[Federal Register Volume 63, Number 246 (Wednesday, December 23, 1998)]
[Proposed Rules]
[Pages 71062-71076]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-33894]


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FEDERAL MARITIME COMMISSION

46 CFR Parts 514 and 530

[Docket No. 98-30]


Service Contracts Subject to the Shipping Act of 1984

AGENCY: Federal Maritime Commission.

ACTION: Notice of Proposed Rulemaking.

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SUMMARY: The Federal Maritime Commission (``Commission'' or ``FMC'') 
proposes to revise its regulations governing service contracts between 
shippers and ocean common carriers to reflect changes made to the 
Shipping Act of 1984 (``1984 Act''), the Ocean Shipping Reform Act of 
1998 and the Coast Guard Authorization Act of 1998). Specifically, the 
Commission proposes to revise its regulations implementing section 8(c) 
of the 1984 Act and create a new regulation which would govern only 
service contract filings. The Commission is proposing to establish new 
rules for service contract filing and essential terms publication, 
revise its regulations to include the newly permitted agreement and 
multiple shipper-party service contracts, and make other conforming 
changes. The Commission is also proposing an electronic filing system 
for service contracts which is intended to reduce the filing burden on 
parties and accommodate the efficient processing and review of what is 
predicted to be a large number of filed contracts.

DATES: Submit comments on or before January 22, 1999.

ADDRESSES: Address all comments concerning this proposed rule to: 
Joseph C. Polking, Secretary, Federal Maritime Commission, 800 North 
Capitol Street, NW., Room 1046, Washington, DC 20573-0001.

FOR FURTHER INFORMATION CONTACT:
Thomas Panebianco, General Counsel, Federal Maritime Commission, 800 
North Capitol Street, NW., Washington, DC 20573-0001, (202) 523-5740
Bryant L. VanBrakle, Director, Bureau of Tariffs, Certification and 
Licensing, Federal Maritime Commission, 800 North Capitol Street, NW., 
Washington, DC 20573-0001, (202) 523-5796

SUPPLEMENTARY INFORMATION: The Ocean Shipping Reform Act of 1998, Pub. 
L. 105-258, 112 Stat. 1902 (``OSRA'') was signed into law on October 
14, 1998. OSRA makes several changes to the existing system by which 
the Federal Maritime Commission (``FMC'' or ``Commission'') regulates 
ocean shipping in the foreign commerce of the

[[Page 71063]]

United States. OSRA makes significant changes to the provisions 
governing service contracts under the 1984 Act. On November 13, 1998, 
the Coast Guard Authorization Act of 1998, Pub. L. 105-383, 112 Stat. 
3411, was signed by the President. That Act also amends the 1984 Act by 
redefining the term ``common carrier.'' Accordingly, the Commission now 
proposes to update, redesignate and clarify its rules to implement the 
changes mandated by these laws. This supplemental information presents 
these changes in detail.
    The proposal seeks to carry over existing regulations (particularly 
46 CFR 514.7 and 514.17) where they comport with the revisions to the 
1984 Act made by OSRA and where they represent a sound approach. The 
purpose, scope, applicability and definition sections, found in 
proposed regulations Secs. 530.1, 530.2, 530.3 and 530.4 are adapted 
from current Secs. 514.1(b) (purpose), 514.1(a) (scope) and 514.2 
(definitions). These proposed rules envision an electronic filing 
system for service contracts, and coordinate the publication of 
essential terms under section 8(c) of the 1984 Act with the publication 
of tariffs under proposed regulation 46 CFR part 520.
    OSRA fundamentally revises the statutory scheme for tariffs and 
service contracts. Tariffs are no longer required to be filed with the 
Commission. Service contracts, on the other hand, are required to be 
filed confidentially with the Commission, and must contain specified 
essential terms. Similarly, while OSRA preserves the requirement that 
certain essential terms be published, that requirement has been 
significantly scaled back and includes only the following terms: (1) 
Origin and destination port ranges; (2) the commodity or commodities 
involved; (3) the minimum volume or portion; and (4) the duration of 
the service contract. Just as significant to service contracting is the 
repeal of the ``me-too'' right for similarly situated shippers. 
Carriers will no longer be required to offer the same contract terms to 
similarly situated shippers.
    Another significant change made by OSRA is the authorization of 
non-conference ocean common carrier agreements to enter into service 
contracts. Furthermore, under OSRA, unrelated, multiple shippers may 
enter into service contracts without necessarily being members of 
shippers' associations. These changes significantly free parties to 
make service contracts centered around the realities of the 
marketplace.
    The Commission is mindful of several competing interests regarding 
the filing of service contracts. First, the filing requirements must be 
crafted with an appreciation for regulated entities' interests in 
simple, speedy and straightforward filing procedures. Second, they must 
enable the Commission to fulfill its statutory duty to guard against 
section 10 violations and section 6(g) matters. This responsibility on 
the part of the Commission is especially important now that service 
contracts will be confidential; potentially aggrieved parties will rely 
on Commission oversight. This will be complicated by the predicted 
increase in the sheer number of service contracts filed. It is with 
these goals in mind that the Commission proposes the following 
regulations, designed to enable the Commission to fulfill its 
regulatory mandate while imposing a minimal burden on regulated 
parties.

The Proposed Rule

    The proposed rule redesignates the Commission's rules on service 
contracts currently in 46 CFR part 514 into a new part, 46 CFR part 
530. The following discussion covers the proposed rule's treatment of 
service contract filings; essential terms publications; carrier duty to 
disclose to collective bargaining agreements; confidentiality; excepted 
commodity (``mixed'') and global contracts; re-rating; and 
miscellaneous matters.

General filing requirements

    Filing requirements in the existing regulations (46 CFR part 514) 
as well as in the proposed regulations, govern initial filings, 
amendments, and notices of correction and cancellation. In an attempt 
to update and streamline the filing system, as well as enable the 
Commission to fulfill its statutory monitoring duty over service 
contracts, the Commission is proposing to initiate a filing system 
which would be completely electronic. Due to the volume of service 
contract filings the Commission expects after May 1, 1999, adoption of 
an electronic, as opposed to a paper-based, system appears to be the 
most practical approach.
    Given the exceptionally short legislative deadlines and limitations 
on resources available to the Commission, the only viable approach to 
implementing an electronic filing system at this juncture would be to 
create a system adapted from the Commission's currently used filing 
system for the Essential Terms (``ETs'') of service contracts. The 
proposed rule reflects this approach. It envisions accepting only 
electronic filings (including amendments to service contracts filed 
prior to May 1, 1999); amendments to paper-filed service contracts 
would also necessitate the re-filing in electronic form of the 
underlying, i.e. initial, contract itself.
    While the creation of an entirely new, tailor-made service contract 
filing system could have benefits over the proposed approach in terms 
of simplicity or flexibility, the creation of such a new system simply 
is not possible before May 1, 1999. The Commission invites comments on 
approaches to establishing such a new system, however, and if warranted 
and financially feasible could pursue such a strategy as a longer-term 
goal, treating the proposed system as a transitional solution.
    The Commission has determined not to propose continuing the paper 
filing of service contracts, based on an assessment that an increased 
volume of contracts would create unworkable administrative burdens on 
both the industry and the agency and could substantially impair the 
Commission's ability to fulfill its oversight, enforcement, and 
monitoring responsibilities. However, commenters are welcome to address 
this matter as well.
    The proposed regulation includes the details of this system. See, 
Sec. 530.9 and Appendix A. The Commission solicits from the industry 
its views on the benefits and limitations of this approach and any 
suggested alternatives.

Registration of filers

    The proposed rule carries over the existing filing fees for service 
contract and amendment filings, and for corrections to service 
contracts. Also, provision has been made to ``grandfather'' 
organizations currently registered to file essential terms 
publications, with no requirement that they submit a further 
registration fee. All individuals who presently possess an organization 
maintenance log-on be issued a new log-on and password for the new 
system. All other potential service contract filers must pay the 
requisite fee and be registered for service contract filing prior to 
filing service contracts. The proposed rule would also ``grandfather'' 
software which was certified by the old system, but would allow 
software providers to test their filing software if they so desired for 
the same certification fee.

Publication of essential terms

    OSRA continues to require the publication of certain essential 
terms of service contracts. Section 8(c)(3) instructs carrier parties 
to service contracts to make these essential terms

[[Page 71064]]

available to the public ``in tariff format.'' The proposed regulation 
suggests that carriers and conferences should be able to satisfy this 
obligation in the same way they publish their tariff information under 
proposed 46 CFR part 520. Comments are solicited on any other options 
which might also be feasible and which would affect compliance with the 
publication requirement of the Act.
    In an effort to assist the shipping public find statements of 
essential terms published according to this part, the Commission 
anticipates making a list of the locations of all such publications 
available on the FMC website. 46 CFR 530.13(f). The Commission requests 
comments this proposal.
    OSRA removes the requirement that carriers and conferences provide 
``me-too'' rights to similarly situated shippers on their service 
contracts. Similarly, OSRA no longer requires carriers and conferences 
to publish most of the essential terms of service contracts filed with 
the Commission. It appears that allowing carriers and conferences to 
publish their (non-confidential) essential terms by the same method 
they publish their tariffs is the most efficient approach to the 
publication requirement. Therefore, the proposed rule cross-references 
the technical requirements of the newly proposed tariff publication 
regulations to effectuate the essential terms publication required 
under this part.

