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(C) in paragraph (3), as so redesignated,
by striking ‘‘finds appropriate,’’ and all that
follows through the period at the end and in-
serting ‘‘finds appropriate including the imposi-
tion of the penalties authorized under para-
graph (2).’’; and
(2) in subsection (f)(1) by striking ‘‘section 10
(a)(1), (b)(1), or (b)(4)’’ and inserting ‘‘section
10(a)(1)’’.
SEC. 10221. REPORTS.
(a) IN GENERAL.—Effective January 1, 1997, sec-
tion 15 of the Shipping Act of 1984 (46 U.S.C. App.
1714) is amended—
(1) in the section heading by striking ‘‘AND
CERTIFICATES’’;
(2) by striking ‘‘(a) REPORTS.—’’; and
(3) by striking subsection (b).
(b) CLERICAL AMENDMENT.—The table of contents
contained in the first section of such Act (46 U.S.C. App.
1701) is amended by striking the item relating to section
15 and inserting the following:
‘‘Sec. 15. Reports.’’.
SEC. 10222. REGULATIONS.
Section 17 of the Shipping Act of 1984 (46 U.S.C.
App. 1716) is amended—
(1) by striking ‘‘(a)’’; and
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(2) by striking subsection (b).
SEC. 10223. REPEAL.
(a) REPEAL.—Section 18 of the Shipping Act of
1984 (46 U.S.C. App. 1717) is repealed.
(b) CLERICAL AMENDMENT.—The table of contents
contained in the first section of such Act (46 U.S.C. App.
1701) is amended by striking the item relating to section
18.
SEC. 10224. OCEAN FREIGHT FORWARDERS.
Effective June 1, 1997, section 19 of the Shipping
Act of 1984 (46 U.S.C. App. 1718) is amended—
(1) by striking subsection (a) and inserting the
following:
‘‘(a) LICENSE.—No person in the United States may
act as an ocean freight forwarder unless that person holds
a license issued by the Commission. The Commission shall
issue a forwarder’s license to any person that the Commis-
sion determines to be qualified by experience and char-
acter to render forwarding services.’’;
(2) by redesignating subsections (b), (c), and
(d) as subsections (c), (d), and (e), respectively;
(3) by inserting after subsection (a) the follow-
ing:
‘‘(b) FINANCIAL RESPONSIBILITY.—
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‘‘(1) No person may act as an ocean freight for-
warder unless that person furnishes a bond, proof of
insurance, or other surety in a form and amount de-
termined by the Commission to insure financial re-
sponsibility that is issued by a surety company
found acceptable by the Secretary of the Treasury.
‘‘(2) A bond, insurance, or other surety ob-
tained pursuant to this section shall be available to
pay any judgment for damages against an ocean
freight forwarder arising from its transportation-re-
lated activities under this Act or order for reparation
issued pursuant to section 11 or 14 of this Act.
‘‘(3) An ocean freight forwarder not domiciled
in the United States shall designate a resident agent
in the United States for receipt of service of judicial
and administrative process, including subpoenas.’’;
(4) in subsection (c), as redesignated by para-
graph (2) of this section, by striking ‘‘a bond in ac-
cordance with subsection (a)(2)’’ and inserting ‘‘a
bond, proof of insurance, or other surety in accord-
ance with subsection (b)(1)’’; and
(5) in subsection (e), as redesignated by para-
graph (2) of this section—
(A) by striking paragraph (3) and redesig-
nating paragraph (4) as paragraph (3); and
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(B) by adding at the end the following:
‘‘(4) No conference or group of 2 or more ocean
common carriers in the foreign commerce of the
United States that is authorized to agree upon the
level of compensation paid to an ocean freight for-
warder, as defined in section 3(18)(A) of this Act,
may—
‘‘(A) deny to any member of the con-
ference or group the right, upon notice of not
more than 3 business days, to take independent
action on any level of compensation paid to an
ocean freight forwarder; or
‘‘(B) agree to limit the payment of com-
pensation to an ocean freight forwarder, as de-
fined in section 3(18)(A) of this Act, to less
than 1.25 percent of the aggregate of all rates
and charges which are applicable under a com-
mon schedule of transportation rates provided
under section 8(a) of this Act, and which are
assessed against the cargo on which the for-
warding services are provided.’’.
SEC. 10225. EFFECTS ON CERTAIN AGREEMENTS AND CON-
TRACTS.
Section 20(e) of the Shipping Act of 1984 (46 U.S.C.
App. 1719) is amended to read as follows:
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‘‘(e) SAVINGS PROVISIONS.—
‘‘(1) Each service contract entered into by a
shipper and an ocean common carrier or conference
before the date of the enactment of the Ocean Ship-
ping Reform Act of 1995 may remain in full force
and effect according to its terms.
‘‘(2) This Act and the amendments made by
this Act shall not affect any suit—
‘‘(A) filed before the date of the enactment
of the Ocean Shipping Reform Act of 1995;
‘‘(B) with respect to claims arising out of
conduct engaged in before the date of the en-
actment of the Ocean Shipping Reform Act of
1995, filed within 1 year after the date of the
enactment of the Ocean Shipping Reform Act
of 1995;
‘‘(C) with respect to claims arising out of
conduct engaged in after the date of the enact-
ment of the Ocean Shipping Reform Act of
1995 but before January 1, 1997, pertaining to
a violation of section 10(b) (1), (2), (3), (4), or
(8), as in effect before January 1, 1997, filed
by June 1, 1997;
‘‘(D) with respect to claims pertaining to
the failure of a common carrier or conference to