[Federal Register Volume 77, Number 111 (Friday, June 8, 2012)]
[Rules and Regulations]
[Pages 33971-33972]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-14005]


=======================================================================
-----------------------------------------------------------------------

FEDERAL MARITIME COMMISSION

46 CFR Part 532

[Docket No. 11-22]
RIN 3072-AC38


Non-Vessel-Operating Common Carriers Negotiated Rate 
Arrangements; Tariff Filing Exemption

AGENCY: Federal Maritime Commission.

ACTION: Direct final rule; request for comments.

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

SUMMARY: In this direct final rule, the Federal Maritime Commission is 
revising the regulations which govern negotiated rate arrangements. The 
rule eliminates some recordkeeping requirements to make them less 
burdensome.

DATES: This rule is effective September 10, 2012 without further 
action, unless significant adverse comment is received by August 10, 
2012. If adverse comment is received, the Federal Maritime Commission 
will publish a timely withdrawal of the rule in the Federal Register.

ADDRESSES: Submit comments to: Karen V. Gregory, Secretary, Federal 
Maritime Commission, 800 North Capitol Street NW., Washington, DC 
20573-0001, or email non-confidential comments to: [email protected] 
(email comments as attachments preferably in Microsoft Word or PDF).

FOR FURTHER INFORMATION CONTACT: Karen V. Gregory, Secretary, Federal 
Maritime Commission, 800 N. Capitol Street NW., Washington, DC 20573-
0001, (202) 523-5725, Fax (202) 523-0014, Email: [email protected]. 
Rebecca A. Fenneman, General Counsel, Federal Maritime Commission, 800 
N. Capitol Street NW., Washington, DC 20573-0001, (202) 523-5740, Fax 
(202) 523-5738, Email: [email protected].

SUPPLEMENTARY INFORMATION:

Background

    On March 2, 2011, the Federal Maritime Commission (Commission) 
issued a final rule, promulgating 46 CFR part 532, regulations which 
govern the exemption of licensed NVOCCs from their tariff rate 
publication obligations when entering into a ``negotiated rate 
arrangement'' (NRA). Commission Docket No. 10-03, 76 FR 11351, 
effective April 18, 2011.\1\ On December 20, 2011, the Commission 
issued a Notice of Inquiry (NOI), Commission Docket No. 11-22, seeking 
comments on ways to make NRAs more useful, including the possible 
extension of the ability to offer NRAs to foreign-based NVOCCs not 
licensed by the Commission. December 27, 2011 at 76 FR 80866. The 
record in Commission Docket No. 10-03 was incorporated into Docket No. 
11-22. Comments were due by March 26, 2012. The Commission received 23 
comments. Of those 23 comments, 16 came from ocean transportation 
intermediaries; 4 from U.S. trade associations; and 3 from foreign 
trade associations. A number of the commenters suggested eliminating 
some of the technical requirements of the rule. In particular, 
commenters suggested eliminating the requirement for the shipper's 
title and address in their written assent to rates; eliminating the 
requirement that the bill of lading include a notice that a shipment is 
moving pursuant to an NRA; and eliminating the requirement that an 
NVOCC retain all associated records and written communications 
pertaining to an NRA. After consideration of these specific 
suggestions, the Commission has determined to adopt these suggestions 
and revise the regulation governing NRAs through a direct final

[[Page 33972]]

rule. In a direct final rulemaking, an agency publishes a direct final 
rule in the Federal Register along with a statement that the rule will 
become effective unless the agency receives significant adverse comment 
within a specified period. The Commission is using a direct final rule 
for this rulemaking because it expects the rule to be noncontroversial 
and because the rule removes technical requirements and imposes no 
requirements or costs. The Commission will continue to consider other 
suggestions made by commenters and may further modify part 532 at a 
future date.
---------------------------------------------------------------------------

    \1\ On April 5, 2011, the Commission published a correction to 
its final rule clarifying that NRAs must be agreed to prior to 
receipt of the cargo and removing the requirement that NVOCCs 
indicate their intention to move cargo under NRAs on their Form FMC-
1 on file with the Commission. 76 FR 19706.
---------------------------------------------------------------------------

    In accordance with the Paperwork Reduction Act of 1995, as amended, 
agencies are required to display a currently valid control number. The 
valid control number for this collection of information is 3072-0071. 
Revised estimated burdens of collection of information authorized by 
this direct final rule have been submitted to the Office of Management 
and Budget for review under section 3504(h) of the Paperwork Reduction 
Act of 1995, as amended. The estimated annual burden for the estimated 
3548 annual respondents is $340,921. Send comments regarding the burden 
estimate or any other aspect of this collection of information, 
including suggestions for reducing this burden, to Ronald D. Murphy, 
Managing Director, Federal Maritime Commission, 800 North Capitol 
Street NW., Washington, DC 20573, email: [email protected], or fax: (202) 
523-3646; and to the Office of Information and Regulatory Affairs, 
Office of Management and Budget, Attention: Desk Officer for Federal 
Maritime Commission, 17th Street and Pennsylvania Avenue NW., 
Washington, DC 20503, email: [email protected], or fax: (202) 
395-5806.

List of Subjects in 46 CFR Part 532

    Exports, Non-vessel-operating common carriers, Ocean transportation 
intermediaries.

    Accordingly, the Federal Maritime Commission amends 46 CFR part 532 
as follows:

PART 532--NVOCC NEGOTIATED RATE ARRANGEMENTS

0
1. The authority citation for part 532 continues to read as follows:

    Authority: 46 U.S.C. 40103.


0
2. In Sec.  532.5, revise paragraph (b) to read as follows:


Sec.  532.5  Requirements for NVOCC negotiated rate agreements.

* * * * *
    (b) Contain the names of the parties and the names of the 
representatives agreeing to the NRA;
* * * * *

0
3. Revise Sec.  532.6 to read as follows:


Sec.  532.6  Notices.

    An NVOCC wishing to invoke an exemption pursuant to this part must 
indicate that intention to the Commission and the public by a prominent 
notice in its rules tariff.


0
4. Revise Sec.  532.7 to read as follows:


Sec.  532.7  Recordkeeping and audit.

    (a) An NVOCC invoking an exemption pursuant to this part must 
maintain original NRAs in an organized, readily accessible or 
retrievable manner for 5 years from the completion date of performance 
of the NRA by an NVOCC, in a format easily produced to the Commission.
    (b) NRAs are subject to inspection and reproduction requests under 
Sec.  515.31(g) of this chapter. An NVOCC shall produce the requested 
NRAs promptly in response to a Commission request. All records produced 
must be in English or be accompanied by a certified English 
translation.
    (c) Failure to keep or timely produce original NRAs will disqualify 
an NVOCC from the operation of the exemption provided pursuant to this 
part, regardless of whether it has been invoked by notice as set forth 
above, and may result in a Commission finding of a violation of 46 
U.S.C. 41104(1), 41104(2)(A) or other acts prohibited by the Shipping 
Act.

    By the Commission.
Rachel E. Dickon,
 Assistant Secretary.
[FR Doc. 2012-14005 Filed 6-7-12; 8:45 am]
BILLING CODE 6730-01-P