Home / Signals™ / Signals™ Headlines – December 1, 1998

Signals™ Headlines - December 1, 1998

Anti-Rebating Certification Requirements: Waived by FMC for 1999

The FMC requirement for Anti-Rebating Certification has been waived for 1999. Due to this waiver the chief executive officers of common carriers, NVOCCs and freight forwarders will not be required to file certifications by December 31, 1998. This action is being taken to alleviate the filing burden on the public and the collection burden on the Commission, in light of changes made by the Ocean Shipping Reform Act of 1998 (OSRA) which removes the filing requirement on May 1, 1999, when OSRA becomes effective.

This waiver is strictly for administrative convenience. In an order issued November 18, 1998, the FMC makes clear that the Shipping Act, as current in force, and as amended by OSRA, prohibits the payment, receipt or solicitation of illegal rebates. This waiver of certification requirements does not modify, in any manner, the Commission’s enforcement obligations or efforts with respect to past or future rebate activity. All persons and organizations subject to the FMC’s jurisdiction are still prohibited from engaging in illegal rebating, and are required to cooperate with the Commission in its efforts to end illegal rebating.

FMC Begins to Issue Proposed Rules: Implementing the Ocean Shipping Reform Act

At a meeting held in Washington on November 24, the FMC Commissioners approved the publication of the first two of several proposed rulemakings to be undertaken implementing the Ocean Shipping Reform Act of 1998 (OSRA). Additionally, the Commission announced its intended general reorganization of the Code of Federal Regulations Title 46 (CFR-46) Parts 500-588.

The proposed revisions to CFR-46 will organize FMC’s regulations in three subchapters. Subchapter A (Parts 501-508) will continue to set forth general and administrative provisions. Subchapter B (Parts 515-545) will contain all of the Commission’s basic regulations concerning operations in the U.S. foreign commerce, including tariff publication regulations. Subchapter C (Parts 550-565) will be set aside to cover matters involving the restrictive maritime practices of foreign governments and controlled carriers.

The two proposals adopted 24Nov1998 are:

(1) Miscellaneous Amendments to Rules of Practice and Procedure which make changes to the rules of practice necessitated by OSRA, such as special docket procedures, and petitions for exemptions; makes a number of routine administrative changes, and makes certain other revisions to clarify the rules.

(2) Amendments to Regulations Governing Restrictive Foreign Shipping Practices, and New Regulations Governing Controlled Carriers which update and clarify rules implementing section 19 of the Merchant Marine Act, 1920, sections 9 and 13(b)(5) of the Shipping Act of 1984, and the Foreign Shipping Practices Act of 1988 to reflect changes made by the Ocean Shipping Reform Act of 1998.

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