Agreements and service contracting

    Commission regulation governing the filing of individual carrier 
and conference service contracts remains, for the most part, the same 
as it had been under previous Commission regulation. However, there has 
been one significant change by OSRA: The additional authority for an 
``agreement'' (as opposed to only a ``conference'') to enter into 
service contracts. This raises several issues which the Commission will 
address in this rulemaking.
    Often, non-conference agreements do not create a central 
secretariat or authority to act on the agreement's behalf, nor do they 
maintain a common tariff. Unlike conferences, therefore, such 
agreements may have no uniform or standard method for filing or 
publishing the agreement service contract matters.1
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    \1\ Indeed, while the statute speaks of a ``carrier or an 
agreement'' entering into a contract, in instances where the 
agreement is not a distinct legal entity, the Commission anticipates 
that it is the multiple carrier members, rather than the agreement 
itself, who would be signatories to such a contract.
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    With regard to non-conference agreements, the proposed rule 
indicates that any of the agreement parties to the service contract may 
file; if none of the parties properly files, the liability for such 
failure to file would rest equally on all agreement members party to 
the contract.
    The question arises of how to require publication of statements of 
essential terms by agreements which do not have a common tariff. The 
proposed rule requires that each member of a non-conference agreement 
publish the statement of essential terms in its individual tariff, and 
reflect in its statement of essential terms the identity of the other 
carrier parties. 46 CFR 530.13(b). The Commission welcomes any comments 
as to alternative approaches by which non-conference agreement carriers 
may satisfy the publication requirement of section 8(c)(3) of the Act 
as revised by OSRA.
    A similar issue arises with the Commission's policy regarding the 
filing by conferences of service contracts to which fewer than all 
members are parties. In the past, the Commission's policy has been to 
impose on the conferences the duty to file and publish the service 
contract material for service contracts entered into under the 
conference agreement, in which fewer than all the members would 
participate. 46 CFR 514.4(d)(5)(B). For service contracts outside the 
scope of the conference, the conference retained the authority to file 
on behalf of its member(s), but the carrier(s) involved also had a 
separate duty to file. 46 CFR 514.4(d)(5)(B)(2)(ii).
    It appears necessary to revisit these policies at this time. A 
requirement that conferences file service contracts entered into by a 
subset of its membership would seem inconsistent with OSRA's new 
prohibition on agreement members being required to disclose the terms 
of their contracts, as well as other provisions regarding independent 
and confidential service contracting. Therefore, we are proposing that, 
for filing and publication purposes, contracts entered into by some, 
but not all, of a conference's members be treated in the same manner as 
non-conference agreement contracts. 46 CFR 530.5, 530.13.
    Finally, the Commission must resolve how to handle re-rating issues 
which might arise under non-conference agreement service contracts. By 
definition, agreements do not have common tariffs at which carriage 
under a terminated or canceled contract could be re-rated. Therefore, 
if a service contract is rejected for not meeting the filing 
requirements, deadlines, etc., the issue of which rate should be 
applied to cargo which moved under that contract presents itself. One 
approach to this problem would be to re-rate the cargo at the tariff 
rate for that commodity of the carrier which actually moved the cargo. 
46 CFR 530.16. While this is the approach presented in the proposed 
regulations, the Commission is interested to hear any others which 
might be suggested in the comments.

Duty to Disclose to Labor Organizations

    In light of the confidentiality of service contracts and some of 
their essential terms, OSRA amends section 8(c)(4) to require that a 
carrier which is a party to or is subject to a collective bargaining 
agreement with a labor organization must respond within a reasonable 
period of time to that labor organization's request regarding the 
carrier's responsibility for certain activities related to cargoes 
transported under a service contract. The Commission is proposing, at 
46 CFR 530.8, certain definitions of ``reasonable period of time'' for 
responding to a labor organization's request for information under 
section 8(c)(4) of the Act. This definition reflects the concern that 
labor organizations are apprised of the handling responsibility for 
cargo before that cargo arrives at the discharge port. The Commission 
expects that aggrieved labor organizations will use existing Commission 
processes in the event of noncompliance by a carrier. The Commission 
would entertain proposals for more specific and stringent rules if the 
existing standards and procedures prove inadequate in practice.

Commission Confidentiality

    Proposed regulation 46 CFR 530.4 seeks to amend the confidentiality 
provision as follows: ``Nothing contained in this part shall preclude 
the Commission from providing certain information from service 
contracts to another agency of the Federal government of the United 
States as deemed necessary.'' Other federal agencies, in the 
administration of their statutorily mandated responsibilities, may have 
a need for service contract information which will otherwise be filed 
confidentially with the Commission and which under the existing 1984 
Act is disclosed in the published essential terms statement. In an 
April 1, 1998 floor statement, the Senate bill's sponsor, Senator 
Hutchison, noted that

    Federal agencies have expressed concerns over how they are to 
ensure ocean carrier compliance with United States cargo preference 
law requirements concerning shipping rates in an era of service 
contract rate confidentiality. The FMC is encouraged

[[Page 71065]]

to work with affected Federal agencies to address this concern.

Cong. Rec. S3320,(daily ed. April 21, 1998)(statement of Sen. 
Hutchison). Similarly, in an October 1, 1998 floor exchange, the 
Chairman of the Senate Committee on Commerce, Science and 
Transportation, Senator McCain, asked Senator Hutchison

to clarify the ability of the FMC to share confidential service 
contract rate and service information with other Federal agencies to 
ensure that the U.S.-fleet shipping rates for preference cargo 
shipments meet statutory requirements.

Cong. Rec. S11302 (daily ed. Oct. 1, 1998)(Statement of Sen. McCain). 
Senator Hutchison replied,

    . . . I want to make it clear that the FMC is authorized to 
share with another Federal agency service contract information that 
parties of the service contract have legally decided to protect from 
public disclosure in order to enable that Federal agency to ensure 
the compliance of U.S.-flag ocean common carriers with cargo 
preference law shipping rate requirements. Of course, that 
confidential service contract information would remain protected 
from disclosure to the public consistent with the Shipping Act of 
1984, as amended by the Ocean Shipping Reform Act of 1998, and other 
applicable Federal Laws.

Cong. Rec. S11302 (daily ed. Oct. 1, 1998)(Statement of Sen. 
Hutchison). Thus, it is clear that the confidentiality afforded to 
service contract information is limited to nondisclosure to the public, 
and was not intended by Congress to fetter other Federal agencies in 
their oversight responsibilities.2 It is therefore the 
intention of the Commission to allow access to filed contracts to 
Federal government agencies where appropriate; any such disclosures 
will not jeopardize the statutory aim of nondisclosure of confidential 
service contract information to nongovernmental entities.
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    \2\ With respect to Department of Defense cargo preference law 
oversight, moreover, it also appears that the Federal Acquisition 
Regulations, 48 CFR 9.104-1(g), 9.105-1(c)(3), 15.404-1(a)(1), and 
15.403-3(a), would provide the Department access to the service 
contract information in any event, although in a less efficient and 
more cumbersome manner.
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Service Contracts With NVOCCs as Shipper Parties

    Service contracts with non-vessel-operating common carriers 
(``NVOCCs'') remain subject to special requirements for certification 
of NVOCCs'' financial responsibility. See 46 CFR 514.7(e) and 46 CFR 
530.7. The financial responsibility procedures in this proposed rule 
comport with the proposed regulation at 46 CFR Sec. 515.27 (dealing 
with financial responsibilities of ocean transportation 
intermediaries).

Exceptions and Rejection

    Congress has directed the Commission to refuse to accept any 
service contract dealing with commodities excepted from application by 
section 8(c)(2) or receiving an exemption under section 16 of the 1984 
Act. S.Rep. No. 105-61, 105th Cong. 1st Sess., at 23 
(1997)(``Report''). The Commission proposes to continue to permit the 
filing of service contracts which include both excepted and non-
excepted commodities (``mixed'' contracts), in lieu of requiring the 
parties to rewrite their contracts to separate excepted and non-
excepted commodities for filing purposes. Therefore, the Commission 
seeks comments on proposed regulation 46 CFR 530.14, particularly 
regarding the burden that would result to filers if service contracts 
were required to be drafted specifically so that excepted commodities 
were not covered. The proposal indicates that the Commission would 
refuse to accept for filing service contracts which exclusively cover 
excepted commodities, in keeping with the Report language.3
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    \3\ The Commission solicited comment on this subject in Docket 
No. 85-6, Notice of Inquiry Concerning the Interpretation of Section 
8(a) and (8)(c) of the Shipping Act of 1984, as well as Docket No. 
86-6, Service Contracts. In Docket No. 86-6, the Commission issued 
its Final Rule, 52 FR 23989 (June 26, 1989), and noted that 
``service contracts often include a mixture of exempt and non-exempt 
commodities, so that a shipper can obtain a better contract rate. 
Presumably, the ability to offer service contracts on mixed 
commodities also benefits carriers.'' Id. at 23996. The Commission 
assumes that the same holds true for the shipping industry today, 
but solicits comment on industry practice and the burden which would 
be imposed if the Commission were to require that filed service 
contracts cover only non-excepted commodities.
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Global Service Contracts

