Licensing, Registration, Financial Responsibility Requirements, and General Duties for Ocean Transportation Intermediaries, 62464-62468 [2019-24472]

Download as PDF 62464 Federal Register / Vol. 84, No. 221 / Friday, November 15, 2019 / Rules and Regulations community development, Natural resources, Penalties, and Reporting and recordkeeping requirements. PART 206—FEDERAL DISASTER ASSISTANCE Accordingly, the amendments to 44 CFR 206.110–120 of the interim final rule published on September 30, 2002 (67 FR 61446), with the corrections published on October 9, 2002 (67 FR 62896), the technical amendments to 206.110, 206.111, 206.112, 206.115, 206.117, and 206.120 published on April 3, 2009 (74 FR 15328), and the amendments to 206.117 published on November 7, 2013 (78 FR 66852), are adopted as a final rule without change. ■ Pete Gaynor, Acting Administrator, Federal Emergency Management Agency. [FR Doc. 2019–24762 Filed 11–14–19; 8:45 am] BILLING CODE 9111–23–P FEDERAL MARITIME COMMISSION 46 CFR Part 515 [Docket No. 18–11] RIN 3072–AC73 Licensing, Registration, Financial Responsibility Requirements, and General Duties for Ocean Transportation Intermediaries Federal Maritime Commission. Final rule. AGENCY: ACTION: The Federal Maritime Commission (Commission) amends its rules governing licensing, registration, financial responsibility requirements, and general duties for ocean transportation intermediaries (OTIs). The changes are mainly administrative and procedural. DATES: The rule is effective December 16, 2019. FOR FURTHER INFORMATION CONTACT: Sandra L. Kusumoto, Director, Bureau of Certification and Licensing. Address: 800 North Capitol Street, NW, Washington, DC 20573–0001. Phone: (202) 523–5787. Email: bcl@fmc.gov. SUPPLEMENTARY INFORMATION: SUMMARY: I. Introduction By Notice of Proposed Rulemaking (NPRM) published in the Federal Register on December 17, 2018, 83 FR 64502, the Commission proposed changes to 46 CFR part 515, which governs licensing, registration, financial responsibility requirements, and general duties for OTIs. The changes are VerDate Sep<11>2014 15:51 Nov 14, 2019 Jkt 250001 necessary because while implementing the extensive revisions to part 515 made in a November 5, 2015 final rule (80 FR 68722), the Commission has identified a number of regulatory provisions where clarification is warranted. The Commission invited comments on the NPRM, and later extended the comment period from January 12, 2019 to February 22, 2019, 84 FR 2125 (February 6, 2019). The Commission received three comments. After consideration of the comments and for the reasons stated below, the Commission is adopting all but one of the proposed amendments to part 515 without change. The exception is the proposed change to § 515.3, which the Commission is deferring while it considers whether this section of its rules will require further revision in light of the recent statutory changes made by the Frank LoBiondo Coast Guard Authorization Act of 2018, Public Law 115–282 (LoBiondo Act). II. Summary of NPRM The Commission’s proposed changes to its current rules were administrative or procedural in nature or would further reduce the regulatory burden on regulated entities. These proposed changes included: (1) Updating the title and scope of part 515 to include foreignbased non-vessel-operating common carrier (NVOCC) registrations; (2) clarifying the requirements for U.S. agents of foreign-based registered NVOCCs; (3) removing the optional paper application process and related reference to fee amounts; (4) adding language to clarify who can be the Qualifying Individual (QI) in partnerships between entities other than individuals; (5) updating and improving processes (renewal, bond, and termination); (6) adding clarifying language regarding the Commission’s direct review of applications in certain cases; (7) clarifying the information that sureties are to provide regarding claims against OTIs; (8) adding a requirement that NVOCCs submit their Form FMC– 1 prior to being issued a license; and (9) deleting the reference to the availability of the Regulated Person’s Index. None of the proposed changes would increase the burden to applicants, licensees, or foreign-based registered NVOCCs. III. Summary of Comments Roanoke Insurance Group Inc. (Roanoke), a provider of surety bonds to OTIs, stated that it endorses and supports the minor administrative modifications the Commission is proposing to part 515. Specifically, Roanoke stated that it believes ‘‘the closer integration between the Tariff and PO 00000 Frm 00034 Fmt 4700 Sfmt 4700 Licensing units during the licensing process, specifically adopting a rule that the [Commission] will not issue the license until the financial responsibility and tariff are in place, is beneficial to the industry.’’ Roanoke also had no objection to the proposed clarifications relating to information provided by financial responsibility providers on claims against OTIs. Distribution-Publications, Inc. (DPI), a tariff publisher, stated in its comments that it agrees ‘‘none of the proposed changes will increase the burden on applicants, licensees or registered foreign-based NVOCCs.’’ DPI supports the requirement for NVOCCs to submit the tariff registration form (Form FMC– 1) prior to being issued a license and agrees with the Commission that the rule will not add any additional burden to NVOCCs because ‘‘this will merely be a change to the timing of the [tariff publication] requirement.’’ The National Customs Brokers and Forwarders Association of America, Inc. (NCBFAA) is a national trade association representing the interests of freight forwarders, NVOCCs, and customs brokers in the ocean shipping industry. The NCBFAA stated that ‘‘the majority of the proposed changes are mainly administrative or procedural and do not raise substantive issues or impose new regulatory obligations on licensees.’’ The NCBFAA, however, raised a concern with the proposed changes to § 515.14, namely ‘‘that the duration of an OTI license would be for a period of one to four years, as contrasted with the current three-year initial license period.’’ The NCBFAA asserted that ‘‘[a] change of that nature would be both administratively burdensome to the Commission and unnecessarily burdensome to licensees.’’ We address this concern below. IV. Changes to Part 515 Accordingly, the Commission adopts the changes in the proposed rule as follows: A. Part 515 Title and Scope The final rule adds ‘‘Registration’’ to the part heading to reflect that foreignbased NVOCCs have the option of registering or becoming licensed. The rule also includes registration in the description of the scope of part 515 in § 515.1. B. U.S. Agents for Registered NVOCCs The NPRM proposed amending § 515.3 to clarify that licensed OTI agents for foreign-based NVOCCs can be either ocean freight forwarders (OFFs) or NVOCCs. In light of the changes E:\FR\FM\15NOR1.SGM 15NOR1 Federal Register / Vol. 84, No. 221 / Friday, November 15, 2019 / Rules and Regulations made by the LoBiondo Act to the licensing requirements in 46 U.S.C. 40901, the Commission is deferring making any changes to § 515.3 while it determines whether the LoBiondo Act requires more substantive revisions to the section. See NPRM: Regulatory Amendments Implementing the Frank LoBiondo Coast Guard Authorization Act of 2018, 84 FR 54087 (Oct. 9, 2019). C. Forms and Application Fees The final rule removes references in §§ 515.5 and 515.14 to renewal forms for licensed OTIs. These references are not needed because the data collection during the renewal process is the same as the data collection in the initial Form FMC–18. The final rule also amends §§ 515.5(b) and 515.12(a) to eliminate the paper application option for OTI licenses, based on the Commission’s experience since introducing the electronic filing option. The Commission has not received any requests for a waiver to file a paper application since the waiver requirement was implemented in November 2015. Finally, the final rule replaces an outdated reference to ‘‘Form FMC–18 Rev.’’ in §§ 515.5; 515.12 with ‘‘Form FMC–18.’’ D. Qualifying Individuals in Partnerships Between Entities The current qualifying individual (QI) requirements in § 515.11(b) regarding partnerships assume that the managing partners are individuals and thus eligible to be the QI for the partnership. In order to address the situation in which the managing partners are entities rather than individuals, clarifying language has been added indicating that an officer of a general partner entity may be the QI. E. Submission of Form FMC–1 as Prerequisite for License The final rule amends § 515.14(a) to require NVOCCs applying for a license to provide the Commission with a Form FMC–1 prior to the Commission issuing a license, which conforms to the current procedures for foreign-based NVOCCs that register with the Commission.1 Currently, a license is issued after approval by the Commission and receipt of proof of financial responsibility. Although NVOCCs are required under § 520.3 to submit a Form FMC–1 prior to the commencement of common carrier service pursuant to a published tariff, submission of the form is not 1 The final rule also makes minor clarifying changes to the corresponding requirement in § 515.19 for foreign-based NVOCCs registering with the Commission. VerDate Sep<11>2014 15:51 Nov 14, 2019 Jkt 250001 currently a prerequisite for receiving a license. Like the current requirement for submitting proof of financial responsibility, the final rule requires NVOCCs to submit a Form FMC–1 within 120 days of the conditional approval of their license application. Failure to submit the form within that time period will result in the NVOCC having to submit a new application to restart the license process. This change will ensure that