[Federal Register Volume 89, Number 1 (Tuesday, January 2, 2024)]
[Rules and Regulations]
[Pages 25-33]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-27783]


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FEDERAL MARITIME COMMISSION

46 CFR Part 520

[Docket No. FMC-2022-0067]
RIN 3072-AC86


Carrier Automated Tariffs

AGENCY: Federal Maritime Commission.

ACTION: Final rule.

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SUMMARY: The Federal Maritime Commission (Commission) amends its 
regulations governing Carrier Automated Tariffs. The final rule removes 
the option for common carriers to charge a fee to access their tariff; 
allow non-vessel-operating common carriers (NVOCCs) to cross-reference 
certain aspects of other carriers' terms in their tariffs; clarify the 
ability for NVOCCs to reflect increases in certain charges passed-
through by other entities without notice; revise regulations to specify 
permissible relationships between NVOCCs for the co-loading of cargo, 
and makes other miscellaneous updates and clarifications to the 
regulation, including removing outdated citations.

DATES: This final rule is effective on February 1, 2024.

ADDRESSES: You may use the Federal eRulemaking Portal at 
www.regulations.gov to view background documents or comments received 
in Docket No. FMC-2022-0067.

FOR FURTHER INFORMATION CONTACT: Amy Strauss, Acting Secretary; Phone: 
(202) 523-5725; Email: <a href="/cdn-cgi/l/email-protection#deadbbbdacbbaabfaca79eb8b3bdf0b9b1a8"><span class="__cf_email__" data-cfemail="c6b5a3a5b4a3b2a7b4bf86a0aba5e8a1a9b0">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION:

I. Discussion

    On May 10, 2022, the Commission issued a Notice of Proposed 
Rulemaking (NPRM) seeking comment on proposed changes to Commission 
regulations in 46 CFR part 520.\1\ In response to the NPRM, the 
Commission received ten sets of comments from interested parties: The 
National Customs Brokers and Forwarders Association of America, Inc 
(NCBFAA); New York New Jersey Foreign Freight Forwarders & Brokers 
Association, Inc. (NYNJFFF&BA); Charles E. Schmidt; Kintetsu World 
Express (U.S.A.), Inc., an NVOCC; Yang Ming Marine Transport Corp., a 
vessel-operating common carrier (VOCC); Mohawk Global, an NVOCC; UWL, 
an NVOCC; C.H. Powell, an NVOCC; APL Logistics, Ltd., an NVOCC; and 
Ascent Global Logistics, an NVOCC. These comments are addressed in the 
discussion that follows.
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    \1\ Notice of Proposed Rulemaking--Carrier Automated Tariffs, 87 
FR 27971 (May 10, 2022). Prior to the publication of the May 2022 
proposal, the Commission published an Advance Notice of Proposed 
Rulemaking seeking input on how to revise its tariff regulations to 
help address the inconsistent manner in which carriers were 
interpreting and applying these regulations. See Advance Notice of 
Proposed Rulemaking (ANPRM)--Carrier Automated Tariffs, 86 FR 18240 
(April 8, 2021).
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A. Tariff Access Fees

    With one exception, commenters that addressed the proposed rule 
requiring common carriers to provide free access to their tariff 
systems supported the rule. Kintetsu World Express favored continuing 
to allow a fee to be assessed, asserting that tariff publishers that 
currently charge an access fee to the public will likely attempt to 
recover lost revenue from their common carrier customer if they can no 
longer charge a third party for tariff access. Kintetsu at 2. See also 
NYNJFF&BA at 2 (noting that carriers who use third party providers will 
most likely assess a fee to cover cost of access to their service). The 
Commission considered Kintetsu's concern that the proposed rule may 
lead to higher fees from its tariff publisher because the tariff 
publisher can no longer charge a third party for access. However, the 
Commission is not persuaded by Kintetsu's concern. Carriers have been 
required to publish tariffs for decades. See 46 U.S.C. 40501. Some 
carriers choose to publish these tariffs on their own website, and some 
choose to use a tariff publisher--and in Kintetsu's case, it decided 
that the best way to comply with the Commission's requirements was to 
pay a tariff publisher.\2\ Kintetsu did not provide information about 
what it would cost to publish the tariffs on Kintetsu's own website \3\ 
or a comparison of how much more Kintetsu would pay a tariff publisher 
if the tariff publisher could not charge a fee for access. Further, 
Kintetsu's concerns were not supported by similar concerns from NCBFAA 
or NYNJFFF&BA, entities that represent many similar NVOCCs. Based on 
this record, the Commission is not persuaded by Kintetsu's concern and 
maintains its position that it is reasonable to not charge a fee for 
tariff

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access. The Commission continues to believe that cost barriers to 
public tariff access are contrary to the goal of ensuring the 
availability of shipping information, and advances in technology since 
the regulation was implemented over two decades ago mean that free 
tariff access is now reasonable. Accordingly, the Commission amends its 
regulations to remove the option to charge a fee for tariff access 
currently found at 46 CFR 520.9(e)(3).
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    \2\ It appears that the benefits of using a tariff publisher go 
beyond simply providing a website for publication as tariff 
publishers advertise expert help in complying with Commission 
regulations and cost efficiency from outsourcing for that expertise. 
Thus, the decision to use a tariff publisher may include more 
considerations than simply the cheapest way to post tariffs 
publicly.
    \3\ Kintetsu does have a public website that appears to be 
maintained and up to date, as there are articles from August 2023. 
See https://www.kwe.com/ (last accessed August 16, 2023).
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B. Cross-Referencing Tariffs

    With respect to its proposal regarding the cross-referencing of 
tariffs that would be part of 46 CFR 520.7(a)(3)(iv), commenters 
NYNJFF&BA; NCBFAA; C.H. Powell; Ascent Global Logistics; and Mohawk 
Global expressed concern with allowing an NVOCC to cross-reference an 
ocean common carrier tariff in its own tariff for the purpose of 
charging its shipper the ocean common carrier's surcharges and 
assessorial charges. These concerns centered on two main issues. First, 
the asserted burden placed on the NVOCC to list in its tariff all named 
VOCC surcharges and provide links to those VOCC tariffs would be too 
great. Second, NVOCC commenters expressed an unwillingness to disclose 
to their shippers the identities of the VOCCs they use. See NYNJFF&BA 
at 2-3; NCBFAA at 2-3; C.H. Powell at 2; Ascent Global Logistics at 1; 
and Mohawk Global at 4-5.
    The Commission addresses these comments by clarifying that under 
the new Sec.  520.7(a)(3)(iv), when an NVOCC cross-references a VOCC 
tariff, the requirement to list the charges which may be passed through 
is satisfied by publishing in the NVOCC tariff a list of names which 
may encompass a category of charges--for example, a ``Bunker 
Surcharge'' may include Low Sulphur Fuel Charges and Fuel Recovery 
Surcharges. In addition, the NVOCC tariff need only reference that 
these charges may be assessed at cost per the underlying VOCC's 
governing tariff, rather than cite a specific VOCC name and/or tariff. 
To ensure the clarity of the filing requirement, the Commission has 
revised the wording of the new rule to state that categories of charges 
may be listed in the NVOCC's tariff.
    The Commission also notes the comment by NYNJFF&BA that shipper 
transparency would be served by including a statement on a Negotiated 
Rate Arrangement (NRA) quotation, or in the NVOCC Rules tariff that 
verification of pass-through charges can be provided upon request. 
NYNJFF&BA at 3. While not in the scope of this rulemaking, the 
Commission nonetheless encourages NVOCCs to implement this practice as 
a means of providing confirmation of the type and amount of charge(s) 
passed through for payment by the shipper.

