[Federal Register Volume 61, Number 195 (Monday, October 7, 1996)]
[Notices]
[Pages 52494-52495]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-25617]


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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[STB Ex Parte No. 533]

FEDERAL MARITIME COMMISSION

[Docket No. 96-04]


Noncontiguous Domestic Trade Tariffs

AGENCIES: Surface Transportation Board, Department of Transportation; 
Federal Maritime Commission.

ACTION: Notice.

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SUMMARY: The Surface Transportation Board (STB or Board) and the 
Federal Maritime Commission (FMC or Commission) provide notice as to 
how they are implementing the provisions of the ICC Termination Act of 
1995 involving tariff filing and rate reasonableness in the 
noncontiguous domestic trade (49 U.S.C. 13701 and 13702).1

    \1\ The two agencies are handling this matter simultaneously.
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EFFECTIVE DATE: October 1, 1996.

FOR FURTHER INFORMATION CONTACT: Craig Keats, Office of the General 
Counsel, STB, (202) 927-6046 or John Cunningham, Office of the General 
Counsel, FMC, (202) 523-5740. [TDD for the hearing impaired: (202) 927-
5721.]

SUPPLEMENTARY INFORMATION: The ICC Termination Act of 1995, Pub. L. No. 
104-88, 109 Stat. 803 (ICC Termination Act), abolished the Interstate 
Commerce Commission (ICC). The ICC Termination Act transferred 
jurisdiction over ``port to port'' operations in the noncontiguous 
domestic trade, which had formerly been regulated by the FMC under the 
Intercoastal Shipping Act, 1933 (1933 Act) (46 U.S.C. 843-848), to the 
Board. See new 49 U.S.C. 13501 and 13521 (giving the Board jurisdiction 
over port to port water carrier transportation in the noncontiguous 
domestic trade); 49 U.S.C. 13702 (requiring that, with certain 
exceptions, water carriers operating in the noncontiguous domestic 
trade file tariffs with the Board); and 49 U.S.C. 13701 (providing that 
water carrier services in the noncontiguous domestic trade are subject 
to rate regulation by the Board).
    Section 2 of the ICC Termination Act states that: ``Except as 
otherwise provided in this Act, this Act shall take effect on January 
1, 1996.'' Under section 335 of the ICC Termination Act, however, 
repeal of the 1933 Act, and of portions of the Shipping Act, 1916 (1916 
Act), does not become effective until September 30, 1996. In light of 
these two statutory provisions, the two agencies, in a notice published 
at 61 FR 5835 (Feb. 14, 1996), found that there is some ambiguity as to 
whether, at least until September 30, 1996, water carriers operating in 
the noncontiguous domestic trade must file their tariffs at the Board 
or the Commission, and as to which agency would be responsible for rate 
regulation during this interim period. The Board and the Commission, 
therefore, sought public comment on how the two agencies could best 
administer their respective statutes during the transition period 
ending September 30, 1996, in a manner that would be most efficient and 
least disruptive to the industry and the shipping public.
    Comments and/or replies were filed by 13 carriers, shippers, and 
government entities. Of the comments that were responsive to the 
questions raised, some took the position that Congress, by postponing 
the date on which the relevant provisions of the 1916 Act and the 1933 
Act were repealed, must have intended a 9-month transition period. The 
majority of the commentors, however, expressed the view that, because 
section 33 of the 1916 Act (46 U.S.C. 832) foreclosed the FMC from 
regulating operations already subject to ICC (now Board) jurisdiction, 
the Board assumed exclusive jurisdiction over operations in the 
noncontiguous domestic trade as of January 1, 1996. Although one of 
those commentors (Caribbean Shippers' Association) asserted that all 
tariffs and agreements on file with the FMC must be canceled 
immediately, most concluded that the Board could, under delegation of 
authority principles, permit continued tariff filing at the FMC.
    After reviewing the comments, we determined that we would monitor 
the way in which the industry adapted to the new statute before acting. 
We found that, although some carriers preferred filing electronically 
at the FMC, while others preferred to file on paper at the Board, there 
were no complaints from the shipping public that carriers were not 
filing their port to port tariffs. For that reason, and in light of the 
statutory ambiguity, we concluded that we could best facilitate the 
transition to exclusive Board jurisdiction by permitting carriers to 
continue filing at either agency, as they saw fit, until September 30, 
1996. Therefore, since passage of the ICC Termination Act, each agency 
has recognized and respected the port to port tariffs filed at the 
other.
    Beginning on October 1, 1996, jurisdiction over port to port 
transportation will clearly rest only with the Board. Therefore, as of 
that date, all tariffs for such services must be filed with the Board, 
rather than the FMC.2 In light of the Congressional report 
language urging the Board ``to continue the FMC's practice of allowing 
carriers to file their tariffs electronically,'' 3 the two 
agencies have worked together to permit the Board to receive tariffs 
filed through the FMC's Automated Tariff Filing and Information System 
(ATFI). Accordingly, carriers that have filed their port to port 
tariffs electronically with the FMC may continue to do so. 
Additionally, the Board will allow carriers to use the ATFI system to 
file their joint intermodal rate tariffs for noncontiguous domestic 
transportation electronically. Electronic filing, however, will not be 
mandatory; carriers may file their port to port and intermodal tariffs 
in printed form at the Board.4
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    \2\ Similarly, all agreements filed with the FMC pursuant to 
section 15 of the 1916 Act will be subject to the antitrust laws as 
of that date.
    \3\ H.R. Rep. No. 422, 104th Cong., 1st Sess. 206 (1995).
    \4\ The Board is authorizing these filings by order issued in 
Electronic Tariff Filing of Noncontiguous Domestic Trade Tariffs, 
STB Special Tariff Authority No. 4, which is being served 
concurrently with this notice.
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Regulatory Flexibility Analysis

    The Board and the Commission certify that this action will not have 
a significant impact on a substantial number of small entities. No new 
regulatory burdens are imposed, directly or indirectly, on such 
entities. The purpose of the decision is simply to facilitate the 
transition to a new regulatory regime.

Environmental and Energy Analysis

    This action will not significantly affect either the quality of the 
human environment or conservation of energy resources.


[[Page 52495]]


    Decided: September 19, 1996.

    By the Board, Chairman Morgan, Vice Chairman Simmons, and 
Commissioner Owen.
Vernon A. Williams,
Secretary, Surface Transportation Board.
    By the Commission, Chairman Creel, Commissioners Hsu, Scroggins, 
and Won.
Joseph C. Polking,
Secretary, Federal Maritime Commission.
[FR Doc. 96-25617 Filed 10-4-96; 8:45 am]
BILLING CODE 4915-00-P; 6730-01-P