[Federal Register Volume 59, Number 157 (Tuesday, August 16, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-20049]
[[Page Unknown]]
[Federal Register: August 16, 1994]
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PANAMA CANAL COMMISSION
35 CFR Part 103
RIN 3207-AA36
General Provisions Governing Vessels
AGENCY: Panama Canal Commission.
ACTION: Proposed rule.
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SUMMARY: Under existing regulations, fees for booking transits at the
Panama Canal are assessed at a fixed rate per Panama Canal Gross Ton.
The Panama Canal Commission has proposed a major revision of the rules
for measurement of vessels using the Panama Canal expected to become
effective October 1, 1994. Under the proposal, the existing rules of
measurement will be replaced with the Panama Canal Universal
Measurement System (PC/UMS). PC/UMS will no longer utilize a Panama
Canal Gross Tonnage value. Accordingly, fees for the use of the transit
booking or reservation system must be assessed on some other basis.
This proposed rule recommends retention of the existing method of
calculating booking fees for vessels subject to PC/UMS transitional
relief measures and the fixing of fees for all other vessels in
reference to the PC/UMS Net Ton.
DATES: Comments must be submitted on or before August 25, 1994.
ADDRESSES: Comments may be addressed to Michael Rhode, Jr., Secretary,
Panama Canal Commission, 1825 I Street NW, Suite 1050, Washington, DC
20006-5402, (Telephone: (202) 634-6441), (Facsimile: (202) 634-6439).
FOR FURTHER INFORMATION CONTACT: Michael Rhode, Jr. at the above
address and telephone.
SUPPLEMENTARY INFORMATION: On April 18, 1994, the Panama Canal
Commission published in the Federal Register (59 FR 18332) an advance
notice of proposed rulemaking with a request for comments and a notice
of hearing with respect to a related matter--a complete revision of the
Rules for Measurement of Vessels for the Panama Canal as set forth in
35 CFR part 135. Comments were solicited and received, and a public
hearing was held May 25, 1994 in Washington, DC. The views presented by
the interested parties were considered by the Board of Directors of the
Panama Canal Commission. The Board gave final approval on July 13, 1994
to proceed with implementation of the PC/UMS. The proposed rule
together with the Board's recommendation was forwarded to the President
for his approval. The proposed rule was published in the Federal
Register on July 18, 1994 (59 FR 36398). It is expected that, on or
before August 30, the final rule will be approved by the President and
published in the Federal Register. It is scheduled to become effective
October 1, 1994.
Corresponding changes in the transit booking system regulations are
necessary to reconcile 35 CFR Sec. 103.8(e) with the aforementioned
revisions to the rules for measurement of vessels using the Panama
Canal. Under existing Sec. 103.8(e), fees for booking transits at
Panama Canal are assessed at $0.23 per Panama Canal Gross Ton. With the
expected replacement of the existing regulations on October 1, 1994, a
Panama Canal Gross Ton value will no longer exist. Instead, under the
revisions, the new PC/UMS will utilize a PC/UMS Net Ton value.
Accordingly, in order to continue using tonnage as the basis for rate
assessment for the transit booking system, fees must be assessed on the
tonnage value used in the PC/UMS. Therefore, the Commission proposes
that for vessels transiting the Canal for the first time after
September 30, 1994 transit booking fees be fixed in relation to the PC/
UMS Net Ton.
At the same time, however, the Commission desires to minimize the
financial impact of the change on the customer. As with the PC/UMS
itself, the Commission is striving for revenue-neutrality in the
aggregate and for minimal impact for the individual customer.
Therefore, the proposed rule also provides special relief measures for
vessels which have previously transited the Canal.
In the first category--vessels which have not transited the Canal
before October 1, 1994, the proposed regulation establishes a proposed
new rate of $0.26 per PC/UMS Net Ton. This rate of $0.26 per PC/UMS Net
Ton is expected to result in a booking fee near the rate assessed under
the existing system. In other words, the amount paid by an individual
vessel at $0.26 per PC/UMS Net Ton will closely approximate the amount
it would have paid at $0.23 per Panama Canal Gross Ton. The new booking
fee rate system will be applied to a limited number of vessels inasmuch
as the number of first-time transits involves a relatively small number
of vessels each year.