NVOCCs comply with all requirements for commencing service in the U.S. trades in a timely manner. This change will add no additional burden to NVOCCs seeking licenses as they are already required to provide the Commission with a Form FMC–1; the final rule merely affects the timing of the submission of the form. Because the Form FMC–1 requirements mirror the existing requirements for submitting proof of financial responsibility, the final rule combines the latter requirement from § 515.25 with the Form FMC–1 requirements being added to § 515.14(a). F. License Renewal Process The final rule makes a number of changes to § 515.14 to improve and clarify the license renewal process. In addition to some minor clarifying language changes, the final rule changes the initial license period before renewal from three years to a period of not less than one year and not greater than four years. Allowing for a range in the initial period would provide flexibility and account for the varying time periods between submission of an application and issuance of a license due to issues that may arise during the review process or delayed submission of necessary documentation (e.g., proof of financial responsibility). As noted above, the NCBFAA has concerns about this change, stating that the group assumes that the Commission did not intend for the proposed rule to mean that some licenses would be issued for a period of less than three years, and, instead, that the Commission was trying to ‘‘rationalize the process by which renewal obligations were set.’’ The NCBFAA argues that issuing licenses for periods of less than three years would be burdensome for the Commission and licensees and requests that the Commission clarify the proposal. The NCBFAA is correct that the change to § 515.14(c) is intended to govern how renewal obligations are set. Specifically, the purpose is to enable the Bureau of Certification and Licensing to determine license renewal dates by the license number rather than the initial issuance date of the license in order to PO 00000 Frm 00035 Fmt 4700 Sfmt 4700 62465 evenly distribute license renewals over a 36-month period. An even distribution of license renewals will ensure an effective and efficient renewal process for the increasing OTI licensee population by preventing the potential bunching of license renewals in particular months or years. Such bunching could occur if the initial issuance date of a license was the basis for the renewal, potentially delaying the review and processing of renewals during more populous months or years. Spreading out the renewal dates, however, necessitates establishing a range of initial license periods for OTIs; otherwise, the initial license period could conflict with the renewal date (e.g., if an OTI had a three-year initial license period but the renewal date was in four years). Although we understand NCBFAA’s concern, the Commission respectfully disagrees with the assertion that this change will be burdensome for the Commission or licensees. As explained above, the purpose of the change is to reduce the burden on the Commission and to provide the industry with efficient and timely renewal processing. Moreover, the change only affects the initial license period, which will be one to four years; all subsequent renewal periods will continue to be three years. And although some OTIs will have initial license periods of one to two years, others will have an initial period of three to four years, i.e., longer than the current three-year period. For those OTIs with a shorter initial license period, the Commission expects the renewal burden to be lower than for OTIs with longer initial license periods, given that the shorter duration will decrease the likelihood of any changes needing to be made during the renewal. Overall, the Commission believes that the change will be beneficial to both OTI licensees and the Commission in that it will ensure the timely processing of renewals. The final rule would also change the deadline for completing the renewal process. Currently, § 515.14 requires licensed OTIs to complete the renewal process no later than 60 days prior to the renewal date. The final rule would change the deadline to the renewal date itself. This change would reduce the burden on licensed OTIs by allowing them additional time to complete the renewal process. G. Application After Revocation or Denial The final rule expands the types of applications subject to direct Commission review to include applicants employing the same officers, E:\FR\FM\15NOR1.SGM 15NOR1 62466 Federal Register / Vol. 84, No. 221 / Friday, November 15, 2019 / Rules and Regulations managers, or members of an OTI whose license was revoked or denied within the previous three years and where the Commission determined that the OTI was not qualified to provide OTI services. The applications currently subject to direct Commission