    Members of the carrier industry have suggested that the Commission 
should accept filings of service contracts which include terms covering 
both U.S.-to-foreign and foreign-to-foreign movements of cargo 
(hereinafter ``global contracts''). Clearly, the foreign-to-foreign 
activity lies outside the Commission's jurisdiction to regulate. This 
issue was before the Commission previously in Docket No. 92-20, Service 
Contracts in Foreign-to-Foreign Trades, Advance Notice of Proposed 
Rulemaking, 57 Fed. Reg. 18855 (May 1, 1992). That proceeding was 
discontinued, as carriers, conferences and shippers' associations 
strongly opposed the proposal to allow the filing of global service 
contracts. In their comments in that proceeding, several carriers and 
conferences noted that there was no business efficiency reason to allow 
the filing of global service contracts as ``there was no commercial 
need'' for the ability to so. In contrast, several large shippers 
expressed their desire to have the ability to enter into global service 
contracts and to thereby simplify and aggregate their traffic and 
logistics operations.
    Many commenters in that proceeding suggested that global 
contracting would severely interfere with or complicate ``me-too'' 
rights. Furthermore, the National Customs Brokers and Forwarders 
Association of America stated that allowing such global contracts would 
give rise to discrimination in favor of large global shippers that 
could commit to larger worldwide volumes. However, Congress has 
eliminated the Commission's mandate to guard against unreasonable 
discrimination (except with regard to clearly defined protected 
classes), retooling the Act to place more emphasis on individual 
contracting and the marketplace.
    There remains a concern, however, that allowing global service 
contracts, in which rates in U.S. trades will depend on minimum volume 
commitments calculated on a global basis, will complicate the 
Commission's ability to monitor and enforce carriers' compliance with 
their filed contract rates. While there is merit to this point, the 
legal obstacles do not appear to be insurmountable. There is no bright-
line geographic limit to the Commission's ability to compel information 
from carriers. Rather, information sought must be ``not unreasonable'' 
and ``reasonably relevant'' to a lawful Commission inquiry. United 
States v. Morton Salt Company, 338 U.S. 632 (1950); Far East Conference 
v. Federal Maritime Commission, 337 F.2d 146 (D.C. Cir. 1964). 
Therefore, if information about the volumes moving in foreign-to-
foreign commerce is relevant to the question of what rate applies in a 
U.S.-to-foreign trade (clearly a matter within the Commission's 
jurisdiction), then it would appear that such information may be 
compelled by the Commission. Moreover, we note that proper 
administration of certain sections of the 1984 Act, i.e., section 
13(b)(5), redesignated as 13(b)(6) by OSRA, would seem to require that 
the Commission have the ability to compel information about cross-
trades. However, as a practical matter, auditing arrangements with 
global quantities will undoubtedly generate substantial challenges.
    Some of the objections in Docket No. 92-20 focused on whether 
global

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volumes were consistent with the requirement for the filing of minimum 
volume commitments in public essential terms. While that issue was more 
important when parties had the right to ``me-too'' the terms, it still 
has some significance. The Commission proposes an approach that, when 
parties have a unitary minimum volume commitment covering U.S.-and 
foreign-to-foreign trades, it publish the amount in its public 
essential terms publication, but clearly indicate for the public that 
the volume includes quantities moving in foreign-to-foreign trades.
    Furthermore, the concerns that conferences and niche carriers had 
in 1992 may have disappeared completely with the ability of non-
conference agreements to enter into service contracts. Under OSRA, 
alliances, along with individual carriers, will have the ability to 
offer global service contracts. This ability, of course, will also be 
affected by the Commission's approach on the treatment of less-than-
total agreement service contracts, as discussed more fully above.
    Another question raised in Docket 92-20 was whether filing of 
global contracts would somehow extend other provisions of the Act, such 
as the prohibited acts in section 10, to the foreign-to-foreign legs. 
It is clear, however, that there would be no authority for the 
Commission to spontaneously extend its jurisdiction in this manner. 
Therefore, it appears that there is little policy or legal necessity to 
require parties to artificially structure their commercial dealings to 
be coextensive with the Commission's regulatory jurisdiction. Rather, a 
more sound approach would seem to be for carriers to enter into 
contracts based on the requirements of the global market, for carriers 
to submit them in their true and complete totality, and for the 
Commission to regulate those carriers, their agreements and service 
contracts to the extent of its authority, and not beyond.
    It appears that the significant revisions to the 1984 Act 
necessitating sweeping changes to the service contract filing 
regulations, make this proposed rulemaking proceeding an opportune 
moment for the Commission to revisit the issues presented by the 
acceptance of filing for both mixed and global contracts. In light of 
the regulatory changes mandated by OSRA, the current proposal seeks to 
reduce the burden on the entities subject to the section 8(c) filing 
and publication requirements, together with recognition of the 
Commission's need to have the ability to easily access and search the 
filed documents. Thus, the proposed regulation allows the filing of 
service contracts which include (but are not limited to) excepted and 
exempted commodities and service outside the U.S. foreign trades. The 
Commission is concerned that it not overburden its filers, or encourage 
them to create artificial documents which do not reflect the actual 
underlying business agreement which the service contract represents.

Inland Portions of Through Movements to Europe

    Unlike the United States, it appears that the European Commission 
(``E.C.'')--while permitting conference service contracts for the ocean 
movement of cargo--prohibits conference contracts which cover the 
movement of cargo to inland points in Europe. Therefore, it seems that 
carriers in the U.S.-European trade may participate in a conference 
service contract covering U.S.-Europe ocean movements, and sign an 
individual service contract covering European inland transport for the 
same shipper customer. A question has arisen as to whether these 
contracts for European inland transport must be filed with the 
Commission. It would seem that filing would be consistent with 
statutory requirements to the extent the contracts establish the 
European inland portion of a through rate charged by a carrier in a 
U.S.-Europe intermodal movement. However, the Commission welcomes 
comments on how it could minimize the regulatory burdens occasioned by 
these differences in regulatory regimes, to the extent it may do so 
given its own statutory responsibility.

Cross-Referencing Tariffs

    Presently, most filed service contracts contain re-occurring terms 
common to all of a carrier's or conference's service contracts 
(including matters such as free time and demurrage, bunkering rates, 
currency matters, etc.) the complete text of which would be very 
cumbersome for the carrier party to file with the service contract. 
Therefore, service contracts almost always make cross-reference to 
terms contained in that carrier's or conference's tariff or an 
essential terms publication.
    The Commission recognizes that it was Congress' intent, by lifting 
the requirement that tariffs be filed with the Commission, to allow 
parties to service contracts more freedom and flexibility in their 
commercial arrangements. The proposed rule, Sec. 530.9(c)(2), thus 
permits filed service contracts to refer to terms outside the four 
corners of the filed service contract, but only if they are contained 
in the carrier's or conference's tariff publication.
    Another option for the system is to allow service contract filers 
to file with the Commission a ``general rules'' filing as a part of 
their service contract register. This might be useful for filers which 
file multiple service contracts with duplicative and/or commonly 
applicable items (e.g. rules for hazardous cargo, equipment 
interchanges, mileage guide publications, location groups, inland 
rates, and bills of lading); rather than repeatedly submitting the text 
of these amendments in each contract filing, filers could simply 
reference their ``general rules'' filing. This would also maintain the 
confidentiality of such terms. Filing and amendments to these ``general 
rules'' would be subject to the filing requirements of service 
contracts and amendments. The Commission wishes to hear how the 
industry views this issue and what options may be available for its 
resolution.

Rejection of Service Contract Filings

    Commission regulations currently outline the procedures for 
rejection of service contracts and essential terms filed with the 
Commission. 46 CFR 514.7(j). The Commission rejects service contracts 
or their amendments which do not conform to the requirements of the 
1984 Act or Commission regulation, including timeliness of filing and 
adequacy and accuracy of the publication of the statement of essential 
terms. The proposed regulation adapts the current rejection rules as 
necessary to meet the changes to the 1984 Act made by OSRA. The 
proposed regulations also provide for ``non-acceptance,'' a new term 
reflecting the congressional mandate that the Commission not accept for 
filing service contracts which cover only excepted commodities, 
consistent with congressional directives.
    The proposed regulations also anticipate re-rating for service 
contracts with non-conference agreements. Such re-rating will be made, 
under proposed regulation 46 CFR part 530 subpart E, at the tariff rate 
of the carrier which actually carried the cargo in question.
    The definitions of ocean common carrier and conference are changed 
to reflect the concerns the Commission discussed in its proposed 
Agreements rulemaking. See, 46 CFR part 535.
    The reporting requirements contained in 46 CFR part 530 have been 
submitted to the Office of Management and Budget (OMB). The estimated 
total annual burden for the estimated 155 annual respondents is 303,953 
manhours. This estimate includes, as applicable, the

[[Page 71067]]

time needed to review instructions, develop, acquire, install, and 
utilize technology and systems for the purposes of collecting, 
validating, and verifying information, processing and maintaining 
information, and disclosing and providing information; adjust the 
existing ways to comply with any previously applicable instructions and 
requirements; train personnel to respond to a collection of 
information, search existing data sources, gathering and maintain the 
data needed, and complete and review the collection of information; and 
transmit or otherwise disclose the information.
    Send comments regarding the burden estimate to the Office of 
Information and Regulatory Affairs, Office of Management and Budget, 
Attention Desk Officer for the Federal Maritime Commission, New 
Executive Office Building, 725 17th Street, NW, Washington, DC 20503 
within 30 days of publication in the Federal Register.
    The FMC would also like to solicit comments to: (a) Evaluate 
whether the proposed collection of information is necessary for the 
proper performance of the functions of the agency, including whether 
the information will have practical utility; (b) evaluate the accuracy 
of the Commission's burden estimates for the proposed collection of 
information; (c) enhance the quality, utility, and clarity of the 
information to be collected; and (d) minimize the burden of the 
collection of information on respondents, including the use of 
automated collection techniques or other forms of information 
technology. Comments submitted in response to this proposed rulemaking 
will be summarized and/or included in the final rule and will become a 
matter of public record.
    The Chairman certifies, pursuant to section 605 of the Regulatory 
Flexibility Act, 5 U.S.C. 605, that the proposed amendments will not, 
if promulgated, have a significant impact on a substantial number of 
small entities. The affected universe of the parties is limited to 
vessel-operating common carriers. The Commission has determined that 
these entities do not come under the programs and policies mandated by 
the Small Business Regulatory Enforcement Fairness Act as they 
typically exceed the threshold figures for number of employees and/or 
annual receipts to qualify as a small entity under Small Business 
Administration guidelines.

