[Federal Register Volume 59, Number 144 (Thursday, July 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-18381]


[Federal Register: July 28, 1994]


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


FEDERAL MARITIME COMMISSION
46 CFR Parts 514, 552, 560 and 572

[Docket No. 94-15]


New Filing Fees

AGENCY: Federal Maritime Commission.

ACTION: Proposed rule.

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

SUMMARY: The Federal Maritime Commission (``Commission'' or ``FMC''), 
pursuant to the Independent Offices Appropriation Act (``IOAA''), 
proposes to establish filing fees for tariffs, service contract 
essential terms (``ETs''), financial reports in the domestic offshore 
trades, general rate increases in the domestic offshore trades, and 
agreements. The services provide special benefits to identifiable 
members of the public and assessment of fees therefor comports with 
direction of the Office of Management and Budget.

DATES: Comments due September 12, 1994.

ADDRESSES: Comments (original and fifteen copies) to: Joseph C. 
Polking, Secretary, Federal Maritime Commission, 800 North Capitol 
Street, N.W., Washington, D.C. 20573-0001, 202-523-5725.

FOR FURTHER INFORMATION CONTACT: Jeremiah D. Hospital or George Smolik, 
Bureau of Trade Monitoring and Analysis, Federal Maritime Commission, 
800 North Capitol Street, N.W., Washington, D.C. 20573-0001, 202-523-
5790.

SUPPLEMENTARY INFORMATION: The Commission, under the IOAA, is 
authorized to establish fees for services and benefits that it 
provides. The IOAA states:

    (a) . . . That each service or thing of value provided by an 
agency . . . to a person . . . be self-sustaining to the extent 
possible.
    (b) . . . Each charge shall be--
    (1) fair; and
    (2) based on--
    (A) the costs to the Government;
    (B) the value of the service or thing to the recipient;
    (C) public policy or interest served; and
    (D) other relevant facts.

31 U.S.C. 9701.
    The primary guidance for implementation of the IOAA is Office of 
Management and Budget (``OMB'') Circular A-25, as revised July 8, 1993. 
OMB Circular A-25 requires that a reasonable charge be made to each 
recipient for a measurable unit or amount of Government service from 
which the recipient derives a benefit, in order that the Government 
recover the full cost of rendering that service.
    OMB Circular A-25 further provides that full cost be determined or 
estimated from the best available records in the agency, and that it 
cover the direct and indirect costs to the Government of providing a 
good resource or service, including but not limited to:

    (1) Direct and indirect personnel costs, including salaries and 
fringe benefits such as medical insurance and retirement.
    (2) Physical overhead, consulting, and other indirect costs 
including material and supply costs, utilities, insurance, travel, 
and rents or imputed rents on land, buildings, and equipment.
    (3) The management and supervisory costs.
    (4) The costs of enforcement, collection, research, 
establishment of standards, and regulation, including any 
environmental impact statements.

OMB Circular A-25 further calls for a biennial reassessment of user 
charges, with related adjustment of fees, if necessary, and the 
establishment of new fees where none exists.
    The courts have interpreted the IOAA on several occasions, 
establishing general standards that agencies must meet in establishing 
fees. In 1974, the Supreme Court ruled that a fee may only be charged 
for a special benefit provided to identifiable beneficiaries measured 
by its value to the recipient. The special benefit is also required to 
have some connection between the agency and the recipient other than 
the mere fact of regulation or the adoption of some practice of general 
benefit to the industry as a whole. Thus, the Court upheld that portion 
of OMB Circular A-25 stating that there could be no charge where the 
identity of the beneficiary is obscure and the services can be 
primarily considered to benefit the general public. See National Cable 
Television Association v. United States, 415 U.S. 336 (1974) and FPC v. 
New England Power Co., 415 U.S. 345 (1974).
    In 1976, the U.S. Court of Appeals for the District of Columbia 
Circuit rendered a series of decisions that provided additional 
guidance for agencies adopting or revising fee schedules issued under 
the IOAA. See National Cable Television Association v. F.C.C., 554 F.2d 
1094 (D.C. Cir. 1976); Electronics Industries Association v. F.C.C., 
554 F.2d 1109 (D.C. Cir. 1976); Capital Cities Communications Inc. v. 
F.C.C., 554 F.2d 1135 (D.C. Cir. 1976). In those decisions, the court 
set out the following guidelines:

    1. An agency may impose a reasonable charge on recipients for an 
amount of work for which they benefit. The fees must be for specific 
services to specific persons. These services include the issuance of 
a license and assistance in complying with a statutory duty such as 
tariff filing.
    2. The fees may not exceed the cost to the agency in rendering 
the service.
    3. An agency may recover the full cost of providing a service to 
an identifiable beneficiary regardless of the incidental public 
benefits which may flow from service.

Also, when an agency proposes a fee, it must meet the following 
requirements:

    1. The agency must justify the assessment of a fee by a clear 
statement of the particular service or benefit for which it seeks 
reimbursement.
    2. The agency must calculate the cost basis for each fee by:
    a. Allocating specific expenses of the cost basis of the fee to 
the smallest practical unit.
    b. Excluding expenses that service an independent public 
interest; and
    c. A public explanation of the specific expenses included in a 
cost basis for a particular fee, and an explanation of the criteria 
used to include or exclude a particular item.
    3. The fee must be set to return the cost basis at a rate that 
reasonably reflects the cost of the services performed and value 
conferred on the payor.

