[Federal Register Volume 63, Number 81 (Tuesday, April 28, 1998)]
[Rules and Regulations]
[Pages 23220-23221]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-11269]


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PANAMA CANAL COMMISSION

RIN 3207-AA45

35 CFR Parts 133 and 135


Tolls for Use of Canal; Rules for Measurement of Vessels

AGENCY: Panama Canal Commission.

ACTION: Final rule.

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SUMMARY: The Panama Canal Commission (Commission) is establishing new 
toll rates for certain small vessels using the waterway. These new 
tolls are based on the overall length of the vessels.
    The Commission considers this increase necessary to recover a 
portion of the resources expended in the transit of small vessels and 
to provide a more efficient use of Canal capacity and resources. This 
toll increase complies with the statutory requirement which requires 
the Commission to produce revenues sufficient to cover all costs of 
maintenance and operation of the Panama Canal, including capital for 
plant replacement, expansion and improvements.

DATES: Effective June 1, 1998.

FOR FURTHER INFORMATION CONTACT: John A. Mills, Telephone: (202) 634-
6441, Facsimile: (202) 634-6439, E-mail: [email protected]; or 
Department of Financial Management, Telephone: 011 (507) 272-3137, 
Facsimile: 011 (507) 272-3433, E-mail: [email protected].

SUPPLEMENTARY INFORMATION: These new tolls are based on the overall 
length of the vessel as follows: 1) up to 15.24 meters (50 feet), $500, 
(approximately 194 PC/UMS Net Tons at the current laden rate); 2) more 
than 15.24 meters (50 feet) up to 24.38 meters (80 feet), $750, 
(approximately 291 PC/UMS Net Tons at the current laden rate); 3) more 
than 24.38 meters (80 feet) up to 30.48 meters (100 feet), $1,000, 
(approximately 389 PC/UMS Net Tons at the current laden rate); and, 4) 
more than 30.48 meters (100 feet), $1,500, (approximately 583 PC/UMS 
Net Tons at the current laden rate).
    In November, 1997, President Clinton signed into law an amendment 
to Public Law 96-70, section 1602 (22 U.S.C. 3792) which expanded the 
authority of the Commission to fix tolls for small vessels seeking to 
transit the Panama Canal. On January 5, 1998, a notice of proposed 
rulemaking was published in the Federal Register (63 FR 186). The 
Commission proposed to set a fixed, minimum toll for certain small 
vessels transiting the Panama Canal. The proposal required all vessels 
with PC/UMS Net Tonnages (laden or ballast) or displacement tonnage 
which would result in a toll of less than $1,500 to pay a fixed, 
minimum toll of $1,500. This change was deemed necessary because small 
vessels impose administrative costs and logistical problems which are 
not offset by the tolls they currently pay.
    To ensure maximum notification and participation in the rulemaking 
process, the Commission issued several official announcements of its 
proposal through press releases, the local media, and also published 
the proposal at the Commission's web site on the Internet. A written 
analysis of the proposal explaining the proposed toll change was made 
available to interested parties. This document stated the proposed 
revision to toll charges would produce revenues sufficient to offset 
some of the administrative and operating costs actually incurred by the 
Commission in transiting this type of vessel.
    The Commission solicited written comments from the public and 
received over 92 responses from several sectors of the local and 
international maritime community. In addition, a hearing was held in 
the Republic of Panama on February 13, 1998, at the Miraflores Visitors 
Pavilion Theater. A complete record of that proceeding, including the 
data and comments submitted by interested parties, is contained in the 
Panel Report to the Board of Directors (Board) of the Commission, and 
is available to the public. The views and arguments presented by 
interested parties, as well as other relevant information, were 
considered by the Board during its quarterly meeting on March 30, 1998. 
Based upon this review, and with the purpose of recovering some of the 
resources expended in the transit of small vessels, the Board approved 
the implementation of a modified, four-tier minimum toll based on the 
overall length of small vessels transiting the waterway. The 
implementation date of the proposal was also delayed to accommodate, to 
some extent, those Canal customers concerned with the impact a minimum 
toll would have on them.
    The Panel Report more fully addresses the most significant comments 
submitted by interested parties, either in writing or in testimony at 
the public hearing. Any interested party, upon request and payment of 
duplicating costs, may obtain a copy of the report by contacting the 
Commission.
    Section 1602(b) of the Panama Canal Act of 1979, as amended, (22 
U.S.C. 3792(b)), requires Canal tolls be prescribed at rates calculated 
to produce revenues which cover as nearly as practicable all costs of 
maintaining and operating the Panama Canal, as well as produce capital 
for plant replacement, expansion and improvements. With the 
implementation of this rule, the Commission will better utilize the 
operational, administrative, and financial resources involved in the 
transit of small vessels.
    The Commission is exempt from Executive Order 12866 and its 
provisions do not apply to this rule. Even if the Order were 
applicable, the rule would not have a significant economic impact on a 
substantial number of small entities under the Regulatory Flexibility 
Act. The implementation of the rule will have no adverse effect on 
competition, employment, investment, productivity, innovation, or on 
the ability of United States-based enterprises to compete with foreign-
based enterprises in domestic or export markets.
    Finally, the Secretary of the Panama Canal Commission certifies 
these changes meet the applicable standards set out in sections 2(a) 
and 2(b)(2) of Executive Order 12778.

