[Federal Register Volume 60, Number 166 (Monday, August 28, 1995)]
[Rules and Regulations]
[Pages 44436-44438]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20949]
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FEDERAL MARITIME COMMISSION
46 CFR Parts 514 and 583
[Docket No. P2-95]
Household Goods Forwarders Association of America, Inc., Petition
for Exemption
AGENCY: Federal Maritime Commission.
ACTION: Final rule.
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SUMMARY: The Federal Maritime Commission (``Commission'' or ``FMC'') is
amending its regulations to exempt non-vessel-operating common carriers
by water from the tariff filing requirement of Part 514 and the bonding
requirement of Part 583, to the extent that they transport used
household goods and personal effects of federal civilian employees
pursuant to a solicitation issued and administered by the General
Services Administration. These carriers are already subject to a GSA
requirement that they post a performance bond in excess of the
Commission's bonding requirement, and the rates for such services will
be filed with GSA. The exemption will remove duplicative requirements
and result in lower costs.
EFFECTIVE DATE: Effective August 28, 1995.
FOR FURTHER INFORMATION CONTACT:
Robert D. Bourgoin, General Counsel, Federal Maritime Commission, 800
North Capitol Street NW., Washington, DC 20573, (202) 523-5740;
and
Bryant L. VanBrakle, Director, Bureau of Tariffs, Certification and
Licensing, Federal Maritime Commission, 800 North Capitol Street NW.,
Washington, DC 20573, (202) 523-5796.
SUPPLEMENTARY INFORMATION: The Household Goods Forwarders Association
of America, Inc. (``HHGFAA'' or ``Petitioner'') has filed a Petition
for Exemption (``Petition'') pursuant to section 16 of the Shipping Act
of 1984 (``1984 Act''), 46 U.S.C. app. 1715, and section 35 of the
Shipping Act, 1916 (``1916 Act''), 46 U.S.C. app. 833a, and Rule 69 of
the Commission's Rules of Practice and Procedure, 46 CFR 502.69. The
Petition seeks an exemption for non-vessel-operating common carriers
(``NVOCCs'') from the tariff filing requirement of 46 CFR Part 514 and
the bonding requirement of 46 CFR Part 583, to the extent they engage
in the transportation of used household goods and personal effects of
employees of federal civilian executive agencies in the domestic and
foreign commerce of the United States, pursuant to a solicitation
issued and administered by the General Services Administration
(``GSA'').
Notice of filing of the Petition was published in the Federal
Register, 60 FR 20494 (April 26, 1995), and interested persons were
invited to submit their views. Comments in support of the Petition were
submitted by North American Van Lines, Inc., the American Movers
Conference (``AMC''), the United States Atlantic and Gulf Ports/Eastern
Mediterranean and North African Freight Conference \1\
(``Conference''), and Mr. William P. Hobson, Manager of the Centralized
Household Goods Traffic Management Program of GSA. No comments were
filed in opposition to the Petition.
\1\ Farrell Lines, Inc. and Lykes Bros. Steamship Co.
disassociated themselves from these comments.
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The Petition
Petitioner points out that the Commission has previously exempted
NVOCCs engaged in the transportation of military used household goods
and personal effects from the NVOCC tariff filing and bonding
requirements, citing 46 CFR 550.1(a)(6), 580.1(c)(7), and 583.3(c). It
contends that the same reasons for granting that exemption warrant the
tariff and bonding exemption requested herein for used household goods
and personal effects of federal civilian employees pursuant to a GSA
solicitation.
HHGFAA advises that GSA issued an International Tender of Service
(``GSA Tender'') on January 2, 1995, soliciting bids from carriers for
the transportation of used household goods and personal effects of
federal civilian employees between points in the United States and
foreign points. This procurement will commence on October 1, 1995.
HHGFAA members intend to participate in this solicitation.
