirement for such evidence is not consistent with 
the text of the statute, and would undermine the agency's 
ability to take necessary preventive action. Indeed, the 
Committee directs the agency not to allow the disruption of 
ocean borne commerce while it seeks to quantify such disruption 
for evidentiary purposes.
  In determining whether an agreement is likely to result in a 
reduction in competition, the agency must ascertain whether a 
collective activity or arrangement set forth in an agreement 
would, as a practical matter, reduce the level of competition 
(in terms of rates or range of services), either among 
agreement members or between agreement members and nonmembers. 
Some types of arrangements, such as rate agreements and 
capacity withholding, usually result in a reduction in 
competition, and in fact have the easing of competitive 
pressures as the primary aim. For all types of cooperative or 
rationalization arrangements, the agency must closely examine 
the agreement authorities and the nature of the parties' 
operations to determine whether reduced competition is more 
likely than not. It is not the Committee's intention that the 
agency expend scarce enforcement resources pursuing 
insubstantial or de minimus reductions in competition.
  The second part of the test is the showing of a likely 
``reduction in transportation service'' or ``increase in 
transportation cost.'' Of course, if an agreement is in effect 
and had already produced (or is in the process of producing) 
such a reduction or increase, evidence of this may be relied 
upon by the agency. However, if an agreement is not in effect, 
or is likely to have some future impact, agency action is not 
foreclosed. Given the agency's resources and expertise, it is 
capable of assessing and projecting the likely effects of a 
carrier agreement on transportation costs and service, based on 
an evaluation of factors such as: the nature of the collective 
action contemplated under the agreement; agreement members' 
share of the relevant trades; market concentration; rate levels 
and rate histories; capacity utilization levels, histories, and 
projections; ease of entry or exit; and the existence of other 
overlapping agreements.
  Market share is relevant and is a factor in considering 
whether an agreement is likely to result in a reduction in 
transportation service or increase in transportation cost, and 
whether those changes are likely to be unreasonable, but it is 
only one factor. For example, because S. 414 guarantees a 
member of an agreement with pricing authority the right of 
independently negotiating and contracting with a shipper, the 
aggregated market share of an agreement's members does not by 
itself indicate a cohesive or coordinated contracting approach 
to the market. On the other hand, in an agreement to 
rationalize service and withdraw vessels from service, for 
example, the carrier's market share could be a substantial 
consideration. The agency may use economically reasonable 
projections and forward-looking analysis in determining whether 
an agreement is likely to result in a reduction in service or 
an increase in cost.
  The third prong of the analysis is a determination as to 
whether the likely reduction in service or increase in cost is 
``unreasonable.'' No further definition of reasonableness is 
given in the statute, nor is there case law to serve as a 
guide. However, it is apparent fromthe context that the 
reasonableness requirement entails a balancing of the scope or 
magnitude of the cost increase or service decrease against the likely 
benefits to be derived from the carrier agreement. These benefits may 
include, for example, carriers' ability to improve efficiency, lower 
costs, and increase service options and quality. Other possible 
benefits include development of an economically sound and efficient 
U.S.-flag fleet, the prevention or forestalling of further competition-
reducing concentration in the industry due to carrier mergers, and the 
promotion of comity with our trading partners. Enabling carriers to 
remedy identifiable conditions of rate instability or severe 
overcapacity may also be a potential agreement benefit, to the extent 
that such arrangements are in the long term interests of shippers and 
carriers. This is not to say, however, that all collective efforts by 
carriers to increase rates or revenues or lower costs are deemed to be 
``reasonable'' simply on the grounds that they contribute, in the 
general sense, to industry stability.
  In general, the reasonableness requirement entails comparing 
short term ``apples'' to an array of medium-term and long-term 
``oranges.'' The test requires the weighing of a number of 
difficult-to-quantify costs and benefits to various segments of 
the industry.
  In applying the general standard, the agency must consider 
whether the relevant competitive market includes more than just 
ocean common carriers providing direct service in a trade. The 
Committee intends that the agency consider the impact on 
shippers of an agreement not only in view of competition 
between ocean common carriers providing direct service in a 
trade, but also in view of other competitive means of 
transport. In some cases, alternative liner routings, bulk 
carriers, charter operators, or air freight carriers may 
provide competitive alternatives to the direct service provided 
by ocean common carriers. In considering these alternatives, 
the agency may gather relevant information from shippers, other 
carriers and third parties. Although the agency may use its 
information powers to request market information from the 
proponents of an agreement, such information must be relevant.
  Another aspect of the reasonableness requirement is that the 
negative impact upon shippers may be offset by the benefits of 
an agreement. For example, the competitive harm ensuing from 
conferences, already diminished by the statutory limitations on 
conference activity, may be offset by the significant benefits 
of such activity. Also, the degree to which privately-owned 
ocean common carriers that service U.S. foreign commerce are 
subjected to competition from state-subsidized and controlled 
carriers is another consideration. A conference's ability to 
address problems of overcapacity and rate instability is an 
important benefit that the agency must weigh.
  Another possible benefit to be considered by the agency is 
the impact of an agreement on U.S. foreign policy and 
international comity. The Committee agrees that the United 
States should act with sensitivity to the interests of its 
trading partners when administering shipping regulation.
  Another important potential benefit to be considered is any 
efficiency-creating aspects of an agreement. Agreements 
involving significant carrier integration are, if properly 
limited to achieve such important benefits, to be favorably 
considered by the agency and the courts if these benefits are 
not outweighed by any competitive harm that is likely to result 
from such integration. Joint ventures and other cooperative 
agreements can enable carriers to raise necessary capital, 
attain economies of scale, and rationalize their services.
  The Committee intends that ocean carriers be free to 
structure their own affairs, except when such structuring 
violates specific statutory provisions or the general standard. 
Even when an agreement raises potential issues under the 
general standard, the Committee believes that the procedural 
framework gives carriers sufficient flexibility. Carriers are 
able to obtain a prompt ruling from the agency under the 
provisions for expedited review. If the agency objects to an 
agreement under the general standard, the filing party may 
withdraw it, modify it, or force the agency to make its showing 
in court.
  The Committee would also clarify the range of injunctive 
remedies available from the district court. The court 
evaluating an agreement in a section 6(g) proceeding is not 
limited to the simple binary choice of enjoining or not 
enjoining an agreement in its entirety. As carrier arrangements 
grow increasingly complex and global in scope, a more surgical 
approach is warranted. Thus, upon a request by the agency, or 
upon its own motion, a court may tailor its injunction to bar 
certain agreement authorities or application to particular 
geographic ranges, while leaving other parts of the filed 
agreement intact.
  Finally, the Committee notes that the bill does not adopt the 
FMC's suggestion that the 6(g) standard be incorporated into 
the prohibited acts section of the 1984 Act so that excessively 
anti-competitive agreements could be addressed and acted upon 
directly by the agency. The 1984 Act, as amended by the bill, 
continues to require the agency to seek to enjoin such 
agreements in the federal courts. However, the Committee would 
encourage the agency to allow shippers or others to contribute 
to the process of determining whether an injunction should be 
sought. At present, notices of agreement filings are published 
in the Federal Register and comments of interested parties are 
solicited. The agency could encourage even more participation 
by shippers and others potentially detrimentally affected by 
agreement authority by issuing notices of inquiry or conducting 
hearings on new agreement filings or existing agreements, the 
objective being to more fully apprise the agency of the likely 
or actual impact of the agreement prior to its seeking an 
injunction. These proceedings, however, should be held promptly 
and be of short duration. The Committee is mindful that it may 
be infeasible for intra-agency proceedings to occur before the 
agency goes to court, particularly in instances where time is 
of the essence. But, the Committee does not intend for such 
hearings to be protracted. The protracted hearings conducted 
under the pre-1984 Act regime are not favored under section 
6(g).

Section 101.--Purpose

  This section amends section 2 of the 1984 Act to expand the 
purpose of the 1984 Act to include the promotion of United 
States exports.

Section 102.--Definitions

  This section adds, deletes, and amends several definitions 
described in section 3 of the 1984 Act. The most important of 
these changes are as follows:
  Section 3(8) of the 1984 Act is amended to eliminate a 
loophole through which government owned or controlled ocean 
common carriers avoid controlled carrier restrictions by 
registering their vessels in other nations, including nations 
operating flag of convenience registries.
  Section 3(9) of the 1984 Act is amended to redefine the term 
``deferred rebate'' to apply to refunds of freight money tied 
to agreements to make further shipments with any common 
carrier. Refunds of freight money that are not tied to 
agreements to make further shipments must be made in accordance 
with the applicable tariff or service contract to avoid a 
violation of section 10(b)(2) of the 1984 Act, as amended by 
the reported bill.
  Section 3(10) of the 1984 Act is deleted. The Committee 
considers the term ``fighting ship'' to be obsolete. The 
original definition of a ``fighting ship'' envisioned an 
individual ship that would follow a competitor's ship and offer 
predatory prices to drive the competitor from the trade. In 
today's marketplace, such predatory actions, taken with the 
intent of driving a carrier from the trade, would be attempted 
using multiple ship combinations. The substitute amendment 
would prohibit such predatory behavior under section 10(b) of 
the prohibited acts.
  Section 3(10), as redesignated, of the 1984 Act is amended to 
clarify the definition of ``forest products'' and ensure that 
it reflects current technology developments that have occurred 
since 1984. The 1984 Act specifically states that the list of 
products found in section 3(10), as redesignated, is not 
exclusive, that forest products not specifically described 
therein can qualify for treatment as ``forest products'' under 
the 1984 Act. The Committee recognizes that current and 
emerging technology allows for the development of new products 
which can more efficiently utilize forest resources. The 
Committee intends that such new products be included within the 
``forest products'' definition. Such products include liquid or 
granular by-products derived from pulping and papermaking. Also 
included, for example, is a class generally known as 
``engineered wood products.'' These are structural or panel 
wood products, produced at the mill, glued, or laminated.
  Section 3(13), as redesignated, of the 1984 Act is amended to 
redefine the term ``loyalty contract'' to eliminate the 
application of the term to a contract that commits a fixed 
portion of cargo to a common carrier or an agreement among 
ocean common carriers, but that does not provide for a deferred 
rebate arrangement. Additionally, this change conforms to 
common law definitions which have allowed percentage-based 
contracts and output requirements contracts absent other 
devices that anticompetitively tie shippers and carriers. This 
change was made in response to requests by many shippers who 
simply are not certain of the volume of cargo they can commit 
over a fixed time period due to changing market conditions. 
These shippers believe renegotiating contracts shortly before 
their expiration date in order to increase the originally 
specified volume of cargo to match a greater than anticipated 
productionschedule places them at a disadvantage with respect 
to the common carrier. The Committee understands that ``portion'' 
contracts have been viewed as potentially anticompetitive in an ocean 
transportation market where shippers were limited to dealing with a 
single large conference or a few small independent ocean carriers in 
each trade lane who would require shippers to ship all of their cargo 
for a given commodity or commodities with that carrier or conference. 
Given the changes made by the bill to provide such shippers with a 
competitive market for individual common carrier and multiple ocean 
common carrier service contracts, the Committee believes allowing 
shippers to enter into portion contracts will benefit shippers, not 
harm them. The Committee believes that availability of competitive 
service contracting options and the prohibition against an unreasonable 
refusal to deal or negotiate by one or more common carriers in section 
10(b)(10) of 1984 Act, as redesignated, provides sufficient protection 
for shippers from unreasonable portion contract requirements by common 
carriers.
    Section 3(17), as redesignated, of the 1984 Act 
consolidates the definitions of ``ocean freight forwarder'' and 
``NVOCC'' into a single definition of ``ocean transportation 
intermediary.'' Since the bill would consolidate the licensing 
and bonding requirements for intermediaries under a single 
section, the Committee chose to use a single term throughout 
the 1984 Act, as amended by the bill, to cover both types of 
functions. The bill, as introduced, consolidated the same two 
definitions into the definition of ``ocean freight forwarder.'' 
The Committee understands that ocean transportation 
arrangements are made through a diverse group of 
intermediaries. Some fit the description of either an ocean 
freight forwarder or an NVOCC; some perform both functions for 
different shipments. The Committee also recognizes that some 
countries use the term ``freight forwarder'' to include what 
the 1984 Act defines as NVOCC functions, while many U.S. NVOCCs 
prefer to be identified by that unique U.S. term. The 
substitute amendment changed this overarching term from ``ocean 
freight forwarder'' to ``ocean transportation intermediary'' in 
recognition of the above concerns. The new definition retains 
the terms ``ocean freight forwarder'' and ``NVOCC'' for 
commercial use by those entities who perform those narrow 
functions and prefer to be known by the existing terms for 
commercial business reasons, while providing a single, new term 
to describe entities who provide the wider variety of services.
    Section 3(19), as redesignated, of the 1984 Act redefines 
the term ``service contract'' to provide shippers and common 
carriers with greater flexibility in entering into contractual 
arrangements. First, the new definition allows more than one 
shipper collectively to enter into a service contract. The 
Committee intends that the Department of Justice ``safe-
harbor'' guidelines should apply to the collective activity of 
shippers with respect to a service contract. Second, the new 
definition allows NVOCCs to enter into service contracts as 
common carriers. Some U.S. ocean common carriers have expressed 
concern that this change conflicts with section 2(3) of the 
1984 Act, which states that one of the purposes of the 1984 Act 
is to encourage the development of an economically sound and 
efficient United States-flag liner fleet. The Committee, 
however, believes that this change will provide a more 
competitive ocean transportation system, and which will 
ultimately help smaller shippers who often utilize NVOCCs to 
procure shipping services. The Committee also believes that 
U.S.-flag carriers provide quality service options, which 
should benefit from the increased regulatory flexibility 
provided by the bill. Third, the new definition allows 
agreements among ocean common carriers, in addition to a 
conference, to enter into service contracts. The Committee 
believes this change, coupled with the addition of new section 
5(b)(9) of the 1984 Act, as amended by the bill, will 
substantially increase the competitive options available to 
shippers who wish to enter into service contracts with multiple 
ocean carriers. Recent shipping trends indicate a move away 
from larger carrier conference structure to smaller and more 
integrated alliance agreements. Finally, the new definition 
allows shippers to commit to provide a certain portion of their 
cargo to a common carrier or agreement among ocean common 
carriers in a service contract. The rationale for this change 
is described in the analysis of section 3(13) above. Also, the 
new definition would clarify that a bill of lading or a receipt 
for a particular shipment may not be considered a service 
contract. The amendments to the 1984 Act made by the bill shall 
not affect the provisions of other laws governing the handling 
of, and the accessibility of information contained in, bills of 
lading, receipts, and similar documentation associated with 
shipments of cargo.
    Section 3(21), as redesignated, of the 1984 Act would 
consolidate in a single location in the 1984 Act the 
circumstances in which a person is considered a shipper by the 
1984 Act. The revised definition is intended only to clarify 
the meaning of the term ``shipper,'' as it is defined in the 
1984 Act, and interpreted by the FMC, not to change that 
definition.

Section 103.--Agreements within the scope of the act

    This section amends section 4 of the 1984 Act in two areas:
    First, the bill deletes the reference to NVOCCs in section 
4(a)(5) of the 1984 Act. Section 4(a)(5) of the 1984 Act 
appears to allow agreements between ocean common carriers and 
NVOCCs to be filed in the same manner as ocean carrier 
conference agreements and be provided antitrust immunity. This 
provision is inconsistent with section 8 of the 1984 Act, which 
requires agreements between ocean common carriers and NVOCCs to 
be filed as service contracts subject to the antitrust laws. 
The FMC has decided that the treatment of these agreements 
pursuant to section 8 of the 1984 Act should prevail. The 
Committee agrees and eliminates the conflicting provision in 
section 4.
    Second, the bill amends section 4(b) of the 1984 Act to 
assure that there is no gap in the coverage of agreements among 
marine terminal operators that operate facilities serving both 
the foreign and domestic commerce of the United States. For 
example, many marine terminal operators enter into agreements 
that discuss, fix, or regulate rates or other conditions of 
service that apply at terminals serving carriers that engage in 
both foreign and domestic commerce of the United States. The 
bill provides that such agreements are not removed from the 
scope of the 1984 Act, as amended by the bill, to the extent 
they involve ocean transportation in the domestic commerce of 
the United States, but rather are fully encompassed within the 
1984 Act, as amended by the bill. Also, section 3(14) ofthe 
1984 Act, as amended by the bill, is amended by section 102 of the bill 
to implement this intent by defining a marine terminal operator for the 
purposes of the 1984 Act to include a person that provides wharfage, 
dock, warehouse, or other terminal facilities in connection with a 
common carrier that operates in the foreign and domestic commerce of 
the United States, as well as a carrier that operates in only the 
foreign commerce of the United States.
  Marine terminal operator agreements within the scope of the 
1984 Act, as amended by this section of the bill, and the 
activities conducted pursuant to these agreements, like all 
other agreements under the Act, are exempt from the antitrust 
laws in accordance with section 7 of the 1984 Act.

Section 104.--Agreements

  This section amends section 5 of the 1984 Act in three areas:
  First, section 5(b)(8) of the 1984 is rewritten to shorten 
the notice period for independent action on a conference tariff 
from 10 calendar days to five calendar days and to eliminate a 
provision which some shippers contend could be interpreted to 
prevent independent action on unfiled conference tariffs for 
commodities excepted or exempted from tariff filing by section 
8(a)(1) or 16 of the 1984 Act. The Committee intends that 
conference members have the right of independent action on all 
conference tariffs.
  Second, a new section 5(b)(9) is added to the 1984 Act to 
provide a mandatory right of independent action on service 
contracts for members of all ocean common carrier agreements 
required to be filed under section 5(a), not only members of 
conference agreements. Ocean common carrier agreements would 
be: (1) required to allow their members to take independent 
action on agreement service contracts; (2) required to allow 
their members to negotiate those independent service contracts 
without disclosing to the other parties to the agreement the 
existence of that negotiation or the terms and conditions of a 
resulting service contract, other than those terms required to 
be published by new section 8(c)(3) of the 1984 Act, as amended 
by the bill; (3) prohibited from issuing mandatory rules or 
requirements affecting a member's right to negotiate and enter 
into service contracts; and (4) allowed to issue voluntary 
guidelines relating to the terms and procedures of agreement 
members' service contracts so long as the guidelines do not 
require agreement members to comply with the guidelines. The 
provisions in new section 5(b)(9) of the 1984 Act, as amended 
by the bill, do not extend to the discussion, agreement and 
adoption of voluntary guidelines by agreement members 
concerning their negotiation and use of individual service 
contracts. Thus, nothing in this Act is intended to preclude 
agreement members from promulgating voluntary guidelines 
relating to the terms and procedures of individual service 
contracts, as long as those guidelines make clear that there is 
no penalty associated with the failure of a member to follow 
any such guideline. Conference members may also similarly adopt 
voluntary guidelines for individual tariff matters. The 
adoption of voluntary guidelines by an agreement shall not 
result in an agreement member or agreement members being 
penalized or otherwise disciplined by the agreement for 
choosing to deviate from those guidelines. Amending the 1984 
Act to provide agreement members with the right to contract 
individually is intended to foster intra-agreement competition, 
promote efficiencies, modernize ocean shipping arrangements, 
and encourage individual shippers and carriers to develop 
economic partnerships that better suit their business needs. 
The Committee believes that the right of individual and 
independent service contracts is the most important change made 
by the bill and is intended to develop an efficient and market-
responsive ocean carrier industry.
  Finally, a reference to the Intercoastal Shipping Act, 1933, 
is deleted. The Intercoastal Shipping Act, 1933, was repealed 
by the Interstate Commerce Commission Termination Act of 1995 
(Public Law 104-88).
  The substitute amendment adopted by the Committee made 
several changes to the introduced bill's version of new section 
5(b)(9) of the 1984 Act. The introduced bill applied the 
provisions of this section to conferences, but not to other 
types of ocean common carrier agreements, and limited this 
independent action to individual ocean common carrier service 
contracts. The introduced bill allowed conferences to require 
their members to disclose the existence of these members' 
individual service contracts or negotiations on individual 
service contracts when the conference entered into negotiations 
with the same shipper. The introduced bill also did not require 
that conference voluntary guidelines relating to the terms and 
procedures of conference members' service contracts be filed 
with the FMC. The net effect of the substitute amendment's 
changes to new section 5(b)(9) of the 1984 Act is to provide 
shippers with more options and a more competitive environment 
for negotiating service contracts with one or more ocean common 
carriers.

Section 105.--Exemption from antitrust laws

  This section would amend section 7 of the 1984 Act to conform 
it with other amendments to the 1984 Act made by the bill. 
Under the 1984 Act, loyalty contracts, as currently defined, 
may be employed if in accordance with the antitrust laws and 
the FMC regulates their use. The bill would subject loyalty 
contracts, as redefined by the bill, to antitrust oversight by 
the Department of Justice. The FMC should provide the 
Department of Justice with copies of all loyalty contracts that 
are submitted to the FMC pursuant to section 8(a) of the 1984 
Act.

