FMC Clarifies Orders Granting Three Chinese Carriers Exemption from Controlled Carrier 30-Day Waiting Period for Tariff Reductions
The Federal Maritime Commission (FMC) has clarified its orders in which it granted three Chinese carriers exemption from certain provisions of Section 9(c) of the Shipping Act of 1984 (46 USC app. 1708) (Controlled Carrier Act).
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The three petitions were filed by China Ocean Shipping (Group) Company (COSCO) (P3-99), China Shipping Container Lines Co., Ltd. (China Shipping) (P4-03), and Sinotrans Container Lines Co., Ltd. (Sinolines) (P6-03).
FMC's Exemption Covers Charges, Classifications, Rules, and Regulations, in Addition to Rates
According to the FMC, it has come to light that there may be some confusion as to whether the orders intended to exempt only these carriers' tariff "rates" from the implementation delay provided for by Section 9(c) or whether that exemption was intended to also apply to their tariff "charges, classifications, rules, or regulations."
The FMC explains that controlled carriers are prohibited by Section 9(c) from making changes in tariff "rates, charges, classifications, rules, or regulations" effective sooner than the 30th day after publication of the change.
The relief requested, and granted by the FMC, exempts the petitioners from that prohibition, thereby allowing changes to "rates, charges, classifications, rules or regulations" which result in a decreased cost to the shipper to become effective upon publication.
or, regarding COSCO, the partial exemption granted by the FMC in 1998.
(See ITT's Online Archives or 04/07/04 news, 04040715, for BP summary of the FMC's orders.)
FMC Clarifications (served 04/16/04) available at
P3-99: http://www.fmc.gov/Dockets/P3-99%20clarification%20order%20COSCO.htm
P4-03: http://www.fmc.gov/Dockets/P03%20clarification%20order%20China%20Shipping.htm
P6-04: http://www.fmc.gov/Dockets/P6-03%20clarification%20order%20Sinolines.htm