[Federal Register Volume 59, Number 157 (Tuesday, August 16, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-20049]


[[Page Unknown]]

[Federal Register: August 16, 1994]


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PANAMA CANAL COMMISSION

35 CFR Part 103

RIN 3207-AA36

 

General Provisions Governing Vessels

AGENCY: Panama Canal Commission.

ACTION: Proposed rule.

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SUMMARY: Under existing regulations, fees for booking transits at the 
Panama Canal are assessed at a fixed rate per Panama Canal Gross Ton. 
The Panama Canal Commission has proposed a major revision of the rules 
for measurement of vessels using the Panama Canal expected to become 
effective October 1, 1994. Under the proposal, the existing rules of 
measurement will be replaced with the Panama Canal Universal 
Measurement System (PC/UMS). PC/UMS will no longer utilize a Panama 
Canal Gross Tonnage value. Accordingly, fees for the use of the transit 
booking or reservation system must be assessed on some other basis. 
This proposed rule recommends retention of the existing method of 
calculating booking fees for vessels subject to PC/UMS transitional 
relief measures and the fixing of fees for all other vessels in 
reference to the PC/UMS Net Ton.

DATES: Comments must be submitted on or before August 25, 1994.

ADDRESSES: Comments may be addressed to Michael Rhode, Jr., Secretary, 
Panama Canal Commission, 1825 I Street NW, Suite 1050, Washington, DC 
20006-5402, (Telephone: (202) 634-6441), (Facsimile: (202) 634-6439).

FOR FURTHER INFORMATION CONTACT: Michael Rhode, Jr. at the above 
address and telephone.

SUPPLEMENTARY INFORMATION: On April 18, 1994, the Panama Canal 
Commission published in the Federal Register (59 FR 18332) an advance 
notice of proposed rulemaking with a request for comments and a notice 
of hearing with respect to a related matter--a complete revision of the 
Rules for Measurement of Vessels for the Panama Canal as set forth in 
35 CFR part 135. Comments were solicited and received, and a public 
hearing was held May 25, 1994 in Washington, DC. The views presented by 
the interested parties were considered by the Board of Directors of the 
Panama Canal Commission. The Board gave final approval on July 13, 1994 
to proceed with implementation of the PC/UMS. The proposed rule 
together with the Board's recommendation was forwarded to the President 
for his approval. The proposed rule was published in the Federal 
Register on July 18, 1994 (59 FR 36398). It is expected that, on or 
before August 30, the final rule will be approved by the President and 
published in the Federal Register. It is scheduled to become effective 
October 1, 1994.
    Corresponding changes in the transit booking system regulations are 
necessary to reconcile 35 CFR Sec. 103.8(e) with the aforementioned 
revisions to the rules for measurement of vessels using the Panama 
Canal. Under existing Sec. 103.8(e), fees for booking transits at 
Panama Canal are assessed at $0.23 per Panama Canal Gross Ton. With the 
expected replacement of the existing regulations on October 1, 1994, a 
Panama Canal Gross Ton value will no longer exist. Instead, under the 
revisions, the new PC/UMS will utilize a PC/UMS Net Ton value. 
Accordingly, in order to continue using tonnage as the basis for rate 
assessment for the transit booking system, fees must be assessed on the 
tonnage value used in the PC/UMS. Therefore, the Commission proposes 
that for vessels transiting the Canal for the first time after 
September 30, 1994 transit booking fees be fixed in relation to the PC/
UMS Net Ton.
    At the same time, however, the Commission desires to minimize the 
financial impact of the change on the customer. As with the PC/UMS 
itself, the Commission is striving for revenue-neutrality in the 
aggregate and for minimal impact for the individual customer. 
Therefore, the proposed rule also provides special relief measures for 
vessels which have previously transited the Canal.
    In the first category--vessels which have not transited the Canal 
before October 1, 1994, the proposed regulation establishes a proposed 
new rate of $0.26 per PC/UMS Net Ton. This rate of $0.26 per PC/UMS Net 
Ton is expected to result in a booking fee near the rate assessed under 
the existing system. In other words, the amount paid by an individual 
vessel at $0.26 per PC/UMS Net Ton will closely approximate the amount 
it would have paid at $0.23 per Panama Canal Gross Ton. The new booking 
fee rate system will be applied to a limited number of vessels inasmuch 
as the number of first-time transits involves a relatively small number 
of vessels each year.
    As noted above, the Commission's intention is to revise the rate in 
a manner which maintains fees at approximately the same level as 
currently paid by individual vessels. Retention of the $0.23 rate--
merely fixing fees at $0.23 per PC/UMS Net Ton--could reduce individual 
booking fees as much as 20%. Inasmuch as the intent of this proposal is 
solely to reconcile paragraph 103.8(e) with the new standard tonnage 
measurement and not to otherwise alter the booking fees, the agency 
proposes the $0.26 rate which approximates present booking fees without 
increasing customer costs.
    For the other and larger category--vessels which have previously 
transited the Canal, the proposal retains the existing booking fee 
computation method. This recommendation has its genesis in the proposed 
revisions to the Rules for Measurement of Vessels using the Panama 
Canal. The PC/UMS proposed rule contains transitional relief measures 
which preserve existing tonnage for ships transiting the Canal between 
March 23, 1976 (the date of the last significant rules change) and 
September 30, 1994, inclusive. In the instant proposed rule, the 
Commission proposes that the method for assessing booking fees for 
these vessels be similarly retained. Vessels meeting the aforementioned 
PC/UMS requirements for transitional relief which use the booking 
system after September 30, 1994 will not be affected inasmuch as they 
will continue to pay the same fee--$0.23 per Panama Canal Gross Ton. 
For these previously-transiting vessels, the booking fee would change 
only in the event the vessel undergoes a significant structural change, 
defined in the PC/UMS as a change in the volume of the vessel of 10% or 
more. Under the PC/UMS, a vessel undergoing a significant structural 
change loses its entitlement to the relief measures and becomes subject 
to application of the PC/UMS measurement formulas. In such an instance, 
the new rate of $0.26 per PC/UMS Net Ton would be applied to the 
vessel.
    The Commission has been exempted from Executive Order 12866 and, 
accordingly, the provisions of that directive do not apply to this 
proposed rule. Even if the order were applicable, the proposed 
regulation, which concerns ``rates'' and ``practices relating'' 
thereto, would not constitute a ``rule'' as that term is defined in the 
Regulatory Flexibility Act (5 U.S.C. 601(2)) and would not have a 
significant impact on a substantial number of small entities under that 
Act.
    A review of the environmental effect of the proposed measurement 
rule changes concludes that the proposed change will not have a 
significant effect on the quality of the human environment. An 
environmental impact statement is not required under the National 
Environmental Policy Act of 1969.
    Finally, the Administrator of the Panama Canal Commission certifies 
that these proposed regulations meet the applicable standards provided 
in sections 2(a) and 2(b)(2) of Executive Order No. 12778.

