Gerard Wardell, President of RateWave Tariff Services,
Inc., attended the FMC’s Open Meeting on February 16th. Below is a copy of the news release the FMC
distributed indicating that the Commission has decided to provide NVOCC’s an
optional Exemption from the Commission’s Tariff Rate Filing requirements. This Exemption is scheduled to become
effective in early April 2011. We are in
the process of thoroughly reviewing the Commission’s order implementing this
Exemption and we plan to have a detailed explanation of what each NVOCC must do
to avail themselves of this Exemption by the week of February 21, 2011.
FROM THE FEDERAL MARITIME COMMISSION
Economic and Regulatory Relief Approved for More than
3,300 Businesses
February 16, 2011
NR 11-01
Contact: Karen V. Gregory, Secretary
(202-523-5725)
The Federal Maritime Commission took several
steps today to reduce regulatory burdens and bring cost savings and flexibility
to the shipping industry and the customers they serve:
(1) Lifting rate-tariff publication requirements
for Non-Vessel-Operating Common Carriers: The Commission voted 3-1 today to issue a final rule
that will relieve more than 3,300 licensed Non-Vessel-Operating Common Carriers
(NVOCCs) from the costs and burdens of publishing in tariffs the rates they
charge for cargo shipments. The Shipping Act gives the Commission authority to
grant exemptions from its requirements if doing so will not result in
substantial reduction in competition or detriment to commerce. The final rule
will be issued by February 23, 2011, and NVOCCs who follow its conditions will
be relieved of rate publication requirements 45 days after the rule is
published in the Federal Register. According to comments filed with the
Commission, this action could save each of these businesses up to $200,000 per
year.
The final rule establishes an instrument
called a negotiated rate arrangement. Licensed NVOCCs who enter into negotiated
rate arrangements with their customers will be exempted from the requirement of
publishing their rates in tariffs if they meet conditions that include:
·
NVOCCs would continue to
publish rules tariffs containing terms and conditions governing shipments;
·
NVOCCs would be required to
provide those rules to the public free of charge;
·
Rates charged by NVOCCs
must be agreed to and memorialized in writing by the date cargo is received for
shipment; and
·
NVOCCs must retain
documentation of the agreed rate for a period of five years, and must make that
documentation available promptly to the Commission upon request.
Chairman Richard A. Lidinsky, Jr.,
Commissioner Rebecca F. Dye, and Commissioner Michael A. Khouri voted to issue
the final rule. Commissioner Joseph E. Brennan
dissented.
The final rule approved by the Commission
limited the exemption to U.S.-licensed NVOCCs, but Commissioners in the
majority said they would commence proceedings to receive public input on
potential future modifications, including the possibility of extending the
exemption to foreign, unlicensed NVOCCs.
"After a year of work and many years of
debate, the Commission has provided thousands of dollars per year in cost
savings to these critical U.S. supply chain businesses and the hundreds of
thousands of exporters and importers they serve," said FMC Chairman Richard A. Lidinsky, Jr.
"When we began this process last year, I supported it because it would
help the Obama Administration’s efforts to give small American businesses tools
to create American jobs, and to double exports in the coming years. The FMC is
making these unprecedented reforms to help our ongoing recovery."
Commissioner Dye stated: "I
strongly supported taking action today to extend regulatory relief to thousands
of licensed non-vessel-operating common carriers. The action will simplify the
business processes of American companies, put cash back into businesses, and
generate additional American jobs. I also strongly support responding to the
needs of the entire U.S. international supply chain by extending the exemption
to all lawful non-vessel-operating common carriers doing business in the United
States."
Commissioner Khouri stated:
"I am pleased that the Commission voted today to move forward with a final
rule to exempt licensed NVOCCs from the tariff publication requirement. This
important step, taken pursuant to our Section 16 authority, provides regulatory
relief that will save three quarters of all NVOCCs an unnecessary expense and
will directly benefit American exporters and importers. I look forward to
working with the Chairman and my fellow Commissioners to find alternatives,
such as appropriate exemption conditions, so the exemption can be promptly
extended to the remaining NVOCC community."
Commissioner Brennan stated in
dissent: "The Commission lacks the authority to rewrite the Shipping Act
by making tariff publication optional for licensed NVOCCs. Congress clearly
took up the tariff issue with the 1998 Ocean Shipping Reform Act and determined
to maintain tariff requirements for all common carriers. Three commissioners of
the Federal Maritime Commission should not, and cannot, trump the judgment made
by a previous Congress and President on this issue."
(2) Modernizing FMC Rules of Practice and
Procedure: The Commission voted
unanimously today to update its filing requirements and clarify its procedures
for informal proceedings for small claims. The changes reduce filing burdens on
the public, are eco-friendly, and enhance privacy protections for parties to
FMC proceedings. The rule change approved today is the first step in the
Commission’s ongoing project to make its procedural rules more clear, modern,
efficient, and environmentally friendly.
(3) Applying the President’s Executive Order on
Improving Regulation and Regulatory Review: The Commission today declared its intention to prepare
a plan to systematically review its existing rules to make them more effective
or less burdensome in achieving the agency’s regulatory objectives. This plan
will follow the guidance of President Obama’s January 18, 2011 Executive Order
13563, which instructs agencies to prepare a preliminary plan for the review
within 120 days. The Commission also declared its intent to give full
consideration to the additional provisions of the Executive Order during its rulemaking
processes. Although Executive Order 13563 does not apply to independent
agencies such as the FMC, the White House has encouraged independent agencies
to voluntarily follow its guidance.
The
Federal Maritime Commission (FMC) is the independent federal agency responsible
for regulating the nation’s international ocean transportation for the benefit
of exporters, importers, and the American consumer. The FMC’s mission is to
foster a fair, efficient, and reliable international ocean transportation system
while protecting the public from unfair and deceptive practices.