82_FR_25325 82 FR 25221 - Regulatory Reform Initiative

82 FR 25221 - Regulatory Reform Initiative

FEDERAL MARITIME COMMISSION

Federal Register Volume 82, Issue 104 (June 1, 2017)

Page Range25221-25223
FR Document2017-11321

The Federal Maritime Commission (FMC or Commission) is issuing this Inquiry to solicit information and comments in an effort to identify existing FMC regulations that are outdated, unnecessary, ineffective, eliminate jobs or inhibit job creation, impose costs that exceed benefits, or otherwise interfere with regulatory reform initiatives and policies. This action is taken in conjunction with Executive Order 13777, ``Enforcing the Regulatory Reform Agenda.''

Federal Register, Volume 82 Issue 104 (Thursday, June 1, 2017)
[Federal Register Volume 82, Number 104 (Thursday, June 1, 2017)]
[Proposed Rules]
[Pages 25221-25223]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-11321]


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FEDERAL MARITIME COMMISSION

46 CFR Parts 515, 520, 525, 530, 531, 532, 535, 540 and 565

[Docket No. 17-04]
RIN 3072-AC69


Regulatory Reform Initiative

AGENCY: Federal Maritime Commission.

ACTION: Notice of inquiry.

-----------------------------------------------------------------------

SUMMARY: The Federal Maritime Commission (FMC or Commission) is issuing 
this Inquiry to solicit information and comments in an effort to 
identify existing FMC regulations that are outdated, unnecessary, 
ineffective, eliminate jobs or inhibit job creation, impose costs that 
exceed benefits, or otherwise interfere with regulatory reform 
initiatives and policies. This action is taken in conjunction with 
Executive Order 13777, ``Enforcing the Regulatory Reform Agenda.''

DATES: Comments are due July 5, 2017.

ADDRESSES: You may submit comments by either of the following methods:
     Email: [email protected]. Include in the subject line: 
``Docket No. 17-04, Regulatory Reform Initiative.'' Comments should be 
attached to the email as a Microsoft Word or text-searchable PDF 
document. Only non-confidential comments and public versions of 
confidential comments should be submitted by email. Comments containing 
confidential information should not be submitted by email.
     Mail: Rachel E. Dickon, Assistant Secretary, Federal 
Maritime Commission, 800 North Capitol Street NW., Ste. 1046, 
Washington, DC 20573-0001.
    Docket: For access to the docket to read background documents and 
comments received, go to the Commission's Electronic Reading Room at: 
http://www.fmc.gov/17-04.
    Confidential Information: If your comments contain confidential 
information, you must submit the following:
     A transmittal letter requesting confidential treatment 
that identifies the specific information in the comments for which 
protection is sought and demonstrates that the information is a trade 
secret or other confidential research, development, or commercial 
information.
     A confidential copy of your comments, consisting of the 
complete filing with a cover page marked ``Confidential-Restricted,'' 
and the confidential material clearly marked on each page. You should 
submit the confidential copy to the Commission by mail.
     A public version of your comments with the confidential 
information excluded. The public version must state ``Public Version--
confidential materials excluded'' on the cover page and on each 
affected page, and must clearly indicate any information withheld. You 
may submit the public version to the Commission by email or mail.
The Commission will provide confidential treatment for the identified 
confidential information to the extent allowed by law.

FOR FURTHER INFORMATION CONTACT: For questions regarding submitting 
comments or the treatment of confidential information, contact Rachel 
E. Dickon, Assistant Secretary, Federal Maritime Commission, 800 North 
Capitol Street NW., Ste. 1046, Washington, DC 20573-0001. Phone: (202) 
523-5725. Email: [email protected]. For all other questions, contact 
Karen V. Gregory, Managing Director,

[[Page 25222]]

Federal Maritime Commission, 800 North Capitol Street NW., Room 1018, 
Washington, DC 20573-0001. Phone: (202) 523-5800. Email: [email protected].

