Rule2026-17876
Charge Complaint Procedures
Primary source
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Published
September 1, 2026
Effective
September 1, 2026
Issuing agencies
Federal Maritime Commission
Abstract
The Federal Maritime Commission (FMC or Commission) is issuing this rule to bring awareness that as an alternative to following the Commission's Interim Procedure for Charge Complaints, Charge Complaints may be filed with the Commission following traditional complaint processes involving either an Administrative Law Judge or Small Claims Officer. In accordance with the statute, when a person files a Charge Complaint as a traditional complaint, the Administrative Law Judge or Small Claims Officer must treat the complaint as such, including by requiring the common carrier to bear the burden of establishing the reasonableness of any demurrage or detention charges pursuant to the Commission's Interpretive Rule on Unjust and Unreasonable Practices With Respect to Demurrage and Detention.
Full Text
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<title>Federal Register, Volume 91 Issue 168 (Tuesday, September 1, 2026)</title>
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[Federal Register Volume 91, Number 168 (Tuesday, September 1, 2026)]
[Rules and Regulations]
[Pages 56053-56056]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-17876]
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FEDERAL MARITIME COMMISSION
46 CFR Part 502
[FMC-2026-0331]
RIN 3072-AD00
Charge Complaint Procedures
AGENCY: Federal Maritime Commission.
ACTION: Final rule.
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SUMMARY: The Federal Maritime Commission (FMC or Commission) is issuing
this rule to bring awareness that as an alternative to following the
Commission's Interim Procedure for Charge Complaints, Charge Complaints
may be filed with the Commission following traditional complaint
processes involving either an Administrative Law Judge or Small Claims
Officer. In accordance with the statute, when a person files a Charge
Complaint as a traditional complaint, the Administrative Law Judge or
Small Claims Officer must treat the complaint as such, including by
requiring the common carrier to bear the burden of establishing the
reasonableness of any demurrage or detention charges pursuant to the
Commission's Interpretive Rule on Unjust and Unreasonable Practices
With Respect to Demurrage and Detention.
DATES: This rule is effective September 1, 2026.
FOR FURTHER INFORMATION CONTACT: David Eng, Secretary; Phone: (202)
523-5725; Email: <a href="/cdn-cgi/l/email-protection#91e2f4f2e3f4e5f0e3e8d1f7fcf2bff6fee7"><span class="__cf_email__" data-cfemail="a4d7c1c7d6c1d0c5d6dde4c2c9c78ac3cbd2">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Background and Legal Authority
On June 16, 2022, the Ocean Shipping Reform Act of 2022 (OSRA 2022)
(Pub. L. 117-146) was enacted. Section 10 of the Act, ``Charge
complaints,'' codified at 46 U.S.C. 41310, states that a person may
submit to the Commission ``information concerning complaints about
charges assessed by a common carrier.'' The statute directs the
Commission, upon such a submission, to ``promptly investigate the
charge'' and order refunds and penalties for charges that do not comply
with 46 U.S.C. 41104(a) and 41102. Charge Complaints under 46 U.S.C.
41310 may be submitted regarding a broad range of noncompliant charges
assessed by a common carrier. While complaints about the reasonableness
of a demurrage or detention charge tend to be the most common, other
carrier fees or charges which are not in compliance with 46 U.S.C.
41104(a) and 41102 may be submitted for investigation. During the
investigation, the carrier has an opportunity to submit information
related to the charge in question, 46 U.S.C. 41310(b)(1). Whereas a
complainant typically bears the burden of establishing violations in
adjudicatory hearing proceedings under 46 U.S.C. 41301, OSRA 2022
provides that the respondent carrier ``bear[s] the burden of
establishing the reasonableness of any demurrage or detention charges
pursuant to [46 CFR] 545.5'' when a Charge Complaint is involved. 46
U.S.C. 41310(b)(2). Section 41310 of the United States Code is self-
implementing and became applicable and enforceable on June 16, 2022,
when OSRA 2022 was signed into law.
