Rule2023-27783
Carrier Automated Tariffs
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
January 2, 2024
Effective
February 1, 2024
Issuing agencies
Federal Maritime Commission
Abstract
The Federal Maritime Commission (Commission) amends its regulations governing Carrier Automated Tariffs. The final rule removes the option for common carriers to charge a fee to access their tariff; allow non-vessel-operating common carriers (NVOCCs) to cross-reference certain aspects of other carriers' terms in their tariffs; clarify the ability for NVOCCs to reflect increases in certain charges passed- through by other entities without notice; revise regulations to specify permissible relationships between NVOCCs for the co-loading of cargo, and makes other miscellaneous updates and clarifications to the regulation, including removing outdated citations.
Full Text
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[Federal Register Volume 89, Number 1 (Tuesday, January 2, 2024)]
[Rules and Regulations]
[Pages 25-33]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-27783]
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FEDERAL MARITIME COMMISSION
46 CFR Part 520
[Docket No. FMC-2022-0067]
RIN 3072-AC86
Carrier Automated Tariffs
AGENCY: Federal Maritime Commission.
ACTION: Final rule.
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SUMMARY: The Federal Maritime Commission (Commission) amends its
regulations governing Carrier Automated Tariffs. The final rule removes
the option for common carriers to charge a fee to access their tariff;
allow non-vessel-operating common carriers (NVOCCs) to cross-reference
certain aspects of other carriers' terms in their tariffs; clarify the
ability for NVOCCs to reflect increases in certain charges passed-
through by other entities without notice; revise regulations to specify
permissible relationships between NVOCCs for the co-loading of cargo,
and makes other miscellaneous updates and clarifications to the
regulation, including removing outdated citations.
DATES: This final rule is effective on February 1, 2024.
ADDRESSES: You may use the Federal eRulemaking Portal at
<a href="http://www.regulations.gov">www.regulations.gov</a> to view background documents or comments received
in Docket No. FMC-2022-0067.
FOR FURTHER INFORMATION CONTACT: Amy Strauss, Acting Secretary; Phone:
(202) 523-5725; Email: <a href="/cdn-cgi/l/email-protection#deadbbbdacbbaabfaca79eb8b3bdf0b9b1a8"><span class="__cf_email__" data-cfemail="c6b5a3a5b4a3b2a7b4bf86a0aba5e8a1a9b0">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Discussion
On May 10, 2022, the Commission issued a Notice of Proposed
Rulemaking (NPRM) seeking comment on proposed changes to Commission
regulations in 46 CFR part 520.\1\ In response to the NPRM, the
Commission received ten sets of comments from interested parties: The
National Customs Brokers and Forwarders Association of America, Inc
(NCBFAA); New York New Jersey Foreign Freight Forwarders & Brokers
Association, Inc. (NYNJFFF&BA); Charles E. Schmidt; Kintetsu World
Express (U.S.A.), Inc., an NVOCC; Yang Ming Marine Transport Corp., a
vessel-operating common carrier (VOCC); Mohawk Global, an NVOCC; UWL,
an NVOCC; C.H. Powell, an NVOCC; APL Logistics, Ltd., an NVOCC; and
Ascent Global Logistics, an NVOCC. These comments are addressed in the
discussion that follows.
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\1\ Notice of Proposed Rulemaking--Carrier Automated Tariffs, 87
FR 27971 (May 10, 2022). Prior to the publication of the May 2022
proposal, the Commission published an Advance Notice of Proposed
Rulemaking seeking input on how to revise its tariff regulations to
help address the inconsistent manner in which carriers were
interpreting and applying these regulations. See Advance Notice of
Proposed Rulemaking (ANPRM)--Carrier Automated Tariffs, 86 FR 18240
(April 8, 2021).
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A. Tariff Access Fees
With one exception, commenters that addressed the proposed rule
requiring common carriers to provide free access to their tariff
systems supported the rule. Kintetsu World Express favored continuing
to allow a fee to be assessed, asserting that tariff publishers that
currently charge an access fee to the public will likely attempt to
recover lost revenue from their common carrier customer if they can no
longer charge a third party for tariff access. Kintetsu at 2. See also
NYNJFF&BA at 2 (noting that carriers who use third party providers will
most likely assess a fee to cover cost of access to their service). The
Commission considered Kintetsu's concern that the proposed rule may
lead to higher fees from its tariff publisher because the tariff
publisher can no longer charge a third party for access. However, the
Commission is not persuaded by Kintetsu's concern. Carriers have been
required to publish tariffs for decades. See 46 U.S.C. 40501. Some
carriers choose to publish these tariffs on their own website, and some
choose to use a tariff publisher--and in Kintetsu's case, it decided
that the best way to comply with the Commission's requirements was to
pay a tariff publisher.\2\ Kintetsu did not provide information about
what it would cost to publish the tariffs on Kintetsu's own website \3\
or a comparison of how much more Kintetsu would pay a tariff publisher
if the tariff publisher could not charge a fee for access. Further,
Kintetsu's concerns were not supported by similar concerns from NCBFAA
or NYNJFFF&BA, entities that represent many similar NVOCCs. Based on
this record, the Commission is not persuaded by Kintetsu's concern and
maintains its position that it is reasonable to not charge a fee for
tariff
[[Page 26]]
access. The Commission continues to believe that cost barriers to
public tariff access are contrary to the goal of ensuring the
availability of shipping information, and advances in technology since
the regulation was implemented over two decades ago mean that free
tariff access is now reasonable. Accordingly, the Commission amends its
regulations to remove the option to charge a fee for tariff access
currently found at 46 CFR 520.9(e)(3).
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\2\ It appears that the benefits of using a tariff publisher go
beyond simply providing a website for publication as tariff
publishers advertise expert help in complying with Commission
regulations and cost efficiency from outsourcing for that expertise.
Thus, the decision to use a tariff publisher may include more
considerations than simply the cheapest way to post tariffs
publicly.
\3\ Kintetsu does have a public website that appears to be
maintained and up to date, as there are articles from August 2023.
See <a href="https://www.kwe.com/">https://www.kwe.com/</a> (last accessed August 16, 2023).
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B. Cross-Referencing Tariffs
With respect to its proposal regarding the cross-referencing of
tariffs that would be part of 46 CFR 520.7(a)(3)(iv), commenters
NYNJFF&BA; NCBFAA; C.H. Powell; Ascent Global Logistics; and Mohawk
Global expressed concern with allowing an NVOCC to cross-reference an
ocean common carrier tariff in its own tariff for the purpose of
charging its shipper the ocean common carrier's surcharges and
assessorial charges. These concerns centered on two main issues. First,
the asserted burden placed on the NVOCC to list in its tariff all named
VOCC surcharges and provide links to those VOCC tariffs would be too
great. Second, NVOCC commenters expressed an unwillingness to disclose
to their shippers the identities of the VOCCs they use. See NYNJFF&BA
at 2-3; NCBFAA at 2-3; C.H. Powell at 2; Ascent Global Logistics at 1;
and Mohawk Global at 4-5.
