Helen Khadem d/b/a Worldwide Cargo Express/Trading; Order to Show Cause

[Federal Register Volume 63, Number 185 (Thursday, September 24, 1998)]
[Notices]
[Pages 51070-51071]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-25526]


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FEDERAL MARITIME COMMISSION

[Docket No. 98-17]


Helen Khadem d/b/a Worldwide Cargo Express/Trading; Order to Show 
Cause

    This proceeding is instituted pursuant to sections 8, 11 and 23 of 
the Shipping Act of 1984 (``1984 Act''), 46 U.S.C. app. 1707, 1710 and 
1721, and the Federal Maritime Commission's (``Commission'') 
regulations governing tariff and bonding requirements of non-vessel-
operating common carriers, 46 CFR part 514.
    Helen Khadem (``Khadem'') is a resident of the State of California. 
Since approximately May 1996, Khadem has registered Worldwide Cargo 
Express/Trading (``Worldwide'') with the California Secretary of State 
as a fictitious business name. Khadem maintains offices at 6279 E. 
Slauson Ave., Suite 101, Los Angeles, California 90040, from which 
premises she operates a business under the name Worldwide Cargo 
Express/Trading.
    Based on complaints to the Commission, it appears that since at 
least February 1997, Khadem, doing business as Worldwide, has shipped 
or agreed to transport household goods, automobiles and personal 
effects in the foreign commerce of the United States. Evidence obtained 
during an investigation shows that for at least twelve (12) shipments 
known to the Commission, Worldwide collected goods and ocean freight 
from individual shippers, and then, in the capacity of a shipper, 
contracted with common carriers for the ocean transportation.\1\ 
Worldwide was named as shipper on the ocean carrier bills of lading and 
export declarations and was responsible for the payment of the freight 
charges. The name of the actual shipper appears as a consignee or 
notify party on the ocean carrier bill of lading. In lieu of house 
bills of lading, Worldwide issues a bill of lading/pick-up order 
showing Worldwide as shipper, which is apparently used for pick-up and 
delivery of the cargo to the port.
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    \1\ Details of these twelve shipments are as follows:

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                                             Worldwide
             Shipper/customer               invoice No.      Date                     Destination
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Jake Wakstein.............................        97206       1/5/98  London.

[[Page 51071]]

Gary N. Manasseh..........................        97212      1/21/98  London.
Richard J. Masom..........................        97216      1/30/98  Auckland.
Guillermo/Victoria Wiesse.................        97218      1/30/98  Callao, Peru.
Barry Gray................................        97222      2/11/98  London.
Loretta M. Strickland.....................        97223      2/17/98  Ramatuelle, France.
Patrick William...........................        97224      2/18/98  Kingston.
Candle Light &............................        97225      2/16/98  Hong Kong.
Edgar Uy..................................        97226      2/19/98  Cebu, Philippines.
SIMO......................................        97227      2/19/98  Casablanca.
Rod Bustos................................        97230      2/23/98  Manilla.
Igor Nikitine.............................        97231      2/25/98  Helsinki.
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    Section 8 of the 1984 Act, provides that no common carrier may 
provide service in United States foreign trades unless the carrier has 
first filed a tariff with the Federal Maritime Commission showing all 
of its rates, charges and practices. Section 23 of the 1984 Act further 
provides that each non-vessel-operating common carrier must furnish to 
the Commission a bond, proof of insurance or other surety, inter alia, 
to insure the financial responsibility of the carrier to pay any 
judgment for damages arising from its transportation-related 
activities. According to a review of records maintained by the 
Commission's Bureau of Tariffs, Certification and Licensing, no tariff 
or bond has been filed with the Commission in the name of Worldwide or 
Khadem. Therefore, it would appear that Helen Khadem, doing business as 
Worldwide Cargo Express/Trading, by providing and holding herself out 
to the public to provide transportation by water of cargo for 
compensation, has acted as a non-vessel-operating common carrier 
without a tariff or bond on file with the Commission, in violation of 
sections 8 and 23 of the 1984 Act.
    Now therefore, it is ordered That pursuant to section 11 of the 
Shipping Act of 1984, Helen Khadem, doing business as Worldwide Cargo 
Express/Trading, show cause why she should not be found to have 
violated section 8 of the Shipping Act of 1984 by acting as a non-
vessel-operating common carrier in each of the twelve (12) instances, 
specified above, without a tariff for such service on file with the 
Commission;
    It is further ordered That pursuant to section 11 of the Shipping 
Act of 1984, Helen Khadem, doing business as Worldwide Cargo Express/
Trading, show cause why she should not be found to have violated 
section 23 of the Shipping Act of 1984 by acting as a non-vessel-
operating common carrier in each of the twelve (12) instances, 
specified above, without a bond for such service on file with the 
Commission.
    It is further ordered that Helen Khadem, doing business as 
Worldwide Cargo Express/Trading, show cause why an order should not be 
issued directing Helen Khadem to cease and desist from providing or 
holding herself out to provide transportation as a non-vessel-operating 
common carrier between the United States and a foreign country unless 
and until such time as Khadem or Worldwide Cargo Express/Trading shall 
have filed a tariff and a bond for such service with the Commission.
    It is further ordered that this proceeding is limited to the 
submission of affidavits of fact and memoranda of law;
    It is further ordered that any person having an interest and 
desiring to intervene in this proceeding shall file a petition for 
leave to intervene in accordance with Rule 72 of the Commission's Rules 
of Practice and Procedure, 46 CFR 502.72. Such petition shall be 
accompanied by the petitioner's memorandum of law and affidavits of 
fact, if any, and shall be filed no later than the day fixed below;
    It is further ordered that Helen Khadem is named a Respondent in 
this proceeding. Affidavits of fact and memoranda of law shall be filed 
by Respondent and any intervenors in support of Respondent no later 
than October 8, 1998;
    It is further ordered that the Commission's Bureau of Enforcement 
be made a party to this proceeding;
    It is further ordered that reply affidavits and memoranda of law 
shall be filed by the Bureau of Enforcement and any intervenors in 
opposition to Respondent no later than October 28, 1998;
    It is further ordered that rebuttal affidavits and memoranda of law 
shall be filed by Respondents and intervenors in support no later than 
November 9, 1998;
    It is further ordered that;
    (a) Should any party believe that an evidentiary hearing is 
required, that party must submit a request for such hearing, together 
with a statement setting forth in detail the facts to be proved, the 
relevance of those facts to the issues in this proceeding, a 
description of the evidence which would be adduced, and why such 
evidence cannot be submitted by affidavit;
    (b) Should any party believe that an oral argument is required, 
that party must submit a request specifying the reasons therefore and 
why argument by memorandum is inadequate to present the party's case; 
and
    (c) Any request for evidentiary hearing or oral argument shall be 
filed no later than November 9, 1998;
    It is further ordered that notice of this Order to Show Cause be 
published in the Federal Register, and that a copy thereof be served 
upon Respondent;
    It is further ordered that all documents submitted by any party of 
record in this proceeding shall be filed in accordance with Rule 118 of 
the Commission's rules of practice and procedure, 46 CFR 502.118, as 
well as being mailed directly to all parties of record;
    Finally, it is ordered that pursuant to the terms of Rule 61 of the 
Commission's rules of practice and procedure, 46 CFR 502.61, the final 
decision of the Commission in this proceeding shall be issued by May 
18, 1999.

    Dated: September 18, 1998.

    By the Commission.
Joseph C. Polking,
Secretary.
[FR Doc. 98-25526 Filed 9-23-98; 8:45 am]
BILLING CODE 6730-01-M