review are limited to those submitted by an OTI whose license was previously denied or revoked, or those from another OTI that employs the same QI or is controlled by persons whose conduct formed the basis for the previous revocation or denial. The Commission believes that an OTI employing an officer, manager, or member of another OTI that previously had its license denied or revoked raises the same concerns as an OTI employing the same QI and has concluded that direct review of applications by such OTIs is warranted. The final rule also adds clarifying language to more clearly reflect that denial of an application under § 515.18 is final and not subject to the hearing procedures in § 515.17. H. Reporting Changes in Trade Names The final rule clarifies in § 515.20 that a change in a licensee’s name includes adding or deleting a trade name relating to its OTI services. OTIs must seek prior approval from the Commission before making such changes. I. Proof of Financial Responsibility The final rule clarifies in § 515.22 that OTIs may submit proof of financial responsibility via email, and, in § 515.26 that the Commission may transmit notices of termination of financial instruments via email. Allowing transmission of this information by email reduces delays and the burdens on both OTIs and the Commission. The final rule also clarifies that in addition to the principal’s name, trade name, and address, the financial responsibility instrument must clearly identify the state of incorporation or formation, and the printed name and title of the signatory. J. Claims Against an OTI The final rule clarifies that financial responsibility providers must include a registered foreign-based NVOCC’s organization number when notifying the Commission of claims against that NVOCC under § 515.23(c). The current rule requires that financial responsibility providers include an OTI’s license number, but registered foreign-based NVOCCs do not have license numbers. This change will ensure that the organization number for registered NVOCCs will be included in claim notifications to the Commission. Notwithstanding the ambiguity in the VerDate Sep<11>2014 15:51 Nov 14, 2019 Jkt 250001 rule, financial responsibility providers currently provide this information with OTI claim information; thus, this change will not result in any additional burdens for financial responsibility providers. K. Regulated Persons Index The final rule deletes § 515.34, which references the availability of the Regulated Persons Index (RPI) on the Commission website. The Commission has determined that because the RPI is available on the website, and the Commission advertises that fact, this section is no longer helpful or necessary. V. Rulemaking Analyses and Notices Congressional Review Act The rule is not a ‘‘major rule’’ as defined by the Congressional Review Act, codified at 5 U.S.C. 801 et seq. The rule will not result in: (1) An annual effect on the economy of $100,000,000 or more; (2) a major increase in costs or prices; or (3) significant adverse effects on competition, employment, investment, productivity, innovation, or the ability of United States-based companies to compete with foreignbased companies. 5 U.S.C. 804(2). Regulatory Flexibility Act The Regulatory Flexibility Act (codified as amended at 5 U.S.C. 601– 612) provides that whenever an agency promulgates a final rule after being required to publish a proposed rulemaking under the Administrative Procedure Act (APA) (5 U.S.C. 553), the agency must prepare and make available a final regulatory flexibility analysis (FRFA) describing the impact of the rule on small entities, unless the head of the agency certifies that the rulemaking will not have a significant economic impact on a substantial number of small entities. 5 U.S.C. 604–605. Based on the analysis below, the Chairman of the Federal Maritime Commission certifies that this final rule will not have a significant economic impact on a substantial number of small entities. The Commission recognizes that the majority of businesses affected by these rules (OTIs) qualify as small entities under the guidelines of the Small Business Administration. The final rule will not, however, result in a significant economic impact on these businesses. No material changes are being proposed; the proposed rule would make minor changes to the licensing, registration, and financial responsibility processes. Most of the changes will have little to no economic impact on OTIs, while some of the changes, e.g., changes to the deadline for renewing licenses, PO 00000 Frm 00036 Fmt 4700 Sfmt 4700 expressly allowing email transmission of documents between OTIs and the Commission, are expected to reduce burdens on OTIs. Notwithstanding the concerns of the NCBFAA regarding the changes to the initial license period, we conclude that, as discussed above, the change will not meaningfully increase the burden on licensees. Paperwork Reduction Act The Paperwork Reduction Act of 1995 (44 U.S.C. 3501–3521) requires an agency to seek and receive approval from the Office of Management and Budget (OMB) before collecting information from the public. 