[Federal Register Volume 60, Number 99 (Tuesday, May 23, 1995)]
[Proposed Rules]
[Pages 27248-27249]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-12512]
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FEDERAL MARITIME COMMISSION
46 CFR Part 514
[Docket No. 95-08]
Service Contract Filing Requirements--Miscellaneous Revisions
AGENCY: Federal Maritime Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Federal Maritime Commission proposes to amend its rules to
provide an optional, abbreviated service contract format and to require
service contracts to include certain identifying information concerning
the signatories. This should reduce duplication and Commission and
carrier costs, as well as facilitate automation of the Commission's
service contract records.
DATES: Comments due June 22, 1995.
ADDRESSES: Comments (original and 15 copies) are to be submitted to:
Joseph C. Polking, Secretary, Federal Maritime Commission, 800 North
Capitol Street, N.W., Washington, D.C. 20573, (202) 523-5725.
FOR FURTHER INFORMATION CONTACT: Bryant L. VanBrakle, Director, Bureau
of Tariffs, Certification and Licensing, Federal Maritime Commission,
800 North Capitol Street, N.W., Washington, D.C. 20573, (202) 523-5796.
SUPPLEMENTARY INFORMATION: Service contracts subject to section 8(c) of
the Shipping Act of 1984 (``1984 Act'' or ``the Act''), 46 U.S.C. app.
1707(c),1 are filed confidentially with the Federal Maritime
Commission (``FMC'' or ``Commission'').2 Prior to such filing, a
statement of each contract's essential terms (``ET'') is filed
electronically in the Commission's Automated Tariff Filing and
Information System (``ATFI''), made available to the general public in
tariff format, and offered to all similarly situated shippers.3
\1\ A service contract is defined by section 3(21) of the Act
as:
* * * a contract between a shipper and an ocean common carrier
or conference in which the shipper makes a commitment to provide a
certain minimum quantity of cargo over a fixed time period, and the
ocean common carrier or conference commits to a certain rate or rate
schedule as well as a defined level--such as assured space, transit
time, port rotation, or similar service features; the contract may
also specify provisions in the event of nonperformance on the part
of either party.
\2\ Section 8(c) of the 1984 Act provides:
* * * each [service] contract entered into * * * shall be filed
confidentially with the Commission, and at the same time, a concise
statement of its essential terms shall be filed with the Commission
and made available to the general public in tariff format, and those
essential terms shall be available to all shippers similarly
situated. The essential terms shall include--
(1) the origin and destination port ranges in the case of port-
to-port movements, and the origin and destination geographic areas
in the case of through intermodal movements;
(2) the commodity or commodities involved;
(3) the minimum volume;
(4) the line-haul rate;
(5) the duration;
(6) service commitments; and
(7) the liquidated damages for nonperformance, if any.
\3\ This requirement is implemented in the Commission's rules
and regulations at 46 CFR 514.7(f)(1).
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ETs have been required to be filed in ATFI since November 1993.
However, the associated confidential service contracts continue to be
filed in paper format and can often be of considerable length. There is
significant duplication between a service contract's text and that of
its corresponding ET. To the extent the overlap between these
interdependent documents can be minimized, the rate of error between
the two documents should also be reduced.
Because service contracts are filed confidentially with the
Commission, they must be secured under lock and key. Given the rapidly
rising number of contract filings, and their sheer physical bulk, these
documents are consuming an ever larger portion of the Commission's
limited secured storage space.
Apart from the foregoing, the Commission is also proposing to
address a ministerial detail relating to the content of service
contracts. The current service contract rules do not require contracts
to set forth the signatories' addresses. This has resulted in
difficulty in clearly identifying shipper parties, including named
affiliates, to certain service contracts, and, in some cases, hampered
the Commission's investigative efforts.
The Commission therefore proposes to afford service contract
parties the option of filing their service contracts in an abbreviated
format, on condition that such filings incorporate by reference the
corresponding ATFI ETs; certify that said ET contains all aspects of
the parties' contract which are not set forth in the service contract
filing; and set forth certain specific information. The FMC also
proposes to require service contracts to set forth the parties' names,
titles and addresses.
The collection of information requirements contained in this
proposed rule have been submitted to the Office of Management and
Budget for review under the provisions of the Paperwork Reduction Act
of 1980 (Pub. L. 96-511), as amended. Public reporting burden for this
collection of information is estimated to decrease to an average of one
manhour per response, including the time for reviewing instructions,
searching existing data sources, gathering and maintaining the data
needed, and completing and reviewing the collection of information.
Send comments regarding this burden estimate or any other aspect of
this collection of information, including suggestions for reducing the
burden, to Bruce A. Dombrowski, Deputy Managing Director, Federal
Maritime Commission, Washington, D.C. 20573 and to the Office of
Information and Regulatory Affairs, Office of Management and Budget,
Washington, D.C. 20503.
