FMC outlines regulatory reform, adjusts penalties

The U.S. maritime regulator outlined a plan identifying certain regulations under its purview that are suited for reform or elimination, and has adjusted its penalty amounts in line with inflation.    The U.S. Federal Maritime Commission (FMC) has outlined a plan that identifies certain regulations under its purview that are suited for reform or elimination, and has established a schedule for carrying out this initiative.
   Led by its Regulatory Reform Task Force, the FMC began a comprehensive review of its existing regulations on March 13, 2017. The task force identified “burdensome, unnecessary and outdated directives,” and recommended how they should be remedied. Public comments were also obtained and reviewed. 
   The FMC’s Plan for Regulatory Reform of Existing FMC Rules “outlines the steps to systematically review key regulations under the commission’s authority for provisions that may be burdensome and no longer necessary to meet the agency’s obligations under the Shipping Act.”
   Acting FMC Chairman Michael A. Khouri complimented the task force for establishing “a meaningful list of administrative and regulatory provisions that if amended or eliminated, will result in making it easier for companies to do business while permitting the commission to maintain competition and integrity for America’s ocean supply chain.” 
   However, the FMC promised a detailed review by its staff of all regulations identified for reform or elimination, and that it will solicit public comments to further its analysis, as well as put them before the commissioners for their consideration.
   The FMC technically started its regulatory reform last year. For example, the commission issued a notice of proposed rulemaking on Nov. 29, 2017, seeking industry comments on a plan to amend its rules governing Non-Vessel-Operating Common Carrier (NVO) Service Arrangements (NSAs) and NVO Negotiated Rate Arrangements (NRAs), making them easier for shippers to use. Comments on that docket are due to the commission by Jan. 29.
   In March 2017, the commission issued a final rule that reduced regulatory compliance requirements for service contracts and NSAs in several ways. Most significantly, parties to service contracts and NSAs were provided the ability to allow an amendment to a contract to go into effect upon agreement. Previously, changes to contracts had to be filed at the commission before taking effect. The final rule also extends the time in which parties can make corrections to data filed erroneously due to transmission errors, and provides more time to file service contract correction requests, the FMC said.
   In February 2017, the FMC moved to an online renewal process for ocean transportation intermediary (OTI) licenses and foreign registered NVOs, “reducing the time and effort required for these regulated entities to meet their compliance obligations.”
   The FMC has also slightly raised its penalty amounts for 11 Shipping Act violations in line with the 2015 Federal Civil Penalties Inflation Adjustment Improvements Act. The Act requires agencies to adjust their civil monetary penalties under their jurisdiction based on changes in the consumer price index by Jan. 15 of each year. 
   For example, the civil penalty for knowing and willfully violating the Shipping Act, commission regulation or order (46 U.S.C. 41107(a)) was increased from $57,391 to $58,562, while the civil penalty for operating in foreign commerce after a tariff suspension (46 U.S.C. 41108(b)) was increased from $114,782 to $117,125. A complete list of the new civil penalty amounts is available here.