44 U.S.C. 3507. The information collection requirements for part 515 are currently authorized under OMB Control Number 3072–0018: 46 CFR 515- Licensing, Financial Responsibility Requirements, and General Duties for Ocean Transportation Intermediaries and Related Forms. The final rule will result in very minor changes to information collected by the Commission. Specifically, the final rule makes minor adjustments to information provided to the Commission and the timing of such submissions, as well as expressly allowing the submission of certain information by email. No changes are being made, however, to any of the forms in part 515, and none of the changes are expected to affect the burden hours associated with the information collection. Although the Commission initially concluded in the NPRM that these changes did not warrant revisions to the information collection associated with part 515, the Commission subsequently determined to submit the changes to OMB for approval. Notice of the revised information collection was published in the Federal Register; no comments were received. See 84 FR 25274 (May 31, 2019) (60-day notice); 84 FR 50036 (Sep. 24, 2019) (30-day notice). National Environmental Policy Act The Commission’s regulations categorically exclude certain rulemakings from any requirement to prepare an environmental assessment or an environmental impact statement because they do not increase or decrease air, water or noise pollution or the use of fossil fuels, recyclables, or energy. 46 CFR 504.4. This final rule relates to OTI licensing and financial responsibility requirements and therefore falls within the categorical exclusions for matters related to the issuance, modification, denial and revocation of ocean transportation intermediary licenses, and matters related to the receipt of E:\FR\FM\15NOR1.SGM 15NOR1 Federal Register / Vol. 84, No. 221 / Friday, November 15, 2019 / Rules and Regulations surety bonds from OTIs. § 504.4(a)(1), (3). Therefore, no environmental assessment or environmental impact statement is required. 4. Amend § 515.5 by revising paragraphs (a), (b), and (c)(2) to read as follows: ■ § 515.5 Executive Order 12988 (Civil Justice Reform) This proposed rule meets applicable standards in E.O. 12988 titled, ‘‘Civil Justice Reform,’’ to minimize litigation, eliminate ambiguity, and reduce burden. Regulation Identifier Number The Commission assigns a regulation identifier number (RIN) to each regulatory action listed in the Unified Agenda of Federal Regulatory and Deregulatory Actions (Unified Agenda). The Regulatory Information Service Center publishes the Unified Agenda in April and October of each year. You may use the RIN contained in the heading at the beginning of this document to find this action in the Unified Agenda, available at http:// www.reginfo.gov/public/do/ eAgendaMain. List of Subjects in 46 CFR Part 515 Forms and fees. (a) Forms. License Application Form FMC–18 is found at the Commission’s website www.fmc.gov for completion on-line by applicants and licensees. Foreign-based Unlicensed NVOCC Registration/Renewal Form FMC–65 and financial responsibility Forms FMC–48, FMC–67, FMC–68, FMC–69 may be obtained from the Commission’s website at www.fmc.gov, from the Director, Bureau of Certification and Licensing, Federal Maritime Commission, Washington, DC 20573, or from any of the Commission’s Area Representatives. (b) Filing of license application forms. All application forms are to be filed electronically. (c) * * * (2) Fees under this part shall be as follows: (i) Application for new OTI license as required by § 515.12(a): Filing $250. (ii) Application for change to OTI license or license transfer as required by § 515.20(a) and (b): Filing $125. Freight, Freight forwarders, Maritime carriers, Reporting and recordkeeping. requirements. ■ For the reasons stated in the supplementary information, 46 CFR part 515 is amended as follows: § 515.11 Basic requirements for licensing; eligibility. PART 515—LICENSING, REGISTRATION, FINANCIAL RESPONSIBILITY REQUIREMENTS, AND GENERAL DUTIES FOR OCEAN TRANSPORTATION INTERMEDIARIES 1. The authority citation for part 515 continues to read as follows: ■ Authority: 5 U.S.C. 553; 31 U.S.C. 9701; 46 U.S.C. 305, 40102, 40104, 40501–40503, 40901–40904, 41101–41109, 41301–41302, 41305–41307; Pub. L. 105–383, 112 Stat. 3411; 21 U.S.C. 862. 