The GSA Tender sets forth the terms and conditions for
participation, including the services to be provided and how rates are
to be quoted, and requires each participant to file a performance bond
with GSA. GSA ensures that each carrier has the requisite experience,
financial responsibility, a quality control program, and the ability to
perform the service. Each participant must provide a performance bond
in the minimum amount of $75,000 or 2.5 percent of the carrier's gross
annual revenue derived from the GSA international program for the
previous year, whichever is greater, and also must maintain cargo
liability insurance in an aggregate minimum of $150,000.
GSA will establish baseline rates for certain traffic channels.
Each qualified NVOCC can then file door-to-door through rates which are
a percentage of the GSA baseline rates. The shipments will move on a
through Government Bill of Lading (``GBL'').
HHGFAA contends that filing tariffs with the FMC covering these GSA
international shipments would duplicate the rate-filing requirements of
the GSA Tender and would result in unnecessary additional costs. It
further submits that the filing of through rates as a percentage of a
GSA baseline cannot presently be accomplished under the Commission's
tariff rules or ATFI.
HHGFAA further argues that NVOCC bonds would duplicate the GSA
bonding requirement, and result in additional, unnecessary costs.
Moreover, it claims that the reasons which caused the Commission to
exempt used military household goods from tariff filing apply in this
case. HHGFAA likewise maintains that the reasons for exempting NVOCCs
engaged in the transportation of used household goods exclusively for
the Department of Defense from filing bonds warrant a similar exemption
here. In this regard, it points out that GSA's bonding requirement is
significantly greater than the Commission's.
Comments on Petition
The Conference anticipates substantial GSA program oversight, and
therefore has no objection to elimination of the bonding requirement.
However, it also argues that an exemption from tariff filing should be
conditioned on making such rates publicly available through GSA or
another organization.
AMC believes that GSA's Tender would be greatly enhanced by an FMC
exemption from tariff filing and bonding. In light of the GSA's
stringent standards, AMC submits that there is no need for a separate
bonding requirement or tariff filing requirement. AMC further notes
that military household goods have been exempt from FMC tariff filing
for several years and that this exemption has had no detrimental
effects. It believes that the instant GSA rate
[[Page 44437]]
solicitation will operate in a similar manner.
GSA's Mr. Hobson notes that the GSA Tender covers service to be
provided under Government bills of lading at through rates solicited by
GSA on a competitive basis. In order to ensure a competitive
environment, GSA has established uniform rules and charges governing
accessorial charges. In addition, GSA will establish baseline rates,
and qualified carriers will submit bids below, above, or at the
baseline rates for the traffic channels they wish to serve. The
carriers' through rates will be effective for twelve months and
available for use by all federal executive agencies. Each carrier must
certify that its rates were established independently. Mr. Hobson
claims that tariff filing with the Commission would not benefit GSA
since all bid rates will be filed with GSA and maintained in its
computer. He likewise maintains that an FMC bond is of no benefit since
the GSA bond is higher. He argues that the tariff exemption will reduce
carriers' costs by relieving them of the expense of filing rates with
the FMC, as will the bonding exemption. This, in turn, allegedly should
allow carriers to submit lower rates to GSA.
Discussion
Section 16 of the 1984 Act states in pertinent part:
The Commission, upon application or on its own motion, may by
order or rule exempt for the future any class of agreements between
persons subject to this Act or any specified activity of those
persons from any requirement of this Act if it finds that the
exemption will not substantially impair effective regulation by the
Commission, be unjustly discriminatory, result in a substantial
reduction in competition, or be detrimental to commerce.
The exemption sought here meets the standards of section 16. It
will provide relief from the tariff filing and bonding requirements for
NVOCCs who transport federal civilian household goods pursuant to a GSA
monitored program and is virtually identical to an exemption that
already exists for the transportation of military household goods.
The exemption should not substantially impair effective regulation
by the Commission. Although the rates under which this transportation
will be provided will not be filed with the Commission, they will be
available through GSA. Moreover, these rates only apply to a single
shipper, GSA, or the federal civilian agency participating in its
program. Accordingly, there should be little or no cause for concern
about potential discrimination. The competitive nature of GSA's program
will remain unchanged in that carriers seeking to participate in
certain trade lanes will have to competitively bid for the cargo.
