**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

**In the Matter of** )

)

Sealand Services, Inc. ) File No. 99-SJ-023

GMDSS Station KIRF )

Aboard the Vessel *SS Sealand Hawaii* ) **NAL/Acct. No. 915SJ0001**

#  FORFEITURE ORDER

**Adopted:** March 9, 2000 **Released:** March 10, 2000

By the Chief, Enforcement Bureau:

1\. In this order, we issue a monetary forfeiture in the amount of
\$10,000 against Sealand Services, Inc. ("Sealand") for violation of
Section 362(b) of the Communications Act of 1934, as amended ("Act"), 47
U.S.C. § 360(b), and Section 80.1067(a) of the Commission's Rules
("Rules"), 47 C.F.R. § 80.1067(a). The noted violation involves
navigation of the vessel *SS Sealand Hawaii* ("Sealand") without the
required annual inspection of its Global Maritime Distress and Safety
System ("GMDSS") radio station.

2.  On March 29, 1999, the Commission's San Juan, Puerto Rico, Resident
    Agent Office issued a Notice of Apparent Liability ("NAL") in the
    amount of \$20,000 to Sealand for the noted violation. Sealand filed
    a response to the NAL requesting cancellation or reduction of the
    forfeiture. For the reasons discussed below, we reduce the
    forfeiture amount to \$10,000.

# BACKGROUND

3\. On February 26, 1999, an FCC agent ("Agent") from the San Juan
Resident Agent Office conducted an inspection[^1] of GMDSS radio station
KIRF aboard the Sealand, a 21,150 ton cargo vessel. During inspection,
the Agent found no technical deficiencies. However, the required Safety
Certificate, certifying that the vessel's radio apparatus had passed the
required annual inspection, was not available at the time of the
inspection. Following the inspection, Sealand sent the Agent a facsimile
of a Safety Certificate which had expired on October 4, 1998, and stated
that it was the most recent Safety Certificate that had been issued to
it.

4\. On March 4, 1999, the Agent issued an Official Notice of Violation
("NOV") to Sealand for violation of Section 362(b) of the Act and
Section 80.1067(a) of the Rules. In its March 12, 1999, response to the
NOV, Sealand submitted a copy of a new Safety Certificate for the
Sealand issued on March 12, 1999, and, as requested by the NOV, provided
a copy of the vessel's radio station log for the period from October 4,
1998, to March 3, 1999.

5\. Analysis of the Sealand radio station log indicates that the vessel
left port at least four times between October 4, 1998, and March 3,
1999. These departures included: October 10, 1998, from San Juan, Puerto
Rico; October 11, 1998, from Rio Haina, Dominican Republic; October 14,
1998, from Elizabeth, New Jersey; and October 19, 1998, from Rio Haina,
Dominican Republic. On each of these departures, the Sealand was
navigated without a current Safety Certificate.

6\. On March 29, 1999, the San Juan Resident Agent Office, pursuant to
Section 364(a) of the Act, 47 U.S.C. § 362(a), issued the subject NAL to
Sealand for navigating without a valid Safety Certificate, in violation
of Section 362(b) of the Act and Section 80.1067(a) of the Rules. In
Sealand's April 22, 1999, response to the NAL, Sealand requests
mitigation of the forfeiture amount and states that: the master and crew
of the Sealand believed that a Safety Certificate was no longer
required; Sealand remedied the certificate violation as soon as possible
after its discovery; Sealand is establishing a procedure to ensure that
certificate violations will not occur in the future; and it is rare for
Sealand, which operates almost 40 U.S. flag vessels, to miss the renewal
of a Safety Certificate.

**DISCUSSION**

7\. As the NAL explicitly states, the forfeiture amount in this case was
assessed in accordance with Section 364(a) of the Act, Section 1.80 of
the Rules, and *The Commission's Forfeiture Policy Statement and
Amendment of Section 1.80 of the Rules to Incorporate the Forfeiture
Guidelines*, 12 FCC Rcd 17087 (1997), *recon. denied*, FCC 99-407, (rel.
Dec. 28, 1999) ("*Policy Statement*"). Section 1.80(b)(4) of the
Commissions Rules, 47 C.F.R. § 1.80(b)(4), requires that the Commission,
in examining Sealand's response, take into account the nature,
circumstances, extent and gravity of the violation and, with respect to
the violator, the degree of culpability, any history of prior offenses,
ability to pay, and other such matters as justice may require.