Electronic Industries Association v. F.C.C., 554 F.2d at 1117.
    The above guidelines were followed by the Commission when it last 
updated its schedule of filing and service fees in 1983. Dockets Nos. 
82-32 and 82-33, Filing and Service Fees, 21 S.R.R. 1517, 21 S.R.R. 
1575 (1983). At that time, the Commission conducted cost studies to 
determine the processing costs for its various fee items.
    The Commission's current filing and service fees, however, do not 
include fees for certain services that appear to provide special 
benefits to identifiable members of the public. In light of OMB's 
requirement that agencies assess fees for all identifiable special 
benefits, and, in particular, OMB's direction that the FMC consider 
implementation of tariff and service contract filing fees to offset its 
FY 1996 appropriation,\1\ the Commission is proposing new fees for 
several services. In keeping with OMB Circular A-25, the new fees 
reflect the fully distributed cost of those services. The proposed new 
fees are set forth in this Notice.
---------------------------------------------------------------------------

    \1\OMB has expressed its desire for the Commission to establish 
fees through its ``passback'' to the Commission's FY 1995 budget 
submission for FY 1996. After OMB reviews the Commission's agency 
budget proposal for the upcoming fiscal year, OMB ``passes back'' 
its budget proposal to the agency.
---------------------------------------------------------------------------

    In addition to the instant rulemaking, the Commission is issuing a 
companion rulemaking (Docket No. 94-14, Update of Existing Filing and 
Service Fees), updating the FMC's fees to reflect the fully distributed 
current costs to the Commission.

Methodology

    The Commission has reviewed its services and determined where it 
should establish fees pursuant to OMB Circular A-25. Tariff filing, 
filing of ETs, filing of financial reports in the domestic offshore 
trades, processing of general rate increases in the domestic offshore 
trades, and filing of agreements have been identified as areas where 
new fees could be assessed under the authority of the IOAA and OMB 
Circular A-25.\2\
---------------------------------------------------------------------------

    \2\The Commission has determined that enforcement activities are 
not appropriate for assessing fees because they are adjudicatory 
functions that have broad publc significance and a quasi-judicial 
impact. The public is the primary beneficiary for such actions. The 
Commission's enforcement programs are geared to providing protection 
for the shipping public. Therefore, formal adjudications and 
compliance audits were not considered activities for which fees 
should be assessed.
---------------------------------------------------------------------------

    The methodology employed to calculate direct costs of services was 
based on the method employed by the Commission the last time it 
considered fees in Dockets Nos. 82-23 and 82-33, Filing and Service 
Fees, supra. Surveys were conducted to determine the time and cost 
involved in providing particular services to arrive at the direct labor 
costs for those services, including, as appropriate, the costs for 
clerical support staff, professionals, supervisors, and bureau 
directors. Multiplying the number of hours expended by each employee to 
provide a particular service with the employee's hourly wage, plus a 
$1.00 cost to process the check, yielded the direct labor cost for 
providing the service.
    According to OMB Circular A-25, fees are to be based on the full 
cost of a service, which includes all direct and indirect costs. 
Therefore, indirect costs (overhead and other assignable costs) were 
added to the direct labor cost to arrive at a fully distributed cost 
for providing a particular service. A somewhat modified method was used 
to calculate fees for tariff filing, and is explained later.
    In developing a methodology for determining indirect costs, the 
Commission adopted the approach used by the Interstate Commerce 
Commission (``ICC'').\3\ Three categories of indirect costs were 
identified: Government overhead costs (basically personnel fringe 
benefits); Commission general and administrative expenses; and office 
general and administrative expenses.\4\ The calculations for indirect 
costs are discussed below and set forth in Appendix A. A detailed 
summary of the data used to arrive at the proposed fees is available 
from the Secretary of the Commission upon written request.
---------------------------------------------------------------------------

    \3\The ICC's mandate is similar to the Commission's, i.e., 
regulating segments of the transportation industry, and its fee 
schedule and methodologies have been reviewed by the courts and 
deemed acceptable, in many respects. See Central & Southern Motor 
Freight Tariff Ass'n v. U.S., 777 F.2d 722, (D.C. Cir. 1985) 
(``Central & Southern'').
    \4\The ICC employs an additional indirect cost item for 
operations overhead, which apportions senior executive time across 
fee-generating activities. Because the Commission was able to 
account for senior executive time in each service item, a separate 
overhead would be redundant. Accordingly, this ICC component was not 
included in our calculations.
---------------------------------------------------------------------------