List of Subjects in 35 Part 103

    Advance reservations, Booking system, Order of transit, Panama 
Canal, Vessels.

    Accordingly, for the reasons set forth above, it is proposed that 
35 CFR part 103 be amended as follows:

PART 103--GENERAL PROVISIONS GOVERNING VESSELS

    1. The authority citation for part 103 is revised to read as 
follows:

    Authority: 22 U.S.C. 3791, E.O. 12215, 45 FR 36043, 3 CFR, 1981 
Comp., p. 257.

    2. Paragraph (e) of Sec. 103.8 is revised to read as follows:


Sec. 103.8   Preference in the transit schedule; order of transiting 
vessels.

* * * * *
    (e) Booking Fees. (1) For vessels measured in accordance with 
Sec. 135.13(a) of this chapter, the fee for booking shall be $0.26 per 
PC/UMS Net Ton.
    (2) For vessels subject to the transitional relief measures of 
Sec. 135.31 of this chapter and measured in accordance with 
Sec. 135.13(b) of this chapter, the fee for booking shall be $0.23 per 
Panama Canal Gross Ton as specified on the last certificate issued by 
the Panama Canal Commission between March 23, 1976 and September 30, 
1994, inclusive.
    (3) The minimum booking fee for any vessel is $1,500.
* * * * *
(Existing collections of information are approved under Office of 
Management and Budget (OMB) control number 3207-0001. Modifications are 
being submitted to OMB for approval.)

    Dated: August 10, 1994.
Gilberto Guardia F.,
Administrator, Panama Canal Commission.
[FR Doc. 94-20049 Filed 8-15-94; 8:45 am]
BILLING CODE 3640-04-P