[Federal Register Volume 59, Number 155 (Friday, August 12, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-19664]


[[Page Unknown]]

[Federal Register: August 12, 1994]


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FEDERAL MARITIME COMMISSION
[Fact Finding Investigation No. 22]

 

Possible Rate Malpractices in Specified United States--Foreign 
Trade; Order

    The Federal Maritime Commission has reason to believe that persons 
participating in the trades between ports and points in the United 
States and ports and points in Europe, the Far East, South America, 
Central America or the Caribbean (``the specified Trades'') may have 
obtained, or attempted to obtain, transportation of property by water 
at less or different compensation than the rates and charges shown in 
applicable tariffs or service contracts. The various unfair devices or 
means which may have been used include rebates, concessions, 
absorptions and allowances other than those set forth in applicable 
tariffs, misdeclarations and other similar practices, in violation of 
the prohibitions of section 10(a)(1) of the Shipping Act of 1984 
(``1984 Act''), 46 U.S.C. app. 1709(a)(1).
    The Commission also has reason to believe that common carriers 
operating in the United States foreign commerce in the specified 
Trades, directly or indirectly, may have provided, or allowed other 
persons to obtain transportation of property at less or different 
compensation than the rates and charges shown in applicable tariffs or 
service contracts. These actions may have been accomplished by failure 
to file a common carrier tariff and by various unfair devices or means, 
such as rebates, concessions, absorptions and allowances other than 
those set forth in applicable tariffs and through misdeclarations and 
other similar practices, in violation of the prohibitions of sections 8 
and 10(b) of the 1984 Act, 46 U.S.C. app. 1707 and 1709(b).
    If established, such violations are subject to civil penalties not 
to exceed $25,000 for each violation willfully and knowingly committed, 
pursuant to section 13(a) of the 1984 Act, 46 U.S.C. app. 1712(a). 
Additionally, carriers who rebate or commit other rate malpractices in 
contravention of their tariffs or service contracts may have their 
tariffs or their participation in conference tariffs suspended by the 
Commission pursuant to section 13(b)(1) of the 1984 Act, 46 U.S.C. app. 
1712(b)(1).
    In order to ensure the proper and effective administration and 
enforcement of the shipping statutes, the Commission is instituting a 
nonadjudicatory investigation to determine whether sufficient evidence 
exists to warrant informal compromise procedures or formal 
investigation and assessment proceedings for violations of the 1984 Act 
with regard to the transportation of property in the specified Trades.
    The Commission presently has in effect Fact Finding Investigation 
No. 16, Possible Malpractices in the Trans-Atlantic Trades (``FFI No. 
16''), and Fact Finding Investigation No. 18, Rebates and Other 
Malpractices in the Trans-Pacific Trades (``FFI No. 18''). Because the 
purpose and scope of FFI No. 16 and FFI No. 18 are included within the 
nonadjudicatory fact finding investigation instituted by this Order, 
FFI No. 16 and FFI No. 18 will be terminated by separate Orders at such 
time as final reports are submitted by the Investigative Officers and 
accepted by the Commission. Any outstanding subpoenas or investigative 
activities of FFI No. 16 and FFI No. 18 remain in force and are 
incorporated in this newly instituted fact finding investigation.
    Therefore, it is ordered, That pursuant to sections 8, 10, 11 and 
12 of the Shipping Act of 1984, 46 U.S.C. app. 1707, 1709, 1710 and 
1711, and Part 502, Subpart R of Title 46 of the Code of Federal 
Regulations, 46 CFR 502.281, et seq., a nonadjudicatory investigation 
is hereby instituted into the practices of common carriers and other 
persons with respect to untariffed transportation activity and the 
possible payment of rebates and any other devices or means of 
providing, or allowing persons to obtain, transportation of property at 
less or different compensation than the rates and charges shown in 
applicable tariffs or service contacts, in the trades between United 
States ports and points and ports and points in Europe, the Far East, 
South America, Central America or the Caribbean;
    It is further ordered, That the Investigative Officers shall be Wm. 
Jarrel Smith, Jr., Vern W. Hill, Peter J. King, Charles L. Haslup, III, 
and Joseph B. Slunt of the Commission. The Investigative Officers shall 
be assisted by staff members as may be assigned by the Commission's 
Managing Director and shall have full authority to hold public or non-
public sessions, to resort to all compulsory process authorized by law 
(including the issuance of subpoenas ad testificandum and duces tecum), 
to administer oaths and to perform such other duties as may be 
necessary in accordance with the laws of the United States and the 
regulations of the Commission;
    It is further ordered, That the Investigative Officers shall issue 
a joint report of activities, findings and recommendations no later 
than one year after publication of this Order in the Federal Register, 
and at least yearly thereafter, such reports to remain confidential 
unless and until the Commission rules otherwise;
    It is further ordered, That at such time as FFI No. 16 and FFI No. 
18 are terminated by Order of the Commission, any subpoena or 
investigative activity in FFI No. 16 and FFI No. 18 outstanding at the 
time of termination shall be continued in force and is incorporated 
herein;
    It is further ordered, That this proceeding will remain in effect 
until discontinued by further Order of the Commission; and
    It is further ordered, That notice of this Order be published in 
the Federal Register.

    By the Commission.
Joseph C. Polking,
Secretary.
[FR Doc. 94-19664 Filed 8-11-94; 8:45 am]
BILLING CODE 6730-01-M