    The first component of indirect costs is Government overhead costs, 
which are fringe benefits and other wage-related government 
contributions contained in OMB Circular A-76. These include leave and 
holidays, retirement, workmen's compensation awards, health and life 
insurance, and Medicare. These are expressed as percentages of basic 
pay, and are applied to direct labor costs.
    The next component of indirect costs is Commission general and 
administrative costs. These costs include all salaries and overhead, 
such as rent, utilities, supplies, and equipment, allocated across the 
Offices of the Commissioners, Managing Director, General Counsel, and 
Bureau of Administration. The total of these allocated costs is divided 
by the total funding for the agency as reflected in the FMC's OMB 
budget submission in FY 1994. The resulting percentage is allocated 
across all Commission programs. As with Government overhead, Commission 
general and administrative costs are also applied to direct labor 
costs.
    The final component of indirect costs is office general and 
administrative overhead expenses. These expenses are limited to the 
overhead of those bureaus and offices that are involved in fee- 
generating activities, i.e., Office of the Secretary, Bureau of 
Tariffs, Certification and Licensing (``BTCL''), and Bureau of Trade 
Monitoring and Analysis (``BTMA''). They are similar to the expenses 
for Commission general and administrative expenses mentioned above, 
except that no personnel costs are included. Certain expenses which 
have no nexus with any fee activity, e.g., the procurement of Census 
data, have been excluded from this calculation. As with Commission 
general and administrative expenses, the office general and 
administrative expenses are divided by the total funding for the fee-
generating bureaus and offices to arrive at a percentage that is to be 
applied to direct labor costs.
    Adding all the components of indirect costs gives an indirect cost 
factor that is added to direct labor costs to arrive at fully 
distributed costs. The indirect cost factor under this methodology is 
99.50 percent.

Proposed Fees

    Each service or special benefit for which fees are proposed is 
described below, as well as the direct labor cost to the FMC of 
providing a particular service, the indirect cost, the fully 
distributed cost, and the proposed fee associated with each service for 
which fees are proposed. A summary schedule of proposed fees is 
provided in Appendix B.

Fees Related to the Filing of Rate Increases and Reports in the 
Domestic Offshore Trades

    Part 552 provides for the orderly acquisition of data to be 
utilized in evaluating the reasonableness of rates in the domestic 
offshore trades filed by vessel-operating common carriers 
(``carriers'') subject to the provisions of the Intercoastal Shipping 
Act, 1933 (``1933 Act''), 46 U.S.C. app. 843. All persons engaged in 
common carriage via cargo vessels in the domestic offshore trades 
(except persons engaged in intrastate operations in Alaska and Hawaii) 
are required by the 1933 Act to file a Statement of Financial and 
Operating Data for each domestic service in which they are engaged. See 
46 CFR Sec. 552.2(a).
    Upon application for submission of alternative data, the Commission 
may relieve a carrier from full compliance with Part 552 and permit it 
to submit alternative data. The carrier receives a benefit from this 
service because of the significant time saved in not preparing detailed 
financial statements. The proposed fee for processing such applications 
is derived as follows:

------------------------------------------------------------------------
                                                                Dollars 
------------------------------------------------------------------------
Direct Labor Cost...........................................      $82.99
Indirect Cost...............................................       82.58
Fully Distributed Cost......................................      165.56
Proposed Fee................................................   \5\165.00
------------------------------------------------------------------------
\5\All proposed fees are rounded down to the nearest dollar.            

    Upon application for extension of time for filing, the Commission 
may grant reasonable extensions of the time limit prescribed for filing 
the statements required by Part 552. The benefit the carrier receives 
from this service is that it is not subject to the time constraints in 
the rule. The proposed fee for processing such applications is derived 
as follows:

------------------------------------------------------------------------
                                                                Dollars 
------------------------------------------------------------------------
Direct Labor Cost...........................................      $27.89
Indirect Cost...............................................       27.75
Fully Distributed Cost......................................       55.64
Proposed Fee................................................      55.00 
------------------------------------------------------------------------

    Upon application for waiver of detailed reporting requirements, the 
Commission shall grant a waiver of the detailed reporting requirements 
to carriers that have earned gross revenues of $25 million or less for 
the reporting period in a particular trade. The carrier receives a 
benefit from this waiver because it does not have to prepare detailed 
financial statements. The proposed fee for processing such applications 
is derived as follows:


------------------------------------------------------------------------
                                                                Dollars 
------------------------------------------------------------------------
Direct Labor Cost...........................................      $51.87
Indirect Cost...............................................       51.61
Fully Distributed Cost......................................      103.48
Proposed Fee................................................     103.00 
------------------------------------------------------------------------

    Part 522 defines general rate increases (``GRIs'') in the domestic 
offshore trades, and describes the financial and operating data 
required to support GRIs (section 552.2(f)). The specific benefit to 
the filer of a GRI is the potential for increased revenues.\6\ This 
benefit derives directly from a Commission finding that the particular 
rate of return generated by a proposed GRI is reasonable. In making 
this finding, the Commission conducts an extensive analysis of the 
supporting data, and develops its own benchmark figures for comparison 
with the filer's calculated rate of return based on its proposed GRI. 
Accordingly, the Commission is proposing to assess a filing fee for 
GRIs in the domestic offshore trades to cover the full cost of 
analyzing the reasonableness of a proposed GRI. The proposed fee is 
derived as follows:
---------------------------------------------------------------------------

    \6\An additional benefit accruing to carriers operating in the 
domestic offshore trades is that potential entrants, by law, are 
restricted, i.e., foreign-flag carriers are prohibited from 
operating in the domestic trades. See section 27 of the Merchant 
Marine Act of 1920, 46 U.S.C. app. 883.

