FMC Ends Carrier Reporting Requirements for U.S.-Japan Trade
The Federal Maritime Commission has issued an Order terminating the proceeding “Port Restrictions and Requirements in the United States-Japan Trade” (Docket No. 96-20) and its semi-annual reporting requirements, in order to eliminate the reporting burden on carriers.
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The proceeding was in response to 1996 alleged unfavorable conditions in the foreign ocean borne trade between the U.S. and Japan.
FMC Investigated U.S.-Japan Ocean Borne Trade but Delayed Action
In February 1997, following an extensive investigation into ocean borne trade between the U.S. and Japan, the FMC issued a final rule finding unfavorable conditions facing U.S. ocean shipping interests in Japanese ports. The rule took effect in September 1997, but was suspended by FMC on November 13, 1997, after the signing of comprehensive government-to-government and industry-government accords to substantially reform Japanese port practices.
FMC Noted Slow Progress and Reform and Issued Reporting Order
In May 1999, FMC noted that the pace of progress and reform in Japan’s port transportation sector had been slow, despite commitments of the Government of Japan to open markets and increase accountability. On May 28, 1999, FMC issued an Order requiring U.S. and Japanese ocean common carriers in the U.S.-Japan trade to provide reports addressing the status of efforts to reform conditions unfavorable to shipping in the U.S.-Japan trade.
FMC then Amended Reporting Order Requirements
On August 9, 2001, FMC amended the reporting requirements established in its May 1999 Order. FMC ordered Kawasaki Kisen Kaisha, Ltd., Mitsui O.S.K. Lines, Ltd., and Nippon Yusen Kaisha, Ltd. to file with the FMC by November 7, 2001, collectively or individually, copies of any cabinet orders or ministerial ordinances, notifications, notices, or regulations issued by the Japanese Ministry of Transportation or the Ministry of Land, Infrastructure and Transport, implementing or interpreting Japan’s revised Port Transportation Business Act.
FMC also rescinded the requirement for the submission of reports as required in FMC’s May 1999 Order, and ordered that semi-annual reports be filed by American President Lines, Ltd.; A. P. Moller Maersk Sea-Land (now Maersk Line); Kawasaki Kisen Kaisha, Ltd.; Mitsui O.S.K. Lines, Ltd.; and Nippon Yusen Kaisha.
FMC Finds Reporting Requirements No Longer Justify Burden to Carriers
The periodic reports received from all the carriers following the August 2001 Order suggest that the potential benefits of continuing the proceeding and its semi-annual reporting requirements no longer justify the accompanying regulatory burdens on the affected ocean carriers.
FMC continues to have concerns regarding the Japanese licensing requirements for new entrants in the terminal services industry and the system of prior consultation. However, the FMC has determined that the most efficient course of action now is to terminate the current proceeding and its semi-annual reporting requirements, while encouraging the industry and shipping public to report any new restrictions or disputes affecting shipping in the U.S.-Japan trades as they arise.
(See ITT’s Online Archives or 01/20/11 news, 11012037, for BP summary announcing FMC’s January 26 meeting where they were to discuss port restrictions and requirements in the U.S.-Japan trade.)