FMC Asked to Expeditiously Adopt Conditional Tariff Publication and Enforcement Exemption for NVOCCs
On August 2, 2004, seven non-vessel operating common carrier (NVOCC) petitioners and national trade associations1 motioned for leave to submit joint supplemental comments to the Federal Maritime Commission (FMC) for each of eight pending petitions2, requesting expedited adoption of a conditional exemption for NVOCCs from the tariff publication and enforcement provisions that are set forth in the Shipping Act of 1984, as amended, and the corresponding regulations in 46 CFR Part 520.
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
Commenters Present Conditional Exemption Proposal
In their joint supplemental comments, the commenters propose a conditional exemption from tariff publication and enforcement for cargo moving under any written agreement between an NVOCC and one or more shippers, other than a bill of lading, receipt or similar transport document, under which the shipper(s) make a commitment to provide a certain volume or portion of cargo over a fixed time period, and the NVOCC commits to a certain rate and defined service level.
Furthermore, the exemption would be subject to certain conditions, such as: the agreement would have to be filed confidentially with the FMC, and would include certain essential terms (e.g., origin and destination port ranges, etc.)
The joint commenters note that their comments and this exemption proposal are intended to assist the FMC by providing clear direction and a widely supported, unified approach to be followed in its decision-making on the eight petitions.
Commenters Urge Expedited Action as Extensive Commentary Already Exists
The joint commenters hope that the FMC will act expeditiously to grant their narrowly-drawn conditional tariff exemption proposal, which would avoid any need to address the industry's concerns through legislation.
The commenters further state that they believe it is unnecessary for the FMC to institute a new proceeding with respect to their conditional tariff exemption proposal or to seek further input on the proposal, since extensive commentary on these same concepts already exists in the record.
(The joint commenters note that none of them intends or desires to withdraw its existing petition. Furthermore, the commenters state that any action by the FMC on the proposed tariff exemption should not preempt efforts to obtain exemptions from the tariff publication requirements as proposed by the NCBFAA or preempt other proposals to simply tariff publication, and that the FMC should continue to move forward with consideration of those proposals. In the meantime, however, the joint commenters urge immediate action by the FMC to approve their conditional tariff exemption.)
1 The joint commenters are the National Industrial Transportation League; the Transportation Intermediaries Association; United Parcel Service, Inc. (UPS); C.H. Robinson Worldwide, Inc. (CHRW); BAX Global Inc. (BAX); BDP International, Inc. (BDP); and FedEx Trade Networks Transport & Brokerage, Inc. (FedEx).
2 The eight pending petitions, for which comment periods have already closed, were filed on various dates from July 2003 through March 2004 by UPS; the National Customs Brokers and Forwarders Association of America, Inc. (NCBFAA); Ocean World Lines, Inc. (OWL); BAX; CHRW; Danzas Corporation dba Danmar Lines Ltd., Danzas AEI Ocean Services, and DHL Danzas Air and Ocean; BDP; and FedEx. (See BP Note for most recent related BP summaries.)
Joint supplemental comments (dated 08/02/04) available at http://www.nitl.org/NVOCCJointComments-Motion.pdf
Citations for Earlier BP Summaries on the Eight Pending Petitions:
See ITT's Online Archives or 03/25/04 news, 04032510, for BP summary of the Department of Transportation (DOT's) submission of comments to FMC on this matter.