Shipping Act Amendments of 1979
PL 96-25 (S.199), enacted 06/19/1979

PUBLIC LAW 96-25—JUNE 19, 1979 
93 STAT. 71 
Public Law 96-25 
96th Congress 
An Act 
To amend the Shipping Act, 1916, to strengthen the provisions prohibiting rebating 
practices in the United States foreign trades. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled. That this Act may be 
cited as the "Shipping Act Amendments of 1979". 
SEC. 2. Section 16 of the Shipping Act, 1916, is amended by striking 
"$5,000" in the sixth paragraph, and inserting, in Ueu thereof, 
"$25,000". 
SEC. 3. Section 180t)) of the Shipping Act, 1916, is amended by 
deleting subsection (6) thereof and by adding the following new 
language in lieu thereof: 
"(6) Whoever violates any provision of this section, other than 
subsection (bX3) hereof involving rebates or refunds shall be subject 
to a civil penalty of not more than $5,000 for each day such violation 
continues. 
"(7) Whoever violates subsection Ot)X3) hereof by means of rebates 
or refunds, shall be subject to a civil penalty of not more than $25,000 
for each shipment on which a rebate or refund was paid and to 
suspension by the Commission of any or all tariffs filed by or on 
behalf of such carrier, or suspension of that carrier's right to utilize 
any or all tariffs of conferences of which that carrier may be a 
member, for a period not to exceed twelve months. Any carrier whose 
tariffs or rights of use thereof have been suspended pursuant to this 
paragraph and who accepts cargo for carriage during the suspension 
period which cargo otherwise would have been governed by the 
provisions of the suspended tariff[s) shall be subject to a civil penalty 
of not more than $50,000 for each shipment so accepted. 
"For purposes of this subsection and section 22(c) of this Act, a 
shipment shall mean all of that cargo, the carriage of which is 
evidenced by a single bill of lading.". 
SEC. 4. Section 21 of the Shipping Act, 1916, is amended by 
designating the existing two paragraphs as subsection "(a)" and by 
adding a new subsection (b) as follows: 
"(b) The Commission shall require the chief executive officer of 
every vessel operating common carrier by water in foreign commerce 
and to the extent it deems feasible, may require any shipper, 
consignor, consignee, forwarder, broker, other carrier or other person 
subject to this Act, to file a periodic, written certification underoath 
with the Commission attesting to— 
"(1) a policy prohibiting the payment, solicitation, or receipt of 
any rebate which is unlawful under the provisions of this Act; 
"(2) the fact that such policy has been promulgated recently to 
each owner, officer, employee, and agent thereof; 
"(3) the detedls of the efforts made, within the company or 
otherwise, to prevent or correct illegal rebating; and 
"(4) full cooperation with the Commission in its investigation 
of illegal rebating or refunds in United States foreign trades, and 
in its efforts to end such illegal practices. 
June 19, 1979 
[S. 199] 
Shipping Act 
Amendments of 
1979. 
46 use 842 note. 
Increased civil 
penalties. 
46 use 815. 
Increased 
penalties. 
46 use 817. 
Post, p. 72. 
Written 
certifications. 
46 u s e 820. 
93 STAT. 72 
PUBLIC LAW 96-25—JUNE 19, 1979 
Violation, 
penalty. 
46 use 821. 
Adjudicatory 
investigation. 
46 use 815. 
46 use 817. 
46 use 826, 
841a. 
Suspension of 
tariffs. 
46 use 817; 
ante, p. 71. 
Suspension 
order; submittal 
to President. 
Ante, p. 71. 
The Commission may by regulation prescribe the form and content of 
any certification required under the authority of this subsection. 
Failure to file any such certification shall result in a civil penalty of 
not more than $5,000 for each day such violation continues.". 
SEC. 5. Section 22 of the Shipping Act, 1916, is amended as follows: 
(a) designate the two existing paragraphs as "(a)" and "(b)", 
respectively; 
(b) amend subsection (b), as designated by this Act, by deleting 
therefrom the phrase "except as to orders for the payment of 
money,"; and 
(c) immediately after subsection (b), as designated by this Act, 
insert the following: 
"(c)(1) In addition to, and without limiting the authority granted to 
the Commission by subsections (a) and (b) hereof, the Commission 
may, on its own motion, institute an adjudicatory investigation into 
possible violations of section 16 (other than paragraphs First and 
Third) involving rebates or refunds in foreign commerce or violations 
of section 18(b)(3) involving rebates or refunds, with the powers set 
forth in subsection (c)(2) hereof in addition to those already contained 
in sections 27,43, and other sections of this Act. 