SUPPLEMENTARY INFORMATION: On February 24, 2017, President Trump issued 
Executive Order 13777, Enforcing the Regulatory Reform Agenda (E.O. or 
E.O. 13777). 82 FR 12285 (March 1, 2017). This E.O. follows closely 
upon the President's previous E.O. concerning government regulations, 
E.O. 13771, Reducing Regulations and Controlling Regulatory Costs. 82 
FR 9339 (February 3, 2017). Among other issues, E.O. 13777 directs the 
head of most Federal agencies to designate an agency official as its 
Regulatory Reform Officer (RRO), who will ``oversee the implementation 
of regulatory reform initiatives and policies to ensure that agencies 
effectively carry out regulatory reforms.'' Independent regulatory 
agencies such as the Commission are not subject to E.O. 13777, however 
they are encouraged to comply. OMB Memorandum M-17-23, Guidance on 
Regulatory Reform Accountability under Executive Order 13777, titled 
``Enforcing the Regulatory Reform Agenda,'' issued April 28, 2017. On 
March 13, 2017, Acting Chairman Michael A. Khouri designated the 
agency's Managing Director, Karen V. Gregory, to serve as Regulatory 
Reform Officer.
    E.O. 13777 directs Federal agencies subject to the E.O. to 
establish a Regulatory Reform Task Force (Task Force), consisting of 
the Agency RRO and other designated agency officials, which will 
evaluate existing regulations and make recommendations to the agency 
head concerning their repeal, replacement, or modification. The FMC's 
Task Force is charged with evaluating existing regulations to ``make 
recommendations to the agency head regarding their repeal, replacement, 
or modification.'' Further, the E.O. directs each Task Force to attempt 
to identify regulations that:
     Eliminate jobs, or inhibit job creation;
     are outdated, unnecessary, or ineffective;
     impose costs that exceed benefits; or
     create a serious inconsistency or otherwise interfere with 
regulatory reform initiatives and policies.
Within 90 days of the E.O., the Task Force is directed to provide a 
report to the agency head detailing the agency's progress towards the 
goals of implementing regulatory reform and identifying regulations for 
repeal, replacement, or modification.
    The designation of a Regulatory Reform Officer and establishment of 
a Regulatory Reform Task Force is consistent with the intent of E.O. 
13777 and E.O. 13771, the deregulatory spirit of the Shipping Act as 
amended by the Ocean Shipping Reform Act of 1998, and agency regulatory 
review initiatives ongoing since November 4, 2011. Building on 
Executive Orders of both the prior and current Administrations, the 
Commission is in the process of identifying those regulations that are 
the most ineffective, would be the easiest to repeal, and would lend 
themselves to a definitive timeline within the agency to move those 
items to a vote before the Commission.

Commission Action

    The Commission invites comment and information from all members of 
the interested public, including ocean common carriers, marine terminal 
operators, ocean transportation intermediaries (OTIs), tariff 
publishers, surety companies, exporters, importers, and beneficial 
cargo owners, on ways to make the Commission's regulations less 
burdensome and more effective in achieving the objectives of the 
Shipping Act. The Commission specifically requests comments and current 
information or data on any (or all) of the following areas of FMC 
programs and regulations:

46 CFR Part 515 Licensing, Financial Responsibility Requirements and 
General Duties for Ocean Transportation Intermediaries

    Under this program, the Commission reviews all applications for OTI 
Non-Vessel Operating Common Carrier (NVOCC) and OTI Ocean Freight 
Forwarder licenses and, after investigation, may issue a license to 
qualified applicants. After approval, OTI licenses are issued to 
applicants upon receipt of acceptable proof of financial 
responsibility, usually in the form of a surety bond. When appropriate, 
the Office recommends denial.
    The Commission also manages the Regulated Persons Index as to 
parties licensed or registered with the Commission, receives and 
processes all OTI bonds and bond riders, registers foreign-based 
unlicensed NVOCCs, and provides for renewal of OTI licenses and 
registrations every three years.
    Interested parties may wish to review the record and Final Rule in 
FMC Docket No. 13-05, Amendments to Regulations Governing Ocean 
Transportation Intermediary Licensing and Financial Responsibility 
Requirements, and General Duties, (Final Rule published at 80 FR 68721 
(Nov. 5, 2015), as corrected at 81 FR 4592 (Jan. 27, 2016); rulemaking 
record available at www.fmc.gov/13-05/).

46 CFR Part 520 Carrier Automated Tariffs

    Under this program, the Commission reviews carrier-published tariff 
systems under the accessibility and accuracy standards of the Shipping 
Act of 1984, reviews published tariff material for compliance with the 
Shipping Act's requirements, and responds to inquiries or issues that 
arise concerning tariff rates, rules and practices. The Commission also 
acts upon applications for special permission to deviate from tariff 
publishing rules and regulations and recommends Commission action on 
specific problems and concerns regarding the publication of tariffs.
    The Commission publishes the location of all VOCC and NVOCC tariffs 
online.

46 CFR Part 525 Marine Terminal Operator Schedules

    The Commission's program under 46 CFR part 525 provides that a 
Marine Terminal Operator (MTO) may make available a schedule of its 
rates, regulations, and practices to the public at its discretion. A 
complete and current set of schedules of rates, regulations, and 
practices must be maintained for five years, and made available to the 
Commission upon request.
    MTOs who currently publish a schedule are identified through Form 
FMC-1 and the RPI. The Commission separately publishes the location of 
those terminal schedules available to the public.