Section 106.--Tariffs

  This section would amend section 8 of the 1984 Act in several 
areas:
  First, this section would add ``new, assembled motor 
vehicles'' to the list of commodities excepted from tariff and 
service contract publication requirements in section 8(a) of 
the 1984 Act. Most common carriage of automobiles is conducted 
by specialized roll-on, roll-off vessels, usually in very large 
quantity, single shipment lots pursuant to a service contract. 
This type of service more closely resembles unregulated 
contract carriage than common carriage regulated by the 1984 
Act. Common carriers employing this method of shipment have in 
the past petitioned the FMC to exempt them from the publication 
requirements of section 8(c) of the 1984 Act. Common carriage 
requirements are intended to protect shipper interests, and to 
encourage nondiscriminatory shipping practices. Thenew, 
assembled automobile shipper market is very concentrated, it employs 
unique shipping practices, and the Committee believes that common 
carriage requirements are not necessary for this particular market.
  Second, this section would eliminate the requirement in 
section 8(a) of the 1984 Act that common carrier tariffs be 
filed with the FMC. The FMC, or its successor, retains its 
authority pursuant to other sections of the 1984 Act, and other 
U.S. shipping laws, to suspend or prohibit the use of tariffs 
found to violate the 1984 Act, or other U.S. shipping laws. 
Tariffs provide the shipping public with notice as to the price 
and service terms of tendered shipping services. The 1984 Act's 
requirement that common carrier tariffs be kept open to public 
inspection is retained. Instead of using the FMC's Automated 
Tariff Filing and Information System (ATFI) for this purpose, 
the bill would require that common carriers publish their 
tariffs electronically through private systems. Many common 
carriers have already developed electronic information 
publication systems, such as World Wide Web home pages, that 
are more advanced than ATFI and improve these common carriers' 
business processes with their customers. The Committee believes 
that this innovative private sector approach should be 
encouraged and that common carriers should be free to develop 
their own means of electronic publication either individually 
or collectively, including the use of third party information 
providers. This section authorizes the FMC to prescribe 
requirements for the accessibility and accuracy of automated 
tariff systems and review such systems from time to time for 
compliance with the 1984 Act, as amended by the bill. There 
should be no government constraints on the design of a private 
tariff publication system as long as that system assures the 
integrity of the common carrier's tariff and of the tariff 
system as a whole, and the system provides the appropriate 
level of public access to the common carrier's tariff 
information. However, the Committee believes that tariff 
information should be simplified and standardized.
  Third, this section would make extensive changes to section 
8(c) of the 1984 Act concerning service contracts. Consistent 
with the bill's amendment to the definition of ``service 
contract,'' section 8(c)(1) would be amended to allow all 
common carriers, as defined by the 1984 Act, including NVOCCs, 
and ocean common carriers operating under all types of 
agreements, not only conference agreements, to enter into 
service contracts as common carriers with one or more shippers, 
including a shippers' association. Consistent with the bill's 
amendment to the 1984 Act's tariff publication requirements, 
service contracts dealing exclusively with new, assembled motor 
vehicles would no longer be filed with the FMC and service 
contract terms for new, assembled motor vehicles would not be 
required to be published. The FMC shall not accept for filing 
any service contract excepted or exempted by section 8(c)(2) or 
section 16 of the 1984 Act, as amended by the bill. The bill 
would retain the 1984 Act provision providing that the 
exclusive remedy for a breach of a service contract is an 
appropriate court, not the FMC. Parties to a service contract 
may still agree to use a private dispute resolution forum in 
lieu of a court, but in no case may the dispute resolution 
occur in a forum controlled by, or affiliated with, one of the 
parties to the contract. For example, a common carrier that is 
owned and controlled by a government would be prohibited from 
mandating in its service contracts that contract disputes be 
resolved in nationally run arbitration proceedings.
  This section would substantially reduce the scope of service 
contract essential terms that are required to be made public. 
The Committee recognizes that U.S. exporters are engaged in 
competition with foreign-based companies who can offer into the 
world market similar, if not identical, products. Those 
foreign-based companies do not currently publish, or otherwise 
disclose specific terms of the ocean shipping contracts they 
sign with ocean carriers. Currently, many U.S. exporters are 
disadvantaged in the world market because their foreign 
competitors are able to ascertain proprietary business 
information from their published service contract essential 
terms. The Committee seeks to eliminate this competitive 
disadvantage for U.S.-based exporters, and seeks to assure that 
U.S. exporters continue to produce domestically for world 
markets. At the same time, the Committee recognizes that the 
publication of certain service contract essential terms 
provides U.S. ports, longshore labor, ocean transportation 
intermediaries, and others useful information for determining 
cargo flows and facilitate strategic planning and marketing 
efforts, including the U.S. port range involved in handling 
shipments pursuant to a service contract. The Committee seeks 
to ensure that the FMC, its successor, and the shipping public 
continue to have access to the information necessary to enforce 
U.S. shipping laws. Additionally, the Committee recognizes that 
in retaining ocean carrier dispensation from the antitrust 
laws, while providing ocean carriers with greater discretion in 
contracting, this alternative regulatory structure must provide 
a mechanism to ensure that shipping malpractices are capable of 
being ascertained, and the shipping public may petition a 
Federal agency for relief. The bill balances these often 
conflicting requirements by requiring the confidential filing 
of all service contracts with the FMC, protecting U.S. 
exporters' most sensitive service contract information from 
public disclosure, and requiring common carriers and agreements 
among ocean common carriers to publish certain service contract 
information to assist U.S. ports, smaller shippers, shippers' 
associations, and ocean transportation intermediaries, and to 
ensure that antitrust immunity is not abused.
  To achieve this balance, the substitute amendment would 
require the publication of only the commodity or commodities, 
the volume or portion of the commodity or commodities covered 
by the service contract, the duration of the service contract, 
and the U.S. port range through which the common carrier 
intends to provide the service covered by the contract. This 
publication requirement includes U.S. port ranges involved in 
the transshipment of cargo from one foreign destination to 
another foreign destination, to the extent that these service 
contracts are subject to the requirements of the 1984 Act, as 
amended by the bill. The bill requires common carriers and 
agreements among ocean common carriers to publish this 
information for each of their service contracts in tariff 
format through the same private electronic system they use to 
publish their tariffs.
  This section also adds new sections 8(c)(4) and 8(c)(5) of 
the 1984 Act, which provide for a new procedure for the 
disclosure by the FMC, or its successor, of certain unpublished 
service contract essential terms to address certain collective-
bargaining agreement disputes. These provisions do not require 
the agency to develop expertise in laws and regulations 
concerning collective-bargaining agreements. The Committee 
expects the agency to use its best judgment in determining 
which common carrier service contract unpublished terms may be 
relevant as evidence in a collective bargaining dispute. The 
Committee directs the FMC, and its successor, to give petitions 
filed in accordance with section 8(c)(4) of the 1984 Act, as 
amended by the bill, its highest priority in processing and 
determination to facilitate the timely resolution of the 
associated collective-bargaining disputes.
  This section adds a provision to section 8 of the 1984 Act 
which will permit marine terminal operators to establish and 
make available to the public, subject to section 10(d) of the 
1984 Act, as amended by the bill, a schedule of rates, 
regulations, and practices, including limitation of liability 
for cargo loss or damage, pertaining to the receiving, 
delivering, handling or storing of property on the marine 
terminal. The limitations for cargo loss or damage must be 
consistent with domestic law and international conventions and 
agreements. Such schedules shall be enforceable by an 
appropriate court, not by the FMC, as an implied contract, 
without proof of actual knowledge of its provisions. If a 
marine terminal operator has an actual contract with a person 
covering the services rendered, such a schedule would not be 
enforceable as an implied contract with respect to that person. 
In the past, marine terminal operators established and filed 
tariffs with the FMC for their services pursuant to FMC 
regulations. This new provision is necessary to ensure that the 
operators of essential marine terminal transportation 
facilities are promptly and fairly compensated for the services 
they provide to waterborne commerce.
  This section also would amend section 8 of the 1984 Act to 
authorize the FMC to prescribe regulations for the 
accessibility and accuracy of automated tariff systems and for 
the form and manner of marine terminal operator schedules 
authorized by that section. The agency also is authorized to 
prohibit the use of any automated tariff publication system it 
determines has failed to meet the requirements established 
under section 8 of the 1984 Act, as amended by the bill.
  Finally, this section would amend section 8 of the 1984 Act 
in several places to conform this section with amendments made 
to other sections of the 1984 Act by the bill.
  The substitute amendment constituted a significant shift in 
the bill sponsors' direction on increasing confidentiality for 
service contract essential terms. The introduced bill would 
have authorized complete confidentiality for service contracts 
signed by individual ocean carriers and retained current filing 
and publication requirements for service contracts signed by 
two or more ocean carriers or an agreement among ocean 
carriers.
  The Committee found that the industry was divided over the 
question of whether current ocean carrier antitrust immunity 
should apply to ocean carrier discussions concerning 
individualocean carrier service contracts. Ocean carriers and large 
volume shippers supported the extension of ocean carrier antitrust 
immunity to individual service contracts to enable ocean carrier 
agreements, such as the current ``alliances,'' to jointly negotiate 
confidential service contracts with shippers. Many shippers' 
associations, NVOCCs, and ocean freight forwarders opposed the 
application of ocean carrier antitrust immunity to discussions or 
negotiations of individual service contracts based on their concern 
that this would allow ocean carrier conferences to allocate 
confidential contracts among their members and allow conferences to 
subject these intermediaries to concerted, unfair discrimination under 
the protection of complete contract confidentiality. Also, smaller U.S. 
ocean carriers that depended on cooperative ventures with other 
conference members to compete with larger ocean carriers stated their 
need for individual ocean carrier and multiple ocean carrier service 
contracts to be treated the same with respect to confidentiality of 
service contract terms. To do otherwise, they argued, would provide an 
incentive for smaller carriers to merge with other carriers in order to 
remain competitive in the world market. In addition, the committee 
questioned whether individual ocean common carrier actions could 
legally be segregated from ocean common carrier actions which were 
authorized to be considered collectively, which could allow 
anticompetitive collective activity to occur under the guise of 
confidential individual contracts.
  The Committee believed that the original proposal on contract 
confidentiality could produce undesirable results. Therefore, 
the Committee chose a different approach to address service 
contract confidentiality. The substitute amendment replaced the 
two-tiered system where individual ocean carrier service 
contracts were not filed and completely confidential, and 
multiple ocean carrier service contracts were filed and 
published, with a single system in which all contracts are 
filed, but substantially less service contract information is 
published. The substitute amendment attempts to balance 
competing considerations by shielding from public scrutiny 
certain contract terms that disclose sensitive business 
information, while providing the shipping public with certain 
terms for the purpose of monitoring shipping practices in order 
to petition for relief of unfair or predatory actions.
  The substitute amendment also would retain the current 
statutory language of section 8(d) of the 1984 Act, which the 
bill as introduced would have amended; prohibit the use of a 
biased forum for the resolution of service contract disputes, 
which was not included in the introduced bill; and clarified 
the applicability of section 10 of the 1984 Act to the bill's 
new marine terminal operator schedule provision.

Section 107.--Automated tariff filing and information system

  This section would repeal the authorization for the FMC's 
Automated Tariff Filing and Information System, since the 
function of providing tariff information would be delegated to 
private entities.

Section 108.--Controlled carriers

  This section of the bill would amend section 9 of the 1984 
Act in several places to increase the FMC's authority to 
prevent and address unjust or unreasonable actions by 
controlled carriers. This section would direct the FMC to take 
into account whether the constructive costs of a non-controlled 
carrier with similar service are met by the controlled 
carrier's challenged prices when the FMC is not able to 
accurately determine the actual costs of the controlled 
carrier; set the time period after the FMC's request for 
information in which the agency must make a determination on 
the controlled carrier's rates, charges, classifications, 
rules, or regulations; reduce the notice period for FMC actions 
pursuant to section 9 of the 1984 Act from 60 days to 30 days; 
and eliminate three exceptions to this section of the 1984 Act. 
Also, this section would conform this section with other 
amendments made to the 1984 Act by the bill. The Committee is 
concerned about the aggressive growth of certain controlled 
carriers, and would hope that new authority under section 9 
will allow the FMC, and its successor, to move forward 
aggressively to ensure that carriers controlled by foreign 
governments not be allowed to utilize the benefits of operating 
under the control of, and with the support of, a government to 
displace carriers operating under normal commercial 
considerations.

Section 109.--Prohibited acts

  This section would make several amendments to section 10 of 
the 1984 Act:
  Amendments to section 10(b) of the 1984 Act--
  The prohibited acts described in section 10(b) of the 1984 
Act would be substantially revised. Current sections 10(b)(1) 
through (3) of the 1984 Act, which are intended to maintain the 
integrity of the common carrier tariff and service contract 
systems, would be replaced by a single new section 10(b)(2), 
which is intended to accomplish the same purpose. Current 
sections 10(b)(4) and (5) would be redesignated as sections 
10(b)(1) and (3), respectively. Current section 10(b)(6), to be 
redesignated as section 10(b)(4), would be amended to clarify 
that it applies only to service pursuant to a tariff and 
includes charges as well as rates. Current section 10(b)(7) of 
the 1984 Act, to be redesignated as section 10(b)(6), would be 
amended to replace the reference to ``a fighting ship'' with a 
description of the predatory behavior which the Committee 
believes should be prohibited by the 1984 Act. The amendment to 
section 10(b)(6), as redesignated, was included in the 
substitute amendment, but not the bill as introduced.
  Current sections 10(b)(9) through (13) of the 1984 Act would 
be replaced with new sections 10(b)(5) and (8) through (10). 
New section 10(b)(5), combined with section 10(b)(4), as 
redesignated, would provide the necessary guidance with respect 
to common carrier discriminatory practices pursuant to tariffs 
and service contracts in place of current section 10(b)(10). 
New sections 10(b)(8) and (9) would provide the necessary 
guidance with respect to preference or advantage given, or 
prejudice or disadvantage imposed, by a common carrier pursuant 
to tariffs and service contracts in place of current sections 
10(b)(11) and (12). New section 10(b)(10) would provide the 
necessary guidance with respect to a common carrier's refusal 
to deal or negotiate in place of current sections 10(b)(12) and 
(13). The Committee determined that the current prohibited acts 
in section 10(b), which are a combination of prohibited acts 
that were either originally enacted by the Shipping Act, 1916, 
or added by the 1984 Act, yielded an unclear, and possibly 
contradictory, set of guidelines for common carrier actions. In 
addition to providing common carriers and shippers greater 
flexibility to tailor service contracts to suit different 
shippers' requirements without collapsing the service contract 
rate structure, the Committee intended to revise section 10(b) 
to improve its overall clarity and consistency.
  New sections 10(b)(4) and (8) retain the strong common 
carriage requirements of the tariff system. Differences in 
rates charged pursuant to common carrier tariffs must be fair 
and just for all users of the tariff system. Differences in 
services provided pursuant to common carrier tariffs must be 
reasonable for all users of the tariff system. These 
differences should be based on transportation-related factors 
in order to be fair and just or reasonable. The Committee 
expects the FMC, and its successor, to interpret the standards 
included in these new provisions in the same manner as those 
standards in the related current provisions of the 1984 Act 
have been interpreted.
  New sections 10(b)(5) and (9) substantially increase the 
discretion given to common carriers to provide different 
service contract terms to similarly situated shippers. In 
addition to eliminating the current requirement in section 8(c) 
of the 1984 Act that ocean common carriers provide the same 
service contract terms to similarly situated shippers, the bill 
narrows the application of the prohibited acts with respect to 
service pursuant to common carrier service contracts. Sections 
10(b)(5) and (9) of the 1984 Act, as amended by the bill, would 
restrict common carrier service contracting flexibility in only 
three, narrow, ways.
  First, sections 10(b)(5) and (9) of the 1984 Act, as amended 
by the bill, would protect localities from unjust 
discrimination and undue or unreasonable preference, advantage, 
prejudice, or disadvantage as a result of common carrier 
service contracts. The Committee intends the application of 
these prohibitions to a locality to be limited to circumstances 
in which the prohibited actions are clearly targeted at the 
locality, not to circumstances where the actions are targeted 
at a particular shipper or ocean transportation intermediary 
which happens to be associated with that locality. An example 
of this would include a clear pattern of service contracting by 
a common carrier that imposes an unreasonable disadvantage on 
all shipments from a specific nation or region of a nation, 
including the United States. Second, the amendments made by 
this section would retain similar protections for ports from 
unjust discrimination and undue or unreasonable preference, 
advantage, prejudice, or disadvantage as a result of common 
carrier service contracts as currently exist under the 1984 Act 
through references to ports and localities. Third, the 
amendments made by this section would protect shippers and 
ocean transportation intermediaries from unjust discrimination 
and undue or unreasonable preference, advantage, prejudice, or 
disadvantage as a result of common carrier service contracts 
due to their status as shippers' associations or ocean 
transportation intermediaries.
  The Committee intends the application of sections 10(b)(5) 
and (9) of the 1984 Act, as amended by the bill, with respect 
to protection for shippers' associations and ocean 
transportation intermediaries to be limited to circumstances in 
which the prohibited actions are clearly targeted at shippers' 
associations and ocean transportation intermediaries in 
general, not to circumstances where the actions are targeted at 
a particular shippers' association or ocean transportation 
intermediary. An example of such prohibited activity would 
include a clear pattern of unjustly discriminatory practices by 
a common carrier with respect to all shippers' association 
service contracts. The Committee expects the amendments to the 
1984 Act by the bill will result in a much more competitive 
environment for ocean transportation rates and services. This 
environment should provide shippers' associations and ocean 
transportation intermediaries with more options when shopping 
for ocean transportation services and free common carriers to 
compete with each other to obtain shippers' associations and 
ocean transportation intermediaries as customers. Therefore, 
the Committee believes that shippers' associations and ocean 
transportation intermediaries require less protection as 
individuals in this more competitive marketplace. The Committee 
intends that common carriers be afforded the maximum 
flexibility to differentiate their service contract terms and 
conditions with respect to individual shippers and ocean 
transportation intermediaries in this more competitive 
environment. The Committee directs the FMC, and its successor, 
to focus the efforts of its limited enforcement resources, with 
respect to common carrier service contracts, on the most 
egregious examples of unjust discrimination and undue or 
unreasonable preference, advantage, prejudice, or disadvantage 
as a result of common carrier service contracting.
  This section also would conform section 10(b) of the 1984 Act 
with other amendments made by the bill.
  The substitute amendment's changes to section 10(b) differ 
substantially from those of the introduced bill. The introduced 
bill continued the reference to ``fighting ship'' and amended 
current sections 10(b)(10) through (13) of the 1984 Act, 
redesignating them as new sections 10(b)(7) through (10) to 
consistently apply the service contract exception. The 
substitute amendment replaced current sections 10(b)(10) 
through (13) of the 1984 Act with new sections 10(b)(5) and 
10(b)(8) through (10), as described above.
  Amendments to section 10(c) of the 1984 Act--
  This section would conform section 10(c)(5) of the 1984 Act 
with other amendments made by the bill.
  Amendments to section 10(d) of the 1984 Act--
  This section would amend section 10(d)(3) of the 1984 Act to 
revise the application of certain prohibited acts in section 
10(b) to marine terminal operators, and add the application of 
section 10(b)(13) of the 1984 Act, as amended by the bill, to 
ocean freight forwarders. The bill would also conform section 
10(d) of the 1984 Act with other amendments made by the bill. 
The application of section 10(b)(13) of the 1984 Act, as 
amended by the bill, to ocean freight forwarders was included 
in the substitute amendment, but not in the introduced bill.

Section 110.--Complaints, investigations, reports, and reparations

  This section would conform section 11 of the 1984 Act with 
other amendments made by the bill.

Section 111.--Foreign Shipping Practices Act of 1988

  This section would amend the Foreign Shipping Practices Act 
of 1988 to expand the authority of the FMC, and its successor, 
to take actions against foreign carrier service contracts, as 
well as tariffs and to conform the Foreign Shipping Practices 
Act of 1988 with other amendments made by the bill.

Section 112.--Penalties

  This section would amend section 13 of the 1984 Act to 
provide the FMC, and its successor, with the authority to 
enforce penalties by providing authority to place a maritime 
lien on vessels operated by ocean common carriers, authorize an 
additional penalty to authorize the refusal or revocation of 
clearances to conduct business in U.S. ports, and conform 
section 13 with other amendments made by the bill. Some ocean 
common carriers have expressed concern that the authority 
provided to the FMC, and its successor, to authorize the 
refusal or revocation of clearances to conduct business in U.S. 
ports in response to an ocean common carrier's refusal to 
produce information required by a subpoena would deprive that 
carrier of the right to contest such a subpoena in court. The 
Committee notes that an ocean common carrier also has the right 
to contest the imposition of this new penalty in court in such 
a situation.

Section 113.--Reports and certificates

  This section would amend section 15 of the 1984 Act to 
eliminate a requirement that the chief executive officer of 
each common carrier and other transportation companies provide 
periodic written certifications to the FMC as to the company's 
policy prohibiting the payment or receipt of unlawful rebates. 
The elimination of this provision is intended to remove an 
unnecessary paperwork burden from the ocean transportation 
industry, and should not be interpreted as relaxing the 1984 
Act's prohibition against deferred rebates.

Section 114.--Exemptions

  This section would amend section 16 of the 1984 Act to 
facilitate the exemption of classes of agreements between 
persons subject to the 1984 Act or any specified activities of 
those persons from any requirements of the 1984 Act by 
eliminating two of the four tests applied to applications for 
such exemptions. The policy underlying this change is that 
while Congress has been able to identify broad areas of ocean 
shipping commerce for which reduced regulation is clearly 
warranted, the FMC is more capable of examining through the 
administrative process specific regulatory provisions and 
practices not yet addressed by Congress to determine where they 
can be deregulated consistent with the policies of Congress.

Section 115.--Agency Reports and Advisory Commission

  This section would repeal section 18 of the 1984 Act. Section 
18 authorized the establishment of an Advisory Commission in 
order to review the operation of the 1984 Act. The activities 
required or authorized by this section of the 1984 Act were 
completed several years ago.

Section 116.--Ocean freight forwarders

  This section would amend section 19 of the 1984 Act in 
several areas:
  First, this section would apply the provisions of section 19 
of the 1984 Act to all ocean transportation intermediaries, 
including NVOCCs, not only to ocean freight forwarders. Under 
the 1984 Act, NVOCCs are required to maintain a bond, proof of 
insurance, or other surety, but are not required to be 
licensed. This section would now require certain NVOCCs to be 
licensed.
  Second, this section would apply the licensing requirements 
only to persons in the United States. The Committee directs the 
FMC to determine when foreign-based entities conducting 
business in the United States are to be considered persons in 
the United States for the purposes of this section.
  Third, this section would require the bonding of all ocean 
transportation intermediaries as a means of insuring their 
financial responsibility and add an alternative process for 
resolving claims against such a bond. In determining the amount 
of the bond, the Committee directs the FMC to consider that the 
licensing requirements in subsection (a) on the fitness of the 
ocean transportation intermediary do not apply to certain 
foreign-based entities providing ocean transportation 
intermediary services in the United States, and to consider the 
difference in potential for claims against the bond between 
licensed and unlicensed intermediaries when developing bond 
requirements. The 1984 Act prescribes that a person pursuing a 
claim against an NVOCC bond must obtain a court judgment to 
collect on that claim. While the bill would provide for a 
similar process for claims against ocean transportation 
intermediary bonds, it would also allow the surety company to 
settle the claim with the consent of the insured ocean 
transportation intermediary or after the ocean transportation 
intermediary has failed to respond to adequate notice to 
address the validity of the claim. The Committee directs the 
FMC to establish the minimum time period which may be 
considered adequate notice for this purpose.
  Damages which would be covered by the bond would include 
those suffered by ocean common carriers, shippers and others 
arising from any activities authorized or required by the 1984 
Act, as amended by the bill, or referred to in the definition 
of ``ocean transportation intermediary'' in section 3(17) of 
the 1984 Act, as amended by the bill. This would include the 
activities of ocean freight forwarders as defined in section 
3(17)(A), and the activities of NVOCCs as defined in section 
3(17)(B), including liabilities related to service contract 
obligations. The bonds would cover judgments and valid claims 
resulting directly or indirectly from, for example, the loss or 
conversion of cargo by the bonded entity or from the negligence 
or complicity of the bonded entity, as well as from 
nonperformance of services. Once a judgment is entered against 
a bonded ocean transportation intermediary, the surety company 
would be expected to pay the judgment from the bond funds, 
without requiring further evidence of bills of lading or other 
documentation going to the validity, rather than the subject 
matter, of the claim. The Committee directs the FMC to 
prescribe regulations defining transportation-related 
activities of ocean transportationintermediaries which are 
subject to the financial responsibility requirements of section 
19(b)(1) of the 1984 Act, as amended by the bill.
  Due to the diversity of activities conducted by different 
ocean transportation intermediaries, the Committee directs the 
FMC to establish a range of licensing and financial 
responsibility requirements commensurate with the scope of 
activities conducted by different ocean transportation 
intermediaries, and the past fitness of the ocean 
transportation intermediary in the performance of intermediary 
services.
  Fourth, this section would include in the 1984 Act a 
provision providing for reasonable ocean freight forwarder 
compensation by groups of ocean common carriers that is 
currently included in section 641(I) the Tariff Act of 1930. 
This section of the bill would remove the requirement in 
current law that the freight forwarder (section 3(17)(A) ocean 
transportation intermediary) also be a customs broker.
  Finally, this section would conform section 19 of the 1984 
Act with other amendments made by the bill. The substitute 
amendment changed the process included in the introduced bill 
for payment of a claim against an ocean transportation 
intermediary's bond.