------------------------------------------------------------------------
                                                                Dollars 
------------------------------------------------------------------------
Direct Labor Cost...........................................   $5,990.64
Indirect Cost...............................................    5,960.69
Fully Distributed Cost......................................   11,951.33
Proposed Fee................................................  11,951.00 
------------------------------------------------------------------------

    The Commission recognizes the special circumstances present in the 
domestic offshore trades regarding the price leadership role played by 
certain carriers, and invites comments on alternative methods for 
assessing the Commission's cost of analyzing the reasonableness of GRIs 
in these trades.

Agreement Filing Fees

    The processing of agreements benefits the filing parties because of 
the concomitant antitrust immunity conferred by the Shipping Act, 1916 
(``1916 Act''), 46 U.S.C. app 801 et seq., and the Shipping Act of 1984 
(``1984 Act''), 46 U.S.C. app. 1701 et seq. There are strong 
similarities between FMC agreements and those ICC agreements for which 
fees were assessed in Central & Southern.
    Agreements enable joint ratemaking or cost-cutting measures to 
accrue to the benefit of the signatory parties. The sales revenues or 
cost savings, or both, can add up to millions of dollars for one 
carrier, let alone several carriers. Such savings far offset the 
proposed filing fee for an agreement that enables carriers to 
accomplish such monetary gains. Savings to carriers and others in 
excess of the fee amounts can also be realized even through routine 
arrangements to share office space, equipment, staff and supplies. 
Accordingly, fees are being proposed for various agreement filings.
    Agreement filings accompanied by an Information Form must be 
analyzed for compliance with statutory requirements under section 6(g) 
and section 10 of the 1984 Act, 46 U.S.C. app. 1705(g), 1709. In the 
domestic offshore trades, certain types of agreement filings require a 
detailed justification\7\ that must be analyzed for compliance with 
statutory requirements under section 15 of the 1916 Act, 46 U.S.C. app. 
814. These types are submitted to the Commission for its review, and, 
under the 1916 Act, approval. The proposed fee for processing such 
agreements is derived as follows:
---------------------------------------------------------------------------

    \7\Proponents must demonstrate that their agreement is required 
by a serious transportation need, is necessary to secure important 
public benefits, or will further a valid regulatory purpose of the 
1916 Act. See Federal Maritime Commission et. al. vs Aktiebolaget 
Svenska Amerika Linien; 390 U.S. 238-253 (1968).

------------------------------------------------------------------------
                                                                Dollars 
------------------------------------------------------------------------
Direct Labor Cost...........................................     $703.24
Indirect Cost...............................................      699.72
Fully Distributed Cost......................................    1,402.96
Proposed Fee................................................    1,402.00
------------------------------------------------------------------------

    Agreement filings that do not require an Information Form must be 
analyzed for compliance with statutory requirements under section 10 
and section 6(g) of the 1984 Act. In the domestic offshore trades, 
agreement filings that do not require detailed justification must be 
analyzed for compliance with statutory requirements under section 15 of 
the 1916 Act. These are submitted to the Commission for its review, 
and, under the 1916 Act, approval. The proposed fee for processing such 
agreements is derived as follows:

------------------------------------------------------------------------
                                                                Dollars 
------------------------------------------------------------------------
Direct Labor Cost...........................................     $348.76
Indirect Cost...............................................      347.02
Fully Distributed Cost......................................      695.78
Proposed Fee................................................     695.00 
------------------------------------------------------------------------

    Agreement filings reviewed under Delegated Authority are processed 
administratively without direct Commission review, and do not require 
the filing of an Information Form under the 1984 Act. The proposed fee 
for processing such agreements is derived as follows:

------------------------------------------------------------------------
                                                                Dollars 
------------------------------------------------------------------------
Direct Labor Cost...........................................     $177.13
Indirect Cost...............................................      176.24
Fully Distributed Cost......................................      353.37
Proposed Fee................................................     353.00 
------------------------------------------------------------------------

    Marine terminal and carrier exempt agreements are processed 
administratively without direct Commission review under the 1916 Act 
and the 1984 Act. The proposed fee for processing such agreements is 
derived as follows:

------------------------------------------------------------------------
                                                                Dollars 
------------------------------------------------------------------------
Direct Labor Cost...........................................      $60.23
Indirect Cost...............................................       59.93
Fully Distributed Cost......................................      120.16
Proposed Fee................................................     120.00 
------------------------------------------------------------------------

