[Federal Register Volume 63, Number 226 (Tuesday, November 24, 1998)]
[Notices]
[Pages 64964-64965]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-31281]


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FEDERAL MARITIME COMMISSION

[Docket No. 98-20]


Refrigerated Container Carriers Pty. Limited; Possible Violations 
of Section 10(a)(1) of the Shipping Act of 1984

Order of Investigation and Hearing

    Refrigerated Container Carriers Pty. Limited (``RCC'') is a 
tariffed and bonded non-vessel-operating common carrier (``NVOCC'') 
located at Ste. 77, 89-97 Jones Street, Ultimo, NSW 2007, Sydney, 
Australia. Since 1991, RCC has filed a NVOCC tariff with the Federal 
Maritime Commission (``Commission''). RCC's current tariff in the 
Commission's Automated Tariff Filing and Information System (``ATFI'') 
has been effective since May 27, 1994. (ATFI Tariff No. 010847-002) RCC 
also has a NVOCC bond of $50,000 issued by Washington International 
Insurance Company (Bond No. 894-0093) which has been effective since 
April 15, 1991. RCC's current resident agent for service of process in 
the United States is The Roanoke Agency, Inc.\1\
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    \1\ Washington International Insurance Company with its apparent 
affiliate, The Roanoke Agency, Inc., is located at Suite 500, 300 
Park Blvd., Itasca, IL 60143-2625.
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    Between February 14, 1994 and September 11, 1996, RCC is believed 
to have entered into and participated in an arrangement which allowed 
RCC to obtain ocean transportation for property at less than the rates 
or charges that would be otherwise applicable for shipments between 
Australia/New Zealand and the United States. On February 14, 1994, RCC 
entered into an agreement with a common carrier, Ocean Management, Inc. 
(``OMI''), in which RCC obtained certain ocean transportation rates and 
other special transportation considerations from OMI for the 
transportation of RCC's cargo between the United States and Australia. 
The terms of this arrangement were not filed with the Commission. The 
agreement between OMI and RCC appears to have continued until the 
arrangement apparently was terminated by OMI on September 11, 1996. 
This arrangement appears to have given the NVOCC, RCC, ocean 
transportation rates which were less than the applicable tariff rates 
and may have provided RCC with various untariffed services and benefits 
for more than two years and involving hundreds of shipments.
    Section 10(a)(1) of the Shipping Act of 1984 (``1984 Act''), 46 USC 
app. 1709(a)(1), prohibits any person from knowingly and willfully, 
directly or indirectly, by means of false billing, false 
classification, false weighing, false report of weight, false 
measurement, or by any other unjust or unfair device or means, 
obtaining or attempting to obtain ocean transportation for property at 
less than the rates or charges that would otherwise be applicable. RCC 
may have violated section 10(a)(1) of the 1984 Act by entering into and 
utilizing an off-tariff arrangement to obtain ocean transportation for 
RCC's property at less than the rates or charges that would otherwise 
be applicable.
    Under section 13 of the 1984 Act, 46 USC app. 1712, a person is 
subject to a civil penalty of not more than $25,000 for each knowing 
and willful violation of the 1984 Act, and not more than $5,000 for 
each other type of violation.\2\

[[Page 64965]]

In addition, section 23 of the 1984 Act, 46 USC app. 1721, provides 
that a common carrier's tariff may be suspended for violations of 
section 10(a)(1) of the 1984 Act.
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    \2\ The $25,000 and $5,000 penalties, originally established in 
the 1984 Act, have been increased to $27,500 and $5,500, 
respectively, effective November 7, 1996. See Inflation Adjustment 
of Civil Monetary Penalties, 27 SRR 809 (1996), and 46 CFR Part 506. 
However, in accordance with 46 CFR 506.5, these increases apply only 
to violations which occur after November 6, 1996. Since the alleged 
violations appear to have occurred prior to November 6, 1996, these 
increases do not apply.
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    Now therefore, it is ordered, That pursuant to sections 10, 11, 13, 
14 and 23 of the 1984 Act, 46 USC app. 1709, 1710, 1712, 1713 and 1721, 
an investigation is instituted to determine:
    (1) whether Refrigerated Container Carriers Pty. Limited violated 
section 10(a)(1) of the 1984 Act between February 14, 1994 and 
September 11, 1996, by knowingly and willfully, directly or indirectly 
obtaining or attempting to obtain ocean transportation at less than the 
rates and charges otherwise applicable by means of an agreement whose 
terms were not filed in the applicable tariff(s) or essential terms 
publication(s) with the Commission;
    (2) whether, in the event violations of section 10(a)(1) of the 
1984 Act are found, civil penalties should be assessed against 
Refrigerated Container Carriers Pty. Limited, and if so, the amount of 
penalties to be assessed;
    (3) whether, in the event violations of section 10(a)(1) of the 
1984 Act are found, the tariff of Refrigerated Container Carriers Pty. 
Limited should be suspended or canceled; and
    (4) whether, in the event violations are found, an appropriate 
cease and desist order should be issued against Refrigerated Container 
Carriers Pty. Limited.
    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 at a date and place to be hereafter determined by the 
Administrative Law Judge 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 matters 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 Refrigerated Container Carriers Pty. 
Limited is designated as 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, 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 Procedure, the initial decision of 
the Administrative Law Judge shall be issued by November 18, 1999 and 
the final decision of the Commission shall be issued by March 17, 2000.

    By the Commission.
Joseph C. Polking,
Secretary.
[FR Doc. 98-31281 Filed 11-23-98; 8:45 am]
BILLING CODE 6730-01-M