Shipping Act of 1984
PL 98-237 (S.47), enacted 03/20/1984

PUBLIC LAW 98-237—MAR. 20, 1984 
98 STAT. 67 
Public Law 98-237 
f 
^: 
98th Congress 
An Act 
To improve the international ocean commerce transportation system of the United 
Mar. 20, 1984 
States. 
[S. 47] 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled. That this Act may Shipping Act 
be cited as the "Shipping Act of 1984". 
«f J?!^. 
46 use app. 1 (01 
TABLE OF CONTENTS 
note. 
Sec. 2. Declaration of policy. 
Sec. 3. Definitions. 
Sec. 4. Agreements within scope of Act. 
Sec. 5. Agreements. 
Sec. 6. Action on agreements. 
Sec. 7. Exemption from antitrust laws. 
Sec. 8. Tariffs. 
Sec. 9. Controlled carriers. 
Sec. 10. Prohibited acts. 
Sec. 11. Complaints, investigations, reports, and reparations. 
Sec. 12. Subpenas and discovery. 
Sec. 13. Penalties. 
Sec. 14. Commission orders. 
Sec. 15. Reports and certificates. 
Sec. 16. Exemptions. 
Sec. 17. Regulations. 
Sec. 18. Agency reports and advisory commission. 
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Sec. 19. Ocean freight forwarders. 
Sec. 20. Repeals and conforming amendments. 
Sec. 21. Effective date. 
Sec. 22. Compliance with Budget Act. 
SEC. 2. DECLARATION OF POLICY. 
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The purposes of this Act are— 
(1) to establish a nondiscriminatory regulatory process for the 
common carriage of goods by water in the foreign commerce of 
the United States with a minimum of government intervention 
and regulatory costs; 
(2) to provide an efficient and economic transportation system 
in the ocean commerce of the United States that is, insofar as 
possible, in harmony with, and responsive to, international 
shipping practices; and 
(3) to encourage the development of an economically sound 
and efficient United States-flag liner fleet capable of meeting 
national security needs. 
SEC. 3. DEFINITIONS. 
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As used in this Act— 
(1) "^reement" means an understanding, arrangement, or 
association (written or oral) and any modification or cancella-
tion thereof; but the term does not include a maritime labor 
(2) "antitrust laws" means the Act of July 2, 1890 (ch. 647, 26 
Stat. 209), as amended; the Act of October 15, 1914 (ch. 323, 38 15 use i. 
Stat. 730), as amended; the Federal Trade Commission Act (38 15 use 12. 
note. 
98 STAT. 68 
PUBLIC LAW 98-237—MAR. 20, 1984 
15 use 41. 
Stat. 717), as amended; sections 73 and 74 of the Act of August 
15 use 8. 9. 
27,1894 (28 Stat. 570), as amended; the Act of June 19,1936 (ch. 
15 use 13. 
592, 49 Stat. 1526), as amended; the Antitrust Civil Process Act 
15 ysc 1311 
(76 Stat. 548), as amended; and amendments and Acts supple-
mentary thereto. 
(3) "assessment agreement" means an agreement, whether 
part of a collective-bargaining agreement or negotiated sepa-
rately, to the extent that it provides for the funding of collec-
tively bargained fringe benefit obligations on other than a 
uniform man-hour basis, regardless of the cargo handled or type 
of vessel or equipment utilized. 
(4) "bulk cargo" means cargo that is loaded and carried in 
bulk without mark or count. 
(5) "Commission" means the Federal Maritime Commission. 
(6) "common carrier" means a person holding itself out to the 
general public to provide transportation by water of passengers 
or cargo between the United States and a foreign country for 
compensation that— 
(A) assumes responsibility for the transportation from the 
port or point of receipt to the port or point of destination, 
and 
(B) utilizes, for all or part of that transportation, a vessel 
operating on the high seas or the Great Lakes between a 
port in the United States and a port in a foreign country. 
(7) "conference" means an association of ocean common carri-
ers permitted, pursuant to an approved or effective agreement, 
to engage in concerted activity and to utilize a common tariff; 
but the term does not include a joint service, consortium, pool-
ing, sailing, or transshipment arrangement. 
(8) "controlled carrier" means an ocean common carrier that 
is, or whose operating assets are, directly or indirectly, owned or 
controlled by the government under whose registry the vessels 
of the carrier operate; ownership or control by a government 
shall be deemed to exist with respect to any carrier if— 
(A) a majority portion of the interest in the carrier is 
owned or controlled in any manner by that government, by 
any agency thereof, or by any public or private person 
controlled by that government; or 
(B) that government has the right to appoint or disap-
prove the appointment of a majority of the directors, the 
chief operating officer, or the chief executive officer of the 
carrier. 
(9) "deferred rebate" means a return by a common carrier of 
any portion of the freight money to a shipper as a consideration 
for that shipper giving all, or any portion, of its shipments to 
that or any other common carrier, or for any other purpose, the 
payment of which is deferred beyond the completion of the 
service for which it is paid, and is made only if, during both the 
period for which computed and the period of deferment, the 
shipper has complied with the terms of the rebate agreement or 
arrangement. 
(10) "fighting ship" means a vessel used in a particular trade 
by an ocean common carrier or group of such carriers for the 
purpose of excluding, preventing, or reducing competition by 
driving another ocean common carrier out of that trade. 
(11) "forest products" means forest products in an unfinished 
or semifinished state that require special handling moving in 
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PUBLIC LAW 98-237—MAR. 20, 1984 
98 STAT. 69 
lot sizes too large for a container, including, but not limited to 
lumber in bundles, rough timber, ties, poles, piling, laminated 
beams, bundled siding, bundled plywood, bundled core stock or 
veneers, bundled particle or fiber boards, bundled hardwood, 
wood pulp in rolls, wood pulp in unitized bales, paper board in 
rolls, and paper in rolls. 
(12) "inland division" means the amount paid by a common 
carrier to an inland carrier for the inland portion of through 
transportation offered to the public by the common carrier. 
(13) "inland portion" means the charge to the public by a 
common carrier for the nonocean portion of through 
transportation. 
(14) "loyalty contract" means a contract with an ocean 
common carrier or conference, other than a service contract or 
contract based upon time-volume rates, by which a shipper 
obtains lower rates by committing all or a fixed portion of its 
cargo to that carrier or conference. 
(15) "marine terminal operator" means a person engaged in 
the United States in the business of furnishing wharfage, dock, 
warehouse, or other terminal facilities in connection with a 
common carrier. 
, . 
(16) "maritime labor agreement" means a collective-bargain- 
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ing agreement between an employer subject to this Act, or 
group of such employers, and a labor organization representing 
employees in the maritime or stevedoring industry, or an agree-
ment preparatory to such a collective-bargaining agreement 
among members of a multiemployer bargaining group, or an 
agreement specifically implementing provisions of such a collec-
tive-bargaining agreement or providing for the formation, fi-
nancing, or administration of a multiemployer bargaining 
group; but the term does not include an assessment agreement. 
(17) "non-vessel-operating common carrier" means a common 
carrier that does not operate the vessels by which the ocean 
transportation is provided, and is a shipper in its relationship 
with an ocean common carrier. 
(18) "ocean common carrier" means a vessel-operating 
common carrier; but the term does not include one engaged in 
ocean transportation by ferry boat or ocean tramp. 
(19) "ocean freight forwarder" means a person in the United 
States that— 
(A) dispatches shipments from the United States via 
common carriers and books or otherwise arranges space for 
those shipments on behalf of shippers; and 
(B) processes the documentation or performs related ac-
tivities incident to those shipments. 
(20) "person" includes individuals, corporations, partnerships, 
and associations existing under or authorized by the laws of the 
United States or of a foreign country. 
(21) "service contract" means a contract between a shipper 
and an ocean common carrier or conference in which the ship-
per makes a commitment to provide a certain minimum quan-
tity 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 service level—such as, assured space, 
transit time, port rotation, or similar service features; the con-
tract may also specify provisions in the event of nonperform-
ance on the part of either party. 
98 STAT. 70 
PUBLIC LAW 98-237—MAR. 20, 1984 
(22) "shipment" means all of the cargo carried under the 
terms of a single bill of lading. 
(23) "shipper" means an owner or person for whose account 
the ocean transportation of cargo is provided or the person to 
whom delivery is to be made. 
(24) "shippers' association" means a group of shippers that 
consolidates or distributes freight on a nonprofit basis for the 
members of the group in order to secure carload, truckload, or 
other volume rates or service contracts. 
(25) "through rate" means the single amount charged by a 
common carrier in connection with through transportation. 