The Commission addresses these comments by clarifying that under
the new Sec. 520.7(a)(3)(iv), when an NVOCC cross-references a VOCC
tariff, the requirement to list the charges which may be passed through
is satisfied by publishing in the NVOCC tariff a list of names which
may encompass a category of charges--for example, a ``Bunker
Surcharge'' may include Low Sulphur Fuel Charges and Fuel Recovery
Surcharges. In addition, the NVOCC tariff need only reference that
these charges may be assessed at cost per the underlying VOCC's
governing tariff, rather than cite a specific VOCC name and/or tariff.
To ensure the clarity of the filing requirement, the Commission has
revised the wording of the new rule to state that categories of charges
may be listed in the NVOCC's tariff.
The Commission also notes the comment by NYNJFF&BA that shipper
transparency would be served by including a statement on a Negotiated
Rate Arrangement (NRA) quotation, or in the NVOCC Rules tariff that
verification of pass-through charges can be provided upon request.
NYNJFF&BA at 3. While not in the scope of this rulemaking, the
Commission nonetheless encourages NVOCCs to implement this practice as
a means of providing confirmation of the type and amount of charge(s)
passed through for payment by the shipper.
C. Charges Passed Through to NVOCCs by VOCCs
A comment received by NYNJFF&BA with respect to charges passed
through by NVOCCs to their shipper after being imposed on a VOCC by an
outside entity reflects the same concern in reference to the name and
type of VOCC-originated charges passed through to NVOCCs discussed in
Section B. NYNJFF&BA at 3-4. The Commission therefore is making the
same revision to the new rule at Sec. 520.7(h) to state that
categories of charges may be listed.
1. General Rate Increases
As discussed in the NPRM, the Commission has historically
classified General Rate Increases (GRIs) as a component of the base
ocean freight assessed by the common carrier, not a charge or
surcharge, and therefore would not be subject to an exemption under
Sec. 520.7(a)(3)(iv) as proposed in the NPRM. In its comments, the
NYNJFF&BA opposed the exclusion of GRIs as a charge that may be passed
through by an NVOCC. NYNJFF&BA at 4-5. The NYNJFF&BA asserted that VOCC
GRIs should be allowed to be passed through in the same way as other
``rapidly changing and proliferating VOCC charges.'' NYNJFF&BA also
notes that current regulations governing NRAs allow an NVOCC to apply
GRIs in the same way as surcharges and accessorial charges. NYNJFF&BA
at 4. Comments from the NYNJFF&BA and NCBFAA added that VOCC GRIs are
often announced with the required 30-day notice but are reduced or
delayed just prior to the effective date. NYNJFF&BA at 4-5; NCBFAA
ANPRM Comment at 6. These comments also indicated that, should the
NVOCC publish an increase in line with the VOCC's published GRI, the
underlying shipper may be subject to the increase, regardless of a
last-minute reduction or delay in effective date by the VOCC, if the
NVOCC does not file a coinciding reduction or delay in its own tariff.
Based on comments received and the current regulation at Sec.
532.5(d)(2), which allows VOCC GRIs to apply to an NRA, the Commission
is revising its regulation at Sec. 520.7(a)(3)(iv) to specify that an
NVOCC has the option to pass through a VOCC GRI to its shipper.
2. Fees Connected to Pass-Through Charges
In its NPRM, the Commission stated that regulations that would
allow an NVOCC to pass through increases in certain charges without
advance notice under specified conditions are not intended to allow a
markup of charges above what the third party has billed. Several
commenters asserted that NVOCCs should be allowed to charge a
``nominal'' fee to recover the cost of the outlay of charges assessed
by an outside entity. See NCBFAA at 4; UWL at 2; C.H. Powell at 2;
Ascent Global Logistics at 1; Mohawk Global at 6; and NYNJFF&BA at 6.
The Commission agrees that NVOCCs are entitled to receive compensation
for services provided, including a fee for the advance payment of
charges on behalf of its customer. However, the Commission's intent in
this regard is to ensure it is clear what service charges are being
charged to the shipper, rather than allowing the NVOCC to simply mark
up the charges assessed by the VOCC. Therefore, the regulation at Sec.
520.7(a)(3)(iv) has been revised to specify that fees from the NVOCC
should be separate and distinguished from charges that are passed
through from the VOCC without markup, and named for the service
provided (e.g., an ``advance payment charge'').
D. Co-Loaded Cargo
The Commission received comments on its proposal to revise the
definition of ``co-loading'' to limit this term to the act of combining
of less-than-container-loads (LCL) of cargo. See generally APL
Logistics at 1-2; Ascent Global at 2; C.H. Powell at 3; Kintetsu at 1;
Mohawk Global at 6-8; NCBFAA at 6; NYNJFF&BA at 7-12; and UWL at 3.
While some commenters suggested that limiting the definition of co-
loading to LCL would prevent full container load (FCL) co-loading,
(see, e.g., APL Logistics at 1 and C.H. Powell at 3), this was not the
Commission's intent. Most commenters largely favored adding a
definition for FCL co-loading, including those supporting the laying
out of a ``set of expectations'' for both LCL and FCL co-loading
situations. See generally APL Logistics at 1-2; Ascent Global at 2;
C.H. Powell at 3; Kintetsu at 1; Mohawk Global at 6-8; NCBFAA NPRM
Comment at 6; and UWL at 3.
The Commission recognizes that the term co-loading has come to
encompass both (1) the combining of LCL cargo by two or more NVOCCs in
a container, and (2) the re-selling of space for FCL cargo by one NVOCC
to another NVOCC. In proposing to limit the
[[Page 27]]
regulatory definition of co-loading to LCL, the Commission did not
intend to prevent arrangements between NVOCCs involving FCL. Instead,
the purpose was to accurately describe co-loading in its traditional
meaning as the physical combining of cargo in a single shipping
container. The Commission could then differentiate regulations that
apply to NVOCC co-loading arrangements that involve LCL cargo from
those that involve FCL cargo. The Commission has ultimately decided
that the definition of co-loading will remain unchanged, and the
differentiations between FCL and LCL co-loaded cargo will instead be
made through the revision of the current co-loading regulations at
section 520.11(c), which limit the co-loading of FCL to shipper-to-
carrier relationships only. The Commission also proposed to require
that an NVOCC that tenders cargo to another NVOCC must annotate each
applicable bill of lading with the identity of any other NVOCC to which
the shipment was tendered. This proposal received unanimous opposition
that fell into two categories. First, tendering NVOCCs opposed
disclosing to their shipper clients the names of the other NVOCCs with
whom they work out of concern for the impact on their competitive
commercial interests. See Yang Ming at 1; Mohawk at 9-10; Ascent at 2;
NYNJFF&BA at 9; NCBFAA at 7; APL Logistics at 2-3; and Kintetsu at 1.