2. Revise the part heading to read as set forth above. ■ 3. Amend § 515.1 by revising the first sentence of paragraph (a) to read as follows: ■ § 515.1 Scope. (a) This part sets forth regulations providing for the licensing and registration as ocean transportation intermediaries of persons who wish to carry on the business of providing intermediary services, including the grounds and procedures for revocation and suspension of licenses and registrations. * * * * * * * * VerDate Sep<11>2014 15:51 Nov 14, 2019 Jkt 250001 5. Amend § 515.11 by revising paragraph (b)(2) to read as follows: * * * * * (b) * * * (2) Partnership. At least one of the active managing partners, unless the partners are entities, such as corporations, in which case an officer, member, or manager of one of the entities as long as the entity is a general partner. * * * * * ■ 6. Amend § 515.12 by revising the first sentence of paragraph (a)(1) to read as follows: § 515.12 Application for license. (a) * * * (1) Any person who wishes to obtain a license to operate as an ocean transportation intermediary shall submit electronically a completed application Form FMC–18 (Application for a License as an Ocean Transportation Intermediary) in accordance with the automated FMC–18 filing system and corresponding instructions. * * * * * * * * ■ 7. Amend § 515.14 by revising paragraphs (a), (c), (d)(1), and the first sentence of paragraph (d)(2) to read as follows: PO 00000 Frm 00037 Fmt 4700 Sfmt 4700 § 515.14 license. 62467 Issuance, renewal, and use of (a) Qualification necessary for issuance. (1) The Commission will issue a license if it determines, as a result of its investigation, that the applicant possesses the necessary experience and character to render ocean transportation intermediary services; has filed the required bond, insurance or other surety; and has electronically submitted Form FMC–1 pursuant to § 520.3 if approved to offer NVOCC service. (2) If, within 120 days of notification of conditional approval for licensing by the Commission, proof of financial responsibility and, in the case of an NVOCC, the Form FMC–1 is not received, the conditional approval of the application will be invalid. Applicants whose applications/approvals have become invalid may submit a new Form FMC–18, together with the required filing fee, at any time. * * * * * (c) Duration of license. Licenses shall be issued for an initial period of not less than one year and not greater than four years as determined by the license number and published on the Commission website. Thereafter, licenses will be renewed for sequential three-year periods upon successful completion of the renewal process in paragraph (d) of this section. (d) * * * (1) The licensee shall submit the renewal electronically to the Director of the Bureau of Certification and Licensing (BCL) no later than the renewal date as published on the Commission website. The renewal date (month/day) will remain the same for subsequent renewals irrespective of the date on which the license renewal is submitted or when the renewal is accepted by the Commission, unless another renewal date is assigned by the Commission. (2) Where information identified in an OTI’s license renewal process is changed from that set out in its current Form FMC–18 and requires Commission approval pursuant to § 515.20, the licensee must promptly submit a request for such approval on Form FMC–18 together with the required filing fee. * * * * * * * * ■ 8. Revise § 515.18 to read as follows: § 515.18 denial. Application after revocation or Whenever a license has been revoked or an application has been denied because the Commission has found the licensee or applicant to be not qualified to render ocean transportation E:\FR\FM\15NOR1.SGM 15NOR1 62468 Federal Register / Vol. 84, No. 221 / Friday, November 15, 2019 / Rules and Regulations intermediary services, any further application within 3 years of the Commission’s notice of revocation or denial, made by such former licensee or applicant or by another applicant employing the same qualifying individual, officer(s), member(s), manager(s) or controlled by persons on whose conduct the Commission based its determination for revocation or denial, shall be reviewed directly by the Commission. If the Commission denies the application, such denial is final and not subject to the hearing procedures described in §§ 515.15 and 515.17. ■ 9. Amend § 515.19 by revising paragraphs (c), (e), and (g)(1)(viii) to read as follows: § 515.19 Registration of foreign-based unlicensed NVOCC. * * * * * (c) Registrations are complete upon receipt of a registration form which meets the requirements of this section, evidence of financial responsibility pursuant to § 515.21, and Form FMC–1 pursuant to § 520.3. * * * * * (e) A tariff shall not be published and NVOCC service shall not commence until the Commission receives valid proof of financial responsibility from the registrant and a Form FMC–1 has been submitted. * * * * * (g) * * * (1) * * * (viii) Failure to designate and maintain a person in the United States as legal agent for the receipt of judicial and administrative process, including subpoenas, as required by § 