C. Charges Passed Through to NVOCCs by VOCCs

    A comment received by NYNJFF&BA with respect to charges passed 
through by NVOCCs to their shipper after being imposed on a VOCC by an 
outside entity reflects the same concern in reference to the name and 
type of VOCC-originated charges passed through to NVOCCs discussed in 
Section B. NYNJFF&BA at 3-4. The Commission therefore is making the 
same revision to the new rule at Sec.  520.7(h) to state that 
categories of charges may be listed.
1. General Rate Increases
    As discussed in the NPRM, the Commission has historically 
classified General Rate Increases (GRIs) as a component of the base 
ocean freight assessed by the common carrier, not a charge or 
surcharge, and therefore would not be subject to an exemption under 
Sec.  520.7(a)(3)(iv) as proposed in the NPRM. In its comments, the 
NYNJFF&BA opposed the exclusion of GRIs as a charge that may be passed 
through by an NVOCC. NYNJFF&BA at 4-5. The NYNJFF&BA asserted that VOCC 
GRIs should be allowed to be passed through in the same way as other 
``rapidly changing and proliferating VOCC charges.'' NYNJFF&BA also 
notes that current regulations governing NRAs allow an NVOCC to apply 
GRIs in the same way as surcharges and accessorial charges. NYNJFF&BA 
at 4. Comments from the NYNJFF&BA and NCBFAA added that VOCC GRIs are 
often announced with the required 30-day notice but are reduced or 
delayed just prior to the effective date. NYNJFF&BA at 4-5; NCBFAA 
ANPRM Comment at 6. These comments also indicated that, should the 
NVOCC publish an increase in line with the VOCC's published GRI, the 
underlying shipper may be subject to the increase, regardless of a 
last-minute reduction or delay in effective date by the VOCC, if the 
NVOCC does not file a coinciding reduction or delay in its own tariff. 
Based on comments received and the current regulation at Sec.  
532.5(d)(2), which allows VOCC GRIs to apply to an NRA, the Commission 
is revising its regulation at Sec.  520.7(a)(3)(iv) to specify that an 
NVOCC has the option to pass through a VOCC GRI to its shipper.
2. Fees Connected to Pass-Through Charges
    In its NPRM, the Commission stated that regulations that would 
allow an NVOCC to pass through increases in certain charges without 
advance notice under specified conditions are not intended to allow a 
markup of charges above what the third party has billed. Several 
commenters asserted that NVOCCs should be allowed to charge a 
``nominal'' fee to recover the cost of the outlay of charges assessed 
by an outside entity. See NCBFAA at 4; UWL at 2; C.H. Powell at 2; 
Ascent Global Logistics at 1; Mohawk Global at 6; and NYNJFF&BA at 6. 
The Commission agrees that NVOCCs are entitled to receive compensation 
for services provided, including a fee for the advance payment of 
charges on behalf of its customer. However, the Commission's intent in 
this regard is to ensure it is clear what service charges are being 
charged to the shipper, rather than allowing the NVOCC to simply mark 
up the charges assessed by the VOCC. Therefore, the regulation at Sec.  
520.7(a)(3)(iv) has been revised to specify that fees from the NVOCC 
should be separate and distinguished from charges that are passed 
through from the VOCC without markup, and named for the service 
provided (e.g., an ``advance payment charge'').

D. Co-Loaded Cargo

    The Commission received comments on its proposal to revise the 
definition of ``co-loading'' to limit this term to the act of combining 
of less-than-container-loads (LCL) of cargo. See generally APL 
Logistics at 1-2; Ascent Global at 2; C.H. Powell at 3; Kintetsu at 1; 
Mohawk Global at 6-8; NCBFAA at 6; NYNJFF&BA at 7-12; and UWL at 3. 
While some commenters suggested that limiting the definition of co-
loading to LCL would prevent full container load (FCL) co-loading, 
(see, e.g., APL Logistics at 1 and C.H. Powell at 3), this was not the 
Commission's intent. Most commenters largely favored adding a 
definition for FCL co-loading, including those supporting the laying 
out of a ``set of expectations'' for both LCL and FCL co-loading 
situations. See generally APL Logistics at 1-2; Ascent Global at 2; 
C.H. Powell at 3; Kintetsu at 1; Mohawk Global at 6-8; NCBFAA NPRM 
Comment at 6; and UWL at 3.
    The Commission recognizes that the term co-loading has come to 
encompass both (1) the combining of LCL cargo by two or more NVOCCs in 
a container, and (2) the re-selling of space for FCL cargo by one NVOCC 
to another NVOCC. In proposing to limit the

[[Page 27]]

