FCC Regulation Document

Part: 
Topic: C

47 CFR Part 3 (up to date as of 2/20/2024)
                                                                              47 CFR Part 3 (Feb. 20, 2024)
Authorization and Administration of Accounting Authorities in Maritime...

This content is from the eCFR and is authoritative but unofficial.

Title 47 —Telecommunication
Chapter I —Federal Communications Commission
Subchapter A —General

Part 3 Authorization and Administration of Accounting Authorities in Maritime
        and Maritime Mobile-Satellite Radio Services
  General
      § 3.1 Scope, basis, purpose.
      § 3.2 Terms and definitions.
  Eligibility
      § 3.10 Basic qualifications.
      § 3.11 Location of settlement operation.
  Application Procedures
      § 3.20 Application form.
      § 3.21 Order of consideration.
      § 3.22 Number of accounting authority identification codes per applicant.
      § 3.23 Legal applicant.
      § 3.24 Evidence of financial responsibility.
      § 3.25 Number of copies.
      § 3.26 Where application is to be mailed.
      § 3.27 Amended application.
      § 3.28 Denial of privilege.
      § 3.29 Notifications.
  Settlement Operations
      § 3.40 Operational requirements.
      § 3.41 Amount of time allowed before initial settlements.
      § 3.42 Location of processing facility.
      § 3.43 Applicable rules and regulations.
      § 3.44 Time to achieve settlements.
      § 3.45 Amount of charges.
      § 3.46 Use of gold francs.
      § 3.47 Use of SDRs.
      § 3.48 Cooperation with the Commission.
      § 3.49 Agreement to be audited.
      § 3.50 Retention of settlement records.
      § 3.51 Cessation of operations.
      § 3.52 Complaint/inquiry resolution procedures.

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     § 3.53 FCC notification of refusal to provide telecommunications service to U.S. registered
             vessel(s).
     § 3.54 Notification of change in address.
   Reporting Requirements
     § 3.60 Reports.
     § 3.61 Reporting address.
     § 3.62 Request for confidentiality.
   Enforcement
     § 3.70 Investigations.
     § 3.71 Warnings.
     § 3.72 Grounds for further enforcement action.
     § 3.73 Waiting period after cancellation.
     § 3.74 Ship stations affected by suspension, cancellation or relinquishment.
     § 3.75 Licensee's failure to make timely payment.
     § 3.76 Licensee's liability for payment.

PART 3—AUTHORIZATION AND ADMINISTRATION OF
ACCOUNTING AUTHORITIES IN MARITIME AND MARITIME
MOBILE-SATELLITE RADIO SERVICES
Authority: 47 U.S.C. 154(i), 154(j) and 303(r).

Source: 61 FR 20165, May 6, 1996, unless otherwise noted.

                                                      GENERAL

§ 3.1 Scope, basis, purpose.
By these rules the Federal Communications Commission (FCC) is delineating its responsibilities in certifying and
monitoring accounting authorities in the maritime mobile and maritime mobile-satellite radio services. These
entities settle accounts for public correspondence due to foreign administrations for messages transmitted at sea
by or between maritime mobile stations located on board ships subject to U.S. registry and utilizing foreign coast
and coast earth station facilities. These rules are intended to ensure that settlements of accounts for U.S. licensed
ship radio stations are conducted in accordance with the International Telecommunication Regulations (ITR), taking
into account the applicable ITU-T Recommendations.

§ 3.2 Terms and definitions.
     (a) Accounting Authority. The Administration of the country that has issued the license for a mobile station or
         the recognized operating agency or other entity/entities designated by the Administration in accordance
         with ITR, Appendix 2 and ITU-T Recommendation D.90 to whom maritime accounts in respect of mobile
         stations licensed by that country may be sent.

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         (b) Accounting Authority Certification Officer. The official designated by the Managing Director, Federal
             Communications Commission, who is responsible, based on the coordination and review of information
             related to applicants, for granting certification as an accounting authority in the maritime mobile and
             maritime mobile-satellite radio services. The Accounting Authority Certification Officer may initiate action
             to suspend or cancel an accounting authority certification if it is determined to be in the public's best
             interest.

         (c) Accounting Authority Identification Codes (AAICs). The discrete identification code of an accounting
             authority responsible for the settlement of maritime accounts (Annex A to ITU-T Recommendation D.90).

