[Federal Register Volume 62, Number 72 (Tuesday, April 15, 1997)]
[Rules and Regulations]
[Pages 18275-18277]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-9631]


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PANAMA CANAL COMMISSION

35 CFR Parts 103 and 104

RIN 3207-AA40


Preference in the Transit Schedule/Order of Transiting Vessels; 
Passenger Steamers Given Preference in Transiting

AGENCY: Panama Canal Commission.

ACTION: Interim rule.

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SUMMARY: This document announces a test of a revised vessel transit 
reservation system. The interim rule to be tested incorporates certain 
new features, including increasing the number of available reserved 
transit slots, creation of a third booking period, establishment of new 
booking fees for transit reservations whenever the total number of 
vessels awaiting transit is excessively high, and clarification and 
refinement of procedures concerning cancellations, refunds, and 
penalties.
    The revised vessel transit reservation system to be tested also 
makes certain passenger vessels seeking preference over other vessels 
in transiting the Panama Canal, that heretofore were exempt, subject to 
this interim rule.

DATES: The test and the effective date of the interim rule shall 
commence at 2:00 p.m. (1400 hours) April 21, 1997.

ADDRESSES: Written comments concerning any aspect of the test should be 
directed to John A. Mills, Secretary, Panama Canal Commission, 1825 I 
Street, NW, Suite 1050, Washington, DC 20006-5402, Telephone (202) 634-
6441, Fax (202) 634-6439, Internet E-Mail: <a href="/cdn-cgi/l/email-protection" class="__cf_email__" data-cfemail="6030010e23010e010c372f20212f2c4e232f2d4e">[email protected]</a>

FOR FURTHER INFORMATION CONTACT: John A. Mills, Secretary, Panama Canal 
Commission, 1825 I Street, NW, Suite 1050, Washington, DC 20006-5402, 
Telephone: (202) 634-6441, Fax (202) 634-6439, Internet E-Mail: 
<a href="/cdn-cgi/l/email-protection" class="__cf_email__" data-cfemail="3a6a5b54795b545b566d757a7b75761479757714">[email protected]</a>

SUPPLEMENTARY INFORMATION: Section 1801 of the Panama Canal Act of 
1979, as amended (22 U.S.C. 3811), authorizes the Panama Canal 
Commission (PCC) to prescribe and, from time to time, amend regulations 
governing the passage and control of vessels through the Panama Canal 
or any part thereof, including the locks and approaches thereto. This 
interim rule constitutes such a regulation.
    Articles II and III of the Treaty Concerning the Permanent 
Neutrality and Operation of the Panama Canal expressly provides for 
payment of tolls and other charges for transit and ancillary services 
that are just, reasonable, equitable and consistent with international 
law. The booking fees that are a component of this interim rule are for 
transit and ancillary services.
    This interim rule involves public property, the Panama Canal, and, 
therefore, is excluded from coverage of the Administrative Procedures 
Act. 5 U.S.C. 553(a)(2). Nevertheless, in implementing this interim 
rule, PCC has elected to proceed in a manner generally consistent with 
the provisions of the Administrative Procedures Act concerning notice 
of proposed rule making.
    On March 5, 1997, PCC published in the Federal Register (Volume 62, 
Number 43, Pages 9997-10000), a notice of proposed rule with request 
for comments concerning a test of this interim rule. During the 30-day 
comment period, PCC received a number of written submissions from 
interested persons.
    PCC considered all data, views, comments and suggestions submitted, 
some of which remain under consideration and will be assessed in light 
of the test results.
    PCC believes this interim rule is the best mechanism for fairly 
testing the various new features of the revised vessel transit 
reservation system, and will thus enable PCC at the end of the test to 
make informed, objective assessments concerning which system features 
are mutually beneficial to PCC and its customers. Depending on the test 
results, PCC may modify this interim rule in some aspects prior to 
implementation of the final rule.
    To insure thoroughness in testing this interim rule, throughout the 
test period, PCC solicits detailed, objective data concerning the 
operational and economic impact of this interim rule on Canal 
customers.
    The test of the revised Panama Canal Vessel Transit Reservation 
System will commence at 2:00 p.m. (1400 hours), on April 21, 1997. The 
test will be 120 days or longer in duration.
    PCC strongly encourages all interested persons to submit written 
data, views or arguments anytime during the test period. All will be 
considered by PCC. Whenever suggested revisions to the interim rule are 
indicated, revisions based thereon will be incorporated into the final 
rule to be published at the conclusion of the test.
    PCC is exempt from Executive Order 12866. The provisions of that 
directive, therefore, do not apply to this interim rule. Even if the 
Order was applicable, this interim rule would not have any significant 
economic impact on any substantial number of small entities under the 
Regulatory Flexibility Act of 1980.
    Additionally, PCC has determined that implementation of this 
interim rule will not have an adverse effect on competition, 
employment, investment, productivity, innovation, or the ability of the 
U.S.-based enterprises to compete with foreign-based enterprises in 
domestic or export markets.