46 CFR Part 530 Service Contracts

    The Shipping Act allows ocean common carriers, either individually 
or through agreements, to negotiate and execute service contracts with 
one or more shippers or shippers' associations. Under service 
contracts, shippers make a commitment to provide a certain volume or 
portion of cargo over a fixed period of time and carriers commit to a 
specified rate and a defined service level. These contracts are filed 
confidentially with the Commission, and are maintained in the 
Commission's SERVCON system. A concise statement of certain contract 
essential terms, i.e., commodity or commodities involved, minimum 
volume or portion, duration, and origin and destination port ranges, is 
required to be published in the carrier's tariffs.
    The Commission monitors service contract filings for acts 
prohibited by the Shipping Act of 1984. Original

[[Page 25223]]

signed service contracts, amendments, and associated records must be 
maintained for five years from the termination of the contract and be 
made available to the Commission for audit upon request. An FMC-
developed Web Service allows VOCCs to incorporate the filing of service 
contracts into their own contract management systems.
    Interested parties may wish to review the record and Final Rule in 
FMC Docket No. 16-05, Amendments to Regulations Governing Service 
Contracts and NVOCC Service Arrangements (Final Rule published at 82 FR 
16288 (Apr. 4, 2017); rulemaking record available at http://www.fmc.gov/16-05/).

46 CFR Part 531 NVOCC Service Arrangements

    NVOCCs that are in compliance with the Commission's licensing and 
financial responsibility requirements (46 CFR part 515) may enter into 
an NVOCC Service Arrangement (NSA) with one or more NSA Shippers. An 
NSA is the NVOCC functional equivalent to a service contract. NSAs are 
filed confidentially with the Commission, and maintained in the FMC's 
SERVCON system.
    Interested parties may wish to review the record and Final Rule in 
FMC Docket No. 16-05, Amendments to Regulations Governing Service 
Contracts and NVOCC Service Arrangements (Final Rule published at 82 FR 
16288 (Apr. 4, 2017); rulemaking record available at http://www.fmc.gov/16-05/).

46 CFR Part 532 NVOCC Negotiated Rate Arrangements

    NVOCCs may enter into an NVOCC Negotiated Rate Arrangement (NRA), 
which are exempt from certain tariff rate publication requirements. 
NRAs are written arrangements between a shipper and a licensed or 
registered NVOCC to provide specific transportation service for a 
stated cargo quantity, from origin to destination, on and after a 
stated date or within a defined time frame. If an NVOCC uses NRAs, it 
need not publish that rate in the tariff it makes available to the 
public. Unlike service contracts and NSAs, NRAs are not filed with the 
Commission, but are maintained in private electronic systems.

46 CFR Part 535 Ocean Common Carrier and Marine Terminal Operator 
Agreements Subject to the Shipping Act of 1984

    The Commission reviews agreements involving ocean common carriers 
and marine terminal operators under the standards of the Shipping Act 
of 1984. More specifically, the Commission has responsibility for 
competition review and market analysis, focusing on activity that is 
substantially anticompetitive under the standards of section 6(g) of 
the Shipping Act of 1984. In this regard, the Commission administers a 
variety of monitoring programs and other research efforts, designed to 
track relevant competitive and economic activity in major U.S. trade 
lanes and apprise the Commission of emerging commercial trends and 
carrier pricing and service activities.
    The Commission's agreement program activities consist of processing 
carrier and marine terminal operator agreement filings; making 
appropriate recommendations on the disposition of filed agreements, 
administering Monitoring Report filing requirements, and reviewing 
agreement meeting minutes and reports; and maintaining an agreement 
database that contains pertinent information on each ocean common 
carrier and marine terminal operator agreement filed with the 
Commission.
    A rulemaking proceeding is currently pending as to agreement filing 
requirements and processing. See FMC Docket No. 16-04, Ocean Common 
Carrier and Marine Terminal Operator Agreements Subject to the Shipping 
Act of 1984, (Notice of Proposed Rulemaking published at 81 FR 53986 
(Aug. 15, 2016); rulemaking record available at www.fmc.gov/16-04/). 
Parties are encouraged to review that rulemaking proceeding before 
filing comments to this Notice of Inquiry.

46 CFR Part 540 Passenger Vessel Financial Responsibility

    Under this program, the Commission issues certificates to operators 
of passenger vessels (PVOs) with berths for 50 or more passengers and 
that embark passengers from U.S. ports. The Certificate (Performance) 
evidences that the PVO has on file with the Commission acceptable 
coverage to satisfy any liability incurred for nonperformance of 
transportation, such as when a PVO declares bankruptcy and fails to 
complete the cruises booked. The coverage is used to reimburse 
passengers when the PVO fails to perform cruises as contracted and has 
taken no further actions to refund passengers. The Certificate 
(Casualty) evidences that the PVO has acceptable coverage on file with 
the Commission to satisfy any liability incurred for death or injury 
during a cruise.
    For additional information, please see the record and Final Rule in 
FMC Docket No. 11-16, Passenger Vessel Operator Financial 
Responsibility Requirements for Nonperformance of Transportation, 
(Final Rule published at 78 FR 13268 (Feb. 27, 2013); rulemaking record 
available at www.fmc.gov/11-16/).