         (d) Administration. Any governmental department or service responsible for discharging the obligations
             undertaken in the Convention of the International Telecommunication Union and the Radio Regulations.
             For purposes of these rules, “Administration” refers to a foreign government or the U.S. Government, and
             more specifically, to the Federal Communications Commission.

         (e) Authorization. Approval by the Federal Communications Commission to operate as an accounting
             authority. Synonymous with “certification”.

         (f) CCITT. The internationally recognized French acronym for the International Telegraph and Telephone
             Consultative Committee, one of the former sub-entities of the International Telecommunication Union
             (ITU). The CCITT (ITU-T)[1] is responsible for developing international telecommunications
             recommendations relating to standardization of international telecommunications services and facilities,
             including matters related to international charging and accounting principles and the settlement of
             international telecommunications accounts.

               Such recommendations are, effectively, the detailed implementation provisions for topics addressed in
               the International Telecommunication Regulations (ITR).

         (g) Certification. Approval by the FCC to operate as an accounting authority. Synonymous with
             “authorization”.

         (h) Coast Earth Station. An earth station in the fixed-satellite service or, in some cases, in the maritime
             mobile-satellite service, located at a specified fixed point on land to provide a feeder link for the maritime
             mobile-satellite service.

         (i)   Coast Station. A land station in the maritime mobile service.

         (j)   Commission. The Federal Communications Commission. The FCC.

         (k) Gold Franc. A monetary unit representing the value of a particular nation's currency to a gold par value.
             One of the monetary units used to effect accounting settlements in the maritime mobile and the maritime
             mobile-satellite services.

   [1]
     At the ITU Additional Plenipotentiary Conference in Geneva (December, 1992), the structure, working
   methods and construct of the basic ITU treaty instrument were modified. The result is that the names of the
   sub-entities of the ITU have changed (e.g., the CCITT has become the Telecommunication Standardization
   Sector—ITU-T and Recognized Private Operating Agency has become Recognized Operating Agency-ROA). The
   changes were placed into provisional effect on March 1, 1993 with the formal entry into force of these
   changes being July 1, 1994. We will refer to the new nomenclatures within these rules, wherever practicable.

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         (l)   International Telecommunication Union (ITU). One of the United Nations family organizations
               headquartered in Geneva, Switzerland along with several other United Nations (UN) family organizations.
               The ITU is the UN agency responsible for all matters related to international telecommunications. The ITU
               has over 180 Member Countries, including the United States, and provides an international forum for
               dealing with all aspects of international telecommunications, including radio, telecom services and
               telecom facilities.

         (m) Linking Coefficient. The ITU mandated conversion factor used to convert gold francs to Special Drawing
             Rights (SDRs). Among other things, it is used to perform accounting settlements in the maritime mobile
             and the maritime mobile-satellite services.

         (n) Maritime Mobile Service. A mobile service between coast stations and ship stations, or between ship
             stations, or between associated on-board communication stations. Survival craft stations and emergency
             position- indicating radiobeacon stations may also participate in this service.

         (o) Maritime Mobile-Satellite Service. A mobile-satellite service in which mobile earth stations are located on
             board ships. Survival craft stations and emergency position-indicating radiobeacon stations may also
             participate in this radio service.

         (p) Public Correspondence. Any telecommunication which the offices and stations must, by reason of their
             being at the disposal of the public, accept for transmission. This usually applies to maritime mobile and
             maritime mobile-satellite stations.

         (q) Recognized Operating Agencies (ROAs).[2] Individuals, companies or corporations, other than governments
             or agencies, recognized by administrations, which operate telecommunications installations or provide
             telecommunications services intended for international use or which are capable of causing interference
             to international telecommunications. ROAs which settle debtor accounts for public correspondence in the
             maritime mobile and maritime mobile-satellite radio services must be certified as accounting authorities.

         (r) Ship Station. A mobile station in the maritime mobile service located on board a vessel which is not
             permanently moored, other than a survival craft station.

         (s) Special Drawing Right (SDR). A monetary unit of the International Monetary Fund (IMF) currently based on
             a market basket of exchange rates for the United States, West Germany, Great Britain, France and Japan
             but is subject to IMF's definition. One of the monetary units used to effect accounting settlements in the
             maritime mobile and maritime mobile-satellite services.

         (t) United States. The continental U.S., Alaska, Hawaii, the Commonwealth of Puerto Rico, the Virgin Islands
             or any territory or possession of the United States.

