[Federal Register Volume 59, Number 228 (Tuesday, November 29, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-29248]


[[Page Unknown]]

[Federal Register: November 29, 1994]


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FEDERAL MARITIME COMMISSION

[Docket No. 94-27]

 

Olympic International Freight Forwarders, Inc.--Possible 
Violations of Sections 10(a)(1) and 19 of the Shipping Act of 1984 and 
of the Commission's Freight Forwarding Regulations; Order of 
Investigation

    Olympic International Freight Forwarders, Inc. (``Olympic'') is a 
Florida corporation with an office in Miami, Florida. Olympic was 
licensed to operate as an independent ocean freight forwarder in 1978 
(FMC No. 1700)\1\ and filed a tariff to operate as a non-vessel-
operating common carrier in 1991.\2\ Based upon the complaint of a 
Venezuelan manufacturer of appliances, the Commission initiated an 
informal investigation of allegations that Olympic, in the capacity of 
an independent ocean freight forwarder, provided false commodity 
descriptions on export documents for shipments to Venezuela in order to 
obtain lower import duties and ocean freight charges.
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    \1\Olympic's independent ocean freight forwarder license, FMC 
No. 1700, was revoked by the Commission for failure to maintain a 
surety bond on December 23, 1992.
    \2\Olympic canceled its tariff effective September 30, 1994.
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    After a review of Olympic's shipments to Venezuela, it appears that 
on at least 18 shipments Olympic described the commodities to be 
transported on ocean carrier bills of lading as electrical material, 
while on the shipper's export declarations, Olympic described the 
commodities as electrical appliances. The shipments, in fact, consisted 
of electrical appliances such as washers, dryers, freezers, ovens, 
refrigerators and air conditioners.
    It appears that Olympic, as freight forwarder, misdescribed the 
shipments to the ocean carrier and paid the ocean freight charges on 
behalf of the consignee based on the misdescription of the commodities 
transported as electrical materials. This resulted in significant 
freight savings to the consignee. In addition, it appears that for 15 
of the 18 shipments Olympic declared on the ocean carrier bills of 
lading that the shipments were transported in 40 foot containers when, 
in fact, they were shipped in 45 foot containers. This practice 
resulted in additional freight savings to the consignee.
    Section 10(a)(1) of the Shipping Act of 1984 Act (``1984 Act''), 46 
U.S.C. app. 1709, provides that no person may knowingly and willfully 
obtain or attempt to obtain ocean transportation for property at less 
than the applicable rates or charges. Section 19 of the 1984 Act, 46 
U.S.C. app. 1718(a), provides that no person may act as an ocean 
freight forwarder unless that person holds a license issued by the 
Commission. Part 510.21(f) of the Commission's freight forwarder 
regulations, 46 CFR 510.21(f), provides that no licensee shall prepare 
or file any document concerning a forwarding transaction which it has 
reason to believe is false nor shall any licensee knowingly impart to a 
common carrier any false information in regard to any forwarding 
transaction. Part 510.22(d) of the Commission's freight forwarder 
regulations, 46 CFR 510.22(d), likewise requires every licensee to 
assure that no error or misrepresentation exists in any export 
declaration, bill of lading or other document which the licensee 
executes in connection with a shipment.
    It appears that Olympic, in the capacity of a licensed ocean 
freight forwarder, knowingly and willfully prepared bills of lading 
which provided false commodity information and false container sizes to 
ocean carriers resulting in its client paying less for the 
transportation of property than the applicable freight rates and 
charges. In addition, there is information that Olympic continued to 
perform freight forwarding services after the revocation of its license 
and after receiving written notification from the Commission to 
terminate all unlicensed forwarding activity.
    Now therefore it is ordered, that pursuant to sections 10, 11, 13 
and 19 of the Shipping Act of 1984, 46 U.S.C. app. 1709, 1710, 1712, 
and 1718, an investigation is hereby instituted to determine:
    1. Whether Olympic violated section 10(a)(1) of the 1984 Act, for 
obtaining transportation of property at less than the applicable rates 
or charges; (2) section 19(a), for acting as an ocean freight forwarder 
without a license issued by the Commission; (3) Part 510.21(f) of the 
Commission's regulations, for imparting to a common carrier false 
information in regard to a forwarding transaction; and (4) Part 
510.22(d) of the Commission's regulations, for failing to assure that 
no error or misrepresentation existed in bills of lading executed in 
connection with its forwarding activity.
    2. Whether, in the event Olympic violated the 1984 Act and/or the 
Commission's regulations, civil penalties should be assessed against 
Olympic and, if so, the amount of such penalties.
    3. Whether, in the event violations are found, an appropriate cease 
and desist order should be issued.
    It is further ordered, that a public hearing will be held in this 
proceeding and that this matter be assigned for hearing before an 
Administrative Law Judge of the Commission's Office of Administrative 
Law Judges at a date and place to be hereafter determined by the 
Administrative Law Judge in compliance with rule 61 of the Commission's 
rules of practice and procedure, 46 CFR 502.61. The hearing shall 
include oral testimony and cross-examination in the discretion of the 
Presiding Officer only after consideration has been given by the 
parties and the Presiding Officer to the use of alternative forms of 
dispute resolution, and upon proper showing that there are genuine 
issues of material fact that cannot be resolved on the basis of sworn 
statements, affidavits, depositions, or other documents or that the 
nature of the matter in issue is such that an oral hearing and cross-
examination are necessary for the development of an adequate record;
    It is further ordered, that Olympic International Freight 
Forwarders, Inc. be named a Respondent in this proceeding; It is 
further ordered, That the Commission's Bureau of Hearing Counsel is 
designated a party to this proceeding;
    It is further ordered, that notice of this Order be published in 
the Federal Register, and a copy be served on parties of record;
    It is further ordered, that other persons having an interest in 
participating in this proceeding may file petitions for leave to 
intervene in accordance with Rule 72 of the Commission's rules of 
practice and procedure, 46 CFR 502.72;
    It is further ordered, that all further notices, orders, and/or 
decisions issued by or on behalf of the Commission in this proceeding, 
including notice of the time and place of hearing or prehearing 
conference, shall be served on parties of record;
    It is further ordered, that all documents submitted by any party of 
record in this proceeding shall be directed to the Secretary, Federal 
Maritime Commission, Washington, DC 20573, and comply with subpart H of 
the Commission's rules of practice and procedure, 46 CFR 502.111-119, 
and shall be served on parties of record; and
    It is further ordered, that in accordance with Rule 61 of the 
Commission's rules of practice and procedure, 46 CFR 502.61, the 
initial decision of the Administrative Law Judge shall be issued by 
November 21, 1995, and the final decision of the Commission shall be 
issued by March 21, 1996.

    By the Commission.
Joseph C. Polking,
Secretary.
[FR Doc. 94-29248 Filed 11-28-94; 8:45 am]
BILLING CODE 6730-01-M