[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]
[[Page 60345]]
=======================================================================
-----------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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