46 CFR Part 565 Controlled Carriers

    The Commission maintains a program of reviewing the reasonableness 
of the rates of carriers operating in the U.S.-foreign trades that are 
owned or controlled by foreign governments. Special regulatory 
oversight is exercised by the Commission to ensure that controlled 
carriers, whose marketplace decision-making can be influenced by 
foreign governmental priorities or by their access to non-market 
sources of capital, do not engage in unreasonable below-market pricing 
practices which could disrupt trade or harm privately-owned shipping 
companies.
    The Commission periodically publishes an updated list of controlled 
carriers. [Please see http://www.fmc.gov/about/controlled_carrier_list.aspx]
    With respect to any Part of the Commission's regulations set forth 
above, any individual regulation thereunder, or any section or 
subsection of such regulations, interested parties are asked to submit 
written comments that: (1) Identify the particular FMC regulation or 
program believed burdensome or ineffective; (2) provide details as to 
how the FMC program imposes unnecessary costs or burdens upon your 
business; and (3) indicate the manner by which the program or 
particular requirement should best be repealed, replaced, or modified. 
The FMC requests that comments be as specific as possible and include 
any supporting data or other helpful information in order to assist the 
Commission with its review.

    By the Commission.
Rachel E. Dickon,
Assistant Secretary.
[FR Doc. 2017-11321 Filed 5-31-17; 8:45 am]
 BILLING CODE 6731-AA-P



                                                                             Federal Register / Vol. 82, No. 104 / Thursday, June 1, 2017 / Proposed Rules                                          25221

                                                    IV. Incorporation by Reference                          application of those requirements would               ADDRESSES:   You may submit comments
                                                      In this rule, the EPA is proposing to                 be inconsistent with the Clean Air Act;               by either of the following methods:
                                                    include in a final EPA rule regulatory                  and                                                      • Email: secretary@fmc.gov. Include
                                                    text that includes incorporation by                        • Does not provide the EPA with the                in the subject line: ‘‘Docket No. 17–04,
                                                    reference. In accordance with                           discretionary authority to address, as                Regulatory Reform Initiative.’’
                                                    requirements of 1 CFR 51.5, the EPA is                  appropriate, disproportionate human                   Comments should be attached to the
                                                    proposing to incorporate by reference                   health or environmental effects, using                email as a Microsoft Word or text-
                                                    the ADEQ rule listed in Table 1 of this                 practicable and legally permissible                   searchable PDF document. Only non-
                                                    preamble. The EPA has made, and will                    methods, under Executive Order 12898                  confidential comments and public
                                                    continue to make, these materials                       (59 FR 7629, February 16, 1994).                      versions of confidential comments
                                                    available through www.regulations.gov                   In addition, the SIP is not approved to               should be submitted by email.
                                                    and at the EPA Region IX Office (please                 apply on any Indian reservation land or               Comments containing confidential
                                                    contact the person identified in the FOR                in any other area where the EPA or an                 information should not be submitted by
                                                    FURTHER INFORMATION CONTACT section of                  Indian tribe has demonstrated that a                  email.
                                                    this preamble for more information).                    tribe has jurisdiction. In those areas of                • Mail: Rachel E. Dickon, Assistant
                                                                                                            Indian country, the rule does not have                Secretary, Federal Maritime
                                                    V. Statutory and Executive Order                        tribal implications and will not impose               Commission, 800 North Capitol Street
                                                    Reviews                                                 substantial direct costs on tribal                    NW., Ste. 1046, Washington, DC 20573–
                                                       Under the CAA, the EPA                               governments or preempt tribal law as                  0001.
                                                    Administrator is required to approve a                  specified by Executive Order 13175 (65                   Docket: For access to the docket to
                                                    SIP submission that complies with the                   FR 67249, November 9, 2000).                          read background documents and
                                                    provisions of the Act and applicable                                                                          comments received, go to the
                                                                                                            List of Subjects in 40 CFR Part 52                    Commission’s Electronic Reading Room
                                                    Federal regulations. 42 U.S.C. 7410(k);
                                                    40 CFR 52.02(a). Thus, in reviewing SIP                   Environmental protection,                           at: http://www.fmc.gov/17-04.
                                                    submissions, the EPA’s role is to                       Administrative practice and procedure,                   Confidential Information: If your
                                                    approve state choices, provided that                    Air pollution control, Carbon monoxide,               comments contain confidential
                                                    they meet the criteria of the Act.                      Incorporation by reference,                           information, you must submit the
                                                    Accordingly, this action merely                         Intergovernmental relations, Lead,                    following:
                                                    approves state law as meeting Federal                   Nitrogen dioxide, Ozone, Particulate                     • A transmittal letter requesting
                                                    requirements and does not impose                        matter, Reporting and recordkeeping                   confidential treatment that identifies the
                                                    additional requirements beyond those                    requirements, Sulfur dioxide, Volatile                specific information in the comments
                                                    imposed by state law. For that reason,                  organic compounds.                                    for which protection is sought and
                                                    this action:                                              Authority: 42 U.S.C. 7401 et seq.
                                                                                                                                                                  demonstrates that the information is a
                                                       • Is not a significant regulatory action                                                                   trade secret or other confidential
                                                                                                              Dated: May 16, 2017.                                research, development, or commercial
                                                    subject to review by the Office of
                                                                                                            Alexis Strauss,                                       information.
                                                    Management and Budget under
                                                    Executive Orders 12866 (58 FR 51735,                    Acting Regional Administrator, Region IX.                • A confidential copy of your
                                                    October 4, 1993) and 13563 (76 FR 3821,                 [FR Doc. 2017–10946 Filed 5–31–17; 8:45 am]           comments, consisting of the complete
                                                    January 21, 2011);                                      BILLING CODE 6560–50–P                                filing with a cover page marked
                                                       • Does not impose an information                                                                           ‘‘Confidential-Restricted,’’ and the
                                                    collection burden under the provisions                                                                        confidential material clearly marked on
                                                    of the Paperwork Reduction Act (44                                                                            each page. You should submit the
                                                                                                            FEDERAL MARITIME COMMISSION
                                                    U.S.C. 3501 et seq.);                                                                                         confidential copy to the Commission by
                                                       • Is certified as not having a                       46 CFR Parts 515, 520, 525, 530, 531,                 mail.
                                                    significant economic impact on a                        532, 535, 540 and 565                                    • A public version of your comments
                                                    substantial number of small entities                                                                          with the confidential information
                                                    under the Regulatory Flexibility Act (5                 [Docket No. 17–04]                                    excluded. The public version must state
                                                    U.S.C. 601 et seq.);                                                                                          ‘‘Public Version—confidential materials
                                                                                                            RIN 3072–AC69                                         excluded’’ on the cover page and on
                                                       • Does not contain any unfunded
                                                    mandate or significantly or uniquely                                                                          each affected page, and must clearly
                                                                                                            Regulatory Reform Initiative
                                                    affect small governments, as described                                                                        indicate any information withheld. You
                                                    in the Unfunded Mandates Reform Act                     AGENCY:   Federal Maritime Commission.                may submit the public version to the
                                                    of 1995 (Pub. L. 104–4);                                ACTION:   Notice of inquiry.                          Commission by email or mail.
                                                       • Does not have Federalism                                                                                 The Commission will provide
                                                    implications as specified in Executive                  SUMMARY:   The Federal Maritime                       confidential treatment for the identified
                                                    Order 13132 (64 FR 43255, August 10,                    Commission (FMC or Commission) is                     confidential information to the extent
                                                    1999);                                                  issuing this Inquiry to solicit                       allowed by law.
                                                       • Is not an economically significant                 information and comments in an effort                 FOR FURTHER INFORMATION CONTACT: For
                                                    regulatory action based on health or                    to identify existing FMC regulations that             questions regarding submitting
                                                    safety risks subject to Executive Order                 are outdated, unnecessary, ineffective,               comments or the treatment of
jstallworth on DSK7TPTVN1PROD with PROPOSALS




