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is issuing this Inquiry to solicit information and comments in an effort to identify existing FMC regulations that are outdated, unnecessary, ineffective, eliminate jobs or inhibit job creation, impose costs that exceed benefits, or otherwise interfere with regulatory reform initiatives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.

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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identify existing FMC regulations that are outdated, unnecessary, 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


Current View
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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