Second, NVOCCs do not necessarily know the names of all NVOCCs to which
the shipment has been passed before it reaches a final master NVOCC
that contracts with the VOCC for ocean transport. See Mohawk at 10;
Ascent at 2; and NYNJFF&BA at 9. Commenters added that annotation will
result in a delay of documentation release as annotation would need to
be input manually. See Yang Ming at 1 and NCBFAA at 7. APL Logistics
and Mohawk Global also commented that they were unaware of any
circumstance where annotation would have provided a benefit to a
beneficiary cargo owner (BCO). See APL Logistics at 3 and Mohawk Global
at 12. Overall, the commenters asserted that any benefit to the BCO
gained from annotation is outweighed by the burden it places on the
NVOCC. See generally APL Logistics at 3 and Mohawk Global at 12. See
also NYNJFFF&BA at 9; NCBFAA at 6; and C.H. Powell at 4.
The Commission notes that the requirement to annotate already
applies to co-loaded cargo pursuant to Sec. 520.11(c)(2). The final
rule does not change Commission regulations in this regard. However,
regulations that govern the co-loading of cargo will be augmented to
clarify the types of relationships that are allowable for the co-
loading of cargo among NVOCCs. Specifically, current regulations make
reference to carrier-to-carrier relationships and shipper-to-carrier
relationships between NVOCCs in a co-loading situation. These
relationships establish the responsibility of each NVOCC as they relate
to each other and to the beneficial cargo owner. In a shipper-to-
carrier relationship, a master NVOCC receives cargo from a tendering
NVOCC and acts as carrier to the tendering NVOCC in issuing its house
bill of lading and assuming legal responsibility as carrier for the
cargo. The revisions to new paragraph 520.11(c)(2) clarify that this
arrangement may be used for the shipment of either LCL or FCL cargo. In
a carrier-to-carrier relationship, the NVOCCs enter into an agreement
which establishes the terms under which the NVOCCs will share container
space for consolidated cargo. Each NVOCC will issue its house bill of
lading for its portion of the cargo and act as carrier to its own
customer. The revisions to new paragraph 520.11(c)(2) clarify that
carrier-to-carrier arrangements will limit this type of arrangement to
LCL cargo only.
E. Other Proposed Changes to Part 520
In addition to these changes, the Commission also made a number of
other changes to 46 CFR 520.2-520.14 as detailed below.
1. The Commission Is Updating Citations Throughout Part 520
The Commission is removing legacy parallel citations that provided
the public with useful information after the codification of the
Commission's authorities in Title 46 of the United States Code. The
Commission is also deleting the definition of ``Act'' from the
definition section. These citations and definition are no longer
necessary or accurate, and the Commission is removing them.
2. Clarifying Revisions
The Commission revises several provisions within part 520 to
clarify when the regulations are expressing a requirement or
obligation. Among these changes include replacing the term ``shall''
with the term ``must'' to clearly indicate that certain acts are
required and to identify regulatory obligations. Similarly, the
Commission also replaces certain usages of the term ``may'' with the
term ``must'' to identify requirements or obligations. In addition, the
Commission made other clarifying edits.
3. Sec. 520.2 Definitions
To clarify the definitions in Sec. 520.2, the Commission: adds
clarifying language to the definition of ``bulk cargo'' to explain that
bulk ``containerized cargo tendered by the shipper'' is subject to mark
and count and is, therefore, subject to the requirements of this part;
amends the definition of combination rate to spell out the abbreviation
for Tariff Rate Item; amends the definition of commodity description to
require the description to be identified by a specific number; amends
the definition of ``harmonized system'' to remove an outdated reference
to the U.S. Customs Service; amends the definition of ``publisher'' to
mean a person rather than an organization, and specify that a publisher
is authorized to act by a common carrier; amends the definition of
``retrieval'' to remove outdated references to dial-up
telecommunications and a network link; amends the definition of
``rules'' to clarify that a common carrier or a conference of common
carriers set the tariff terms and conditions; amends the definition of
``shipper'' to specify that ocean transportation refers to the
transportation of cargo, to specify that the person to whom delivery is
to be made may be a consignee, and to include the meaning of shippers'
association; and amends the definition of ``through transportation'' to
make it consistent with the Shipping Act's revised definition. The
Commission also adds definitions for ``destination scope'' and ``inland
division'' to its regulations. Finally, the Commission removes as
unnecessary the definitions of ``joint rates,'' ``commodity description
number,'' ``local rates,'' ``point of rest,'' and ``shippers'
association.''
4. Sec. 520.3 Publication Responsibilities
Pursuant to Sec. 520.3(d), the Commission requires that all common
carriers publish a tariff in an automated tariff system and provide the
location of that tariff to the Commission prior to the commencement of
common carrier service. However, some NVOCCs will publish a tariff upon
initially being licensed, but later allow the tariff to lapse and fall
out of compliance. The Commission stated its belief that adding notice
in Sec. 520.3 of the consequences which already exist pursuant to 46
CFR 515.1 and 515.14 for failure to maintain a tariff could improve
tariff compliance. 87 FR 27971, 27974 (May 10, 2021). To this end, the
Commission adds a provision to Sec. 520.3 to specify that failing to
maintain a tariff will result in the revocation of an NVOCC's license
or
[[Page 28]]
suspension of a foreign-based unlicensed NVOCC's registration. In
addition, the Commission: changes the term used for the person a common
carrier may use to meet their publication requirements from ``agent''
to ``publisher''; includes the common carrier's email address in the
list of items provided to the Commission prior to commencement of
common carrier service pursuant to a published tariff; and defines the
time period allowed for the common carrier to provide changes to its
Form FMC-1 to the Commission as within 30 calendar days.
The Commission received one comment regarding this proposal. That
comment stated that the proposed rule seemed excessively harsh, since
tariffs are quite complex and to subject a carrier to the penalty of a
loss of operating authority for an inadvertent updating error would be
excessive. See NYNJFF&BA at 13. Further, the commenter asserted that
the industry would be better served if the Commission issued a warning
to those NVOCCs whose tariffs are found to be non-compliant and provide
an opportunity to remediate any failing, and that the goal is to bring
the industry into compliance. See NYNJFF&BA at 13. The Commission does
not accept the commenter's premise and notes that while a carrier may
be afforded the opportunity to remedy a particular situation depending
on the circumstances at hand, the inclusion of this provision is
intended to convey the seriousness of the consequences that may follow
should the common carrier fail to take action in response to the
Commission's efforts to induce compliance. Accordingly, the Commission
is not persuaded to revise the language in the proposed rule.