(26) "through transportation" means contmuous transporta-
tion between origin and destination for which a through rate is 
gissessed and which is offered or performed by one or more 
carriers, at least one of which is a common carrier, between a 
United States point or port and a foreign point or port. 
(27) "United States" includes the several States, the District 
of Columbia, the Commonwealth of Puerto Rico, the Common-
wealth of the Northern Marianas, and all other United States 
territories and possessions. 
46 use app. 
SEC. 4. AGREEMENTS WITHIN SCOPE OF ACT. 
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1703. 
(a) OCEAN COMMON CARRIERS.—This Act applies to agreements by 
or among ocean common carriers to— 
(1) discuss, fix, or regulate transportation rates, including 
through rates, cargo space accommodations, and other condi-
tions of service; 
(2) pool or apportion traffic, revenues, earnings, or losses; 
(3) allot ports or restrict or otherwise regulate the number 
and character of sailings between ports; 
(4) limit or regulate the volume or character of cargo or 
passenger traffic to be carried; 
(5) engage in exclusive, preferential, or cooperative working 
arrangements among themselves or with one or more marine 
terminal operators or non-vessel-operating common carriers; 
(6) control, regulate, or prevent competition in international 
ocean transportation; and 
(7) regulate or prohibit their use of service contracts. 
(b) MARINE TERMINAL OPERATORS.—This Act applies to agree-
ments (to the extent the agreements involve ocean transportation in 
the foreign commerce of the United States) Eimong marine terminal 
operators and among one or more marine terminal operators and 
one or more ocean common carriers to— 
(1) discuss, fix, or regulate rates or other conditions of service; 
and 
(2) engage in exclusive, preferential, or cooperative working 
arrangements. 
(c) ACQUISITIONS.—This Act does not apply to an acquisition by 
any person, directly or indirectly, of any voting security or assets of 
any other person. 
46 use app. 
SEC. 5. AGREEMENTS. 
(a) FiuNG REQUIREMENTS.—A true copy of every agreement 
entered into with respect to an activity described in section 4 of this 
Act shall be filed with the Commission, except agreements related to 
transportation to be performed within or between foreign countries 
and agreements among common carriers to establish, operate, or 
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PUBLIC LAW 98-237—MAR. 20, 1984 
98 STAT. 71 
maintain a marine terminal in the United States. In the case of an 
oral agreement, a complete memorandum specifying in detail the 
substance of the agreement shall be filed. The Commission may by 
regulation prescribe the form and manner in which an agreement 
shall be filed and the additional information and documents neces-
sary to evaluate the agreement. 
(b) 
CONFERENCE 
AGREEMENTS.—Each 
conference 
agreement 
must— 
(1) state its purpose; 
(2) provide reasonable and equal terms and conditions for 
admission and readmission to conference membership for any 
ocean common carrier willing to serve the particular trade or 
route; 
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(3) permit any member to withdraw from conference member- 
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ship upon reasonable notice without penalty; 
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(4) at the request of any member, require an independent 
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neutral body to police fully the obligations of the conference and 
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its members; 
(5) prohibit the conference from engaging in conduct prohib-
ited by section 10(c) (1) or (3) of this Act; 
js, .* (6) provide for a consultation process designed to promote— 
(A) commercial resolution of disputes, and 
(B) cooperation with shippers in preventing and eliminat-
ing malpractices; 
(7) establish procedures for promptly and fairly considering 
shippers' requests and complaints; and 
(8) provide that any member of the conference may take 
independent action on any rate or service item required to be 
J 
filed in a tariff under section 8(a) of this Act upon not more than 
10 calendar days' notice to the conference and that the confer-
ence will include the new rate or service item in its tariff for use 
by that member, effective no later than 10 calendar days after 
receipt of the notice, and by any other member that notifies the 
conference that it elects to adopt the independent rate or 
service item on or after its effective date, in lieu of the existing 
conference tariff provision for that rate or service item. 
(c) INTERCONFERENCE AGREEMENTS.—Each agreement between 
carriers not members of the same conference must provide the right 
of independent action for each carrier. Each agreement between 
conferences must provide the right of independent action for each 
conference. 
(d) ASSESSMENT AGREEMENTS.—Assessment agreements shall be 
filed with the Commission and become effective on filing. The 
Commission shall thereafter, upon complaint filed within 2 years of 
the date of the agreement, disapprove, cancel, or modify any such 
agreement, or charge or assessment pursuant thereto, that it finds, 
after notice and hearing, to be unjustly discriminatory or unfair as 
between carriers, shippers, or ports. The Commission shall issue its 
final decision in any such proceeding within 1 year of the date of 
filing of the complaint. To the extent that an assessment or charge 
is found in the proceeding to be unjustly discriminatory or unfair as 
between carriers, shippers, or ports, the Commission shall remedy 
the unjust discrimination or unfairness for the period of time 
between the filing of the complaint and the final decision by means 
of assessment adjustments. These adjustments shall be implemented 
by prospective credits or debits to future assessments or charges, 
except in the case of a complainant who has ceased activities subject 
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98 STAT. 72 
PUBLIC LAW 98-237—MAR. 20, 1984 
46 u s e app. 801 
et seq., 843. 
46 u s e app. 
1705. 
Federal 
Register, 
publication. 
to the assessment or charge, in which case reparation may be 
awarded. Except for this subsection and section 7(a) of this Act, this 
Act, the Shipping Act, 1916, and the Intercoastal Shipping Act, 1933, 
do not apply to assessment agreements. 
(e) MARITIME LABOR AGREEMENTS.—This Act, the Shipping Act, 
1916, and the Intercoastal Shipping Act, 1933, do not apply to 
maritime labor agreements. This subsection does not exempt from 
this Act, the Shipping Act, 1916, or the Intercoastal Shipping Act, 
1933, any rates, charges, regulations, or practices of a common 
carrier that are required to be set forth in a tariff, whether or not 
those rates, charges, regulations, or practices arise out of, or are 
otherwise related to, a maritime labor agreement. 
SEC. 6. ACTION ON AGREEMENTS. 
(a) NOTICE.—Within 7 days after an agreement is filed, the Com-
mission shall transmit a notice of its filing to the Federal Register 
for publication. 
(b) REVIEW STANDARD.—The Commission shall reject any agree-
ment filed under section 5(a) of this Act that, after preliminary 
review, it finds does not meet the requirements of section 5. The 
Commission shall notify in writing the person filing the agreement 
of the reason for rejection of the agreement. 
(c) REVIEW AND EFFECTIVE DATE.—Unless rejected by the Commis-
sion under subsection (b), agreements, other than assessment agree-
ments, shall become effective— 
(1) on the 45th day after filing, or on the 30th day after notice 
of the filing is published in the Federal Register, whichever day 
is later; or 
(2) if additional information or documentary material is 
requested under subsection (d), on the 45th day after the Com-
mission receives— 
(A) all the additional information and documentary mate-
rial requested; or 
(B) if the request is not fully complied with, the informa-
tion and documentary material submitted and a statement 
of the reasons for noncompliance with the request. The 
period specified in paragraph (2) may be extended only 
by the United States District Court for the District of 
Columbia upon an application of the Commission under 
subsection (i). 
(d) ADDITIONAL INFORMATION.—Before the expiration of the period 
specified in subsection (c)(1), the Commission may request from the 
person filing the agreement any additional information and docu-
mentary material it deems necessary to make the determinations 
required by this section. 
(e) REQUEST FOR EXPEDITED APPROVAL.—The Commission may, 
upon request of the filing party, shorten the review period specified 
in subsection (c), but in no event to a date less than 14 days after 
notice of the filing of the agreement is published in the Federal 
Register. 
(f) TERM OF AGREEMENTS.—The Commission may not limit the 
effectiveness of an agreement to a fixed term. 
(g) SUBSTANTIALLY ANTICOMPETITIVE AGREEMENTS.—If, at any time 
after the filing or effective date of an agreement, the Commission 
determines that the agreement is likely, by a reduction in competi-
tion, to produce an unreasonable reduction in transportation service 
or an unreasonable increase in transportation cost, it may, after 
PUBLIC LAW 98-237—MAR. 20, 1984 
98 STAT. 73 
notice to the person filing the agreement, seek appropriate injunc-
tive relief under subsection (h). 
(h) INJUNCTIVE RELIEF.—The Commission may, upon making the 
determination specified in subsection (g), bring suit in the United 
States District Court for the District of Columbia to enjoin operation 
of the agreement. The court may issue a temporary restraining 
order or preliminary injunction and, upon a showing that the 
agreement is likely, by a reduction in competition, to produce an 
unreasonable reduction in transportation service or an unreason-
able increase in transportation cost, may enter a permanent injunc-
tion. In a suit under this subsection, the burden of proof is on the 
Commission. The court may not allow a third party to intervene 
with respect to a claim under this subsection. 