                                                    13045 (62 FR 19885, April 23, 1997);                    eliminate jobs or inhibit job creation,               confidential information, contact Rachel
                                                       • Is not a significant regulatory action             impose costs that exceed benefits, or                 E. Dickon, Assistant Secretary, Federal
                                                    subject to Executive Order 13211 (66 FR                 otherwise interfere with regulatory                   Maritime Commission, 800 North
                                                    28355, May 22, 2001);                                   reform initiatives and policies. This                 Capitol Street NW., Ste. 1046,
                                                       • Is not subject to requirements of                  action is taken in conjunction with                   Washington, DC 20573–0001. Phone:
                                                    section 12(d) of the National                           Executive Order 13777, ‘‘Enforcing the                (202) 523–5725. Email: secretary@
                                                    Technology Transfer and Advancement                     Regulatory Reform Agenda.’’                           fmc.gov. For all other questions, contact
                                                    Act of 1995 (15 U.S.C. 272 note) because                DATES: Comments are due July 5, 2017.                 Karen V. Gregory, Managing Director,


                                               VerDate Sep<11>2014   15:36 May 31, 2017   Jkt 241001   PO 00000   Frm 00015   Fmt 4702   Sfmt 4702   E:\FR\FM\01JNP1.SGM   01JNP1


                                                    25222                    Federal Register / Vol. 82, No. 104 / Thursday, June 1, 2017 / Proposed Rules

                                                    Federal Maritime Commission, 800                          The designation of a Regulatory                     (Final Rule published at 80 FR 68721
                                                    North Capitol Street NW., Room 1018,                    Reform Officer and establishment of a                 (Nov. 5, 2015), as corrected at 81 FR
                                                    Washington, DC 20573–0001. Phone:                       Regulatory Reform Task Force is                       4592 (Jan. 27, 2016); rulemaking record
                                                    (202) 523–5800. Email: omd@fmc.gov.                     consistent with the intent of E.O. 13777              available at www.fmc.gov/13-05/).
                                                    SUPPLEMENTARY INFORMATION: On                           and E.O. 13771, the deregulatory spirit
                                                                                                                                                                  46 CFR Part 520 Carrier Automated
                                                    February 24, 2017, President Trump                      of the Shipping Act as amended by the
                                                                                                                                                                  Tariffs
                                                    issued Executive Order 13777,                           Ocean Shipping Reform Act of 1998,
                                                    Enforcing the Regulatory Reform                         and agency regulatory review initiatives                Under this program, the Commission
                                                    Agenda (E.O. or E.O. 13777). 82 FR                      ongoing since November 4, 2011.                       reviews carrier-published tariff systems
                                                    12285 (March 1, 2017). This E.O.                        Building on Executive Orders of both                  under the accessibility and accuracy
                                                    follows closely upon the President’s                    the prior and current Administrations,                standards of the Shipping Act of 1984,
                                                    previous E.O. concerning government                     the Commission is in the process of                   reviews published tariff material for
                                                    regulations, E.O. 13771, Reducing                       identifying those regulations that are the            compliance with the Shipping Act’s
                                                    Regulations and Controlling Regulatory                  most ineffective, would be the easiest to             requirements, and responds to inquiries
                                                    Costs. 82 FR 9339 (February 3, 2017).                   repeal, and would lend themselves to a                or issues that arise concerning tariff
                                                    Among other issues, E.O. 13777 directs                  definitive timeline within the agency to              rates, rules and practices. The
                                                    the head of most Federal agencies to                    move those items to a vote before the                 Commission also acts upon applications
                                                    designate an agency official as its                     Commission.                                           for special permission to deviate from
                                                    Regulatory Reform Officer (RRO), who                                                                          tariff publishing rules and regulations
                                                                                                            Commission Action
                                                    will ‘‘oversee the implementation of                                                                          and recommends Commission action on
                                                    regulatory reform initiatives and                         The Commission invites comment                      specific problems and concerns
                                                    policies to ensure that agencies                        and information from all members of the               regarding the publication of tariffs.
                                                    effectively carry out regulatory                        interested public, including ocean                      The Commission publishes the
                                                    reforms.’’ Independent regulatory                       common carriers, marine terminal                      location of all VOCC and NVOCC tariffs
                                                    agencies such as the Commission are                     operators, ocean transportation                       online.
                                                    not subject to E.O. 13777, however they                 intermediaries (OTIs), tariff publishers,
                                                                                                            surety companies, exporters, importers,               46 CFR Part 525 Marine Terminal
                                                    are encouraged to comply. OMB                                                                                 Operator Schedules
                                                    Memorandum M–17–23, Guidance on                         and beneficial cargo owners, on ways to
                                                    Regulatory Reform Accountability under                  make the Commission’s regulations less                   The Commission’s program under 46
                                                    Executive Order 13777, titled                           burdensome and more effective in                      CFR part 525 provides that a Marine