regulatory definition of co-loading to LCL, the Commission did not 
intend to prevent arrangements between NVOCCs involving FCL. Instead, 
the purpose was to accurately describe co-loading in its traditional 
meaning as the physical combining of cargo in a single shipping 
container. The Commission could then differentiate regulations that 
apply to NVOCC co-loading arrangements that involve LCL cargo from 
those that involve FCL cargo. The Commission has ultimately decided 
that the definition of co-loading will remain unchanged, and the 
differentiations between FCL and LCL co-loaded cargo will instead be 
made through the revision of the current co-loading regulations at 
section 520.11(c), which limit the co-loading of FCL to shipper-to-
carrier relationships only. The Commission also proposed to require 
that an NVOCC that tenders cargo to another NVOCC must annotate each 
applicable bill of lading with the identity of any other NVOCC to which 
the shipment was tendered. This proposal received unanimous opposition 
that fell into two categories. First, tendering NVOCCs opposed 
disclosing to their shipper clients the names of the other NVOCCs with 
whom they work out of concern for the impact on their competitive 
commercial interests. See Yang Ming at 1; Mohawk at 9-10; Ascent at 2; 
NYNJFF&BA at 9; NCBFAA at 7; APL Logistics at 2-3; and Kintetsu at 1. 
Second, NVOCCs do not necessarily know the names of all NVOCCs to which 
the shipment has been passed before it reaches a final master NVOCC 
that contracts with the VOCC for ocean transport. See Mohawk at 10; 
Ascent at 2; and NYNJFF&BA at 9. Commenters added that annotation will 
result in a delay of documentation release as annotation would need to 
be input manually. See Yang Ming at 1 and NCBFAA at 7. APL Logistics 
and Mohawk Global also commented that they were unaware of any 
circumstance where annotation would have provided a benefit to a 
beneficiary cargo owner (BCO). See APL Logistics at 3 and Mohawk Global 
at 12. Overall, the commenters asserted that any benefit to the BCO 
gained from annotation is outweighed by the burden it places on the 
NVOCC. See generally APL Logistics at 3 and Mohawk Global at 12. See 
also NYNJFFF&BA at 9; NCBFAA at 6; and C.H. Powell at 4.
    The Commission notes that the requirement to annotate already 
applies to co-loaded cargo pursuant to Sec.  520.11(c)(2). The final 
rule does not change Commission regulations in this regard. However, 
regulations that govern the co-loading of cargo will be augmented to 
clarify the types of relationships that are allowable for the co-
loading of cargo among NVOCCs. Specifically, current regulations make 
reference to carrier-to-carrier relationships and shipper-to-carrier 
relationships between NVOCCs in a co-loading situation. These 
relationships establish the responsibility of each NVOCC as they relate 
to each other and to the beneficial cargo owner. In a shipper-to-
carrier relationship, a master NVOCC receives cargo from a tendering 
NVOCC and acts as carrier to the tendering NVOCC in issuing its house 
bill of lading and assuming legal responsibility as carrier for the 
cargo. The revisions to new paragraph 520.11(c)(2) clarify that this 
arrangement may be used for the shipment of either LCL or FCL cargo. In 
a carrier-to-carrier relationship, the NVOCCs enter into an agreement 
which establishes the terms under which the NVOCCs will share container 
space for consolidated cargo. Each NVOCC will issue its house bill of 
lading for its portion of the cargo and act as carrier to its own 
customer. The revisions to new paragraph 520.11(c)(2) clarify that 
carrier-to-carrier arrangements will limit this type of arrangement to 
LCL cargo only.

E. Other Proposed Changes to Part 520

    In addition to these changes, the Commission also made a number of 
other changes to 46 CFR 520.2-520.14 as detailed below.
1. The Commission Is Updating Citations Throughout Part 520
    The Commission is removing legacy parallel citations that provided 
the public with useful information after the codification of the 
Commission's authorities in Title 46 of the United States Code. The 
Commission is also deleting the definition of ``Act'' from the 
definition section. These citations and definition are no longer 
necessary or accurate, and the Commission is removing them.
2. Clarifying Revisions
    The Commission revises several provisions within part 520 to 
clarify when the regulations are expressing a requirement or 
obligation. Among these changes include replacing the term ``shall'' 
with the term ``must'' to clearly indicate that certain acts are 
required and to identify regulatory obligations. Similarly, the 
Commission also replaces certain usages of the term ``may'' with the 
term ``must'' to identify requirements or obligations. In addition, the 
Commission made other clarifying edits.
3. Sec.  520.2 Definitions
    To clarify the definitions in Sec.  520.2, the Commission: adds 
clarifying language to the definition of ``bulk cargo'' to explain that 
bulk ``containerized cargo tendered by the shipper'' is subject to mark 
and count and is, therefore, subject to the requirements of this part; 
amends the definition of combination rate to spell out the abbreviation 
for Tariff Rate Item; amends the definition of commodity description to 
require the description to be identified by a specific number; amends 
the definition of ``harmonized system'' to remove an outdated reference 
to the U.S. Customs Service; amends the definition of ``publisher'' to 
mean a person rather than an organization, and specify that a publisher 
is authorized to act by a common carrier; amends the definition of 
``retrieval'' to remove outdated references to dial-up 
telecommunications and a network link; amends the definition of 
``rules'' to clarify that a common carrier or a conference of common 
carriers set the tariff terms and conditions; amends the definition of 
``shipper'' to specify that ocean transportation refers to the 
transportation of cargo, to specify that the person to whom delivery is 
to be made may be a consignee, and to include the meaning of shippers' 
association; and amends the definition of ``through transportation'' to 
make it consistent with the Shipping Act's revised definition. The 
Commission also adds definitions for ``destination scope'' and ``inland 
division'' to its regulations. Finally, the Commission removes as 
unnecessary the definitions of ``joint rates,'' ``commodity description 
number,'' ``local rates,'' ``point of rest,'' and ``shippers' 
association.''
4. Sec.  520.3 Publication Responsibilities
    Pursuant to Sec.  520.3(d), the Commission requires that all common 
carriers publish a tariff in an automated tariff system and provide the 
location of that tariff to the Commission prior to the commencement of 
common carrier service. However, some NVOCCs will publish a tariff upon 
initially being licensed, but later allow the tariff to lapse and fall 
out of compliance. The Commission stated its belief that adding notice 
in Sec.  520.3 of the consequences which already exist pursuant to 46 
CFR 515.1 and 515.14 for failure to maintain a tariff could improve 
tariff compliance. 87 FR 27971, 27974 (May 10, 2021). To this end, the 
Commission adds a provision to Sec.  520.3 to specify that failing to 
maintain a tariff will result in the revocation of an NVOCC's license 
or

[[Page 28]]

suspension of a foreign-based unlicensed NVOCC's registration. In 
addition, the Commission: changes the term used for the person a common 
carrier may use to meet their publication requirements from ``agent'' 
to ``publisher''; includes the common carrier's email address in the 
list of items provided to the Commission prior to commencement of 
common carrier service pursuant to a published tariff; and defines the 
time period allowed for the common carrier to provide changes to its 
Form FMC-1 to the Commission as within 30 calendar days.
    The Commission received one comment regarding this proposal. That 
comment stated that the proposed rule seemed excessively harsh, since 
tariffs are quite complex and to subject a carrier to the penalty of a 
loss of operating authority for an inadvertent updating error would be 
excessive. See NYNJFF&BA at 13. Further, the commenter asserted that 
the industry would be better served if the Commission issued a warning 
to those NVOCCs whose tariffs are found to be non-compliant and provide 
an opportunity to remediate any failing, and that the goal is to bring 
the industry into compliance. See NYNJFF&BA at 13. The Commission does 
not accept the commenter's premise and notes that while a carrier may 
be afforded the opportunity to remedy a particular situation depending 
on the circumstances at hand, the inclusion of this provision is 
intended to convey the seriousness of the consequences that may follow 
should the common carrier fail to take action in response to the 
Commission's efforts to induce compliance. Accordingly, the Commission 
is not persuaded to revise the language in the proposed rule.
    The Commission also received general comments regarding the 
requirement to publish and maintain a tariff. These comments argued 
that tariffs are no longer relevant in light of the prevalence of 
privately negotiated agreements, and that tariffs are complex and 
difficult to navigate and do not provide transparency of rates and 
surcharges. See Mohawk Global at 1-2; NYNJFF&BA at 1-2. The Commission 
notes that the Shipping Act requires the publication of tariffs, and 
tariff publication is still necessary to protect the shipping public 
and ensure compliance with the Shipping Act.
5. Sec.  520.4 Tariff Contents
    The Commission revises Sec.  520.4(a)(3) to clarify that the ocean 
transportation intermediary that may receive compensation paid by a 
common carrier or conference is an ocean freight forwarder as defined 
by 46 U.S.C. 40102(19). In addition, the Commission uses plain language 
to reword the regulation at Sec.  520.4(a)(4) requiring that a tariff 
state each charge separately; revises Sec.  520.4(a)(5) to state that 
sample copies of bills of lading must be legible; and revises Sec.  
520.4(a)(8) to state that commodity tariffs must contain a retrievable 
commodity index.
    The Commission also deletes Sec.  520.4(e)(1), which describes 
voluntary coding for commodity descriptions. To streamline the rule and 
remove a non-mandatory regulation, the Commission deletes paragraph 
(e)(1). The Commission notes that, even with the adoption of this 
change to section 520.4, tariff publishers are still not required to 
use any numeric code to identify commodities and the Commission still 
encourages the use of the Harmonized Tariff Schedule of the United 
States for both the commodity coding and associated terminology 
(definitions). In addition, the regulations still address the use of 
numeric codes to identify commodities.
    The Commission also makes a variety of other changes to sections 
520.5 through 520.14. These changes are listed below:

--Section 520.5 (standard tariff terminology): updates the source for 
geographic names listed in tariffs.
--Section 520.6 (retrieval of information): revises the search 
capability requirement for the retrieval of tariff information to 
specify that a search for a commodity description must result in a 
commodity or retrievable commodity index list.
--Section 520.7 (tariff limitations): clarifies the date on which a new 
conference member's participation in the conference tariff becomes 
effective; specifies that the minimum time allowed to file an overage 
claim with a common carrier applies to claims filed by a shipper; 
removes a provision stipulating the methods to be used to compute the 
weight of green salted hides, in light of requirements mandated by the 
International Maritime Organization; adds a new paragraph (h) to Sec.  
520.7 to specify that NVOCCs may pass through certain charges received 
from ocean common carriers that are not under the control of the ocean 
common carrier or conferences; and clarifies that the charges must be 
clearly listed in the NVOCC's tariffs and not marked up above cost.
--Section 520.8 (effective dates): replaces the term ``destination 
grouping'' with ``destination scope'' in Sec.  520.8(b)(3) to be 
consistent with other references to ``destination scope'' used in 46 
CFR part 520.
--Section 520.9 (access to tariffs): updates this section to remove 
references to obsolete technologies.
--Section 520.10 (integrity of tariffs): revises the requirement to 
maintain historical tariff data in Sec.  520.10(a) by defining the time 
period that data must be made available to the Commission as generally 
being within 45 days of a request and making certain grammatical 
corrections to the requirement that common carriers provide tariff 
access to the Commission.
--Section 520.11 (non-vessel-operating common carriers): removes as 
unnecessary the requirement that an NVOCC must note in its tariff that 
it does not tender cargo for co-loading; removes as unnecessary the 
requirement in 520.11(c) that an NVOCC may not offer special co-loading 
rates for the exclusive use of other NVOCCs, since published tariff 
rates are available to all shippers.
--Section 520.12 (time/volume rates): clarifies the time/volume rate 
requirements and that common carriers or conferences may cancel time/
volume rates when no shipper accepts these rates within 30 days after 
the rates are published.
--Section 520.13 (exemptions and exceptions): updates the governing 
rules of this part and the requirements for Department of Defense 
cargo, updating references to a military component.
--Section 520.14 (special permission): specifies the documents required 
when requesting confidential treatment of an application for special 
permission and updates the process for submission and payment of 
applications for special permission.

    Except for those comments already noted in the preceding paragraphs 
in this section (Section E), the Commission received no comments 
opposing these proposed changes, and one comment supporting the 
proposed changes. See Mohawk Global at 12. The Commission therefore 
adopts these changes in this final rule.

II. Rulemaking Analyses and Notices

Regulatory Flexibility Act

    The Regulatory Flexibility Act, 5 U.S.C. 601-612, provides that 
whenever an agency is required to publish a notice of proposed 
rulemaking under the Administrative Procedure Act, 5 U.S.C. 553, the 
agency must prepare and make available for public comment an initial 
regulatory flexibility analysis (IRFA)

[[Page 29]]

describing the impact of the proposed rule on small entities. When an 
agency promulgates a final rule after being required to publish a 
notice of proposed rulemaking, the agency must prepare and make 
available to the public the final regulatory flexibility analysis 
(FRFA) or its summary. The IRFA and FRFA requirements, however, do not 
apply if the head of the agency certifies that the rule will not have a 
significant economic impact on a substantial number of small entities. 
To avoid duplicative or unnecessary analyses, the agency must publish 
such certification either at the time of publication of a notice of 
proposed rulemaking or at the time of publication of the final rule. 5 
U.S.C. 605. The Commission published such certification at the time of 
the publication of the notice of proposed rulemaking, along with a 
statement providing the factual basis for the certification. 87 FR at 
27975-27976.

Congressional Review Act

    The rule is not a ``major rule'' as defined by the Congressional 
Review Act, codified at 5 U.S.C. 801 et seq. The rule will not result 
in: (1) an annual effect on the economy of $100,000,000 or more; (2) a 
major increase in costs or prices; or (3) significant adverse effects 
on competition, employment, investment, productivity, innovation, or 
the ability of United States-based companies to compete with foreign 
based companies. 5 U.S.C. 804(2).

National Environmental Policy Act

    The National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 
4321-4347) requires Federal agencies to consider the environmental 
impacts of proposed major Federal actions significantly affecting the 
quality of the human environment, as well as the impacts of 
alternatives to the proposed action. When a Federal agency prepares an 
environmental assessment, the NEPA implementing regulation requires it 
to ``include brief discussions of the need for the proposal, of 
alternatives [. . .], of the environmental impacts of the proposed 
action and alternatives, and a listing of agencies and persons 
consulted.'' 40 CFR 1508.9(b). After an environmental assessment, the 
Commission issued a Finding of No Significant Impact (FONSI) which 
became final 10 days after publication of the NPRM as the Commission 
received no petition for review. The FONSI and environmental assessment 
are available for inspection on the docket at www.regulations.gov.

Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521) (PRA) 
requires an agency to seek and receive approval from the Office of 
Management and Budget (OMB) before collecting information from the 
public. 44 U.S.C. 3507. The agency must submit collections of 
information in proposed rules to OMB in conjunction with the 
publication of the notice of proposed rulemaking. 5 CFR 1320.11.
    The information collection requirements in part 520 are currently 
authorized under OMB Control Number 3072-0064. In compliance with the 
PRA, the Commission submitted the proposed revised information 
collection to the OMB. Notice of the revised information collections 
was published in the Federal Register and public comments were invited. 
See 87 FR 27971 (May 10, 2021). No comments specifically addressed the 
revised information collection in part 520. The burden calculations 
were updated as part of the evaluation of the final rule. While the 
estimated burden to the public for each component remained the same, 
the total burden hours increased. The burden hour increase is due to an 
increase in the number of entities, particularly NVOCCs, entering the 
industry. In the NPRM the Commission estimated the total person-hour 
burden at 2,509 person-hours. In this Final Rule, the total person-hour 
burden is estimated at 2,931 person-hours.

Executive Order 12988 (Civil Justice Reform)

    This rule meets the applicable standards in E.O. 12988 titled, 
``Civil Justice Reform,'' to minimize litigation, eliminate ambiguity, 
and reduce burden. Section 3(b) of E.O. 12988 requires agencies to make 
every reasonable effort to ensure that each new regulation: (1) clearly 
specifies the preemptive effect; (2) clearly specifies the effect on 
existing Federal law or regulation; (3) provides a clear legal standard 
for affected conduct, while promoting simplification and burden 
reduction; (4) clearly specifies the retroactive effect, if any; (5) 
adequately defines key terms; and (6) addresses other important issues 
affecting clarity and general draftsmanship under any guidelines issued 
by the Attorney General. This document is consistent with that 
requirement.

Regulation Identifier Number

    The Commission assigns a regulation identifier number (RIN) to each 
regulatory action listed in the Unified Agenda of Federal Regulatory 
and Deregulatory Actions (Unified Agenda). The Regulatory Information 
Service Center publishes the Unified Agenda in April and October of 
each year. You may use the RIN contained in the heading at the 
beginning of this document to find this action in the Unified Agenda, 
available at http://www.reginfo.gov/public/do/eAgendaMain.

List of Subjects in 46 CFR Part 520

    Freight, Intermodal transportation, Maritime carriers, Reporting 
and recordkeeping requirements.

    For the reasons set forth in the preamble, the Federal Maritime 
Commission amends 46 CFR part 520 as follows:

PART 520--CARRIER AUTOMATED TARIFFS

0
1. The authority citation for part 520 continues to read as follows:

    Authority:  5 U.S.C. 553; 46 U.S.C. 40101-40102, 40501-40503, 
40701-40706, 41101-41109, 46105.


0
2. Amend Sec.  520.1 by revising the last sentence of paragraph (a) and 
paragraphs (b)(2) through (4) to read as follows:


Sec.  520.1   Scope and purpose.

    (a) * * * They implement the tariff publication requirements of 46 
U.S.C. 40501-40503.
    (b) * * *
    (2) Carriers and conferences to meet their publication requirements 
pursuant to 46 U.S.C. 40501-40503;
    (3) The Commission to ensure that carrier tariff publications are 
accurate and accessible and to protect the public from violations by 
carriers of 46 U.S.C. 41101-41106; and
    (4) The Commission to review and monitor the activities of 
controlled carriers pursuant to 46 U.S.C. 40701-40706.

0
3. Amend Sec.  520.2 by:
0
a. Removing the word ``shall'' from the introductory text;
0
b. Removing the definition of ``Act'';
0
c. Revising the definitions of ``Bulk cargo'', ``Combination rate'', 
and ``Commodity description'';
0
d. Removing the definition of ``Commodity description number'';
0
e. Revising introductory text of the definition of ``Controlled 
carrier'';
0
f. Adding in alphabetical order a definition for ``Destination scope'';
0
g. Revising the definitions of ``Foreign commerce'' and ``Harmonized 
System'';
0
h. Adding in alphabetical order a definition for ``Inland division'';
0
i. Removing the definitions of ``Joint rates'' and ``Local rates'';

[[Page 30]]

0
j. Revising the definition of ``Location group,''
0
k. Removing the definition of ``Point of rest'';
0
l. Revising the definitions of ``Publisher,'' ``Retrieval'', ``Rules'', 
and ``Shipper'';
0
m. Removing definition of ``Shippers' association'';
0
n. Revising the definitions of ``Tariff number'' and ``Tariff rate 
item'';
0
o. Adding in alphabetical order a definition for ``Through date'';
0
p. Revising the definition of ``Through transportation''; and
0
q. Removing the definition of ``Thru date''.
    The revisions and additions read as follows.:


Sec.  520.2   Definitions.

* * * * *
    Bulk cargo means cargo that is loaded and carried in bulk without 
mark or count in a loose unpackaged form, having homogeneous 
characteristics. Bulk containerized cargo tendered by the shipper is 
subject to mark and count and is, therefore, subject to the 
requirements of this part.
* * * * *
    Combination rate means a rate for a shipment moving under 
intermodal transportation which is computed by the addition of a tariff 
rate item (``TRI'') and an inland rate applicable from/to inland points 
not covered by the TRI.
* * * * *
    Commodity description means a comprehensive description of a 
commodity listed in a tariff, including a brief definition of the 
commodity, that may be identified by a specific number.
* * * * *
    Controlled carrier means an ocean common carrier that is, or whose 
operating assets are, directly or indirectly owned or controlled by a 
government; ownership or control by a government will be deemed to 
exist with respect to any common carrier if:
* * * * *
    Destination scope means a location group defining the geographic 
range of cargo destinations covered by a tariff.
* * * * *
    Foreign commerce means that commerce under the jurisdiction of 
title 46 of the United States Code.
* * * * *
    Harmonized System means the Harmonized Tariff Schedule of the 
United States, published by the U.S. International Trade Commission, 
and Schedule B, administered by the U.S. Census Bureau.
    Inland division means the amount paid by a common carrier to an 
inland carrier for the inland portion of through transportation offered 
to the public by the common carrier.
* * * * *
    Location group means a logical collection of geographic points, 
ports, states/provinces, countries, or combinations thereof, which is 
primarily used to identify, by location group name, a group that 
represents tariff origin and/or destination scope and TRI origin and/or 
destination.
* * * * *
    Publisher means a person authorized by a common carrier to publish 
or amend tariff information.
* * * * *
    Retrieval means the process by which a person accesses a tariff and 
interacts with the carrier's or publisher's system on a transaction-by-
transaction basis to retrieve published tariff matter.
    Rules means the stated terms and conditions set by a common carrier 
or a conference of common carriers which govern the application of 
tariff rates, charges, and other matters.
* * * * *
    Shipper means:
    (1) A cargo owner;
    (2) The person for whose account the ocean transportation of cargo 
is provided;
    (3) The person to whom delivery is to be made (e.g., consignee);
    (4) A shippers' association, meaning a group of shippers that 
consolidates or distributes freight on a nonprofit basis for the 
members of the group to obtain carload, truckload, or other volume 
rates or service contracts; or
    (5) An NVOCC that accepts responsibility for payment of all charges 
applicable under the tariff or service contract.
* * * * *
    Tariff number means a unique three-digit number assigned by the 
publisher to distinguish it from other tariffs. Tariffs must be 
identified by the six-digit organization number plus the user-assigned 
tariff number (e.g., 999999-001) or a Standard Carrier Alpha Code 
(``SCAC'') plus the user-assigned tariff number.
    Tariff rate item (``TRI'') means a single freight rate, in effect 
on and after a specific date or for a specific time period, for the 
transportation of a stated cargo quantity, which moves from origin to 
destination under a single specified set of transportation conditions, 
such as container size or temperature.
* * * * *
    Through date means the date after which an amendment to a tariff 
element is designated by the publisher to be unavailable for use and 
the previously effective tariff element automatically goes back into 
effect.
* * * * *
    Through transportation means continuous transportation between 
origin and destination, for which a through rate is assessed and which 
is offered or performed by one or more carriers, at least one of which 
is a common carrier, between a United States port or point and a 
foreign port or point.
* * * * *

0
4. Revise Sec.  520.3 to read as follows:


Sec.  520.3   Publication responsibilities.