515.24. * * * * * ■ 10. Amend § 515.20 by revising paragraph (a)(4) to read as follows: § 515.20 Changes in organization. (a) * * * (4) Any change in a licensee’s name, including adding or deleting a trade name relating to its OTI services; or * * * * * ■ 11. Amend § 515.22 by revising paragraph (e) to read as follows: § 515.22 Proof of financial responsibility. * * * * * (e) All forms and documents for establishing financial responsibility of ocean transportation intermediaries prescribed in this section shall be submitted to the Director, Bureau of Certification and Licensing, via email to bcl@fmc.gov. Such forms and documents must clearly identify the principal’s name; trade name, if any; address; the state of incorporation/ VerDate Sep<11>2014 15:51 Nov 14, 2019 Jkt 250001 formation; and the printed name and title of the signatory. ■ 12. Amend § 515.23 by revising paragraph (c)(3) to read as follows: § 515.23 Claims against an ocean transportation intermediary. * * * * * (c) * * * (3) Notices required by this section shall include the name of the claimant, name of the court and case number assigned, and the name and license or organization number of the OTI involved. Such notices may include or attach other information relevant to the claim. * * * * * ■ 13. Amend § 515.25 by revising paragraph (a)(1) to read as follows: § 515.25 Filing of proof of financial responsibility. (a) * * * (1) Licenses. Upon notification by the Commission that an applicant has been conditionally approved for licensing, the applicant shall file with the Director of the Commission’s Bureau of Certification and Licensing, proof of financial responsibility in the form and amount prescribed in § 515.21. No license will be issued until the Commission is in receipt of valid proof of financial responsibility. * * * * * ■ 14. Revise § 515.26 to read as follows: § 515.26 Termination of financial responsibility. No license or registration shall remain in effect unless valid proof of a financial responsibility instrument is maintained on file with the Commission. Upon receipt of notice of termination of such financial responsibility, the Commission shall notify the concerned licensee, registrant, or registrant’s legal agent in the United States, by email, mail, courier, or other method reasonably calculated to provide actual notice, at its last known email address or address, that the Commission shall, without hearing or other proceeding, revoke the license or terminate the registration as of the termination date of the financial responsibility instrument, unless the licensee or registrant shall have submitted valid replacement proof of financial responsibility before such termination date. Replacement financial responsibility must bear an effective date no later than the termination date of the expiring financial responsibility instrument. § 515.34 ■ [Removed] 15. Remove § 515.34. PO 00000 Frm 00038 Fmt 4700 Sfmt 4700 By the Commission. Rachel Dickon, Secretary. [FR Doc. 2019–24472 Filed 11–14–19; 8:45 am] BILLING CODE 6731–AA–P DEPARTMENT OF LABOR 48 CFR Part 2902 [DOL Docket No. DOL–2019–0002] RIN 1291–AA42 Department of Labor Acquisition Regulations: Definitions for Head of Agency, Head of Contracting Activity, and Senior Procurement Executive Office of the Assistant Secretary for Administration and Management, Department of Labor. ACTION: Final rule; confirmation of effective date. AGENCY: The Department of Labor (Department) is confirming the effective date of its direct final rule (DFR) amending three definitions in the Department of Labor Acquisition Regulation (DOLAR). These changes provide the Secretary of Labor with greater flexibility and a streamlined procedure to delegate procurement authority and appoint procurement officials. In the Department’s August 29, 2019 DFR, the Department stated that the DFR would become effective on October 28, 2019, if the Department received no significant adverse comments in response to the DFR. The Department did not receive any comments in response. DATES: This document confirms that the effective date of the DFR published on August 29, 2019 (84 FR 45434) is October 28, 2019. For purposes of judicial review, the Department considers the date of publication of this document as the date of promulgation of the DFR. FOR FURTHER INFORMATION CONTACT: Press inquiries: Ms. Megan P. Sweeney, Office of Public Affairs, Room No. S– 2514, U.S. Department of Labor, 200 Constitution Ave, NW, Washington, DC 20210; telephone: (202) 693–4676; email: sweeney.megan.p@dol.gov. General information: Herman J. Narcho, U.S. Department of Labor, Office of the Assistant Secretary for Administration and Management, Office of the Chief Procurement Officer, 200 Constitution Avenue NW, Room N– 5305, Washington, DC 20210; telephone (202) 693–7171 (this is not a toll-free number). SUMMARY: SUPPLEMENTARY INFORMATION: E:\FR\FM\15NOR1.SGM 15NOR1

