[Federal Register Volume 64, Number 34 (Monday, February 22, 1999)]
[Notices]
[Pages 8571-8572]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-4233]


-----------------------------------------------------------------------

FEDERAL MARITIME COMMISSION

[Docket No. 99-02]


Pacific Champion Express Co., Ltd.--Possible Violations of 
Section 10(b)(1) of the Shipping Act of 1984; Order of Investigation 
and Hearing

    Pacific Champion Express Co., Ltd. (``Pacific Champion''), also 
doing business as PCS Line, as a tariffed and bonded non-vessel-
operating common carrier (``NVOCC'') located at 5th Floor, No. 7, 
Section 2 Nan King East Road, Taipei, Taiwan. Pacific Champion holds 
itself out as an NVOCC pursuant to its ATFI tariff FMC No. 011283-002, 
effective July 29, 1993. Pacific Champion currently maintains an NVOCC 
bond, No. 8941012, in the amount of $50,000 with the Washington 
International Insurance Company, located in Schaumburg, Illinois.
    Pacific Champion was established in 1981 by Roger Tsai who is also 
Managing Director of the company and owns 63% of the company stock. 
Pacific Champion is a private, limited stock company, registered in 
Taiwan on July 16, 1981 under business registration number 12340449. 
Other principals in the company include Frances Huan, Manager, and 
Michael Lin, Administrative Manager.
    Section 10(b)(1), 46 U.S.C. app. 1709(b)(1), prohibits a common 
carrier from charging, collecting or receiving greater, less or 
different compensation for the transportation of property than the 
rates and charges set forth in its tariff. It appears that Pacific 
Champion did not charge the rates set forth in its tariff on at least 
thirty-six (36) shipments for the time period September 30, 1997 to 
February 10, 1998. For these same shipments, Pacific Champion also 
failed to charge a $45 documentation fee required per its tariff rules. 
Furthermore, for nine of the 36 shipments, Pacific Champion failed to 
charge the minimum bill of lading charge per its tariff rules.
    It also appears that Pacific Champion continues to provide service 
as an NVOCC under a tariff which contains only three rates, one each 
for Cargo NOS, regular service; Cargo NOS, premium service; and Cargo 
NOS, superior service. Therefore, unless all shipments have been rated 
at one of these Cargo NOS rates, Pacific Champion may have continued to 
violate section 10(b)(1) subsequent to February 10, 1998.
    Under section 13 of the 1984 Act, 46 U.S.C. app. 1712, a person is 
subject to a civil penalty of not more than $25,000 for each violation 
knowingly and willfully committed, and not more than

[[Page 8572]]

$5,000 for other violations.\1\ Section 13 further provides that a 
common carrier's tariff may be suspended for violations of section 
10(b)(1) for a period not to exceed one year, while section 23 of the 
1984 Act, 46 U.S.C. app. 1721 provides for a similar suspension in the 
case of violations of section 10(a)(1) of the 1984 Act.
---------------------------------------------------------------------------

    \1\ The maximum penalties are raised by 10 percent for 
violations occurring after November 7, 1996. See Inflation 
Adjustment of Civil Monetary Penalties, 27 S.R.R. 809 (1996).
---------------------------------------------------------------------------

    Now therefore, it is ordered, That pursuant to sections 10, 11, 13, 
and 23 of the 1984 Act, 46 U.S.C. app. 1709, 1710, 1712 and 1721, an 
investigation is instituted to determine:
    (1) Whether Pacific Champion Express Co., Ltd., violated, and 
continues to violate, section 10(b)(1) of the 1984 Act by charging, 
demanding, collecting or receiving less or different compensation for 
the transportation of property than the rates and charges shown in its 
NVOCC tariff;
    (2) Whether, in the event violations of section 10(b)(1) of the 
1984 Act are found, civil penalties should be assessed against Pacific 
Champion Express Co., Ltd., and, if so, the amount of penalties to be 
assessed;
    (3) Whether, in the event violations of section 10(b)(1) of the 
1984 Act are found, the tariff of Pacific Champion Express Co., Ltd., 
should be suspended; and
    (4) Whether, in the event violations are found, an appropriate 
cease and desist order should be issued.
    It is further ordered, That a public hearing be held in this 
proceeding and that this matter be assigned for hearing before an 
Administrative Law Judge of the Commission's Office of Administrative 
Law Judges in compliance with Rule 61 of the Commission's Rules of 
Practice and Procedure, 46 CFR 502.61. The hearing shall include oral 
testimony and cross-examination in the discretion of the Presiding 
Administrative Law Judge only after consideration has been given by the 
parties and the Presiding Administrative Law Judge to the use of 
alternative forms of dispute resolution, and upon a proper showing that 
there are genuine issues of material fact that cannot be resolved on 
the basis of sworn statements, affidavits, depositions, or other 
documents or that the nature of the matters in issue is such that an 
oral hearing and cross-examination are necessary for the development of 
an adequate record.
    It is further ordered, That Pacific Champion Express Co., Ltd. is 
designated as Respondent in this proceeding.
    It is further ordered, That the Commission's Bureau of Enforcement 
is designated a party to this proceeding;
    It is further ordered, That notice of this Order be published in 
the Federal Register, and a copy be served on parties of record;
    It is further ordered, That other persons having an interest in 
participating in this proceeding may file petitions for leave to 
intervene in accordance with Rule 72 of the Commission's Rules of 
Practice and Procedure, 46 CFR 502.72;
    It is further ordered, That all further notices, orders and/or 
decisions issued by or on behalf of the Commission in this proceeding, 
including notice of the time and place of hearing or prehearing 
conference, shall be served on all parties of record;
    It is further ordered, That all documents submitted by any party of 
record in this proceeding shall be directed to the Secretary, Federal 
Maritime Commission, Washington, DC 20573, in accordance with Rule 118 
of the Commission's Rules of Practice and Procedure, 46 CFR 502.118, 
and shall be served on all parties of record; and
    It is further ordered, That in accordance with Rule 61 of the 
Commission's Rules of Practice and Procedure, the initial decision of 
the Administrative Law Judge shall be issued by February 16, 2000 and 
the final decision of the Commission shall be issued by June 15, 2000.

    By the Commission.
Bryant L. VanBrankle,
Secretary.
[FR Doc. 99-4233 Filed 2-19-99; 8:45 am]
BILLING CODE 6730-01-M