                                                    ‘‘Enforcing the Regulatory Reform                       achieving the objectives of the Shipping              Terminal Operator (MTO) may make
                                                    Agenda,’’ issued April 28, 2017. On                     Act. The Commission specifically                      available a schedule of its rates,
                                                    March 13, 2017, Acting Chairman                         requests comments and current                         regulations, and practices to the public
                                                    Michael A. Khouri designated the                        information or data on any (or all) of the            at its discretion. A complete and current
                                                    agency’s Managing Director, Karen V.                    following areas of FMC programs and                   set of schedules of rates, regulations,
                                                    Gregory, to serve as Regulatory Reform                  regulations:                                          and practices must be maintained for
                                                    Officer.                                                                                                      five years, and made available to the
                                                                                                            46 CFR Part 515 Licensing, Financial
                                                       E.O. 13777 directs Federal agencies                                                                        Commission upon request.
                                                                                                            Responsibility Requirements and                          MTOs who currently publish a
                                                    subject to the E.O. to establish a                      General Duties for Ocean
                                                    Regulatory Reform Task Force (Task                                                                            schedule are identified through Form
                                                                                                            Transportation Intermediaries                         FMC–1 and the RPI. The Commission
                                                    Force), consisting of the Agency RRO
                                                    and other designated agency officials,                     Under this program, the Commission                 separately publishes the location of
                                                    which will evaluate existing regulations                reviews all applications for OTI Non-                 those terminal schedules available to
                                                    and make recommendations to the                         Vessel Operating Common Carrier                       the public.
                                                    agency head concerning their repeal,                    (NVOCC) and OTI Ocean Freight
                                                                                                            Forwarder licenses and, after                         46 CFR Part 530 Service Contracts
                                                    replacement, or modification. The
                                                    FMC’s Task Force is charged with                        investigation, may issue a license to                    The Shipping Act allows ocean
                                                    evaluating existing regulations to ‘‘make               qualified applicants. After approval,                 common carriers, either individually or
                                                    recommendations to the agency head                      OTI licenses are issued to applicants                 through agreements, to negotiate and
                                                    regarding their repeal, replacement, or                 upon receipt of acceptable proof of                   execute service contracts with one or
                                                    modification.’’ Further, the E.O. directs               financial responsibility, usually in the              more shippers or shippers’ associations.
                                                    each Task Force to attempt to identify                  form of a surety bond. When                           Under service contracts, shippers make
                                                    regulations that:                                       appropriate, the Office recommends                    a commitment to provide a certain
                                                       • Eliminate jobs, or inhibit job                     denial.                                               volume or portion of cargo over a fixed
                                                    creation;                                                  The Commission also manages the                    period of time and carriers commit to a
                                                       • are outdated, unnecessary, or                      Regulated Persons Index as to parties                 specified rate and a defined service
                                                    ineffective;                                            licensed or registered with the                       level. These contracts are filed
                                                       • impose costs that exceed benefits;                 Commission, receives and processes all                confidentially with the Commission,
                                                    or                                                      OTI bonds and bond riders, registers                  and are maintained in the Commission’s
                                                       • create a serious inconsistency or                  foreign-based unlicensed NVOCCs, and                  SERVCON system. A concise statement
                                                    otherwise interfere with regulatory                     provides for renewal of OTI licenses and              of certain contract essential terms, i.e.,
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                                                    reform initiatives and policies.                        registrations every three years.                      commodity or commodities involved,
                                                    Within 90 days of the E.O., the Task                       Interested parties may wish to review              minimum volume or portion, duration,
                                                    Force is directed to provide a report to                the record and Final Rule in FMC                      and origin and destination port ranges,
                                                    the agency head detailing the agency’s                  Docket No. 13–05, Amendments to                       is required to be published in the
                                                    progress towards the goals of                           Regulations Governing Ocean                           carrier’s tariffs.
                                                    implementing regulatory reform and                      Transportation Intermediary Licensing                    The Commission monitors service
                                                    identifying regulations for repeal,                     and Financial Responsibility                          contract filings for acts prohibited by
                                                    replacement, or modification.                           Requirements, and General Duties,                     the Shipping Act of 1984. Original