(i) COMPLIANCE WITH INFORMATIONAL NEEDS.—If a person filing 
an agreement, or an officer, director, partner, agent, or employee 
thereof, fails substantially to comply with a request for the submis-
sion of additional information or documentary material within the 
period specified in subsection (c), the United States District Court 
for the District of Columbia, at the request of the Commission— 
(1) may order compliance; 
(2) shall extend the period specified in subsection (c)(2) until 
there has been substantial compliance; and 
(3) may grant such other equitable relief as the court in its 
discretion determines necessary or appropriate. 
(j) NONDISCLOSURE OF SUBMITTED MATERIAL.—Except for an agree-
ment filed under section 5 of this Act, information and documentary 
material filed with the Commission under section 5 or 6 is exempt 
from disclosure under section 552 of title 5, United States Code and 
may not be made public except as may be relevant to an administra-
tive or judicial action or proceeding. This section does not prevent 
disclosure to either body of Congress or to a duly authorized commit-
tee or subcommittee of Congress, 
is' ' •'-I-' 
(k) REPRESENTATION.—Upon notice to the Attorney General, the 
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Commission may represent itself in district court proceedings under 
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subsections (h) and (i) of this section and section 11(h) of this Act. 
With the approval of the Attorney General, the Commission may 
represent itself in proceedings in the United States Courts of Appeal 
under subsections (h) and (i) of this section and section 11(h) of this 
Act. 
SEC. 7. EXEMPTION FROM ANTITRUST LAWS. 
f 
LV^^ ^PP 
1 (Ob. 
(a) IN GENERAL.—The antitrust laws do not apply to— 
(1) any agreement that has been filed under section 5 of this 
Act and is effective under section 5(d) or section 6, or is exempt 
under section 16 of this Act from any requirement of this Act; 
(2) any activity or agreement within the scope of this Act, 
whether permitted under or prohibited by this Act, undertaken 
or entered into with a reasonable basis to conclude that (A) it is 
pursuant to an agreement on file with the Commission and in 
effect when the activity took place, or (B) it is exempt under 
section 16 of this Act from any filing requirement of this Act; 
(3) any agreement or activity that relates to transportation 
services within or between foreign countries, whether or not via 
the United States, unless that agreement or activity has a 
direct, substantial, and reasonably foreseeable effect on the 
commerce of the United States; 
98 STAT. 74 
PUBLIC LAW 98-237—MAR. 20, 1984 
-Dfij 
(4) any agreement or activity concerning the foreign inland 
segment of through transportation that is part of transportation 
provided in a United States import or export trade; 
(5) any agreement or activity to provide or furnish wharfage, 
dock, warehouse, or other terminal facilities outside the United 
States; or 
(6) subject to section 20(eX2) of this Act, any agreement, 
modification, or cancellation approved by the Commission 
before the effective date of this Act under section 15 of the 
97 Stat. 500. 
Shipping Act, 1916, or permitted under section 14b thereof, and 
any properly published tariff, rate, fare, or charge, classifica-
tion, rule, or regulation explanatory thereof implementing that 
argeement, modification, or cancellation. 
(b) EXCEPTIONS.—This Act does not extend antitrust immunity— 
(1) to any £igreement with or among air carriers, rail carriers, 
motor carriers, or common carriers by water not subject to this 
Act with lespect to transportation within the United States; 
(2) to any discussion or agreement among common carriers 
that are subject to this Act regarding the inland divisions (as 
opposed to the inland portions) of through rates within the 
United States; or 
(3) to any agreement among common carriers subject to this 
Act to establish, operate, or maintain a marine terminal in the 
United States. 
(c) LIMITATIONS.—(1) Any determination by an agency or court 
that results in the denial or removal of the immunity to the 
antitrust laws set forth in subsection (a) shall not remove or alter 
the antitrust immunity for the period before the determination. 
(2) No person may recover damages under section 4 of the Clayton 
Act (15 U.S.C. 15), or obtain injunctive relief under section 16 of that 
Act (15 U.S.C. 26), for conduct prohibited by this Act. 
46USCapp. 
SEC. 8. TARIFFS. 
Public 
(a) IN GENERAL.— 
availability. 
(1) Except with regard to bulk cargo, forest products, recycled 
metal scrap, waste paper, and paper waste, each common car-
rier and conference shall file with the Commission, and keep 
open to public inspection, tariffs showing all its rates, charges, 
classifications, rules, and practices between all points or ports 
on its own route and on any through transportation route that 
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u 
has been established. However, common carriers shall not be 
'MVi 
required to state separately or otherwise reveal in tariff filings 
the inland divisions of a through rate. Tariffs shall— 
(A) state the places between which cargo will be carried; 
(B) list each classification of cargo in use; 
(C) state the level of ocean freight forwarder compensa-
tion, if any, by a carrier or conference; 
(D) state separately each terminal or other charge, privi-
lege, or facility under the control of the carrier or confer-
ence and any rules or regulations that in any way change, 
affect, or determine any part or the aggregate of the rates 
or charges; and 
(E) include sample copies of any loyalty contract, bill of 
lading, contract of affreightment, or other document evi-
dencing the transportation agreement. 
(2) Copies of tariffs shall be made available to any person, and 
a reasonable charge may be assessed for them. 
PUBLIC LAW 98-237—MAR. 20, 1984 
98 STAT. 75 
(b) TIME-VOLUME RATES.—Rates shown in tariffs filed under sub-
section (a) may vary with the volume of cargo offered over a 
specified period of time. 
(c) SERVICE CONTRACTS.—An ocean common carrier or conference 
may enter into a service contract with a shipper or shippers' associ-
ation subject to the requirements of this Act. Except for service 
contracts dealing with bulk cargo, forest products, recycled metal 
scrap, waste paper, or paper waste, each contract entered into under 
this subsection 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; 
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(6) service commitments; and 
f 
(7) the liquidated damages for nonperformance, if any. 
The exclusive remedy for a breach of a contract entered into under 
this subsection shall be an action in an appropriate court, unless the 
parties otherwise agree. 
(d) RATES.—No new or initial rate or change in an existing rate 
that results in an increased cost to the shipper may become effective 
earlier than 30 days after filing with the Commission. The Commis-
sion, for good cause, may allow such a new or initial rate or change 
to become effective in less than 30 days. A change in an existing rate 
that results in a decreased cost to the shipper may become effective 
upon publication and filing with the Commission. 
(e) REFUNDS.—The Commission may, upon application of a carrier 
or shipper, permit a common carrier or conference to refund a 
portion of freight charges collected from a shipper or to waive the 
collection of a portion of the charges from a shipper if— 
(1) there is an error in a tariff of a clerical or administrative 
nature or an error due to inadvertence in failing to file a new 
tariff and the refund will not result in discrimination among 
shippers, ports, or carriers; 
(2) the common carrier or conference has, prior to filing an 
application for authority to make a refund, filed a new tariff 
with the Commission that sets forth the rate on which the 
refund or waiver would be based; 
(3) the common carrier or conference agrees that if permission 
is granted by the Commission, an appropriate notice will be 
published in the tariff, or such other steps taken as the Commis-
sion may require that give notice of the rate on which the 
refund or waiver would be based, and additional refunds or 
waivers as appropriate shall be made with respect to other 
shipments in the manner prescribed by the Commission in its 
order approving the application; and 
(4) the application for refund or waiver is filed with the 
Commission within 180 days from the date of shipment. 
(f) FORM.—The Commission may by regulation prescribe the form 
and manner in which the tariffs required by this section shall be 
Confidentiality. 
Public 
availability. 
98 STAT. 76 
PUBLIC LAW 98-237—MAR. 20, 1984 
published and filed. The Commission may reject a tariff that is not 
filed in conformity with this section and its regulations. Upon 
rejection by the Commission, the tariff is void and its use is 
unlawful. 
46 u s e app. 
SEC. 9. CONTROLLED CARRIERS. 
