[Federal Register Volume 59, Number 96 (Thursday, May 19, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12164]
[[Page Unknown]]
[Federal Register: May 19, 1994]
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FEDERAL MARITIME COMMISSION
46 CFR Part 586
[Docket No. 91-24]
Actions to Adjust or Meet Conditions Unfavorable to Shipping in
the United States/Korea Trade
AGENCY: Federal Maritime Commission.
ACTION: Withdrawal of final rule; Discontinuance of proceeding.
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SUMMARY: The Federal Maritime Commission is withdrawing its November
13, 1992, final rule which found that unfavorable conditions existed in
the oceanborne trade between the United States and Korea, which
precluded U.S. carriers from engaging in trucking activities in Korea.
That rule imposed fees on Korean-flag vessels in the amount of $100,000
per voyage, but suspended the sanctions until June 1, 1994. The
Commission has since reviewed the progress achieved by the Government
of Korea in implementing commitments to remove the restrictions.
Inasmuch as reports from affected U.S. and Korean carriers confirm that
the impediments at issue have been removed, and all the carriers
recommend termination of the proceeding, there is no reason to continue
the proceeding or to assess fees.
EFFECTIVE DATE: May 19, 1994.
FOR FURTHER INFORMATION CONTACT: Robert D. Bourgoin, General Counsel,
Federal Maritime Commission, 800 North Capitol Street, NW., Washington,
DC 20573, (202) 523-5740.
SUPPLEMENTARY INFORMATION: This proceeding under section 19(1)(b) of
the Merchant Marine Act, 1920, 46 U.S.C. app. 876(1)(b) (``Section
19''), was initiated by the Federal Maritime Commission
(``Commission'') on June 7, 1991 (56 FR 26361), by Notice of Proposed
Rulemaking (``Proposed Rule''). The Proposed Rule raised issues
concerning apparent Government of Korea (``ROK'') restrictions on U.S.
carriers' ability to engage in trucking operations and to contract
directly for rail service in Korea incidental to intermodal commerce in
the United States/Korea trade (``Trade''). It proposed sanctions
consisting of $100,000 per voyage fees on vessels in the Trade operated
by Korean-flag carriers Hanjin Shipping Co., Ltd. and Hyundai Merchant
Marine Co., Ltd. (collectively, ``Korean Carriers'').
On the basis of comments on the Proposed Rule and several
supplemental submissions received thereafter from the Korean Carriers
and the affected U.S. carriers, Sea-Land Service, Inc. and American
President Lines, Ltd. (collectively, ``U.S. Carriers''), the Commission
published a final rule on November 18, 1992 (57 FR 54318). The final
rule found that unfavorable conditions existed in the Trade by virtue
of ROK restrictions on U.S. carriers' trucking activities. It imposed
the sanctions cited in the Proposed Rule, but suspended them until June
1, 1994, noting commitments made by the ROK in the course of bilateral
inter-governmental discussions in the summer of 1992. The suspension,
the Commission explained, would allow time for the ROK to implement the
promised changes.
In the meantime, the Commission directed that the U.S. and Korean
Carriers, including Cho Yang Shipping Co., Ltd., which was added to the
list of Korean Carriers, submit periodic reports to the Commission
regarding the ROK's implementation of its commitments. Although the
finding of unfavorable conditions was limited to the trucking issue,
the Commission directed the carriers to report as well on ROK
restrictions on rail access by the U.S. Carriers. The parties were
ordered to address enumerated issues in submissions due December 15,
1992; May 1, 1993; November 1, 1993; and May 1, 1994.
Over the course of the reporting period, the Commission was advised
that the ROK made considerable changes in its regulations and policies,
with the effect of remedying the conditions in issue. Effective May 10,
1993, regulations were amended to enable U.S. carriers to issue Bonded
Rail Transportation Permits without the need for a trucking license.
Vehicle ownership requirements for obtaining Simplified Bonded
Transportation Permits were substantially reduced. The carriers also
indicated that the ROK adhered to its promised regionally-keyed
timetable for issuing trucking licenses. All limitations on U.S.
carrier trucking operations were reportedly removed as of April 1,
1994. All five carriers, U.S. and Korean, advise that the conditions on
which the final rule is based no longer exist, and that the
Commission's objectives in this proceeding have been met.
The Commission is satisfied that there is no longer a basis for
continuing this proceeding. The final rule is accordingly withdrawn and
the proceeding discontinued.
List of Subjects in 46 CFR Part 586
Ecuador, Korea, Maritime carriers.
Therefore, part 586 of title 46 CFR is amended as follows:
1. The authority citation for part 586 continues to read as
follows:
Authority: 46 U.S.C. app. 876(1)(b); 46 U.S.C. app. 876(5)
through (12); 46 CFR Part 585; Reorganization Plan No. 7 of 1961, 26
FR 7315 (August 12, 1961).
Sec. 586.5 [Removed]
2. Section 586.5 is removed.
By the Commission.
Joseph C. Polking,
Secretary.
[FR Doc. 94-12164 Filed 5-18-94; 8:45 am]
BILLING CODE 6730-01-W
