[Federal Register Volume 61, Number 79 (Tuesday, April 23, 1996)]
[Notices]
[Pages 17895-17896]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-9873]



-----------------------------------------------------------------------

FEDERAL MARITIME COMMISSION
[Docket No. 96-08]


Longrow Shipping Limited; Possible Violations of Sections 8 and 
10(b)(1) of the Shipping Act of 1984 and Commission Rule 514.1(e)(1); 
Order of Investigation and Hearing

    This proceeding is instituted pursuant to sections 3, 8, 10, 11 and 
13 of the Shipping Act of 1984 (``1984 Act''), 46 USC app. 1702, 1707, 
1709, 1710 and 1712, and the Federal Maritime Commission's 
(``Commission'') regulations governing the tariffing of non-vessel-
operating common carriers, 46 CFR Part 514.
    Longrow Shipping Limited (``Longrow'') is a non-vessel-operating 
common carrier (``NVOCC'') incorporated in Hong Kong in 1991. Its 
receiving agent in the United States and agent for service of process 
is Pan-Pacific Express Corporation in California. Longrow currently 
maintains a tariff, effective July 17, 1994, in the Commission's 
Automated Tariff Filing and Information System. It holds an NVOCC 
surety bond, issued on May 26, 1994, in the amount of $50,000.
    It appears that between May 30 and July 16, 1994, Longrow may have 
operated as a NVOCC without an effective tariff. During this time, 
Longrow held itself out as a NVOCC providing ocean transportation from 
Hong Kong to the United States in its dealings with at least five 
shippers and one ocean common carrier. Section 8 of the 1984 Act, 46 
USC app. 1707, provides that no common carrier may provide service in 
the United States foreign trade unless the carrier first has filed a 
tariff with the Commission showing all of its rates, charges and 
practices. Section 8 also states that no new rates may become effective 
earlier than 30 days after filing at the Commission. In promulgating 
this statutory provision, Commission rule 514.9(b)(9)(i)(A), 46 CFR 
514.9(b)(9)(i)(A), explains that ``[n]ew tariffs * * * shall * * * be 
filed to become effective not earlier than 30 days after the date of 
filing.'' According to the records maintained by the Commission's 
Bureau of Tariffs, Certification and Licensing, Longrow did not have an 
effective tariff until July 17, 1994. Commission rule 514.1(e)(1), 46 
CFR 514.1(e)(1), provides that ``[o]perating without an effective 
tariff on file with the Commission * * * is unlawful.'' Therefore, it 
would appear and Longrow, by providing and holding out to the public to 
provide transportation by water of cargo for compensation and by 
contracting as a shipper in relation to a common carrier for the 
transportation of cargo of other persons, may have acted as a NVOCC 
without an effective tariff, in violation of section 8 of the 1984 Act 
and Commission rule 514.1(e)(1).
    After Longrow's tariff became effective, Longrow transported 
between July 17, 1994 and February 21, 1995, at least twenty (20) 
shipments from Hong Kong to the United States. For those shipments, 
Longrow appears to have charged rates other than those shown in 
Longrow's tariff. Pursuant to section 10(b)(1), 46 USC app. 1709(b)(1), 
the 1984 Act maintains that a common carrier is prohibited from 
charging, demanding, collecting or receiving greater, less or different 
compensation for transportation of property than the rates shown in its 
tariffs or service contracts. This prohibition is reiterated in 
Commission rule 514.1(e)(1) which states that ``charging rates not in 
conformance with such a tariff is lawful.'' Therefore, Longrow may have 
violated section 10(b)(1) of the 1984 Act and Commission rule 
514.1(e)(1) by charging rates other than those shown in its tariff 
between July 17, 1994 and February 21, 1995.
    Section 11 of the 1984 Act, 46 USC app. 1710, sets forth the 
Commission's authority to investigate any conduct that may be in 
violation of the 1984 Act. In the event violations are found, section 
13 of the 1984 Act, 46 USC app. 1712, provides that the Commission may 
assess civil penalties for violations of the 1984 Act and the 
regulations issued thereunder.
    Now therefore it is ordered, That pursuant to sections 3, 8, 10, 
11, and 13 of the 1984 Act, 46 USC app. 1702, 1707, 1709, 1710, and 
1712, an investigation is hereby instituted to determine:
    (1) Whether Longrow Shipping Limited violated section 8 of the 1984 
Act and Commission rule 514.1(e)(1), by providing common carrier 
services without an effective tariff filed at the Commission between 
May 30, 1994 and July 16, 1994;
    (2) Whether Longrow Shipping Limited violated section 10(b) of the 
1984 Act and Commission rule 514.1(e)(1), by failing to charge the 
rates shown in its tariff between July 17, 1994 and February 21, 1995;
    (3) Whether, in the event Longrow Shipping Limited violated 
sections 8 and 10(b) of the 1984 Act and Commission rule 514.1(e)(1), 
civil penalties should be assessed and, if so, the amount of such 
penalties;
    It is further ordered, That a public hearing be held in this 
proceeding and that this matter be assigned for hearing before an 
Administrative Law Judge of

[[Page 17896]]

the Commission's Office of Administrative Law Judges 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 Administrative Law Judge only upon a 
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 matters 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 Longrow Shipping Limited is designated 
Respondent in this proceeding;
    It is further ordered, That the Commission's Bureau of Enforcement 
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, D.C. 20573, in accordance with Rule 
118 of the Commission's Rules of Practice and Procedure, 46 CFR 
502.118, and shall be served on parties of record;
    It is further ordered, That in accordance with Rule 61 of the 
Commission's Rules of Practice and Procedure, the initial decision of 
the Administrative Law Judge shall be issued by April 16, 1997, and the 
final decision of the Commission shall be issued by August 14, 1997.

    By the Commission.
Joseph C. Polking,
Secretary.
[FR Doc. 96-9873 Filed 4-22-96; 8:45 am]
BILLING CODE 6730-01-M