Haewoo Air & Shipping Co., Ltd. (d/b/a Haewoo Shipping Co., Ltd.); Possible Violations of Section 10(b)(1) of the Shipping Act of 1984; Order of Investigation

FEDERAL MARITIME COMMISSION

[Docket No. 96-11]

Haewoo Air & Shipping Co., Ltd. (d/b/a Haewoo Shipping Co.,

Ltd.); Possible Violations of Section 10(b)(1) of the Shipping Act of

1984; Order of Investigation

Haewoo Air & Shipping Co., Ltd. d/b/a Haewoo Shipping Co., Ltd.

(``Haewoo'') is a non-vessel-operating common carrier located in Seoul,

Korea. Haewoo maintains a tariff on file with the Commission which

provides for service between various Asian countries and the United

States.

A review of Haewoo's tariff showed that it contained only one

commodity rate in addition to Cargo, N.O.S. rates. A review of invoices

and freight payments for shipments moving under Haewoo bills of lading

from June 5, 1994, to January 19, 1995, indicated that Haewoo did not

charge the rates contained in its tariff. On February 3, 1995,

additional commodity rates were filed by Haewoo in its tariff.

Section 10(b)(1) of the Shipping Act of 1984 (``1984 Act''), 46

U.S.C. app. 1709(b)(1), provides that no common carrier may charge,

demand, collect, or receive greater, less, or different compensation

for the transportation of property or for any service in connection

therewith than the rates and charges in its tariffs. In regard to the

activities of Haewoo, it appears that Haewoo charged less than its

applicable tariff rates for the transportation of at least 36 shipments

between June 5, 1994, and January 19, 1995, in violation of section

10(b)(1) of the 1984 Act.

Section 11 of the 1984 Act, 46 U.S.C. app. 1710, sets forth the

Commission's authority to investigate violations of the 1984 Act. In

the event violations are found, section 13 of the 1984 Act, 46 U.S.C.

app. 1712, provides that the Commission may assess civil penalties and

suspend tariffs as remedies for violations of section 10(b)(1). Section

14(a) of the 1984 Act, 46 U.S.C. app. 1713(a), empowers the Commission

to issue orders relating to violations of the 1984 Act.

Now therefore it is ordered, that pursuant to sections 10, 11, 13

and 14 of the 1984 Act, an investigation is hereby instituted to

determine:

1. Whether Haewoo violated section 10(b)(1) of the 1984 Act by

charging, demanding, collecting, or receiving greater, lesser, or

different compensation for the transportation of property or for any

service in connection therewith than the rates and charges that are

shown in its tariffs;

2. Whether, in the event Haewoo violated the 1984 Act, civil

penalties should be assessed against Haewoo and, if so, the amount of

such penalties;

3. Whether, in the event violations are found, an appropriate cease

and desist order should be issued; and

4. Whether, in the event violations are found, Haewoo's tariff

should be suspended for a period of time not to exceed 12 months.

It is further ordered, That a public hearing be held in this

proceeding and that this matter be assigned for hearing before an

Administrative Law Judge (``Presiding Officer'') of the Commission's

Office of Administrative Law Judges in compliance with Rule 61 of the

Commission's Rules of Practice and Procedure, 46 CFR 502.61. The

Hearing shall include oral testimony and cross-examination at the

discretion of the Presiding Officer only after consideration has been

given by the parties and the Presiding Officer to the use of

alternative forms of dispute

[[Page 25873]]

resolution, and upon proper showing that there are genuine issues of

material fact that cannot be resolved on the basis of sworn statements,

affidavits, depositions, or other documents or that the nature of the

matter in issue is such that an oral hearing and cross-examination are

necessary for the development of an adequate record.

It is further ordered, That Haewoo Air & Shipping Co., Ltd. d/b/a

Haewoo Shipping Co., Ltd. is designated Respondent in this proceeding;

It is further ordered, That the Commission's Bureau of Enforcement

is designated a party to this proceeding;

It is further ordered, That notice of this Order be published in

the Federal Register, and a copy be served on parties of record;

It is further ordered, That other persons having an interest in

participating in this proceeding may file petitions for leave to

intervene in accordance with Rule 72 of the Commission's Rules of

Practice and Procedure, 46 CFR 502.72;

It is further ordered, That all further notices, orders, and/or

decisions issued by or on behalf of the Commission in this proceeding,

including notice of the time and place of hearing or prehearing

conference, shall be served on parties of record;

It is further ordered, That all documents submitted by any party of

record in this proceeding shall be directed to the Secretary, Federal

Maritime Commission, Washington, D.C. 20573, and comply with Subpart H

of the Commission's Rules of Practice and Procedure, 46 CFR 502.111-

119, and shall be served on parties of record; and

It is further ordered, That in accordance with Rule 61 of the

Commission's Rules of Practice and Procedure, 46 CFR 502.61, the

initial decision of the Administrative Law Judge shall be issued by

January 20, 1997, and the final decision of the Commission shall be

issued by May 20, 1997.

By the Commission.

Joseph C. Polking,

Secretary.

[FR Doc. 96-13056 Filed 5-22-96; 8:45 am]

BILLING CODE 6730-01-M