    (a) General. Unless otherwise exempted or excepted by Sec.  520.13, 
all common carriers and conferences must keep open for public 
inspection in automated tariff systems tariffs showing all rates, 
charges, classifications, rules, and practices between all points or 
ports on their own routes and on any through transportation route that 
has been established.
    (b) Conferences. Conferences must publish in their automated tariff 
systems rates offered pursuant to independent action by their members 
and may publish any open rates offered by their members. Alternatively, 
open rates may be published in individual tariffs of conference 
members.
    (c) Publishers. Common carriers or conferences can use publishers 
to meet their publication requirements under this part.
    (d) Notification. (1) Prior to the commencement of common carrier 
service pursuant to a published tariff, each common carrier and 
conference must electronically submit to BTA Form FMC-1 via the 
Commission's website www.fmc.gov.
    (2) The common carrier and conference must include on Form FMC-1 
its organization name, organization number, home office address, name 
and email address and telephone number of the firm's representative, 
the location of its tariffs, and the publisher, if any, used to 
maintain its tariffs.
    (3) Any changes to the above information must be transmitted to BTA 
within 30 calendar days.
    (4) The Commission will provide a unique organization number to new 
entities operating as common carriers or conferences in the U.S. 
foreign commerce.
    (e) Location of tariffs. The Commission will publish on its 
website, www.fmc.gov, a list of the locations of all common carrier and 
conference tariffs.
    (f) NVOCC failure to maintain tariff. Failure to maintain a tariff 
will result in

[[Page 31]]

revocation of an NVOCC's license or suspension of a foreign-based 
unlicensed NVOCC's registration.

0
5. Amend Sec.  520.4 by:
0
a. Removing the word ``shall'' wherever it appears and adding in its 
place the word ``must'';
0
b. Revising paragraphs (a)(3) through (5) and (8);
0
c. Removing paragraph (e)(1);
0
d. Redesignating paragraphs (e)(2) and (3) as paragraphs (e)(1) and 
(2); and
0
e. Revising newly redesignated paragraph (e)(2)(i) and paragraphs 
(f)(5), (g), and (i).
    The revisions read as follows:


Sec.  520.4   Tariff contents.

    (a) * * *
    (3) State the level of compensation, if any, to be paid by a 
carrier or conference to an ocean freight forwarder, as defined by 46 
U.S.C. 40102(19);
    (4) State separately each terminal or other charge, privilege, or 
facility under the control of the carrier or conference and any rules 
that in any way change, affect, or determine any part or the total of 
the rates or charges;
    (5) Include sample copies of any bill of lading showing legible 
terms and conditions, contract of affreightment, and/or other document 
evidencing the transportation agreement;
* * * * *
    (8) For commodity tariffs, also contain a retrievable commodity 
index, commodity descriptions, and tariff rate items.
* * * * *
    (e) * * *
    (2) * * *
    (i) Common carriers or their publishers must have at least one 
similar index entry which will logically represent the commodity within 
the alphabetical index for each commodity description it creates under 
this section. Common carriers or their publishers must create multiple 
entries in the index for articles with equally valid common use names, 
such as ``Sodium Chloride,'' ``Salt, common,'' etc.
* * * * *
    (f) * * *
    (5) Origin and destination scopes or location groups;
* * * * *
    (g) Location groups. In the primary tariff or in a governing 
tariff, a publisher may define and create groups of cities, states, 
provinces, and countries (e.g., location groups) or groups of ports 
(e.g., port groups), which can be used in the construction of TRIs and 
other tariff objects, in lieu of specifying particular place names in 
each tariff item or creating multiple tariff items which are identical 
in all ways except for place names.
* * * * *
    (i) Shipper requests. Conference tariffs must contain clear and 
complete instructions, in accordance with the agreement's provisions, 
stating where and by what method shippers can file requests and 
complaints and how they can engage in consultation pursuant to 46 
U.S.C. 40303(b)(6)-(7), together with a sample rate request form or a 
description of the information necessary for processing the request or 
complaint.
* * * * *

0
6. Revise Sec.  520.5 to read as follows:


Sec.  520.5   Standard tariff terminology.

    (a) Approved codes. The Standard Terminology Appendix contains 
codes for rate bases, container sizes, service, etc., and units for 
weight, measure and distance. They are intended to provide a standard 
terminology baseline for tariffs to facilitate retriever efficiency. 
Tariff publishers can use additional codes, if they are clearly defined 
in their tariffs.
    (b) Geographic names. Tariffs should employ locations (points) that 
are provided by the National Geospatial-Intelligence Agency or the 
Geographic Names Information System developed by the U.S. Geological 
Survey. Ports published or approved for publication in the World Port 
Index (Pub. 150) should also be used in tariffs. Tariff publishers can 
use geographic names that are currently in use and have not yet been 
included in these publications.

0
7. Amend Sec.  520.6 by
0
a. In paragraphs (a) introductory text, (c), and (d), removing the word 
``shall'' and adding in its place the word ``must''; and
0
b. Revising paragraphs (b), (e), and (f).
    The revisions read as follows:


Sec.  520.6   Retrieval of information.

* * * * *
    (b) Search capability. Publisher must provide the capability to 
search for tariff matter by non-case sensitive text search. Text search 
matches for commodity descriptions must result in a commodity or 
retrievable commodity index list.
* * * * *
    (e) Basic ocean freight. The minimum rate display for tariffs must 
consist of the basic ocean freight rate and a list of all assessorial 
charges and surcharges that apply for the retriever-entered shipment 
parameters. The tariff must indicate when other rules or charges apply 
to a shipment under certain circumstances.
    (f) Displays. All displays of individual tariff matter must include 
the publication date, effective date, amendment code (use codes in 
appendix A to this part), and object name or number. When applicable, a 
through date or expiration date must also be displayed. Use of ``S'' as 
an amendment code must be accompanied by a Commission issued special 
permission number.