List of Subjects for 46 CFR Parts 514 and 530

    Freight, Maritime carriers, Reporting and recordkeeping 
requirements.

    For the reasons set out in the preamble, the Commission proposes to 
remove 46 CFR part 514 and to add new 46 CFR part 530 to subchapter B 
to read as follows:

PART 514--[REMOVED]

PART 530--SERVICE CONTRACTS

Subpart A--General Provisions

Sec.
530.1  Purpose.
530.2  Scope and applicability.
530.3  Definitions.
530.4  Confidentiality.
530.5  Duty to file.
530.6  Service contracts with NVOCCs.
530.7  Certification of shipper status.
530.8  Duty to labor organizations.

Subpart B--Filing Requirements

530.9  Service contracts.
530.10  Notices.
530.11  Amendment, correction, and cancellation.
530.12  Filing fees and other costs.

Subpart C--Publication of Essential Terms

530.13  Publication.

Subpart D--Exceptions

530.14  Exceptions.

Subpart E--Rejection

530.15  Contract non-acceptance, rejection and notice.
530.16  Implementation, prohibition and rerating.

Subpart F--Recordkeeping and Audit

530.17  Recordkeeping and audit.

Appendix A to Part 530--Instructions for the Filing of Service 
Contracts

Exhibit 1 to Part 530--Filer Registration Form and Instructions

    Authority: 46 U.S.C. App. 1704, 1705, as amended by Pub. L. 105-
258. 112 Stat. 1902.

Subpart A--General Provisions


Sec. 530.1  Purpose.

    The purpose of this part is to facilitate filing of service 
contracts and publication of certain essential terms of those service 
contracts as required by section 8(c) of the Shipping Act of 1984 
(``Act''). This part enables the Commission to review service contracts 
to ensure that these contracts and the parties to them comport to the 
requirements of the Act. It is also the purpose of this part to 
implement electronic filing provisions for service contracts to 
facilitate compliance and minimize the burden on the oceanborne 
commerce of the United States.


Sec. 530.2  Scope and applicability.

    An individual ocean common carrier or an agreement between or among 
ocean common carriers may enter into a service contract with one or 
more shippers subject to the requirements of the Act.


Sec. 530.3  Definitions.

    When used in this part:
    (a) Act means the Shipping Act of 1984 as amended by the Ocean 
Shipping Reform Act of 1998.
    (b) Agreement means an understanding, arrangement, or association 
(written or oral) and any modification or cancellation thereof which 
has been filed and effective under 46 CFR part 535 with the Federal 
Maritime Commission. The term does not include a maritime labor 
agreement.
    (c) Authorized person means a carrier itself or a duly appointed 
agent thereof who is authorized to file service contracts on behalf of 
the carrier party to a service contract and to publish the 
corresponding statement of essential terms and registered by the 
Commission to file under Sec. 530.5(d) and appendix A of this part.
    (d) BTCL means the Commission's Bureau of Tariffs, Certification 
and Licensing or its successor bureau.
    (e) Common carrier means a person holding itself out to the general 
public to provide transportation by water of passengers or cargo 
between the United States and a foreign country for compensation that:
    (1) Assumes responsibility for the transportation from the port or 
point of receipt to the port or point of destination; and
    (2) Utilizes, for all or part of that transportation, a vessel 
operating on the high seas or the Great Lakes between a port in the 
United States and a port in a foreign country, except that the term 
does not include a common carrier engaged in ocean transportation by 
ferry boat, ocean tramp, or chemical parcel tanker, or by a vessel when 
primarily engaged in the carriage of perishable agricultural 
commodities:
    (i) If the common carrier and the owner of those commodities are 
wholly owned, directly or indirectly, by a person primarily engaged in 
the marketing and distribution of those commodities and
    (ii) Only with respect to those commodities.
    (f) Conference means an agreement between or among two or more 
ocean common carriers which provides for the fixing and adherence to 
uniform tariff rates, charges, practices and conditions of service 
relating to the receipt, carriage, handling and/or delivery of 
passengers or cargo for all members; but the term does not include 
joint service, consortium, pooling, sailing, or transshipment 
agreements.

[[Page 71068]]

    (g) Controlled carrier means an ocean common carrier that is, or 
whose operating assets are, directly or indirectly owned or controlled 
by a government. Ownership or control by a government shall be deemed 
to exist with respect to any ocean common carrier if:
    (1) A majority portion of the interest in the carrier is owned or 
controlled in any manner by that government, by any agency thereof, or 
by any public or private person controlled by that government; or
    (2) That government has the right to appoint or disapprove the 
appointment of a majority of the directors, the chief operating officer 
or the chief executive officer of the carrier.
    (h) File or filing (of service contracts or amendments thereto) 
means use of the Commission's electronic filing system for receipt of a 
service contract or amendment and the recording of its receipt.
    (i) Labor agreement means a collective-bargaining agreement between 
an employer subject to the Act, or group of such employers, and a labor 
organization or an agreement preparatory to such a collective-
bargaining agreement among members of a multi-employer bargaining 
group, or an agreement specifically implementing provisions of such a 
collective-bargaining agreement or providing for the formation, 
financing, or administration of a multi-employer bargaining group, but 
the term does not include an assessment agreement.
    (j) Ocean common carrier means a common carrier that operates, for 
all or part of its common carrier service, a vessel on the high seas or 
the Great Lakes between a port in the United States and a port in a 
foreign country, except that the term does not include a common carrier 
engaged in ocean transportation by ferry boat, ocean tramp, or a 
chemical parcel tanker.
    (k) Non-vessel-operating common carrier (``NVOCC'') means an ocean 
transportation intermediary as defined by section 3(17)(B) of the Act.
    (l) Service contract means a written contract between one or more 
shippers and an individual ocean common carrier or an agreement between 
or among ocean common carriers, in which the shipper makes a commitment 
to provide a certain minimum quantity or portion of its cargo or 
freight revenue over a fixed time period, and the individual ocean 
common carrier or the agreement commits to a certain rate or rate 
schedule and a defined service level, such as, assured space, transit 
time, port rotation, or similar service features. The contract may also 
specify provisions in the event of nonperformance on the part of any 
party.
    (m) Shipper means a cargo owner; the person for whose account the 
ocean transportation is provided; the person to whom delivery is to be 
made; a shippers' association; or an NVOCC that accepts responsibility 
for payment of all applicable charges under the service contract.
    (n) Statement of essential terms means a concise statement of the 
essential terms of a service contract required to be published under 
Sec. 530.13 of this part.


Sec. 530.4  Confidentiality.

    All service contracts and amendments to service contracts filed 
with the Commission shall, to the full extent permitted by law, be held 
in confidence. Nothing contained in this part shall preclude the 
Commission from providing certain information from or access to service 
contracts to another agency of the Federal government of the United 
States.


Sec. 530.5  Duty to file.

    (a) Generally. The duty under this part to file service contracts 
and notices, and to publish statements of essential terms shall be upon 
the carrier party or conference which is the signatory to the service 
contract.
    (b) Agreements. A service contract entered into by all members of a 
non-conference agreement may be filed by any member of that agreement, 
as the carrier parties may so designate. Signatories to a service 
contract required to file a service contract under this part shall be 
jointly and severally liable for a failure to file the service 
contract.
    (c) Conferences.--(1) The duty to file shall be upon the conference 
for service contracts entered into by a conference on behalf of its 
full membership.
    (2) A service contract entered into by fewer than all the members 
of a conference may be filed by any participating carrier, as the 
participating carriers may so designate. Signatories to a service 
contract required to file a service contract under this part shall be 
jointly and severally liable for a failure to file the service 
contract.
    (d) Registration.--(1) Application. Authority to file or delegate 
the authority to file must be requested by a responsible official of 
the service contract carrier party in writing, by submitting to BTCL 
the Registration Form in Exhibit 1 to this part and the appropriate fee 
as defined under Sec. 530.12.
    (2) Approved registrations. BTCL shall grant Registrants with 
software certified by BTCL a log-on ID and password for filing and 
amending service contracts.
    (3) Software certification. Certification of software may be 
requested by appointment through the Commission's Office of Information 
Resources Management (``OIRM'') and payment of the appropriate fee as 
set forth in Sec. 530.12. OIRM will test the software as set out in 
appendix A to this part. Organizations certified prior to May 1, 1999 
for the batch filing of ``Essential Terms Publications'' (``ETs'') in 
the Commission's former ``Automated Tariff Filing Information System'' 
(``ATFI'') are not required to re-certify their software but may if 
they so choose using the same procedure as for initial certification.
    (4) Emergencies. In an emergency, a person, already authorized to 
maintain and edit its firm's organization record under appendix A to 
this part, may change a ``publisher'' under Appendix A to this part, 
verbally notify BTCL, and promptly submit the proper documents.
    (5) Prior registration and certification. Each organization 
registered to file essential terms publications before May 1, 1999 will 
be issued a log-on ID and password for access to file service contracts 
under the Commission's electronic filing system.


Sec. 530.6  Service contracts with NVOCCs.

    No ocean common carrier or agreement among ocean common carriers 
may execute or file any service contract in which a contract party, an 
affiliate of such contract party, or a member of a shippers' 
association, entitled to receive service under the contract, is an 
NVOCC, unless such NVOCC has a published tariff and proof of financial 
responsibility as required by sections 8 and 19 of the Shipping Act of 
1984 and Commission regulations under this part, and 46 CFR parts 515 
and 520.


Sec. 530.7  Certification of shipper status.