Because the Charge Complaint provisions are self-executing, the
Commission adopted an Interim Procedure for Charge Complaints
(``Interim Procedure'') to address the new type of complaint.\1\ The
Interim Procedure is a streamlined procedure designed for faster
resolution of Charge Complaint claims without significant participation
by the filer. Under the Interim Procedure, a person submits a Charge
Complaint and supporting information to the Commission by email
[[Page 56054]]
to <a href="/cdn-cgi/l/email-protection#57343f3625303234383a273b363e39232417313a3479303821"><span class="__cf_email__" data-cfemail="d3b0bbb2a1b4b6b0bcbea3bfb2babda7a093b5beb0fdb4bca5">[email protected]</span></a>. Commission staff acknowledge the
submission and, if necessary, contact the filer to obtain clarification
or missing information. When the Commission receives sufficient
information, it promptly investigates the complaint by contacting the
common carrier and asking the carrier to respond/justify the charge or
fee being investigated. Upon completion of the investigation,
Commission staff notify both parties.
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\1\ The Commission's Interim Procedure is available on the
Commission's website at <a href="https://www.fmc.gov/ocean-shipping-reform-act-of-2022-implementation/guidance-on-charge-complaint-interim-procedure/">https://www.fmc.gov/ocean-shipping-reform-act-of-2022-implementation/guidance-on-charge-complaint-interim-procedure/</a> (last accessed Aug. 5, 2026).
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If the investigation supports a finding that the common carrier's
charge or fee is not in compliance with statutes or Commission rules,
the parties are informed that the matter will be referred to the
Commission's Bureau of Enforcement, Investigations, and Compliance
(BEIC). For matters where the investigation supports a finding of a
violation, BEIC will recommend that the Commission institute Show Cause
proceedings under 46 CFR 502.91 to formally adjudicate the Charge
Complaint. Upon approval of FMC staff's recommendation, the Commission
will issue an Order to Show Cause naming the specific common carrier
and describing the actions alleged to violate 46 U.S.C. 41104(a),
41102, or both, and directing that common carrier to ``show cause'' why
it should not be ordered to refund the fees or charges paid or waive
such fees. The common carrier is provided the opportunity to ``show
cause'' why the common carrier's actions should not be found to
constitute a violation of 46 U.S.C. 41104(a) or 41102. The common
carrier may submit an affidavit(s) of fact, memoranda of law, and any
documentary evidence in support of its position. The Order to Show
Cause defines what procedures apply. Charge Complaint-related Show
Cause proceedings are conducted on a fast-track basis to provide an
early determination concerning the shipper's entitlement to a refund.
Procedures not consistent with achieving an expedited decision on
refunds or waivers, such as discovery or oral argument, are waived for
the refund proceeding. Additional procedures, however, may be requested
if desired. If the Commission orders a refund by the common carrier, a
separate civil penalty proceeding may also be initiated and referred to
the Commission's Office of Administrative Law Judges for consideration
of penalties under 46 U.S.C. 41107 and 41109. This is an entirely
separate proceeding handled under the Commission's more detailed rules
of practice and procedure.
The Commission's statement that the Interim Procedure ``cannot be
combined with formal proceedings under 46 CFR 502.61, or small claims
proceedings--formal or informal, under 46 CFR 502.301-502.321'' has
been interpreted by some individuals as meaning that the Interim
Procedure is the only route for bringing Charge Complaints.\2\ That is
not the case. The Commission's Interim Procedure is merely one way for
the Commission to meet its statutory obligation to ``investigate''
Charge Complaints. An ``investigation'' under 46 U.S.C. 41310 can also
be satisfied through the same processes that satisfies the
``investigation'' of complaints under 46 U.S.C. 41301(c).\3\ The
Commission's FAQs on Charge Complaints clearly explain, for example,
that a person who has submitted a Charge Complaint under the Interim
Procedure can still file a subsequent formal or small claims complaint
with the Commission even where the initial investigation does not
support a finding of a violation.\4\ Likewise, the Commission's
``Industry Advisory--Interim Procedures for Submitting `Charge
Complaints' Under 46 U.S.C. 41310'' issued on July 14, 2022, stated
that a filer may choose to ``pursue and control their own legal case,
including with the assistance of their own attorney if desired, . . .