The Commission also received general comments regarding the
requirement to publish and maintain a tariff. These comments argued
that tariffs are no longer relevant in light of the prevalence of
privately negotiated agreements, and that tariffs are complex and
difficult to navigate and do not provide transparency of rates and
surcharges. See Mohawk Global at 1-2; NYNJFF&BA at 1-2. The Commission
notes that the Shipping Act requires the publication of tariffs, and
tariff publication is still necessary to protect the shipping public
and ensure compliance with the Shipping Act.
5. Sec. 520.4 Tariff Contents
The Commission revises Sec. 520.4(a)(3) to clarify that the ocean
transportation intermediary that may receive compensation paid by a
common carrier or conference is an ocean freight forwarder as defined
by 46 U.S.C. 40102(19). In addition, the Commission uses plain language
to reword the regulation at Sec. 520.4(a)(4) requiring that a tariff
state each charge separately; revises Sec. 520.4(a)(5) to state that
sample copies of bills of lading must be legible; and revises Sec.
520.4(a)(8) to state that commodity tariffs must contain a retrievable
commodity index.
The Commission also deletes Sec. 520.4(e)(1), which describes
voluntary coding for commodity descriptions. To streamline the rule and
remove a non-mandatory regulation, the Commission deletes paragraph
(e)(1). The Commission notes that, even with the adoption of this
change to section 520.4, tariff publishers are still not required to
use any numeric code to identify commodities and the Commission still
encourages the use of the Harmonized Tariff Schedule of the United
States for both the commodity coding and associated terminology
(definitions). In addition, the regulations still address the use of
numeric codes to identify commodities.
The Commission also makes a variety of other changes to sections
520.5 through 520.14. These changes are listed below:
--Section 520.5 (standard tariff terminology): updates the source for
geographic names listed in tariffs.
--Section 520.6 (retrieval of information): revises the search
capability requirement for the retrieval of tariff information to
specify that a search for a commodity description must result in a
commodity or retrievable commodity index list.
--Section 520.7 (tariff limitations): clarifies the date on which a new
conference member's participation in the conference tariff becomes
effective; specifies that the minimum time allowed to file an overage
claim with a common carrier applies to claims filed by a shipper;
removes a provision stipulating the methods to be used to compute the
weight of green salted hides, in light of requirements mandated by the
International Maritime Organization; adds a new paragraph (h) to Sec.
520.7 to specify that NVOCCs may pass through certain charges received
from ocean common carriers that are not under the control of the ocean
common carrier or conferences; and clarifies that the charges must be
clearly listed in the NVOCC's tariffs and not marked up above cost.
--Section 520.8 (effective dates): replaces the term ``destination
grouping'' with ``destination scope'' in Sec. 520.8(b)(3) to be
consistent with other references to ``destination scope'' used in 46
CFR part 520.
--Section 520.9 (access to tariffs): updates this section to remove
references to obsolete technologies.
--Section 520.10 (integrity of tariffs): revises the requirement to
maintain historical tariff data in Sec. 520.10(a) by defining the time
period that data must be made available to the Commission as generally
being within 45 days of a request and making certain grammatical
corrections to the requirement that common carriers provide tariff
access to the Commission.
--Section 520.11 (non-vessel-operating common carriers): removes as
unnecessary the requirement that an NVOCC must note in its tariff that
it does not tender cargo for co-loading; removes as unnecessary the
requirement in 520.11(c) that an NVOCC may not offer special co-loading
rates for the exclusive use of other NVOCCs, since published tariff
rates are available to all shippers.
--Section 520.12 (time/volume rates): clarifies the time/volume rate
requirements and that common carriers or conferences may cancel time/
volume rates when no shipper accepts these rates within 30 days after
the rates are published.
--Section 520.13 (exemptions and exceptions): updates the governing
rules of this part and the requirements for Department of Defense
cargo, updating references to a military component.
--Section 520.14 (special permission): specifies the documents required
when requesting confidential treatment of an application for special
permission and updates the process for submission and payment of
applications for special permission.
Except for those comments already noted in the preceding paragraphs
in this section (Section E), the Commission received no comments
opposing these proposed changes, and one comment supporting the
proposed changes. See Mohawk Global at 12. The Commission therefore
adopts these changes in this final rule.
II. Rulemaking Analyses and Notices
Regulatory Flexibility Act
The Regulatory Flexibility Act, 5 U.S.C. 601-612, provides that
whenever an agency is required to publish a notice of proposed
rulemaking under the Administrative Procedure Act, 5 U.S.C. 553, the
agency must prepare and make available for public comment an initial
regulatory flexibility analysis (IRFA)
[[Page 29]]
describing the impact of the proposed rule on small entities. When an
agency promulgates a final rule after being required to publish a
notice of proposed rulemaking, the agency must prepare and make
available to the public the final regulatory flexibility analysis
(FRFA) or its summary. The IRFA and FRFA requirements, however, do not
apply if the head of the agency certifies that the rule will not have a
significant economic impact on a substantial number of small entities.
To avoid duplicative or unnecessary analyses, the agency must publish
such certification either at the time of publication of a notice of
proposed rulemaking or at the time of publication of the final rule. 5
U.S.C. 605. The Commission published such certification at the time of
the publication of the notice of proposed rulemaking, along with a
statement providing the factual basis for the certification. 87 FR at
27975-27976.
Congressional Review Act
The rule is not a ``major rule'' as defined by the Congressional
Review Act, codified at 5 U.S.C. 801 et seq. The rule will not result
in: (1) an annual effect on the economy of $100,000,000 or more; (2) a
major increase in costs or prices; or (3) significant adverse effects
on competition, employment, investment, productivity, innovation, or
the ability of United States-based companies to compete with foreign
based companies. 5 U.S.C. 804(2).
National Environmental Policy Act
The National Environmental Policy Act of 1969 (NEPA) (42 U.S.C.
4321-4347) requires Federal agencies to consider the environmental
impacts of proposed major Federal actions significantly affecting the
quality of the human environment, as well as the impacts of
alternatives to the proposed action. When a Federal agency prepares an
environmental assessment, the NEPA implementing regulation requires it
to ``include brief discussions of the need for the proposal, of
alternatives [. . .], of the environmental impacts of the proposed
action and alternatives, and a listing of agencies and persons
consulted.'' 40 CFR 1508.9(b). After an environmental assessment, the
Commission issued a Finding of No Significant Impact (FONSI) which
became final 10 days after publication of the NPRM as the Commission
received no petition for review. The FONSI and environmental assessment
are available for inspection on the docket at <a href="http://www.regulations.gov">www.regulations.gov</a>.
Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521) (PRA)
requires an agency to seek and receive approval from the Office of
Management and Budget (OMB) before collecting information from the
public. 44 U.S.C. 3507. The agency must submit collections of
information in proposed rules to OMB in conjunction with the
publication of the notice of proposed rulemaking. 5 CFR 1320.11.
The information collection requirements in part 520 are currently
authorized under OMB Control Number 3072-0064. In compliance with the
PRA, the Commission submitted the proposed revised information
collection to the OMB. Notice of the revised information collections
was published in the Federal Register and public comments were invited.
See 87 FR 27971 (May 10, 2021). No comments specifically addressed the
revised information collection in part 520. The burden calculations
were updated as part of the evaluation of the final rule. While the
estimated burden to the public for each component remained the same,
the total burden hours increased. The burden hour increase is due to an
increase in the number of entities, particularly NVOCCs, entering the
industry. In the NPRM the Commission estimated the total person-hour
burden at 2,509 person-hours. In this Final Rule, the total person-hour
burden is estimated at 2,931 person-hours.
Executive Order 12988 (Civil Justice Reform)
This rule meets the applicable standards in E.O. 12988 titled,
``Civil Justice Reform,'' to minimize litigation, eliminate ambiguity,
and reduce burden. Section 3(b) of E.O. 12988 requires agencies to make
every reasonable effort to ensure that each new regulation: (1) clearly
specifies the preemptive effect; (2) clearly specifies the effect on
existing Federal law or regulation; (3) provides a clear legal standard
for affected conduct, while promoting simplification and burden
reduction; (4) clearly specifies the retroactive effect, if any; (5)
adequately defines key terms; and (6) addresses other important issues
affecting clarity and general draftsmanship under any guidelines issued
by the Attorney General. This document is consistent with that
requirement.
Regulation Identifier Number
The Commission assigns a regulation identifier number (RIN) to each
regulatory action listed in the Unified Agenda of Federal Regulatory
and Deregulatory Actions (Unified Agenda). The Regulatory Information
Service Center publishes the Unified Agenda in April and October of
each year. You may use the RIN contained in the heading at the
beginning of this document to find this action in the Unified Agenda,
available at <a href="http://www.reginfo.gov/public/do/eAgendaMain">http://www.reginfo.gov/public/do/eAgendaMain</a>.
List of Subjects in 46 CFR Part 520
Freight, Intermodal transportation, Maritime carriers, Reporting
and recordkeeping requirements.
For the reasons set forth in the preamble, the Federal Maritime
Commission amends 46 CFR part 520 as follows:
PART 520--CARRIER AUTOMATED TARIFFS
0
1. The authority citation for part 520 continues to read as follows:
Authority: 5 U.S.C. 553; 46 U.S.C. 40101-40102, 40501-40503,
40701-40706, 41101-41109, 46105.
0
2. Amend Sec. 520.1 by revising the last sentence of paragraph (a) and
paragraphs (b)(2) through (4) to read as follows:
Sec. 520.1 Scope and purpose.
(a) * * * They implement the tariff publication requirements of 46
U.S.C. 40501-40503.
(b) * * *
(2) Carriers and conferences to meet their publication requirements
pursuant to 46 U.S.C. 40501-40503;
(3) The Commission to ensure that carrier tariff publications are
accurate and accessible and to protect the public from violations by
carriers of 46 U.S.C. 41101-41106; and
(4) The Commission to review and monitor the activities of
controlled carriers pursuant to 46 U.S.C. 40701-40706.
0
3. Amend Sec. 520.2 by:
0
a. Removing the word ``shall'' from the introductory text;
0
b. Removing the definition of ``Act'';
0
c. Revising the definitions of ``Bulk cargo'', ``Combination rate'',
and ``Commodity description'';
0
d. Removing the definition of ``Commodity description number'';
0
e. Revising introductory text of the definition of ``Controlled
carrier'';
0
f. Adding in alphabetical order a definition for ``Destination scope'';
0
g. Revising the definitions of ``Foreign commerce'' and ``Harmonized
System'';
0
h. Adding in alphabetical order a definition for ``Inland division'';
0
i. Removing the definitions of ``Joint rates'' and ``Local rates'';
[[Page 30]]
0
j. Revising the definition of ``Location group,''
0
k. Removing the definition of ``Point of rest'';
0
l. Revising the definitions of ``Publisher,'' ``Retrieval'', ``Rules'',
and ``Shipper'';
0
m. Removing definition of ``Shippers' association'';
0
n. Revising the definitions of ``Tariff number'' and ``Tariff rate
item'';
0
o. Adding in alphabetical order a definition for ``Through date'';
0
p. Revising the definition of ``Through transportation''; and
0
q. Removing the definition of ``Thru date''.
The revisions and additions read as follows.:
Sec. 520.2 Definitions.
* * * * *
Bulk cargo means cargo that is loaded and carried in bulk without
mark or count in a loose unpackaged form, having homogeneous
characteristics. Bulk containerized cargo tendered by the shipper is
subject to mark and count and is, therefore, subject to the
requirements of this part.
* * * * *
Combination rate means a rate for a shipment moving under
intermodal transportation which is computed by the addition of a tariff
rate item (``TRI'') and an inland rate applicable from/to inland points
not covered by the TRI.
* * * * *
Commodity description means a comprehensive description of a
commodity listed in a tariff, including a brief definition of the
commodity, that may be identified by a specific number.
* * * * *
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 will be deemed to
exist with respect to any common carrier if:
* * * * *
Destination scope means a location group defining the geographic
range of cargo destinations covered by a tariff.
* * * * *
Foreign commerce means that commerce under the jurisdiction of
title 46 of the United States Code.
* * * * *
Harmonized System means the Harmonized Tariff Schedule of the
United States, published by the U.S. International Trade Commission,
and Schedule B, administered by the U.S. Census Bureau.
Inland division means the amount paid by a common carrier to an
inland carrier for the inland portion of through transportation offered
to the public by the common carrier.
* * * * *
Location group means a logical collection of geographic points,
ports, states/provinces, countries, or combinations thereof, which is
primarily used to identify, by location group name, a group that
represents tariff origin and/or destination scope and TRI origin and/or
destination.
* * * * *
Publisher means a person authorized by a common carrier to publish
or amend tariff information.
* * * * *
Retrieval means the process by which a person accesses a tariff and
interacts with the carrier's or publisher's system on a transaction-by-
transaction basis to retrieve published tariff matter.
Rules means the stated terms and conditions set by a common carrier
or a conference of common carriers which govern the application of
tariff rates, charges, and other matters.
