Anti-Rebate Certification Filing Requirements

FEDERAL MARITIME COMMISSION

46 CFR Parts 510, 514, and 582

Anti-Rebate Certification Filing Requirements

AGENCY: Federal Maritime Commission.

ACTION: Waiver of filing requirement.

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SUMMARY: The Commission is waiving the requirement for chief executive

officers of common carriers and other entities to file by December 31,

1998, a written certification that the firm has a policy against

rebating that was recently promulgated to each owner, officer and

employee of the firm, with details of the firm's efforts to prevent

illegal rebating and that the firm will cooperate with Commission

efforts to end illegal rebating. This action is being taken to

alleviate the filing burden on the public and the collection burden on

the Commission, in light of changes made by the Ocean Shipping Reform

Act of 1998 (``OSRA'') which removes the filing requirement on May 1,

1999, when OSRA becomes effective.

EFFECTIVE DATE: November 24, 1998.

FOR FURTHER INFORMATION CONTACT:

Bryant L. VanBrakle, Director, Bureau of Tariffs, Certification and

Licensing, Federal Maritime Commission, 800 North Capitol Street, N.W.,

Washington, D.C. 20573-0001, (202) 523-5796, E-mail: [email protected].

SUPPLEMENTARY INFORMATION: Section 15(b) of the Shipping Act of 1984,

46 U.S.C. 1714(b) (``1984 Act'') requires the chief executive officer

of each common carrier and other entities designated by the Federal

Maritime Commission to file with the Commission a periodic written

certification made under oath. The chief executive officer must

certify: that the firm has a policy prohibiting rebating; that the

policy was recently promulgated to each owner, officer and employee of

the firm; that it has provided details of the efforts made by the firm

to prevent illegal rebating; and that the firm will cooperate with the

Commission in its efforts to end these illegal practices.

The section 15(b) requirement is implemented by the Commission's

regulations at 46 CFR Part 582, 46 CFR 514.1(c)(1)(iii), 46 CFR

510.16(a)(6), and 46 CFR 510.25, which require the chief executive

officer of every common carrier and ocean freight forwarder to file an

Anti-Rebate Certification (``ARC'') as prescribed by the form in

Appendix A of Part 582. ARCs are required when a carrier files its

initial tariff and when a freight forwarder applicant submits its

initial application for a freight forwarder license. Thereafter, ARCs

are required to be filed by December 31 of each even-numbered calendar

year. Failure to file an ARC may result in the cancellation of a

carrier's tariffs, the striking of a carrier's name as a participant to

any conference rate tariffs in which it participates or suspension of a

freight forwarder's license and possibly the assessment of civil

penalties.

The 1984 Act, as amended by the Ocean Shipping Reform Act of 1998

(``OSRA''), removes the ARC requirements from section 15 effective May

1, 1999, four months after they are due from the approximately 5000

subject firms on December 31, 1998. The ARC program consumes a large

amount of the Commission's resources. In addition, it generally takes

several months to process receipts, follow-up on deficient filings and

to complete the tariff cancellation/freight forwarder license

suspension process. In short, it is unlikely that the 1999/2000 program

could be completed by May 1, 1999. Moreover, continuation of this

requirement would place a great strain on agency resources at a time

when they will be needed to work on program changes required by OSRA.

The Commission, therefore, has determined to waive this requirement for

the ARC filing due December 31, 1998.

This waiver is strictly for administrative convenience. The

Commission makes clear that the 1984 Act, both currently and as will be

amended by OSRA, prohibits the payment, receipt or solicitation of

illegal rebates. This waiver of certification requirements does not

modify, in any manner, the Commission's enforcement obligations or

efforts with respect to past or future rebate activity.

Now therefore, it is ordered that pursuant to 5 U.S.C. 553 and

sections 15 and 17 of the Shipping Act of 1984 (46 U.S.C. app 1714 and

1716), the requirements of 46 CFR Part 582, 46 CFR 514.1(c)(1)(iii), 46

CFR 510.16(a)(6), and 46 CFR 510.25 for the filing due December 31,

1998, are waived effective November 24, 1998.

Pursuant to 5 U.S.C. 553(b) and (d) we find that prior public

notice, opportunity for comment, and delayed effective date are neither

necessary nor practical inasmuch as this waiver merely relieves

restrictions otherwise applicable.

By the Commission.

Joseph C. Polking,

Secretary.

[FR Doc. 98-31341 Filed 11-23-98; 8:45 am]

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