[Federal Register Volume 60, Number 99 (Tuesday, May 23, 1995)]
[Proposed Rules]
[Pages 27248-27249]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-12512]



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FEDERAL MARITIME COMMISSION

46 CFR Part 514

[Docket No. 95-08]


Service Contract Filing Requirements--Miscellaneous Revisions

AGENCY: Federal Maritime Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Federal Maritime Commission proposes to amend its rules to 
provide an optional, abbreviated service contract format and to require 
service contracts to include certain identifying information concerning 
the signatories. This should reduce duplication and Commission and 
carrier costs, as well as facilitate automation of the Commission's 
service contract records.

DATES: Comments due June 22, 1995.

ADDRESSES: Comments (original and 15 copies) are to be submitted to: 
Joseph C. Polking, Secretary, Federal Maritime Commission, 800 North 
Capitol Street, N.W., Washington, D.C. 20573, (202) 523-5725.

FOR FURTHER INFORMATION CONTACT: Bryant L. VanBrakle, Director, Bureau 
of Tariffs, Certification and Licensing, Federal Maritime Commission, 
800 North Capitol Street, N.W., Washington, D.C. 20573, (202) 523-5796.

SUPPLEMENTARY INFORMATION: Service contracts subject to section 8(c) of 
the Shipping Act of 1984 (``1984 Act'' or ``the Act''), 46 U.S.C. app. 
1707(c),<SUP>1 are filed confidentially with the Federal Maritime 
Commission (``FMC'' or ``Commission'').<SUP>2 Prior to such filing, a 
statement of each contract's essential terms (``ET'') is filed 
electronically in the Commission's Automated Tariff Filing and 
Information System (``ATFI''), made available to the general public in 
tariff format, and offered to all similarly situated shippers.<SUP>3

    \1\ A service contract is defined by section 3(21) of the Act 
as:
    *  *  * a contract between a shipper and an ocean common carrier 
or conference in which the shipper makes a commitment to provide a 
certain minimum quantity of cargo over a fixed time period, and the 
ocean common carrier or conference commits to a certain rate or rate 
schedule as well as a defined level--such as assured space, transit 
time, port rotation, or similar service features; the contract may 
also specify provisions in the event of nonperformance on the part 
of either party.
    \2\ Section 8(c) of the 1984 Act provides:
    * * * each [service] contract entered into * * * shall be filed 
confidentially with the Commission, and at the same time, a concise 
statement of its essential terms shall be filed with the Commission 
and made available to the general public in tariff format, and those 
essential terms shall be available to all shippers similarly 
situated. The essential terms shall include--
    (1) the origin and destination port ranges in the case of port-
to-port movements, and the origin and destination geographic areas 
in the case of through intermodal movements;
    (2) the commodity or commodities involved;
    (3) the minimum volume;
    (4) the line-haul rate;
    (5) the duration;
    (6) service commitments; and
    (7) the liquidated damages for nonperformance, if any.
    \3\ This requirement is implemented in the Commission's rules 
and regulations at 46 CFR 514.7(f)(1).
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    ETs have been required to be filed in ATFI since November 1993. 
However, the associated confidential service contracts continue to be 
filed in paper format and can often be of considerable length. There is 
significant duplication between a service contract's text and that of 
its corresponding ET. To the extent the overlap between these 
interdependent documents can be minimized, the rate of error between 
the two documents should also be reduced.
    Because service contracts are filed confidentially with the 
Commission, they must be secured under lock and key. Given the rapidly 
rising number of contract filings, and their sheer physical bulk, these 
documents are consuming an ever larger portion of the Commission's 
limited secured storage space.
    Apart from the foregoing, the Commission is also proposing to 
address a ministerial detail relating to the content of service 
contracts. The current service contract rules do not require contracts 
to set forth the signatories' addresses. This has resulted in 
difficulty in clearly identifying shipper parties, including named 
affiliates, to certain service contracts, and, in some cases, hampered 
the Commission's investigative efforts.
    The Commission therefore proposes to afford service contract 
parties the option of filing their service contracts in an abbreviated 
format, on condition that such filings incorporate by reference the 
corresponding ATFI ETs; certify that said ET contains all aspects of 
the parties' contract which are not set forth in the service contract 
filing; and set forth certain specific information. The FMC also 
proposes to require service contracts to set forth the parties' names, 
titles and addresses.
    The collection of information requirements contained in this 
proposed rule have been submitted to the Office of Management and 
Budget for review under the provisions of the Paperwork Reduction Act 
of 1980 (Pub. L. 96-511), as amended. Public reporting burden for this 
collection of information is estimated to decrease to an average of one 
manhour per response, including the time for reviewing instructions, 
searching existing data sources, gathering and maintaining the data 
needed, and completing and reviewing the collection of information. 
Send comments regarding this burden estimate or any other aspect of 
this collection of information, including suggestions for reducing the 
burden, to Bruce A. Dombrowski, Deputy Managing Director, Federal 
Maritime Commission, Washington, D.C. 20573 and to the Office of 
Information and Regulatory Affairs, Office of Management and Budget, 
Washington, D.C. 20503.
    The Chairman of the Commission certifies, pursuant to section 
605(b) of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., that 
this proposed rule will not have a significant economic impact on a 
substantial number of small entities, including small businesses, small 
organizational units, and small governmental jurisdictions.
List of Subjects in 46 CFR Part 514