Lastly, the exemption should be beneficial to commerce. It will remove
certain duplicative activities which serve no useful purpose, and
should reduce the overall costs for all involved in the GSA program.
Bonds and other forms of surety issued after the effective date of
this exemption will contain express language indicating that they do
not apply to civilian household goods carried under the GSA program.
If, after this date, NVOCCs desire to have this exemption apply to
their existing bonds, they can request that the bonding companies
reissue their bonds with the appropriate language included.
The Federal Maritime 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 exemption
will permit NVOCCs who are engaged in the GSA civilian household goods
program to reduce their costs by removing duplicative or unnecessary
requirements.
This final rule does not contain any collections of information as
defined by the Paperwork Reduction Act of 1980, as amended. Therefore,
OMB review is not required.
List of Subjects
46 CFR Part 514
Freight, Harbors, Maritime carriers, Reporting and recordkeeping
requirements.
46 CFR Part 583
Freight, Maritime carriers, Reporting and recordkeeping
requirements, Surety bonds.
Therefore, pursuant to 5 U.S.C. 553, section 43 of the Shipping
Act, 1916, 46 U.S.C. app. 841a, and section 17 of the Shipping Act of
1984, 46 U.S.C. app. 1716, Parts 514 and 583 of Title 46, Code of
Federal Regulations, are amended as follows:
PART 514--[AMENDED]
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
Pub. L. 101-92, 103 Stat. 601.
2. Section 514.3 is amended by adding a new paragraph (b)(5)
reading as follows:
Sec. 514.3 Exemptions and exclusions.
* * * * *
(b) * * *
(5) Used household goods--General Services Administration.
Transportation of used household goods and personal effects by non-
vessel-operating common carriers shipped by federal civilian executive
agencies under the International Household Goods Program administered
by the General Services Administration is exempt from the filing
requirements of the 1916 and 1984 Acts and the rules of this part.
* * * * *
PART 583--[AMENDED]
3. The authority citation for Part 583 continues to read as
follows:
Authority: 5 U.S.C. 553; 31 U.S.C. 9701; 46 U.S.C. App. 1702,
1707, 1709, 1710-1712, 1716, and 1721.
4. Paragraph (c) of Sec. 583.3 is revised to read as follows:
Sec. 583.3 Proof of financial responsibility, when required.
* * * * *
(c) Any person which exclusively transports used household goods
and personal effects for the account of the Department of Defense, or
for the account of the federal civilian executive agencies shipping
under the International Household Goods Program administered by the
General Services Administration, or both, is not subject to the
requirements of this part, but may be subject to other requirements,
such as alternative surety bonding, imposed by the Department of
Defense or the General Services Administration.
5. Appendix A to Part 583 is amended by revising the last sentence
in the fourth paragraph to read as follows:
Appendix A to part 583--Non-Vessel-Operating Common Carrier (NVOCC)
Band Form
* * * * *
* * * However, the bond shall not apply to shipments of used
household goods and personal effects for the account of the
Department of Defense or the account of federal civilian executive
agencies shipping under the International Household Goods Program
administered by the General Services Administration.
* * * * *
6. Appendix D to Part 583 (Form FMC-69) is amended by revising the
last sentence in the fourth paragraph to read as follows:
[[Page 44438]]
Appendix D to part 583--Non-Vessel-Operating Common Carrier (NVOCC)
Group Bank Form [FMC-69]
* * * * *
* * * However, the bond shall not apply to shipments of used
household goods and personal effects for the account of the
Department of Defense or the account of federal civilian executive
agencies shipping under the International Household Goods Program
administered by the General Services Administration.
* * * * *
By the Commission.
Joseph C. Polking,
Secretary.
[FR Doc. 95-20949 Filed 8-25-95; 8:45 am]
BILLING CODE 6730-01-M