0
8. Amend Sec.  520.7 by:
0
a. In paragraphs (a) introductory text, (b), and (c), removing the word 
``shall'' and adding in its place the word ``must'';
0
b. In paragraph (a)(3)(i), removing the comma at the end of the 
paragraph and adding a semicolon in its place;
0
c. In paragraph (a)(3)(ii):
0
i. Removing the word ``may'' and adding in its place the word ``can''; 
and
0
ii. Removing ``, and'' at the end of the paragraph and adding a 
semicolon in its place;
0
d. In paragraph (a)(3)(iii), removing the word ``may'' and adding in 
its place the word ``can'';
0
e. Adding paragraph (a)(3)(iv);
0
d. Removing paragraph (e).
0
e. Redesignating paragraphs (f) through (h) as paragraphs (e) through 
(g);
0
f. Revising newly redesignated paragraphs (e) and (f); and
0
g. Adding a new paragraph (h).
    The revisions read as follows:


Sec.  520.7   Tariff limitations.

    (a) * * *
    (3) * * *
    (iv) An NVOCC may cross-reference an ocean common carrier tariff 
for the purpose of charging its shipper the ocean common carrier's 
published and effective surcharges, assessorial charges, and general 
rate increases, but the NVOCC must clearly list the named charges or 
categories of charges in the NVOCC's tariff, and must not mark them up 
above cost. Any fee associated with services provided by the NVOCC to 
its shipper should be separate and distinguished from the vessel-
operating common carrier's surcharges, assessorial charges, and general 
rate increases, and specify the service for which the shipper is being 
charged.
* * * * *
    (e) Conference situations. (1) New members of a conference must 
cancel any independent tariffs applicable to the trades served by the 
conference within 90 days of membership in the conference. Individual 
conference members can publish their own separate open rate tariffs. A 
new member's participation in the conference tariff is effective on the 
date notice of membership is published in the

[[Page 32]]

conference tariff, unless a later effective date is specified.
    (2) New conference agreements have ninety (90) days within which to 
publish a new tariff.
    (f) Overcharge claims. (1) A tariff must not limit the filing of 
overcharge claims by a shipper with a common carrier to a period of 
less than 3 years from the accrual of the cause of action.
    (2) The acceptance of any overcharge claim cannot be conditioned 
upon the payment of a fee or charge.
    (3) A tariff must not require that overcharge claims based on 
alleged errors in weight, measurement, or description of cargo be filed 
before the cargo has left the custody of the common carrier.
* * * * *
    (h) Charges assessed by ocean common carriers to non-vessel-
operating common carriers. NVOCCs may pass through charges received 
from ocean common carriers for terminal services, canal tolls, 
additional charges, or other provisions which are not under the control 
of the ocean common carrier or conferences and for which the NVOCC 
merely acts as a collection agent. The charges or categories of charges 
must be clearly listed in the NVOCC's tariffs and not marked up above 
cost.


0
9. Amend Sec.  520.8 by:
0
a. Revising paragraphs (b)(3) and (4); and
0
b. In paragraph (c), removing the words ``shall be'' and adding in 
their place the word ``are''.
    The revisions read as follows:


Sec.  520.8   Effective dates.

* * * * *
    (b) * * *
    (3) The addition of a port or point to a previously existing origin 
or destination scope; or
    (4) Changes in charges which are not under the control of the 
common carrier or conference (including terminal services, canal tolls, 
additional charges, or other provisions) for which the carrier or 
conference merely acts as a collection agent for such charges and the 
agency making such changes does so without notifying the common carrier 
or conference. Ocean common carriers and NVOCCs must not mark up these 
charges above cost.
* * * * *


0
10. Revise Sec.  520.9 to read as follows:


Sec.  520.9   Access to tariffs.

    (a) Methods to access. Carriers and conferences must provide access 
to their published tariffs via the internet.
    (b) Internet connection. (1) The internet connection requires that 
systems provide a uniform resource locator (``URL'') internet address.
    (2) Carriers or conferences must ensure that their internet service 
providers provide static internet addresses.
    (c) Tariff availability. (1) Tariffs must be made available to any 
person without time, quantity, or other limitations.
    (2) Carriers and conferences must provide free access to their 
tariff publication system.
    (3) Tariff publication systems must provide user instructions for 
access to tariff information.
    (d) Federal agencies. Carriers and conferences must not assess any 
access charges against the Commission or any other Federal agency.
    (e) User identifications. Carriers and conferences must provide the 
Commission with the requisite documentation and the number of user 
identifications and passwords required to facilitate the Commission's 
access to their systems, if those systems require such identifications 
and passwords.


0
11. Amend Sec.  520.10 by revising paragraphs (a), (b), and (d) to read 
as follows:


Sec.  520.10   Integrity of tariffs.

    (a) Historical data. Carriers and conferences must keep the data 
that appeared in their tariff publication systems for a period of 5 
years from the date such information is superseded, canceled, or 
withdrawn, and must provide online access to such data for 2 years. 
After 2 years, such data must be retained online or in other electronic 
form and must be made available to any person or the Commission upon 
request within 45 days, unless otherwise agreed. Carriers and 
conferences may charge a reasonable fee for the provision of historical 
data, not to exceed the fees for obtaining such data online. Carriers 
and conferences must not charge a fee to the Commission or any other 
Federal agency.
    (b) Access date capability. Each tariff must provide the capability 
for a retriever to enter an access date, i.e., a specific date for the 
retrieval of tariff data, so that only data in effect on that date 
would be directly retrievable. This capability would also align any 
rate adjustments and assessorial charges that were effective on the 
access date for rate calculations and designation of applicable 
surcharges. The access date also applies to the alignment of tariff 
objects for any governing tariffs.
* * * * *
    (d) Access to systems. Carriers and conferences must provide the 
Commission reasonable access to their automated systems and records for 
the Commission's review.


0
12. Revise Sec.  520.11 to read as follows:


Sec.  520.11   Non-vessel-operating common carriers.

    (a) Financial responsibility. An ocean transportation intermediary 
that operates as a non-vessel-operating common carrier must state in 
its tariff publication:
    (1) That it has furnished the Commission proof of its financial 
responsibility in the manner and amount required by part 515 of this 
chapter;
    (2) The manner of its financial responsibility;
    (3) Whether it is relying on coverage provided by a group or 
association to which it is a member;
    (4) The name and address of the surety company, insurance company, 
or guarantor issuing the bond, insurance policy, or guaranty;
    (5) The number of its bond, insurance policy, or guaranty; and
    (6) Where applicable, the name and address of the group or 
association providing coverage.
    (b) Agent for service. Every NVOCC not in the United States must 
state the name and address of the person in the United States 
designated under part 515 of this chapter as its legal agent for 
service of process, including subpoenas. The NVOCC must also state that 
in any instance in which the designated legal agent cannot be served 
because of death, disability, or unavailability, the Commission's 
Secretary will be deemed to be its legal agent for service of process.
    (c) Co-loading. NVOCCs must address the following situations in 
their tariffs:
    (1) If two or more NVOCCs enter into an agreement which establishes 
a carrier-to-carrier relationship for the co-loading of cargo, then the 
existence of such agreement must be noted in the tariff. Carrier-to-
carrier relationships apply to the co-loading of less than container 
loads of cargo only.
    (2) If two NVOCCs enter into a co-loading arrangement which results 
in a shipper-to-carrier relationship, the tendering NVOCC must describe 
its co-loading practices and specify its responsibility to pay any 
charges for the transportation of the cargo. A shipper-to-carrier 
relationship is presumed to exist where the receiving NVOCC issues a 
bill of lading to the tendering NVOCC for carriage of the co-loaded 
cargo. Shipper-to-carrier relationships may apply to the co-loading of 
full container loads or less than container loads of cargo.