Tariff and ET Filing Fees

    Section 8 of the 1984 Act, 46 U.S.C. app. 1707, requires common 
carriers and conferences of such common carriers to file with the 
Commission and keep open to public inspection, tariffs showing all 
rates, charges, classifications, tariff rules and practices for 
transportation between U.S. and foreign ports and between points on any 
through route that is established. Section 8 also requires service 
contracts and their ETs are to be filed by the 1984 Act.
    Section 2 of the 1933 Act, 46 U.S.C. 844, requires that every 
domestic offshore carrier file with the Commission, and keep open to 
public inspection, tariffs showing its rates, fares and charges for or 
in connection with transportation between all points on its own route, 
and all points on any through route established in conjunction with 
other carriers.
    Under court precedent interpreting the IOAA and OMB Circular A-25, 
tariff and ET filings with the Commission appear to be an activity for 
which fees should be imposed. Moreover, OMB has urged the Commission to 
establish fees in this area through its passback to the Commission's FY 
1995 budget submission for FY 1996. The Federal Communication 
Commission's (``FCC'') imposition of fees for processing carrier 
tariffs has been upheld, Electronics Industries Ass'n v. FCC, 554 F.2d 
1109, 1115 (D.C. Cir. 1976), as has the ICC's imposition of fees for 
processing tariffs, Central & Southern, 777 F.2d at 730-736. The courts 
in these cases noted that tariff processing benefits tariff filers in 
helping to maintain rate stability.
    While the shipping public derives benefits from having tariffs 
filed at the Commission, the courts have concluded that the words 
``special benefits'' as used in OMB Circular A-25 mean that there need 
only be a special private benefit to an identifiable beneficiary, FPC 
v. New England Power Co., 415 U.S. at 349-51, regardless of incidental 
public benefits, National Cable Television, 554 F.2d at 1114-5; Central 
& Southern, 777 F.2d at 731-32, and have concluded that ``[i]f the 
asserted public benefits are the necessary consequence of the agency's 
provision of the relevant private benefits, then the public benefits 
are not independent, and the agency would therefore not need to 
allocate any costs to the public.''    Central & Southern, 777 F.2d at 
732. Finding that a ``principal function'' of tariff filing is the 
establishment of rate stability, the court in Central & Southern found 
the benefit to the shippers and other carriers as ``incidental'' to the 
``independent'' rate stability benefit and sufficient to justify the 
full cost imposition of tariff processing on tariff filers. Central & 
Southern, 777 F.2d at 733-36.
    Commission precedent and the legislative history of the 1984 Act 
indicate that ``rate stability'' is one of the purposes of requiring 
carrier tariffs to be filed at the FMC. See Section 19 Investigation, 
1935, 1 U.S.S.B.B. 470, 498-500 (1935); H.R. Rept. No. 53, Part 1, 98th 
Cong., 1st Sess. 18-19 (1983). Thus, under the rationale of Central & 
Southern, the collection of the full costs of processing tariff filings 
at the FMC appears justified.
    However, because we recognize that there exists a public benefit 
from tariff filing in addition to that derived by tariff filers, the 
Commission invites the industry to comment on to what extent the public 
benefit of tariff filing is ``independent'' or ``incidental'' to that 
of tariff filers, and, if ``independent,'' to comment on what 
proportion of the costs to tariff-filing carriers should be pro-rated 
to reflect any specific benefit to the general public. Below are the 
methodologies employed to calculate the cost of tariff and ET filing.
    Developing cost data for assessing a user fee for tariff filing 
presented unique problems. Unlike other fees, there is no data 
regarding costs for filing in the Commission's Automated Tariff Filing 
and Information System (``ATFI''). Because ATFI is a relatively new 
system, the Commission has had limited experience in estimating the 
cost of processing each ATFI filing type,\8\ but has nevertheless 
distinguished organizational records and ETs as unique elements within 
the tariff filing system. The Commission creates organizational records 
for its own administrative purposes, and that cost is included as part 
of the registration fee under ATFI. See Docket No. 94-14, Update of 
Existing Filing and Service Fees, for a discussion on registration 
fees.
---------------------------------------------------------------------------

    \8\The ATFI system is capable of identifying eight filing 
``objects''; organizational record, tariff record, location group, 
inland rate table, rule, commodity description, tariff line item 
(``TLI''), and essential term (this last object consists primarily 
of test).
---------------------------------------------------------------------------

    The cost of processing ETs was determined based on a survey of the 
amount of time the FMC spends reviewing ETs at a point in time. The 
Commission was able to distinguish ETs from other tariff filings 
because the amount of time required to process ETs remains relatively 
constant over time. In contrast, the amount of time devoted to the 
processing of other tariff filing types tends to vary substantially 
from individual item to item.
    The Commission was able to estimate the total amount of time its 
staff spends, on average, reviewing tariff filings during a given year: 
approximately 42,000 hours. This figure was derived by surveying and 
summing the amount of time the FMC spends reviewing individual tariff 
filing elements at a point in time, and projecting that amount over a 
year. Although the total amount of time spent reviewing tariff filing 
remains relatively stable over time, the amount of time spent reviewing 
individual elements varies on a daily basis. As a result, it was 
determined not to estimate the cost of processing tariff filing on an 
element by element basis, but rather to calculate the cost of tariff 
filing review based on the more reliable total number of hours spent 
reviewing tariff filings.
    Multiplying the hours spent by the average hourly wage of all 
reviewers ($19.56), direct labor costs for reviewing ATFI filings in a 
given year were calculated to be $821,520. Adding the indirect cost 
factor (99.50 percent), fully distributed cost for filings are about 
$1,639,000. To arrive at a per-filing cost, the fully distributed cost 
is divided by the estimated number of filings (approximately 
5,500,000), giving a per-filing cost of $0.29.
    Since the Commission pays a contractor for maintaining the ATFI 
system, the allocation of the contractor cost to each tariff filing is 
appropriate. Contractor data show that the total time the system is 
used annually is approximately 1,753,958 minutes, while industry use of 
the system for filing totals 451,203 minutes, or 25.72 percent of total 
system time used. The remaining time was used mostly by the Commission 
staff and by retrievers of data. Using this factor, the portion of the 
contractor cost ($1,100,000) allocated to filing is $282,920 
($1,338,514  x  25.72 percent). Allocating the $282,920 across the 
5,500,000\9\ filings gives a per-filing system cost of approximately 
$0.05. The per-filing system cost is added to the $0.29 per-filing cost 
to derive a total cost of $0.34 per filing.
---------------------------------------------------------------------------