* * * * *
Shipper means:
(1) A cargo owner;
(2) The person for whose account the ocean transportation of cargo
is provided;
(3) The person to whom delivery is to be made (e.g., consignee);
(4) A shippers' association, meaning a group of shippers that
consolidates or distributes freight on a nonprofit basis for the
members of the group to obtain carload, truckload, or other volume
rates or service contracts; or
(5) An NVOCC that accepts responsibility for payment of all charges
applicable under the tariff or service contract.
* * * * *
Tariff number means a unique three-digit number assigned by the
publisher to distinguish it from other tariffs. Tariffs must be
identified by the six-digit organization number plus the user-assigned
tariff number (e.g., 999999-001) or a Standard Carrier Alpha Code
(``SCAC'') plus the user-assigned tariff number.
Tariff rate item (``TRI'') means a single freight rate, in effect
on and after a specific date or for a specific time period, for the
transportation of a stated cargo quantity, which moves from origin to
destination under a single specified set of transportation conditions,
such as container size or temperature.
* * * * *
Through date means the date after which an amendment to a tariff
element is designated by the publisher to be unavailable for use and
the previously effective tariff element automatically goes back into
effect.
* * * * *
Through transportation means continuous transportation between
origin and destination, for which a through rate is assessed and which
is offered or performed by one or more carriers, at least one of which
is a common carrier, between a United States port or point and a
foreign port or point.
* * * * *
0
4. Revise Sec. 520.3 to read as follows:
Sec. 520.3 Publication responsibilities.
(a) General. Unless otherwise exempted or excepted by Sec. 520.13,
all common carriers and conferences must keep open for public
inspection in automated tariff systems tariffs showing all rates,
charges, classifications, rules, and practices between all points or
ports on their own routes and on any through transportation route that
has been established.
(b) Conferences. Conferences must publish in their automated tariff
systems rates offered pursuant to independent action by their members
and may publish any open rates offered by their members. Alternatively,
open rates may be published in individual tariffs of conference
members.
(c) Publishers. Common carriers or conferences can use publishers
to meet their publication requirements under this part.
(d) Notification. (1) Prior to the commencement of common carrier
service pursuant to a published tariff, each common carrier and
conference must electronically submit to BTA Form FMC-1 via the
Commission's website <a href="http://www.fmc.gov">www.fmc.gov</a>.
(2) The common carrier and conference must include on Form FMC-1
its organization name, organization number, home office address, name
and email address and telephone number of the firm's representative,
the location of its tariffs, and the publisher, if any, used to
maintain its tariffs.
(3) Any changes to the above information must be transmitted to BTA
within 30 calendar days.
(4) The Commission will provide a unique organization number to new
entities operating as common carriers or conferences in the U.S.
foreign commerce.
(e) Location of tariffs. The Commission will publish on its
website, <a href="http://www.fmc.gov">www.fmc.gov</a>, a list of the locations of all common carrier and
conference tariffs.
(f) NVOCC failure to maintain tariff. Failure to maintain a tariff
will result in
[[Page 31]]
revocation of an NVOCC's license or suspension of a foreign-based
unlicensed NVOCC's registration.
0
5. Amend Sec. 520.4 by:
0
a. Removing the word ``shall'' wherever it appears and adding in its
place the word ``must'';
0
b. Revising paragraphs (a)(3) through (5) and (8);
0
c. Removing paragraph (e)(1);
0
d. Redesignating paragraphs (e)(2) and (3) as paragraphs (e)(1) and
(2); and
0
e. Revising newly redesignated paragraph (e)(2)(i) and paragraphs
(f)(5), (g), and (i).
The revisions read as follows:
Sec. 520.4 Tariff contents.
(a) * * *
(3) State the level of compensation, if any, to be paid by a
carrier or conference to an ocean freight forwarder, as defined by 46
U.S.C. 40102(19);
(4) State separately each terminal or other charge, privilege, or
facility under the control of the carrier or conference and any rules
that in any way change, affect, or determine any part or the total of
the rates or charges;
(5) Include sample copies of any bill of lading showing legible
terms and conditions, contract of affreightment, and/or other document
evidencing the transportation agreement;
* * * * *
(8) For commodity tariffs, also contain a retrievable commodity
index, commodity descriptions, and tariff rate items.
* * * * *
(e) * * *
(2) * * *
(i) Common carriers or their publishers must have at least one
similar index entry which will logically represent the commodity within
the alphabetical index for each commodity description it creates under
this section. Common carriers or their publishers must create multiple
entries in the index for articles with equally valid common use names,
such as ``Sodium Chloride,'' ``Salt, common,'' etc.
* * * * *
(f) * * *
(5) Origin and destination scopes or location groups;
* * * * *
(g) Location groups. In the primary tariff or in a governing
tariff, a publisher may define and create groups of cities, states,
provinces, and countries (e.g., location groups) or groups of ports
(e.g., port groups), which can be used in the construction of TRIs and
other tariff objects, in lieu of specifying particular place names in
each tariff item or creating multiple tariff items which are identical
in all ways except for place names.
* * * * *
(i) Shipper requests. Conference tariffs must contain clear and
complete instructions, in accordance with the agreement's provisions,
stating where and by what method shippers can file requests and
complaints and how they can engage in consultation pursuant to 46
U.S.C. 40303(b)(6)-(7), together with a sample rate request form or a
description of the information necessary for processing the request or
complaint.
* * * * *
0
6. Revise Sec. 520.5 to read as follows:
Sec. 520.5 Standard tariff terminology.
(a) Approved codes. The Standard Terminology Appendix contains
codes for rate bases, container sizes, service, etc., and units for
weight, measure and distance. They are intended to provide a standard
terminology baseline for tariffs to facilitate retriever efficiency.
Tariff publishers can use additional codes, if they are clearly defined
in their tariffs.
(b) Geographic names. Tariffs should employ locations (points) that
are provided by the National Geospatial-Intelligence Agency or the
Geographic Names Information System developed by the U.S. Geological
Survey. Ports published or approved for publication in the World Port
Index (Pub. 150) should also be used in tariffs. Tariff publishers can
use geographic names that are currently in use and have not yet been
included in these publications.
0
7. Amend Sec. 520.6 by
0
a. In paragraphs (a) introductory text, (c), and (d), removing the word
``shall'' and adding in its place the word ``must''; and
0
b. Revising paragraphs (b), (e), and (f).
The revisions read as follows:
Sec. 520.6 Retrieval of information.
* * * * *
(b) Search capability. Publisher must provide the capability to
search for tariff matter by non-case sensitive text search. Text search
matches for commodity descriptions must result in a commodity or
retrievable commodity index list.
* * * * *
(e) Basic ocean freight. The minimum rate display for tariffs must
consist of the basic ocean freight rate and a list of all assessorial
charges and surcharges that apply for the retriever-entered shipment
parameters. The tariff must indicate when other rules or charges apply
to a shipment under certain circumstances.