(a) CONTROLLED CARRIER RATES.—No controlled carrier subject to 
this section may maintain rates or charges in its tariffs filed with 
the Commission that are below a level that is just and reasonable, 
nor may any such carrier establish or maintain unjust or unreason-
able classifications, rules, or regulations in those tariffs. An unjust 
or unreasonable classification, rule, or regulation means one that 
results or is likely to result in the carriage or handling of cargo at 
rates or charges that are below a just and reasonable level. The 
Commission may, at any time after notice and hearing, disapprove 
any rates, charges, classifications, rules, or regulations that the 
controlled carrier has failed to demonstrate to be just and reason-
able. In a proceeding under this subsection, the burden of proof is on 
the controlled carrier to demonstrate that its rates, charges, classifi-
cations, rules, or regulations are just and reasonable. Rates, charges, 
classifications, rules, or regulations filed by a controlled carrier that 
have been rejected, suspended, or disapproved by the Commission 
are void and their use is unlawful. 
(b) RATE STANDARDS.—For the purpose of this section, in determin-
ing whether rates, charges, classifications, rules, or regulations by a 
controlled carrier are just and reasonable, the Commission may take 
into account appropriate factors including, but not limited to, 
whether— 
(1) the rates or charges which have been filed or which would 
result from the pertinent classifications, rules, or regulations 
are below a level which is fully compensatory to the controlled 
carrier based upon that carrier's actual costs or upon its con-
structive costs, which are hereby defined as the costs of another 
carrier, other than a controlled carrier, operating similar ves-
sels and equipment in the same or a similar trade; 
(2) the rates, charges, classifications, rules, or regulations are 
the same as or similar to those filed or assessed by other 
carriers in the same trade; 
(3) the rates, charges, classifications, rules, or regulations are 
, 
required to eissure movement of particular cargo in the trade; or 
(4) the rates, charges, classifications, rules, or regulations are 
required to maintain acceptable continuity, level, or quality of 
common carrier service to or from affected ports. 
(c) EFFECTIVE DATE OF RATES.—Notwithstanding section 8(d) of 
this Act, the rates, charges, classifications, rules, or regulations of 
controlled carriers may not, without special permission of the Com-
mission, become effective sooner than the 30th day after the date of 
filing with the Commission. Each controlled carrier shall, upon the 
request of the Commission, file, within 20 days of request (with 
respect to its existing or proposed rates, charges, classifications, 
rules, or regulations), a statement of justification that sufficiently 
details the controlled carrier's need and purpose for such rates, 
charges, classifications, rules, or regulations upon which the Com-
mission may reasonably base its determination of the lawfulness 
thereof. 
(d) DISAPPROVAL OF RATES.—Whenever the Commission is of the 
opinion that the rates, charges, classifications, rules, or regulations 
PUBLIC LAW 98-237—MAR. 20, 1984 
98 STAT. 7'> 
filed by a controlled carrier may be unjust and unreasonable, the 
Commission may issue an order to the controlled carrier to show 
cause why those rates, charges, classifications, rules, or regulations 
should not be disapproved. Pending a determination as to their 
lawfulness in such a proceeding, the Commission may suspend the 
rates, charges, classifications, rules, or regulations at any time 
before their effective date. In the case of rates, charges, classifica-
tions, rules, or regulations that have already become effective, the 
Commission may, upon the issuance of an order to show cause, 
suspend those rates, charges, classifications, rules, or regulations on 
not less than 60 days' notice to the controlled carrier. No period of 
suspension under this subsection may be greater than 180 days. 
Whenever the Commission has suspended any rates, charges, classi-
fications, rules, or regulations under this subsection, the affected 
carrier may file new rates, charges, classifications, rules, or regula-
tions to take effect immediately during the suspension period in lieu 
of the suspended rates, charges, classifications, rules, or regula-
tions—except that the Commission may reject the new rates, 
charges, classifications, rules, or regulations if it is of the opinion 
that they are unjust and unreasonable. 
(e) PRESIDENTIAL REVIEW.—Concurrently with the publication 
thereof, the Commission shall transmit to the President each order 
of suspension or final order of disapproval of rates, charges, classifi-
cations, rules, or regulations of a controlled carrier subject to this 
section. Within 10 days after the receipt or the effective date of the 
Commission order, the President may request the Commission in 
writing to stay the effect of the Commission's order if the President 
finds that the stay is required for reasons of national defense or 
foreign policy, which reasons shall be specified in the report. Not-
withstanding any other law, the Commission shall immediately 
grant the request by the issuance of an order in which the Presi-
dent's request shall be described. During any such stay, the Presi-
dent shall, whenever practicable, attempt to resolve the matter in 
controversy by negotiation with representatives of the applicable 
foreign governments. 
(f) EXCEPTIONS.—This section does not apply to— 
(1) a controlled carrier of a state whose vessels are entitled by 
a treaty of the United States to receive national or most-
favored-nation treatment; 
(2) a controlled carrier of a state which, on the effective date 
of this section, has subscribed to the statement of shipping 
policy contained in note 1 to annex A of the Code of Liberaliza-
tion of Current Invisible Operations, adopted by the Council of 
the Organization for Economic Cooperation and Development; 
(3) rates, charges, classifications, rules, or regulations of a 
controlled carrier in any particular trade that are covered by an 
agreement effective under section 6 of this Act, other than an 
agreement in which all of the members are controlled carriers 
not otherwise excluded from the provisions of this subsection; 
(4) rates, charges, classifications, rules, or regulations govern-
ing the transportation of cargo by a controlled carrier between 
the country by whose government it is owned or controlled, as 
defined herein and the United States; or 
(5) a trade served exclusively by controlled carriers. 
SEC. 10. PROHIBITED ACTS. 
1709^^ ^^^ 
(a) IN GENERAL.—No person may— 
98 STAT. 78 
PUBLIC LAW 98-237—MAR. 20, 1984 
^-ti 
(1) knowingly and willfully, directly or indirectly, by means of 
false billing, false clEissification, false weighing, false report of 
weight, false measurement, or by any other unjust or unfair 
device or means obtain or attempt to obtain ocean transporta-
tion for property at less than the rates or charges that would 
otherwise be applicable; 
(2) operate under an agreement required to be filed under 
section 5 of this Act that has not become effective under section 
6, or that heis been rejected, disapproved, or canceled; or 
(3) operate under an agreement required to be filed under 
section 5 of this Act except in accordance with the terms of the 
agreement or any modifications made by the Commission to the 
agreement. 
(b) COMMON CARRIERS.—No common carrier, either alone or in 
conjunction with any other person, directly or indirectly, may— 
(1) charge, demand, collect, or receive greater, less, or differ-
ent compensation for the transportation of property or for any 
service in connection therewith than the rates and charges that 
are shown in its tariffs or service contracts; 
(2) rebate, refund, or remit in any manner, or by any device, 
any portion of its rates except in accordance with its tariffs or 
service contracts; 
(3) extend or deny to any person any privilege, concession, 
equipment, or facility except in accordance with its tariffs or 
service contracts; 
(4) allow any person to obtain transportation for property at 
less than the rates or charges established by the carrier in its 
tariff or service contract by means of false billing, false classifi-
cation, false weighing, false measurement, or by any other 
unjust or unfair device or means; 
(5) retaliate against any shipper by refusing, or threatening to 
refuse, cargo space accommodations when available, or resort to 
other unfair or unjustly discriminatory methods because the 
shipper has patronized another carrier, or has filed a complaint, 
or for any other reason; 
(6) except for service contracts, engage in any unfair or 
unjustly discriminatory practice in the matter of— 
(A) rates; 
(B) cargo classifications; 
(C) cargo space accommodations or other facilities, due 
regard being had for the proper loading of the vessel and 
the available tonnage; 
(D) the loading and landing of freight; or 
(E) the adjustment and settlement of claims; 
i 
(7) employ any fighting ship; 
(8) offer or pay any deferred rebates; 
(9) use a loyalty contract, except in conformity with the 
antitrust laws; 
(10) demand, charge, or collect any rate or charge that is 
unjustly discriminatory between shippers or ports; 
(11) except for service contracts, make or give any undue or 
unreasonable preference or advantage to any particular person, 
locality, or description of traffic in any respect whatsoever; 
(12) subject any particular person, locality, or description of 
traffic to an unreasonable refusal to deal or any undue or 
quE '«jJ^ ^+ 
unreasonable prejudice or disadvantage in any respect whatso-
ever; 
,q»'f»> 
PUBLIC LAW 98-237—MAR. 20, 1984 
98 STAT. 79 
(13) refuse to negotiate with a shippers' association; or 
(14) knowingly disclose, offer, solicit, or receive any informa-
tion concerning the nature, kind, quantity, destination, con-
signee, or routing of any property tendered or delivered to a 
common carrier without the consent of the shipper or consignee 
T 
if that information— 
(A) may be used to the detriment or prejudice of the 
1 
shipper or consignee; 
(B) may improperly disclose its business transaction to a 
competitor; or 
(C) may be used to the detriment or prejudice of any 
common carrier. 