    (a) Certification. The shipper contract party shall sign and 
certify on the signature page of the service contract its shipper 
status (e.g., owner of the cargo, shippers' association, NVOCC, or 
specified other designation), and the status of every affiliate of such 
contract party or member of a shippers' association entitled to receive 
service under the contract.
    (b) Proof of tariff and financial responsibility. If the 
certification completed by the contract party under paragraph (a) of 
this section identifies the contract party or an affiliate or member of 
a shippers' association as an

[[Page 71069]]

NVOCC, the ocean common carrier, conference or agreement shall obtain 
proof that such NVOCC has a published tariff and proof of financial 
responsibility as required under sections 8 and 19 of the 1984 Act 
before signing the service contract. An ocean common carrier, 
conference or agreement can obtain such proof by the same methods 
prescribed in Sec. 515.27 of this chapter.
    (c) Joining shippers' association during term of contract. If an 
NVOCC joins a shippers' association during the term of a service 
contract and is thereby entitled to receive service under the contract, 
the NVOCC shall provide to the ocean common carrier, agreement or 
conference the proof of compliance required by paragraph (b) of this 
section prior to making any shipments under the contract.
    (d) Reliance on NVOCC proof; independent knowledge. An ocean common 
carrier, agreement or conference executing a service contract shall be 
deemed to have complied with section 10(b)(12) of the Act upon meeting 
the requirements of paragraphs (a) and (b) of this section, unless the 
carrier party had reason to know such certification or documentation of 
NVOCC tariff and bonding was false.


Sec. 530.8  Duty to labor organizations.

    (a) In response to a written request transmitted from a labor 
organization with which it is a party or is subject to the provisions 
of a collective bargaining agreement with a labor organization, an 
ocean common carrier shall state, within a reasonable period of time, 
whether it is responsible for the following work at dock areas and 
within port areas in the United States with respect to cargo 
transported under a service contract:
    (1) The movement of the shipper's cargo on a dock area or within 
the port area or to or from railroad cars on a dock area or within a 
port area;
    (2) The assignment of intraport carriage of the shipper's cargo 
between areas on a dock or within the port area;
    (3) The assignment of the carriage of the shipper's cargo between a 
container yard on a dock area or within the port area and a rail yard 
adjacent to such container yard; or
    (4) The assignment of container freight station work and 
maintenance and repair work performed at a dock area or within the port 
area.
    (b) Terms. (1) For the purposes of this section, the terms dock 
area and within the port area shall have the same meaning and scope as 
defined in the applicable collective bargaining agreement.
    (2) For the purposes of this section, a reasonable period of time 
means:
    (i) If the cargo in question is due to arrive in less than five (5) 
days from the date of receipt of the request as defined in paragraph 
(a) of this section, two (2) days from the date of receipt of the 
request; but
    (ii) If cargo in question is due to arrive in more than five (5) 
days from the date of receipt of the request as defined in paragraph 
(a) of this section, four (4) days from the date of receipt of the 
request.
    (3) For the purposes of this section, movement includes, but is not 
necessarily limited to, the normal and usual aspects of the loading and 
discharging cargo in containers; placement, positioning and re-
positioning of cargo or of containers; the insertion and removal of 
cargo into and from containers; and the storage and warehousing of 
cargo.
    (4) For the purposes of this section, assignment includes, but is 
not limited to, the carrier's direct or indirect control over the 
parties which, the manner by which, or the means by which the shipper's 
cargo is moved, regardless of whether such movement is completed within 
or outside of containers.
    (5) For the purposes of this section, transmit includes first-class 
mail, by facsimile, by telegram, hand-delivery, or electronic mail 
(``e-mail'').
    (c) Applicability. This section requires the disclosure of 
information by an ocean common carrier only if there exists an 
applicable and otherwise lawful collective bargaining agreement which 
pertains to that carrier.
    (d) Disclosure not deemed admission or agreement. No disclosure 
made by an ocean common carrier shall be deemed to be an admission or 
agreement that any work is covered by a collective bargaining 
agreement.
    (e) Dispute resolution. Any dispute regarding whether any work is 
covered by a collective bargaining agreement and the responsibility of 
the ocean common carrier under such agreement shall be resolved solely 
in accordance with the dispute resolution procedures contained in the 
collective bargaining agreement and the National Labor Relations Act, 
and without reference to this section.
    (f) Jurisdiction and lawfulness. Nothing in this section has any 
effect on the lawfulness or unlawfulness under the Shipping Act of 
1984, the National Labor Relations Act, the Taft-Hartley Act, the 
Federal Trade Commission Act, the antitrust laws, or any other federal 
or state law, or any revisions or amendments thereto, of any collective 
bargaining agreement or element thereof, including any element that 
constitutes an essential term of a service contract under section 8(c) 
of the Act.

Subpart B--Filing Requirements


Sec. 530.9  Service contracts.

    (a) Authorized persons pursuant to Sec. 530.5 of this part shall 
file electronically, in the manner set forth in appendix A to this 
part, with BTCL a true and complete copy of every service contract 
before any cargo moves pursuant to that service contract, and as 
specified by this part.
    (b) Every service contract filed with the Commission shall include 
the complete terms of the contract, including, but not limited to, the 
following:
    (1) The origin port ranges in the case of port-to-port movements 
and geographic areas in the case of through intermodal movements;
    (2) The destination port ranges in the case of port-to-port 
movements and geographic areas in the case of through intermodal 
movements;
    (3) The commodity or commodities involved;
    (4) The minimum volume or portion;
    (5) The service commitments;
    (6) The line-haul rate;
    (7) Liquidated damages for non-performance (if any);
    (8) Duration;
    (9) The legal names and business addresses of the contract parties; 
the legal names of affiliates entitled to access the contract; the 
names, titles and addresses of the representatives signing the contract 
for the parties; and the date upon which the service contract was 
signed. An agreement service contract must identify the FMC Agreement 
Number(s) under which the service contract is filed. Carriers, 
conferences and/or agreements which enter into contracts that include 
affiliates must in each instance either:
    (i) List the affiliates' business addresses; or
    (ii) Certify that this information will be provided to the 
Commission upon request within ten (10) business days of such request. 
However, the requirements of this section do not apply to amendments to 
contracts that have been filed in accordance with the requirements of 
this section unless the amendment adds new parties or affiliates. 
Subsequent references in the contract to the contract parties shall be 
consistent with the first reference (e.g., (exact name), ``carrier,'' 
``shipper,'' or ``association,'' etc.);
    (10) A certification of shipper status in accordance with 
Sec. 530.7;
    (11) A description of the shipment records which will be maintained 
to

[[Page 71070]]

support the contract and the address, telephone number, and title of 
the person who will respond to a request by making shipment records 
available to the Commission for inspection under Sec. 530.17; and
    (12) All other provisions of the contract.
    (c) Certainty of terms. The terms described in paragraph (b)(1)-(8) 
of this section may not:
    (1) Be uncertain, vague or ambiguous; or
    (2) Make reference to terms not explicitly detailed in the service 
contract filing itself, unless those terms are contained in a tariff 
publication in accordance with the requirements of 46 CFR part 520.
    (d) Other requirements. Every service contract filed with BTCL 
shall also include, in the manner set forth in appendix A to this part:
    (1) A unique service contract number, and consecutively numbered 
amendment number, if any, of more than one (1) but less than ten (10) 
alphanumeric characters in length (``SC Number''); and
    (2) A number of more than one (1) but less than ten (10) 
alphanumeric characters in length which is the same number assigned to 
the filer's publication of statement of essential terms (``ET 
Number'').


Sec. 530.10  Notices.

    (a) Notice to the Commission. Within 10 days of the occurrence of 
any event listed below, there shall be filed with the Commission, 
pursuant to the same procedures as those followed for the filing of an 
amendment pursuant to Sec. 530.11 and appendix A to this part, a 
detailed notice of:
    (1) Correction (clerical or administrative errors);
    (2) Cancellation;
    (3) Termination by mutual agreement, breach or default not covered 
by the service contract;
    (4) Adjustment of accounts, by rerating, liquidated damages, or 
otherwise under Sec. 530.16;
    (5) Final settlement of any account adjusted as described in 
Sec. 530.16; and
    (6) Any change to:
    (i) The name of a basic contract party; or
    (ii) The list of affiliates, including changes to legal names and 
business addresses, of any contract party entitled to receive or 
authorized to offer services under the contract.
    (b) Notice to contract party. A proposed final accounting or 
rerating shall be issued to the appropriate contract party within 60 
days of termination, discontinuance, breach or default of the service 
contract, for:
    (1) Liability for liquidated damages provided for by the service 
contract; or
    (2) Termination, breach or default not covered by the contract.


Sec. 530.11  Amendment, correction, and cancellation.

    (a) Amendment. Service contracts may be amended by mutual agreement 
of the parties to the contract and shall be filed electronically with 
the Commission in the manner set forth in Sec. 530.9 and appendix A to 
this part.
    (b) Corrections. Either party to a filed service contract may 
request permission to correct clerical or administrative errors in the 
terms of a filed contract. Requests shall be filed, in duplicate, with 
the Commission's Office of the Secretary within 45 days of the 
contract's filing with the Commission, accompanied by remittance of a 
$233 service fee, and shall include:
    (1) A letter of transmittal explaining the purpose of the 
submission, and providing specific information to identify the initial 
or amended service contract to be corrected;
    (2) A paper copy of the proposed correct terms. Corrections shall 
be indicated as follows:
    (i) Matter being deleted shall be struck through; and
    (ii) Matter to be added shall immediately follow the language being 
deleted and be underscored;
    (3) An affidavit from the filing party attesting with specificity 
to the factual circumstances surrounding the clerical or administrative 
error, with reference to any supporting documentation;
    (4) Documents supporting the clerical or administrative error; and
    (5) A brief statement from the other party to the contract 
concurring in the request for correction.
    (6) If the request for correction is granted, the carrier, 
agreement or conference shall file the corrected contract provisions 
using a special case number as described in appendix A to this part.
    (c) Cancellation.--(1) Events anticipated by the contract; 
rerating. An account may be adjusted for events and damages covered by 
the service contract. This shall include adjustment necessitated by 
either liability for liquidated damages under Sec. 530.9(b)(8), or the 
occurrence of an event described in paragraph (c)(2) of this section.
    (2) Events not anticipated by the service contract. In the event of 
a contract termination which is not provided for in the contract itself 
and which results from mutual agreement of the parties or because the 
shipper party has failed to tender the minimum quantity or portion 
required by the service contract:
    (i) Further or continued implementation of the service contract is 
prohibited; and
    (ii) The cargo previously carried under the contract shall be 
rerated according to the otherwise applicable tariff provisions as set 
forth in Sec. 530.16.