under . . . Part 502 of the Commission's regulations.'' \5\
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\2\ Ocean Shipping Reform Act of 2022 Implementation, Frequently
Asked Questions, FAQ 1 (<a href="https://www.fmc.gov/ocean-shipping-reform-act-of-2022-implementation/">https://www.fmc.gov/ocean-shipping-reform-act-of-2022-implementation/</a> (last accessed Aug. 5, 2026)).
\3\ The Commission's procedures for 46 U.S.C. 41301 complaints
are flexible. See e.g, Fed. Mar. Comm'n v. S.C. State Ports Auth.,
535 U.S. 743, 775, 122 S. Ct. 1864, 1882, 152 L. Ed. 2d 962 (2002)
(Justice Breyer with Justice Stevens, Justice Souter, and Justice
Ginsburg, dissenting) (``Interestingly enough, it does not say that
the Commission must determine the merits of the complaint through
agency adjudication, see Sec. 1710(g) (1994 ed., Supp. V). . .
.'').
\4\ Charge Complaint FAQ 6, <a href="https://www.fmc.gov/ocean-shipping-reform-act-of-2022-implementation/guidance-on-charge-complaint-interim-procedure/#frequently-asked-questions">https://www.fmc.gov/ocean-shipping-reform-act-of-2022-implementation/guidance-on-charge-complaint-interim-procedure/#frequently-asked-questions</a> (last accessed Aug.
12, 2026).
\5\ <a href="https://www.fmc.gov/articles/industry-advisory-interim-procedures-for-submitting-charge-complaints-under-46-u-s-c-%c2%a7-41310/">https://www.fmc.gov/articles/industry-advisory-interim-procedures-for-submitting-charge-complaints-under-46-u-s-c-%c2%a7-41310/</a> (last accessed Aug. 12, 2026).
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The Interim Procedure's prohibition on ``combined claims'' was
implemented to recognize two limitations. First, a Charge Complaint
cannot simultaneously be investigated by both an Administrative Law
Judge (ALJ)/Small Claims Officer (SCO) and by agency staff under the
Interim Procedure. Second, if choosing to file under the Interim
Procedure, the filer cannot include claims other than Charge
Complaints. This is because the Interim Procedure implemented under the
authority of 46 U.S.C. 41310 only addressed Charge Complaints. As such,
the Interim Procedure cannot address non-Charge Complaint claims. Thus,
allowing filers to also include non-Charge Complaint claims when
proceeding under the Interim Procedure would negate the goal of the new
process, which is to allow for a streamlined and shortened timeframe to
resolve Charge Complaint claims.
A filing that meets the requirement of 46 U.S.C. 41310(a) on its
own or combined with other claims, in a private party formal or small
claims complaint, is a Charge Complaint regardless of whether the filer
submits it to the Commission under the Interim Procedure or files under
Subparts E (Sec. Sec. 502.61-502.75) or S (Sec. Sec. 502.301-502.305)
of the Commission's Part 502 rules. The Commission's July 2022 Industry
Advisory incorrectly stated that Charge Complaints filed as a formal or
small claims complaint could be filed under 46 U.S.C. 41301(a). A claim
that meets the requirements of 46 U.S.C. 41310(a) is a Charge Complaint
and must be resolved under the terms of 46 U.S.C. 41310, including the
required burden shifting for demurrage or detention charges, regardless
of whether the claim is submitted to the Commission under the Interim
Procedure or under traditional complaint processes. So long as the
submission includes the applicable bills of lading numbers and
invoices, and alleges violations of 46 U.S.C. 41104(a), 46 U.S.C. 41102
(or both), 46 U.S.C. 41310 directs the Commission to consider such a
submission as a Charge Complaint. If a Charge Complaint filed under
traditional complaint process contains a mix of complaints under 46
U.S.C. 41301 and 41310, those portion(s) which concern charges assessed
by a common carrier, provided that the submission includes the
applicable bills of lading numbers and invoices, and alleges
violation(s) of 46 U.S.C. 41104(a), 46 U.S.C. 41102, or both, must, by
operation of law be considered by the Commission a ``Charge Complaint''
under 46 U.S.C. 41310. The remainder of the submission will continue to
fall under 46 U.S.C. 41301.
