EuroUSA Shipping, Inc., Tober Group, Inc., and Container Innovations, Inc.-Possible Violations of Section 10 of the Shipping Act of 1984 and the Commission's Regulations at 46 CFR 515.27; Order of Investigation and Hearing, 29964-29965 [E6-7874]

Agencies

• Federal Maritime Commission

[Federal Register Volume 71, Number 100 (Wednesday, May 24, 2006)]
[Notices]
[Pages 29964-29965]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-7874]



[[Page 29964]]

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FEDERAL MARITIME COMMISSION

[Docket No. 06-06]


EuroUSA Shipping, Inc., Tober Group, Inc., and Container 
Innovations, Inc.--Possible Violations of Section 10 of the Shipping 
Act of 1984 and the Commission's Regulations at 46 CFR 515.27; Order of 
Investigation and Hearing

    Euroamerica Group, Inc. (``Euroamerica'') was incorporated in the 
State of Maryland on May 23, 1994. The President and Qualifying 
Individual (``QI'') of Euroamerica was Mr. Mark Nash. Euroamerica 
operated as a licensed non-vessel-operating common carrier (``NVOCC'') 
until December 2005 when it merged with Deliver USA, Inc. The surviving 
corporation, EuroUSA Shipping, Inc. (``EuroUSA''), continues to operate 
as a licensed and tariffed NVOCC. EuroUSA maintains an NVOCC bond in 
the amount of $75,000. The company's principal place of business is 
located at 10610 Iron Bridge Road, Unit 6, Jessup, Maryland 20794. Mr. 
Nash continues to serve as the President and QI of EuroUSA.
    Based on evidence available to the Commission, it appears that 
between February 2004 and December 2005, EuroUSA knowingly and 
willfully accepted cargo from or transported cargo for the account of 
several ocean transportation intermediaries (``OTIs'') that did not 
have tariffs and bonds as required by sections 8 and 19 of the Shipping 
Act of 1984 (``the Act'') and the Commission's regulations at 46 CFR 
515.27.
    Tober Group, Inc. (``Tober'') was incorporated in the State of New 
York on March 1, 1996. The President and QI of Tober is Mr. Yonatan 
Benhaim. Tober received a license to operate as an ocean freight 
forwarder (``OFF'') on July 17, 1996. In 1999, Tober applied for and 
received a license to operate as an NVOCC. Tober is presently active as 
a licensed and tariffed NVOCC and OFF with a principal place of 
business at 185 Randolph Street, Brooklyn, New York 11237. Tober 
maintains an NVOCC bond in the amount of $75,000 and an OFF bond in the 
amount of $50,000. Tober publishes its electronic tariff at https://
www.dpiusa.com. The single commodity covered by this tariff is ``Cargo, 
N.O.S.'' and the tariff has not been updated since its original issue 
on January 7, 2004. The tariff rate for Tober's N.O.S. cargo is $500 
per 1,000 kilograms or 1 cubic meter, whichever yields the higher 
amount.
    Based on evidence available to the Commission, it appears that 
between May 2004 and December 2005, Tober knowingly and willfully 
accepted cargo from or transported cargo for the account of several 
OTIs that did not have tariffs and bonds as required by sections 8 and 
19 of the Act and the Commission's regulations at 46 CFR 515.27. 
Section 10(b)(2)(A) of the Act states that no common carrier may 
provide service in the liner trade that is not in accordance with the 
rates and charges contained in a published tariff. 46 App. U.S.C. 
1709(b)(2)(A). It appears that from at least January 2004, Tober has 
provided liner service to its shippers that was not in accordance with 
the $500 Cargo, N.O.S. rate published in its electronic tariff.
    Container Innovations, Inc. (``CI'') was incorporated in the State 
of New Jersey on March 27, 1985 and is presently located at 123 
Pennsylvania Avenue, Kearny, New Jersey 07032. The President and QI of 
CI is Mr. Angelo J. Carrera. CI has been a licensed NVOCC since 
September 1999 and maintains an NVOCC bond in the amount of $75,000.
    Based on evidence available to the Commission, it appears that 
between September 2004 and March 2006, CI knowingly and willfully 
accepted cargo from or transported cargo for the account of several 
OTIs that did not have tariffs and bonds as required by sections 8 and 
19 of the Act and the Commission's regulations at 46 CFR 515.27.
    Section 10(b)(11) of the Act, 46 App. U.S.C. 1709(b)(11), prohibits 
any common carrier from knowingly and willfully accepting cargo from or 
transporting cargo for the account of an OTI that does not have a 
tariff and a bond as required by sections 8 and 19 of the Act. The 