As noted above, the Commission's intention is to revise the rate in
a manner which maintains fees at approximately the same level as
currently paid by individual vessels. Retention of the $0.23 rate--
merely fixing fees at $0.23 per PC/UMS Net Ton--could reduce individual
booking fees as much as 20%. Inasmuch as the intent of this proposal is
solely to reconcile paragraph 103.8(e) with the new standard tonnage
measurement and not to otherwise alter the booking fees, the agency
proposes the $0.26 rate which approximates present booking fees without
increasing customer costs.
For the other and larger category--vessels which have previously
transited the Canal, the proposal retains the existing booking fee
computation method. This recommendation has its genesis in the proposed
revisions to the Rules for Measurement of Vessels using the Panama
Canal. The PC/UMS proposed rule contains transitional relief measures
which preserve existing tonnage for ships transiting the Canal between
March 23, 1976 (the date of the last significant rules change) and
September 30, 1994, inclusive. In the instant proposed rule, the
Commission proposes that the method for assessing booking fees for
these vessels be similarly retained. Vessels meeting the aforementioned
PC/UMS requirements for transitional relief which use the booking
system after September 30, 1994 will not be affected inasmuch as they
will continue to pay the same fee--$0.23 per Panama Canal Gross Ton.
For these previously-transiting vessels, the booking fee would change
only in the event the vessel undergoes a significant structural change,
defined in the PC/UMS as a change in the volume of the vessel of 10% or
more. Under the PC/UMS, a vessel undergoing a significant structural
change loses its entitlement to the relief measures and becomes subject
to application of the PC/UMS measurement formulas. In such an instance,
the new rate of $0.26 per PC/UMS Net Ton would be applied to the
vessel.
The Commission has been exempted from Executive Order 12866 and,
accordingly, the provisions of that directive do not apply to this
proposed rule. Even if the order were applicable, the proposed
regulation, which concerns ``rates'' and ``practices relating''
thereto, would not constitute a ``rule'' as that term is defined in the
Regulatory Flexibility Act (5 U.S.C. 601(2)) and would not have a
significant impact on a substantial number of small entities under that
Act.
A review of the environmental effect of the proposed measurement
rule changes concludes that the proposed change will not have a
significant effect on the quality of the human environment. An
environmental impact statement is not required under the National
Environmental Policy Act of 1969.
Finally, the Administrator of the Panama Canal Commission certifies
that these proposed regulations meet the applicable standards provided
in sections 2(a) and 2(b)(2) of Executive Order No. 12778.
List of Subjects in 35 Part 103
Advance reservations, Booking system, Order of transit, Panama
Canal, Vessels.
Accordingly, for the reasons set forth above, it is proposed that
35 CFR part 103 be amended as follows:
PART 103--GENERAL PROVISIONS GOVERNING VESSELS
1. The authority citation for part 103 is revised to read as
follows:
Authority: 22 U.S.C. 3791, E.O. 12215, 45 FR 36043, 3 CFR, 1981
Comp., p. 257.
2. Paragraph (e) of Sec. 103.8 is revised to read as follows:
Sec. 103.8 Preference in the transit schedule; order of transiting
vessels.
* * * * *
(e) Booking Fees. (1) For vessels measured in accordance with
Sec. 135.13(a) of this chapter, the fee for booking shall be $0.26 per
PC/UMS Net Ton.
(2) For vessels subject to the transitional relief measures of
Sec. 135.31 of this chapter and measured in accordance with
Sec. 135.13(b) of this chapter, the fee for booking shall be $0.23 per
Panama Canal Gross Ton as specified on the last certificate issued by
the Panama Canal Commission between March 23, 1976 and September 30,
1994, inclusive.
(3) The minimum booking fee for any vessel is $1,500.
* * * * *
(Existing collections of information are approved under Office of
Management and Budget (OMB) control number 3207-0001. Modifications are
being submitted to OMB for approval.)
Dated: August 10, 1994.
Gilberto Guardia F.,
Administrator, Panama Canal Commission.
[FR Doc. 94-20049 Filed 8-15-94; 8:45 am]
BILLING CODE 3640-04-P