List of Subjects

35 CFR Part 133

    Navigation, Panama Canal, Vessels.

35 CFR Part 135

    Measurement, Panama Canal, Vessels.

    For the reasons stated in the preamble, the Panama Canal Commission 
is amending 35 CFR parts 133 and 135 as follows:

[[Page 23221]]

PART 133--TOLLS FOR USE OF CANAL

    1. The authority citation for part 133 continues to read as 
follows:

    Authority: 22 U.S.C. 3791-3792, 3794.

    2. Section 133.1 is revised to read as follows:


Sec. 133.1  Rates of Toll.

    The following rates of toll shall be paid by vessels using the 
Panama Canal:
    (a) On merchant vessels, yachts, army and navy transports, 
colliers, hospital ships, and supply ships, when carrying passengers or 
cargo, $2.57 per PC/UMS Net Ton--that is, the Net Tonnage determined in 
accordance with part 135 of this chapter.
    (b) On vessels in ballast without passengers or cargo, $2.04 per 
PC/UMS Net Ton.
    (c) On other floating craft including warships, other than 
transports, colliers, hospital ships and supply ships, $1.43 per ton of 
displacement.
    (d) On small vessels which, under paragraphs (a) through (c), would 
be assessed a toll of less than $1,500, a minimum toll based upon their 
length overall in accordance with the following table:


Up to 15.24 meters (50 feet)...........  $500, i.e., approximately 194  
                                          PC/UMS Net Tons at the current
                                          laden rate.                   
More than 15.24 meters (50 feet) up to   $750, i.e., approximately 291  
 24.38 meters (80 feet).                  PC/UMS Net Tons at the current
                                          laden rate.                   
More than 24.38 meters (80 feet) up to   $1,000, i.e., approximately 389
 30.48 meters (100 feet).                 PC/UMS Net Tons at the current
                                          laden rate.                   
More than 30.48 meters (100 feet)......  $1,500, i.e., approximately 583
                                          PC/UMS Net Tons at the current
                                          laden rate.                   
                                                                        

    (e) Vessels with structural features which render the application 
of paragraph (d) of this section unreasonable or impractical, as 
determined by the Panama Canal Commission, shall have a PC/UMS Net 
Tonnage or displacement tonnage determined and shall have the toll 
assessed in accordance with paragraphs (a), (b) or (c) of this section, 
provided that tonnage determination results in tonnage greater than the 
equivalent of 583 PC/UMS Net Tons.

PART 135--RULES FOR MEASUREMENT OF VESSELS

    1. The authority citation for part 135 continues to read as 
follows:

    Authority: 22 U.S.C. 3791-3792, 3794.

    2. Section 135.1 is amended by adding at the end thereof two new 
sentences to read as follows:


Sec. 135.1  Scope.

    * * * Vessels measuring not more than 30.48 meters (100 feet) in 
length overall are not required to be measured. If the Panama Canal 
Commission determines the toll provided in Sec. 133.1 (d) will apply, 
the vessel need not be assigned a PC/UMS Net Tonnage.

    Dated: April 23, 1998.
John A. Mills,
Secretary.
[FR Doc. 98-11269 Filed 4-27-98; 8:45 am]
BILLING CODE 3640-04-P