Commission's regulations at 46 CFR 515.27 affirm this statutory 
requirement. Any OTI operating as an NVOCC in the United States must 
provide evidence of financial responsibility in the amount of $75,000. 
46 CFR 515.21. Furthermore, section 8(a) of the Act, 46 App. U.S.C. 
1707(a), requires NVOCCs to maintain open to public inspection in an 
automated tariff system, tariffs showing their rates, charges, 
classifications and practices. Information gathered thus far indicates 
each of the Respondents provided ocean transportation services to 
entities known to be operating as unlicensed NVOCCs. A person is 
subject to a civil penalty of not more than $30,000 for each violation 
knowingly and willfully committed. 46 CFR part 506.
    Now therefore, it is ordered, That pursuant to section 11(c) of the 
Shipping Act of 1984, 46 App. U.S.C. 1710(c), an investigation is 
instituted to determine:
    (1) Whether the Respondents violated section 10(b)(11) of the 
Shipping Act of 1984 and the Commission's regulations at 46 CFR 515.27 
by knowingly and willfully accepting cargo from or transporting cargo 
for the account of an OTI that did not have a tariff and a bond as 
required by sections 8 and 19 of the Act;
    (2) Whether Respondent Tober violated section 10(b)(2)(A) of the 
Act by providing service in the liner trade that was not in accordance 
with the rates and charges contained in a published tariff.
    (3) Whether, in the event one or more violations of section 10 of 
the Act and/or 46 CFR 515.27 are found, civil penalties should be 
assessed and, if so, the amount of the penalties to be assessed;
    (4) Whether, in the event violations are found, appropriate cease 
and desist orders should be issued; and
    (5) Whether, in the event violations are found, such violations 
constitute grounds for the revocation of any Respondent's OTI license 
pursuant to 46 CFR 515.16.
    It is further ordered, That a public hearing be held in this 
proceeding and that this matter be assigned for hearing before an 
Administrative Law Judge of the Commission's Office of Administrative 
Law Judges at a date and place to be hereafter determined by the 
Administrative Law Judge in compliance with Rule 61 of the Commission's 
Rules of Practice and Procedure, 46 CFR 502.61. The hearing shall 
include oral testimony and cross-examination in the discretion of the 
presiding Administrative Law Judge only after consideration has been 
given by the parties and the presiding Administrative Law Judge to the 
use of alternative forms of dispute resolution, and upon a proper 
showing that there are genuine issues of material fact that cannot be 
resolved on the basis of sworn statements, affidavits, depositions, or 
other documents or that the nature of the matters in issue is such that 
an oral hearing and cross-examination are necessary for the development 
of an adequate record;
    It is further ordered, That the following corporate entities be 
designated as Respondents in this proceeding:
    EuroUSA Shipping, Inc., Tober Group, Inc., and Container 
Innovations, Inc.;
    It is further ordered, That the Commission's Bureau of Enforcement 
be designated a party to this proceeding;
    It is further ordered, That notice of this Order be published in 
the Federal

[[Page 29965]]

Register, and a copy be served on the parties of record;
    It is further ordered, That other persons having an interest in 
participating in this proceeding may file petitions for leave to 
intervene in accordance with Rule 72 of the Commission's Rules of 
Practice and Procedure, 46 CFR 502.72;
    It is further ordered, That all further notices, orders, or 
decisions issued by or on behalf of the Commission in this proceeding, 
including notice of the time and place of hearing or prehearing 
conference, shall be served on parties of record;
    It is further ordered, That all documents submitted by any party of 
record in this proceeding shall be directed to the Secretary, Federal 
Maritime Commission, Washington, DC 20573, in accordance with Rule 118 
of the Commission's Rules of Practice and Procedure, 46 CFR 502.118, 
and shall be served on parties of record; and
    It is further ordered, That in accordance with Rule 61 of the 
Commission's Rules of Practice and Procedure, the initial decision of 
the Administrative Law Judge shall be issued by May 11, 2007 and the 
final decision of the Commission shall be issued by September 11, 2007.

Bryant L. VanBrakle,
Secretary.
 [FR Doc. E6-7874 Filed 5-23-06; 8:45 am]
BILLING CODE 6730-01-P