                                                        ELIGIBILITY

§ 3.10 Basic qualifications.
         (a) Applicants must meet the requirements and conditions contained in these rules in order to be certified as
             an accounting authority. No individual or other entity, including accounting authorities approved by other
             administrations, may act as a United States accounting authority and settle accounts of U.S. licensed
             vessels in the maritime mobile or maritime mobile-satellite services without a certification from the

   [2]   Id.

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          Federal Communications Commission. Accounting authorities with interim certification as of the effective
          date of this rule must submit to the application process discussed in § 3.20. They will be “grandfathered”,
          i.e, granted permanent certification provided they demonstrate their eligibility and present a proper
          application.

     (b) U.S. citizenship is not required of individuals in order to receive certification from the Commission to be an
         accounting authority. Likewise, joint ventures need not be organized under the laws of the United States in
         order to be eligible to perform settlements for U.S. licensed vessels. See, however, § 3.11.

     (c) Prior experience in maritime accounting, general commercial accounting, international shipping or any
         other related endeavor will be taken into consideration by the Commission in certifying accounting
         authorities. The lack of such expertise, however, will not automatically disqualify an individual,
         partnership, corporation or other entity from becoming an accounting authority.

     (d) Applicants must provide formal financial statements or documentation proving all assets, liabilities,
         income and expenses.

     (e) Applicants must offer their services to any member of the public making a reasonable request therefor,
         without undue discrimination against any customer or class of customer, and fees charged for providing
         such services shall be reasonable and non-discriminatory. This requirement will be waived for applicants
         who settle their own accounts only and are eligible to be “grandfathered” during the initial application
         period. However, should the need for additional accounting authorities be proven, these accounting
         authorities will be required to offer their services to the public or relinquish their certification.

[61 FR 20165, May 6, 1996, as amended at 64 FR 40776, July 28, 1999]

§ 3.11 Location of settlement operation.
     (a) Within the United States. A certified accounting authority maintaining all settlement operations, as well as
         associated documentation, within the United States will be assigned an AAIC with a “US” prefix.

     (b) Outside the United States. A certified accounting authority maintaining settlement operations outside the
         United States will be assigned the same AAIC as that originally assigned to such entity by the
         administration of the country of origin. However, in no case will an entity be certified as an accounting
         authority for settlement of U.S. licensed vessel accounts unless the entity is requesting to conduct a
         settlement operation in the United States or has already been issued an AAIC by another administration.

                                               APPLICATION PROCEDURES

§ 3.20 Application form.
Written application must be made to the Federal Communications Commission on FCC Form 44, “Application For
Certification As An Accounting Authority” in order to be considered for certification as an accounting authority. No
other application form may be used. No consideration will be given to applicants not submitting applications in
accordance with these rules or in accordance with any other instructions the Commission may issue. FCC Form 44
may be obtained from the Commission by writing to the address shown in § 3.61.

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§ 3.21 Order of consideration.
     (a) Accounting Authority applications will be processed on a first-come, first-served basis. When applications
         are received on the same day, the application with the earliest mailing date, as evidenced by the postmark,
         will be processed first. Interim accounting authorities seeking permanent certifications through the
         “grandfathering” process will not compete with other applicants during the first 60 days following the
         effective date of these rules which is allowed for submission of their applications. After the
         “grandfathering” process is completed, all other applicants will be processed as in paragraph (a) of this
         section.

     (b) At any given time, there will be no more than 25 certified accounting authorities with a minimum of 15
         “US” AAICs reserved for use by accounting authorities conducting settlement operations within the United
         States. The Commission will retain all valid applications received after the maximum number of
         accounting authorities have been approved and will inform such applicants that should an AAIC become
         available for reassignment in the future, the Commission will conditionally certify as an accounting
         authority the oldest of the qualified pending applicants, as determined by the order of receipt. Final
         certification would be conditional upon filing of an amended application (if necessary). The Commission
         will inform the applicant of his/her conditional selection in writing to confirm the applicant's continued
         interest in becoming an accounting authority.

§ 3.22 Number of accounting authority identification codes per applicant.
     (a) No entity will be entitled to or assigned more than one AAIC.

