[Federal Register Volume 62, Number 9 (Tuesday, January 14, 1997)]
[Notices]
[Pages 1887-1889]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-829]


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FEDERAL MARITIME COMMISSION
[Docket No. 97-01]


Alex Parsinia D/B/A Pacific International Shipping and Cargo 
Express; Order of Investigation

    Alex Parsinia (``Parsinia'') is an individual who appears to be 
doing business under the names Pacific International Shipping (``PIS'') 
and Cargo Express (``CE''). It appears that from at least September 17, 
1995 to the present, Parsinia has provided ocean transportation 
services to the public for

[[Page 1888]]

shipments from the United States to foreign countries. PIS and CE 
appear to dispatch shipments via ocean common carriers, arrange for the 
transportation of shipments on behalf of shippers, prepare 
documentation consisting of bills of lading and export documents. 
Shippers appear to look to PIS and CE for the delivery of shipments,\1\ 
and PIS and CE appear to hold themselves out to perform transportation 
to the public and accept responsibility for the transportation of 
shipments. The shipments consist mostly of personal effects or 
household goods. Shipments are contracted with ocean common carriers 
under the names of actual shippers as well as under the names PIS and 
CE.
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    \1\ The Commission's Office of Informal Inquiries and Complaints 
has received eleven complaints from shippers in regard to 
difficulties the shippers have encountered in obtaining the delivery 
of shipments turned over to Parsinia.
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    Section 19(a) of the Shipping Act of 1984 (``1984 Act''), 46 U.S.C. 
app. 1718(a), provides that no person may act as an ocean freight 
forwarder unless that person has obtained a license from the Federal 
Maritime Commission. Section 3(19) of the 1984 Act, 46 U.S.C. app. 
1702(19), defines an ocean freight forwarder as a person in the United 
States that dispatches shipments from the United States to a foreign 
country via common carriers, books or otherwise arranges space for such 
shipments on behalf of shippers, and processes the documentation or 
performs related activities incident to those shipments. In order to 
obtain an ocean freight forwarder license, a forwarder must furnish to 
the Commission a bond to insure the financial responsibility of the 
forwarder, and the Commission must determine that the forwarder is 
qualified by experience and character to render forwarding services. 
According to a review of records maintained by the Commission's Bureau 
of Tariffs, Certification and Licensing, no ocean freight forwarder 
license has been issued in the name of Alex Parsinia. Therefore, it 
would appear that Parsinia, by dispatching shipments, by booking or 
otherwise arranging space for the shipments, and by processing 
documentation incident to ocean shipments made on behalf of others from 
the United States, has acted as an ocean freight forwarder without a 
license issued by the Commission in violation of section 19(a) of the 
1984 Act.
    Section 8(a) of the 1984 Act, 46 U.S.C. app. 1707(a), provides that 
each common carrier must file a tariff with the Commission showing all 
of its rates, charges, classifications, rules, and practices. Section 
3(6) of the 1984 Act, 46 U.S.C. 1702(6), in pertinent part, defines a 
common carrier as a person holding hold out to the public to provide 
transportation by water between the United States and a foreign 
country, that assumes responsibility for performing the transportation, 
and utilizes a vessel operating on the high seas for providing the 
transportation. Section 3(17) of the 1984 Act, 46 U.S.C. 1702(17), 
defines a non-vessel-operating common carrier (``NVOCC'') as a common 
carrier that does not operate the vessels used in providing the ocean 
transportation and acts as the shipper in relation with the ocean 
common carrier. Section 23(a) of the 1984 Act, 46 U.S.C. app. 1721(a), 
further provides that each NVOCC must furnish to the Commission a bond, 
proof of insurance or other surety, inter alia, to insure the financial 
responsibility of the carrier to pay any judgment for damages arising 
from its transportation-related activities. According to the records 
maintained by the Commission's Bureau of Tariffs, Certification and 
Licensing, no tariff or bond has been filed with the Commission in the 
name of Alex Parsinia, PIS or CE. Therefore, it would appear that 
Parsinia, by providing ocean transportation of cargo to the public for 
shipments between the United States and foreign countries and by 
contracting as a shipper for the carriage of the cargo, has acted as a 
NVOCC without a tariff or bond on file with the Commission, in 
violation of sections 8(a) and 23(a) of the 1984 Act.
    Section 11(c) of the 1984 Act, 46 U.S.C. app. 1710(c), sets forth 
the Commission's authority to investigate violations of the 1984 Act. 
In the event violations are found, section 13(a) of the 1984 Act, 46 
U.S.C. app. 1712(a), provides that the Commission may assess civil 
penalties. Section 14(a) of the 1984 Act, 46 U.S.C. app. 1713(a), 
empowers the Commission to issue orders relating to violations of the 
1984 Act.
    Now therefore it is ordered, That pursuant to sections 8(a), 11(c), 
13(a), 14(a), 19(a) and 23(a) of the 1984 Act, an investigation is 
hereby instituted to determine:
    1. Whether Parsinia violated section 19(a) of the 1984 Act by 
acting as an ocean freight forwarder without a license issued by the 
Commission;
    2. Whether Parsinia violated sections 8(a) and 23(a) of the 1984 
Act by acting as a NVOCC without tariff and bond on file with the 
Commission;
    3. Whether, in the event Parsinia violated the 1984 Act, civil 
penalties should be assessed against Parsinia and, if so, the amount of 
such penalties; and
    4. Whether, in the event violations are found, an appropriate cease 
and desist order should be issued.
    It is further ordered, That a public hearing be held in this 
proceeding and that this matter be assigned for public hearing before 
an Administrative Law Judge (``Presiding Officer'') of 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 at 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 Alex Parsinia d/b/a Pacific 
International Shipping and Cargo Express 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, 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 
January 8, 1998,

[[Page 1889]]

and the final decision of the Commission shall be issued by May 8, 
1998.

    By the Commission.
Joseph C. Polking,
Secretary.
[FR Doc. 97-829 Filed 1-13-97; 8:45 am]
BILLING CODE 6730-01-M