FEDERAL MARITIME COMMISSION

46 CFR Part 506

Docket No. 18-01

RIN 3072-AC70

INFLATION ADJUSTMENT OF CIVIL MONETARY PENALTIES

AGENCY: Federal Maritime Commission.

ACTION: Final Rule

SUMMARY: The Commission is publishing its adjustments to inflation annually, pursuant to 

the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (2015 Act). The 

2015 Act requires that agencies adjust and publish their civil penalties by January 15 each year.

DATES: This rule is effective on January 15, 2018. 

FOR FURTHER INFORMATION CONTACT: 

Tyler Wood, General Counsel

Federal Maritime Commission

800 North Capitol Street, N.W., Room 1018

Washington, DC 20573 

(202) 523-5740

SUPPLEMENTARY INFORMATION: This rule adjusts the civil monetary penalties 

assessable by the Commission in accordance with the 2015 Act, which became effective on 

November 2, 2015, Sec. 701 of Public Law 11-74. The 2015 Act further amended the Federal 

Civil Penalties Inflation Adjustment Act of 1990 (FCPIAA), Pub. L. No. 101-410, 104 Stat. 890 

(codified as amended at 28 U.S.C. 2461 note), in order to improve the effectiveness of civil 

monetary penalties and to maintain their deterrent effect. 

The 2015 Act requires agencies to adjust civil monetary penalties under their jurisdiction 

by January 15 each year, based on changes in the consumer price index (CPI-U) using data from 

October in the previous calendar year. On December 15, 2017, the Office of Management and 

 ISSUED: January 5, 2018
2

Budget published guidance stating that the CPI-U multiplier for October 2017 is 1.02041.1 In 

order to complete the adjustment for January 2018, agencies must multiply the most recent civil 

penalty amounts in 46 CFR part 506. 

Rulemaking Analyses and Notices

Notice and Effective Date

Adjustments under the FCPIAA, as amended by the 2015 Act, are not subject to the 

procedural rulemaking requirements of the Administrative Procedure Act (APA) (5 U.S.C. 553), 

including the requirements for prior notice, an opportunity for comment, and a delay between the 

issuance of a final rule and its effective date.2 As noted above, the 2015 Act requires that the 

Commission adjust its civil monetary penalties no later than January 15 of each year.

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).

Regulatory Flexibility Act

The Regulatory Flexibility Act (codified as amended at 5 U.S.C. 601–612) provides that 

whenever an agency promulgates a final rule after being required to publish a notice of proposed 

rulemaking under the APA (5 U.S.C. 553), the agency must prepare and make available a final 

 1 Office of Management and Budget, M-18-03, Implementation of Penalty Inflation Adjustments for 2018, 

Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, at 1 (Dec. 15, 2017) 

(M-18-03).

2 FCPIAA § 4(b)(2); M-17-11 at 2.
3

regulatory flexibility analysis (FRFA) describing the impact of the rule on small entities. 5 

U.S.C. 604. As indicated above, this final rule is not subject to the APA’s notice and comment 

requirements, and the Commission is not required to prepare an FRFA in conjunction with this 

final rule.

Paperwork Reduction Act

The Paperwork Reduction Act of 1995 (44 U.S.C. 3501–3521) 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 rules to OMB in conjunction with the publication of the notice of proposed rulemaking. 5 

CFR 1320.11. This final rule does not contain any collections of information, as defined by 44 

U.S.C. 3502(3) and 5 CFR 1320.3(c). 

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 506

Administrative practice and procedure, Penalties.

For the reasons stated in the preamble, Part 506 of title 46 of the Code of Federal 

Regulations is amended as follows:

PART 506—CIVIL MONETARY PENALTY INFLATION ADJUSTMENT

1. The authority citation for part 506 continues to read as follows:
4

Authority: 28 U.S.C. 2461.

2. Amend § 506.4 by revising paragraph (d) to read as follows:

§ 506.4 Cost of living adjustments of civil monetary penalties.

* * * * *

(d) Inflation adjustment. Maximum Civil Monetary Penalties within the jurisdiction of 

the Federal Maritime Commission are adjusted for inflation as follows:

United States Code 

Citation

Civil Monetary Penalty description Maximum 

penalty 

amount as of 

January 15, 

2017

Maximum 

penalty as of 

January 15, 

2018

46 U.S.C. 42304 Adverse impact on U.S. carriers by 

foreign shipping practices

2,011,061 2,052,107

46 U.S.C. 41107(a) Knowing and Willful violation/ 

Shipping Act of 1984, or 

Commission regulation or order

57,391 58,562

46 U.S.C. 41107(b) Violation of Shipping Act of 1984, 

Commission regulation or order, not 

knowing and willful

11,478 11,712

46 U.S.C. 41108(b) Operating in foreign commerce after 

tariff suspension

114,782 117,125

46 U.S.C. 42104 Failure to provide required reports, 

etc./ Merchant Marine Act of 1920

9,054 9,239

46 U.S.C. 42106 Adverse shipping 

conditions/Merchant Marine Act of 

1920

1,810,706 1,847,663

46 U.S.C. 42108 Operating after tariff or service 

contract suspension/Merchant 

Marine Act of 1920

90,535 92,383

46 U.S.C. 44102 Failure to establish financial 

responsibility for non-performance 

of transportation

22,868

762

23,335

778

46 U.S.C. 44103 Failure to establish financial 

responsibility for death or injury

22,868

762

23,335

778

31 U.S.C. 3802(a)(1) Program Fraud Civil Remedies 

Act/makes false claim

10,957 11,181
5

31 U.S.C. 3802(a)(2) Program Fraud Civil Remedies 

Act/giving false statement

10,957 11,181

By the Commission.

Rachel E. Dickon,

Assistant Secretary