     (b) AAICs may not be reassigned, sold, bartered or transferred and do not convey upon sale or absorption of a
         company or firm without the express written approval of the Commission. Only the FCC may certify
         accounting authorities and assign U.S. AAICs for entities settling accounts of U.S. licensed vessels in the
         maritime mobile and maritime mobile-satellite services.

     (c) Accounting authorities who are “grandfathered” during the initial application period may retain their
         interim AAIC.

§ 3.23 Legal applicant.
The application shall be signed by the individual, partner or primary officer of a corporation who is legally able to
obligate the entity for which he or she is a representative.

§ 3.24 Evidence of financial responsibility.
All applicants must provide evidence of sound financial status. To the extent that the applicant is a business, formal
financial statements will be required. Other applicants may submit documentation proving all assets, liabilities,
income and expenses which supports their ability to meet their personal obligations. Applicants must provide any
additional information deemed necessary by the Commission.

§ 3.25 Number of copies.
One original and one copy of FCC Form 44, “Application For Certification As An Accounting Authority” will be
required. Only applications mailed to the Commission on official, Commission approved application forms will be
considered. Applications should be mailed at least 90 days prior to planned commencement of settlement activities
to allow time for the Commission to review the application and to allow for the informal public comment period.

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§ 3.26 Where application is to be mailed.
All applications shall be mailed to the Accounting Authority Certification Officer in Washington, D.C. The designated
address will be provided on the FCC Form 44, “Application for Certification As An Accounting Authority”.

§ 3.27 Amended application.
Changes in circumstances that cause information previously supplied to the FCC to be incorrect or incomplete and
that could affect the approval process, require the submission of an amended application. The amended application
should be mailed to the Commission immediately following such change. See also §§ 3.24 and 3.51.

§ 3.28 Denial of privilege.
     (a) The Commission, in its sole discretion, may refuse to grant an application to become an accounting
         authority for any of the following reasons:

          (1) Failure to provide evidence of acceptable financial responsibility;

          (2) If the applicant, in the opinion of the FCC reviewing official, does not possess the qualifications
              necessary to the proper functioning of an accounting authority;

          (3) Application is not personally signed by the proper official(s);

          (4) Applicant does not provide evidence that accounting operations will take place in the United States
              or its territories and the applicant does not already possess an AAIC issued by another
              administration;

          (5) Application is incomplete, the applicant fails to provide additional information requested by the
              Commission or the applicant indicates that it cannot meet a particular provision; or

          (6) When the Commission determines that the grant of an authorization is contrary to the public interest.

     (b) These rules provide sufficient latitude to address defects in applications. Entities seeking review should
         follow procedures set forth in § 1.106 or § 1.115 of this chapter.

§ 3.29 Notifications.
     (a) The Commission will publish the name of an applicant in a Public Notice before granting certification and
         will invite informal public comment on the qualifications of the applicant from any interested parties.
         Comments received will be taken into consideration by the Commission in making its determination as to
         whether to approve an applicant as an accounting authority. Thirty days will be allowed for submission of
         comments.

     (b) The Commission will notify each applicant in writing as to whether the applicant has been approved as an
         accounting authority. If the application is not approved, the Commission will provide a brief statement of
         the grounds for denial.

     (c) The names and addresses of all newly certified accounting authorities will be published in a Public Notice
         issued by the Commission. Additionally, the Commission will notify the ITU within 30 days of any changes
         to its approved list of accounting authorities.

                                             SETTLEMENT OPERATIONS

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§ 3.40 Operational requirements.
All accounting authorities must conduct their operations in conformance with the provisions contained in this
section and with relevant rules and guidance issued from time to time by the Commission.

§ 3.41 Amount of time allowed before initial settlements.
An accounting authority must begin settling accounts no later than six months from the date of certification. Failure
to commence settlement operations is cause for suspension or cancellation of an accounting authority
certification.

§ 3.42 Location of processing facility.
Settlement of maritime mobile and maritime mobile-satellite service accounts must be performed within the United
States by all accounting authorities possessing the “US” prefix. Other accounting authorities approved by the
Commission may settle accounts either in the U.S. or elsewhere. See also §§ 3.11 and 3.21(b).

§ 3.43 Applicable rules and regulations.
Accounting authority operations must be conducted in accordance with applicable FCC rules and regulations, the
International Telecommunication Regulations (ITR), and other international rules, regulations, agreements, and,
where appropriate, ITU-T Recommendations. In particular, the following must be adhered to or taken into account in
the case of ITU-T.