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                                                                             Federal Register / Vol. 82, No. 104 / Thursday, June 1, 2017 / Proposed Rules                                                25223

                                                    signed service contracts, amendments,                   46 CFR Part 535 Ocean Common                          passengers when the PVO fails to
                                                    and associated records must be                          Carrier and Marine Terminal Operator                  perform cruises as contracted and has
                                                    maintained for five years from the                      Agreements Subject to the Shipping Act                taken no further actions to refund
                                                    termination of the contract and be made                 of 1984                                               passengers. The Certificate (Casualty)
                                                    available to the Commission for audit                      The Commission reviews agreements                  evidences that the PVO has acceptable
                                                    upon request. An FMC-developed Web                      involving ocean common carriers and                   coverage on file with the Commission to
                                                    Service allows VOCCs to incorporate the                 marine terminal operators under the                   satisfy any liability incurred for death or
                                                    filing of service contracts into their own              standards of the Shipping Act of 1984.                injury during a cruise.
                                                    contract management systems.                            More specifically, the Commission has                   For additional information, please see
                                                       Interested parties may wish to review                responsibility for competition review                 the record and Final Rule in FMC
                                                    the record and Final Rule in FMC                        and market analysis, focusing on                      Docket No. 11–16, Passenger Vessel
                                                                                                            activity that is substantially                        Operator Financial Responsibility
                                                    Docket No. 16–05, Amendments to
                                                                                                            anticompetitive under the standards of                Requirements for Nonperformance of
                                                    Regulations Governing Service
                                                                                                            section 6(g) of the Shipping Act of 1984.             Transportation, (Final Rule published at
                                                    Contracts and NVOCC Service                             In this regard, the Commission                        78 FR 13268 (Feb. 27, 2013); rulemaking
                                                    Arrangements (Final Rule published at                   administers a variety of monitoring                   record available at www.fmc.gov/
                                                    82 FR 16288 (Apr. 4, 2017); rulemaking                  programs and other research efforts,                  11-16/).
                                                    record available at http://www.fmc.gov/                 designed to track relevant competitive
                                                    16-05/).                                                and economic activity in major U.S.                   46 CFR Part 565       Controlled Carriers