[[Page 18276]]

    The Secretary of PCC certifies that these regulatory changes meet 
the applicable standards contained in sections 3(a) and 3(b)(2) of 
Executive Order No. 12988 of February 7, 1996.

List of Subjects in 35 CFR Parts 103 and 104

    Panama Canal, Reporting and recordkeeping requirements, Vessels.

    Chapter I of 35 CFR is amended by removing Secs. 103.8 and 103.9 
and adding a new Part 104, to read as follows:

PART 104--VESSEL TRANSIT RESERVATION SYSTEM

Sec.
104.1  Applicability and scope.
104.2  Definitions.
104.3  Booking periods; allocation of booking slots.
104.4  Booked transits.
104.5  Passenger vessel preference.
104.6  Booking fees.
104.7  Penalties.
104.8  Re-scheduling.
104.9  Cancellations.
104.10  Regular transits.
104.11  Temporary suspension of system.
104.12  Further implementation.

    Authority: 22 U.S.C. 3811.

Sec. 104.1  Applicability and scope.

    Subject to the limitations imposed by Article III of the 1901 
Treaty to Facilitate the Construction of a Ship Canal, entered into by 
the United States and Great Britain, and by Articles II and VI of the 
1977 Treaty concerning the Permanent Neutrality and Operation of the 
Panama Canal, between the United States and the Republic of Panama, 
Canal authorities have implemented a vessel transit reservation system 
that allows vessels desiring transit of the Panama Canal to reserve 
transit slots by complying with the provisions of this part.


Sec. 104.2  Definitions.

    (a) Booked for transit means that a vessel, in advance of arriving 
at the Canal, has been assigned a specific date by Canal authorities on 
which it will be moved through the Canal and that the vessel has 
otherwise complied with the provisions of this part.
    (b) Regular transit means movement through the Canal of a vessel 
that has not been booked for transit.
    (c) Required arrival time means the date and the hour of the day 
established by Canal authorities as the deadline by which a vessel 
booked for transit must arrive at a terminus of the Canal in order to 
transit on its reserved transit date.


Sec. 104.3  Booking periods; allocation of booking slots.

    (a) Vessel agents only may request reserved transit slots for 
vessels during the following booking periods:
    (1) First period--365 to 22 days prior to the requested transit 
date.
    (2) Second period--21 days to 4 days prior to the requested transit 
date.
    (3) Third period--3 to 2 days prior to the requested transit date.
    (b) A total of 21 reserved transit slots will be made available for 
all three booking periods, allocation of which among the booking 
periods is to be determined by Canal authorities. Canal authorities, 
from time to time, may adjust the total number of available reserved 
transit slots to ensure continued safe and efficient operation of the 
Canal.


Sec. 104.4  Booked transits.

    (a) The specific order vessels transit the Canal, whether booked or 
regular transits, shall be determined by Canal authorities. Except as 
provided in this part, a vessel booked for transit may not transit 
prior to its reserved transit date, unless Canal authorities determine 
that assigning the vessel an earlier transit slot would not impair safe 
and efficient operation of the Canal.
    (b) Notwithstanding any subsequent assignment of an earlier transit 
slot, a vessel booked for transit will be charged the prescribed 
booking fee.
    (c) Substitution of reserved transit slots between or among vessels 
booked for transit will be permitted only on conditions specified by 
Canal authorities.


Sec. 104.5  Passenger vessel preference.

    To the extent consistent with efficient operation of the Canal, and 
subject to being booked for transit, commercial passenger vessels 
running on fixed published schedules will be given preference over 
other vessels in transiting, as determined by Canal authorities.


Sec. 104.6  Booking fees.

    (a) The booking fee for reserving a transit slot for a vessel 
measured in accordance with Sec. 135.13(a) of this chapter, shall be 
$0.26 per PC/UMS Net Ton.
    (b) The booking fee for reserving a transit slot for a vessel 
subject to transitional relief measures and measured in accordance with 
Sec. 135.13(b) of this chapter, shall be $0.23 per Panama Canal Gross 
Ton, as specified on the last tonnage certificate issued to the vessel 
by Canal authorities between March 23, 1976 and September 30, 1994, 
inclusive.
    (c) Notwithstanding any contrary provision, whenever the total 
number of vessels awaiting transit at both terminuses of the Canal is 
projected by Canal authorities to be, within 48-hours, 90 or more 
vessels, any vessel booked for transit that transits the Canal while 
this condition is in effect shall automatically be assessed a booking 
fee of $0.69 per PC/UMS Net Ton.
    (d) Notwithstanding any contrary provision, the minimum booking fee 
for any vessel booked for transit shall be $1500.


Sec. 104.7  Penalties.