Nothing in paragraph (14) shall be construed to prevent providing 
such information, in response to legal process, to the United States, 
or to an independent neutral body operating within the scope of its 
authority to fulfill the policing obligations of the parties to an 
agreement effective under this Act. Nor shall it be prohibited for 
any ocean common carrier that is a party to a conference agreement 
approved under this Act, or any receiver, trustee, lessee, agent, or 
employee of that carrier, or any other person authorized by that 
carrier to receive information, to give information to the conference 
or any person, firm, corporation, or agency designated by the confer-
ence, or to prevent the conference or its designee from soliciting or 
receiving information for the purpose of determining whether a 
shipper or consignee has breached an agreement with the confer-
ence or its member lines or for the purpose of determining whether 
a member of the conference has breached the conference agreement, 
or for the purpose of compiling statistics of cargo movement, but the 
use of such information for any other purpose prohibited by this Act 
or any other Act is prohibited. 
(c) CONCERTED ACTION.—No conference or group of two or more 
common carriers may— 
(1) boycott or take any other concerted action resulting in an 
unreasonable refusal to deal; 
(2) engage in conduct that unreasonably restricts the use of 
intermodal services or technological innovations; 
(3) engage in any predatory practice designed to eliminate the 
participation, or deny the entry, in a particular trade of a 
common carrier not a member of the conference, a group of 
common carriers, an ocean tramp, or a bulk carrier; 
(4) negotiate with a nonocean carrier or group of nonocean 
carriers (for example, truck, rail, or air operators) on any 
matter relating to rates or services provided to ocean common 
carriers within the United States by those nonocean carriers: 
Provided, That this paragraph does not prohibit the setting and 
publishing of a joint through rate by a conference, joint venture, 
or an association of ocean common carriers; 
(5) deny in the export foreign commerce of the United States 
compensation to an ocean freight forwarder or limit that com-
pensation to less than a reasonable amount; or 
(6) allocate shippers among specific carriers that are parties 
to the agreement or prohibit a carrier that is a party to the 
agreement from soliciting cargo from a particular shipper, 
except as otherwise required by the law of the United States or 
the importing or exporting country, or as agreed to by a shipper 
in a service contract. 
98 STAT. 80 
PUBLIC LAW 98-237—MAR. 20, 1984 
(d) COMMON CARRIERS, OCEAN FREIGHT FORWARDERS, AND MARINE 
TERMINAL OPERATORS.— 
(1) No common carrier, ocean freight forwarder, or marine 
terminal operator may fail to establish, observe, and enforce 
just and reasonable regulations and practices relating to or 
connected with receiving, handling, storing, or delivering 
property. 
(2) No marine terminal operator may agree with another 
marine terminal operator or with a common carrier to boycott, 
or unreasonably discriminate in the provision of terminal serv-
ices to, any common carrier or ocean tramp. 
(3) The prohibitions in subsection (b) (11), (12), and (14) of this 
section apply to marine terminal operators. 
(e) JOINT VENTURES.—For purposes of this section, a joint venture 
or consortium of two or more common carriers but operated as a 
single entity shall be treated as a single common carrier. 
46 use app. 
SEC. 11. COMPLAINTS, INVESTIGATIONS, REPORTS, AND REPARATIONS. 
(a) FiuNG OF COMPLAINTS.—Any person may file with the Commis-
sion a sworn complaint alleging a violation of this Act, other than 
section 6(g), and may seek reparation for any injury caused to the 
complainant by that violation. 
(b) SATISFACTION OR INVESTIGATION OF COMPLAINTS.—The Commis-
sion shall furnish a copy of a complaint filed pursuant to subsection 
(a) of this section to the person named therein who shall, within a 
reasonable time specified by the Commission, satisfy the complaint 
or answer it in writing. If the complaint is not satisfied, the Commis-
sion shall investigate it in an appropriate manner and make an 
appropriate order. 
(c) COMMISSION INVESTIGATIONS.—The Commission, upon com-
plaint or upon its own motion, may investigate any conduct or 
agreement that it believes may be in violation of this Act. Except in 
the case of an injunction granted under subsection (h) of this section, 
each agreement under investigation under this section remains in 
effect until the Commission issues an order under this subsection. 
The Commission may by order disapprove, cancel, or modify any 
agreement filed under section 5(a) of this Act that operates in 
violation of this Act. With respect to agreements inconsistent with 
section 6(g) of this Act, the Commission's sole remedy is under 
section 6(h). 
(d) CONDUCT OF INVESTIGATION.—Within 10 days after the initi-
ation of a proceeding under this section, the Commission shall set a 
date on or before which its final decision will be issued. This date 
may be extended for good cause by order of the Commission. 
(e) UNDUE DELAYS.—If, within the time period specified in subsec-
tion (d), the Commission determines that it is unable to issue a final 
decision because of undue delays caused by a party to the proceed-
ings, the Commission may impose sanctions, including entering a 
decision adverse to the delaying party. 
(f) REPORTS.—The Commission shall make a written report of 
every investigation made under this Act in which a hearing was 
held stating its conclusions, decisions, findings of fact, and order. A 
copy of this report shall be furnished to all parties. The Commission 
shall publish each report for public information, and the published 
report shall be competent evidence in all courts of the United States. 
(g) REPARATIONS.—For any complaint filed within 3 years after the 
cause of action accrued, the Commission shall, upon petition of the 
PUBLIC LAW 98-237—MAR. 20, 1984 
98 STAT. 81 
complainant and after notice and hearing, direct payment of repara-
tions to the complainant for actual injury (which, for purposes of 
this subsection, also includes the loss of interest at commercial rates 
compounded from the date of injury) caused by a violation of this 
Act plus reasonable attorney's fees. Upon a showing that the injury 
was caused by activity that is prohibited by section 10(b) (5) or (7) or 
section 10(c) (1) or (4) of this Act, or that violates section 10(a) (2) or 
(3), the Commission may direct the payment of additional amounts; 
but the total recovery of a complainant may not exceed twice the 
amount of the actual injury. In the case of injury caused by an 
activity that is prohibited by section 10(b)(6) (A) or (B) of this Act, 
the amount of the injury shall be the difference between the rate 
paid by the injured shipper and the most favorable rate paid by 
another shipper, 
(h) INJUNCTION.— 
(1) In connection with any investigation conducted under this 
section, the Commission may bring suit in a district court of the 
United States to enjoin conduct in violation of this Act. Upon a 
showing that standards for granting injunctive relief by courts 
of equity are met and after notice to the defendant, the court 
may grant a temporary restraining order or preliminary injunc-
tion for a period not to exceed 10 days after the Commission has 
issued an order disposing of the issues under investigation. Any 
such suit shall be brought in a district in which the defendant 
resides or transacts business. 
(2) After filing a complaint with the Commission under sub-
section (a), the complainant may file suit in a district court of 
the United States to enjoin conduct in violation of this Act. 
Upon a showing that standards for granting injunctive relief by 
courts of equity are met and after notice to the defendant, the 
court may grant a temporary restraining order or preliminary 
injunction for a period not to exceed 10 days after the Commis-
sion has issued an order disposing of the complaint. Any such 
suit shall be brought in the district in which the defendant has 
been sued by the Commission under paragraph (1); or, if no suit 
has been filed, in a district in which the defendant resides or 
transacts business. A defendant that prevails in a suit under 
this paragraph shall be allowed reasonable attorney's fees to be 
assessed and collected as part of the costs of the suit. 
SEC. 12. SUBPENAS AND DISCOVERY. 
46 USC app. 
1711. 
(a) IN GENERAL.—In investigations and adjudicatory proceedings 
under this Act— 
(1) depositions, written interrogatories, and discovery proce-
dures may be utilized by any party under rules and regulations 
' 
issued by the Commission that, to the extent practicable, shall 
be in conformity with the rules applicable in civil proceedings in 
the district courts of the United States; and 
(2) the Commission may by subpena compel the attendance of 
witnesses and the production of books, papers, documents, and 
other evidence. 
(b) WITNESS FEES.—Witnesses shall, unless otherwise prohibited 
by law, be entitled to the same fees and mileage as in the courts of 
the United States. 
31-194 0 - 86 - 5 : QL. 3 Part 1 
98 STAT. 82 
PUBLIC LAW 98-237—MAR. 20, 1984 
46 u s e app. 
SEC. 13. PENALTIES. 
1712. 