Section 117.--Contracts, agreements, and licenses under prior shipping 
        legislation

  This section would amend section 20 of the 1984 Act which 
includes savings provisions for certain agreements and 
contracts in effect, suits filed, and regulations issued by the 
FMC prior to the effective date of the amendments to the 1984 
Act made by the bill.

Section 118.--Surety for non-vessel-operating common carriers

  This section would repeal section 23 of the 1984 Act. 
Provisions requiring a bond, proof of insurance, or other 
surety from NVOCCs have been included in section 19 of the 1984 
Act, as amended by the bill.

Section 119.--Replacement of Federal Maritime Commission with 
        Intermodal Transportation Board

  This section would amend the 1984 Act to conform with the 
transfer of functions of the FMC to the ITB, effective January 
1, 1999.

 TITLE II--TRANSFER OF FUNCTIONS OF THE FEDERAL MARITIME COMMISSION TO 
                  THE INTERMODAL TRANSPORTATION BOARD

  This title would rename the Surface Transportation Board as 
the Intermodal Transportation Board, transfer the functions of 
the FMC to the ITB, adjust the membership of the ITB to reflect 
the added maritime regulation responsibilities, and terminate 
the FMC on January 1, 1999. Because this title would transfer 
responsibility for administering the provisions of the 1984 
Act, as amended by the bill, to the ITB after those amendments 
are effective, this title requires the FMC to consult with the 
STB during the development of the regulations implementing the 
amendments made by the bill. In amending the qualification 
requirements for ITB members, this title would prevent 
domination within the Board of a particular transportation mode 
(surface or maritime), sector (private or public), or political 
party by requiring the Board membership to be balanced in these 
three characteristics. This title also would authorize FMC 
appropriations in the amount of $15 million for fiscal year 
1998. STB appropriations are currently authorized through 
fiscal year 1998. The bill does not authorize appropriations 
for the FMC, STB, or ITB for fiscal year 1999. The Committee 
expects to address fiscal year 1999 authorizations for these 
agencies at a later date.

       TITLE III--AMENDMENTS TO OTHER SHIPPING AND MARITIME LAWS

Section 301.--Amendments to section 19 of the Merchant Marine Act, 1920

  This section would amend section 19 of the Merchant Marine 
Act, 1920, to clarify that conditions unfavorable to shipping 
in the foreign trade include pricing practices employed by 
owners, operators, agents, or masters of vessels of a foreign 
country. The FMC has held that the term ``practices employed by 
owners, operators, agents, or masters of vessels of a foreign 
country'' in section 19 of the Merchant Marine Act, 1920, 
includes pricing practices. The Committee agrees, and would 
amend section 19 to clarify that such pricing practices are 
within the scope of that section. Section 301 of the bill would 
also clarify that service contracts of a common carrier are 
subject to actions by the agency under section 19 of the 
Merchant Marine Act, 1920, and conform section 19 with 
amendments made to the 1984 Act by the bill.

Section 302.--Technical corrections

  This section would make technical corrections in several laws 
to conform with amendments made by the bill.

                  TITLE IV--MERCHANT MARINER BENEFITS

Section 401.--Merchant mariner benefits

  This section would extend eligibility for veterans' burial 
benefits, funeral benefits, and related benefits for veterans 
of service in the United States Merchant Marine in support of 
U.S. Armed Forces from August 16, 1945 to December 31, 1946. 
Currently, the dates provided for veterans' benefits to U.S. 
merchant mariners for World War II service are December 7, 1941 
to August 16, 1945.
  The efforts of American merchant mariners to secure veterans' 
benefits pursuant to Public Law 95-202, have been long, and 
only partially successful, despite merit and clear eligibility 
under the statute. The casualty rate for the U.S. Merchant 
Marine during World War II was higher than the casualty rate 
for the U.S. Army, U.S. Navy, or U.S. Coast Guard, and only 
second to the U.S. Marine Corps. In all, 5662 merchant mariners 
lost their lives or were declared missing in action. Another 
609 merchant mariners became prisoners of war and thousands 
were wounded. The Director of the Selective Service System at 
the time, General Lewis B. Hershey, wrote to local draft 
boards:

          Service in the merchant marine * * * is so closely 
        allied to service in the armed forces that men found by 
        the local board to be actively engaged at sea may be 
        considered engaged in thedefense of the country. Such 
service may be considered as tantamount to military service.

  Yet, in 1980, when a group of merchant mariners filed an 
application for veterans' status pursuant to Public Law 95-202, 
it was denied by the Secretary of the Air Force, to whom such 
authority was delegated. The applicants sought judicial review 
of this adverse determination, and the Federal District Court 
held in 1987 that the Secretary abused his discretion under the 
statute in denying the application. As a consequence of the 
Court's decision, the Secretary reconsidered his denial and 
granted veterans' status to merchant mariners who served 
through V-J day, August 15, 1945, even though hostilities were 
not declared ended by President Truman until December 31, 1946 
(the date that was applied to veterans' status for all branches 
of the U.S. Armed Forces). In addition, another group similarly 
situated to U.S. merchant mariners, the Guam Combat Patrol, was 
given veterans' status without a cutoff date (effectively 
through December 31, 1946) by the Secretary.
  Numerous applications to the Secretary on behalf of remaining 
merchant mariners to extend the cutoff date to December 31, 
1946, have been denied--despite the fact that between August 
16, 1945 and December 31, 1946, ten U.S. Merchant Marine 
vessels operating in support of U.S. Armed Forces were damaged 
or lost and merchant marine casualties were sustained as a 
result of enemy instruments of war. The Committee agrees with 
the District Court that Public Law 95-202 gives the Secretary 
broad discretion to extend the cutoff date and rectify a 
blatant inequity. Frustrated by the failure of the Secretary to 
do so for nearly a decade, the Committee reluctantly concludes 
that a legislative solution is the only alternative.

            TITLE V--CERTAIN LOAN GUARANTEES AND COMMITMENTS

Section 501.--Certain loan guarantees and commitments

  This section would prohibit the Secretary of Transportation 
from issuing a guarantee or commitment to guarantee a loan for 
the construction, reconstruction, or reconditioning of a vessel 
under the authority of title XI of the Merchant Marine Act, 
1936, until the FMC certifies that the operator of that vessel 
has not violated certain U.S. shipping laws within the previous 
five years and is not under formal investigation by the FMC for 
a violation of those shipping laws. This provision would apply 
to the operator of the vessel to be constructed, reconstructed, 
or reconditioned with the assistance of the title XI program, 
but not to any other affiliated vessel operators. This 
provision would apply to guarantees and commitments to 
guarantee made by the Secretary of Transportation after the 
date of enactment of the bill. This provision was included in 
an amendment by Senator McCain that was adopted by the 
Committee, and was not included in the introduced bill.

                        Changes in Existing Law

  In compliance with paragraph 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new material is printed 
in italic, existing law in which no change is proposed is shown 
in roman) \1\:
---------------------------------------------------------------------------
    \1\ In compliance with the last sentence of such paragraph, it is 
the opinion of the Committee that it is necessary to dispense with the 
requirements of this paragraph, as they apply to mere changes in 
references to the Surface Transportation Board in statutes not 
otherwise amended, in order to expedite the business of the Senate.
---------------------------------------------------------------------------

                    Section 641, Tariff Act of 1930

                            [19 U.S.C. 1641]

Sec.  1641. Customs brokers

  (a) Definitions.-- As used in this section:
          (1) The term ``customs broker'' means any person 
        granted a customs broker's license by the Secretary 
        under subsection (b).
          (2) The term ``customs business'' means those 
        activities involving transactions with the Customs 
        Service concerning the entry and admissibility of 
        merchandise, its classification and valuation, the 
        payment of duties, taxes, or other charges, assessed or 
        collected by the Customs Service upon merchandise by 
        reason of its importation, or the refund, rebate, or 
        drawback thereof. It also includes the preparation of 
        documents or forms in any format and the electronic 
        transmission of documents, invoices, bills, or parts 
        thereof, intended to be filed with the Customs Service 
        in furtherance of such activities, whether or not 
        signed or filed by the preparer, or activities relating 
        to such preparation, but does not include the mere 
        electronic transmission of data received for 
        transmission to Customs.
          (3) The term ``Secretary'' means the Secretary of the 
        Treasury.
  (b) Custom Broker's Licenses.--
          (1) In general.--No person may conduct customs 
        business (other than solely on behalf of that person) 
        unless that person holds a valid customs broker's 
        license issued by the Secretary under paragraph (2) or 
        (3).
          (2) Licenses for individuals.--The Secretary may 
        grant an individual a customs broker's license only if 
        that individual is a citizen of the United States. 
        Before granting the license, the Secretary may require 
        an applicant to show any facts deemed necessary to 
        establish that the applicant is of good moral character 
        and qualified to render valuable service to others in 
        the conduct of customs business. In assessing the 
        qualifications of an applicant, the Secretary may 
        conduct an examination to determine the applicant's 
        knowledge of customs and related laws, regulations and 
        procedures, bookkeeping, accounting, and all others 
        appropriate matters.
          (3) Licenses for corporations, etc.--The Secretary 
        may grant a customs broker's license to any 
        corporation, association, or partnership that is 
        organized or existing under the laws of any of the 
        several States of the United States if at least one 
        officer of the corporation or association, or one 
        member of the partnership, holds a valid customs 
        broker's license granted under paragraph (2).
          (4) Duties.--A customs broker shall exercise 
        responsible supervision and control over the customs 
        business that it conducts.
          (5) Lapse of license.--The failure of a customs 
        broker that is licensed as a corporation, association, 
        or partnership under paragraph (3) to have, for any 
        continuous period of 120 days, at least one officer of 
        the corporation or association, or at least one member 
        of the partnership, validly licensed under paragraph 
        (2) shall, in addition to causing the broker to be 
        subject to any other sanction under this section 
        (including paragraph (6)) result in the revocation by 
        operation of law of its license.
          (6) Prohibited acts.--Any person who intentionally 
        transacts customs business, other than solely on the 
        behalf of that person, without holding a valid customs 
        broker's license granted to that person under this 
        subsection shall be liable to the United States for a 
        monetary penalty not to exceed $10,000 for each such 
        transaction as well as for each violation of any other 
        provision of this section. This penalty shall be 
        assessed in the same manner and under the same 
        procedures as the monetary penalties provided for in 
        subsection (d)(2)(A).
  (c) Customs Broker's Permits.--
          (1) In general.--Each person granted a customs 
        broker's license under subsection (b) shall be issued, 
        in accordance with such regulations as the Secretary 
        shall prescribe, either or both of the following:
                  (A) A national permit for the conduct of such 
                customs business as the Secretary prescribes by 
                regulation.
                  (B) A permit for each customs district in 
                which that person conducts customs business 
                and, except as provided in paragraph (2), 
                regularly employs at least 1 individual who is 
                licensed under subsection (b)(2) to exercise 
                responsible supervision and control over the 
                customs business conducted by that person in 
                that district.
          (2) Exception.--If a person granted a customs 
        broker's license under subsection (b) can demonstrate 
        to the satisfaction of the Secretary that--
                  (A) he regularly employs in the region in 
                which that district is located at least one 
                individual who is licensed under subsection 
                (b)(2), and
                  (B) that sufficient procedures exist within 
                the company for the person employed in that 
                region to exercise responsible supervision and 
                control over the customs business conducted by 
                that person in that district,
        the Secretary may waive the requirement in paragraph 
        (1)(B).
          (3) Lapse of permit.--The failure of a customs broker 
        granted a permit under paragraph (1) to employ, for any 
        continuous period of 180 days, at least one individual 
        who is licensed under subsection (b)(2) within the 
        district or region (if paragraph (2) applies) for which 
        a permit was issued shall, in addition to causing the 
        broker to be subject to any other sanction under this 
        section (including any in subsection (d)), result in 
        the revocation by operation of law of the permit.
          (4) Appointment of subagents.--Notwithstanding 
        subsection (c)(1), upon the implementation by the 
        Secretary under section 413(b)(2) [19 U.S.C. 
        1413(b)(2)] of the component of the National Customs 
        Automation Program referred to in section 
        411(a)(2)(B)[19 U.S.C. 1411(a)(2)(B)], a licensed 
        broker may appoint another licensed broker holding a 
        permit in a customs district to act on its behalf as 
        its subagent in that district if such activity relates 
        to the filing of information that is permitted by law 
        or regulation to be filed electronically. A licensed 
        broker appointing a subagent pursuant to this paragraph 
        shall remain liable for any and all obligations arising 
        under bond and any and all duties, taxes, and fees, as 
        well as any other liabilities imposed by law, and shall 
        be precluded from delegating to a subagent such 
        liability.
  (d) Disciplinary Proceedings.--
          (1) General rule.--The Secretary may impose a 
        monetary penalty in all cases with the exception of the 
        infractions described in clause (iii) of subparagraph 
        (B) of this subsection, or revoke or suspend a license 
        or permit of any customs broker, if it is shown that 
        the broker--
                  (A) has made or caused to be made in any 
                application for any license or permit under 
                this section, or report filed with the Customs 
                Service, any statement which was, at the time 
                and in light of the circumstances under which 
                it was made, false or misleading with respect 
                to any material fact, or has omitted to state 
                in any such application or report any material 
                fact which was required to be stated therein;
                  (B) has been convicted at any time after the 
                filing of an application for license under 
                subsection (b) of any felony or misdemeanor 
                which the Secretary finds--
                          (i) involved the importation or 
                        exportation of merchandise;
                          (ii) arose out of the conduct of its 
                        customs business; or
                          (iii) involved larceny, theft, 
                        robbery, extortion, forgery, 
                        counterfeiting, fraudulent concealment, 
                        embezzlement, fraudulent conversion, or 
                        misappropriation of funds;
                  (C) has violated any provision of any law 
                enforced by the Customs Service or the rules or 
                regulations issued under any such provision;
                  (D) has counseled, commanded, induced, 
                procured, or knowingly aided or abetted the 
                violations by any other person of any provision 
                of any law enforced by the Customs Service, or 
                the rules or regulations issued under any such 
                provision;
                  (E) has knowingly employed, or continues to 
                employ, any person who has been convicted of a 
                felony, without written approval of such 
                employment from the Secretary; or
                  (F) has, in the course of its customs 
                business, with intent to defraud, in any manner 
                willfully and knowingly deceived, misled or 
                threatened any client or prospective client.
          (2) Procedures.--
                  (A) Monetary penalty.--Unless action has been 
                taken under subparagraph (B), the appropriate 
                customs officer shall serve notice in writing 
                upon any customs broker to show cause why the 
                broker should not be subject to a monetary 
                penalty not to exceed $30,000 in total for a 
                violation or violations of this section. The 
                notice shall advise the customs broker of the 
                allegations or complaints against him and shall 
                explain that the broker has a right to respond 
                to the allegations or complaints in writing 
                within 30 days of the date of the notice. 
                Before imposing a monetary penalty, the customs 
                officer shall consider the allegations or 
                complaints and any timely response made by the 
                customs broker and issue a written decision. A 
                customs broker against whom a monetary penalty 
                has been issued under this section shall have a 
                reasonable opportunity under section 618 [19 
                U.S.C. 1618] to make representations seeking 
                remission or mitigation of the monetary 
                penalty. Following the conclusion of any 
                proceeding under section 618 [19 U.S.C. 1618], 
                the appropriate customs officer shall provide 
                to the customs broker a written statement which 
                sets forth the final determination and the 
                findings of fact and conclusions of law on 
                which such determination is based.
                  (B) Revocation or suspension.--The Customs 
                Service may, for good and sufficient reason, 
                serve notice in writing upon any customs broker 
                to show cause why a license or permit issued 
                under this section should not be revoked or 
                suspended. The notice shall be in the form of a 
                statement specifically setting forth the 
                grounds of the complaint, and shall allow the 
                customs broker 30 days to respond. If no 
                response is filed, or the Customs Service 
                determines that the revocation or suspension is 
                still warranted, it shall notify the customs 
                broker in writing of a hearing to be held 
                within 30 days, or at a later date if the 
                broker requests an extension and shows good 
                cause therefor, before an administrative law 
                judge appointed pursuant to section 3105 of 
                title 5, United States Code, who shall serve as 
                the hearing officer. If the customs broker 
                waives the hearing, or the broker or his 
                designated representative fails to appear at 
                the appointed time and place, the hearing 
                officer shall make findings and recommendations 
                based on the record submitted by the parties. 
                At the hearing, the customs broker may be 
                represented by counsel, and all proceedings, 
                including the proof of the charges and the 
                response thereto shall be presented with 
                testimony taken under oath and the right of 
                cross-examination accorded to both parties. A 
                transcript of the hearing shall be made and a 
                copy will be provided to the Customs Service 
                and the customs broker; which shall thereafter 
                be provided reasonable opportunity to file a 
                post-hearing brief. Following the conclusion of 
                the hearing, the hearing officer shall transmit 
                promptly the record of the hearing along with 
                the findings of fact and recommendations to the 
                Secretary for decision. The Secretary will 
                issue a written decision, based solely on the 
                record, setting forth the findings of fact and 
                the reasons for the decision. Such decision may 
                provide for the sanction contained in the 
                notice to show cause or any lesser sanction 
                authorized by this subsection, including a 
                monetary penalty not to exceed $30,000, than 
                was contained in the notice to show cause.
          (3) Settlement and compromise.--The Secretary may 
        settle and compromise any disciplinary proceeding which 
        has been instituted under this subsection according to 
        the terms and conditions agreed to by the parties, 
        including but not limited to the reduction of any 
        proposed suspension or revocation to a monetary 
        penalty.
          (4) Limitation of actions.--Notwithstanding section 
        621 [19 U.S.C. 1621], no proceeding under this 
        subsection or subsection (b) (6) shall be commenced 
        unless such proceeding is instituted by the appropriate 
        service of written notice within 5 years from the date 
        the alleged violation was committed; except that if the 
        alleged violation consists of fraud, the 5-year period 
        of limitation shall commence running from the time such 
        alleged violation was discovered.
  (e) Judicial Appeal.--
          (1) In general.--A customs broker, applicant, or 
        other person directly affected may appeal any decision 
        of the Secretary denying or revoking a license or 
        permit under subsection (b) or (c), or revoking or 
        suspending a license or permit or imposing a monetary 
        penalty in lieu thereof under subsection (d)(2)(B), by 
        filing in the Court of International Trade, within 60 
        days after the issuance of the decision or order, a 
        written petition requesting that the decision or order 
        be modified or set aside in whole or in part. A copy of 
        the petition shall be transmitted promptly by the clerk 
        of the court to the Secretary or his designee. In cases 
        involving revocation or suspension of a license or 
        permit or imposition of a monetary penalty in lieu 
        thereof under subsection (d)(2)(B), after receipt of 
        the petition, the Secretary shall file in court the 
        record upon which the decision or order complained of 
        was entered, as provided in section 2635(d) of title 
        28, United States Code.
          (2) Consideration of objections.--The court shall not 
        consider any objection to the decision or order of the 
        Secretary, or to the introduction of evidence or 
        testimony, unless that objection was raised before the 
        hearing officer in suspension or revocation proceedings 
        unless there were reasonable grounds for failure to do 
        so.
          (3) Conclusiveness of findings.--The findings of the 
        Secretary as to the facts, if supported by substantial 
        evidence, shall be conclusive.
          (4) Additional evidence.--If any party applies to the 
        court for leave to present additional evidence and the 
        court is satisfied that the additional evidence is 
        material and that reasonable grounds existed for the 
        failure to present the evidence in the proceedings 
        before the hearing officer, the court may order the 
        additional evidence to be taken before the hearing 
        officer and to be presented in a manner and upon the 
        terms and conditions prescribed by the court. The 
        Secretary may modify the findings of facts on the basis 
        of the additional evidence presented. The Secretary 
        shall then file with the court any new or modified 
        findings of fact which shall be conclusive of supported 
        by substantial evidence, together with a 
        recommendation, if any, for the modification or setting 
        aside of the original decision or order.
          (5) Effect of proceedings.--The commencement of 
        proceedings under this subsection shall, unless 
        specifically ordered by the court, operate as a stay of 
        the decision of the Secretary except in the case of a 
        denial of a license or permit.
          (6) Failure to appeal.--If an appeal is not filed 
        within the time limits specified in this section, the 
        decision by the Secretary shall be final and 
        conclusive. In the case of a monetary penalty imposed 
        under subsection (d)(2)(B) of this section, if the 
        amount is not tendered within 60 days after the 
        decision becomes final, the license shall automatically 
        be suspended until payment is made to the Customs 
        Service.
  (f) Regulations by the Secretary.--The Secretary may 
prescribe such rules and regulations relating to the customs 
business of customs brokers as the Secretary considers 
necessary to protect importers and the revenue of the United 
States, and to carry out the provisions of this section, 
including rules and regulations governing the licensing of or 
issuance of permits to customs brokers, the keeping of books, 
accounts, and records by customs brokers, and documents and 
correspondence, and the furnishing by customs brokers of any 
other information relating to their customs business to and 
duly accredited officer or employee of the Customs Service. The 
Secretary may not prohibit customs brokers from limiting their 
liability to other persons in the conduct of customs business. 
For purposes of this subsection or any other provision of this 
Act pertaining to recordkeeping, all data required to be 
retained by a customs broker may be kept on microfilm, optical 
disc, magnetic tapes, disks or drums, video files or any other 
electrically generated medium. Pursuant to such regulations as 
the Secretary shall prescribe, the conversion of data to such 
storage medium may be accomplished at any time subsequent to 
the relevant customs transaction and the data may be retained 
in a centralized basis according to such broker's business 
system.
  (g) Triennial Reports by Customs Brokers.--
          (1) In general.--On February 1, 1985, and on February 
        1 of each third year thereafter, each person who is 
        licensed under subsection (b) shall file with the 
        Secretary of the Treasury a report as to--
                  (A) whether such person is actively engaged 
                in business as a customs broker; and
                  (B) the name under, and the address at, which 
                such business is being transacted.
          (2) Suspension and revocation.--If a person licensed 
        under subsection (b) fails to file the required report 
        by March 1 of the reporting year, the license is 
        suspended, and may be thereafter revoked subject to the 
        following procedures:
                  (A) The Secretary shall transmit written 
                notice of suspension to the licensee no later 
                than March 31 of the reporting year.
                  (B) If the licensee files the required report 
                within 60 days of receipt of the Secretary's 
                notice, the license shall be reinstated.
                  (C) In the event the required report is not 
                filed within the 60-day period, the license 
                shall be revoked without prejudice to the 
                filing of an application for a new license.
  (h) Fees and Charges.--The Secretary may prescribe reasonable 
fees and charges to defray the costs of the Customs Service in 
carrying out the provisions of this section, including, but not 
limited to, a fee for licenses issued under subsection (b) and 
fees for any test administered by him or under his direction; 
except that no separate fees shall be imposed to defray the 
costs of an individual audit or of individual disciplinary 
proceedings of any nature.
  [(i) Compensation of Ocean Freight Forwarders.--
          [(1) In general.--Notwithstanding any other provision 
        of law, no conference or group of two or more ocean 
        common carriers in the foreign commerce of the United 
        States that is authorized to agree upon the level of 
        compensation paid to ocean freight forwarders may--
                  [(A) deny to any member of such conference or 
                group the right, upon notice of not more than 
                10 calendar days, to take independent action on 
                any level of compensation paid to an ocean 
                freight forwarder who is also a customs broker, 
                and
                  [(B) agree to limit the payment of 
                compensation to an ocean freight forwarder who 
                is also a customs broker 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.
  [(2) Administration.--The provisions of this subsection shall 
be enforced by the agency responsible for administration of the 
Shipping Act of 1984 (46 U.S.C. 1701, et seq.).
  [(3) Remedies.--Any person injured by reason of a violation 
of paragraph (1) may, in addition to any other remedy, file a 
complaint for reparation as provided in section 11 of the 
Shipping Act of 1984 (46 U.S.C. 1710), which may be enforced 
pursuant to section 14 of such Act (46 U.S.C. 1713).
  [(4) Definitions.--For purposes of this subsection, the terms 
``conference'', ``ocean common carrier'', and ``ocean freight 
forwarder'' have the respective meaning given to such terms by 
section 3 of the Shipping Act of 1984 (46 U.S.C. 1702).]