The Chairman of the Commission certifies, pursuant to section
605(b) of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., that
this proposed rule will not have a significant economic impact on a
substantial number of small entities, including small businesses, small
organizational units, and small governmental jurisdictions.
List of Subjects in 46 CFR Part 514
Administrative practice and procedure, Antitrust, Automatic data
processing, Cargo vessels, Confidential business information,
Contracts, Exports, Freight, Freight forwarders, Imports, Maritime
carriers, Penalties, Rates and fares, Reporting and recordkeeping
requirements.
Therefore, pursuant to 5 U.S.C. 553 and sections 3, 8, and 17 of
the Shipping Act of 1984 (46 U.S.C. app. 1702, 1707 and 1716), the
Federal Maritime Commission proposes to amend Part 514 of Title 46 of
the Code of Federal Regulations as follows:
PART 514--[AMENDED]
1. The authority citation for Part 514 continues to read:
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
Pub. L. 101-92, 103 Stat. 601.
2. Section 514.7 is amended by revising paragraphs (h)(1)(v) and
(h)(1)(vi) and adding paragraph (h)(2)(i)(C) to read as follows:
[[Page 27249]]
Sec. 514.7 Service contracts in foreign commerce.
* * * * *
(h) * * *
(1) * * *
(v) The true and complete names and addresses of the contract
parties and the typewritten names, titles and addresses of the
representatives signing the contract for the parties. Any further
references in the contract to such parties shall be consistent with the
first reference (e.g., (exact name), ``carrier,'' ``shipper,'' or
``association,'' etc.); and
(vi) The true and complete names and addresses of every affiliate
of each contract party named under paragraph (h)(1)(v) of this section
entitled to receive or authorized to offer services under the contract,
except that in the case of a contract entered into by a conference or
shippers' association, individual members need not be named unless the
contract includes or excludes specific members. In the event the list
of affiliates is too lengthy to be included on the first page,
reference shall be made to the exact location of such information.
* * * * *
(2) * * *
(i) * * *
(C) Section 514.7(h)(2)(i)(A) does not apply to a service contract
that incorporates by reference all of the associated essential terms
filing as published in ATFI, provided that the parties certify that,
other than for those provisions set forth in the filed service
contract, such essential terms filing sets forth the parties' true and
complete contract.1
\1\ See Exhibit II of this part for an example of an abbreviated
format service contract.
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* * * * *
By the Commission.
Joseph C. Polking,
Secretary.
Exhibit II to Part 514
Sample Abbreviated Format Service Contract
Service Contract No.: SC 1-95
FMC File No.: 50,000
Essentials Terms No.: ET 1-95
Amendment No.: ______
Service Contract Essential Terms Publication No.: 003
Tariff(s) of General Applicability No.: 001, 002
Carrier/Conference Name: Efficient Liner Transportation, Inc.
Carrier/Conference Address: 1227 Seaway Drive, Washington, DC 20573
and
Shipper Name: ABC Electronics Company
Shipper Address: 7221 Happiness Lane, New York, NY 10001
This is a service contract pursuant to the Shipping Act of 1984
(46 U.S.C. app. 1701 et seq.) and FMC rules at 46 C.F.R. Part 514,
between ``CARRIER/CONFERENCE'' and ``SHIPPER'' parties named herein.
The contract parties certify that the terms set forth herein and the
essential terms as published in Carrier/Conference Service Contract
Essential Terms Tariff No. 003, ET No. 1-95, in the Federal Maritime
Commission's Automated Tariff Filing and Information System,
constitute the true and complete copy of all aspects of this
contract and are hereby incorporated by reference.
Further, shipper party named herein certifies its status and
that of any affiliate(s)/subsidiary(ies) named herein as (check
appropriate box(es):
{time} NVOCC
{time} Shippers' Association
{time} Owner of Cargo
{time} Other (Please specify)
Records maintained to support shipments under this service
contract are: bills of lading, shipping manifests, and other related
written correspondence between contract parties.
Contact person for records in the event of a request by the
Federal Maritime Commission: Efficient Liner Transportation, Inc.,
Traffic Manager, 1227 Seaway Drive, Washington, DC 20573, (202) 523-
5856.
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(Carrier/Conference Signature)
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Carl T. Booker, President
Efficient Liner Transportation, Inc.
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(Shipper Signature)
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Vanessa M. Banks, President
ABC Electronics Company
Affiliate of shipper: Quality Compact Discs, Inc.
Affiliate's address: 7221-A Happiness Lane, New York, NY 10001
[FR Doc. 95-12512 Filed 5-22-95; 8:45 am]
BILLING CODE 6730-01-P