    Administrative practice and procedure, Antitrust, Automatic data 
processing, Cargo vessels, Confidential business information, 
Contracts, Exports, Freight, Freight forwarders, Imports, Maritime 
carriers, Penalties, Rates and fares, Reporting and recordkeeping 
requirements.
    Therefore, pursuant to 5 U.S.C. 553 and sections 3, 8, and 17 of 
the Shipping Act of 1984 (46 U.S.C. app. 1702, 1707 and 1716), the 
Federal Maritime Commission proposes to amend Part 514 of Title 46 of 
the Code of Federal Regulations as follows:

PART 514--[AMENDED]

    1. The authority citation for Part 514 continues to read:

    Authority: 5 U.S.C. 552 and 553; 31 U.S.C. 9701; 46 U.S.C. app. 
804, 812, 814-817(a), 820, 833a, 841a, 843, 844, 845, 845a, 845b, 
847, 1702-1712, 1714-1716, 1718, 1721, and 1722; and sec. 2(b) of 
Pub. L. 101-92, 103 Stat. 601.

    2. Section 514.7 is amended by revising paragraphs (h)(1)(v) and 
(h)(1)(vi) and adding paragraph (h)(2)(i)(C) to read as follows: 
[[Page 27249]] 


Sec. 514.7  Service contracts in foreign commerce.

* * * * *
    (h) * * *
    (1) * * *
    (v) The true and complete names and addresses of the contract 
parties and the typewritten names, titles and addresses of the 
representatives signing the contract for the parties. Any further 
references in the contract to such parties shall be consistent with the 
first reference (e.g., (exact name), ``carrier,'' ``shipper,'' or 
``association,'' etc.); and
    (vi) The true and complete names and addresses of every affiliate 
of each contract party named under paragraph (h)(1)(v) of this section 
entitled to receive or authorized to offer services under the contract, 
except that in the case of a contract entered into by a conference or 
shippers' association, individual members need not be named unless the 
contract includes or excludes specific members. In the event the list 
of affiliates is too lengthy to be included on the first page, 
reference shall be made to the exact location of such information.
* * * * *
    (2) * * *
    (i) * * *
    (C) Section 514.7(h)(2)(i)(A) does not apply to a service contract 
that incorporates by reference all of the associated essential terms 
filing as published in ATFI, provided that the parties certify that, 
other than for those provisions set forth in the filed service 
contract, such essential terms filing sets forth the parties' true and 
complete contract.<SUP>1

    \1\ See Exhibit II of this part for an example of an abbreviated 
format service contract.
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* * * * *
    By the Commission.
Joseph C. Polking,
Secretary.
Exhibit II to Part 514

Sample Abbreviated Format Service Contract

Service Contract No.: SC 1-95
FMC File No.: 50,000
Essentials Terms No.: ET 1-95
Amendment No.: ______
Service Contract Essential Terms Publication No.: 003
Tariff(s) of General Applicability No.: 001, 002
Carrier/Conference Name: Efficient Liner Transportation, Inc.
Carrier/Conference Address: 1227 Seaway Drive, Washington, DC 20573
    and
Shipper Name: ABC Electronics Company
Shipper Address: 7221 Happiness Lane, New York, NY 10001

    This is a service contract pursuant to the Shipping Act of 1984 
(46 U.S.C. app. 1701 et seq.) and FMC rules at 46 C.F.R. Part 514, 
between ``CARRIER/CONFERENCE'' and ``SHIPPER'' parties named herein. 
The contract parties certify that the terms set forth herein and the 
essential terms as published in Carrier/Conference Service Contract 
Essential Terms Tariff No. 003, ET No. 1-95, in the Federal Maritime 
Commission's Automated Tariff Filing and Information System, 
constitute the true and complete copy of all aspects of this 
contract and are hereby incorporated by reference.
    Further, shipper party named herein certifies its status and 
that of any affiliate(s)/subsidiary(ies) named herein as (check 
appropriate box(es):

{time}  NVOCC
{time}  Shippers' Association
{time}  Owner of Cargo
{time}  Other (Please specify)

    Records maintained to support shipments under this service 
contract are: bills of lading, shipping manifests, and other related 
written correspondence between contract parties.
    Contact person for records in the event of a request by the 
Federal Maritime Commission: Efficient Liner Transportation, Inc., 
Traffic Manager, 1227 Seaway Drive, Washington, DC 20573, (202) 523-
5856.

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(Carrier/Conference Signature)

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Carl T. Booker, President
Efficient Liner Transportation, Inc.
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(Shipper Signature)

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Vanessa M. Banks, President
ABC Electronics Company

Affiliate of shipper: Quality Compact Discs, Inc.
Affiliate's address: 7221-A Happiness Lane, New York, NY 10001

[FR Doc. 95-12512 Filed 5-22-95; 8:45 am]
BILLING CODE 6730-01-P