    \9\This figure includes tariff filings and ET filings.
---------------------------------------------------------------------------

    As mentioned, the Commission was able to distinguish ETs from the 
other filings. Since ETs are similar in nature from one contract to the 
next and are in text format, processing time for the most part remains 
constant over time. It takes, on average, five minutes to review a 
typical ET filing. Again using the average hourly wage for reviewers, 
the direct labor cost for processing an ET filing is $1.62. Summing the 
direct labor cost and the indirect cost factor (99.50 percent), the 
fully distributed cost for processing an ET filing is $3.24. Adding the 
system charge of $0.05, the fully distributed cost comes to $3.29 per 
filing.
    In keeping with OMB Circular A-25, the Commission intends to update 
its fees on an annual basis. In updating its fees, the Commission will 
incorporate changes in wages and salaries of its employees into direct 
labor costs associated with its services, and recalculate its indirect 
costs (overhead) based on current level costs.
    The Commission certifies pursuant to section 605(b) of the 
Regulatory Flexibility Act, 5 U.S.C. 605(b), that this rule will not 
have a significant economic impact on a substantial number of small 
entities, including small businesses, small organizational units and 
small government jurisdictions. The Commission recognizes that the 
proposed fees may have some impact on the shipping industry, but not of 
the magnitude that would be contrary to the requirements of the 
Regulatory Flexibility Act. For the most part, entities impacted by the 
proposed increases are ocean common carriers who traditionally have not 
been viewed as small entities. Moreover, the Commission grants a waiver 
of the detailed reporting requirements to carriers which earn gross 
revenues of $25 million or less in a particular trade in accordance 
with 46 CFR 552.2(e). Furthermore, Commission regulations provide for 
waiver of fees for those entities that can make the required showing of 
undue hardship.
    OMB review is not required because this proposed rule does not 
contain any collection of information requirements as defined by the 
Paperwork Reduction Act of 1980, as amended.

List of Subjects

46 CFR Part 514

    Freight, Harbors, Maritime carriers, and Reporting and 
recordkeeping requirements.

46 CFR Part 552

    Maritime carriers, Reporting and recordkeeping requirements, and 
Uniform System of Accounts.

46 CFR Part 560

    Administrative practice and procedure, Antitrust, Freight, Maritime 
carriers, Penalties, and Reporting and recordkeeping requirements.

46 CFR Part 572

    Administrative practice and procedure, Maritime carriers, and 
Reporting and recordkeeping requirements.

    Pursuant to 5 U.S.C. 553, the Independent Offices Appropriations 
Act, 31 U.S.C. 9701, and section 17 of the Shipping Act of 1984, 46 
U.S.C. app. 1716, the Commission proposes to amend title 46 of the Code 
of Federal Regulations as follows:

PART 514--TARIFFS AND SERVICE CONTRACTS

    1. The authority citation for Part 514 continues to read as 
follows:

    Authority: 5 U.S.C. 552 and 553; 31 U.S.C. 9701; 46 U.S.C. app. 
804, 812, 814-817(a), 820, 833a, 841a, 843, 844, 845, 845a, 845b, 
847, 1702-1712, 1714-1716, 1718, 1721 and 1722; and sec. 2(b) of 
Public Law 101-92, 103 Stat. 601.

    2. In Sec. 514.1, the heading is revised and a new paragraph (f) is 
added to read as follows:
* * * * *


Sec. 514.1  Scope, purpose, requirements, penalties and fees.

* * * * *
    (f) Filing fee. Under the authority of the Independent Offices 
Appropriation Act, 31 U.S.C. 9701, the Commission assesses a filing fee 
for ATFI filings. See Sec. 514.21(i) for filing fees.

    3. In Sec. 514.21, paragraph (i) is added to read as follows:


Sec. 514.21  User charges.

* * * * *
    (i) Tariff filing fee. The fee for tariff filing in either the 
foreign or domestic offshore commerce of the United States shall be 34 
cents per filing object; the fee for filing service contract essential 
terms shall be $3.29 per filing object; the Commission shall bill 
filers monthly for both tariff filing and the filing of service 
contract essential terms.

PART 552--FINANCIAL REPORTS OF VESSEL OPERATING COMMON CARRIERS BY 
WATER IN THE DOMESTIC OFFSHORE TRADES

    4. The authority citation for Part 552 is revised to read as 
follows:

    Authority: 5 U.S.C. 553; 31 U.S.C. 9701; 46 U.S.C. app. 817(a), 
820, 841a, 843, 844, 845, 845a, and 847.

    5. In Sec. 552.2, the title is revised, new paragraphs (c)(3), 
(d)(3), and (f)(3) are added, and a sentence is added at the end of 
paragraph (e) to read as follows:
* * * * *


Sec. 552.2  General requirements and fees.