                                                    46 CFR Part 531        NVOCC Service                    trade lanes and apprise the Commission                  The Commission maintains a program
                                                    Arrangements                                            of emerging commercial trends and                     of reviewing the reasonableness of the
                                                                                                            carrier pricing and service activities.               rates of carriers operating in the U.S.-
                                                       NVOCCs that are in compliance with                      The Commission’s agreement program                 foreign trades that are owned or
                                                    the Commission’s licensing and                          activities consist of processing carrier              controlled by foreign governments.
                                                    financial responsibility requirements                   and marine terminal operator agreement                Special regulatory oversight is exercised
                                                    (46 CFR part 515) may enter into an                     filings; making appropriate                           by the Commission to ensure that
                                                    NVOCC Service Arrangement (NSA)                         recommendations on the disposition of                 controlled carriers, whose marketplace
                                                                                                            filed agreements, administering                       decision-making can be influenced by
                                                    with one or more NSA Shippers. An
                                                                                                            Monitoring Report filing requirements,                foreign governmental priorities or by
                                                    NSA is the NVOCC functional                             and reviewing agreement meeting
                                                    equivalent to a service contract. NSAs                                                                        their access to non-market sources of
                                                                                                            minutes and reports; and maintaining                  capital, do not engage in unreasonable
                                                    are filed confidentially with the                       an agreement database that contains
                                                    Commission, and maintained in the                                                                             below-market pricing practices which
                                                                                                            pertinent information on each ocean                   could disrupt trade or harm privately-
                                                    FMC’s SERVCON system.                                   common carrier and marine terminal                    owned shipping companies.
                                                       Interested parties may wish to review                operator agreement filed with the
                                                                                                            Commission.                                             The Commission periodically
                                                    the record and Final Rule in FMC
                                                                                                               A rulemaking proceeding is currently               publishes an updated list of controlled
                                                    Docket No. 16–05, Amendments to
                                                                                                            pending as to agreement filing                        carriers. [Please see http://www.fmc.gov/
                                                    Regulations Governing Service                                                                                 about/controlled_carrier_list.aspx]
                                                    Contracts and NVOCC Service                             requirements and processing. See FMC
                                                                                                            Docket No. 16–04, Ocean Common                          With respect to any Part of the
                                                    Arrangements (Final Rule published at
                                                                                                            Carrier and Marine Terminal Operator                  Commission’s regulations set forth
                                                    82 FR 16288 (Apr. 4, 2017); rulemaking
                                                                                                            Agreements Subject to the Shipping Act                above, any individual regulation
                                                    record available at http://www.fmc.gov/
                                                                                                            of 1984, (Notice of Proposed                          thereunder, or any section or subsection
                                                    16-05/).                                                Rulemaking published at 81 FR 53986                   of such regulations, interested parties
                                                    46 CFR Part 532 NVOCC Negotiated                        (Aug. 15, 2016); rulemaking record                    are asked to submit written comments
                                                    Rate Arrangements                                       available at www.fmc.gov/16-04/).                     that: (1) Identify the particular FMC
                                                                                                            Parties are encouraged to review that                 regulation or program believed
                                                      NVOCCs may enter into an NVOCC                        rulemaking proceeding before filing                   burdensome or ineffective; (2) provide
                                                    Negotiated Rate Arrangement (NRA),                      comments to this Notice of Inquiry.                   details as to how the FMC program
                                                    which are exempt from certain tariff rate               46 CFR Part 540 Passenger Vessel                      imposes unnecessary costs or burdens
                                                    publication requirements. NRAs are                      Financial Responsibility                              upon your business; and (3) indicate the
                                                    written arrangements between a shipper                                                                        manner by which the program or
                                                    and a licensed or registered NVOCC to                      Under this program, the Commission                 particular requirement should best be
                                                    provide specific transportation service                 issues certificates to operators of                   repealed, replaced, or modified. The
                                                                                                            passenger vessels (PVOs) with berths for              FMC requests that comments be as
                                                    for a stated cargo quantity, from origin
                                                                                                            50 or more passengers and that embark                 specific as possible and include any
                                                    to destination, on and after a stated date
                                                                                                            passengers from U.S. ports. The                       supporting data or other helpful
                                                    or within a defined time frame. If an                   Certificate (Performance) evidences that
                                                    NVOCC uses NRAs, it need not publish                                                                          information in order to assist the
                                                                                                            the PVO has on file with the                          Commission with its review.
                                                    that rate in the tariff it makes available              Commission acceptable coverage to
                                                    to the public. Unlike service contracts                                                                         By the Commission.
jstallworth on DSK7TPTVN1PROD with PROPOSALS




                                                                                                            satisfy any liability incurred for
                                                    and NSAs, NRAs are not filed with the                   nonperformance of transportation, such                Rachel E. Dickon,
                                                    Commission, but are maintained in                       as when a PVO declares bankruptcy and                 Assistant Secretary.
                                                    private electronic systems.                             fails to complete the cruises booked.                 [FR Doc. 2017–11321 Filed 5–31–17; 8:45 am]
                                                                                                            The coverage is used to reimburse                     BILLING CODE 6731–AA–P




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Document Created: 2017-06-01 03:05:27
Document Modified: 2017-06-01 03:05:27
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionNotice of inquiry.
DatesComments are due July 5, 2017.
ContactFor questions regarding submitting comments or the treatment of confidential information, contact Rachel E. Dickon, Assistant Secretary, Federal Maritime Commission, 800 North Capitol Street NW., Ste. 1046, Washington, DC 20573-0001. Phone: (202) 523-5725. Email: [email protected] For all other questions, contact Karen V. Gregory, Managing Director, Federal Maritime Commission, 800 North Capitol Street NW., Room 1018, Washington, DC 20573-0001. Phone: (202) 523-5800. Email: [email protected]
FR Citation82 FR 25221 
RIN Number3072-AC69
CFR Citation46 CFR 515
46 CFR 520
46 CFR 525
46 CFR 530
46 CFR 531
46 CFR 532
46 CFR 535
46 CFR 540
46 CFR 565

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