The Commission is issuing this rule to highlight these existing
statutory requirements.
II. Discussion of Rule
The Commission clarifies that a Charge Complaint must be treated
consistent with 46 U.S.C. 41310 and further clarifies that a Charge
Complaint may be investigated via a filer by: (1) filing it through the
Interim Procedure, (2) filing a private party formal
[[Page 56055]]
complaint under Sec. 502.62, or (3) filing a small claims complaint
under Sec. 502.304. A filer pursuing a traditional complaint process
for a Charge Complaint must adhere to all procedural requirements set
forth in 46 CFR part 502, including for the format and content of their
complaint. Filers are encouraged to clearly identify claims as ``Charge
Complaints'' in their submission. However, in accordance with law, so
long as the complaint concerns charges assessed by a common carrier,
alleges a violation of 46 U.S.C 41104(a) and/or 46 U.S.C. 41102, and
includes the applicable bill of lading numbers and invoices, it is a
Charge Complaint and it will be resolved in accordance with 46 U.S.C.
41310. This includes application of the burden shifting requirement for
demurrage or detention charges under 46 U.S.C. 41310(b)(2). The
Commission is amending 46 CFR 502.62(a)(3)(v) and adding a new
502.301(b) to alert readers to this fact.
For small claims complaints, both parties must consent to the
determination of a Charge Complaint under informal adjudication
procedures for the claim to be decided under subpart S. If both parties
do not consent, the Charge Complaint will be decided under the
procedures of subpart T. The potential application of civil penalties
does not affect the $50,000 limit for small claims. Civil penalties are
not part of the claim total--they may not be requested by claimants and
are payable, if assessed, to the U.S. Treasury's General Fund.
Paragraph (c) of section 502.301, as revised, (previous Sec.
502.301(b)) reflects this. Paragraph 502.62(a)(4)(iv) has also been
revised to reflect civil penalty application to Charge Complaints filed
as formal complaints.
Section 41301 complaints must be filed within three years after the
claim accrues in order to obtain reparations, 46 U.S.C. 41301(a).
Section 41310 of title 46 of the United States Code, however, does not
contain a statute of limitations for Charge Complaints. A Charge
Complaint may be filed for any covered violations that occurred on or
after the enactment of OSRA 2022 (June 16, 2022). OSRA 2022 does not
apply retroactively. The absence of a statute of limitations in section
41310 is reflected in the Commission's amendments to Sec. Sec.
502.62(a)(4)(iii) and 502.302(a).
The Commission's Interim Procedure for Charge Complaints continues
to provide important benefits to filers as an alternative to
independently pursuing a traditional claim. First, it allows the
Commission to assist filers by requesting missing information that
might be necessary to perfect a complaint. That level of assistance is
not available if a filer proceeds directly with a Charge Complaint
under traditional procedures. Second, those filers using the Interim
Procedure do not currently pay any fees.\6\ Complainants seeking
resolution of a Charge Complaint through the Commission's traditional
claims processes are required to pay the filing fee, currently $387 for
Subpart E and $176 for Subpart S. Finally, because formal action
arising out of a Charge Complaint investigation is brought by BEIC
against the common carrier, the complaining party is not expected to
testify or provide additional information in the Order to Show Cause
proceeding before the Commission.
