Section 16 of the Shipping Act of
1984, 46 U.S.C. § 40103, authorizes the Federal Maritime Commission
(“Commission”) to exempt by order or regulation “any class of
agreements between persons subject to this [Act] or any specified
activity of those persons from any requirement of this [Act] if the
Commission finds that the exemption will not result in substantial
reduction in competition or be detrimental to commerce. The
Commission may attach conditions to any exemption and may, by
order, revoke an exemption.” The Commission added 46 CFR 532 to
exempt non-vessel-operating common carriers (NVOCCs) from the more
stringent tariff rate publication requirements of the Shipping Act
of 1984 and related provisions of the Commission’s regulations to
permit them to enter into negotiated rate arrangements (NRAs) with
shippers.76 FR 11351 (March 2, 2011). The Commission subsequently
extended the tariff rate publication exemption contained in 46 CFR
part 532 to foreign based unlicensed NVOCCs as well. 78 FR 42886
(July 10, 2013). The exemption is conditioned upon the NVOCC
including a prominent notice invoking the exemption in its
electronically published rules tariff and indicating their
intention to the Commission. In addition, NVOCCs must maintain
original NRAs and associated records for 5 years in a format easily
produced to the Commission and furnish those records promptly upon
request from the Commission. An NVOCC invoking the exemption must:
Include its rates in a tariff open to public inspection (46 CFR
532.3(a)(1); Comply with 46 USC 40501(d) and (e) (46 CFR 532.3(b)
and (c)); Comply with 46 USC 40503 (46 CFR 532.3(d); Adhere to the
prohibitions in 46 USC 41104(a)(2)(A) (46 CFR 532.3(e); Include its
rates in a tariff open for public inspection in an automated tariff
system (46 CFR 532.3(f); Comply with 46 CFR 520.4(a)(4), 520.4(f),
520.6(e), 520.7(c) and (d), 520.8(a), 520.12, and 520.14 (46 CFR
523..3(g); Ensure their NRA meets the requirements of 46 CFR 532.5;
Indicate their intention to the Commission and the public to invoke
the exemption by a prominent notice in its rules tariff (46 CFR
532.6); Maintain original NRAs in a readily accessible and
retrievable manner for 5 years from the completion date of
performance of the NRA (46 CFR 532.7; and Promptly respond to
requests by the Commission for those records (46 CFR
532.7).
US Code:
46
USC 41109(e) Name of Law: Shipping Act of 1984
US Code: 46
USC 40103 Name of Law: Shipping Act of 1984
The estimated potential
reporting respondent universe (licensed NVOCCs and foreign-based
registered NVOCCs) is approximately 8,700; an average of 500
annually over the last three years have added a prominent notice to
its electronically published rules tariff indicating the intention
to invoke the NRA exemption. Of the total respondent universe,
3,800 have thus far invoked the exemption to use NRAs. The cost
burden was added to each information collection.
$12,065
No
No
No
No
No
No
No
Sarah Cinq Mars 202 523-1899
scinqmars@fmc.gov
No
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.