(a) ASSESSMENT OF PENALTY.—Whoever violates a provision of this 
Act, a regulation issued thereunder, or a Commission order is liable 
to the United States for a civil penalty. The amount of the civil 
penalty, unless otherwise provided in this Act, may not exceed 
$5,000 for each violation unless the violation was willfully and 
knowingly committed, in which case the amount of the civil penalty 
may not exceed $25,000 for each violation. Each day of a continuing 
violation constitutes a separate offense. 
(b) ADDITIONAL PENALTIES.— 
(1) For a violation of section 10(b) (1), (2), (3), (4), or (8) of this 
Act, the Commission may suspend any or all tariffs of the 
common carrier, or that common carrier's right to use any or all 
tariffs of conferences of which it is a member, for a period not to 
exceed 12 months. 
(2) For failure to supply information ordered to be produced or 
compelled by subpena under section 12 of this Act, the Commis-
sion may, after notice and an opportunity for hearing, suspend 
any or all tariffs of a common carrier, or that common carrier's 
right to use any or all tariffs of conferences of which it is a 
member. 
(3) A common carrier that accepts or handles cargo for car-
riage under a tariff that has been suspended or after its right to 
utilize that tariff has been suspended is subject to a civil penalty 
of not more than $50,000 for each shipment. 
(4) If, in defense of its failure to comply with a subpena or 
discovery order, a common carrier alleges that documents or 
information located in a foreign country cannot be produced 
because of the laws of that country, the Commission shall 
immediately notify the Secretary of State of the failure to 
comply and of the allegation relating to foreign laws. Upon 
receiving the 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. 
(5) If, after notice and hearing, the Commission finds that the 
action of a common carrier, acting alone or in concert with any 
person, or a foreign government has unduly impaired access of a 
vessel documented under the laws of the United States to ocean 
trade between foreign ports, the Commission shall take action 
that it finds appropriate, including the imposition of any of the 
penalties authorized under paragraphs (1), (2), and (3) of this 
subsection. 
President. 
(6) Before an order under this subsection becomes effective, it 
shall be immediately submitted to the President who may, 
within 10 days after receiving it, disapprove the order if the 
President finds that disapproval is required for reasons of the 
national defense or the foreign policy of the United States. 
(c) ASSESSMENT PROCEDURES.—Until a matter is referred to the 
Attorney General, the Commission may, after notice and an oppor-
tunity for hearing, assess each civil penalty provided for in this Act. 
In determining the amount of the penalty, the Commission shall 
take into account the nature, circumstances, extent, and gravity of 
the violation committed and, with respect to the violator, the degree 
of culpability, history of prior offenses, ability to pay, and such other 
'It 
PUBLIC LAW 98-237—MAR. 20, 1984 
98 STAT. 83 
matters as justice may require. The Commission may compromise, 
modify, or remit, with or without conditions, any civil penalty. 
(d) REVIEW OF CIVIL PENALTY.—A person against whom a civil 
penalty is assessed under this section may obtain review thereof 
under chapter 158 of title 28, United States Code. 
(e) FAILURE TO PAY ASSESSMENT.—If a person fails to pay an 
assessment of a civil penalty after it has become final or after the 
appropriate court has entered final judgment in favor of the Com-
mission, the Attorney General at the request of the Commission 
may seek to recover the amount assessed in an appropriate district 
court of the United States. In such an action, the court shall enforce 
the Commission's order unless it finds that the order was not 
regularly made or duly issued. 
(f) LIMITATIONS.— 
(1) No penalty may be imposed on any person for conspiracy 
to violate section 10 (aXD, Ot>)(l), or (b)(4) of this Act, or to 
defraud the Commission by concealment of such a violation. 
(2) Each proceeding to £issess a civil penalty under this section 
shall be commenced within 5 years from the date the violation 
occurred. 
SEC. 14. COMMISSION ORDERS. 
(a) IN GENERAL.—Orders of the Commission relating to a violation 
of this Act or a regulation issued thereunder shall be made, upon 
sworn complaint or on its own motion, only after opportunity for 
hearing. Each order of the Commission shall continue in force 
for the period of time specified in the order or until suspended, 
modified, or set aside by the Commission or a court of competent 
jurisdiction. 
(b) REVERSAL OR SUSPENSION OF ORDERS.—The Commission may 
reverse, suspend, or modify any order made by it, and upon applica-
tion of any party to a proceeding may grant a rehearing of the same 
or any matter determined therein. No rehearing may, except by 
special order of the Commission, operate as a stay of that order. 
(c) ENFORCEMENT OF NONREPARATION ORDERS.—In case of viola-
tion of an order of the Commission, or for failure to comply with a 
Commission subpena, the Attorney General, at the request of the 
Commission, or any party injured by the violation, may seek 
enforcement by a United States district court having jurisdiction 
over the parties. If, after hearing, the court determines that the 
order was properly made and duly issued, it shall enforce the 
order by an appropriate injunction or other process, mandatory or 
otherwise. 
(d) ENFORCEMENT OF REPARATION ORDERS.—(1) In case of violation 
of an order of the Commission for the payment of reparation, the 
person to whom the award was made may seek enforcement of the 
order in a United States district court having jurisdiction of the 
parties. 
(2) In a United States district court the findings and order of the 
Commission shall be prima facie evidence of the facts therein stated, 
and the petitioner shall not be liable for costs, nor for the costs of 
any subsequent stage of the proceedings, unless they accrue upon 
his appeal. A petitioner in a United States district court who 
prevails shall be allowed reasonable attorney's fees to be assessed 
and collected as part of the costs of the suit. 
(3) All parties in whose favor the Commission has made an award 
of reparation by a single order may be joined as plaintiffs, and all 
28 u s e 2341 
et seq. 
46 u s e app. 
1713. 
Prima facie 
evidence. 
98 STAT. 84 
PUBLIC LAW 98-237—MAR. 20, 1984 
other parties in the order may be joined as defendants, in a single 
suit in a district in which any one plaintiff could maintain a suit 
against any one defendant. Service of process against a defendant 
not found in that district may be made in a district in which is 
located any office of, or point of call on a regular route operated by, 
that defendant. Judgment may be entered in favor of any plaintiff 
against the defendant liable to that plaintiff. 
(e) STATUTE OF LIMITATIONS.—An action seeking enforcement of a 
Commission order must be filed within 3 years after the date of the 
violation of the order. 
46 u s e app. 
SEC. 15. REPORTS AND CERTIFICATES. 
1714. 
(a) REPORTS.—The Commission may require any common carrier, 
or any officer, receiver, trustee, lessee, agent, or employee thereof, to 
file with it any periodical or special report or any account, record, 
rate, or charge, or memorandum of any facts and transactions 
appertaining to the business of that common carrier. The report, 
account, record, rate, charge, or memorandum shall be made under 
oath whenever the Commission so requires, and shall be furnished 
in the form and within the time prescribed by the Commission. 
Conference minutes required to be filed with the Commission under 
this section shall not be released to third parties or published by the 
Commission. 
(b) CERTIFICATION.—The Commission shall require the chief execu-
tive officer of each common carrier and, to the extent it deems 
feasible, may require any shipper, shippers' association, marine 
terminal operator, ocean freight forwarder, or broker to file a 
periodic written certification made under oath with the Commission 
attesting to— 
(1) a policy prohibiting the payment, solicitation, or receipt of 
any rebate that is unlawful under the provisions of this Act; 
(2) the fact that this policy has been promulgated recently to 
each owner, officer, employee, and agent thereof; 
(3) the details of the efforts made within the company or 
otherwise to prevent or correct illegal rebating; and 
(4) a policy of full cooperation with the Commission in its 
efforts to end those illegal practices. 
Failure to file a certification shall result in a civil penalty of not 
more than $5,000 for each day the violation continues. 
46 u s e app. 
SEC. 16. EXEMPTIONS. 
1715. 
„,, 
^ 
. 
. 
,. 
. 
The Commission, upon application or on its own motion, may by 
order or rule exempt for the future any class of agreements between 
persons subject to this Act or any specified activity of those persons 
from any requirement of this Act if it finds that the exemption will 
not substantially impair effective regulation by the Commission, be 
unjustly discriminatory, result in a substantial reduction in compe-
tition, or be detrimental to commerce. The Commission may attach 
conditions to any exemption and may, by order, revoke any exemp-
tion. No order or rule of exemption or revocation of exemption may 
be issued unless opportunity for hearing has been afforded inter-
ested persons and departments and agencies of the United States. 
46 u s e app. 
SEC. 17. REGULATIONS. 
1716 
(a) The Commission may prescribe rules and regulations as neces-
sary to carry out this Act. 