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\6\ The Commission is investigating the appropriateness of fees
for Charge Complaints submitted under the Interim Procedure under
requirements of the Independent Offices Appropriation Act of 1952,
31 U.S.C. 9701 and Office of Management and Budget Circular A-25,
User Charges. Currently, however, there is no fee. If the Commission
believe that imposing a fee is warranted, that will be done through
the Administrative Procedure Act's rulemaking procedures and
published in the Federal Register.
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For these reasons, the Commission's current Interim Procedure for
Charge Complaints remains in effect. A person who wants to file a
Charge Complaint has the option to proceed under either the Interim
Procedure for Charge Complaints or under the Commission's traditional
complaint processes. The processes may not run simultaneously, however,
and filers are prohibited from filing a duplicate claim that has been
decided on the merits.
III. Rulemaking Analyses
A. Administrative Law Matters
These changes to the Code of Federal Regulations are informational
only and are intended to draw attention to the application of 46 U.S.C.
41310, a self-implementing statute, within the existing hearing
procedures of 46 CFR part 502. They are not intended to have the force
and effect of law, or to implement, interpret, or prescribe law or
policy. The rule does not change substantive standards or affect the
rights or obligations of non-agency parties. In accordance with the
Administrative Procedure Act (APA), the Commission therefore finds that
good cause exists that public comment is impracticable and unnecessary,
5 U.S.C. 553(b)(B). For these same reasons, the Commission finds that
there is good cause to establish an effective date less than 30 days
after publication of this amendment, 5 U.S.C. 553(d)(3). This rule is
effective upon publication in the Federal Register.
The Regulatory Flexibility Act, 5 U.S.C. 601 et seq., does not
apply when notice and comment is not required by the APA or other law.
See 5 U.S.C. 601(2). The Commission is therefore not required to
complete a regulatory flexibility analysis for this action.
Additionally, the provisions of the Small Business Regulatory
Enforcement Fairness Act (SBREFA) are not applicable, see 5 U.S.C.
804(3)(C). SBREFA's definition of the term ``rule'' does not include
``any rule of agency organization, procedure, or practice that does not
substantially affect the rights or obligations of non-agency parties''.
Because this action is not intended to have the force and effect of
law, or to implement, interpret, or prescribe law or policy, it is
exempt from Executive Order 142192 and Office and Management Review
under Executive Order 12866.
B. Congressional Review Act
This action is a not a ``rule'' for purposes of the Congressional
Review Act because it is a rule of agency organization, procedure or
practice that does not substantially affect the rights and obligation
of non-agency parties.
C. Paperwork Reduction Act
This amendment does not contain any new or modified collection of
information requirements as defined by the Paperwork Reduction Act of
1995. See 5 CFR 1320.3(c).
D. National Environmental Policy Act
The National Environmental Policy Act (NEPA) is not applicable to
this action. NEPA only applies to major federal actions. The terms
``major'' and ``federal action'' each have independent force. This is
not a major federal action because it does not impact the legal rights
or obligations of non-agency parties. Alternatively, this rule is
categorically excluded under 46 CFR 504.4(a)(4) as promulgation of
procedural rules pursuant to 46 CFR part 502.
E. Executive Order 12988 (Civil Justice Reform)
This rule meets the applicable standards in E.O. 12988, ``Civil
Justice Reform,'' (61 FR 4729, Feb. 7, 1996) to minimize litigation,
eliminate ambiguity, and reduce burden.
List of Subjects in 46 CFR Part 502
Administrative practice and procedure, Claims, Equal access to
justice, Investigations, Lawyers, Maritime carriers, Penalties,
Reporting and recordkeeping requirements.
[[Page 56056]]
For the reasons discussed in the preamble, the Federal Maritime
Commission amends 46 CFR part 502 as follows:
PART 502--RULES OF PRACTICE AND PROCEDURE
0
1. Revise the authority citation for part 502 to read as follows:
Authority: 5 U.S.C. 504, 551, 552, 553, 556(c), 559, 561-569,
571-584, 591-596; 18 U.S.C. 207; 28 U.S.C. 2112(a); 31 U.S.C. 9701;
46 U.S.C. 40103-40104, 40304, 40306, 40501-40503, 40701-40706,
41101-41109, 41301-41310, 44101-44106, 46105; 5 CFR part 2635.