Sec. 530.12  Filing fees and other costs.

    (a) Under the authority of the Independent Offices Appropriation 
Act, 31 U.S.C 9701, the Commission assesses a filing fee for the filing 
of service contracts, modifications and corrections thereto. Unless 
otherwise provided in this part, checks, drafts or money orders shall 
be remitted and made payable to ``Federal Maritime Commission'' 800 N. 
Capitol Street, NW., Washington, DC 20573.
    (b) Unless otherwise specified, overdue payments will be charged 
interest in accordance with the rate established by the Department of 
the Treasury for each 30-day period or portion thereof that the payment 
is overdue. In addition to any other remedy and penalty provided by law 
and regulation, if payment is overdue for 90 days the Commission may 
suspend or terminate electronic filing access.
    (c) Fees. (1) Service contracts and amendments. The filing fee 
shall be $1.63 per filing for all initial and amended service contract 
filings. Within 10 calendar days after the end of each month, the 
Office of Budget and Financial Management shall send a billing 
statement for each filer.
    (2) Filer registration. $91 for initial registration for one firm 
and one individual; and $91 for additions and changes. No fee will be 
assessed to continue filer registration for organizations registered 
for batch filing with the Commission prior to May 1, 1999.
    (3) Filing Guide. $25 for diskette; $49 for paper format. Requests 
for filing guides should be made in writing and addressed to: ``BTCL 
Manuals,'' Federal Maritime Commission, Washington, DC 20753. A check 
for the appropriate amount should be made to the ``Federal Maritime 
Commission.''
    (4) Corrections. $233 for corrections to service contracts under 
Sec. 530.11(c).
    (5) Software certification. $496 per test submission.

Subpart C--Publication of Essential Terms


Sec. 530.13  Publication.

    (a) Contents. All authorized persons who have a duty to file 
service contracts under Sec. 530.5 are also required to make available 
to the public,

[[Page 71071]]

contemporaneously with the filing of each service contract with the 
Commission, and in tariff format, a concise statement of the following 
essential terms:
    (1) The port ranges:
    (i) Origin;
    (ii) Destination;
    (2) The commodity or commodities involved;
    (3) The minimum volume or portion; and
    (4) the duration.
    (b) Method. The statement of essential terms shall be published as 
a separate part in the filer's tariff publication, conforming to the 
format requirements set forth in 46 CFR part 520. Where there is more 
than one carrier party to the service contract each of the carrier 
parties to the service contract shall publish the essential terms in 
their individual tariff publication pursuant to 46 CFR part 520; except 
however, when the carrier parties comprise the full membership of a 
conference, publication shall be made in the conference tariff.
    (c) References. The statement of essential terms shall contain the 
same number as that for the confidentially filed service contract (``ET 
Number'').
    (d) Terms. (1) If any of the essential terms include figures for 
commodities exempt under the Act or moving outside of the United States 
trades, the statement of essential terms shall so note.
    (2) If there are common carrier parties to the contract other than 
the carrier within whose tariff publication the essential terms appear, 
they shall be identified in the statement of essential terms.
    (e) Agents. Common carriers, conferences, or agreements may use 
agents to meet their publication requirement under this part.
    (f) Location. The Commission will publish on its website, 
www.fmc.gov, a listing of the locations of all service contract 
essential terms publications as defined in paragraph (a) of this 
section. The Commission will update this list on a periodic basis.
    (g) Updating statements of essential terms. To ensure that the 
information contained in a published statement of essential terms is 
current and accurate, the statement of essential terms publication 
shall include a prominent notice indicating the date of most recent 
publication or revision. When the published statement of essential 
terms are affected by filed amendments pursuant to Sec. 530.9 or 
corrections pursuant to Sec. 530.11(c), the current terms shall be 
immediately changed and published in the relevant statement of 
essential terms.
    (h) Commission monitoring. The Commission shall periodically 
monitor the publications of statements of essential terms to ensure 
that they conform to the corresponding filed terms.

Subpart D--Exceptions


Sec. 530.14  Exceptions.

    (a) Except as provided in paragraphs (b)(1) and (b)(2) of this 
section, the Commission will not accept for filing service contracts 
which exclusively concern bulk cargo, forest products, recycled metal 
scrap, new assembled motor vehicles, waste paper or paper waste, as 
those terms are defined in section 3 of the Act or service contracts 
exempted under section 16 of the Act. Such service contracts 
transmitted to the Commission for filing under appendix A to this part 
shall be rejected and the filer shall be notified of the rejection.
    (b) Inclusion in service contracts. An excepted commodity or 
exempted service listed in paragraph (a) of this section may be 
included in a service contract filed with the Commission, but only if:
    (1) There is a tariff of general applicability for the 
transportation, which contains a specific commodity rate for the 
excepted commodity; or
    (2) The contract itself sets forth a rate or charge which will be 
applied if the contract is rejected or otherwise terminated.
    (c) Waiver of exemption. Upon filing under this section, the 
service contract shall be subject to the same requirements as those for 
contracts involving non-excepted commodities.

Subpart E--Rejection


Sec. 530.15  Contract non-acceptance, rejection and notice.

    (a) Non-acceptance. The Commission shall not accept for filing any 
service contracts which relate exclusively to excepted commodities as 
described under Sec. 530.14(a). The Commission shall immediately notify 
the filer of the non-acceptance.
    (b) Notice of intent to reject. (1) Within 20 days after the 
initial filing of an initial or amended service contract, the 
Commission may reject, or notify the filing party of the Commission's 
intent to reject, a service contract that does not conform to the 
requirements of the 1984 Act or this part. The Commission will provide 
an explanation of the reasons for such rejection or intent to reject.
    (2) Except for rejection on the ground that the service contract or 
amendment thereto was not filed before cargo moved under it, or other 
major deficiencies (such as not containing terms required by 
Sec. 530.9(b)(1)-(8)) the parties will have 20 days after the date 
appearing on the notice of intent to reject to resubmit an 
appropriately modified contract.


Sec. 530.16  Implementation; prohibition and rerating.

    (a) Performance under a service contract or amendment thereto may 
begin without prior Commission authorization on the day it is effective 
consistent with Sec. 530.5, except for rejection under Sec. 530.15;
    (b) When the filing parties receive notice that an initial or 
amended service contract or statement of essential terms has been 
rejected under Sec. 530.15:
    (1) Further or continued implementation of the service contract is 
prohibited;
    (2) All services performed under the contract shall be rerated in 
accordance with the otherwise applicable tariff provisions for such 
services with notice to the shipper within 5 days of the date of 
rejection; and
    (3) Detailed notice shall be given to the Commission under 
Sec. 530.10 within 10 days of:
    (i) The rerating or other account adjustment resulting from 
rejection under this paragraph; or
    (ii) Final settlement of the account adjusted under Sec. 530.11.
    (c) If the rejected service contract was that of an agreement with 
no common tariffs, the re-rating shall be in accordance with the 
published tariff rates of the carrier which actually transported the 
cargo which were in effect at the time the cargo was transported.
    (d) Nothing in this section applies to service contracts 
unacceptable for filing with the Commission pursuant to Sec. 530.15(a).

Subpart F--Recordkeeping and Audit


Sec. 530.17  Recordkeeping and audit.

    (a) Records retention for five years. Every common carrier or 
agreement shall maintain original signed service contracts, amendments, 
and their associated records in an organized, readily accessible or 
retrievable manner for a period of five (5) years from the termination 
of each contract.
    (b) [paragraph (b) is stayed until further notice.] Where 
maintained. (1) Service contract records shall be maintained in the 
United States, except that service contract records may be maintained 
outside the United States if the Chairman or Secretary of an agreement 
or President or Chief

[[Page 71072]]

Executive Officer of the carrier certifies annually by January 1, on a 
form to be supplied by the Commission, that service contract records 
will be made available as provided in paragraph (c) of this section.
    (2) Penalty. If service contract records are not made available to 
the Commission as provided in paragraph (c) of this section, the 
Commission may cancel any carrier's or agreement's right to maintain 
records outside the United States pursuant to the certification 
procedure of paragraph (b) of this section.
    (c) Production for audit within 30 days of request. Every carrier 
or agreement shall, upon written request of the FMC's Director, Bureau 
of Enforcement, any Area Representative or the Director, Bureau of 
Economics and Agreements Analysis, submit copies of requested original 
service contracts or their associated records within 30 days of the 
date of the request.
    (d) Agreement service contracts. In the case of service contracts 
made by agreements, the penalties for a failure to maintain records 
pursuant to this section shall be jointly and severally on all of the 
agreement members party to the service contract in question.