    (a) The reserved transit slot of a vessel booked for transit will 
be cancelled by Canal authorities and a penalty fee assessed in a sum 
that is the greater of the prescribed booking fee or $1,500, in the 
following situations:
    (1) When a vessel that is subject to transit restrictions (e.g., 
clear cut, clear-cut daylight) has been booked for transit and does not 
arrive at a terminus of the Canal by 0200 hours of the day of the 
scheduled transit;
    (2) When a vessel that is not subject to transit restrictions has 
been booked for transit and does not arrive at a terminus of the Canal 
by 1400 hours of the day of the scheduled transit; or
    (3) When a vessel booked for transit arrives on time but cannot or, 
at the vessel operator's election, does not transit as scheduled, 
despite the readiness of Canal authorities to proceed.
    (b) Canal authorities may waive assessment of a penalty fee if the 
vessel agent presents acceptable proof that late arrival of the vessel 
was due to a medical or humanitarian emergency arising during the 
voyage, or a naturally occurring, extraordinary phenomenon or event of 
major proportions that could not have been reasonably predicted in 
advance.
    (c) Failure of the vessel agent to provide complete and accurate 
information required by Canal authorities when requesting transit 
bookings may result in rejection of the booking request or cancellation 
of the vessel's reserved transit slot.
    (d) When a vessel's reserved transit slot is cancelled, and unless 
otherwise directed by the vessel agent, upon arrival, Canal authorities 
will re-schedule the vessel for regular transit.


Sec. 104.8  Re-scheduling.

    (a) Except as otherwise provided, a vessel agent, without penalty, 
may request cancellation of a vessel's reserved transit slot and 
rescheduling of the vessel for regular transit or, alternatively, may 
request assignment of

[[Page 18277]]

an alternate reserved transit slot, in the following situations:
    (1) If for whatever reason Canal authorities cancel or 
significantly delay the transit of a vessel booked for transit that is 
otherwise ready to proceed as scheduled;
    (2) If for whatever reason Canal authorities delay the transit of a 
vessel booked for transit to such a degree that the delay is likely to 
cause the vessel to be unable to meet its required arrival time for a 
later, second reserved transit, booked before the delay of the first 
reserved transit occurred; or
    (3) If a vessel is booked for transit on the assumption that the 
vessel will pay the booking fee prescribed by Sec. 104.6(a) or (b) but, 
subsequently, a change in traffic conditions occurs triggering the 
higher booking fee prescribed by Sec. 104.6(c).
    (b) A vessel booked for transit will be deemed to have transited 
the Canal on its reserved transit date if the vessel arrives at the 
first set of locks at either terminus of the Canal prior to 2400 hours 
that day and its in-transit time (ITT) is 18 hours or less. ITT begins 
when the vessel enters the first set of locks at either Canal terminus 
and ends when the vessel departs the last set of locks at the opposite 
terminus. No booking fee will be charged if ITT, through no fault of 
the vessel, exceeds 18 hours.


Sec. 104.9  Cancellations.

    (a) A vessel agent may cancel the transit reservation of a vessel 
by giving notice prescribed by Canal authorities. In such event, and 
except as otherwise provided, a cancellation fee will be charged. The 
amount of the fee will depend on the amount of notice (days or hours) 
received by Canal authorities in advance of the vessel's required 
arrival time, according to the following schedule:

------------------------------------------------------------------------
                                               Cancellation fee  (the   
          Advance notice  periods                    greater of)        
------------------------------------------------------------------------
31 days or more...........................  None                        
30 to 11 days.............................  20% of booking fee or $500  
10 to 7 days..............................  40% of booking fee or $750  
6 to 2 days...............................  60% of booking fee or $1,000
1 day to 8 hours..........................  80% of booking fee or $1,200
------------------------------------------------------------------------

    (b) Receipt of notice of cancellation of a transit reservation by 
Canal authorities after the vessel's required arrival time will result 
in levy of a cancellation fee equal to the entire prescribed booking 
fee.


Sec. 104.10  Regular transits.

    Vessels not booked for transit will be scheduled for movement 
through the Canal on the date and in the order determined by Canal 
authorities. In establishing the daily schedule of vessels to be moved 
through the Canal, the order in which vessels arrive is only one of 
several considerations. In general, regular transits will equal or 
exceed in number, one-half the total number of daily vessel transits.


Sec. 104.11  Temporary suspension of system.

    (a) Canal authorities may temporarily suspend, in whole or in part, 
for whatever period of time deemed necessary, the vessel transit 
reservation system established by this part, whenever Canal authorities 
determine that such action is necessary to ensure continued safe and 
efficient operation of the Canal.
    (b) No penalty or fee shall be levied against any vessel booked for 
transit whose reserved transit slot is cancelled by reason of a 
temporary suspension of the system pursuant to this section.


Sec. 104.12  Further implementation.

    (a) In order to ensure safe and efficient operation of the system, 
Canal authorities may establish additional policies and procedures, 
define additional terms and issue clarifications and interpretations 
not inconsistent with the provisions of this part, which will be 
published and distributed periodically to Canal customers through 
notices to shipping or other appropriate means.
    (b) In the event any provision of this part conflicts with any 
implementation provision issued pursuant to this section, the 
provisions of this part shall govern.

    Dated: April 10, 1997.
John A. Mills,
Secretary, Panama Canal Commission.
[FR Doc. 97-9631 Filed 4-14-97; 8:45 am]
BILLING CODE 3640-04-P


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