               TITLE 28. JUDICIARY AND JUDICIAL PROCEDURE

                     PART VI. PARTICULAR PROCEEDINGS

             CHAPTER 158. ORDERS OF FEDERAL AGENCIES; REVIEW

Sec.  2341. Definitions

    As used in this chapter--
          (1) ``clerk'' means the clerk of the court in which 
        the petition for the review of an order, reviewable 
        under this chapter, is filed;
          (2) ``petitioner'' means the party or parties by whom 
        a petition to review an order, reviewable under this 
        chapter, is filed; and
          (3) ``agency'' means--
                (A) the Commission, when the order sought to be 
                reviewed was entered by the Federal 
                Communications Commission, [the Federal 
                Maritime Commission,] or the Atomic Energy 
                Commission, as the case may be;
                  (B) the Secretary, when the order was entered 
                by the Secretary of Agriculture or the 
                Secretary of Transportation;
                  (C) the Administration, when the order was 
                entered by the Maritime Administration;
                  (D) the Secretary, when the order is under 
                section 812 of the Fair Housing Act [42 U.S.C. 
                3612]; and
                  (E) the Board, when the order was entered by 
                the [Surface] Intermodal Transportation Board.

Sec.  2342. Jurisdiction of court of appeals

    The court of appeals (other than the United States Court of 
Appeals for the Federal Circuit) has exclusive jurisdiction to 
enjoin, set aside, suspend (in whole or in part), or to 
determine the validity of--
          (1) all final orders of the Federal Communications 
        Commission made reviewable by section 402(a) of title 
        47;
          (2) all final orders of the Secretary of Agriculture 
        made under chapters 9 and 20A of title 7 [7 U.S.C. 181 
        et seq. and 501 et seq.], except orders issued under 
        sections 210(e), 217a, and 499g(a) of title 7;
          [(3) all rules, regulations, or final orders of--
                  [(A) the Secretary of Transportation issued 
                pursuant to section 2, 9, 37, or 41 of the 
                Shipping Act, 1916 (46 U.S.C. App. 802, 803, 
                808, 835, 839[, and 841a]) or pursuant to part 
                B or C of subtitle IV of title 49 [49 U.S.C. 
                13101 et seq. or 15101 et seq.]; and
                  [(B) the Federal Maritime Commission issued 
                pursuant to--
                          [(i) section 19 of the Merchant 
                        Marine Act, 1920 (46 U.S.C. App. 876) ;
                          [(ii) section 14 or 17 of the 
                        Shipping Act of 1984 (46 U.S.C. App. 
                        1713 or 1716); or
                          [(iii) section 2(d) or 3(d) of the 
                        Act of November 6, 1966 (46 U.S.C. App. 
                        817d(d) or 817e(d) [) ];
                          [(iv), (v) [Redesignated]]
          (3) all rules, regulations, or final orders of the 
        Secretary of Transportation issued pursuant to section 
        2, 9, 37, 41, or 43 of the Shipping Act, 1916 (46 
        U.S.C. App. 802, 803, 808, 835, 839, or 841a) or 
        pursuant to part B or C of subtitle IV of title 49 (49 
        U.S.C. 13101 et seq. or 15101 et seq.);
          (4) all final orders of the Atomic Energy Commission 
        made reviewable by section 2239 of title 42;
          [(5) all rules, regulations, or final orders of the 
        Surface Transportation Board made reviewable by section 
        2321 of this title;]
          (5) all rules, regulations, or final orders of the 
        Intermodal Transportation Board--
                  (A) made reviewable by section 2321 of this 
                title; or
                  (B) pursuant to--
                          (i) section 19 of the Merchant Marine 
                        Act, 1920 (46 U.S.C. App. 876);
                          (ii) section 14 or 17 of the Shipping 
                        Act of 1984 (46 U.S.C. App. 1713 or 
                        1716); or
                          (iii) section 2(d) or 3(d) of the Act 
                        of November 6, 1966 (46 U.S.C. App. 
                        817d(d) or 817e(d));
          (6) all final orders under section 812 of the Fair 
        Housing Act [42 U.S.C. 3612]; and
          (7) all final agency actions described in section 
        20114(c) of title 49.
Jurisdiction is invoked by filing a petition as provided by 
section 2344 of this title.

                      TITLE 46--UNITED STATES CODE

                             * * * * * * *

        CHAPTER 112--MERCHANT MARINER BENEFITS
Sec.
11201. Qualified service.
11202. Documentation of qualified service.
11203. Eligibility for certain veterans' benefits.
11204. Processing fees.

Sec.  11201. Qualified service

  For purposes of this chapter, a person engaged in qualified 
service if, between August 16, 1945, and December 31, 1946, the 
person--
          (1) was a member of the United States merchant marine 
        (including the Army Transport Service and the Naval 
        Transportation Service) serving as a crewmember of a 
        vessel that was--
                  (A) operated by the War Shipping 
                Administration or the Office of Defense 
                Transportation (or an agent of the 
                Administration or Office);
                  (B) operated in waters other than inland 
                waters, the Great Lakes, other lakes, bays, and 
                harbors of the United States;
                  (C) under contract or charter to, or property 
                of, the Government of the United States; and
                  (D) serving the Armed Forces; and
          (2) while so serving, was licensed or otherwise 
        documented for service as a crewmember of such a vessel 
        by an officer or employee of the United States 
        authorized to license or document the person for such 
        service.

Sec.  11202. Documentation of qualified service

  (a) Record of Service.--The Secretary shall, upon 
application--
          (1) issue a certificate of honorable discharge to a 
        person who, as determined by the Secretary, engaged in 
        qualified service of a nature and duration that 
        warrants issuance of the certificate; and
          (2) correct, or request the appropriate official of 
        the Federal government to correct, the service records 
        of the person to the extent necessary to reflect the 
        qualified service and the issuance of the certificate 
        of honorable discharge.
  (b) Timing of Documentation.--The Secretary shall take action 
on an application under subsection (a) not later than one year 
after the Secretary receives the application.
  (c) Standards Relating to Service.--In making a determination 
under subsection (a)(1), the Secretary shall apply the same 
standards relating to the nature and duration of service that 
apply to the issuance of honorable discharges under section 
401(a)(1)(b) of the GI Bill Improvement Act of 1977 (38 U.S.C. 
106 note).
  (d) Correction of Records.--An official of the Federal 
government who is requested to correct service records under 
subsection (a)(2) shall do so.

Sec.  11203. Eligibility for certain veterans' benefits

  (a) Eligibility.--
          (1) In general.--The qualified service of an 
        individual referred to in paragraph (2) is deemed to be 
        active duty in the armed forces during a period of war 
        for purposes of eligibility for benefits under chapters 
        23 and 24 of title 38.
          (2) Covered individuals.--Paragraph (1) applies to an 
        individual who--
                  (A) receives an honorable discharge 
                certificate under section 11202 of this title; 
                and
                  (B) is not eligible under any other provision 
                of law for benefits under laws administered by 
                the Secretary of Veterans Affairs.
    (b) Reimbursement for Benefits Provided.--The Secretary 
shall reimburse the Secretary of Veterans Affairs for the value 
of benefits that the Secretary of Veterans Affairs provides for 
an individual by reason of eligibility under this section.
  (c) Prospective Applicability.--An individual is not entitled 
to receive, and may not receive, benefits under this chapter 
for any period before the date of enactment of this chapter.

Sec.  11204. Processing fees

    (a) Collection of Fees.--The Secretary shall collect a fee 
of $30 from each applicant for processing an application 
submitted under section 11202(a) of this title.
    (b) Treatment of Fees Collected.--Amounts received by the 
Secretary under this section shall be credited to 
appropriations available to the secretary for carrying out this 
chapter.

                      Section 2, Public Law 89-777

                         [46 U.S.C. App. 817d]

Sec.  817d. Financial responsibility of owners and charterers for death 
                    or injury to passengers or other persons

    (a)  Amount; Method of Establishment.--Each owner or 
charterer of an American or foreign vessel having berth or 
stateroom accommodations for fifty or more passengers, and 
embarking passengers at United States ports, shall establish, 
under regulations prescribed by the [Federal Maritime 
Commission] Intermodal Transportation Board, his financial 
responsibility to meet any liability he may incur for death or 
injury to passengers or other persons on voyages to or from 
United States ports, in an amount based upon the number of 
passenger accommodations aboard the vessel, calculated as 
follows: $20,000 for each passenger accommodation up to and 
including five hundred; plus $15,000 for each additional 
passenger accommodation between five hundred and one and one 
thousand; plus $10,000 for each additional passenger 
accommodation between one thousand and one and one thousand 
five hundred; plus $5,000 for each passenger accommodation in 
excess of one thousand five hundred: Provided, however, That if 
such owner or charterer is operating more than one vessel subject to 
this section, the foregoing amount shall be based upon the number of 
passenger accommodations on the vessel being so operated which has the 
largest number of passenger accommodations. This amount shall be 
available to pay any judgment for damages, whether an amount less than 
or more than $20,000 for death or injury occurring on such voyages to 
any passenger or other person. Such financial responsibility may be 
established by any one of, or a combination of, the following methods 
which is acceptable to the [Commission:] Board: (1) policies of 
insurance, (2) surety bonds, (3) qualifications as a self-insurer, or 
(4) other evidence of financial responsibility.
    (b) Issuance of Bond When Filed With [Commission] Board._If 
a bond is filed with the [Commission,] Board then such bond 
shall be issued by a bonding company authorized to do business 
in 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.
    (c) Civil Penalties for Violations; Remission or Mitigation 
of Penalties.--Any person who shall violate this section shall 
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.] 
Intermodal Transportation Board. These penalties may be 
remitted or mitigated by the [Federal Maritime Commission] 
Intermodal Transportation Board upon such terms as it in its 
discretion shall deem proper.
    (d) Rules and Regulations.--The [Federal Maritime 
Commission] Intermodal Transportation Board is authorized to 
prescribe such regulations as may be necessary to carry out the 
provisions of this section. The provisions of the Shipping Act 
of 1984 shall apply with respect to proceedings conducted by 
the [Commission] Board under this section.
    (e) Refusal of Departure Clearance.--At the port or place 
of departure from the United States of any vessel described in 
subsection (a) of this section, the Customs Service shall 
refuse the clearance required by section 4197 of the Revised 
Statutes (46 U.S.C. 91) to any such vessel which does not have 
evidence furnished by the [Federal Maritime Commission] 
Intermodal Transportation Board that the provisions of this 
section have been complied with.

                      Section 3, Public Law 89-777

                         [46 U.S.C. App. 817e]

Sec. 817e. Financial responsibility for indemnification of passengers 
                    for nonperformance of transportation

    (a) Filing of Information or Bond With [Commission] 
Board.--No person in the United States shall arrange, offer, 
advertise, or provide passage on a vessel having berth or 
stateroom accommodations for fifty or more passengers and which 
is to embark passengers at United States ports without there 
first having been filed with the [Federal Maritime Commission] 
Intermodal Transportation Board such information as the 
[Commission] Board may deem necessary to establish the 
financial responsibility of the person arranging, offering, 
advertising, or providing such transportation, or in lieu 
thereof a copy of a bond or other security, in such form as the 
[Commission,] Board, by rule or regulation, may require and 
accept, for indemnification of passengers for nonperformance of 
the transportation.
    (b) Issuance of Bond When Filed With [Commission;] Board; 
Amount of Bond.--If a bond is filed with the [Commission,] 
Board, such bond shall be issued by a bonding company 
authorized to do business in 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.
    (c) Civil Penalties for Violations; Remission or Mitigation 
of Penalties.--Any person who shall violate this section shall 
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] 
Intermodal Transportation Board. These penalties may be 
remitted or mitigated by the [Federal Maritime Commission] 
Intermodal Transportation Board upon such terms as it in its 
discretion shall deem proper.
    (d) Rules and Regulations.--The [Federal Maritime 
Commission] Intermodal Transportation Board is authorized to 
prescribe such regulations as may be necessary to carry out the 
provisions of this section. The provisions of the Shipping Act 
of 1984 shall apply with respect to proceedings conducted by 
the [Commission] Board under this section.
    (e) Refusal of Departure Clearance.--At the port or place 
of departure from the United States of any vessel described in 
subsection (a) of this section, the Customs Service shall 
refuse the clearance required by section 4197 of the Revised 
Statutes (46 U.S.C. 91) [46 U.S.C. Appx. 91] to any such vessel 
which does not have evidence furnished by the [Federal Maritime 
Commission] Intermodal Transporation Board that the provisions 
of this section have been complied with.

                 Section 19, Merchant Marine Act, 1920

                          [46 U.S.C. App. 876]

Sec. 876. Power of Secretary and [Commission] Board to make rules and 
                    regulations

    [(1)] (a) The Secretary of Transportation is authorized and 
directed in aid of the accomplishment of the purposes of this 
Act--
    [(a)] (1) To make all necessary rules and regulations to 
carry out the provisions of this Act;
And the [Federal Maritime Commission] Intermodal Transportation 
Board is authorized and directed in aid of the accomplishment 
of the purposes of this Act:
    [(b)] (2) To make rules and regulations affecting shipping 
in the foreign trade not in conflict with law in order to 
adjust or meet general or special conditions unfavorable to 
shipping in the foreign trade, whether in any particular trade 
or upon anyparticular route or in commerce generally, including 
intermodal movements, terminal operations, cargo solicitation, 
[forwarding and] agency services, [non-vessel-operating common carrier 
operations,] ocean transportation intermediary services and operations, 
and other activities and services integral to transportation systems, 
and which arise out of or result from foreign laws, rules, or 
regulations or from competitive [methods or practices] methods, pricing 
practices, or other practices employed by owners, operators, agents, or 
masters of vessels of a foreign country; and
          [(c)] (3) To request the head of any department, 
        board, bureau, or agency of the Government to suspend, 
        modify, or annul rules or regulations which have been 
        established by such department, board, bureau, or 
        agency, or to make new rules or regulations affecting 
        shipping in the foreign trade other than such rules or 
        regulations relating to the Public Health Service, the 
        Consular Service, and the Steamboat Inspection Service.
  [(2)] (b) No rule or regulation shall be established by any 
department, board, bureau, or agency of the Government which 
affect [affects] shipping in the foreign trade, except rules or 
regulations affecting the Public Health Service, the Consular 
Service, and the Steamboat Inspection Service, until such rule 
or regulation has been submitted to the board for its approval 
and final action has been taken thereon by the board or the 
President.
  [(3)] (c) Whenever the head of any department, board, bureau, 
or agency of the Government refuses to suspend, modify, or 
annul any rule or regulation, or make a new rule or regulation 
upon request of the board, as provided in [subdivision (c) of 
paragraph (1)] subsection (a)(3) of this section, or objects to 
the decision of the board in respect to the approval of any 
rule or regulation, as provided in [paragraph (2)] subsection 
(d) of this section, either the board or the head of the 
department, board, bureau, or agency which has established or 
is attempting to establish the rule or regulation in question 
may submit the facts to the President, who is hereby authorized 
to establish or suspend, modify, or annul such rule or 
regulation.
  [(4)] (d) No rule or regulation shall be established which in 
any manner gives vessels owned by the United States any 
preference or favor over those vessels documented under the 
laws of the United States and owned by persons who are citizens 
of the United States.
  [(5)] (e) The [Commission] Board may initiate a rule or 
regulation under [paragraph (1)(b)] subsection (a)(2) of this 
section either on its own motion or pursuant to a petition. Any 
person, including a common carrier, tramp operator, bulk 
operator, shipper, shippers' association, ocean [freight 
forwarder,] transportation intermediary, marine terminal 
operator, or any component of the Government of the United 
States, may file a petition for relief under [paragraph (1)(b) 
of this section] that subsection.
  [(6)] (f) In furtherance of the purposes of [paragraph 
(1)(b)] subsection (a)(2) of this section--
          [(a)] (1) the [Commission] Board may, by order, 
        require any person (including any common carrier, tramp 
        operator, bulk operator, shipper, shippers' 
        association, ocean [freight forwarder,] transporation 
        intermediary, or marine terminal operator, or an 
        officer, receiver, trustee, lessee, agent, or employee 
        thereof) to file with the [Commission] Board a report, 
        answers to questions, documentary material, or other 
        information which the [Commission] Board considers 
        necessary or appropriate;
          [(b)] (2) the [Commission] Board may require a report 
        or answers to questions to be made under oath;
          [(c)] (3) the [Commission] Board may prescribe the 
        form and the time for response to a report and answers 
        to questions; and
          [(d)] (4) a person who fails to file a report, 
        answer, documentary material, or other information 
        required under this paragraph 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.
  [(7)] (g) In proceedings under [paragraph (1)(b)] subsection 
(a)(2) of this section--
          [(a)] (1) the [Commission] Board may authorize a 
        party 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;
          [(b)] (2) the [Commission] Board may by subpoena 
        compel the attendance of witnesses and production of 
        books, papers, documents, and other evidence;
          [(c)] (3) subject to funds being provided by 
        appropriations Acts, witnesses are, unless otherwise 
        prohibited by law, entitled to the same fees and 
        mileage as in the courts of the United States;
          [(d)] (4) for failure to supply information ordered 
        to be produced or compelled by subpoena under 
        subdivision (b), the [Commission] Board may--
                  [(i)] (A) after notice and an opportunity for 
                hearing, suspend [tariffs of a common carrier] 
                tariffs and service contracts of a common 
                carrier or that common carrier's right to [use 
                the tariffs of conferences] use tariffs of 
                conferences and service contracts of agreements 
                of which it is a member, or
                  [(ii)] (B) assess a civil penalty of not more 
                than $5,000 for each day that the information 
                is not provided; and
          [(e)] (5) when a person violates an order of the 
        [Commission] Board or fails to comply with a subpoena, 
        the [Commission] Board may seek enforcement by a United 
        States district court having jurisdiction over the 
        parties, and if, after hearing, the court determines 
        that the order was regularly made and duly issued, it 
        shall enforce the order by an appropriate injunction or 
        other process, mandatory or otherwise.
  [(8)] (h) Notwithstanding any other law, the [Commission] 
Board may refuse to disclose to the public a response or other 
information provided under the terms of this section.
  [(9)] (i) If the [Commission] Board finds that conditions 
that are unfavorable to shipping under [paragraph (1)(b)] 
subsection (a)(2) of this section exist, the [Commission] Board 
may--
          [(a)] (1) limit sailings to and from United States 
        ports or the amount or type of cargo carried;
          [(b)] (2) suspend, in whole or in part, [tariffs 
        filed with the [Commission] Board] tariffs and service 
        contracts for carriage to or from United States ports, 
        including a common carrier's right to [use the tariffs 
        of conferences] use tariffs of conferences and service 
        contracts of agreements in United States trades of 
        which it is a member for any period the [Commission] 
        Board specifies;
          [(c)] (3) suspend, in whole or in part, an ocean 
        common carrier's right to operate under an agreement 
        filed with the [Commission] Board, including any 
        agreement authorizing preferential treatment at 
        terminals, preferential terminal leases, space 
        chartering, or pooling of cargoes or revenue with other 
        ocean common carriers;
          [(d)] (4) impose a fee, not to exceed $1,000,000 per 
        voyage; or
          [(e)] (5) take any other action the [Commission] 
        Board finds necessary and appropriate to adjust or meet 
        any condition unfavorable to shipping in the foreign 
        trade of the United States.
  [(10)] (j) Upon request by the [Commission] Board--
          [(a)] (1) the collector of customs at the port or 
        place of destination in the United States shall refuse 
        the clearance required by section 4197 of the Revised 
        Statutes (46 App. U.S.C. 91) to a vessel of a country 
        that is named in a rule or regulation issued by the 
        [Commission] Board under [paragraph (1) (b)] subsection 
        (a)(2) of this section, and shall collect any fees 
        imposed by the [Commission] Board under [paragraph (9) 
        (d)] subsection (i)(4) of this section; and
          [(b)] (2) the Secretary of the department in which 
        the Coast Guard is operating shall deny entry for 
        purpose of oceanborne trade, of a vessel of a country 
        that is named in a rule or regulation issued by the 
        [Commission] Board under [paragraph (1)(b)] subsection 
        (a)(2) of this section, to any port or place in the 
        United States or the navigable waters of the United 
        States, or shall detain that vessel at the port or 
        place in the United States from which it is about to 
        depart for another port or place in the United States.
  [(11)] (k) A common carrier that accepts or handles cargo for 
carriage under a [tariff] tariff or service contract that has 
been suspended under [paragraph (7) (d) or (9) (b)] subsection 
(g)(4) or (i)(2) of this section, or after its right to use 
another [tariff] tariff or service contract has been suspended 
under those [paragraphs,] subsections 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] tariff or service 
contract.
  [(12)] (l) The [Commission] Board may consult with, seek the 
cooperation of, or make recommendations to other appropriate 
Government agencies prior to taking any action under this 
section.