Appendix A--Instructions for the Filing of Service Contracts

Part I--Filing Guide

    Service contract filing will be done in accordance with the 
instructions to service contract filers found in the Service 
Contract Filing Guide (``Filing Guide''). Filers may inspect a copy 
of the Filing Guide at the Commission's Bureau of Tariffs, 
Certification, and Licensing (``BTCL'') (or its successor), 800 N. 
Capitol St., NW, Suite 940, Washington, DC. The Filing Guide may be 
purchased from BTCL for a fee specified in 46 CFR 530.12.
    The Filing Guide includes the following items:
    (a) Transaction set. The transaction set format includes all 
transaction set segments and segment definitions.
    (b) Data Element Dictionary (``DED''). The data element 
dictionary contains the definition of data elements (e.g., amendment 
number, date formats, etc.).

Part II--Filing

    In all cases, the filing is processed as soon as possible after 
submission/receipt of the filing. The FMC's service contract filing 
system (``system'') assigns the filing date, which is the date an 
electronically transmitted (``on-line batch'') filing session file 
transfer is initiated, assuming there has been a successful file 
transfer. After the filing is processed, a filing-results message is 
placed in the filer's electronic mailbox on the central site system.
    A. Procedure. Filing is performed by transmission of prepared 
service contract material to the FMC system over dial-up lines from 
the filer's own computer, using Filing Guide service contract 
transaction set formats and the KERMIT or ZMODEM file transfer 
protocols. The conclusion of the file transfer sequence is a 
positive keyboard entry to initiate the transfer and a response that 
indicates completion of that submission. The modem must be v.34 
compatible.
    B. General format requirements.
    1. Database format. The FMC service contract database is 
structured from service contract data elements and the service 
contract terms formed by logical grouping of those elements.
    2. Transmission. On-line batch transmission of service contracts 
to the FMC computer is governed by the transaction sets contained in 
the Filing Guide. Service contract filings not complying with the 
regulations in this part or the formats and valid codes contained in 
the Filing Guide are subject to rejection.
    3. Adding new transaction data. Requests for major changes or 
additions to the transaction set format and/or data shall be 
submitted in writing to BTCL, with sufficient detail and reasons for 
each proposed change. A contact person and telephone number also 
should be provided in case of questions.
    (a) A proposed major change (other than a correction), such as 
to a transaction set, will require formal configuration management 
procedures and a minimum of thirty days' advance notice of the 
change in the Federal Register and the ``Service Contract System 
News'', available at system log-on, and by other established 
Commission communications procedures.
    (b) Minor changes will be entered into the system and published 
as soon as possible. Such minor changes include additions to any of 
the standard terminology published in appendix A to part 520.
    C. Hardware and software requirements.
    The basic equipment necessary to file service contracts is a 
personal computer (``PC''), a VT-100 emulation software package, and 
a modem. The transmitted filing session must be formatted to comply 
with the transaction sets. The transmission may be via the use of 
KERMIT or ZMODEM file transfer protocols after establishing a link 
for on-line batch filing with the FMC central site computer.
    The Commission will not make available to the public software 
packages for firms to use in formulating service contract filings. 
The Commission has released the Filing Guide (with transaction set) 
into the public domain so that qualified commercial firms can 
develop filing software for the general market. Firms which develop 
filing software, must, by appointment through the Commission's 
Office of Information Resources Management and payment of the fee 
set forth in Sec. 530.12, test their formatting of service contracts 
transaction set format by submission of that data to the FMC central 
site computer before they will be permitted to transmit any filings. 
The data must be submitted via on-line batch transmission over dial-
up telecommunications links using the required file transfer 
protocols. Testing will require submission of sample service 
contract filings to the FMC system, with an evaluation of the actual 
results of the attempted filings to ensure that the transaction set 
formats are properly employed and that the filing results are 
consistent with the filer's expectations. Organizations certified 
prior to May 1, 1999 for the batch filing of ``Essential Terms 
Publications'' (``ETs'') in the Commission's former ``Automated 
Tariff Filing Information System'' (``ATFI'') are not required to 
re-test their software but may if they so choose using the same 
procedure as for initial registrants.
    D. Registration, Log-on ID and Password.
    1. System identifications (``IDs'') for filing log-on and 
initial password are obtained by submitting the Service Contract 
Registration Form (Exhibit 1 to this part), along with the proper 
fee under Sec. 530.12 and other necessary documents, including 
delegation of authority, as prescribed by this part, to BTCL. A 
separate Service Contract Registration Form is required for each 
individual that will file service contracts with the FMC. However, 
each organization certified prior to May 1, 1999 to perform batch 
filing of ET publications in the Commission's former ``ATFI'' 
system, will be issued a new log-on ID and password for access to 
file service contracts.
    2. Log-on IDs and passwords may not be shared with or loaned to 
or used by any individual other than the individual registrant. The 
Commission reserves the right to disable any log-on ID that is 
shared with, loaned to or used by parties other than the registrant.
    3. Authority for organizational filing can be transferred by 
submitting an amended registration form requesting the assignment of 
a new log-on ID and password. The original log-on ID will be 
canceled when a replacement log-on ID is issued.
    E. Connecting to the Service Contract Filing System.
    If service contract filer equipment (hardware and software) is 
compatible with the configurations specified in this section and 
have been tested in accordance with Part II C. of this appendix, and 
the proper log-on ID and password have been obtained under this 
section, filing services are available to filers registered under 
this section, over commercial telecommunications using standard 
(v.34 compatible) asynchronous modems with data rates up to 28800 
baud. The dial-up procedures are set forth in the Filing Guide.
    F. Major menu selections.
    Proper connection will lead the filer to the ``Logo Menu,'' 
which allows selections by any filer for ``Organization Maint.,'' 
``Mailbox,'' ``Service Contract System News,'' ``Change Password,'' 
``Screen Setup,'' and ``Logout.'' Additionally, a registered filer 
can access ``Begin File Transfer'' to initiate the on-line batch 
filing of a service contract. Upon the selection of ``Begin File 
Transfer'' the filer will be presented the option to select KERMIT 
or ZMODEM and to commence the file transfer.
    G. Conformity checks.
    Certain service contract data submitted to the FMC for filing 
are screened for compliance with conformity checks, and certain data 
not automatically rejected by the conformity checks are flagged for

[[Page 71073]]

Commission examiner review. The conformity checks are syntax checks, 
validity checks and associative checks. The system will generally 
not accept service contracts which fail conformity checks. 
Commercially developed batch filing software can be designed to 
accomplish the same functionality. However, all proposed filings of 
service contracts must undergo the routine system conformity checks 
before they can be received into the database. Filers will be 
notified of automatic rejections at this stage by electronic mail, 
with a follow-up letter if the electronic mail has not been read 
within 10 days of dispatch. The conformity checks are:
    1. Syntax Checks. Service contracts will be checked for file 
integrity, proper data types, field lengths, and logical sequence 
according to the Filing Guide's transaction sets. Data not 
conforming to the data element format or type in the Filing Guide's 
DED and the sequence requirements of the transaction sets and 
segment definitions will result in rejections of submitted service 
contracts to include the possible rejection of an entire filing if 
form and format errors are extensive enough to preclude processing.
    2. Validity Checks. Certain data elements of filed service 
contracts will also be checked for data validity by type against the 
DED's published reference tables, such as amendment codes, amendment 
numbers and valid dates.
    3. Associative Checks. The system uses associative checks to 
identify logical conformity with established service contract filing 
rules. The following are some representative types of associative 
checks performed by the system.
    (a) Any initial service contract or amendment must have:
    (i) A valid organization number.
    (ii) No suspended carrier or object status.
    (iii) Appropriate filing authority.
    (iv) Filing date (system-assigned) equal to or less than the 
effective date.
    (v) Valid and appropriate filing/amendment codes.
    (vi) Valid and appropriate filing, effective, termination and 
expiration dates.
    (vii) When used, valid special case number and filing/amendment 
code ``S,'' with no other filing/amendment codes entered.
    (viii) Each service contract must have a new (unique to carrier/
conference/agreement) service contract number. The service contract 
number must be paired with a unique essential terms number and the 
pair must remain constant for all amendments and must be consistent 
between the filed service contracts and the published statement of 
essential terms.
    H. Filing/amendment codes.
    1. Codes. Filing/amendment codes must be valid Filing Guide 
codes and the effective, termination (if any) and expiration dates 
must match the corresponding dates published in the statement of 
essential terms.
    2. Multiple symbols. Filed service contracts frequently can be 
coded with more than one symbol. Accordingly, the field, ``Amendment 
Type,'' will allow up to three different, compatible symbols 
(Amendment codes and definitions are presented in the Filing Guide 
and the Standard Terminology Appendix to 46 CFR part 520).
    I. Control dates and history. 
    1. Filing date. The filing date is the date any service contract 
or amendment is processed by the system. Filers will have a filing 
date automatically assigned to all service contracts and amendments 
filed according to the start time of the file transfer, for file 
transfers that are successfully completed, U.S. Eastern Time Zone. 
Filers should plan the transmission of filing session files to allow 
for retransmission(s) starting during the same U.S. Eastern Time 
Zone date, in case the results of the initial transmission(s) are 
not successful.
    2. Effective date. The effective date is the date upon which a 
service contract or amendment is scheduled to go into effect by the 
filer. Specifically, a service contract or amendment becomes 
effective at 12:01 a.m. on the beginning of the effective date. The 
effective date of the corresponding statement of essential terms 
cannot be prior to the filing date of the service contract or 
amendment with the Commission.
    3. Expiration date. The expiration date is the last day, after 
which the entire service contract is no longer in effect.