"(2) Failure on the part of any common carrier, respondent to a 
proceeding instituted pursuant to subsection (c)(1), or any other 
person directly or indirectly controlling, controlled by, or under 
common control with such respondent carrier, to comply with any 
subpena or any duly issued order compelling an answer to interroga-
tories or to designated questions propounded by deposition or compel-
ling production of documents in relation to any investigation con-
ducted under subsection (c)(1), shall authorize the Commission to issue 
an order to show cause why any or all tariffs filed pursuant to section 
18(b) of this Act, by or on behalf of the respondent carrier, or any or 
all rights of the respondent carrier to utilize such tariffs in the case of 
conference tariffs, should not be suspended until that carrier or any 
person directly or indirectly controlling, controlled by, or under 
common control with such carrier, has fully responded to the perti-
nent deposition, interrogatory, production request or motion, or 
subpena, and after such proceeding, to so suspend those tariffs or the 
respondent carrier's rights to utilize such tariffs. Any carrier whose 
tariff(s) or rights of use thereof have been suspended pursuant to this 
subparagraph and who accepts cargo for carriage during the suspen-
sion period which cargo otherwise would have been governed by the 
provisions of the suspended tariff(s) shall be subject to a civil penalty 
of 
not more than $50,000 for each shipment so accepted. 
"(3) If, in defense of its failure to comply with a subpena or 
discovery order issued in relation to any investigation conducted 
under subsection (c)(1), a common carrier alleges documents or 
information are located in a foreign country and cannot be produced 
because of the laws of that country, the Commission shall immedi-
ately notify the Secretary of State of such failure to comply and of the 
allegation relating to foreign laws. Upon receiving such notification, 
the Secretary of State shall promptly consult with the government of 
the nation within which the documents or information are alleged to 
be located for the purpose of assisting the Commission in obtaining 
the documents or information sought. 
"(4) Before any tariff suspension ordered pursuant to subsection 
(c)(2), or section 18(b)(7) of this Act, becomes effective, it shall be 
immediately submitted to the President who may, within ten days 
after receiving it, disapprove any such order if he finds that disap-
PUBLIC LAW 96-25—JUNE 19, 1979 
93 STAT. 73 
proval is required for reasons of the national defense or the foreign 
poUcy of the United States.". 
SEC. 6. Section 23 of the Shipping Act, 1916, is amended by deleting 
therefrom the language ", other than for the payment of money,". 
SEC. 7. Section 27 of the Shipping Act, 1916, is amended by deleting 
from subsection (b) thereof the phrase "other than for the payment of 
money". 
SEC. 8. Section 29 of the Shipping Act, 1916, is amended by deleting 
therefrom the phrase "other than an order for the payment of 
money,". 
SEC. 9. Section 30 of the Shipping Act, 1916, is amended in the 
initial and final paragraphs thereof by deleting the phrase "for the 
payment of money" and by inserting, in lieu thereof, the phrase "for 
the payment of reparation '. 
SEC. 10. Section 32 of the Shipping Act, 1916, is amended by 
inserting at the end thereof the following new subsections: 
"(d) No penEilty shall be imposed on any person for conspiracy after 
August 29, 1972: (1) to rebate or refund in violation of the initial 
paragraph or paragraph Second of section 16, or under section 18(b)(3) 
of this Act; or (2) to defraud the Commission by concealment of such 
rebates or refunds in any manner. 
"(e) Notwithstanding any other provision of law, the Commission 
shall have authority to assess or compromise all civil penalties 
provided in this Act: Provided, however, That, in order to assess such 
penalties a formal proceeding under section 22 of this Act shall be 
commenced within five years from the date when the violation 
occurred.". 
SEC. 11. The provisions of this Act, including the amendments made 
by this Act, shall become effective immediately upon its date of 
enactment. 
Approved June 19,1979. 
46 u s e 822. 
46 u s e 826. 
46 u s e 828. 
46 u s e 829. 
46 u s e 831. 
46 u s e 815. 
46 u s e 817. 
46 u s e 821; 
ante, p. 72. 
Effective date. 
46 u s e 815 note. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 96-232 accompanying H.R. 3055 (Oomm. on Merchant Marine 
and Fisheries). 
SENATE REPORT No. 96-147 (Oomm. on Oommerce, Science, and Transportation). 
eONGRESSIONAL REOORD, Vol. 125 (1979): 
May 23, considered and passed Senate. 
June 4, H.R. 3055 considered and passed House; passage vacated £uid S. 199, 
Eimended, passed in lieu. 
June 5, Senate agreed to House amendments.