FMC Seeks Comments on Effects of Recent Maritime Agreement on China's Shipping Practices, Etc
In connection with D/N 98-14, the Federal Maritime Commission (FMC) has issued a notice of inquiry requesting comments, no later than June 1, 2004, on the current status of shipping in the U.S. trade with China and the effects of the new U.S.-China bilateral Agreement on Maritime Transportation (AMT).
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Specifically, the FMC seeks information on whether anticipated improvements have occurred in the ability of non-Chinese ocean carriers and non-vessel operating common carriers (NVOCCs) to conduct operations in the U.S. trade with China. The FMC states that interested parties, including shippers, ocean transportation intermediaries (OTIs), vessel operators and others in the shipping industry, are invited to comment.
(In August 1998, the FMC launched D/N 98-14, a formal inquiry into the restrictions facing the U.S. maritime industry and U.S. oceanborne trade in China.
The FMC took this action in light of reports of potentially unfair or restrictive Chinese maritime policies, such as: the prohibition of branch offices on non-Chinese vessel operators in locations other than port cities at which they or their carrier partners have regular vessel calls; limitation of vessel agency operations to Chinese-state-owned entities; and possible adverse effects of the Chinese Regulation on International Maritime Transport (RIMT) and final rules implementing RIMT issued on December 25, 2002, particularly on the ability of NVOCCs to conduct business in China.)
AMT Commitments Address Major Concerns of D/N 98-14
The FMC now believes that the AMT contains commitments for actions by the Chinese government that, if implemented, appear likely to resolve all of the major concerns raised in this proceeding.
Information obtained from this notice of inquiry will help determine whether the commitments made by the Chinese are being acted upon, and therefore whether discontinuance of this proceeding is appropriate.
For example, the FMC states it will be able to ascertain whether NVOCC concerns have been adequately addressed when optional bond riders for the China trade have been filed with the FMC and some NVOCCs have successfully obtained licenses to operate in China on the basis of such riders. (See ITT's Online Archives or 04/05/04 news, 04040505 for BP summary of final rule on optional bond rider.)
(See ITT's 08/14/98 news, (Ref:98081391), for BP summary of D/N 98-14.
See ITT's Online Archives or 12/12/03 news, 03121215, for most recent BP summary of the provisions of the AMT and the related Memorandum of Consultations.)
-written comments are due no later than June 1, 2004.
FMC notice of inquiry (D/N 98-14, dated 04/01/04) available athttp://www.fmc.gov/Dockets/98-14-CHINA-Notice%20of%20Inquiry.htm