[Federal Register Volume 62, Number 73 (Wednesday, April 16, 1997)]
[Rules and Regulations]
[Pages 18532-18533]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-9811]


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FEDERAL MARITIME COMMISSION

46 CFR Part 586

[Docket No. 96-20]


Port Restrictions and Requirements in the United States/Japan 
Trade

AGENCY: Federal Maritime Commission.

ACTION: Amendment to final rule.

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SUMMARY: The Federal Maritime Commission is amending the final rule in 
this proceeding to provide that fees shall not be assessed on vessels 
for which fees have been assessed within the preceding seven days, or 
in the case of vessels calling at ports in Hawaii, within the preceding 
forty days.

DATES: Effective Date: April 14, 1997.

ADDRESSES: Requests for publicly available information or additional 
filings should be addressed 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: Thomas Panebianco, General Counsel, 
Federal Maritime Commission, 800 North Capitol Street, N.W., 
Washington, D.C. 20573, (202) 523-5740.

SUPPLEMENTARY INFORMATION: On March 4, 1997, the Commission published a 
final rule in this proceeding assessing per-voyage fees, effective 
April 14, on Japanese liner carriers in response to restrictive and 
unfavorable requirements for the use of Japanese ports (62 FR 9696). On 
April 4, 1997, Nippon Yusen Kaisha (NYK), one of the three Japanese 
carriers subject to the imposition of fees, submitted a ``Request for 
Clarification'' of the final rule to the Commission's General Counsel. 
In its request, NYK urges that the Commission make certain 
modifications to the final rule with regard to the assessment of fees. 
The request will therefore be treated as a petition for amendment of 
the Final Rule.
    NYK's request centers on the application of the final rule as 
written to two particular NYK trans-Pacific service strings. The final 
rule, 46 CFR 586.2, states:

    (c) Assessment of fees. A fee of one hundred thousand dollars is 
assessed each time a designated vessel is entered in any port of the 
United States from any foreign port or place.

NYK operates a weekly service with the rotation: Japan/Taiwan/Hong 
Kong/Los Angeles/Portland/Vancouver/Seattle/Japan. Under the final 
rule, vessels in this string would be subject to a $100,000 fee first 
when they enter Los Angeles from Hong Kong, then another fee when they 
arrive at Seattle from Vancouver. NYK suggests that this sort of 
``double assessment'' was not envisaged by the Commission when it 
promulgated the rule. It also states that such double assessments could 
lead NYK to drop a U.S. port from its rotation.
    NYK also offers bi-monthly sailings to Honolulu in the following 
pattern: Far East/Honolulu/Central America/Honolulu/Far East. Under the 
rule, NYK would be subject to fees on both the eastbound and the 
westbound legs of this voyage. NYK indicates that this could cause it 
to drop one Hawaiian port call from its rotation. NYK points out that 
the Commission, in levying the fee, adopted an approach designed to 
``eliminate the concern that the fee could lead to lines dropping or 
consolidating port calls in the U.S.'' NYK suggests an amendment to the 
rule that would be in keeping with this intent, addressing the issues 
raised by the two above-described service strings. NYK proposed adding 
the following to paragraph (c):

provided that no fee is assessed against a designated vessel (1) if 
that vessel has previously been assessed a fee under this rule 
within the past ten days, or (2) for a vessel calling in the state 
of Hawaii, has previously been assessed a fee under this rule within 
the past forty-five days.

    The proposed amendment is in keeping with the Commission's 
sensitivity to avoiding unnecessary adverse effects to U.S. ports and 
shippers. The proposed amendment would prevent NYK from being subjected 
to two fee assessments for one set of west coast port calls based on 
its unique service structure, heading off the

[[Page 18533]]

possibility of an unintended impact on service for the U.S. Pacific 
northwest. It would also take into account Hawaii's unique position and 
reliance on maritime commerce, ensuring that ports and commerce in that 
state are not disadvantaged by the rule. The proposed exceptions are 
narrowly crafted, and do not undermine the larger objectives of the 
rule, that is, addressing the restrictive and unfavorable conditions 
facing U.S. commerce and U.S. companies in Japan's ports which result 
from the laws and policies of the Government of Japan. It does not 
appear that service strings or vessel calls other than those listed 
above would be affected by this proposed language.
    We would also note that, except with regard to the two NYK services 
noted above, further analysis by the Commission since the issuance of 
the final rule supports and reconfirms our earlier finding that 
carriers are unlikely to drop port calls or divert services in response 
to the Commission's fee. Moreover, it has been widely reported in the 
press that the Japanese carriers have informed their customers that 
their current services will continue without interruption. Therefore, 
we would reaffirm that the likelihood of any undue harm to U.S. ports 
and shippers from the Commission's action appears exceptionally low.

List of Subjects in 46 CFR Part 586

    Cargo vessels, Exports, Foreign relations, Imports, Maritime 
carriers, Penalties, Rates and fares, Tariffs.

    Therefore, pursuant to section 19(1)(b) of the Merchant Marine Act, 
1920, 46 U.S.C. app. 876(1)(b), as amended, Reorganization Plan No. 7 
of 1961, 75 Stat. 840, and 46 CFR part 585, part 586 of Title 46 of the 
Code of Federal Regulations is amended as follows:

PART 586--[AMENDED]

    1. The authority citation for Part 586 continues to read as 
follows:

    Authority: 46 U.S.C. app. 876(1)(b); 46 U.S.C. app. 876(5) 
through (12); 46 CFR Part 585; Reorganization Plan No. 7 of 1961, 26 
FR 7315 (August 12, 1961).

    2. In Sec. 586.2, paragraph (c) is revised to read as follows:


Sec. 586.2  Conditions unfavorable to shipping in the United States/
Japan trade.

* * * * *
    (c) Assessment of fees. A fee of one hundred thousand dollars is 
assessed each time a designated vessel is entered in any port of the 
United States from any foreign port or place; provided, however, that 
no fee is assessed against a designated vessel if:
    (1) That vessel has previously been assessed a fee under this 
section within the past seven days, or
    (2) For a vessel calling in the state of Hawaii, that vessel has 
previously been assessed a fee under this section within the past forty 
days.
* * * * *
    By the Commission.
Joseph C. Polking,
Secretary.
[FR Doc. 97-9811 Filed 4-14-97; 1:15 pm]
BILLING CODE 6730-01-W