     (a) The latest basic treaty instrument(s) of the International Telecommunication Union (ITU);

     (b) Binding agreements contained in the Final Acts of World Administrative Radio Conferences and/or World
         International Telecommunication Conferences;

     (c) ITU Radio Regulations;

     (d) ITU International Telecommunication Regulations (ITR);

     (e) ITU-T Recommendations (particularly D.90 and D.195); and

     (f) FCC Rules and Regulations (47 CFR part 3).

§ 3.44 Time to achieve settlements.
All maritime telecommunications accounts should be timely paid in accordance with applicable ITU Regulations,
Article 66 and International Telecommunication Regulations (Melbourne, 1988). Accounting authorities are deemed
to be responsible for remitting, in a timely manner, all valid amounts due to foreign administrations or their agents.

§ 3.45 Amount of charges.
Accounting Authorities may charge any reasonable fee for their settlement services. Settlements themselves,
however, must adhere to the standards set forth in these rules and must be in accordance with the International
Telecommunication Regulations (ITR) taking into account the applicable ITU-T Recommendations and other
guidance issued by the Commission.

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§ 3.46 Use of gold francs.
An accounting authority must accept accounts presented to it from foreign administrations in gold francs. These
gold francs must be converted on the date of receipt of the bill to the applicable Special Drawing Right (SDR) rate
(as published by the International Monetary Fund) on that date utilizing the linking coefficient of 3.061 gold francs =
1 SDR. An equivalent amount in U.S. dollars must be paid to the foreign administration. Upon written concurrence by
the FCC, an accounting authority may make separate agreements, in writing, with foreign administrations or their
agents for alternative settlement methods, in accordance with ITU-T Recommendation D.195.

§ 3.47 Use of SDRs.
An accounting authority must accept accounts presented to it from foreign administrations in Special Drawing
Rights (SDRs). These SDRs must be converted to dollars on the date of receipt by the accounting authority and an
equivalent amount in US dollars must be paid to the foreign administration. The conversion rate will be the
applicable rate published by the International Monetary Fund (IMF) for the date of receipt of the account from the
foreign administration. Upon written concurrence by the FCC, any accounting authority may make separate
agreements, in writing, with foreign administrations or their agents for alternative settlement methods, provided
account is taken of ITU-T Recommendation D.195.

§ 3.48 Cooperation with the Commission.
Accounting authorities must cooperate fully with the FCC in all respects concerning international maritime
settlements issues, including the resolution of questions of fact or other issues arising as a result of settlement
operations.

§ 3.49 Agreement to be audited.
Accounting authorities accept their certifications on condition that they are subject to audit of their settlement
activities by the Commission or its representative. Additionally, the Commission reserves the right to verify any
statement(s) made or any materials submitted to the Commission under these rules. Verification may involve
discussions with ship owners or others as well as the requirement to submit additional information to the
Commission. Failure to respond satisfactorily to any audit findings is grounds for forfeiture or suspension or
cancellation of authority to act as an accounting authority for U.S. vessels.

§ 3.50 Retention of settlement records.
Accounting authorities must maintain, for the purpose of compliance with these rules, all settlement records for a
period of at least seven years following settlement of an account with a foreign administration or agent.

§ 3.51 Cessation of operations.
The FCC must be notified immediately should an accounting authority plan to relinquish its certification or cease to
perform settlements as authorized. Additionally, the Commission must be advised in advance of any proposed
transfer of control of an accounting authority's firm or organization, by any means, to another entity.

     (a) When an accounting authority is transferred, merged or sold, the new entity must apply for certification in
         its own right if it is interested in becoming an accounting authority. Provided the new applicant is eligible
         and completes the application process satisfactorily, the AAIC will be transferred to the new applicant. In
         the case of a merger of two accounting authorities, the merged entity must decide which AAIC to retain.

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     (b) Section 3.21(a) will be waived for these applicants.

     (c) The applicant must comply with application process including public comment.

     (d) The applicant must certify acceptance of all accounts and must furnish a list of the accounts to the
         Commission at the time of application.

§ 3.52 Complaint/inquiry resolution procedures.
     (a) Accounting authorities must maintain procedures for resolving complaints and/or inquiries from its
         contractual customers (vessels for which it performs settlements), the FCC, the ITU, and foreign
         administrations or their agents. These procedures must be available to the Commission upon request.