                    Section 2, Shipping Act of 1984

                         [46 U.S.C. App. 1701]

Sec. 1701. Declaration of policy

    The purposes of this Act are--
          (1) to establish a nondiscriminatory regulatory 
        process for the common carriage of goods by water in 
        the foreign commerce of the United States with a 
        minimum of government intervention and regulatory 
        costs;
          (2) to provide an efficient and economic 
        transportation system in the ocean commerce of the 
        United States that is, insofar as possible, in harmony 
        with, and responsive to, international shipping 
        practices; [and]
          (3) to encourage the development of an economically 
        sound and efficient United States-flag liner fleet 
        capable of meeting national security [needs.] needs; 
        and
          (4) to promote the growth and development of United 
        States exports through competitive and efficient ocean 
        transportation and by placing a greater reliance on the 
        marketplace.

                    Section 3, Shipping Act of 1984

                         [46 U.S.C. App. 1702]

Sec. 1702. Definitions

  As used in this Act--
          (1) ``agreement'' means an understanding, 
        arrangement, or association (written or oral) and any 
        modification or cancellation thereof; but the term does 
        not include a maritime labor agreement.
          (2) ``antitrust laws'' means the Act of July 2, 1890 
        (ch. 647, 26 Stat. 209), as amended; the Act of October 
        15, 1914 (ch. 323, 38 Stat. 730), as amended; the 
        Federal Trade Commission Act (38 Stat. 717) [15 U.S.C. 
        41 et seq.], 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), as amended; the Antitrust Civil Process Act (76 
        Stat. 548) [15 U.S.C. 1311 et seq.], as amended; and 
        amendments and Acts supplementary thereto.
          (3) ``assessment agreement'' means an agreement, 
        whether part of a collective-bargaining agreement or 
        negotiated separately, to the extent that it provides 
        for the funding of 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.
          (4) ``Board'' means the Intermodal Transportation 
        Board.
          [(4)] (5)  ``bulk cargo'' means cargo that is loaded 
        and carried in bulk without mark or count.
          [(5) ``Commission'' means the Federal Maritime 
        Commission.]
          (6) ``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--
                  (A) assumes responsibility for the 
                transportation from the port or point of 
                receipt to the port or point of destination, 
                and
                  (B) 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. As used in this paragraph, ``chemical 
                parcel-tanker'' means a vessel whose cargo-
                carrying capability consists of individual 
                cargo tanks for bulk chemicals that are a 
                permanent part of the vessel, that have 
                segregation capability with piping systems to 
                permit simultaneous carriage of several bulk 
                chemical cargoes with minimum risk of cross-
                contamination, and that has a valid certificate 
                of fitness under the International Maritime 
                Organization Code for the Construction and 
                Equipment of Ships Carrying Dangerous Chemicals 
                in Bulk.
          (7) ``conference'' means an association of ocean 
        common carriers permitted, pursuant to an approved or 
        effective agreement, to engage in concerted activity 
        and to utilize a common tariff; but the term does not 
        include a joint service, consortium, pooling, sailing, 
        or transshipment arrangement.
          (8) ``controlled carrier'' means an ocean common 
        carrier that is, or whose operating assets are, 
        directly or indirectly, owned or controlled by [the 
        government under whose registry the vessels of the 
        carrier operate;] a government; ownership or control by 
        a government shall be deemed to exist with respect to 
        any carrier if--
                  (A) 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
                  (B) 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.
          [(9) ``deferred rebate'' means a return by a common 
        carrier of any portion of the freight money to a 
        shipper as a consideration for that shipper giving all, 
        or any portion, of its shipments to that or any other 
        common carrier, or for any other purpose, the payment 
        of which is deferred beyond the completion of the 
        service for which it is paid, and is made only if, 
        during both the period for which computed and the 
        period of deferment, the shipper has complied with the 
        terms of the rebate agreement or arrangement.]
          (9) ``deferred rebate'' means a return by a common 
        carrier of any portion of freight money to a shipper as 
        a consideration for that shipper giving all, or any 
        portion, of its shipments to that or any other common 
        carrier over a fixed period of time, the payment of 
        which is deferred beyond the completion of service for 
        which it is paid, and is made only if the shipper has 
        agreed to make a further shipment or shipments with 
        that or any other common carrier.
          [(10) ``fighting ship'' means a vessel used in a 
        particular trade by an ocean common carrier or group of 
        such carriers for the purpose of excluding, preventing, 
        or reducing competition by driving another ocean common 
        carrier out of that trade.]
          [(11)] (10)  ``forest products'' means forest 
        products [in an unfinished or semifinished state that 
        require special handling moving in lot sizes too large 
        for a container,] 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 board in rolls, and 
        paper in rolls.] paper and paper board in rolls or in 
        pallet or skid-sized sheets.
          [(12)] (11)  ``inland division'' means the amount 
        paid by a common carrier to an inland carrier for the 
        inland portion of through transportation offered to the 
        public by the common carrier.
          [(13)] (12)  ``inland portion'' means the charge to 
        the public by a common carrier for the nonocean portion 
        of through transportation.
          [(14)] (13)  ``loyalty contract'' means a contract 
        with an ocean common carrier or [conference, other than 
        a service contract or contract based upon time-volume 
        rates,] agreement by which a shipper obtains lower 
        rates by committing all or a fixed portion of its cargo 
        to that carrier or [conference.] agreement and the 
        contract provides for a deferred rebate arrangement.
          [(15)] (14)  ``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.] 
        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.
          [(16)] (15)  ``maritime labor agreement'' means a 
        collective-bargaining agreement between an employer 
        subject to this 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 multiemployer bargaining group, or 
        an agreement specifically implementing provisions of 
        such a collective-bargaining agreement or providing for 
        the formation, financing, or administration of a 
        multiemployer bargaining group; but the term does not 
        include an assessment agreement.
          [(17) ``non-vessel-operating common carrier'' 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.]
          [(18)] (16)  ``ocean common carrier'' means a vessel-
        operating common carrier.
          [(19) ``ocean freight forwarder'' means a person in 
        the United States that--
                  [(A) dispatches shipments from the United 
                States via common carriers and books or 
                otherwise arranges space for those shipments on 
                behalf of shippers; and
                  [(B) processes the documentation or performs 
                related activities incident to those 
                shipments.]
          (17) ``ocean transportation intermediary'' means an 
        ocean freight forwarder or a non-vessel-operating 
        common carrier. For purposes of this paragraph, the 
        term
                  (A) ``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
                  (B) ``non-vessel-operating common carrier'' 
                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.
          [(20)] (18)  ``person'' includes individuals, 
        corporations, partnerships, and associations existing 
        under or authorized by the laws of the United States or 
        of a foreign country.
          [(21) ``service contract'' means a contract between a 
        shipper and an ocean common carrier or conference in 
        which the shipper makes a commitment to provide a 
        certain minimum quantity of cargo over a fixed time 
        period, and the ocean common carrier or conference 
        commits to a certain rate or rate schedule as well as 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 either party.]
          (19) ``service contract'' means a written contract, 
        other than a bill of lading or a receipt, between one 
        or more shippers and an individual 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 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.
          [(22)] (20)  ``shipment'' means all of the cargo 
        carried under the terms of a single bill of lading.
          [(23) ``shipper'' means an owner or person for whose 
        account the ocean transportation of cargo is provided 
        or the person to whom delivery is to be made.]
          (21) ``shipper'' means--
                  (A) a cargo owner;
                  (B) the person for whose account the ocean 
                transportation is provided;
                  (C) the person to whom delivery is to be 
                made;
                  (D) a shippers' association; or
                  (E) an ocean transportation intermediary, as 
                defined in paragraph (17)(B) of this section, 
                that accepts responsibility for payment of all 
                charges applicable under the tariff or service 
                contract.
          [(24)] (22)  ``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.
          [(25)] (23)  ``through rate'' means the single amount 
        charged by a common carrier in connection with through 
        transportation.
          [(26)] (24)  ``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 a common carrier, between a 
        United States point or port and a foreign point or 
        port.
          [(27)] (25)  ``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.

                    Section 4, Shipping Act of 1984

                         [46 U.S.C. App. 1703]

Sec. 1703. Agreements within scope of [the Act] 46 U.S.C. App. 1701 et 
                    seq.

  (a) Ocean Common Carriers.--This Act 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 or non-vessel-operating 
        common carriers;] operators;
          (6) control, regulate, or prevent competition in 
        international ocean transportation; [and] or
          (7) regulate or prohibit their use of service 
        contracts.
  (b) Marine Terminal Operators.--This Act applies to 
agreements [(to the extent the agreements involve ocean 
transportation in the foreign commerce of the United States)] 
among marine terminal operators and among one or more marine 
terminal operators and one or more ocean common carriers to--
          (1) discuss, fix, or regulate rates or other 
        conditions of service; and
          (2) engage in exclusive, preferential, or cooperative 
        working [arrangements.] arrangements, to the extent 
        that such agreements involve ocean transportation in 
        the foreign commerce of the United States.
  (c) Acquisitions.--This Act does not apply to an acquisition 
by any person, directly or indirectly, of any voting security 
or assets of any other person.

                    Section 5, Shipping Act of 1984

                         [46 U.S.C. App. 1704]

Sec. 1704. Agreements

  (a) Filing Requirements.--A true copy of every agreement 
entered into with respect to an activity described in section 4 
(a) or (b) of this Act [46 U.S.C. App. 1703 (a) or (b)] shall 
be filed with the [Commission] Board, except agreements related 
to transportation to be performed within or between foreign 
countries and agreements among common carriers to establish, 
operate, or maintain a marine terminal in the United States. In 
the case of an oral agreement, a complete memorandum specifying 
in detail the substance of the agreement shall be filed. The 
[Commission] Board may by regulation prescribe the form and 
manner in which an agreement shall be filed and the additional 
information and documents necessary to evaluate the agreement.
  (b) Conference Agreements.--Each conference agreement must--
          (1) state its purpose;
          (2) provide reasonable and equal terms and conditions 
        for admission and readmission to conference membership 
        for any ocean common carrier willing to serve the 
        particular trade or route;
          (3) permit any member to withdraw from conference 
        membership upon reasonable notice without penalty;
          (4) at the request of any member, require an 
        independent neutral body to police fully the 
        obligations of the conference and its members;
          (5) prohibit the conference from engaging in conduct 
        prohibited by section 10(c) (1) or (3) of this Act [46 
        U.S.C. App. 1709(c) (1), (3)];
          (6) provide for a consultation process designed to 
        promote--
                  (A) commercial resolution of disputes, and
                  (B) cooperation with shippers in preventing 
                and eliminating malpractices;
          (7) establish procedures for promptly and fairly 
        considering shippers' requests and complaints; [and]
          [(8) provide that any member of the conference may 
        take independent action on any rate or service item 
        required to be filed in a tariff under section 8(a) of 
        this Act [46 U.S.C. App. 1707(a)] upon not more than 10 
        calendar days' notice to the conference and that the 
        conference will include the new rate or service item 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 or service item 
        on or after its effective date, in lieu of the existing 
        conference tariff provision for that rate or service 
        item.]
          (8) provide that any member of the conference may 
        take independent action on any rate or service item 
        upon not more than 5 calendar days' notice to the 
        conference and that, except for exempt commodities not 
        published in the conference tariff, the conference will 
        include the new rate or service item 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, in lieu of the existing conference 
        tariff provision for that rate or service item; and
          (9) prohibit the agreement from--
                  (A) prohibiting or restricting the members of 
                the agreement from engaging in negotiations for 
                service contracts with 1 or more shippers;
                  (B) requiring a member of the agreement to 
                disclose a negotiation on a service contract, 
                or the terms and conditions of a service 
                contract, other than those specified by section 
                8(c)(3) of this Act; and
                  (C) issuing mandatory rules or requirements 
                affecting an agreement member's right to 
                negotiate and enter into service contracts.
An agreement may issue voluntary guidelines relating to the 
terms and procedures of agreement members' service contracts if 
the guidelines explicitly state the right of members of the 
agreement not to follow the guidelines and the guidelines are 
filed with the agreement.
  (c) Interconference Agreements.--Each agreement between 
carriers not members of the same conference must provide the 
right of independent action for each carrier. Each agreement 
between conferences must provide the right of independent 
action for each conference.
  (d) Assessment Agreements.--Assessment agreements shall be 
filed with the [Commission] Board and become effective on 
filing. The [Commission] Board shall thereafter, upon complaint 
filed within 2 years of the date of the agreement, disapprove, 
cancel, or modify any such agreement, or charge or assessment 
pursuant thereto, that it finds, after notice and hearing, to 
be unjustly discriminatory or unfair as between carriers, 
shippers, or ports. The [Commission] Board shall issue its 
final decision in any such proceeding within 1 year of the date 
of filing of the complaint. To the extent that an assessment or 
charge is found in the proceeding to be unjustly discriminatory 
or unfair as between carriers, shippers, or ports, the 
[Commission] Board shall remedy the unjust discrimination or 
unfairness for the period of time between the filing of the 
complaint and the final decision by means of assessment 
adjustments. These adjustments shall be implemented by 
prospective credits or debits to future assessments or charges, 
except in the case of a complainant who has ceased activities 
subject to the assessment or charge, in which case reparation 
may be awarded. Except for this subsection and section 7(a) of 
this Act [46 U.S.C. App. 1706(a)], [this Act, the Shipping Act, 
1916, and the Intercoastal Shipping Act, 1933,] this Act and 
the Shipping Act, 1916 do not apply to assessment agreements.
  (e) Maritime Labor Agreements.--This Act and the Shipping 
Act, 1916 do not apply to maritime labor agreements. This 
subsection does not exempt from this Act or the Shipping Act, 
1916 any rates, charges, regulations, or practices of a common 
carrier that are required to be set forth in a tariff, whether 
or not those rates, charges, regulations, or practices arise 
out of, or are otherwise related to, a maritime labor 
agreement.

                    Section 6, Shipping Act of 1984

                         [46 U.S.C. App. 1705]

Sec.  1705. Action on agreements

  (a) Notice.--Within 7 days after an agreement is filed, the 
[Commission] Board shall transmit a notice of its filing to the 
Federal Register for publication.
  (b) Review Standard.--The [Commission] Board shall reject any 
agreement filed under section 5(a) of this Act [46 U.S.C. App. 
1704(a)] that, after preliminary review, it finds does not meet 
the requirements of section 5 [46 U.S.C. App. 1704]. The 
[Commission] Board shall notify in writing the person filing 
the agreement of the reason for rejection of the agreement.
  (c) Review and Effective Date.--Unless rejected by the 
[Commission] Board under subsection (b) , agreements, other 
than assessment agreements, shall become effective--
          (1) on the 45th day after filing, or on the 30th day 
        after notice of the filing is published in the Federal 
        Register, whichever day is later; or
          (2) if additional information or documentary material 
        is requested under subsection (d) , on the 45th day 
        after the [Commission] Board receives--
                  (A) all the additional information and 
                documentary material requested; or
                  (B) if the request is not fully complied 
                with, the information and documentary material 
                submitted and a statement of the reasons for 
                noncompliance with the request. The period 
                specified in paragraph (2) may be extended only 
                by the United States District Court for the 
                District of Columbia upon an application of the 
                [Commission] Board under subsection (i).
  (d) Additional Information.--Before the expiration of the 
period specified in subsection (c) (1) , the [Commission] Board 
may request from the person filing the agreement any additional 
information and documentary material it deems necessary to make 
the determinations required by this section.
  (e) Request for Expedited Approval.--The [Commission] Board 
may, upon request of the filing party, shorten the review 
period specified in subsection (c) , but in no event to a date 
less than 14 days after notice of the filing of the agreement 
is published in the Federal Register.
  (f) Term of Agreements.--The [Commission] Board may not limit 
the effectiveness of an agreement to a fixed term.
  (g) Substantially Anticompetitive Agreements.--If, at any 
time after the filing or effective date of an agreement, the 
[Commission] Board determines that the agreement is likely, by 
a reduction in competition, to produce an unreasonable 
reduction in transportation service or an unreasonable increase 
in transportation cost, it may, after notice to the person 
filing the agreement, seek appropriate injunctive relief under 
subsection (h) .
  (h) Injunctive Relief.--The [Commission] Board may, upon 
making the determination specified in subsection (g) , bring 
suit in the United States District Court for the District of 
Columbia to enjoin operation of the agreement. The court may 
issue a temporary restraining order or preliminary injunction 
and, upon a showing that the agreement is likely, by a 
reduction in competition, to produce an unreasonable reduction 
in transportation service or an unreasonable increase in 
transportation cost, may enter a permanent injunction. In a 
suit under this subsection, the burden of proof is on the 
[Commission] Board. The court may not allow a third party to 
intervene with respect to a claim under this subsection.
  (i) Compliance with Informational Needs.--If a person filing 
an agreement, or an officer, director, partner, agent, or 
employee thereof, fails substantially to comply with a request 
for the submission of additional information or documentary 
material within the period specified in subsection (c), the 
United States District Court for the District of Columbia, at 
the request of the [Commission] Board--
          (1) may order compliance;
          (2) shall extend the period specified in subsection 
        (c)(2) until there has been substantial compliance; and
          (3) may grant such other equitable relief as the 
        court in its discretion determines necessary or 
        appropriate.
  (j) Nondisclosure of Submitted Material.--Except for an 
agreement filed under section 5 of this Act [46 U.S.C. App. 
1704], information and documentary material filed with the 
[Commission] Board under section 5 or 6 [46 U.S.C. App. 1704 
and this section] is exempt from disclosure under section 552 
of title 5, United States Code [5 U.S.C. 552] and may not be 
made public except as may be relevant to an administrative or 
judicial action or proceeding. This section does not prevent 
disclosure to either body of Congress or to a duly authorized 
committee or subcommittee of Congress.
  (k) Representation.--Upon notice to the Attorney General, the 
[Commission] Board may represent itself in district court 
proceedings under subsections (h) and (i) of this section and 
section 11(h) of this Act [46 U.S.C. App. 1710(h)]. With the 
approval of the Attorney General, the [Commission] Board may 
represent itself in proceedings in the United States Courts of 
Appeal under subsections (h) and (i) of this section and 
section 11(h) of this Act [46 U.S.C. App. 1710(h)].

                    Section 7, Shipping Act of 1984

                         [46 U.S.C. App. 1706]

Sec.  1706. Exemption from antitrust laws

  (a) In General.--The antitrust laws do not apply to--
          (1) any agreement that has been filed under section 5 
        of this Act [46 U.S.C. App. 1704] and is effective 
        under section 5(d) or section 6 [46 U.S.C. App. 1704(d) 
        , 1705], or is exempt under section 16 of this Act [46 
        U.S.C. App. 1715] from any requirement of this Act;
          (2) any activity or agreement within the scope of 
        this Act, whether permitted under or prohibited by this 
        Act, undertaken or entered into with a reasonable basis 
        to conclude that (A) it is pursuant to an agreement on 
        file with the [Commission] Board and in effect when the 
        activity took place, or (B) it is exempt under section 
        16 of this Act [46 U.S.C. App. 1715] from any filing or 
        publication requirement of this Act;
          (3) any agreement or activity that relates to 
        transportation services within or between foreign 
        countries, whether or not via the United States, unless 
        that agreement or activity has a direct, substantial, 
        and reasonably foreseeable effect on the commerce of 
        the United States;
          (4) any agreement or activity concerning the foreign 
        inland segment of through transportation that is part 
        of transportation provided in a United States import or 
        export trade;
          (5) any agreement or activity to provide or furnish 
        wharfage, dock, warehouse, or other terminal facilities 
        outside the United States; or
          (6) subject to section 20(e)(2) of this Act [46 
        U.S.C. App. 1719(e)(2)], any agreement, modification, 
        or cancellation approved by the Federal Maritime 
        Commission before the effective date of this Act under 
        section 15 of the Shipping Act, 1916 [46 U.S.C. App. 
        814], or permitted under section 14b thereof, and any 
        properly published tariff, rate, fare, or charge, 
        classification, rule, or regulation explanatory thereof 
        implementing that agreement, modification, or 
        cancellation.
  (b) Exceptions.--This Act does not extend antitrust 
immunity--
          (1) to any agreement with or among air carriers, rail 
        carriers, motor carriers, or common carriers by water 
        not subject to this Act with respect to transportation 
        within the United States;
          (2) to any discussion or agreement among common 
        carriers that are subject to this Act regarding the 
        inland divisions (as opposed to the inland portions) of 
        through rates within the United States; [or]
          (3) to any agreement among common carriers subject to 
        this Act to establish, operate, or maintain a marine 
        terminal in the United [States.] States; or
          (4) to any loyalty contract.
  (c) Limitations.--
          (1) Any determination by an agency or court that 
        results in the denial or removal of the immunity to the 
        antitrust laws set forth in subsection (a) shall not 
        remove or alter the antitrust immunity for the period 
        before the determination.
          (2) No person may recover damages under section 4 of 
        the Clayton Act (15 U.S.C. 15) [15 U.S.C. 15], or 
        obtain injunctive relief under section 16 of that Act 
        (15 U.S.C. 26) [15 U.S.C. 26], for conduct prohibited 
        by this Act.