Part III--Organization Record and Register

    A. Organization Record. The organization record is the master 
record for all service contract information in the system for a 
specific firm. Upon Commission acceptance of registration, a 
``shell'' organization record, specific to the requestor, is 
established and contains the organization number, organization name 
and organization type. The firm's authorized representative can then 
access the newly established organization record, using the special 
access log-on ID and password to file the address for the firm's 
home office, and complete the affiliations, d/b/a, and publisher 
lists as appropriate. To maximize security of the data, maintenance 
(editing) of the organization record will be permitted only to the 
individual in the firm holding the special access log-on ID and 
password for organization record maintenance.
    B. Service Contract Register. Each organization must create a 
service contract register (``register'') prior to the filing of any 
service contracts or amendments thereto (and including ``general 
rules'' filings). The register is a directory subordinate to which 
service contracts and their amendments are filed. Each organization 
may create more than one register (e.g., according to location 
groups). Each register must include a record reflecting the filer's 
name, organization number and status (e.g. ocean common carrier/
conference) which identifies the filer. At the option of the filer, 
the register may also include the filer's service contract rules, 
i.e. the stated terms and conditions set by the carrier, agreement, 
or conference party to a service contract which govern the 
application of service contract rates, charges and other matters.

Part IV--Service Contracts

    As required by Sec. 530.9, each service contract filed with the 
Commission shall include the following:
    A. Service Contract Title. The filer's title of the service 
contract (generally descriptive of the commodity and/or service).
    B. SC Number (Service contract number). The ``SC Number'' is 
defined by the filer and shall be entered in the appropriate field.
    C. ET Number (statement of essential terms number). The ``ET 
Number'' is defined by the filer and shall be entered in the 
appropriate field. (Note: Service contracts must have a new (unique 
to carrier/conference/agreement) service contract number for the 
initial filing. The service contract number must be paired with a 
unique essential terms number and the pair must remain constant for 
all amendments and must be consistent between the filed service 
contracts and the published essential terms documents.)
    D. Amendment Number. Where feasible, service contracts should be 
amended by amending only the affected specific term(s) or subterms. 
Each time any part of a service contract is amended, the filer shall 
assign a consecutive amendment number (up to three digits), 
beginning with the number ``1.'' (The amendment number field must be 
``0'' or void for the initial filing). Each time any part of the 
service contract is amended, the ``Filing Date'' will be the date of 
filing of the amendment.
    E. FMC File Number. The FMC File Numbers will be system-assigned 
as initial service contract filings are received and processed. The 
FMC File Numbers will be assigned sequentially and will start at a 
number designated by the FMC. The FMC File Number will be provided 
to filers in the acknowledgment message (via electronic mail) for 
filings.
    F. Effective Date. The service contract must indicate the 
effective date and the expiration date governing the duration of the 
contract. The duration must also be set forth in Term No. 8 where 
the duration of the contract shall be stated as a specific fixed 
time period, with a beginning date (effective date) and an ending 
date (expiration date).
    G. Amendment Codes. All amendment codes listed in the Filing 
Guide, except ``G'' and ``S'', may be used in any combination, with 
up to three amendment codes for amendments.
    H. Special case symbol and number. The ``S'' amendment code must 
be used singly, and in conjunction with a validated special case 
number for corrections to service contracts.
    I. Filing Date. The filing date is automatically set by the 
system whenever a service contract or amendment thereto is filed.
    J. Contract terms (``terms''). Terms Nos. 1 to 11 shall address 
the subjects and bear the terms'' titles for the respective numbers 
exactly as provided in this section. (Note: If a subject is not 
included, such as No. 12, the number must be listed with the 
appropriate title and the designation ``NA.'' All terms may be 
subdivided into subterms to facilitate amendment).
    1. Origin (No. 1). ``Origin'' includes the origin port range(s) in 
the case of port-to-port movements, and the origin geographic area(s) 
in the case of through intermodal movements, except that the origin and 
destination of cargo moving under the contract need not be stated in 
the form of ``port ranges'' or ``geographic

[[Page 71074]]

areas,'' but shall reflect the actual locations agreed to by the 
contract parties. Service contracts shall only employ locations 
(points) that are valid, published locations in the National Imagery 
and Mapping Agency (``NIMA'') gazetteer and ports published or approved 
for publication in the World Port Index (Pub. No. 150).
    2. Destination (No. 2). ``Destination'' includes the destination 
port range(s) in the case of port-to-port movements, and the 
destination geographic area(s) in the case of through intermodal 
movements, except that the origin and destination of cargo moving under 
the contract need not be stated in the form of ``port ranges'' or 
``geographic areas,'' but shall reflect the actual locations agreed to 
by the contract parties. Service contracts shall employ only locations 
(points) that are valid, published locations in the National Imagery 
and Mapping Agency (``NIMA'') gazetteer and ports published or approved 
for publication in the World Port Index (Pub. No. 150).
    3. Commodities (No. 3). Term No. 3 shall include commodities 
covered by the service contract. For each commodity filed in this term, 
a separate formatted commodity index entry is required. To the maximum 
extent possible, service contracts should use the U.S. Harmonized 
Tariff Schedule (``US HTS'') for commodity coding and associated 
terminology.
    4. Minimum quantity or portion (No. 4). Term No. 4 shall address 
the minimum quantity or portion of cargo and/or amount of freight 
revenue necessary to obtain the rate or rate schedule(s). The minimum 
quantity or cargo committed by the shipper may be expressed as a fixed 
percentage of the shipper's cargo.
    5. Service commitments (No. 5). Term No. 5 shall address the 
service commitments of the carrier, conference or specific members of a 
conference, agreement or specific members of an agreement, such as 
assured space, transit time, port rotation or similar service features.
    6. Rates or rate schedule(s) (No. 6). Term No. 6 shall contain the 
contract rates or rate schedules, including any additional or other 
charges (e.g., general rate increases, surcharges, terminal handling 
charges, etc.) that apply, and any and all conditions and terms of 
service or operation or concessions which in any way affect such rates 
or charges.
    7. Liquidated damages for non-performance, if any (No. 7). Term No. 
7 shall include liquidated damages for non-performance, if there is 
such provided for in the service contract.
    8. Duration of the contract (No. 8). The duration of the contract 
shall be stated as a specific, fixed time period, with a beginning date 
(effective date) and ending date (expiration date).
    9. Signature date, contract parties, signatories and affiliates, 
if any (No. 9). The identification of contract parties must be 
included as follows:
    (a) the legal names and business addresses of the contract 
parties. (Note: if the service contract is entered into by an 
agreement or conference, this shall include the corresponding 
agreement number on file with the Commission);
    (b) the legal names, titles, and addresses of representatives 
signing the contract for the parties and the date the contract was 
signed; and
    (c) the legal name(s) and business address(es) of affiliates 
entitled to access the contract, if any. Subsequent references in 
the contract to the contract parties shall be consistent with the 
first reference (e.g., (exact name), ``carrier,'' ``shipper,'' or 
``association, etc.). (Note: This term must name every affiliate of 
each contract party named under Sec. 530.9(d)(4) entitled to receive 
or authorized to offer services under the contract, except that in 
the case of a contract entered into by all of the parties of a 
conference, agreement or shippers' association, individual members 
need not be named unless the contract includes or excludes specific 
members.)
    10. Shipper's Status Certification and Affiliates, if any. (No. 
10). The shipper signatory(ies) must certify its status and that of 
any affiliates in accordance with Sec. 530.7 of this part.
    11. Records (No. 11). Term No. 11 must contain:
    (a) A description of the shipment records which will be 
maintained to support the contract; and
    (b) The address, title, and telephone number of the person who 
will respond to a request by making the original signed service 
contract and shipment records available to the Commission for 
inspection under Sec. 530.17 of this part.
    12. Other Provisions of the Contract (No. 100-999). Any term of 
a service contract not otherwise specifically provided for in this 
section shall be entered after the above terms and in numerical 
order, beginning with No. 100.

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Exhibit 1--Instructions for Service Contract Registration [Form FMC-83]

Instructions

    Line 1. Registration. Indicate whether this is the initial 
(first time) registration or an amendment to an existing Service 
Contract Registration.
    Line 2. Registrant. This must be the full legal name of the firm 
or individual registering for the FMC's Service Contract Filing 
System and any trade names. The registrant name should match the 
corporate charter or business license, conference membership, etc. 
It should be noted that the registrant name cannot be changed by the 
registrant after the registration without submission of an amended 
registration fee.
    Line 3. Address of Home Office. The complete street address 
should be shown in addition to the post office box. Also, provide 
the registrant's Federal Taxpayer Identification Number (``TIN'' 
Number).
    Line 4. Billing Address if Different. This should be completed 
if the billing address differs from the home office address. Show 
the firm name (if different from the registrant), street address and 
post office box (if applicable).
    Line 5. Organization Number. Complete if known. (Regulated 
Persons Index or ``RPI'' number.)
    Line 6. Registrant Type. Indicate the type of organization. A 
registrant cannot be more than one type. This data cannot be changed 
by the registrant after registration without submission of an 
amended registration form.
    Line 7. Permissions Requested and Person Granted These 
Permissions.
    Maintenance of Organization Record--The person listed in line 8 
is authorized to access the organization maintenance functions 
(i.e., modify organization information, assign publishers, 
affiliations, and d/b/as).
    Service Contract Filing--The person listed in line 8 is 
authorized only to submit filings.
    Line 8. Certified for Batch Filing. Indicate whether the 
registrant was registered with software certified to perform batch 
filings prior to May 1, 1999. Otherwise, the registrant must first 
be certified for batch filing as outlined in 46 CFR part 530. After 
certification, the registrant can submit an amended registration 
form to request permission for a person in their organization to 
perform the batch filing. If the person already has an existing log-
on, the log-on (not the password) should be listed on the requesting 
form. Also, the certification date received from the FMC should be 
listed on the requesting form.

    By the Commission.
Joseph C. Polking,
Secretary.
[FR Doc. 98-33894 Filed 12-22-98; 8:45 am]
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