* * * * *
    (c) * * *
    (3) Applications shall be accompanied by remittance of a $55 filing 
fee.
    (d) * * *
    (3) Applications shall be accompanied by remittance of a $165 
filing fee.
    (e) * * * Applications shall be accompanied by remittance of a $103 
filing fee.
    (f) * * * (3) The filing of proposed rate changes described in this 
paragraph shall be accompanied by remittance of a $11,951 filing fee.
* * * * *

PART 560--AGREEMENTS BY COMMON CARRIERS AND OTHER PERSONS SUBJECT 
TO THE SHIPPING ACT, 1916

    6. The authority citation for Part 560 is revised to read as 
follows:

    Authority: 5 U.S.C. 553; 31 U.S.C. 9701; 46 U.S.C. app. 814, 
817(a), 820, 821, 833a and 841a.
* * * * *

Subpart C--Exemptions

* * * * *
    7. The following identical text is added as Secs. 560.302(c), 
560.303(c), 560.304(c), 560.305(c), 560.306(f), 560.307(g), 560.308(c) 
and 560.309(d) reading as follows:
    (  ) The filing fee for such agreements is described in section 
560.401(c).
* * * * *

Subpart D--Filing and Form of Agreements

* * * * *
    8. In section 560.401, the title is revised and a new paragraph (c) 
is added to read as follows:
* * * * *


Sec. 560.401  Filing of Agreements; fees.

* * * * *
    (c) Agreement filings for Commission action requiring detailed 
justification and review by the Commission shall be accompanied by 
remittance of a $1,402 filing fee; agreement filings for Commission 
action not requiring detailed justification, but requiring review by 
the Commission, shall be accompanied by remittance of a $695 filing 
fee; and, agreement filings for terminal and carrier exempt agreements 
shall be accompanied by remittance of a $120 filing fee.

Part 572--AGREEMENTS BY COMMON CARRIERS AND OTHER PERSONS SUBJECT 
TO THE SHIPPING ACT OF 1984

    9. The authority citation for Part 572 is revised to read as 
follows:

    Authority: 5 U.S.C. 553; 31 U.S.C. 9701; 46 U.S.C. app. 1701- 
1707, 1709-1710, 1712 and 1714-1717.

Subpart C--Exemptions

    10. The following identical text is added as Secs. 572.302(d), 
572.303(c), 572.304(c), 572.305(c), 572.306(f), 572.307(g), 572.308(e), 
572.309(c), 572.310(c) and 572.311(d) reading as follows:
    (  ) The filing fee for such agreements is described in 
Sec. 572.401(f).

    11. In section 572.401, the title is revised, and a new paragraph 
(f) is added to read as follows:
* * * * *


Sec. 572.401  Filing of agreements; filing fees.

* * * * *
    (f) Agreement filings for Commission action requiring an 
Information Form and review by the Commission shall be accompanied by 
remittance of a $1,402 filing fee; agreement filings for Commission 
action not requiring an Information Form, but requiring review by the 
Commission, shall be accompanied by remittance of a $695 filing fee; 
agreement filings reviewed under delegated authority shall be 
accompanied by remittance of a $353 filing fee; and agreement filings 
for terminal and carrier exempt agreements shall be accompanied by 
remittance of a $120 filing fee.

    By the Commission.
Joseph C. Polking,
Secretary.

Appendix A to the Proposed Rule 

                       Indirect Cost Calculations                       
                        [Applied to Direct Cost]                        
                                                                        
                                                                        
               A. Government Overhead Costs                             
                                                                        
Fringe benefits and                                                     
 other wage-related                                                     
 government                                                             
 contributions from                                                     
 OMB Circular A-76:                                                     
    Leave and                                                           
     Holidays......  19.70%                                             
    Retirement.....  21.70%                                             
    Workmen's Comp.                                                     
     Awards........  1.70%                                              
    Health, Life                                                        
     Insurance.....  4.70%                                              
    Medicare.......  1.45%                                              
                    ----------------------------------------            
      Total........  49.25%                                             
                                                                        
                                                                        
         B. Commission General and Administrative                       
                                                                        
Expenses allocated                                                      
 to the offices of                                                      
 the Commissioners,                                                     
 Managing Director,                                                     
 General Counsel,                                                       
 and Bureau of                                                          
 Administration (FY                                                     
 1994 amounts from                                                      
 FY 1995 OMB                                                            
 Budget):                                                               
    1. Personnel                                                        
     Costs.........  $4,155,500                                         
    2. Rent,                                                            
     Communications                                                     
     and Utilities.  1,009,468                                          
    3. Annual                                                           
     Report........  3,000                                              
    4. Data                                                             
     Information...  20,000                                             
    5. Printing....  9,619                                              
    6. Equipment                                                        
     Maintenance...  24,878                                             
    7. Leasehold                                                        
     Improvements..  20,000                                             
    8. Supplies and                                                     
     Materials.....  43,784                                             
    9. ADP Supplies  7,297                                              
    10. Furniture                                                       
     and Equipment.  9,288                                              
    11. Postage....  16,790                                             
    12. Fiscal                                                          
     Services......  24,878                                             
    13. Health                                                          
     Services......  8,127                                              
    14. Protective                                                      
     Services......  32,122                                             
    15. Duplicating                                                     
     Supplies......  7,982                                              
    16. Travel.....  42,000                                             
                    ----------------------------------------            
      Total........  $5,434,733                                         
Calculation of                                                          
 overhead                                                               
 percentage:                                                            
    Commiss                                                     
     ion G & A                                                          
                                                                
