[Federal Register Volume 61, Number 79 (Tuesday, April 23, 1996)]
[Notices]
[Pages 17895-17896]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-9873]
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FEDERAL MARITIME COMMISSION
[Docket No. 96-08]
Longrow Shipping Limited; Possible Violations of Sections 8 and
10(b)(1) of the Shipping Act of 1984 and Commission Rule 514.1(e)(1);
Order of Investigation and Hearing
This proceeding is instituted pursuant to sections 3, 8, 10, 11 and
13 of the Shipping Act of 1984 (``1984 Act''), 46 USC app. 1702, 1707,
1709, 1710 and 1712, and the Federal Maritime Commission's
(``Commission'') regulations governing the tariffing of non-vessel-
operating common carriers, 46 CFR Part 514.
Longrow Shipping Limited (``Longrow'') is a non-vessel-operating
common carrier (``NVOCC'') incorporated in Hong Kong in 1991. Its
receiving agent in the United States and agent for service of process
is Pan-Pacific Express Corporation in California. Longrow currently
maintains a tariff, effective July 17, 1994, in the Commission's
Automated Tariff Filing and Information System. It holds an NVOCC
surety bond, issued on May 26, 1994, in the amount of $50,000.
It appears that between May 30 and July 16, 1994, Longrow may have
operated as a NVOCC without an effective tariff. During this time,
Longrow held itself out as a NVOCC providing ocean transportation from
Hong Kong to the United States in its dealings with at least five
shippers and one ocean common carrier. Section 8 of the 1984 Act, 46
USC app. 1707, provides that no common carrier may provide service in
the United States foreign trade unless the carrier first has filed a
tariff with the Commission showing all of its rates, charges and
practices. Section 8 also states that no new rates may become effective
earlier than 30 days after filing at the Commission. In promulgating
this statutory provision, Commission rule 514.9(b)(9)(i)(A), 46 CFR
514.9(b)(9)(i)(A), explains that ``[n]ew tariffs * * * shall * * * be
filed to become effective not earlier than 30 days after the date of
filing.'' According to the records maintained by the Commission's
Bureau of Tariffs, Certification and Licensing, Longrow did not have an
effective tariff until July 17, 1994. Commission rule 514.1(e)(1), 46
CFR 514.1(e)(1), provides that ``[o]perating without an effective
tariff on file with the Commission * * * is unlawful.'' Therefore, it
would appear and Longrow, by providing and holding out to the public to
provide transportation by water of cargo for compensation and by
contracting as a shipper in relation to a common carrier for the
transportation of cargo of other persons, may have acted as a NVOCC
without an effective tariff, in violation of section 8 of the 1984 Act
and Commission rule 514.1(e)(1).
After Longrow's tariff became effective, Longrow transported
between July 17, 1994 and February 21, 1995, at least twenty (20)
shipments from Hong Kong to the United States. For those shipments,
Longrow appears to have charged rates other than those shown in
Longrow's tariff. Pursuant to section 10(b)(1), 46 USC app. 1709(b)(1),
the 1984 Act maintains that a common carrier is prohibited from
charging, demanding, collecting or receiving greater, less or different
compensation for transportation of property than the rates shown in its
tariffs or service contracts. This prohibition is reiterated in
Commission rule 514.1(e)(1) which states that ``charging rates not in
conformance with such a tariff is lawful.'' Therefore, Longrow may have
violated section 10(b)(1) of the 1984 Act and Commission rule
514.1(e)(1) by charging rates other than those shown in its tariff
between July 17, 1994 and February 21, 1995.
Section 11 of the 1984 Act, 46 USC app. 1710, sets forth the
Commission's authority to investigate any conduct that may be in
violation of the 1984 Act. In the event violations are found, section
13 of the 1984 Act, 46 USC app. 1712, provides that the Commission may
assess civil penalties for violations of the 1984 Act and the
regulations issued thereunder.
Now therefore it is ordered, That pursuant to sections 3, 8, 10,
11, and 13 of the 1984 Act, 46 USC app. 1702, 1707, 1709, 1710, and
1712, an investigation is hereby instituted to determine:
(1) Whether Longrow Shipping Limited violated section 8 of the 1984
Act and Commission rule 514.1(e)(1), by providing common carrier
services without an effective tariff filed at the Commission between
May 30, 1994 and July 16, 1994;
(2) Whether Longrow Shipping Limited violated section 10(b) of the
1984 Act and Commission rule 514.1(e)(1), by failing to charge the
rates shown in its tariff between July 17, 1994 and February 21, 1995;
(3) Whether, in the event Longrow Shipping Limited violated
sections 8 and 10(b) of the 1984 Act and Commission rule 514.1(e)(1),
civil penalties should be assessed and, if so, the amount of such
penalties;
It is further ordered, That a public hearing be held in this
proceeding and that this matter be assigned for hearing before an
Administrative Law Judge of
[[Page 17896]]
the Commission's Office of Administrative Law Judges in compliance with
Rule 61 of the Commission's Rules of Practice and Procedure, 46 CFR
502.61. The hearing shall include oral testimony and cross-examination
in the discretion of the Presiding Administrative Law Judge only upon a
proper showing that there are genuine issues of material fact that
cannot be resolved on the basis of sworn statements, affidavits,
depositions, or other documents or that the nature of the matters in
issue is such that an oral hearing and cross-examination are necessary
for the development of an adequate record;
It is further ordered, That Longrow Shipping Limited is designated
Respondent in this proceeding;
It is further ordered, That the Commission's Bureau of Enforcement
is designated a party to this proceeding;
It is further ordered, That notice of this Order be published in
the Federal Register, and a copy be served on parties of record;
It is further ordered, That other persons having an interest in
participating in this proceeding may file petitions for leave to
intervene in accordance with Rule 72 of the Commission's Rules of
Practice and Procedure, 46 CFR 502.72;
It is further ordered, That all further notices, orders, and/or
decisions issued by or on behalf of the Commission in this proceeding,
including notice of the time and place of hearing or prehearing
conference, shall be served on parties of record;
It is further ordered, That all documents submitted by any party of
record in this proceeding shall be directed to the Secretary, Federal
Maritime Commission, Washington, D.C. 20573, in accordance with Rule
118 of the Commission's Rules of Practice and Procedure, 46 CFR
502.118, and shall be served on parties of record;
It is further ordered, That in accordance with Rule 61 of the
Commission's Rules of Practice and Procedure, the initial decision of
the Administrative Law Judge shall be issued by April 16, 1997, and the
final decision of the Commission shall be issued by August 14, 1997.
By the Commission.
Joseph C. Polking,
Secretary.
[FR Doc. 96-9873 Filed 4-22-96; 8:45 am]
BILLING CODE 6730-01-M
