FEDERAL MARITIME COMMISSION
46 CFR PART 586
[DOCKET NO. 96-20]
PORT RESTRICTIONS AND REQUIREMENTS
IN THE UNITED STATES/JAPAN TRADE
AGENCY: Federal Maritime Commission.
ACTION: Amendment to final rule.
SUMMARY: The Federal Maritime Commission is amending the final
rule in this proceeding to provide that fees shall not be
assessed on vessels for which fees have been assessed
within the preceding seven days, or in the case of
vessels calling at ports in Hawaii, within the preceding
forty days.
DATES: Effective Date: April 14, 1997.
ADDRESS: Requests for publicly available information or additional
filings should be addressed to:
Joseph C. Polking, Secretary
Federal Maritime Commission
800 North Capitol Street, N.W.
Washington, D.C. 20573
(202)523-5725
FOR FURTHER INFORMATION CONTACT:
Thomas Panebianco, General Counsel
Federal Maritime Commission
800 North Capitol Street, N.W.
Washington, D.C. 20573
(202)523-5740
SUPPLEMENTARY INFORMATION:
On March 4, 1997, the Commission published a final rule in
this proceeding assessing per-voyage fees, effective April 14,
on Japanese liner carriers in response to restrictive and unfavorable
requirements for the use of Japanese ports (62 FR 9696). On April
4, 1997, Nippon Yusen Kaisha (NYK), one of the three Japanese
carriers subject to the imposition of fees, submitted a "Request
for Clarification" of the final rule to the Commission's General
Counsel. In its request, NYK urges that the Commission make
certain modifications to the final rule with regard to the
assessment of fees. The request will therefore be treated as a
petition for amendment of the Final Rule.
NYK's request centers on the application of the final rule as
written to two particular NYK trans-Pacific service strings. The
final rule, 46 C.F.R. 586.2, states:
(c) Assessment of fees. A fee of one hundred thousand
dollars is assessed each time a designated vessel is
entered in any port of the United States from any foreign
port or place.
NYK operates a weekly service with the rotation: Japan/Taiwan/Hong
Kong/Los Angeles/Portland/Vancouver/Seattle/Japan. Under the final
rule, vessels in this string would be subject to a $100,000 fee
first when they enter Los Angeles from Hong Kong, then another fee
when they arrive at Seattle from Vancouver. NYK suggests that this
sort of "double assessment" was not envisaged by the Commission
when it promulgated the rule. It also states that such double
assessments could lead NYK to drop a U.S. port from its rotation.
NYK also offers bi-monthly sailings to Honolulu in the
following pattern: Far East/Honolulu/Central America/Honolulu/Far
East. Under the rule, NYK would be subject to fees on both the
eastbound and the westbound legs of this voyage. NYK indicates
that this could cause it to drop one Hawaiian port call from its
rotation. NYK points out that the Commission, in levying the fee,
adopted an approach designed to "eliminate the concern that the
fee could lead to lines dropping or consolidating port calls in the
U.S." NYK suggests an amendment to the rule that would be in
keeping with this intent, addressing the issues raised by the two
above-described service strings. NYK proposed adding the following
to paragraph (c):
provided that no fee is assessed against a designated
vessel (1) if that vessel has previously been assessed a
fee under this rule within the past ten days, or (2) for
a vessel calling in the state of Hawaii, has previously
been assessed a fee under this rule within the past
forty-five days.
The proposed amendment is in keeping with the Commission's
sensitivity to avoiding unnecessary adverse effects to U.S. ports
and shippers. The proposed amendment would prevent NYK from being
subjected to two fee assessments for one set of west coast port
calls based on its unique service structure, heading off the
possibility of an unintended impact on service for the U.S. Pacific
northwest. It would also take into account Hawaii's unique
position and reliance on maritime commerce, ensuring that ports and
commerce in that state are not disadvantaged by the rule. The
proposed exceptions are narrowly crafted, and do not undermine the
larger objectives of the rule, that is, addressing the restrictive
and unfavorable conditions facing U.S. commerce and U.S. companies
in Japan's ports which result from the laws and policies of the
Government of Japan. It does not appear that service strings or
vessel calls other than those listed above would be affected by
this proposed language.
We would also note that, except with regard to the two NYK
services noted above, further analysis by the Commission since the
issuance of the final rule supports and reconfirms our earlier
finding that carriers are unlikely to drop port calls or divert
services in response to the Commission's fee. Moreover, it has
been widely reported in the press that the Japanese carriers have
informed their customers that their current services will continue
without interruption. Therefore, we would reaffirm that the
likelihood of any undue harm to U.S. ports and shippers from the
Commission's action appears exceptionally low.
List of Subjects in 46 CFR Part 586
Cargo vessels; Exports; Foreign relations; Imports; Maritime
carriers; Penalties; Rates and fares; Tariffs.
Therefore, pursuant to section 19(1)(b) of the Merchant Marine
Act, 1920, 46 U.S.C. app. 876(1)(b), as amended, Reorganization
Plan No. 7 of 1961, 75 Stat. 840, and 46 CFR Part 585, Part 586 of
Title 46 of the Code of Federal Regulations is amended as follows:
1. The authority section for Part 586 continues to read as
follows:
Authority: 46 U.S.C. app. 876(1)(b); 46 U.S.C. app. 876(5)
through (12); 46 CFR Part 585; Reorganization Plan No. 7 of 1961,
26 FR 7315 (August 12, 1961).
2. Section 586.2(c) is amended to read as follows:
(c) Assessment of fees. A fee of one hundred thousand dollars
is assessed each time a designated vessel is entered in any port of
the United States from any foreign port or place; provided,
however, that no fee is assessed against a designated vessel if (1)
that vessel has previously been assessed a fee under this section
within the past seven days, or (2) for a vessel calling in the
state of Hawaii, that vessel has previously been assessed a fee
under this section within the past forty days.
By the Commission.
Joseph C. Polking
Secretary
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