PUBLIC LAW 98-237—MAR. 20, 1984 
98 STAT. 85 
(b) The Commission may prescribe interim rules and regulations 
necessary to carry out this Act. For this purpose, the Commission is 
excepted from compliance with the notice and comment require-
ments of section 553 of title 5, United States Code. All rules and 
regulations prescribed under the authority of this subsection that 
are not earlier superseded by final rules shall expire no later than 
270 days after the date of enactment of this Act. 
SEC. 18. AGENCY REPORTS AND ADVISORY COMMISSION. 
(a) COLLECTION OF DATA.—For a period of 5 years following the 
enactment of this Act, the Commission shall collect and analyze 
information concerning the impact of this Act upon the interna-
tional ocean shipping industry, including data on: 
(1) increases or decreases in the level of tariffs; 
(2) changes in the frequency or type of common carrier serv-
ices available to specific ports or geographic regions; 
(3) the number and strength of independent carriers in var-
ious trades; and 
(4) the length of time, frequency, and cost of major types of 
regulatory proceedings before the Commission. 
(b) CONSULTATION WITH OTHER DEPARTMENTS AND AGENCIES.—The 
Commission shall consult with the Department of Transportation, 
the Department of Justice, and the Federal Trade Commission 
annually 
concerning 
data 
collection. 
The 
Department 
of 
Transportation, the Department of Justice, and the Federal Trade 
Commission shall at all times have access to the data collected 
under this section to enable them to provide comments concerning 
data collection. 
(c) AGENCY REPORTS.— 
(1) Within 6 months after expiration of the 5-year period 
specified in subsection (a), the Commission shall report the 
information, with an analysis of the impact of this Act, to 
Congress, to the Advisory Commission on Conferences in Ocean 
Shipping established in subsection (d), and to the Department of 
Transportation, the Department of Justice, and the Federal 
Trade Commission. 
(2) Within 60 days after the Commission submits its report, 
the Department of Transportation, the Department of Justice, 
and the Federal Trade Commission shall furnish an analysis of 
the impact of this Act to Congress and to the Advisory Commis-
sion on Conferences in Ocean Shipping. 
(3) The reports required by this subsection shall specifically 
address the following topics: 
(A) the advisability of adopting a system of tariffs based 
on volume and mass of shipment; 
(B) the need for antitrust immunity for ports and marine 
terminals; and 
(C) the continuing need for the statutory requirement 
that tariffs be filed with and enforced by the Commission. 
(d) ESTABLISHMENT AND COMPOSITION OF ADVISORY COMMISSION.— 
(1) Effective 5 V
2 years after the date of enactment of this Act, 
there is established the Advisory Commission on Conferences in 
Ocean Shipping (hereinafter referred to as the "Advisory 
Commission ). 
(2) The Advisory Commission shall be composed of 17 mem-
bers as follows: 
(A) a cabinet level official appointed by the President; 
46 u s e app. 
1717. 
Advisory 
Commission 
on Conferences 
in Ocean 
Shipping. 
98 STAT. 86 
PUBLIC LAW 98-237—MAR. 20, 1984 
(B) 4 members from the United States Senate appointed 
by the President pro tempore of the Senate, 2 from the 
membership of the Committee on Commerce, Science, and 
Transportation and 2 from the membership of the Commit-
tee on the Judiciary; 
(C) 4 members from the United States House of Repre-
sentatives appointed by the Speaker of the House, 2 from 
the membership of the Committee on Merchant Marine and 
Fisheries, and 2 from the membership of the Committee on 
the Judiciary; and 
(D) 8 members from the private sector appointed by the 
President. 
(3) The President shall designate the chairman of the Advi-
sory Commission. 
(4) The term of office for members shall be for the term of the 
Advisory Commission. 
(5) A vacancy in the Advisory Commission shall not affect its 
powers, and shall be filled in the same manner in which the 
original appointment was made. 
(6) Nine members of the Advisory Commission shall consti-
tute a quorum, but the Advisory Commission may permit as few 
as 2 members to hold hearings. 
(e) COMPENSATION OP MEMBERS OF THE ADVISORY COMMISSION.— 
(1) Officials of the United States Government and Members of 
Congress who are members of the Advisory Commission shall 
serve without compensation in addition to that received for 
their services as officials and Members, but they shall be reim-
bursed for reasonable travel, subsistence, and other necessary 
expenses incurred by them in the performance of the duties 
vested in the Advisory Commission. 
(2) Members of the Advisory Commission appointed from the 
private sector shall each receive compensation not exceeding 
the maximum per diem rate of pay for grade 18 of the General 
Schedule under section 5332 of title 5, United States Code, when 
engaged in the performance of the duties vested in the Advisory 
Commission, plus reimbursement for reasonable travel, subsist-
ence, and other necessary expenses incurred by them in the 
performance of those duties, notwithstanding the limitations in 
sections 5701 through 5733 of title 5, United States Code. 
(3) Members of the Advisory Commission appointed from the 
private sector are not subject to section 208 of title 18, United 
States Code. Before commencing service, these members shall 
file with the Advisory Commission a statement disclosing their 
financial interests and business and former relationships involv-
ing or relating to ocean transportation. These statements shall 
be available for public inspection at the Advisory Commission's 
offices. 
(f) ADVISORY COMMISSION FUNCTIONS.—The Advisory Commission 
shall conduct a comprehensive study of, and make recommendations 
concerning, conferences in ocean shipping. The study shall specifi-
cally address whether the Nation would be best served by prohibit-
ing conferences, or by closed or open conferences. 
(g) POWERS OF THE ADVISORY COMMISSION.— 
(1) The Advisory Commission may, for the purpose of carrying 
out its functions, hold such hearings and sit and act at such 
times and places, administer such oaths, and require, by 
subpena or otherwise, the attendance and testimony of such 
PUBLIC LAW 98-237—MAR. 20, 1984 
98 STAT. 87 
witnesses, and the production of such books, records, corre-
spondence, memorandums, papers, and documents as the Advi-
sory Commission may deem advisable. Subpenas may be issued 
Subpenas. 
to any person within the jurisdiction of the United States 
courts, under the signature of the chairman, or any duly desig-
nated member, and may be served by any person designated by 
the chairman, or that member. In case of contumacy by, or 
refusal to obey a subpena to, any person, the Advisory Commis-
sion may advise the Attorney General who shall invoke the aid 
of any court of the United States within the jurisdiction of 
which the Advisory Commission's proceedings are carried on, or 
where that person resides or carries on business, in requiring 
the attendance and testimony of witnesses and the production 
of books, papers, and documents; and the court may issue an 
order requiring that person to appear before the Advisory Com-
mission, there to produce records, if so ordered, or to give 
testimony. A failure to obey such an order of the court may be 
punished by the court £is a contempt thereof. All process in any 
such case may be served in the judicial district whereof the 
person is an inhabitant or may be found. 
(2) Each department, agency, and instrumentality of the 
executive branch of the Government, including independent 
agencies, shall furnish to the Advisory Commission, upon re-
quest made by the chairman, such information as the Advisory 
Commission deems necessary to carry out its functions. 
(3) Upon request of the chairman, the Department of Justice, 
the Department of Transportation, the Federal Maritime Com-
mission, and the Federal Trade Commission shall detail staff 
personnel as necessary to assist the Advisory Commission. 
(4) The chairman may rent office space for the Advisory 
Commission, may utilize the services and facilities of other 
Federal agencies with or without reimbursement, may accept 
voluntary services notwithstanding section 1342 of title 31, 
United States Code, may accept, hold, and administer gifts from 
96 Stat. 923. 
other Federal agencies, and may enter into contracts with any 
public or private person or entity for reports, research, or 
surveys in furtherance of the work of the Advisory Commission, 
(h) FINAL REPORT.—The Commission shall, within 1 year after its 
establishment, submit to the President and to the Congress a final 
report containing a statement of the findings and conclusions of the 
Advisory Commission resulting from the study undertaken under 
subsection (f), including recommendations for such administrative, 
judicial, and legislative action as it deems advisable. Each recom-
mendation made by the Advisory Commission to the President and 
to the Congress must have the majority vote of the Advisory Com-
mission present and voting. 
(i) EXPIRATION OF THE COMMISSION.—The Advisory Commission 
shall cease to exist 30 days after the submission of its final report. 
(j) AUTHORIZATION OF APPROPRIATION.—There is authorized to be 
appropriated $500,000 to carry out the activities of the Advisory 
Commission. 
SEC. 19. OCEAN FREIGHT FORWARDERS. 
