[Federal Register Volume 59, Number 96 (Thursday, May 19, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12164]


[[Page Unknown]]

[Federal Register: May 19, 1994]


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FEDERAL MARITIME COMMISSION

46 CFR Part 586

[Docket No. 91-24]

 

Actions to Adjust or Meet Conditions Unfavorable to Shipping in 
the United States/Korea Trade

AGENCY: Federal Maritime Commission.

ACTION: Withdrawal of final rule; Discontinuance of proceeding.

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SUMMARY: The Federal Maritime Commission is withdrawing its November 
13, 1992, final rule which found that unfavorable conditions existed in 
the oceanborne trade between the United States and Korea, which 
precluded U.S. carriers from engaging in trucking activities in Korea. 
That rule imposed fees on Korean-flag vessels in the amount of $100,000 
per voyage, but suspended the sanctions until June 1, 1994. The 
Commission has since reviewed the progress achieved by the Government 
of Korea in implementing commitments to remove the restrictions. 
Inasmuch as reports from affected U.S. and Korean carriers confirm that 
the impediments at issue have been removed, and all the carriers 
recommend termination of the proceeding, there is no reason to continue 
the proceeding or to assess fees.

EFFECTIVE DATE: May 19, 1994.

FOR FURTHER INFORMATION CONTACT: Robert D. Bourgoin, General Counsel, 
Federal Maritime Commission, 800 North Capitol Street, NW., Washington, 
DC 20573, (202) 523-5740.

SUPPLEMENTARY INFORMATION: This proceeding under section 19(1)(b) of 
the Merchant Marine Act, 1920, 46 U.S.C. app. 876(1)(b) (``Section 
19''), was initiated by the Federal Maritime Commission 
(``Commission'') on June 7, 1991 (56 FR 26361), by Notice of Proposed 
Rulemaking (``Proposed Rule''). The Proposed Rule raised issues 
concerning apparent Government of Korea (``ROK'') restrictions on U.S. 
carriers' ability to engage in trucking operations and to contract 
directly for rail service in Korea incidental to intermodal commerce in 
the United States/Korea trade (``Trade''). It proposed sanctions 
consisting of $100,000 per voyage fees on vessels in the Trade operated 
by Korean-flag carriers Hanjin Shipping Co., Ltd. and Hyundai Merchant 
Marine Co., Ltd. (collectively, ``Korean Carriers'').
    On the basis of comments on the Proposed Rule and several 
supplemental submissions received thereafter from the Korean Carriers 
and the affected U.S. carriers, Sea-Land Service, Inc. and American 
President Lines, Ltd. (collectively, ``U.S. Carriers''), the Commission 
published a final rule on November 18, 1992 (57 FR 54318). The final 
rule found that unfavorable conditions existed in the Trade by virtue 
of ROK restrictions on U.S. carriers' trucking activities. It imposed 
the sanctions cited in the Proposed Rule, but suspended them until June 
1, 1994, noting commitments made by the ROK in the course of bilateral 
inter-governmental discussions in the summer of 1992. The suspension, 
the Commission explained, would allow time for the ROK to implement the 
promised changes.
    In the meantime, the Commission directed that the U.S. and Korean 
Carriers, including Cho Yang Shipping Co., Ltd., which was added to the 
list of Korean Carriers, submit periodic reports to the Commission 
regarding the ROK's implementation of its commitments. Although the 
finding of unfavorable conditions was limited to the trucking issue, 
the Commission directed the carriers to report as well on ROK 
restrictions on rail access by the U.S. Carriers. The parties were 
ordered to address enumerated issues in submissions due December 15, 
1992; May 1, 1993; November 1, 1993; and May 1, 1994.
    Over the course of the reporting period, the Commission was advised 
that the ROK made considerable changes in its regulations and policies, 
with the effect of remedying the conditions in issue. Effective May 10, 
1993, regulations were amended to enable U.S. carriers to issue Bonded 
Rail Transportation Permits without the need for a trucking license. 
Vehicle ownership requirements for obtaining Simplified Bonded 
Transportation Permits were substantially reduced. The carriers also 
indicated that the ROK adhered to its promised regionally-keyed 
timetable for issuing trucking licenses. All limitations on U.S. 
carrier trucking operations were reportedly removed as of April 1, 
1994. All five carriers, U.S. and Korean, advise that the conditions on 
which the final rule is based no longer exist, and that the 
Commission's objectives in this proceeding have been met.
    The Commission is satisfied that there is no longer a basis for 
continuing this proceeding. The final rule is accordingly withdrawn and 
the proceeding discontinued.

List of Subjects in 46 CFR Part 586

    Ecuador, Korea, Maritime carriers.

    Therefore, part 586 of title 46 CFR is amended as follows:
    1. The authority citation for part 586 continues to read as 
follows:

    Authority: 46 U.S.C. app. 876(1)(b); 46 U.S.C. app. 876(5) 
through (12); 46 CFR Part 585; Reorganization Plan No. 7 of 1961, 26 
FR 7315 (August 12, 1961).


Sec. 586.5  [Removed]

    2. Section 586.5 is removed.

    By the Commission.
Joseph C. Polking,
Secretary.
[FR Doc. 94-12164 Filed 5-18-94; 8:45 am]
BILLING CODE 6730-01-W