(f) Displays. All displays of individual tariff matter must include
the publication date, effective date, amendment code (use codes in
appendix A to this part), and object name or number. When applicable, a
through date or expiration date must also be displayed. Use of ``S'' as
an amendment code must be accompanied by a Commission issued special
permission number.
0
8. Amend Sec. 520.7 by:
0
a. In paragraphs (a) introductory text, (b), and (c), removing the word
``shall'' and adding in its place the word ``must'';
0
b. In paragraph (a)(3)(i), removing the comma at the end of the
paragraph and adding a semicolon in its place;
0
c. In paragraph (a)(3)(ii):
0
i. Removing the word ``may'' and adding in its place the word ``can'';
and
0
ii. Removing ``, and'' at the end of the paragraph and adding a
semicolon in its place;
0
d. In paragraph (a)(3)(iii), removing the word ``may'' and adding in
its place the word ``can'';
0
e. Adding paragraph (a)(3)(iv);
0
d. Removing paragraph (e).
0
e. Redesignating paragraphs (f) through (h) as paragraphs (e) through
(g);
0
f. Revising newly redesignated paragraphs (e) and (f); and
0
g. Adding a new paragraph (h).
The revisions read as follows:
Sec. 520.7 Tariff limitations.
(a) * * *
(3) * * *
(iv) An NVOCC may cross-reference an ocean common carrier tariff
for the purpose of charging its shipper the ocean common carrier's
published and effective surcharges, assessorial charges, and general
rate increases, but the NVOCC must clearly list the named charges or
categories of charges in the NVOCC's tariff, and must not mark them up
above cost. Any fee associated with services provided by the NVOCC to
its shipper should be separate and distinguished from the vessel-
operating common carrier's surcharges, assessorial charges, and general
rate increases, and specify the service for which the shipper is being
charged.
* * * * *
(e) Conference situations. (1) New members of a conference must
cancel any independent tariffs applicable to the trades served by the
conference within 90 days of membership in the conference. Individual
conference members can publish their own separate open rate tariffs. A
new member's participation in the conference tariff is effective on the
date notice of membership is published in the
[[Page 32]]
conference tariff, unless a later effective date is specified.
(2) New conference agreements have ninety (90) days within which to
publish a new tariff.
(f) Overcharge claims. (1) A tariff must not limit the filing of
overcharge claims by a shipper with a common carrier to a period of
less than 3 years from the accrual of the cause of action.
(2) The acceptance of any overcharge claim cannot be conditioned
upon the payment of a fee or charge.
(3) A tariff must not require that overcharge claims based on
alleged errors in weight, measurement, or description of cargo be filed
before the cargo has left the custody of the common carrier.
* * * * *
(h) Charges assessed by ocean common carriers to non-vessel-
operating common carriers. NVOCCs may pass through charges received
from ocean common carriers for terminal services, canal tolls,
additional charges, or other provisions which are not under the control
of the ocean common carrier or conferences and for which the NVOCC
merely acts as a collection agent. The charges or categories of charges
must be clearly listed in the NVOCC's tariffs and not marked up above
cost.
0
9. Amend Sec. 520.8 by:
0
a. Revising paragraphs (b)(3) and (4); and
0
b. In paragraph (c), removing the words ``shall be'' and adding in
their place the word ``are''.
The revisions read as follows:
Sec. 520.8 Effective dates.
* * * * *
(b) * * *
(3) The addition of a port or point to a previously existing origin
or destination scope; or
(4) Changes in charges which are not under the control of the
common carrier or conference (including terminal services, canal tolls,
additional charges, or other provisions) for which the carrier or
conference merely acts as a collection agent for such charges and the
agency making such changes does so without notifying the common carrier
or conference. Ocean common carriers and NVOCCs must not mark up these
charges above cost.
* * * * *
0
10. Revise Sec. 520.9 to read as follows:
Sec. 520.9 Access to tariffs.
(a) Methods to access. Carriers and conferences must provide access
to their published tariffs via the internet.
(b) Internet connection. (1) The internet connection requires that
systems provide a uniform resource locator (``URL'') internet address.
(2) Carriers or conferences must ensure that their internet service
providers provide static internet addresses.
(c) Tariff availability. (1) Tariffs must be made available to any
person without time, quantity, or other limitations.
(2) Carriers and conferences must provide free access to their
tariff publication system.
(3) Tariff publication systems must provide user instructions for
access to tariff information.
(d) Federal agencies. Carriers and conferences must not assess any
access charges against the Commission or any other Federal agency.
(e) User identifications. Carriers and conferences must provide the
Commission with the requisite documentation and the number of user
identifications and passwords required to facilitate the Commission's
access to their systems, if those systems require such identifications
and passwords.
0
11. Amend Sec. 520.10 by revising paragraphs (a), (b), and (d) to read
as follows:
Sec. 520.10 Integrity of tariffs.
(a) Historical data. Carriers and conferences must keep the data
that appeared in their tariff publication systems for a period of 5
years from the date such information is superseded, canceled, or
withdrawn, and must provide online access to such data for 2 years.
After 2 years, such data must be retained online or in other electronic
form and must be made available to any person or the Commission upon
request within 45 days, unless otherwise agreed. Carriers and
conferences may charge a reasonable fee for the provision of historical
data, not to exceed the fees for obtaining such data online. Carriers
and conferences must not charge a fee to the Commission or any other
Federal agency.
(b) Access date capability. Each tariff must provide the capability
for a retriever to enter an access date, i.e., a specific date for the
retrieval of tariff data, so that only data in effect on that date
would be directly retrievable. This capability would also align any
rate adjustments and assessorial charges that were effective on the
access date for rate calculations and designation of applicable
surcharges. The access date also applies to the alignment of tariff
objects for any governing tariffs.
* * * * *
(d) Access to systems. Carriers and conferences must provide the
Commission reasonable access to their automated systems and records for
the Commission's review.
0
12. Revise Sec. 520.11 to read as follows:
Sec. 520.11 Non-vessel-operating common carriers.
(a) Financial responsibility. An ocean transportation intermediary
that operates as a non-vessel-operating common carrier must state in
its tariff publication:
(1) That it has furnished the Commission proof of its financial
responsibility in the manner and amount required by part 515 of this
chapter;
(2) The manner of its financial responsibility;
(3) Whether it is relying on coverage provided by a group or
association to which it is a member;
(4) The name and address of the surety company, insurance company,
or guarantor issuing the bond, insurance policy, or guaranty;
(5) The number of its bond, insurance policy, or guaranty; and
(6) Where applicable, the name and address of the group or
association providing coverage.
(b) Agent for service. Every NVOCC not in the United States must
state the name and address of the person in the United States
designated under part 515 of this chapter as its legal agent for
service of process, including subpoenas. The NVOCC must also state that
in any instance in which the designated legal agent cannot be served
because of death, disability, or unavailability, the Commission's
Secretary will be deemed to be its legal agent for service of process.