0
2. Amend Sec. 502.62 by revising paragraphs (a)(3)(v) and (a)(4)(iii)
and (iv) to read as follows:
Sec. 502.62 Private party complaints for formal adjudication.
(a) * * *
(3) * * *
(v) Shipping Act violation must be alleged. If the complaint fails
to indicate the sections of the Act alleged to have been violated or
clearly to state facts which support the allegations, the Commission
may, on its own initiative, require the complaint to be amended to
supply such further particulars as it deems necessary. If a complaint
concerns charges assessed by a common carrier, includes the applicable
bills of lading numbers and invoices, and alleges violation(s) of 46
U.S.C. 41104(a), 46 U.S.C. 41102, or both, the complaint or, if other
violations are alleged, those portions of the complaint concerning
charges assessed by a common carrier meeting these requirements, shall
be considered a Charge Complaint under 46 U.S.C. 41310.
(4) * * *
(iii) A complaint seeking reparations under 46 U.S.C. 41301(a) must
be filed within three years after the claim accrues. Notification to
the Commission that such a complaint may or will be filed for the
recovery of reparation will not constitute a filing within the
applicable statutory period. There is no statute of limitations for a
Charge Complaint; however, the disputed charge or fee must have been
assessed after the Ocean Shipping Reform Act of 2022 (OSRA 2022) (Pub.
L. 117-146) was enacted and became effective on June 16, 2022.
(iv) Civil penalties must not be requested in private party
complaint proceedings. Civil penalties will not be awarded in a 46
U.S.C. 41301 complaint. In the event of a finding in a 46 U.S.C. 41310
Charge Complaint that a charge does not comply with 46 U.S.C. 41104(a)
or 46 U.S.C. 41102 after submission to the Commission under 46 U.S.C.
41310(a), in accordance with 46 U.S.C. 41310(d), the Commission shall
apply a civil penalty under 46 U.S.C. 41107 to the common carrier
making such charge.
* * * * *
0
3. Revise Sec. 502.301 to read as follows:
Sec. 502.301 Statement of policy.
(a) Complaints. Section 41301 of title 46 of the United States Code
permits any person to file a complaint with the Commission claiming a
violation occurring in connection with the foreign commerce of the
United States and to seek reparation for any injury caused by that
violation.
(b) Charge complaints. Section 41310 of title 46 of the United
States Code permits any person to submit information concerning
complaints about charges assessed by a common carrier, so long as the
submission includes the applicable bills of lading numbers and
invoices, and alleges violations of 46 U.S.C. 41104(a), 46 U.S.C.
41102, or both. Such complaints may seek a refund of the charges
assessed.
(c) Small claims. With the consent of both parties, claims filed
under this subpart in the amount of $50,000 or less will be decided by
a Small Claims Officer appointed by the Federal Maritime Commission's
Chief Administrative Law Judge, without the necessity of formal
proceedings under the rules of this part. Civil penalties are paid
directly to the General Fund of the U.S. Treasury, are not part of the
claim, and do not have any impact of the $50,000 limit. Authority to
issue decisions under this subpart is delegated to the appointed Small
Claims Officer.
(d) Finality. Determination of claims under this subpart shall be
administratively final and conclusive.
0
4. Amend Sec. 502.302 by revising paragraph (a) to read as follows:
Sec. 502.302 Limitations of actions.
(a) Claims alleging violations of 46 U.S.C. subtitle IV (``the
Shipping Act'') must be filed within three years from the time the
cause of action accrues to obtain reparations, but claims concerning
complaints about charges under 46 U.S.C. 41310 are not subject to the
three-year limitation period.
* * * * *
For the Commission.
David Eng,
Secretary.
[FR Doc. 2026-17876 Filed 8-31-26; 8:45 am]
BILLING CODE 6730-02-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.