     (b) If a foreign administration requests assistance in collection of accounts from ships licensed by the FCC,
         the appropriate accounting authority will provide all information requested by the Commission in a timely
         manner to enable the Commission to determine the cause of the complaint and to resolve the issue. If
         accounts are in dispute, the Commission will determine the amount due the foreign administration,
         accounting authority or ROA, and may direct the accounting authority to pay the accounts to the foreign
         administration. If the accounting authority does not pay the disputed accounts within a reasonable
         timeframe, the Commission may take action to levy a forfeiture, cancel the AAIC privilege and/or to revoke
         any operating authority or licenses held by that accounting authority. (See also § 3.72).

§ 3.53 FCC notification of refusal to provide telecommunications service to U.S. registered
vessel(s).
An accounting authority must inform the FCC immediately should it receive notice from any source that a foreign
administration or facility is refusing or plans to refuse legitimate public correspondence to or from any U.S.
registered vessel.

§ 3.54 Notification of change in address.
The Commission must be notified in writing within 15 days of any change in address of an accounting authority.
Such written notification should be sent to the address shown in § 3.61.

                                             REPORTING REQUIREMENTS

§ 3.60 Reports.
     (a) Initial Inventory of Vessels. Within 60 days after receiving final approval from the FCC to be an accounting
         authority, each certified accounting authority must provide to the FCC an initial list of vessels for which it
         is performing settlements. This list should contain only U.S. registered vessels. Such list shall be
         typewritten or computer generated, be annotated to indicate it is the initial inventory and be in the general
         format of the following and provide the information shown:

                                    Vessel Name                                        Call Sign

     (b) Semi-Annual Additions/Modifications/Deletions to Vessel Inventory. Beginning with the period ending on
         the last day of March or September following submission of an accounting authority's Initial Inventory of
         Vessels (See paragraph (a) of this section.) and each semi-annual period thereafter, each accounting
         authority is required to submit to the FCC a report on additions, modifications or deletions to its list of

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           vessels for which it is performing or intending to perform settlements, whether or not settlements actually
           have taken place. The list should contain only U.S. registered vessels. The report shall be typewritten or
           computer generated and be in the following general format:

                                      Additions to Current Vessel Inventory

                        Vessel Name                         Call Sign                 Effective Date

                                    Modifications to Current Vessel Inventory

             Previous Vessel Name      Previous Call Sign      New Vessel Name   New Call Sign   Effective Date

                                      Deletions to Current Vessel Inventory

                        Vessel Name                         Call Sign                 Effective Date

     The preceding report must be received by the Commission no later than 15 days following the end of the period
     (March or September) for which the report pertains. Modifications refer to changes to call sign or ship name of
     vessels for which the accounting authority settles accounts and for which fbasic information has previously
     been provided to the Commission. Reports are to be submitted even if there have been no additions,
     modifications or deletions to vessel inventories since the previous report. If there are no changes to an
     inventory, this should be indicated on the report.

     (c) End of Year Inventory. By February 1st of each year, each accounting authority must submit an end-of-year
         inventory report listing vessels for which the accounting authority performed settlements as of the
         previous December 31st. The list should contain only U.S. registered vessels. The report must be
         typewritten or computer generated and prepared in the same general format as that shown in paragraph
         (a) of this section except it should be annotated to indicate it is the End of Year inventory.

     (d) Annual Statistical Report of Settlement Operations. By February 1st of each year, each accounting
         authority settling accounts for U.S. registered vessels must submit to the FCC an Annual Statistical
         Report, FCC Form 45, which details the number and dollar amount of settlements, by foreign
         administration, during the preceding twelve months. Information contained in this report provides
         statistical data that will enable the Commission to monitor operations to ensure adherence to these rules
         and to appropriate international settlement procedures. FCC Form 45 can be obtained by writing to the
         address in 3.61 of these rules.

§ 3.61 Reporting address.
All reports must be received at the following address no later than the required reporting date: Accounting Authority
Certification Officer, Financial Operations Center, Federal Communications Commission, at the address indicated in
47 CFR 0.401(a).

[85 FR 64406, Oct. 13, 2020]

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§ 3.62 Request for confidentiality.
Applicants should comply with § 0.459 of this chapter when requesting confidentiality and cannot assume that it
will be offered automatically.