(c) Co-loading. NVOCCs must address the following situations in
their tariffs:
(1) If two or more NVOCCs enter into an agreement which establishes
a carrier-to-carrier relationship for the co-loading of cargo, then the
existence of such agreement must be noted in the tariff. Carrier-to-
carrier relationships apply to the co-loading of less than container
loads of cargo only.
(2) If two NVOCCs enter into a co-loading arrangement which results
in a shipper-to-carrier relationship, the tendering NVOCC must describe
its co-loading practices and specify its responsibility to pay any
charges for the transportation of the cargo. A shipper-to-carrier
relationship is presumed to exist where the receiving NVOCC issues a
bill of lading to the tendering NVOCC for carriage of the co-loaded
cargo. Shipper-to-carrier relationships may apply to the co-loading of
full container loads or less than container loads of cargo.
[[Page 33]]
(3) An NVOCC which tenders cargo to another NVOCC for co-loading,
whether under a shipper-to-carrier or carrier-to-carrier relationship,
shall annotate each applicable bill of lading with the identity of any
other NVOCC to which the shipment has been tendered for co-loading.
Such annotation shall be shown on the face of the bill of lading in a
clear and legible manner.
0
13. Amend Sec. 520.12 by
0
a. Revising paragraph (a);
0
b. In paragraphs (b)(2) introductory text and (d), removing the word
``shall'' and adding in its place the word ``must''; and
0
c. Revising paragraphs (c) and (e).
The revisions read as follows:
Sec. 520.12 Time/Volume rates.
(a) General. Common carriers or conferences must publish in their
tariffs rates that are conditioned upon the receipt of a specified
aggregate volume of cargo or aggregate freight revenue over a specified
period of time.
* * * * *
(c) Accepted rates. Once a time/volume rate is accepted by one
shipper, it will remain in effect for the time specified, without
amendment. If no shipper gives notice within 30 days of publication, a
common carrier or conference may cancel the time/volume rate.
* * * * *
(e) Liquidated damages. Time/volume rates must not impose or
attempt to impose liquidated damages on any shipper that moves cargo
under the rate. Carriers and agreements must rerate cargo moved at the
applicable tariff rate if a shipper fails to meet the requirements of
the time/volume offer.
0
14. Amend Sec. 520.13 by:
0
a. Revising paragraphs (a), (b)(2) introductory text, (b)(3)
introductory text, (c)(4), (d)(2) introductory text, (d)(2)(ii)(A)
introductory text, and (d)(2)(ii)(B)(1) and (2); and
0
b. Removing paragraph (d)(2)(iii).
The revisions read as follows:
Sec. 520.13 Exemptions and exceptions.
(a) General. Exemptions from the requirements of this part are
governed by 46 U.S.C. 40103 and Sec. 502.92 of this chapter.
(b) * * *
(2) Controlled carriers in foreign commerce. A controlled common
carrier is exempt from the provisions of this part exclusively
applicable to controlled carriers when:
* * * * *
(3) Terminal barge operators in Pacific Slope states.
Transportation provided by terminal barge operators in Pacific Slope
states barging containers and containerized cargo by barge between
points in the United States are exempt from the tariff publication
requirements of subtitle IV of title 46 of the United States Code and
the rules of this part, where:
* * * * *
(c) * * *
(4) Department of Defense cargo. Transportation of U.S. Department
of Defense cargo moving in foreign commerce under terms and conditions
negotiated and approved by the Military Surface Deployment and
Distribution Command and published in a universal service contract. An
exact copy of the universal service contract, including any amendments
thereto, must be provided to the Commission in electronic format upon
request.
* * * * *
(d) * * *
(2) Between Canada and U.S. The following services are exempt from
the filing requirements of subtitle IV of title 46 of the United States
Code and the rules of this part:
* * * * *
(ii) * * *
(A) Through rates. Transportation by water of cargo moving in rail
cars between British Columbia, Canada, and United States ports on Puget
Sound, and between British Columbia, Canada, and ports or points in
Alaska, if the cargo does not originate in or is not destined to
foreign countries other than Canada, and if:
* * * * *
(B) * * *
(1) This exemption does not apply to cargo originating in or
destined to foreign countries other than Canada; and
(2) The carrier will remain subject to all other provisions of the
subtitle IV of title 46 of the United States Code.
* * * * *
0
15. Amend Sec. 520.14 by:
0
a. Revising paragraphs (a), (b), (c)(1) and (2), and (c)(3)
introductory text;
0
b. Removing the word ``and'' at the end of paragraph (c)(3)(ii);
0
c. Removing the period at the end of paragraph (c)(3)(iii) and adding
``; and'' in its place;
0
d. Adding paragraph (c)(3)(iv); and
0
e. Revising paragraph (d).
The revisions and addition read as follows:
Sec. 520.14 Special permission.
(a) General. The statute at 46 U.S.C. 40501(e) authorizes the
Commission, in its discretion and for good cause shown, to permit
increases or decreases in rates, or the issuance of new or initial
rates, on less than the statutory notice. The statutes at 46 U.S.C.
40703 and 40704(a) authorize the Commission to permit a controlled
carrier's rates, charges, classifications, rules or regulations to
become effective on less than 30 days' notice. The Commission may also
in its discretion and for good cause shown, permit departures from the
requirements of this part.
(b) Clerical errors. Typographical and/or clerical errors
constitute good cause for the exercise of special permission authority.
Every special permission application must plainly specify the error and
present clear evidence of its existence. The special permission
application must also include a full statement of the attending
circumstances. The special permission application must be submitted
with reasonable promptness after publishing the defective tariff
material.
(c) * * *
(1) Applications for special permission to establish rate increases
or decreases on less than statutory notice or for waiver of the
provisions of this part must be made by the common carrier, conference,
or agent for publishing. Every such application must be submitted to
the Bureau of Trade Analysis and be accompanied by a filing fee of
$313.
(2) Applications for special permission must be made by letter,
submitted via mail or email, followed promptly by electronic payment of
the filing fee.
(3) Applications for special permission must contain the following
information:
* * * * *
(iv) A statement that identifies any part(s) of the application for
which confidential treatment is sought and a justification for such
confidential treatment. In such cases, the applicant must provide both
a confidential version and a public version of the application.
(d) Implementation. The authority granted by the Commission must be
used in its entirety, including the prompt publishing of the material
for which permission was requested. Applicants must use the special
case number assigned by the Commission with the symbol ``S.''
By the Commission.
Mary Thien Hoang,
Acting Secretary.
[FR Doc. 2023-27783 Filed 12-29-23; 8:45 am]
BILLING CODE 6730-02-P
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