     Agency Funding                                                     
     =.............  % Overhead                                         
    Total                                                       
     Agency Funding                                                     
     for FY 1994...  $18,900,000                                        
    Commiss                                                     
     ion G & A.....  $5,434,733                                         
    Overhea                                                     
     d Percentage                                                       
     ($5,434,733                                                        
                                                                
     $18,900,000):.  28.76%                                             
                                                                        
           C. Office General and Administrative                         
                                                                        
Overhead expenses                                                       
 allocated to                                                           
 Offices and                                                            
 Bureaus involved                                                       
 in fee-generating                                                      
 activities                                                             
 (excluding ATFI):                                                      
    1. Rent,                                                            
     Communications                                                     
     , and                                                              
     Utilities.....  $968,401                                           
    2. Postage.....  18,518                                             
    3.                                                                  
     Miscellaneous                                                      
     Printing......  10,597                                             
    4. Credit                                                           
     Reports.......  8,750                                              
    5. Equipment                                                        
     Maintenance...  27,405                                             
    6. Fiscal                                                           
     Services......  27,405                                             
    7. Health                                                           
     Services......  10,962                                             
    8. Protective                                                       
     Services......  31,790                                             
    9. Supplies and                                                     
     Materials.....  48,233                                             
    10. ADP                                                             
     Supplies......  8,039                                              
    11. Duplicating                                                     
     Supplies......  8,770                                              
    12. Furniture                                                       
     and Equipment.  3,654                                              
    13. ADP                                                             
     Equipment.....  6,577                                              
                    ----------------------------------------            
      Total........  $1,179,101                                         
Calculation of                                                          
 overhead                                                               
 percentage:                                                            
    Overhea                                                     
     d Expenses                                                         
                                                                
     Bureau/Office                                                      
     Funding =.....  % Overhead                                         
    Funding                                                     
     for Bureaus/                                                       
     Offices (FY                                                        
     1994 amounts                                                       
     from FY 1995                                                       
     OMB Budget):                                                       
        and                                                             
         Secretary.  $910,000                                           
        Trade                                                           
         Monitoring                                                     
         and                                                            
         Analysis..  $1,846,000                                         
        Tariffs,                                                        
         Certificat                                                     
         ion and                                                        
         Licensing.  $2,730,000                                         
                    ----------------------------------------            
          Total....  $5,486,000                                         
    Office                                                      
     G & A:........  $1,179,101                                         
    Overhea                                                     
     d Percentage                                                       
     ($1,179,101                                                        
                                                                
     $5,486,000):..  21.49%                                             
                                                                        
 D. Total Indirect                                                      
Cost Factor (Sum of                                                     
    A through C)                                                        
                                                                        
A. Government                                                           
 Overhead Costs....  49.25%                                             
B. Commission                                                           
 General and                                                            
 Administrative....  28.76%                                             
C. Office General                                                       
 and Administrative  21.49%                                             
                    ----------------------------------------            
      Total........  99.50%                                             

Appendix B to the Proposed Rule 

                       Federal Maritime Commission                      
                       [Summary of Proposed Fees]                       
------------------------------------------------------------------------
     CFR citation and application or service            Proposed fee    
------------------------------------------------------------------------
                                                                        
      Part 514--TARIFFS AND SERVICE CONTRACTS                           
                                                                        
514.21(i):                                                              
    Tariff filing.................................  34 cents per filing 
                                                     object.            
                                                                        
    Filing service contract essential terms.......  $3.29 per filing    
                                                     object.            
                                                                        
  Part 552--FINANCIAL REPORTS OF VESSEL OPERATING                       
 COMMON CARRIERS BY WATER IN THE DOMESTIC OFFSHORE                      
                      TRADES                                            
                                                                        
552.2(f)General Rate Increase.....................  $11,951             
552.2(c)Application for Extension of Time for       $55                 
 Filing.                                                                
552.2(d)Application for Submission of Alternative   $165                
 Data.                                                                  
552.2(e)Application for Waiver of Detailed          $103                
 Reporting Requirements.                                                
                                                                        
 Part 560--AGREEMENTS BY COMMON CARRIERS AND OTHER                      
     PERSONS SUBJECT TO THE SHIPPING ACT, 1916                          
                                                                        
560.401(c)                                                              
    Agreement Filings Requiring Detailed            $1,402              
     Justification and Commission Action.                               
    Agreement Filings not Requiring Detailed        $695                
     Justification but Requiring Commission Action.                     
    Agreement Filing for Terminal and Carrier       $120                
     Exempt Agreements.                                                 
                                                                        
 Part 572--AGREEMENTS BY COMMON CARRIERS AND OTHER                      
    PERSONS SUBJECT TO THE SHIPPING ACT OF 1984                         
                                                                        
572.401(f)                                                              
    Agreement Filings Requiring Information Form    $1,402              
     and Commission Action.                                             
    Agreement Filings not Requiring Information     $695                
     Form but Requiring Commission Action.                              
    Agreement Filing Reviewed Under Delegated       $353                
     Authority.                                                         
    Agreement Filing for Terminal and Carrier       $120                
     Exempt Agreements.                                                 
------------------------------------------------------------------------

[FR Doc. 94-18381 Filed 7-27-94; 8:45 am]
BILLING CODE 6730-01-W