                                                   ENFORCEMENT

§ 3.70 Investigations.
The Commission may investigate any complaints made against accounting authorities to ensure compliance with
the Commission's rules and with applicable ITU Regulations and other international maritime accounting
procedures.

§ 3.71 Warnings.
The Commission may issue written warnings or forfeitures to accounting authorities which are found not to be
operating in accordance with established rules and regulations. Warnings will generally be issued for violations
which do not seriously or immediately affect settlement functions or international relations. Continued or
unresolved violations may lead to further enforcement action by the Commission, including any or all legally
available sanctions, including but not limited to, forfeitures (Communications Act of 1934, Sec. 503), suspension or
cancellation of the accounting authority certification.

§ 3.72 Grounds for further enforcement action.
     (a) The Commission may take further enforcement action, including forfeiture, suspension or cancellation of
         an accounting authority certification, if it is determined that the public interest so requires. Reasons for
         which such action may be taken include, inter alia:

          (1) Failure to initiate settlements within six months of certification or failure to perform settlements
              during any subsequent six month period;

          (2) Illegal activity or fraud;

          (3) Non-payment or late payment to a foreign administration or agent;

          (4) Failure to follow ITR requirements and procedures;

          (5) Failure to take into account ITU-T Recommendations;

          (6) Failure to follow FCC rules and regulations;

          (7) Bankruptcy; or

          (8) Providing false or incomplete information to the Commission or failure to comply with or respond to
              requests for information.

     (b) Prior to taking any of the enforcement actions in paragraph (a) of this section, the Commission will give
         notice of its intent to take the specified action and the grounds therefor, and afford a 30-day period for a
         response in writing; provided that, where the public interest so requires, the Commission may temporarily
         suspend a certification pending completion of these procedures. Responses must be forwarded to the
         Accounting Authority Certification Officer. See § 3.61.

47 CFR 3.72(b) (enhanced display)                                                                          page 12 of 13
47 CFR Part 3 (up to date as of 2/20/2024)
                                                                                                           47 CFR 3.73
Authorization and Administration of Accounting Authorities in Maritime...

§ 3.73 Waiting period after cancellation.
An accounting authority whose certification has been cancelled must wait a minimum of three years before
reapplying to be an accounting authority.

§ 3.74 Ship stations affected by suspension, cancellation or relinquishment.
     (a) Whenever the accounting authority privilege has been suspended, cancelled or relinquished, the
         accounting authority is responsible for immediately notifying all U.S. ship licensees for which it was
         performing settlements of the circumstances and informing them of the requirement contained in
         paragraph (b) of this section.

     (b) Those ship stations utilizing an accounting authority's AAIC for which the subject accounting authority
         certification has been suspended, cancelled or relinquished, should make contractual arrangements with
         another properly authorized accounting authority to settle its accounts.

     (c) The Commission will notify the ITU of all accounting authority suspensions, cancellations and
         relinquishments, and

     (d) The Commission will publish a Public Notice detailing all accounting authority suspensions, cancellations
         and relinquishments.

§ 3.75 Licensee's failure to make timely payment.
Failure to remit proper and timely payment to the Commission or to an accounting authority may result in one or
more of the following actions against the licensee:

     (a) Forfeiture or other authorized sanction.

     (b) The refusal by foreign countries to accept or refer public correspondence communications to or from the
         vessel or vessels owned, operated or licensed by the person or entity failing to make payment. This action
         may be taken at the request of the Commission or independently by the foreign country or coast station
         involved.

     (c) Further action to recover amounts owed utilizing any or all legally available debt collection procedures.

§ 3.76 Licensee's liability for payment.
The U.S. ship station licensee bears ultimate responsibility for final payment of its accounts. This responsibility
cannot be superseded by the contractual agreement between the ship station licensee and the accounting authority.
In the event that an accounting authority does not remit proper and timely payments on behalf of the ship station
licensee:

     (a) The ship station licensee will make arrangements for another accounting authority to perform future
         settlements, and

     (b) The ship station licensee will settle any outstanding accounts due to foreign entities.

     (c) The Commission will, upon request, take all possible steps, within the limits of applicable national law, to
         ensure settlement of the accounts of the ship station licensee. As circumstances warrant, this may
         include issuing warnings to ship station licensees when it becomes apparent that an accounting authority
         is failing to settle accounts. See also §§ 3.70 through 3.74.

47 CFR 3.76(c) (enhanced display)                                                                         page 13 of 13