[[Page 33]]

    (3) An NVOCC which tenders cargo to another NVOCC for co-loading, 
whether under a shipper-to-carrier or carrier-to-carrier relationship, 
shall annotate each applicable bill of lading with the identity of any 
other NVOCC to which the shipment has been tendered for co-loading. 
Such annotation shall be shown on the face of the bill of lading in a 
clear and legible manner.


0
13. Amend Sec.  520.12 by
0
a. Revising paragraph (a);
0
b. In paragraphs (b)(2) introductory text and (d), removing the word 
``shall'' and adding in its place the word ``must''; and
0
c. Revising paragraphs (c) and (e).
    The revisions read as follows:


Sec.  520.12   Time/Volume rates.

    (a) General. Common carriers or conferences must publish in their 
tariffs rates that are conditioned upon the receipt of a specified 
aggregate volume of cargo or aggregate freight revenue over a specified 
period of time.
* * * * *
    (c) Accepted rates. Once a time/volume rate is accepted by one 
shipper, it will remain in effect for the time specified, without 
amendment. If no shipper gives notice within 30 days of publication, a 
common carrier or conference may cancel the time/volume rate.
* * * * *
    (e) Liquidated damages. Time/volume rates must not impose or 
attempt to impose liquidated damages on any shipper that moves cargo 
under the rate. Carriers and agreements must rerate cargo moved at the 
applicable tariff rate if a shipper fails to meet the requirements of 
the time/volume offer.


0
14. Amend Sec.  520.13 by:
0
a. Revising paragraphs (a), (b)(2) introductory text, (b)(3) 
introductory text, (c)(4), (d)(2) introductory text, (d)(2)(ii)(A) 
introductory text, and (d)(2)(ii)(B)(1) and (2); and
0
b. Removing paragraph (d)(2)(iii).
    The revisions read as follows:


Sec.  520.13   Exemptions and exceptions.

    (a) General. Exemptions from the requirements of this part are 
governed by 46 U.S.C. 40103 and Sec.  502.92 of this chapter.
    (b) * * *
    (2) Controlled carriers in foreign commerce. A controlled common 
carrier is exempt from the provisions of this part exclusively 
applicable to controlled carriers when:
* * * * *
    (3) Terminal barge operators in Pacific Slope states. 
Transportation provided by terminal barge operators in Pacific Slope 
states barging containers and containerized cargo by barge between 
points in the United States are exempt from the tariff publication 
requirements of subtitle IV of title 46 of the United States Code and 
the rules of this part, where:
* * * * *
    (c) * * *
    (4) Department of Defense cargo. Transportation of U.S. Department 
of Defense cargo moving in foreign commerce under terms and conditions 
negotiated and approved by the Military Surface Deployment and 
Distribution Command and published in a universal service contract. An 
exact copy of the universal service contract, including any amendments 
thereto, must be provided to the Commission in electronic format upon 
request.
* * * * *
    (d) * * *
    (2) Between Canada and U.S. The following services are exempt from 
the filing requirements of subtitle IV of title 46 of the United States 
Code and the rules of this part:
* * * * *
    (ii) * * *
    (A) Through rates. Transportation by water of cargo moving in rail 
cars between British Columbia, Canada, and United States ports on Puget 
Sound, and between British Columbia, Canada, and ports or points in 
Alaska, if the cargo does not originate in or is not destined to 
foreign countries other than Canada, and if:
* * * * *
    (B) * * *
    (1) This exemption does not apply to cargo originating in or 
destined to foreign countries other than Canada; and
    (2) The carrier will remain subject to all other provisions of the 
subtitle IV of title 46 of the United States Code.
* * * * *


0
15. Amend Sec.  520.14 by:
0
a. Revising paragraphs (a), (b), (c)(1) and (2), and (c)(3) 
introductory text;
0
b. Removing the word ``and'' at the end of paragraph (c)(3)(ii);
0
c. Removing the period at the end of paragraph (c)(3)(iii) and adding 
``; and'' in its place;
0
d. Adding paragraph (c)(3)(iv); and
0
e. Revising paragraph (d).
    The revisions and addition read as follows:


Sec.  520.14   Special permission.

    (a) General. The statute at 46 U.S.C. 40501(e) authorizes the 
Commission, in its discretion and for good cause shown, to permit 
increases or decreases in rates, or the issuance of new or initial 
rates, on less than the statutory notice. The statutes at 46 U.S.C. 
40703 and 40704(a) authorize the Commission to permit a controlled 
carrier's rates, charges, classifications, rules or regulations to 
become effective on less than 30 days' notice. The Commission may also 
in its discretion and for good cause shown, permit departures from the 
requirements of this part.
    (b) Clerical errors. Typographical and/or clerical errors 
constitute good cause for the exercise of special permission authority. 
Every special permission application must plainly specify the error and 
present clear evidence of its existence. The special permission 
application must also include a full statement of the attending 
circumstances. The special permission application must be submitted 
with reasonable promptness after publishing the defective tariff 
material.
    (c) * * *
    (1) Applications for special permission to establish rate increases 
or decreases on less than statutory notice or for waiver of the 
provisions of this part must be made by the common carrier, conference, 
or agent for publishing. Every such application must be submitted to 
the Bureau of Trade Analysis and be accompanied by a filing fee of 
$313.
    (2) Applications for special permission must be made by letter, 
submitted via mail or email, followed promptly by electronic payment of 
the filing fee.
    (3) Applications for special permission must contain the following 
information:
* * * * *
    (iv) A statement that identifies any part(s) of the application for 
which confidential treatment is sought and a justification for such 
confidential treatment. In such cases, the applicant must provide both 
a confidential version and a public version of the application.
    (d) Implementation. The authority granted by the Commission must be 
used in its entirety, including the prompt publishing of the material 
for which permission was requested. Applicants must use the special 
case number assigned by the Commission with the symbol ``S.''

    By the Commission.
Mary Thien Hoang,
Acting Secretary.
[FR Doc. 2023-27783 Filed 12-29-23; 8:45 am]
BILLING CODE 6730-02-P


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