8\. Under Section 351 of the Act, 47 U.S.C. § 351, vessels of 300 gross
tons or more are subject to the provisions of Title III, Part II, of the
Act. The Sealand displaces 21,150 tons and therefore is subject to those
provisions. Section 362(b) of the Act and Section 80.1067(a) of the
Rules require that every vessel which is subject to the provisions of
Title III, Part II, of the Act have its GMDSS station inspected at least
once a year. In the instant case, Sealand admits that it navigated the
Sealand in violation of Section 362(b) of the Act and Section 80.1067(a)
of the Rules. Under Section 364(a) of the Act, each departure from port
or day of navigation constitutes a separate violation. The *Policy
Statement* prescribes a base amount of \$5,500 for forfeitures imposed
pursuant to Section 364(a) of the Act.

9\. We have examined Sealand's response to the NAL in light of the
factors specified in the *Policy Statement* and in Section 1.80(b)(4) of
the Rules. The master's and crew's ignorance of the certification
requirement does not excuse or mitigate Sealand's violations. *See, eg.
J.B. Communications of Baltimore, Ltd.,* 49 FCC 2d 412 (1974*)*. The
fact that Sealand took corrective action also does not mitigate its
violations. *See generally KGVL, Inc.*, 42 FCC 2d 258, 259 (1973)
(subsequent corrective action will not excuse past violations).
Moreover, Sealand's assertion that its certificate violations are
"rare"does not provide a basis for mitigation.

10\. Sealand's navigation on at least four occasions with an expired
Safety Certificate and Sealand's failure to obtain a new certificate
until more than five months after expiration of the old certificate is a
serious offense. However, we will reduce the \$20,000 forfeiture amount
to \$10,000 because the Sealand's radio station had no technical
deficiencies and, therefore, did not jeopardize the safety of life.

11\. Taking into account all of the factors required by the *Policy
Statement* and Section 1.80 of the Rules including but not limited to
those discussed above, we conclude that the appropriate forfeiture
amount is \$10,000. **ACCORDINGLY, IT IS ORDERED** that, pursuant to
Section 364(a) of the Act, Sections 0.111, 0.311 and 1.80 of the Rules,
47 C.F.R. §§ 0.111, 0.311 and 1.80, and the Commission's *Policy
Statement*, Sealand Services, Inc., **IS LIABLE FOR A MONETARY
FORFEITURE** in the amount of \$10,000 for the willful violation of
Section 362(b) of the Act and Section 80.1067(a) of the Rules.

12\. Payment of the forfeiture shall be made in the manner provided in
Section 1.80(f) of the Rules, 47 C.F.R. § 1.80(f), within thirty (30)
days of the release of this Forfeiture Order. Payment of the forfeiture
may be made by credit card through the Commission's Credit and Debt
Management Center at (202) 418-1995 or by mailing a check or similar
instrument, payable to the order of the Federal Communications
Commission, to the Federal Communications Commission, P.O. Box 73482,
Chicago, Illinois 60673-7482. The payment should note the NAL/Acct.
number referenced above. Requests for full payment under installment
plans should be sent to: Chief, Credit and Debt Management Center, 445
12^th^ Street, S.W., Washington, D.C. 20554. Petitions for
reconsideration filed pursuant to Section 1.106 of the Rules, 47 C.F.R.
§ 1.106, or applications for review filed pursuant to Section 1.115 of
the Rules, 47 C.F.R. § 1.115, must be received by the Commission within
thirty (30) days of the release of this order at the following address:
Office of the Secretary, Federal Communications Commission, Washington,
D.C. 20554, ATTN: Technical & Public Safety Division, Enforcement
Bureau. Forfeiture penalties not paid within thirty (30) days may be
referred to the U.S. Attorney for recovery in a civil suit. 47 U.S.C. §
504(a).

13\. **IT IS FURTHER ORDERED** that a copy of this order shall be sent
by certified mail, return receipt requested, to Sealand Services, Inc.,
2721 Discovery Drive, Raleigh, North Carolina 27604.

**FEDERAL COMMUNICATIONS COMMISSION**

David H. Solomon

Chief, Enforcement Bureau

[^1]: Although the required annual inspections of GMDSS radio
    installations aboard vessels subject to the provisions of Title III,
    Part II, of the Act have been privatized, the FCC conducts
    spot-check inspections, such as the inspection in this case, to
    monitor compliance.