                    Section 8, Shipping Act of 1984

                         [46 U.S.C. App. 1707]

Sec.  1707. Tariffs

  (a) In General.--
          (1) Except with regard to bulk cargo, forest 
        products, recycled metal scrap, new assembled motor 
        vehicles, waste paper, and paper waste, each common 
        carrier and conference shall [file with the Commission, 
        and] keep open to public [inspection,] inspection in an 
        automated tariff system, tariffs showing all its rates, 
        charges, classifications, rules, and practices between 
        all points or ports on its own route and on any through 
        transportation route that has been established. 
        However, common carriers shall not be required to state 
        separately or otherwise reveal in [tariff filings] 
        tariffs the inland divisions of a through rate. Tariffs 
        shall--
                  (A) state the places between which cargo will 
                be carried;
                  (B) list each classification of cargo in use;
                  (C) state the level of ocean freight 
                forwarder compensation, if any, by a carrier or 
                conference;
                  (D) 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 or the aggregate 
                of the rates or charges; [and]
                  (E) include sample copies of any [loyalty 
                contract,] bill of lading, contract of 
                affreightment, or other document evidencing the 
                transportation [agreement.] agreement; and
                  (F) include copies of any loyalty contract, 
                omitting the shipper's name.
          [(2) Copies of tariffs shall be made available to any 
        person, and a reasonable charge may be assessed for 
        them.]
          (2) Tariffs shall be made available electronically to 
        any person, without time, quantity, or other 
        limitation, through appropriate access from remote 
        locations, and a reasonable charge may be assessed for 
        such access. No charge may be assessed a Federal agency 
        for such access.
  (b) Time-volume Rates.--Rates shown in tariffs filed under 
subsection (a) may vary with the volume of cargo offered over a 
specified period of time.
  [(c) Service Contracts.--An ocean common carrier or 
conference may enter into a service contract with a shipper or 
shippers' association subject to the requirements of this Act. 
Except for service contracts dealing with bulk cargo, forest 
products, recycled metal scrap, waste paper, or paper waste, 
each contract entered into under this subsection shall be filed 
confidentially with the Commission, and at the same time, a 
concise statement of its essential terms shall be filed with 
the Commission and made available to the general public in 
tariff format, and those essential terms shall be available to 
all shippers similarly situated. The essential terms shall 
include--
          [(1) the origin and destination port ranges in the 
        case of port-to-port movements, and the origin and 
        destination geographic areas in the case of through 
        intermodal movements;
          [(2) the commodity or commodities involved;
          [(3) the minimum volume;
          [(4) the line-haul rate;
          [(5) the duration;
          [(6) service commitments; and
          [(7) the liquidated damages for nonperformance, if 
        any.
[The exclusive remedy for a breach of a contract entered into 
under this subsection shall be an action in an appropriate 
court, unless the parties otherwise agree.]
  (c) Service Contracts._
          (1) In general._An individual 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 this Act. The exclusive 
        remedy for a breach of a contract entered into under 
        this subsection shall be an action in an appropriate 
        court, unless the parties otherwise agree. In no case 
        may the contract dispute resolution forum be affiliated 
        with, or controlled by, any party to the contract.
          (2) Filing requirements._Except for service contracts 
        dealing with bulk cargo, forest products, recycled 
        metal scrap, new assembled motor vehicles, waste paper, 
        or paper waste, each contract entered into under this 
        subsection by an individual common carrier or an 
        agreement shall be filed confidentially with the 
        [Commission] Board. Each service contract shall include 
        the following essential terms--
                  (A) the origin and destination port ranges;
                  (B) the origin and destination geographic 
                areas, in the case of through inter modal 
                movements;
                  (C) the commodity or commodities involved;
                  (D) the minimum volume or portion;
                  (E) the line-haul rate;
                  (F) the duration;
                  (G) service commitments; and
                  (H) the liquidated damages for 
                nonperformance, if any.
          (3) Publication of certain essential terms._When a 
        service contract is filed confidentially with the 
        [Commission] Board, a concise statement of the terms 
        described in paragraphs (2)(C), (D), and (F) and the 
        United States port range shall be published and made 
        available to the public in tariff format.
          (4) Disclosure of certain unpublished terms._A party 
        to a collective-bargaining agreement may petition the 
        [Commission] Board for the disclosure of any service 
        contract terms not required to be published by 
        paragraph (3) which that party considers to be in 
        violation of that agreement. The petition shall include 
        evidence demonstrating that
                  (A) a specific ocean common carrier is a 
                party to a collective-bargaining agreement with 
                the petitioner;
                  (B) the ocean common carrier may be violating 
                the terms and conditions of that agreement; and
                  (C) the alleged violation involves the moment 
                of cargo subject to this Act.
          (5) Action by Commission] Board.--The [Commission] 
        Board, after reviewing a petition under paragraph (4) , 
        the evidence provided with the petition, and the filed 
        service contracts of the carrier named in the petition, 
        may disclose to the petitioner only such unpublished 
        terms of that carrier's service contracts that the 
        [Commission] Board reasonably believes may constitute a 
        violation of the collective-bargaining agreement. The 
        [Commission] Board may not disclose any unpublished 
        service contract terms with respect to a collective-
        bargaining agreement term or condition determined by 
        the [Commission] Board to be in violation of this Act.
  (d) Rates.--No new or initial rate or change in an existing 
rate that results in an increased cost to the shipper may 
become effective earlier than [30 days after filing with the 
Commission.] 30 calendar days after publication. The 
[Commission] Board, for good cause, may allow such a new or 
initial rate or change to become effective in less than 30 
calendar days. A change in an existing rate that results in a 
decreased cost to the shipper may become effective upon 
[publication and filing with the Commission.] publication.
  [(e) Refunds.--The Commission may, upon application of a 
carrier or shipper, permit a common carrier or conference to 
refund a portion of freight charges collected from a shipper or 
to waive the collection of a portion of the charges from a 
shipper if--
          [(1) there is an error in a tariff of a clerical or 
        administrative nature or an error due to inadvertence 
        in failing to file a new tariff and the refund will not 
        result in discrimination among shippers, ports, or 
        carriers;
          [(2) the common carrier or conference has, prior to 
        filing an application for authority to make a refund, 
        filed a new tariff with the Board that sets forth the 
        rate on which the refund or waiver would be based;
          [(3) the common carrier or conference agrees that if 
        permission is granted by the Commission, an appropriate 
        notice will be published in the tariff, or such other 
        steps taken as the Commission may require that give 
        notice of the rate on which the refund or waiver would 
        be based, and additional refunds or waivers as 
        appropriate shall be made with respect to other 
        shipments in the manner prescribed by the Commission in 
        its order approving the application; and
          [(4) the application for refund or waiver is filed 
        with the Commission within 180 days from the date of 
        shipment.]
  (e) Marine Terminal Operator Schedules._A marine terminal 
operator may make available to the public, subject to section 
10(d) of this Act, a schedule of rates, regulations, and 
practices pertaining to receiving, delivering, handling, or 
storing property at its marine terminal. Any such schedule made 
available to the public shall be enforceable by an appropriate 
court as an implied contract without proof of actual knowledge 
of its provisions.
  [(f) Form.--The Commission may by regulation prescribe the 
form and manner in which the tariffs required by this section 
shall be published and filed. The Commission may reject a 
tariff that is not filed in conformity with this section and 
its regulations. Upon rejection by the Commission, the tariff 
is void and its use is unlawful.]
  (f) Regulations._The [Commission] Board shall by regulation 
prescribe the requirements for the accessibility and accuracy 
of automated tariff systems established under this section. The 
[Commission] Board may, after periodic review, prohibit the use 
of any automated tariff system that fails to meet 
therequirements established under this section. The 
[Commission] Board may not require a common carrier to provide 
a remote terminal for access under subsection (a) (2) . The 
[Commission] Board shall by regulation prescribe the form and 
manner in which marine terminal operator schedules authorized 
by this section shall be published.

       Section 502, High Seas Driftnet Fisheries Enforcement Act

[Sec.  1707a. Automated tariff filing and information system

  [(a) Definitions.--In this section, the following definitions 
apply:
          [(1) Commission. The term ``Commission'' means the 
        Federal Maritime Commission.
          [(2) Common carrier.--The term ``common carrier'' 
        means a common carrier under section 3 of the Shipping 
        Act of 1984 (46 App. U.S.C. 1702), a common carrier by 
        water in interstate commerce under the Shipping Act, 
        1916 (46 App. U.S.C. 801 et seq.), or a common carrier 
        by water in intercoastal commerce under the 
        Intercoastal Shipping Act, 1933 (46 App. U.S.C. 843 et 
        seq.).
          [(3) Conference.--The term ``conference'' has the 
        meaning given that term under section 3 of the Shipping 
        Act of 1984 (46 App. U.S.C. 1702).
          [(4) Essential terms of service contracts.--The term 
        ``essential terms of service contracts'' means the 
        essential terms that are required to be filed with the 
        Commission and made available under section 8(c) of the 
        Shipping Act of 1984 (46 App. U.S.C. 1707(c)).
          [(5) Tariff.--The term ``tariff'' means a tariff of 
        rates, charges, classifications, rules, and practices 
        required to be filed by a common carrier or conference 
        under section 8 of the Shipping Act of 1984 (46 App. 
        U.S.C. 1707), or a rate, fare, charge, classification, 
        rule, or regulation required to be filed by a common 
        carrier or conference under the Shipping Act, 1916 (46 
        U.S.C. 801 et seq.), or the Intercoastal Shipping Act, 
        1933 (46 App. U.S.C. 843 et seq.).
  [(b) Tariff Form and Availability.--
          [(1) Requirement to file. Notwithstanding any other 
        law, each common carrier and conference shall, in 
        accordance with subsection (c), file electronically 
        with the Commission all tariffs, and all essential 
        terms of service contracts, required to be filed by 
        that common carrier or conference under the Shipping 
        Act of 1984 (46 App. U.S.C. 1701 et seq.), the Shipping 
        Act, 1916 (46 App. U.S.C. 801 et seq.), and the 
        Intercoastal Shipping Act, 1933 (46 App. U.S.C. 843 et 
        seq.).
          [(2) Availability of information. The Commission 
        shall make available electronically to any person, 
        without time, quantity, or other limitation, both at 
        the Commission headquarters and through appropriate 
        access from remote terminals--
                  [(A) all tariff information, and all 
                essential terms of service contracts, filed in 
                the Commission's Automated Tariff Filing and 
                Information System database; and
                  [(B) all tariff information in the System 
                enhanced electronically by the Commission at 
                any time.
  [(c) Filing Schedule.--New tariffs and new essential terms of 
service contracts shall be filed electronically not later than 
July 1, 1992. All other tariffs, amendments to tariffs, and 
essential terms of service contracts shall be filed not later 
than September 1, 1992.
  [(d) Fees.--
          [(1) Amount of fee. The Commission shall charge, 
        beginning July 1 of fiscal year 1992 and in fiscal 
        years 1993, 1994, and 1995--
                  [(A) a fee of 46 cents for each minute of 
                remote computer access by any individual of the 
                information available electronically under this 
                section; and
                  [(B) (i) for electronic copies of the 
                Automated Tariff Filing and Information System 
                database (in bulk), or any portion of the 
                database, a fee reflecting the cost of 
                providing those copies, including the cost of 
                duplication, distribution, and user-dedicated 
                equipment; and
                  [(ii) for a person operating or maintaining 
                information in a database that has multiple 
                tariff or service contract information obtained 
                directly or indirectly from the Commission, a 
                fee of 46 cents for each minute that database 
                is subsequently accessed by computer by any 
                individual.
          [(2) Exemption for Federal agencies. A Federal agency 
        is exempt from paying a fee under this subsection.
  [(e) Enforcement.--The Commission shall use systems controls 
or other appropriate methods to enforce subsection (d).
  [(f) Penalties.--
          [(1) Civil penalties. A person failing to pay a fee 
        established under subsection (d) is liable to the 
        United States Government for a civil penalty of not 
        more than $5,000 for each violation.
          [(2) Criminal penalties. A person that willfully 
        fails to pay a fee established under subsection (d) 
        commits a class A misdemeanor.
  [(g) Automatic Filing Implementation.--
          [(1) Certification of software.--Software that 
        provides for the electronic filing of data in the 
        Automated Tariff Filing and Information System shall be 
        submitted to the Commission for certification. Not 
        later than fourteen days after a person submits 
        software to the Commission for certification, the 
        Commission shall--
                  [(A) certify the software if it provides for 
                the electronic filing of data; and
                  [(B) publish in the Federal Register notice 
                of that certification.
          [(2) Repayable advance.--
                  [(A) Availability and use of advance. Upon 
                the date of enactment of this Act [enacted Nov. 
                2, 1992], the Secretary of the Treasury shall 
                make available to the Commission, as a 
                repayable advance, not more than $4,000,000, to 
                remain available until expended. The Commission 
                shall spend these funds to complete and upgrade 
                the capacity of the Automated Tariff Filing and 
                Information System to provide access to 
                information under this section.
                  [(B) Requirement to repay.--
                          [(i) In general.--Any advance made to 
                        the Commission under subparagraph (A) 
                        shall be repaid, with interest, to the 
                        general fund of the Treasury not later 
                        than September 30, 1995.
                          [(ii) Interest.--Interest on any 
                        advance made to the Commission under 
                        subparagraph (A) --
                                  [(I) shall be at a rate 
                                determined by the Secretary of 
                                the Treasury, as of the close 
                                of the calendar month preceding 
                                the month in which the advance 
                                is made, to be equal to the 
                                current average market yield on 
                                outstanding marketable 
                                obligations of the United 
                                States with remaining periods 
                                to maturity comparable to the 
                                anticipated period during which 
                                the advance will be 
                                outstanding; and
                                  [(II) shall be compounded 
                                annually.
          [(3) Use of retained amounts.--Out of amounts 
        collected by the Commission under this section, amounts 
        shall be retained and expended by the Commission for 
        each fiscal year, without fiscal year limitation, to 
        carry out this section and pay back the Secretary of 
        the Treasury for the advance made available under 
        paragraph (2).
          [(4) Deposit in treasury.--Except for the amounts 
        retained by the Commission under paragraph (3), fees 
        collected under this section shall be deposited in the 
        general fund of the Treasury as offsetting receipts.
  [(h) Restriction.--No fee may be collected under this section 
after fiscal year 1995.
  [(i) Conforming Amendment.--Section 2 of the Act of August 
16, 1989 (46 App. U.S.C. 1111c), is repealed.]

                    Section 9, Shipping Act of 1984

                         [46 U.S.C. App. 1708]

Sec.  1708. Controlled carriers

  (a) Controlled Carrier Rates.--No controlled carrier subject 
to this section may maintain rates or charges in its tariffs or 
[service contracts filed with the Commission] service 
contracts, or charge or assess rates, that are below a level 
that is just and reasonable, nor may any such carrier establish 
[or maintain] maintain, or enforce unjust or unreasonable 
classifications, rules, or regulations in those 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. The [Commission] 
Board may, at any time after notice and hearing, [disapprove] 
prohibit the publication or 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 subsection, the burden of proof is on 
the controlled carrier to demonstrate that its rates, charges, 
classifications, rules, or regulations are just and reasonable. 
Rates, charges, classifications, rules, or regulations [filed 
by a controlled carrier that have been rejected, suspended, or 
disapproved by the Commission] that have been suspended or 
prohibited by the [Commission] Board are void and their use is 
unlawful.
  (b) Rate Standards.--For the purpose of this section, in 
determining whether rates, charges, classifications, rules, or 
regulations by a controlled carrier are just and reasonable, 
the [Commission] Board [may take into account appropriate 
factors including, but not limited to, whether--] shall take 
into account whether the rates or charges which have been 
published or assessed or which would result from the pertinent 
classifications, rules, or regulations are below a level which 
is fully compensatory to the controlled carrier based upon that 
carrier's actual costs or upon its constructive costs. For 
purposes of the preceding sentence, the term `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. The [Commission] Board may also 
take into account other appropriate factors, including but not 
limited to, whether--
          [(1) the rates or charges which have been filed or 
        which would result from the pertinent classifications, 
        rules, or regulations are below a level which is fully 
        compensatory to the controlled carrier based upon that 
        carrier's actual costs or upon its constructive costs, 
        which are hereby defined as the costs of another 
        carrier, other than a controlled carrier, operating 
        similar vessels and equipment in the same or a similar 
        trade;]
          [(2) ] (1)  the rates, charges, classifications, 
        rules, or regulations are the same as or similar to 
        those [filed] published or assessed or assessed by 
        other carriers in the same trade;
          [(3) ] (2)  the rates, charges, classifications, 
        rules, or regulations are required to assure movement 
        of particular cargo in the trade; or
          [(4) ] (3)  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.
  (c) Effective Date of Rates.--Notwithstanding section 8(d) of 
this Act [46 U.S.C. App. 1707(d)] and except for service 
contracts, the rates, charges, classifications, rules, or 
regulations of controlled carriers may not, without special 
permission of the [Commission] Board, become effective sooner 
than the 30th day after the date of [filing with the 
Commission.] publication. Each controlled carrier shall, upon 
the request of the [Commission] Board, file, within 20 days of 
request (with respect to its existing or proposed rates, 
charges, classifications, rules, or regulations), 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] Board may reasonably base its determination of the 
lawfulness thereof.
  (d) [Disapproval of Rates.--] Prohibition of Rates._Within 
120 days after the receipt of information requested by the 
[Commission] Board under this section, the [Commission] Board 
shall determine whether the rates, charges, classifications, 
rules, or regulations of a controlled carrier may be unjust and 
unreasonable. Whenever the [Commission] Board is of the opinion 
that the rates, charges, classifications, rules, or regulations 
[filed] published or assessed by a controlled carrier may be 
unjust and unreasonable, the [Commission] Board [may issue] 
shall issue an order to the controlled carrier to show cause 
why those rates, charges, classifications, rules, or 
regulations should not be [disapproved.] prohibited. Pending a 
determination as to their lawfulness in such a proceeding, the 
[Commission] Board may suspend the rates, charges, 
classifications, rules, or regulations at any time before their 
effective date. In the case of rates, charges, classifications, 
rules, or regulations that have already become effective, the 
[Commission] Board may, upon the issuance of an order to show 
cause, suspend those rates, charges, classifications, rules, or 
regulations on not less than [60] 30 days' notice to the 
controlled carrier. No period of suspension under this 
subsection may be greater than 180 days. Whenever the 
[Commission] Board has suspended any rates, charges, 
classifications, rules, or regulations under this subsection, 
the affected controlled carrier may [file] publish new rates, 
charges, classifications, rules, or regulations to take effect 
immediately during the suspension period in lieu of the 
suspended rates, charges, classifications, rules, or 
regulations--except that the [Commission] Board may reject the 
new rates, charges, classifications, rules, or regulations if 
it is of the opinion that they are unjust and unreasonable.
  (e) Presidential Review.--Concurrently with the publication 
thereof, the [Commission] Board shall transmit to the President 
each order of suspension or final order of [disapproval] 
prohibition of rates, charges, classifications, rules, or 
regulations of a controlled carrier subject to this section. 
Within 10 days after the receipt or the effective date of the 
[Commission] Board order, the President may request the 
[Commission] Board in writing to stay the effect of the 
[Commission's] Board's order if the President finds that the 
stay is required for reasons of national defense or foreign 
policy, which reasons shall be specified in the report. 
Notwithstanding any other law, the [Commission] Board shall 
immediately grant the request by the issuance of an order in 
which the President's request shall be described. During any 
such stay, the President shall, whenever practicable, attempt 
to resolve the matter in controversy by negotiation with 
representatives of the applicable foreign governments.
  (f) Exceptions.--This section does not apply to--
          (1) a controlled carrier of a state whose vessels are 
        entitled by a treaty of the United States to receive 
        national or most-favored-nation treatment; or
          [(2) a controlled carrier of a state which, on the 
        effective date of this section [see the Effective date 
        of section note to this section], has subscribed to the 
        statement of shipping policy contained in note 1 to 
        annex A of the Code of Liberalization of Current 
        Invisible Operations, adopted by the Council of the 
        Organization for Economic Cooperation and Development;
          [(3) rates, charges, classifications, rules, or 
        regulations of a controlled carrier in any particular 
        trade that are covered by an agreement effective under 
        section 6 of this Act [46 U.S.C. App. 1705], other than 
        an agreement in which all of the members are controlled 
        carriers not otherwise excluded from the provisions of 
        this subsection;
          [(4) rates, charges, classifications, rules, or 
        regulations governing the transportation of cargo by a 
        controlled carrier between the country by whose 
        government it is owned or controlled, as defined herein 
        and the United States; or]
          [(5) ] (2)  a trade served exclusively by controlled 
        carriers.

