[Federal Register Volume 63, Number 216 (Monday, November 9, 1998)]
[Notices]
[Pages 60345-60346]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-29739]



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FEDERAL MARITIME COMMISSION

[Docket No. 98-19]


Saeid B. Maralan (aka Sam Bustani), World Line Shipping, Inc. d/
b/a World Line Shipping and World Line Shipping International Shipping 
Co. and Atlas World Line, Inc. d/b/a Atlas World Line and Atlas World 
Line International Shipping Co.--Possible Violations of Sections 
8(a)(1), 10(b)(1), 19(a) and 23(a) of the Shipping Act of 1984; Order 
of Investigation and Hearing

    World Line Shipping, Inc., also doing business as World Line 
Shipping and World Line Shipping International Shipping Co., is a 
tariffed and bonded non-vessel-operating common carrier (``NVOCC''), 
and holds itself out as an NVOCC pursuant to its ATFI tariff FMC No. 
015099-001, effective November 20, 1997. World Line Shipping, Inc. 
currently maintains an NVOCC bond, No. 8941513, in the amount of 
$50,000 with Washington International Insurance Company. World Line 
Shipping, Inc. was incorporated in Delaware on September 12, 1997 and 
in California on April 29, 1998. Saeid B. Maralan (aka Sam Bustani) 
(``Bustani'') is the President and sole stock owner of World Line 
Shipping, Inc. Although Bustani uses World Line Shipping and World Line 
Shipping International Shipping Co. as d/b/a's, the tariff for World 
Line Shipping, Inc. does not list any of these company names.
    Atlas World Line, Inc., also doing business as Atlas World Line and 
Atlas World Line International Shipping Co., is a non-tariffed and non-
bonded NVOCC located at 14415 S. Main Street, Gardena, CA 90248. Atlas 
World Line, Inc. was incorporated in Delaware on August 29, 1996 and in 
California on January 6, 1997. It appears that the Delaware corporation 
is no longer an active entity, but the California corporation remains 
active. Bustani is the President and sole stock holder of Atlas World 
Line, Inc.
    It appears that from at least March 30, 1997 until April 21, 1998, 
Bustani has provided ocean transportation services to the public for 
shipments from the United States to foreign countries, consisting 
mostly of household goods, personal effects and automobiles. Bustani, 
using numerous company names, appears to dispatch shipments via ocean 
common carriers, arrange for the transportation of shipments on behalf 
of shippers, and prepare documentation consisting of bills of lading 
and export documents. Shippers appear to look to Bustani and his 
companies for the delivery of shipments. Therefore, it appears Bustani 
and his companies hold themselves out to perform transportation to the 
public and accept responsibility for the transportation of shipments. 
Shipments are contracted with ocean common carriers under the names of 
actual shippers as well as under the names of Atlas World Line, Inc., 
Atlas World Line, Atlas World Line International Shipping Company, 
World Line Shipping, Inc., World Line Shipping and World Line Shipping 
International Shipping Company.
    Section 8(a) of the Shipping Act of 1984 (``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. app. 
1702(6), in pertinent part, defines a common carrier as a person 
holding 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 Saeid Maralan, or his 
alias Sam Bustani, Atlas World Line, Inc., Atlas World Line or Atlas 
World Line International Shipping Company. Therefore, it appears that 
Bustani, 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 10(b)(1) of the 1984 Act, 46 U.S.C. app. 1709(b)(1), 
prohibits a common carrier from charging, collecting or receiving 
greater, less or different compensation for the transportation of 
property that the rates set forth in its tariff. It appears that World 
Line Shipping, Inc. failed to file a commodity rate for numerous 
shipments, and in other instances did not charge the rates set forth in 
its tariff.
    Section 19(a) of the 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 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 Saeid Maralan 
or his alias name, Sam Bustani. Therefore, it would appear that 
Bustani, 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 13 of the 1984 Act, 46 U.S.C. app. 1712, provides that a 
person is subject to a civil penalty of not more than $25,000 for each 
violation knowingly and willfully committed, and not more than $5,000 
for other violations.\1\ Section 13 further provides that a common 
carrier's tariff may be suspended for violations of section 10(b)(1) 
for a period not to exceed one year.
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    \1\ The maximum penalties are raised by 10 percent for 
violations occurring after November 7, 1996. See Inflation 
Adjustment of Civil Monetary Penalties, 27 S.R.R. 809 (1996).
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    Now therefore, it is ordered, That pursuant to sections 8, 10, 11, 
13, 19 and 23 of the 1984 Act, 46 U.S.C. app. 1707, 1709, 1710, 1718 
and 1721, an investigation is instituted to determine whether Saeid B. 
Maralan (aka Sam Bustani), World Line Shipping, Inc. d/b/a/ World Line 
Shipping and World

[[Page 60346]]

Line Shipping International Shipping Co. and Atlas World Line, Inc. d/
b/a Atlas World Line and Atlas World Line International Shipping Co.:
    (1) Violated sections 8(a) and 23(a) of the 1984 Act by acting as a 
NVOCC without a tariff and bond on file with the Commission;
    (2) Violated section 10(b)(1) of the 1984 Act by charging, 
demanding, collecting or receiving less or different compensation for 
the transportation of property than the rates and charges showing in 
World Line Shipping, Inc.'s NVOCC tariff;
    (3) Violated section 19(a) of the 1984 Act by acting as an ocean 
freight forwarder without a license issued by the Commission;
    (4) Whether in the event violations of sections 8(a), 10(b)(1), 
19(a) or 23(a) of the 1984 Act are found, civil penalties should be 
assessed against respondents, and if so, the amount of penalties to be 
assessed;
    (5) Whether, in the event violations of section 10(b)(1) are found, 
the tariff of World Line Shipping, Inc. should be suspended; and
    (6) 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 hearing before an 
Administrative Law Judge 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 in the discretion of the Presiding 
Administrative Law Judge only after consideration has been given by the 
parties and the Presiding Administrative Law Judge to the use of 
alternative forms of dispute resolution, and 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 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 Saeid B. Maralan (aka Sam Bustani), 
World Line Shipping, Inc. d/b/a World Line Shipping and World Line 
Shipping International Shipping Co. and Atlas World Line, Inc. d/b/a 
Atlas World Line and Atlas World Line International Shipping Co. are 
designated as Respondents 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, DC 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; and
    It is further ordered, that in accordance with Rule 61 of the 
Commission's rules of practice and procedures, the initial decision of 
the Administrative Law Judge shall be issued by November 2, 1999 and 
the final decision of the Commission shall be issued by March 2, 2000.

    By the Commission.
Joseph C. Polking,
Secretary.
[FR Doc. 98-29739 Filed 11-6-98; 8:45 am]
BILLING CODE 6730-01-M