46 USC app. 
1718 
(a) LICENSE.—No person 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— 
98 STAT. 88 
PUBLIC LAW 98-237—MAR. 20, 1984 
(1) the Commission determines to be qualified by experience 
and character to render forwarding services; and 
(2) furnishes a bond in a form and amount determined by the 
Commission to insure financial responsibility that is issued by a 
surety company found acceptable by the Secretary of the 
Treasury. 
(b) SUSPENSION OR REVOCATION.—The Commission shall, after 
notice and hearing, suspend of revoke a license if it finds that the 
ocean freight forwarder is not qualified to render forwarding serv-
ices or that it willfully failed to comply with a provision of this Act 
or with a lawful order, rule, or regulation of the Commission. The 
Commission may also revoke a forwarder's license for failure to 
maintain a bond in accordance with subsection (a)(2). 
(c) EXCEPTION.—A person whose primary business is the sale of 
merchandise may forward shipments of the merchandise for its own 
account without a license. 
(d) COMPENSATION OF FORWARDERS BY CARRIERS.— 
(1) A common carrier may compensate an ocean freight for-
warder in connection with a shipment dispatched on behalf of 
others only when the ocean freight forwarder has certified in 
writing that it holds a valid license and has performed the 
following services: 
(A) Engaged, booked, secured, reserved, or contracted 
directly with the carrier or its agent for space aboard a 
vessel or confirmed the availability of that space. 
(B) Prepared and processed the ocean bill of lading, dock 
receipt, or other similar document with respect to the 
shipment. 
(2) No common carrier may pay compensation for services 
described in paragraph (1) more than once on the same 
shipment. 
(3) No compensation may be paid to an ocean freight for-
warder except in accordance with the tariff requirements of this 
Act. 
(4) No ocean freight forwarder may receive compensation 
from a common carrier with respect to a shipment in which the 
forwarder has a direct or indirect beneficial interest nor shall a 
common carrier knowingly pay compensation on that shipment. 
SEC. 20. REPEALS AND CONFORMING AMENDMENTS. 
(a) REPEALS.—The laws specified in the following table are 
repealed: 
Shipping 
Act, 1916: 
Sec. 
13 
39 
Stat. 
732 
Sec. 
14a 
46 
App. 
U.S.C. 
813 
Sec. 
14b 
46 
App. 
U.S.C. 
813a 
Sec. 
18(b) 
46 
App. 
U.S.C. 
817(b) 
Sec. 
18(c) 
46 
App. 
U.S.C. 
817(c) 
Sec. 26 
46 
App. 
U.S.C. 
825 
Sec. 44 
46 
App. 
U.S.C. 
841b 
Merchant Marine Act, 1920: 
Sec. 20 
41 
Stat. 996 
Merchant Marine Act, 1936: 
Sec. 212(e) 
46 App. U.S.C. 1122(e) 
PUBLIC LAW 98-237—MAR. 20, 1984 
98 STAT. 89 
Sec. 214 
46 App. U.S.C. 1124, wherever that section 
applies to the Federal Maritime Commis-
sion (Commission), any member of the 
Commission or any member, officer or 
employee designated by the Commission. 
Omnibus Budget Reconciliation Act of 
1981: 
Sec. 1608 
95 Stat. 752 
(b) CONFORMING AMENDMENTS.—The Shipping Act, 1916 (46 App. 
U.S.C. 801 et seq.), is amended as follows: 
(1) in section 1 by striking the definitions "controlled carrier" 
and "independent ocean freight forwarder"; 
(2) in sections 14, 15, 16, 20, 21(a), 22, and 45 by striking 
"common carrier by water" wherever it appears in those sec-
tions and substituting "common carrier by water in interstate 
commerce"; 
(3) in section 14, first paragraph, by striking "or a port of a 
foreign country"; 
(4) in section 14, last paragraph, by striking all after the 
words "for each offense" and substituting a period; 
(5) in section 15, fourth paragraph, by striking "(including 
changes in special rates and charges covered by section 14b of 
this Act which do not involve a change in the spread between 
such rates and charges and the rates and charges applicable to 
noncontract shippers)" and also "with the publication and filing 
requirements of section 180t)) hereof and"; 
' 
(6) in section 15, sixth paragraph, by striking ", or permitted 
under section 14b," and in the seventh paragraph, by striking 
"or of section 14b"; 
(7) in section 16, in the paragraph designated "First", by 
striking all after "disadvantage in any respect" and substituting 
"whatsoever."; 
(8) in section 17 by striking the first paragraph, and in the 
second paragraph, by striking "such carrier and every"; 
(9) in section 210t)) by striking "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, for-
warder, broker, other carrier or other person subject to this 
Act," and substituting "The Commission may, to the extent it 
deems feasible, require any shipper, consignor, consignee, for-
warder, broker, or other person subject to this Act."; 
(10) in section 22 by striking subsection (c); 
(11) in section 25, at the end of the first sentence, by adding 
"under this Act"; 
(12) in section 29 by striking "any order of the board, the 
board," and substituting "any order of the Federal Maritime 
Commission under this Act, the Commission,"; 
(13) in sections 30 and 31, after the words "any order of the 
board", by adding "under this Act,"; 
(14) in section 32(a) by striking "and section 44"; and 
(15) in section 32(c), after the words "or functions,", by adding 
"under this Act,". 
46 u s e app. 801, 
801 notes. 
46 u s e app. 801. 
46 u s e app. 812, 
814, 815, 819, 
820, 821, 841c. 
46 u s e app. 816. 
46 u s e app. 824. 
46 u s e app. 828. 
46 u s e app. 829, 
830. 
46 u s e app. 831. 
98 STAT. 90 
PUBLIC LAW 98-237—MAR. 20, 1984 
(c) TECHNICAL AMENDMENTS.—Section 212 of the Merchant 
Marine Act, 1936 (46 App. U.S.C. 1122) is amended b y -
C
D striking after subsection (d) the following undesignated 
paragraph: 
"The Federal Maritime Commission is authorized and di-
rected—"; and 
(2) striking after subsection (e) the following undesignated 
paragraph: 
"The Secretary of Transportation is authorized and directed—". 
46 use app. 
(d) EFFECTS ON CERTAIN AGREEMENTS AND CONTRACTS.—All agree-
I'^l^- 
ments, 
contracts, 
modifications, 
and 
exemptions 
previously 
approved or licenses previously issued by the Commission shall 
continue in force and effect as if approved or issued under this Act; 
and all new agreements, contracts, and modifications to existing, 
pending, or new contracts or agreements shall be considered under 
this Act. 
46 use app. 
(e) SAVINGS PROVISIONS.— 
^^^^- 
(1) Each service contract entered into by a shipper and an 
ocean common carrier or conference before the date of enact-
ment of this Act may remain in full force and effect and need 
not comply with the requirements of section 8(c) of this Act 
until 15 months after the date of enactment of this Act. 
(2) This Act and the amendments made by it shall not affect 
any suit— 
(A) filed before the date of enactment of this Act; or 
(B) with respect to claims arising out of conduct engaged 
in before the date of enactment of this Act, filed within 1 
year after the date of enactment of this Act. 
46 use app. 1701 SEC. 21. EFFECTIVE DATE. 
This Act shall become effective 90 days after the date of its 
enactment, except that sections 17 and 18 shall become effective 
upon enactment. 
46 use app. 
SEC. 22. COMPLIANCE WITH BUDGET ACT. 
1720. 
Any new spending authority (within the meaning of section 401 of 
2 use 651. 
the Congressional Budget and Impoundment Control Act of 1974) 
PUBLIC LAW 98-237—MAR. 20, 1984 
98 STAT. 91 
which is provided under this Act shall be effective for any fiscal year 
only to the extent or in such amounts as provided in advance in 
appropriations Acts. Any provision of this Act that authorizes the 
enactment of new budget authority shall be effective only for fiscal 
years beginning after September 30, 1984. 
Approved March 20, 1984. 
LEGISLATIVE HISTORY—S. 47 (S. 504) (H.R. 1878): 
HOUSE REPORTS: No. 98-53, Pt. 1 (Comm. on Merchant Marine and Fisheries) and 
Pt. 2 (Comm. on the Judiciary) both accompanying H.R. 1878 and 
No. 98-600 (Comm. of Conference). 
SENATE REPORT No. 98-3 accompanying S. 504 (Comm. on Commerce, Science, and 
Transportation). 
CONGRESSIONAL RECORD: 
Vol. 129 (1983): Feb. 22-24, 28, Mar. 1, considered and passed Senate. 
Oct. 17, H.R. 1878 considered and passed House; S. 47, amended, 
passed in lieu. 
Vol. 130 (1984): Feb. 23, Senate agreed to conference report. 
Mar. 6, House agreed to conference report.