                    Section 10, Shipping Act of 1984

                         [46 U.S.C. App. 1709]

 1709. Prohibited acts

  (a) In General.--No person may--
          (1) knowingly and willfully, directly or indirectly, 
        by means of false billing, false classification, false 
        weighing, false report of weight, false measurement, or 
        by any other unjust or unfair device or means obtain or 
        attempt to obtain ocean transportation for property at 
        less than the rates or charges that would otherwise be 
        applicable;
          (2) operate under an agreement required to be filed 
        under section 5 of this Act [46 U.S.C. App. 1704] that 
        has not become effective under section 6 [46 U.S.C. 
        App. 1705], or that has been rejected, disapproved, or 
        canceled; or
          (3) operate under an agreement required to be filed 
        under section 5 of this Act [46 U.S.C. App. 1704] 
        except in accordance with the terms of the agreement or 
        any modifications made by the [Commission] Board to the 
        agreement.
  (b) Common Carriers.--No common carrier, either alone or in 
conjunction with any other person, directly or indirectly, 
may--
          [(1) charge, demand, collect, or receive greater, 
        less, or different compensation for the transportation 
        of property or for any service in connection therewith 
        than the rates and charges that are shown in its 
        tariffs or service contracts;
          [(2) rebate, refund, or remit in any manner, or by 
        any device, any portion of its rates except in 
        accordance with its tariffs or service contracts;
          [(3) extend or deny to any person any privilege, 
        concession, equipment, or facility except in accordance 
        with its tariffs or service contracts;]
          [(4) ] (1) allow any person to obtain transportation 
        for property at less than the rates or charges 
        established by the carrier in its tariff or service 
        contract by means of false billing, false 
        classification, false weighing, false measurement, or 
        by any other unjust or unfair device or means;
          (2) provide services, facilities, or privileges, 
        other than in accordance with the rates or terms in its 
        tariffs or service contracts in effect when the service 
        was provided;
          [(5) ] (3)  retaliate against any shipper by 
        refusing, or threatening to refuse, cargo space 
        accommodations when available, or resort to other 
        unfair or unjustly discriminatory methods because the 
        shipper has patronized another carrier, or has filed a 
        complaint, or for any other reason;
          [(6) ] (4)  [except for service contracts,] for 
        service pursuant to a tariff, engage in any unfair or 
        unjustly discriminatory practice in the matter of--
                  (A) [rates;] rates or charges;
                  (B) cargo classifications;
                  (C) cargo space accommodations or other 
                facilities, due regard being had for the proper 
                loading of the vessel and the available 
                tonnage;
                  (D) the loading and landing of freight; or
                  (E) the adjustment and settlement of claims;
          (5) for service pursuant to a service contract, 
        engage in any unfair or unjustly discriminatory 
        practice in the matter of rates or charges with respect 
        to any location, port, class or type of shipper or 
        ocean transportation intermediary, or description of 
        traffic;
          [(7) employ any fighting ship;]
          (6) use a vessel in a particular trade to drive 
        another ocean common carrier out of that trade;
          [(8) ] (7)  offer or pay any deferred rebates;
          [(9) use a loyalty contract, except in conformity 
        with the antitrust laws;
          [(10) demand, charge, or collect any rate or charge 
        that is unjustly discriminatory between shippers or 
        ports;
          [(11) except for service contracts, make or give any 
        undue or unreasonable preference or advantage to any 
        particular person, locality, or description of traffic 
        in any respect whatsoever;
          [(12) subject any particular person, locality, or 
        description of traffic to an unreasonable refusal to 
        deal or any undue or unreasonable prejudice or 
        disadvantage in any respect whatsoever;
          [(13) refuse to negotiate with a shippers' 
        association;]
          (8) for service pursuant to a tariff, give any undue 
        or unreasonable preference or advantage or impose any 
        undue or unreasonable prejudice or disadvantage;
          (9) for service pursuant to a service contract, give 
        any undue or unreasonable preference or advantage or 
        impose any undue or unreasonable prejudice or 
        disadvantage with respect to any location, port, class 
        or type of shipper or ocean transportation 
        intermediary, or description of traffic;
          (10) unreasonably refuse to deal or negotiate;
          [(14) ] (11)  knowingly and willfully accept cargo 
        from or transport cargo for the account of [a non-
        vessel-operating common carrier] an ocean 
        transportation intermediary that does not have a tariff 
        and a bond, insurance, or other surety as required by 
        [sections 8 and 23] sections 8 and 19 of this Act [46 
        U.S.C. App. 1707 and 1721];
          [(15) ] (12)  knowingly and willfully enter into a 
        service contract with [a non-vessel-operating common 
        carrier] an ocean transportation intermediary [or in 
        which a non-vessel-operating common carrier is listed 
        as an affiliate] that does not have a tariff and a 
        bond, insurance, or other surety as required by 
        [sections 8 and 23] sections 8 and 19 of this [Act;] 
        Act, [46 U.S.C. App. 1707 and 1721] or with an 
        affiliate of such ocean transportation intermediary; or
          [(16) ] (13)  knowingly disclose, offer, solicit, or 
        receive any information concerning the nature, kind, 
        quantity, destination, consignee, or routing of any 
        property tendered or delivered to a common carrier 
        without the consent of the shipper or consignee if that 
        information--
                  (A) may be used to the detriment or prejudice 
                of the shipper or consignee;
                  (B) may improperly disclose its business 
                transaction to a competitor; or
                  (C) may be used to the detriment or prejudice 
                of any common carrier.
        Nothing in [paragraph (16) ] paragraph (13)  shall be 
        construed to prevent providing such information, in 
        response to legal process, to the United States, the 
        [Commission] Board, or to an independent neutral body 
        operating within the scope of its authority to fulfill 
        the policing obligations of the parties to an agreement 
        effective under this Act. Nor shall it be prohibited 
        for any ocean common carrier that is a party to a 
        conference agreement approved under this Act, or any 
        receiver, trustee, lessee, agent, or employee of that 
        carrier, or any other person authorized by that carrier 
        to receive information, to give information to the 
        conference or any person, firm, corporation, or agency 
        designated by the conference, or to prevent the 
        conference or its designee from soliciting or receiving 
        information for the purpose of determining whether a 
        shipper or consignee has breached an agreement with the 
        conference or its member lines or for the purpose of 
        determining whether a member of the conference has 
        breached the conference agreement, or for the purpose 
        of compiling statistics of cargo movement, but the use 
        of such information for any other purpose prohibited by 
        this Act or any other Act is prohibited.
  (c) Concerted Action.--No conference or group of two or more 
common carriers may--
          (1) boycott or take any other concerted action 
        resulting in an unreasonable refusal to deal;
          (2) engage in conduct that unreasonably restricts the 
        use of intermodal services or technological 
        innovations;
          (3) engage in any predatory practice designed to 
        eliminate the participation, or deny the entry, in a 
        particular trade of acommon carrier not a member of the 
conference, a group of common carriers, an ocean tramp, or a bulk 
carrier;
          (4) negotiate with a nonocean carrier or group of 
        nonocean carriers (for example, truck, rail, or air 
        operators) on any matter relating to rates or services 
        provided to ocean common carriers within the United 
        States by those nonocean carriers: Provided, That this 
        paragraph does not prohibit the setting and publishing 
        of a joint through rate by a conference, joint venture, 
        or an association of ocean common carriers;
          (5) deny in the export foreign commerce of the United 
        States compensation to an ocean [freight forwarder] 
        transportation intermediary, as defined by section 
        3(17)(A) of this Act, or limit that compensation to 
        less than a reasonable amount; or
          (6) allocate shippers among specific carriers that 
        are parties to the agreement or prohibit a carrier that 
        is a party to the agreement from soliciting cargo from 
        a particular shipper, except as otherwise required by 
        the law of the United States or the importing or 
        exporting country, or as agreed to by a shipper in a 
        service contract.
  (d) Common Carriers, Ocean [Freight Forwarders,] 
Transportation Intermediaries, and Marine Terminal Operators.--
          (1) No common carrier, ocean [freight forwarder,] 
        transportation intermediary, or marine terminal 
        operator may fail to establish, observe, and enforce 
        just and reasonable regulations and practices relating 
        to or connected with receiving, handling, storing, or 
        delivering property.
          (2) No marine terminal operator may agree with 
        another marine terminal operator or with a common 
        carrier to boycott, or unreasonably discriminate in the 
        provision of terminal services to, any common carrier 
        or ocean tramp.
          (3) The prohibitions in [subsection (b) (11), (12), 
        and (16)] subsections (b) (8), (9), (10), and (13)  of 
        this section apply to marine terminal operators.
          (4) The prohibition in subsection (b)(13) of this 
        section applies to ocean transportation intermediaries, 
        as defined in section 3(17)(A) of this Act.
  (e) Joint Ventures.--For purposes of this section, a joint 
venture or consortium of two or more common carriers but 
operated as a single entity shall be treated as a single common 
carrier.

                    Section 11, Shipping Act of 1984

                         [46 U.S.C. App. 1710]

Sec.  1710. Complaints, investigations, reports, and reparations 
                    [Section 11, Shipping Act of 1984]

  (a) Filing of Complaints.--Any person may file with the 
[Commission] Board a sworn complaint alleging a violation of 
this Act, other than section 6(g) [46 U.S.C. App. 1705(g)], and 
may seek reparation for any injury caused to the complainant by 
that violation.
  (b) Satisfaction or Investigation of Complaints.--The 
[Commission] Board shall furnish a copy of a complaint filed 
pursuant to subsection (a) of this section to the person named 
therein who shall, within a reasonable time specified by the 
[Commission] Board, satisfy the complaint or answer it in 
writing. If the complaint is not satisfied, the [Commission] 
Board shall investigate it in an appropriate manner and make an 
appropriate order.
  (c) [Commission] Board Investigations.--The [Commission] 
Board, upon complaint or upon its own motion, may investigate 
any conduct or agreement that it believes may be in violation 
of this Act. Except in the case of an injunction granted under 
subsection (h) of this section, each agreement under 
investigation under this section remains in effect until the 
[Commission] Board issues an order under this subsection. The 
[Commission] Board may by order disapprove, cancel, or modify 
any agreement filed under section 5(a) of this Act [46 U.S.C. 
App. 1704(a)] that operates in violation of this Act. With 
respect to agreements inconsistent with section 6(g) of this 
Act [46 U.S.C. App. 1705(g)], the [Commission's] Board's sole 
remedy is under section 6(h) [46 U.S.C. App. 1705(h)].
  (d) Conduct of Investigation.--Within 10 days after the 
initiation of a proceeding under this section, the [Commission] 
Board shall set a date on or before which its final decision 
will be issued. This date may be extended for good cause by 
order of the [Commission] Board.
  (e) Undue Delays.--If, within the time period specified in 
subsection (d), the [Commission] Board determines that it is 
unable to issue a final decision because of undue delays caused 
by a party to the proceedings, the [Commission] Board may 
impose sanctions, including entering a decision adverse to the 
delaying party.
  (f) Reports.--The [Commission] Board shall make a written 
report of every investigation made under this Act in which a 
hearing was held stating its conclusions, decisions, findings 
of fact, and order. A copy of this report shall be furnished to 
all parties. The [Commission] Board shall publish each report 
for public information, and the published report shall be 
competent evidence in all courts of the United States.
  (g) Reparations.--For any complaint filed within 3 years 
after the cause of action accrued, the [Commission] Board 
shall, upon petition of the complainant and after notice and 
hearing, direct payment of reparations to the complainant for 
actual injury (which, for purposes of this subsection, also 
includes the loss of interest at commercial rates compounded 
from the date of injury) caused by a violation of this Act plus 
reasonable attorney's fees. Upon a showing that the injury was 
caused by activity that is prohibited by [section 10(b) (5) or 
(7) [46 U.S.C. App. 1709(b) (5), (7)]] section 10(b) (3) or (6) 
 or section 10(c) (1) or (3) of this Act [46 U.S.C. App. 
1709(c) (1), (3)], or that violates section 10(a) (2) or (3) 
[46 U.S.C. App. 1709(a) (2), (3)], the [Commission] Board may 
direct the payment of additional amounts; but the total 
recovery of a complainant may not exceed twice the amount of 
the actual injury. In the case of injury caused by an activity 
that is prohibited by [section 10(b) (6) (A) or (B)] section 
10(b)(4) (A) or (B)  of this Act [46 U.S.C. App. 1709(b)(6) 
(A), (B)], the amount of the injury shall be the difference 
between the rate paid by the injured shipper and the most 
favorable rate paid by another shipper.
  (h) Injunction.--
          (1) In connection with any investigation conducted 
        under this section, the [Commission] Board may bring 
        suit in a district court of the United States to enjoin 
        conduct in violation of this Act. Upon a showing that 
        standards for granting injunctive relief by courts of 
        equity are met and after notice to the defendant, the 
        court may grant a temporary restraining order or 
        preliminary injunction for a period not to exceed 10 
        days after the [Commission] Board has issued an order 
        disposing of the issues under investigation. Any such 
        suit shall be brought in a district in which the 
        defendant resides or transacts business.
          (2) After filing a complaint with the [Commission] 
        Board under subsection (a), the complainant may file 
        suit in a district court of the United States to enjoin 
        conduct in violation of this Act. Upon a showing that 
        standards for granting injunctive relief by courts of 
        equity are met and after notice to the defendant, the 
        court may grant a temporary restraining order or 
        preliminary injunction for a period not to exceed 10 
        days after the [Commission] Board has issued an order 
        disposing of the complaint. Any such suit shall be 
        brought in the district in which the defendant has been 
        sued by the [Commission] Board under paragraph (1); or, 
        if no suit has been filed, in a district in which the 
        defendant resides or transacts business. A defendant 
        that prevails in a suit under this paragraph shall be 
        allowed reasonable attorney's fees to be assessed and 
        collected as part of the costs of the suit.

         Section 10002, Foreign Shipping Practices Act of 1988

                         [46 U.S.C. App. 1710a]

Sec.  1710a. Foreign laws and practices

  (a) Definitions.--For purposes of this section--
          (1) ``common carrier'', ``marine terminal operator'', 
        [``non-vessel-operating common carrier'',] ``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 App. U.S.C. 1702) ;
          (2) ``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;
          (3) ``maritime services'' means port-to-port carriage 
        of cargo by the vessels operated by ocean common 
        carriers;
          (4) ``maritime-related services'' means intermodal 
        operations, terminal operations, cargo solicitation, 
        [forwarding and] agency services, [non-vessel-operating 
        common carrier] 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;
          (5) ``United States carrier'' means an ocean common 
        carrier which operates vessels documented under the 
        laws of the United States; and
          (6) ``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.
  (b) Authority to Conduct Investigations.--The [Federal 
Maritime Commission] Intermodal Transportation Board shall 
investigate whether 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 the existence 
of conditions that--
          (1) adversely affect the operations of United States 
        carriers in United States oceanborne trade; and
          (2) 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.
  (c) Investigations.--
          (1) Investigations under subsection (b) of this 
        section may be initiated by the [Commission] Board on 
        its own motion or on the petition of any person, 
        including any common carrier, shipper, shippers' 
        association, ocean [freight forwarder,] transportation 
        intermediary, or marine terminal operator, or any 
        branch, department, agency, or other component of the 
        Government of the United States.
          (2) The [Commission] Board shall complete any such 
        investigation and render a decision within 120 days 
        after it is initiated, except that the [Commission] 
        Board may extend such 120-day period for an additional 
        90 days if the [Commission] Board is unable to obtain 
        sufficient information to determine whether a condition 
        specified in subsection (b) of this section exists. Any 
        notice providing such an extension shall clearly state 
        the reasons for such extension.
  (d) Information Requests.--
          (1) In order to further the purposes of subsection 
        (b) of this section, the [Commission] Board may, by 
        order, require any person (including any common 
        carrier, shipper, shippers' association, ocean [freight 
        forwarder,] transportation intermediary or marine 
        terminal operator, or any officer, receiver, trustee, 
        lessee, agent or employee thereof) to file with the 
        [Commission] Board any periodic or special report, 
        answers to questions, documentary material, or other 
        information which the [Commission] Board considers 
        necessary or appropriate. The [Commission] Board may 
        require that the response to any such order shall be 
        made under oath. Such response shall be furnished in 
        the form and within the time prescribed by the 
        [Commission] Board.
          (2) In an investigation under subsection (b) of this 
        section, the [Commission] Board may issue subpoenas to 
        compel the attendance and testimony of witnesses and 
        the production of records or other evidence.
          (3) Notwithstanding any other provision of law, the 
        [Commission] Board may, in its discretion, determine 
        that any information submitted to it in response to a 
        request under this subsection, or otherwise, shall not 
        be disclosed to the public.
  (e) Action Against Foreign Carriers.--
          (1) Whenever, after notice and opportunity for 
        comment or hearing, the [Commission] Board determines 
        that the conditions specified in subsection (b) of this 
        section exist, the [Commission] Board shall take such 
        action as it considers necessary and appropriate 
        against any foreign carrier that is a contributing 
        cause to, or whose government is a contributing cause 
        to, such conditions, in order to offset such 
        conditions. Such action may include--
                  (A) limitations on sailings to and from 
                United States ports or on the amount or type of 
                cargo carried;
                  (B) suspension, in whole or in part, of any 
                or all tariffs [filed with the Commission,] and 
                service contracts, including the right of an 
                ocean common carrier to use any or all tariffs 
                and service contracts of conferences in United 
                States trades of which it is a member for such 
                period as the [Commission] Board specifies;
                  (C) suspension, in whole or in part, of the 
                right of an ocean common carrier to operate 
                under any agreement filed with the [Commission] 
                Board, including agreements authorizing 
                preferential treatment at terminals, 
                preferential terminal leases, space chartering, 
                or pooling of cargo or revenues with other 
                ocean common carriers; and
                  (D) a fee, not to exceed $1,000,000 per 
                voyage.
          (2) The [Commission] Board may consult with, seek the 
        cooperation of, or make recommendations to other 
        appropriate Government agencies prior to taking any 
        action under this subsection.
          (3) Before a determination under this subsection 
        becomes effective or a request is made under subsection 
        (f) of this section, the determination shall be 
        submitted immediately to the President who may, within 
        10 days after receiving such determination, disapprove 
        the determination 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.
  (f) Actions Upon Request of the [Commission] Board.--Whenever 
the conditions specified in subsection (b) of this section are 
found by the [Commission] Board to exist, upon the request of 
the [Commission] Board--
          (1) the collector of customs at any port or place of 
        destination in the United States shall refuse the 
        clearance required by section 4197 of the Revised 
        Statutes (46 App. U.S.C. 91) to any vessel of a foreign 
        carrier that is identified by the [Commission] Board 
        under subsection (e) of this section; and
          (2) the Secretary of the department in which the 
        Coast Guard is operating shall deny entry, for purposes 
        of oceanborne trade, of any vessel of a foreign carrier 
        that is identified by the [Commission] Board under 
        subsection (e) of this section to any port or place in 
        the United States or the navigable waters of the United 
        States, or shall 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.
  (g) Report.--The [Commission] Board shall include in its 
annual report to Congress--
          (1) a list of the twenty foreign countries which 
        generated the largest volume of oceanborne liner cargo 
        for the most recent calendar year in bilateral trade 
        with the United States;
          (2) an analysis of conditions described in subsection 
        (b) of this section being investigated or found to 
        exist in foreign countries;
          (3) any actions being taken by the [Commission] Board 
        to offset such conditions;
          (4) any recommendations for additional legislation to 
        offset such conditions; and
          (5) a list of petitions filed under subsection (c) of 
        this section that the [Commission] Board rejected, and 
        the reasons for each such rejection.
  (h) The actions against foreign carriers authorized in 
subsections (e) and (f) of this section may be used in the 
administration and enforcement of section 13[(b)(5)](b)(6)  of 
the Shipping Act of 1984 (46 App. U.S.C. 1712[(b)(5)](b)(6)) or 
section 19(1)(b) of the Merchant Marine Act, 1920 (46 App. 
U.S.C. 876).
  (i) Any rule, regulation or final order of the [Commission] 
Board issued under this section shall be reviewable exclusively 
in the same forum and in the same manner as provided in section 
[2342(3)(B)] 2342(5)(B)  of title 28, United States Code.

                    Section 13, Shipping Act of 1984

                         [46 U.S.C. App. 1712]

Sec.  1712. Penalties

  (a) Assessment of Penalty.--Whoever violates a provision of 
this Act, a regulation issued thereunder, or a [Commission] 
Board order is liable to the United States for a civil penalty. 
The amount of the civil penalty, unless otherwise provided in 
this Act, 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. Each day of a continuing violation constitutes a 
separate offense. The amount of any penalty imposed upon a 
common carrier under this subsection shall constitute a lien 
upon the vessels of the common carrier and any such vessel may 
be libeled therefore in the district court of the United States 
for the district in which it may be found.
  (b) Additional Penalties.--
          (1) For a violation of [section 10(b) (1), (2), (3), 
        (4), or (8)] section 10(b) (1), (2), or (7)  of this 
        Act [46 U.S.C. App. 1709(b) (1), (2), (7)], the 
        [Commission] Board may suspend any or all tariffs of 
        the common carrier, or that common carrier's right to 
        use any or all tariffs of conferences of which it is a 
        member, for a period not to exceed 12 months.
          (2) For failure to supply information ordered to be 
        produced or compelled by subpena under section 12 of 
        this Act [46U.S.C. App. 1711], the [Commission] Board 
may, after notice and an opportunity for hearing, suspend any or all 
tariffs of a common carrier, or that common carrier's right to use any 
or all tariffs of conferences of which it is a member.
          (3) A common carrier that accepts or handles cargo 
        for carriage under a tariff that has been suspended or 
        after its right to utilize that tariff has been 
        suspended is subject to a civil penalty of not more 
        than $50,000 for each shipment.
          (4) If the [Commission] Board finds, after notice and 
        an opportunity for a hearing, that a common carrier has 
        failed to supply information ordered to be produced or 
        compelled by subpoena under section 12 of this Act, the 
        [Commission] Board may request that the Secretary of 
        the Treasury refuse or revoke any clearance required 
        for a vessel operated by that common carrier. Upon 
        request by the [Commission] Board, the Secretary of the 
        Treasury shall, with respect to the vessel concerned, 
        refuse or revoke any clearance required by section 4197 
        of the Revised Statutes of the United States (46 U.S.C. 
        App. 91).
          [(4)] (5)  If, in defense of its failure to comply 
        with a subpena or discovery order, a common carrier 
        alleges that documents or information located in a 
        foreign country cannot be produced because of the laws 
        of that country, the [Commission] Board shall 
        immediately notify the Secretary of State of the 
        failure to comply and of the allegation relating to 
        foreign laws. Upon receiving the notification, the 
        Secretary of State shall promptly consult with the 
        government of the nation within which the documents or 
        information are alleged to be located for the purpose 
        of assisting the [Commission] Board in obtaining the 
        documents or information sought.
          [(5)] (6)  If, after notice and hearing, the 
        [Commission] Board finds that the action of a common 
        carrier, acting alone or in concert with any person, or 
        a foreign government has unduly impaired access of a 
        vessel documented under the laws of the United States 
        to ocean trade between foreign ports, the [Commission] 
        Board shall take action that it finds appropriate, 
        including the imposition of any of the penalties 
        authorized under [paragraphs (1), (2), and (3)] 
        paragraphs (1), (2), (3), and (4) of this subsection.
          [(6)] (7)  Before an order under this subsection 
        becomes effective, it shall be immediately submitted to 
        the President who may, within 10 days after receiving 
        it, disapprove the order if the President finds that 
        disapproval is required for reasons of the national 
        defense or the foreign policy of the United States.
  (c) Assessment Procedures.--Until a matter is referred to the 
Attorney General, the [Commission] Board may, after notice and 
an opportunity for hearing, assess each civil penalty provided 
for in this Act. In determining the amount of the penalty, the 
[Commission] Board shall take into account the nature, 
circumstances, extent, and gravity of the violation committed 
and, with respect to the violator, the degree of culpability, 
history of prior offenses, ability to pay, and such other 
matters as justice may require. The [Commission] Board may 
compromise, modify, or remit, with or without conditions, any 
civil penalty.
  (d) Review of Civil Penalty.--A person against whom a civil 
penalty is assessed under this section may obtain review 
thereof under chapter 158 of title 28, United States Code [28 
U.S.C. 2341 et seq.].
  (e) Failure To Pay Assessment.--If a person fails to pay an 
assessment of a civil penalty after it has become final or 
after the appropriate court has entered final judgment in favor 
of the [Commission] Board, the Attorney General at the request 
of the [Commission] Board may seek to recover the amount 
assessed in an appropriate district court of the United States. 
In such an action, the court shall enforce the [Commission's] 
Board's order unless it finds that the order was not regularly 
made or duly issued.
  (f) Limitations.--
          (1) No penalty may be imposed on any person for 
        conspiracy to violate section 10(a)(1), (b)(1), [or 
        (b)(4)] or (b)(2) of this Act [46 U.S.C. App. 
        1709(a)(1), [(b)(1), (4)] (b)(1), (2)], or to defraud 
        the [Commission] Board by concealment of such a 
        violation.
          (2) Each proceeding to assess a civil penalty under 
        this section shall be commenced within 5 years from the 
        date the violation occurred.

