[Federal Register Volume 74, Number 207 (Wednesday, October 28, 2009)]
[Notices]
[Pages 55553-55554]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-25877]


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

FEDERAL MARITIME COMMISSION

[Docket No. 09-07]


World Chance Logistics (Hong Kong), Ltd. and Yu, Chi Shing, 
a.k.a. Johnny Yu--Possible Violations of Section 10 of the Shipping Act 
of 1984; Order of Investigation and Hearing

    World Chance Logistics (Hong Kong), Ltd., (``World Chance'') is a 
foreign based tariffed and bonded non-vessel-operating common carrier 
(``NVOCC'') registered with the Federal Maritime Commission 
(``Commission'') as Org. No. 018712. World Chance is located at 
8 Des Voeux Road West, Rms. 1401-1402, Hong Kong, China. Yu, 
Chi Shing, a.k.a. Johnny Yu (``Mr. Yu'') is the company's sole 
shareholder and chief executive officer.
    Based on evidence available to the Commission, it appears that 
World Chance and Mr. Yu may have permitted unrelated shippers of 
pyrotechnics to have direct access to the rates in World Chance's 
service contracts. Moreover, it also appears that World Chance and Mr. 
Yu may have provided rates and charges to pyrotechnics shippers which 
were not in accordance with the rates and charges contained in World 
Chance's tariff.
    Additionally, in 2005, Mr. Yu incorporated Fireworks Logistics 
Association Ltd. (``FLA'') as a ``private limited company'' in Hong 
Kong. FLA, however, does not appear to have a separate legal identity, 
and lists World Chance's Hong Kong address as its own and uses World 
Chance's telephone and fax numbers and its email account. From the 
evidence developed, it appears that by entering into service contracts 
in FLA's name, World Chance and Mr. Yu may have utilized FLA as an 
unfair device or means to obtain lower rates and to receive volume 
incentive payments not otherwise applicable.
    Section 10(a)(1) of the 1984 Act, 46 U.S.C. 41102(a) prohibits any 
person from knowingly and willfully obtaining or attempting to obtain 
ocean transportation of property at less than the otherwise applicable 
rates or charges ``by means of false billing, false classification, 
false weighing, false report of weight, false measurement, or any other 
unjust or unfair device or means * * * .'' Section 10(b)(1) of the 1984 
Act, 46 U.S.C. 41104(1), prohibits a carrier from allowing any person 
to obtain transportation of property at less than the rates and charges 
in the carrier's tariff or filed contracts ``by means of false billing, 
false classification * * * or by any other unjust or unfair device or 
means.'' Section 10(b)(2) of the 1984 Act, 46 U.S.C. 41104(2), 
prohibits providing service in the liner trades ``not in accordance 
with'' the rates and charges published in a tariff or filed in an NVOCC 
service arrangement.
    Pursuant to section 13 of the 1984 Act, 46 U.S.C. 41109, a party is 
subject to a civil penalty not exceeding $5,000 for each violation 
unless the violation was willfully and knowingly committed, in which 
case the amount of the civil penalty may not exceed $25,000 for each 
violation.\1\
---------------------------------------------------------------------------

    \1\ Effective July 31, 2009, the maximum levels of civil 
penalties were adjusted for inflation to $8,000 and $40,000, 
respectively. For the period of violations discussed in this 
memorandum prior to July 31, 2009, the maximum level of civil 
penalties was $6,000 and $30,000, respectively.
---------------------------------------------------------------------------

    Now therefore, it is ordered, that pursuant to sections 10 and 11 
of the 1984 Act, 46 U.S.C. 41102(a), and 41104(1) and (2), an 
investigation is instituted to determine:
    (1) Whether World Chance Logistics (Hong Kong), Ltd. and/or Yu, Chi 
Shing, a.k.a. Johnny Yu, violated section 10(a)(1) of the 1984 Act, 46 
U.S.C. 41102(a), by utilizing Fireworks Logistics Association, Ltd. as 
an unfair device or means to obtain lower rates and receive volume 
incentive payments not otherwise applicable;
    (2) Whether World Chance Logistics (Hong Kong), Ltd. and/or Yu, Chi 
Shing, a.k.a. Johnny Yu, violated section 10(b)(1) of the 1984 Act, 46 
U.S.C. 41104(1), by allowing persons to obtain transportation of 
property at less than the rates and charges in the carrier's tariff or 
filed contracts ``by means of false billing, false classification * * * 
or by any other unjust or unfair device or means;''
    (3) Whether World Chance Logistics (Hong Kong), Ltd. and/or Yu, Chi 
Shing,

[[Page 55554]]

a.k.a. Johnny Yu, violated section 10(b)(2) of the 1984 Act. 46 U.S.C. 
41104(2), by providing service in the liner trades ``not in accordance 
with'' the rates and charges published in a tariff or filed in an NVOCC 
service arrangement;
    (4) Whether, in the event violations of section 10 of the 1984 Act 
are found, civil penalties should be assessed against World Chance 
Logistics (Hong Kong), Ltd. and/or Yu, Chi Shing, a.k.a. Johnny Yu and, 
if so, the amount of the penalties to be assessed; and
    (5) Whether, in the event violations are found, appropriate cease 
and desist orders should be issued against World Chance Logistics (Hong 
Kong), Ltd. and/or Yu, Chi Shing, a.k.a. Johnny Yu.
    It is further ordered, that a public hearing be held in this 
proceeding and that this matter be assigned for hearing before an 
Administrative Law Judge of the Commission's Office of Administrative 
Law Judges at a date and place to be hereafter determined by the 
Administrative Law Judge in compliance with Rule 61 of the Commission's 
Rules of Practice and Procedure, 46 CFR 502.61. The hearing shall 
include oral testimony and cross-examination in the discretion of the 
presiding Administrative Law Judge only after consideration has been 
given by the parties and the presiding Administrative Law Judge to the 
use of alternative forms of dispute resolution, and upon a proper 
showing that there are genuine issues of material fact that cannot be 
resolved on the basis of sworn statements, affidavits, depositions, or 
other documents or that the nature of the matters in issue is such that 
an oral hearing and cross-examination are necessary for the development 
of an adequate record;
    It is further ordered, that World Chance Logistics (Hong Kong), 
Ltd. and Yu, Chi Shing, a.k.a. Johnny Yu are designated as Respondents 
in this proceeding;
    It is further ordered, that the Commission's Bureau of Enforcement 
is designated a party to this proceeding;
    It is further ordered, that notice of this Order be published in 
the Federal Register, and a copy be served on the parties of record;
    It is further ordered, that other persons having an interest in 
participating in this proceeding may file petitions for leave to 
intervene in accordance with Rule 72 of the Commission's Rules of 
Practice and Procedure, 46 CFR 502.72;
    It is further ordered, that all further notices, orders, and/or 
decisions issued by or on behalf of the Commission in this proceeding, 
including notice of the time and place of hearing or prehearing 
conference, shall be served on parties of record;
    It is further ordered, that all documents submitted by any party of 
record in this proceeding shall be directed to the Secretary, Federal 
Maritime Commission, Washington, DC 20573, in accordance with Rule 118 
of the Commission's Rules of Practice and Procedure, 46 CFR 502.118, 
and shall be served on parties of record; and
    It is further ordered, that in accordance with Rule 61 of the 
Commission's Rules of Practice and Procedure, the initial decision of 
the Administrative Law Judge shall be issued by October 22, 2010 and 
the final decision of the Commission shall be issued by February 22, 
2011.

    By the Commission.
Karen V. Gregory,
Secretary.
[FR Doc. E9-25877 Filed 10-27-09; 8:45 am]
BILLING CODE P