                    Section 15, Shipping Act of 1984

                          46 U.S.C. App. 1714]

Sec. 1714. Reports [and certificates]

  [(a) Reports.--]The [Commission] Board may require any common 
carrier, or any officer, receiver, trustee, lessee, agent, or 
employee thereof, to file with it any periodical or special 
report or any account, record, rate, or charge, or memorandum 
of any facts and transactions appertaining to the business of 
that common carrier. The report, account, record, rate, charge, 
or memorandum shall be made under oath whenever the 
[Commission] Board so requires, and shall be furnished in the 
form and within the time prescribed by the [Commission] Board 
Conference minutes required to be filed with the [Commission] 
Board under this section shall not be released to third parties 
or published by the [Commission] Board.
  [(b) Certification.--The Commission shall require the chief 
executive officer of each common carrier and, to the extent it 
deems feasible, may require any shipper, shippers' association, 
marine terminal operator, ocean freight forwarder, or broker to 
file a periodic written certification made under oath with the 
Commission attesting to--
          [(1) a policy prohibiting the payment, solicitation, 
        or receipt of any rebate that is unlawful under the 
        provisions of this Act;
          [(2) the fact that this policy has been promulgated 
        recently to each owner, officer, employee, and agent 
        thereof;
          [(3) the details of the efforts made within the 
        company or otherwise to prevent or correct illegal 
        rebating; and
          [(4) a policy of full cooperation with the Commission 
        in its efforts to end those illegal practices.
[Whoever fails to file a certificate required by the Commission 
under this subsection is liable to the United States for a 
civil penalty of not more than $5,000 for each day the 
violation continues.]

                    Section 16, Shipping Act of 1984

                         [46 U.S.C. App. 1715]

Sec. 1715. Exemptions

  The [Commission] Board, upon application or on its own 
motion, may by order or rule exempt for the future any class of 
agreements between persons subject to this Act or any specified 
activity of those persons from any requirement of this Act if 
it finds that the exemption will not [substantially impair 
effective regulation by the Commission, be unjustly 
discriminatory, result in a substantial reduction in 
competition, or be detrimental to commerce.] result in a 
substantial reduction in competition or be detrimental to 
commerce. The [Commission] Board may attach conditions to any 
exemption and may, by order, revoke any exemption. No order or 
rule 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.

                    Section 18, Shipping Act of 1984

Sec. 46 U.S.C. App. 1717

[Sec. 1717. Agency reports and Advisory Commission]

  [(a) Collection of Data.--For a period of 5 years following 
the enactment of this Act [enacted Mar. 20, 1984], the 
Commission shall collect and analyze information concerning the 
impact of this Act upon the international ocean shipping 
industry, including data on:
          [(1) increases or decreases in the level of tariffs;
          [(2) changes in the frequency or type of common 
        carrier services available to specific ports or 
        geographic regions;
          [(3) the number and strength of independent carriers 
        in various trades; and
          [(4) the length of time, frequency, and cost of major 
        types of regulatory proceedings before the Commission.
  [(b) Consultation With Other Departments and Agencies.--The 
Commission shall consult with the Department of Transportation, 
the Department of Justice, and the Federal Trade Commission 
annually concerning data collection. The Department of 
Transportation, the Department of Justice, and the Federal 
Trade Commission shall at all times have access to the data 
collected under this section to enable them to provide comments 
concerning data collection.
  [(c) Agency Reports.--
          [(1) Within 6 months after expiration of the 5-year 
        period specified in subsection (a), the Commission 
        shall report the information, with an analysis of the 
        impact of this Act, to Congress, to the Advisory 
        Commission on Conferences in OceanShipping established 
in subsection (d), and to the Department of Transportation, the 
Department of Justice, and the Federal Trade Commission.
          [(2) Within 60 days after the Commission submits its 
        report, the Department of Transportation, the 
        Department of Justice, and the Federal Trade Commission 
        shall furnish an analysis of the impact of this Act to 
        Congress and to the Advisory Commission on Conferences 
        in Ocean Shipping.
          [(3) The reports required by this subsection shall 
        specifically address the following topics:
                  [(A) the advisability of adopting a system of 
                tariffs based on volume and mass of shipment;
                  [(B) the need for antitrust immunity for 
                ports and marine terminals; and
                  [(C) the continuing need for the statutory 
                requirement that tariffs be filed with and 
                enforced by the Commission.
  [(d) Establishment and Composition of Advisory Commission.--
          [(1) Effective 5\1/2\ years after the date of 
        enactment of this Act [enacted Mar. 20, 1984], there is 
        established the Advisory Commission on Conferences in 
        Ocean Shipping (hereinafter referred to as the 
        ``Advisory Commission'') .
          [(2) The Advisory Commission shall be composed of 17 
        members as follows:
                  [(A) a cabinet level official appointed by 
                the President;
                  [(B) 4 members from the United States Senate 
                appointed by the President pro tempore of the 
                Senate, 2 from the membership of the Committee 
                on Commerce, Science, and Transportation and 2 
                from the membership of the Committee on the 
                Judiciary;
                  [(C) 4 members from the United States House 
                of Representatives appointed by the Speaker of 
                the House, 2 from the membership of the 
                Committee on Merchant Marine and Fisheries, and 
                2 from the membership of the Committee on the 
                Judiciary; and
                  [(D) 8 members from the private sector 
                appointed by the President.
          [(3) The President shall designate the chairman of 
        the Advisory Commission.
          [(4) The term of office for members shall be for the 
        term of the Advisory Commission.
          [(5) A vacancy in the Advisory Commission shall not 
        affect its powers, and shall be filled in the same 
        manner in which the original appointment was made.
          [(6) Nine members of the Advisory Commission shall 
        constitute a quorum, but the Advisory Commission may 
        permit as few as 2 members to hold hearings.
  [(e) Compensation of Members of the Advisory Commission.--
          [(1) Officials of the United States Government and 
        Members of Congress who are members of the Advisory 
        Commission shall serve without compensation in addition 
        to that received for their services as officials and 
        Members, but they shall be reimbursed for reasonable 
        travel, subsistence, and other necessary expenses 
        incurred by them in the performance of the duties 
        vested in the Advisory Commission.
          [(2) Members of the Advisory Commission appointed 
        from the private sector shall each receive compensation 
        not exceeding the maximum per diem rate of pay for 
        grade 18 of the General Schedule under section 5332 of 
        title 5, United States Code [5 U.S.C. 5332], when 
        engaged in the performance of the duties vested in the 
        Advisory Commission, plus reimbursement for reasonable 
        travel, subsistence, and other necessary expenses 
        incurred by them in the performance of those duties, 
        notwithstanding the limitations in sections 5701 
        through 5733 of title 5, United States Code [5 U.S.C. 
        5701-5733].
          [(3) Members of the Advisory Commission appointed 
        from the private sector are not subject to section 208 
        of title 18, United States Code [18 U.S.C. 208]. Before 
        commencing service, these members shall file with the 
        Advisory Commission a statement disclosing their 
        financial interests and business and former 
        relationships involving or relating to ocean 
        transportation. These statements shall be available for 
        public inspection at the Advisory Commission's offices.
  [(f) Advisory Commission Functions.--The Advisory Commission 
shall conduct a comprehensive study of, and make 
recommendations concerning, conferences in ocean shipping. The 
study shall specifically address whether the Nation would be 
best served by prohibiting conferences, or by closed or open 
conferences.
  [(g) Powers of the Advisory Commission.--
          [(1) The Advisory Commission may, for the purpose of 
        carrying out its functions, hold such hearings and sit 
        and act at such times and places, administer such 
        oaths, and require, by subpena or otherwise, the 
        attendance and testimony of such witnesses, and the 
        production of such books, records, correspondence, 
        memorandums, papers, and documents as the Advisory 
        Commission may deem advisable. Subpenas may be issued 
        to any person within the jurisdiction of the United 
        States courts, under the signature of the chairman, or 
        any duly designated member, and may be served by any 
        person designated by the chairman, or that member. In 
        case of contumacy by, or refusal to obey a subpena to, 
        any person, the Advisory Commission may advise the 
        Attorney General who shall invoke the aid of any court 
        of the United States within the jurisdiction of which 
        the Advisory Commission's proceedings are carried on, 
        or where that person resides or carries on business, in 
        requiring the attendance and testimony of witnesses and 
        the production of books, papers, and documents; and the 
        court may issue an order requiring that person to 
        appear before the Advisory Commission, there to produce 
        records, if so ordered, or to give testimony. A failure 
        to obey such an order of the court may be punished by 
        the court as a contempt thereof. All process in any 
        such case may be served in the judicial district 
        whereof the person is an inhabitant or may be found.
          [(2) Each department, agency, and instrumentality of 
        the executive branch of the Government, including 
        independent agencies, shall furnish to the Advisory 
        Commission, upon request made by the chairman, such 
        information as the Advisory Commission deems necessary 
        to carry out its functions.
          [(3) Upon request of the chairman, the Department of 
        Justice, the Department of Transportation, the Federal 
        Maritime Commission, and the Federal Trade Commission 
        shall detail staff personnel as necessary to assist the 
        Advisory Commission.
          [(4) The chairman may rent office space for the 
        Advisory Commission, may utilize the services and 
        facilities of other Federal agencies with or without 
        reimbursement, may accept voluntary services 
        notwithstanding section 1342 of title 31, United States 
        Code [31 U.S.C. 1342], may accept, hold, and administer 
        gifts from other Federal agencies, and may enter into 
        contracts with any public or private person or entity 
        for reports, research, or surveys in furtherance of the 
        work of the Advisory Commission.
  [(h) Final Report.--The Advisory Commission shall, within 1 
year after all of its members have been duly appointed, submit 
to the President and to the Congress a final report containing 
a statement of the findings and conclusions of the Advisory 
Commission resulting from the study undertaken under subsection 
(f) , including recommendations for such administrative, 
judicial, and legislative action as it deems advisable. Each 
recommendation made by the Advisory Commission to the President 
and to the Congress must have the majority vote of the Advisory 
Commission present and voting.
  [(i) Expiration of the Commission.--The Advisory Commission 
shall cease to exist 30 days after the submission of its final 
report.
  [(j) Authorization of Appropriation.--There is authorized to 
be appropriated $500,000 to carry out the activities of the 
Advisory Commission.]

                    Section 19, Shipping Act of 1984

                         [46 U.S.C. App. 1718]

Sec. 1718. Ocean [freight forwarders] transportation intermediaries

  [(a) License.--No person may act as an ocean freight 
forwarder unless that person holds a license issued by the 
Commission. The Commission shall issue a forwarder's license to 
any person that--
          [(1) the Commission determines to be qualified by 
        experience and character to render forwarding services; 
        and
          [(2) furnishes a bond in a form and amount determined 
        by the Commission to insure financial responsibility 
        that is issued by a surety company found acceptable by 
        the Secretary of the Treasury.]
  (a) License._No person in the United States may act as an 
ocean transportation intermediary unless that person holds a 
license issued by the [Commission] Board. The [Commission] 
Board shall issue an intermediary's license to any person that 
the [Commission] Board determines to be qualified by experience 
and character to act as an ocean transportation intermediary.
  (b) Financial Responsibility._
          (1) No person may act 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] Board to insure 
        financial responsibility that is issued by a surety 
        company found acceptable by the Secretary of the 
        Treasury.
          (2) A bond, insurance, or other surety obtained 
        pursuant to this section--
                  (A) shall be available to pay any judgment 
                for damages against an ocean transportation 
                intermediary arising from its transportation-
                related activities described in section 3(17) 
                of this Act, or any order for reparation issued 
                pursuant to section 11 or 14 of this Act, or 
                any penalty assessed pursuant to section 13 of 
                this Act; and
                  (B) may be available to pay any claim against 
                an ocean transportation intermediary arising 
                from its transportation-related activities 
                described in section 3(17) of this Act with the 
                consent of the insured ocean transportation 
                intermediary, or when the claim is deemed valid 
                by the surety company after the ocean 
                transportation intermediary has failed to 
                respond to adequate notice to address the 
                validity of the claim.
          (3) An ocean transportation intermediary not 
        domiciled in the United States shall designate a 
        resident agent in the United States for receipt of 
        service of judicial and administrative process, 
        including subpoenas.
  [(b)] (c) Suspension or Revocation.--The [Commission] Board 
shall, after notice and hearing, suspend of [or] revoke a 
license if it finds that the ocean [freight forwarder] 
transportation intermediary is not qualified to render 
[forwarding] intermediary services or that it willfully failed 
to comply with a provision of this Act or with a lawful order, 
rule, or regulation of the [Commission] Board. The [Commission] 
Board may also revoke an intermediary's license for failure to 
maintain [a bond in accordance with subsection (a)(2).]  a 
bond, proof of insurance, or other surety in accordance with 
subsection (b) (1).
  [(c)] (d)  Exception.--A person whose primary business is the 
sale of merchandise may forward shipments of the merchandise 
for its own account without a license.
  [(d)] (e)  Compensation of [Forwarders] Intermediaries by 
Carriers.--
          (1) A common carrier may compensate an ocean [freight 
        forwarder] transportation intermediary, as defined in 
        section 3(17)(A) of this Act, in connection with a 
        shipment dispatched on behalf of others only when the 
        ocean [freight forwarder] transportation intermediary 
        has certified in writing that it holds a valid 
        [license] license, if required by subsection (a), and 
        has performed the following services:
                  (A) 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.
                  (B) Prepared and processed the ocean bill of 
                lading, dock receipt, or other similar document 
                with respect to the shipment.
          (2) No common carrier may pay compensation for 
        services described in paragraph (1) more than once on 
        the same shipment.
          [(3) No compensation may be paid to an ocean freight 
        forwarder except in accordance with the tariff 
        requirements of this Act.]
          [(4)] (3) No ocean [freight forwarder] transportation 
        intermediary may receive compensation from a common 
        carrier with respect to a shipment in which the 
        [forwarder] intermediary has a direct or indirect 
        beneficial interest nor shall a common carrier 
        knowingly pay compensation on that shipment.
          (4) No conference or group of 2 or more ocean common 
        carriers in the foreign commerce of the United States 
        that is authorized to agree upon the level of 
        compensation paid to an ocean transportation 
        intermediary, as defined in section 3(17) (A) of this 
        Act, may--
                  (A) deny to any member of the 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 
                transportation intermediary, as so defined; or
                  (B) agree to limit the payment of 
                compensation to an ocean transportation 
                intermediary, as so defined, to less than 1.25 
                percent of the aggregate of all rates and 
                charges which are applicable under a tariff and 
                which are assessed against the cargo on which 
                the intermediary services are provided.

                    Section 20, Shipping Act of 1984

                         [46 U.S.C. App. 1719]

Sec. 1719. Contracts, agreements, and licenses under prior shipping 
                    legislation

  (a)--(c) [Omitted]
  [(d) Effects on certain agreements and contracts.--All 
agreements, contracts, modifications, and exemptions previously 
approved or licenses previously issued by the [Commission] 
Board shall continue in force and effect as if approved or 
issued under this Act; and all new agreements, contracts, and 
modifications to existing, pending, or new contracts or 
agreements shall be considered under this Act.]
  (d) Effects on Certain Agreements and Contracts._All 
agreements, contracts, modifications, and exemptions previously 
issued, approved, or effective under the Shipping Act, 1916, or 
the Shipping Act of 1984 shall continue in force and effect as 
if issued or effective under this Act, as amended by the Ocean 
Shipping Reform Act of 1997, and all new agreements, contracts, 
and modifications to existing, pending, or new contracts or 
agreements shall be considered under this Act, as amended by 
the Ocean Shipping Reform Act of 1997.
  (e) Savings Provisions.--
          (1) Each service contract entered into by a shipper 
        and an ocean common carrier or conference before the 
        date of enactment of this Act [enacted Mar. 20, 1984] 
        may remain in full force and effect and need not comply 
        with the requirements of section 8(c) of this Act [46 
        U.S.C. App. 1707(c)] until 15 months after the date of 
        enactment of this Act [enacted Mar. 20, 1984].
          (2) This Act and the amendments made by it shall not 
        affect any suit--
                  (A) filed before the date of enactment of 
                this Act [enacted Mar. 20, 1984], or
                  (B) with respect to claims arising out of 
                conduct engaged in before the date of enactment 
                of this Act [enacted Mar. 20, 1984] filed 
                within 1 year after the date of enactment of 
                this Act [enacted Mar. 20, 1984].
          (3) The Ocean Shipping Reform Act of 1997 shall not 
        affect any suit--
                  (A) filed before the effective date of that 
                Act; or
                  (B) with respect to claims arising out of 
                conduct engaged in before the effective date of 
                that Act filed within 1 year after the 
                effective date of that Act.
          (4) Regulations issued by the Federal Maritime 
        Commission shall remain in force and effect where not 
        inconsistent with this Act, as amended by the Ocean 
        Shipping Reform Act of 1997.

                    Section 23, Shipping Act of 1984

                         [46 U.S.C. App. 1721]

[Sec. 1721. Surety for non-vessel-operating common carriers [Section 
                    23, Shipping Act of 1984]

  [(a) Surety.--Each non-vessel-operating common carrier shall 
furnish to the Commission a bond, proof of insurance, or such 
other surety, as the Commission may require, in a form and an 
amount determined by the Commission to be satisfactory to 
insure the financial responsibility of that carrier. Any bond 
submitted pursuant to this section shall be issued by a surety 
company found acceptable by the Secretary of the Treasury.
  [(b) Claims against surety.--A bond, insurance, or other 
surety obtained pursuant to this section shall be available to 
pay any judgment for damages against a non-vessel-operating 
common carrier arising from its transportation-related 
activities under this Act or order for reparations issued 
pursuant to section 11 of this Act [46 U.S.C. App. 1710] or any 
penalty assessed against a non-vessel-operating carrier 
pursuant to section 13 of this Act [46 U.S.C. App. 1712].
  [(c) Resident agent.--A non-vessel-operating common carrier 
not domiciled in the United States shall designate a resident 
agent in the United States for receipt of service of judicial 
and administrative process, including subpoenas.
  [(d) Tariffs.--The Commission may suspend or cancel any or 
all tariffs of a non-vessel-operating common carrier for 
failure to maintain the bond, insurance, or other surety 
required by subsection (a) of this section or to designate an 
agent as required by subsection (c) of this section or for a 
violation of section 10(a) (1) of this Act [46 U.S.C. App. 
1709(a) (1) ].]

                        TITLE 49. TRANSPORTATION

                SUBTITLE I. DEPARTMENT OF TRANSPORTATION

          CHAPTER 7. [SURFACE] INTERMODAL TRANSPORTATION BOARD

                      SUBCHAPTER I. ESTABLISHMENT

Sec. 701. Establishment of Board

  (a) Establishment.--There is hereby established within the 
Department of Transportation the [Surface] Intermodal 
Transportation Board.
  (b) Membership.--
          (1) The Board shall consist of [3 members,] 5 
        members, to be appointed by the President, by and with 
        the advice and consent of the Senate. Not more than [2 
        members] 3 members may be appointed from the same 
        political party.
          [(2) At any given time, at least 2 members of the 
        Board shall be individuals with professional standing 
        and demonstrated knowledge in the fields of 
        transportation or transportation regulation, and at 
        least one member shall be an individual with 
        professional or business experience (including 
        agriculture) in the private sector.]
          (2) At any given time, at least 3 members of the 
        Board shall be individuals with professional standing 
        and demonstrated knowledge in the fields of surface or 
        maritime transportation or their regulation, and at 
        least 2 members shall be individuals with professional 
        or business experience (including agriculture, surface 
        or maritime transportation, or marine terminal or port 
        operation) in the private sector. At any given time, at 
        least 2 members of the Board shall be individuals with 
        professional standing and demonstrated knowledge in 
        maritime transportation or its regulation or 
        professional or business experience in maritime 
        transportation or marine terminal or port operation in 
        the private sector, and at least 2 members of the Board 
        shall be individuals with professional standing and 
        demonstrated knowledge in surface transportation or its 
        regulation or professional or business experience in 
        agriculture or surface transportation in the private 
        sector. Neither of the 2 individuals appointed as 
        surface transportation members under the preceding 
        sentence, and neither of the 2 individuals appointed as 
        maritime transportation members under that sentence, 
        may be members of the same political party.
          (3) The term of each member of the Board shall be 5 
        years and shall begin when the term of the predecessor 
        of that member ends. An individual appointed to fill a 
        vacancy occurring before the expiration of the term for 
        which the predecessor of that individual was appointed, 
        shall be appointed for the remainder of that term. When 
        the term of office of a member ends, the member may 
        continue to serve until a successor is appointed and 
        qualified, but for a period not to exceed one year. The 
        President may remove a member for inefficiency, neglect 
        of duty, or malfeasance in office.
          (4) On January 1, 1996, the members of the Interstate 
        Commerce Commission serving unexpired terms on December 
        29, 1995, shall become members of the Board, to serve 
        for a period of time equal to the remainder of the term 
        for which they were originally appointed to the 
        Interstate Commerce Commission. Any member of the 
        Interstate Commerce Commission whose term expires on 
        December 31, 1995, shall become a member of the Board, 
        subject to paragraph (3).
          (5) No individual may serve as a member of the Board 
        for more than 2 terms. In the case of an individual who 
        becomes a member of the Board pursuant to paragraph (4) 
        , or an individual appointed to fill a vacancy 
        occurring before the expiration of the term for which 
        the predecessor of that individual was appointed, such 
        individual may not be appointed for more than one 
        additional term.
          (6) A member of the Board may not have a pecuniary 
        interest in, hold an official relation to, or own stock 
        in or bonds of, a carrier providing transportation by 
        any mode and may not engage in another business, 
        vocation, or employment.
          (7) A vacancy in the membership of the Board does not 
        impair the right of the remaining members to exercise 
        all of the powers of the Board. The Board may designate 
        a member to act as Chairman during any period in which 
        there is no Chairman designated by the President.
  (c) Chairman.--
          (1) There shall be at the head of the Board a 
        Chairman, who shall be designated by the President from 
        among the members of the Board. The Chairman shall 
        receive compensation at the rate prescribed for level 
        III of the Executive Schedule under section 5314 of 
        title 5.
          (2) Subject to the general policies, decisions, 
        findings, and determinations of the Board, the Chairman 
        shall be responsible for administering the Board. The 
        Chairman may delegate the powers granted under this 
        paragraph to an officer, employee, or office of the 
        Board. The Chairman shall--
                  (A) appoint and supervise, other than regular 
                and full-time employees in the immediate 
                offices of another member, the officers and 
                employees of the Board, including attorneys to 
                provide legal aid and service to the Board and 
                its members, and to represent the Board in any 
                case in court;
                  (B) appoint the heads of offices with the 
                approval of the Board;
                  (C) distribute Board business among officers 
                and employees and offices of the Board;
                  (D) prepare requests for appropriations for 
                the Board and submit those requests to the 
                President and Congress with the prior approval 
                of the Board; and
                  (E) supervise the expenditure of funds 
                allocated by the Board for major programs and 
                purposes.

                                
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