Agencies

[Federal Register Volume 84, Number 221 (Friday, November 15, 2019)]
[Rules and Regulations]
[Pages 62464-62468]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-24472]


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FEDERAL MARITIME COMMISSION

46 CFR Part 515

[Docket No. 18-11]
RIN 3072-AC73


Licensing, Registration, Financial Responsibility Requirements, 
and General Duties for Ocean Transportation Intermediaries

AGENCY: Federal Maritime Commission.

ACTION: Final rule.

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SUMMARY: The Federal Maritime Commission (Commission) amends its rules 
governing licensing, registration, financial responsibility 
requirements, and general duties for ocean transportation 
intermediaries (OTIs). The changes are mainly administrative and 
procedural.

DATES: The rule is effective December 16, 2019.

FOR FURTHER INFORMATION CONTACT: Sandra L. Kusumoto, Director, Bureau 
of Certification and Licensing. Address: 800 North Capitol Street, NW, 
Washington, DC 20573-0001. Phone: (202) 523-5787. Email: [email protected].

SUPPLEMENTARY INFORMATION: 

I. Introduction

    By Notice of Proposed Rulemaking (NPRM) published in the Federal 
Register on December 17, 2018, 83 FR 64502, the Commission proposed 
changes to 46 CFR part 515, which governs licensing, registration, 
financial responsibility requirements, and general duties for OTIs. The 
changes are necessary because while implementing the extensive 
revisions to part 515 made in a November 5, 2015 final rule (80 FR 
68722), the Commission has identified a number of regulatory provisions 
where clarification is warranted.
    The Commission invited comments on the NPRM, and later extended the 
comment period from January 12, 2019 to February 22, 2019, 84 FR 2125 
(February 6, 2019). The Commission received three comments. After 
consideration of the comments and for the reasons stated below, the 
Commission is adopting all but one of the proposed amendments to part 
515 without change. The exception is the proposed change to Sec.  
515.3, which the Commission is deferring while it considers whether 
this section of its rules will require further revision in light of the 
recent statutory changes made by the Frank LoBiondo Coast Guard 
Authorization Act of 2018, Public Law 115-282 (LoBiondo Act).

II. Summary of NPRM

    The Commission's proposed changes to its current rules were 
administrative or procedural in nature or would further reduce the 
regulatory burden on regulated entities. These proposed changes 
included: (1) Updating the title and scope of part 515 to include 
foreign-based non-vessel-operating common carrier (NVOCC) 
registrations; (2) clarifying the requirements for U.S. agents of 
foreign-based registered NVOCCs; (3) removing the optional paper 
application process and related reference to fee amounts; (4) adding 
language to clarify who can be the Qualifying Individual (QI) in 
partnerships between entities other than individuals; (5) updating and 
improving processes (renewal, bond, and termination); (6) adding 
clarifying language regarding the Commission's direct review of 
applications in certain cases; (7) clarifying the information that 
sureties are to provide regarding claims against OTIs; (8) adding a 
requirement that NVOCCs submit their Form FMC-1 prior to being issued a 
license; and (9) deleting the reference to the availability of the 
Regulated Person's Index. None of the proposed changes would increase 
the burden to applicants, licensees, or foreign-based registered 
NVOCCs.

III. Summary of Comments

    Roanoke Insurance Group Inc. (Roanoke), a provider of surety bonds 
to OTIs, stated that it endorses and supports the minor administrative 
modifications the Commission is proposing to part 515. Specifically, 
Roanoke stated that it believes ``the closer integration between the 
Tariff and Licensing units during the licensing process, specifically 
adopting a rule that the [Commission] will not issue the license until 
the financial responsibility and tariff are in place, is beneficial to 
the industry.'' Roanoke also had no objection to the proposed 
clarifications relating to information provided by financial 
responsibility providers on claims against OTIs.
    Distribution-Publications, Inc. (DPI), a tariff publisher, stated 
in its comments that it agrees ``none of the proposed changes will 
increase the burden on applicants, licensees or registered foreign-
based NVOCCs.'' DPI supports the requirement for NVOCCs to submit the 
tariff registration form (Form FMC-1) prior to being issued a license 
and agrees with the Commission that the rule will not add any 
additional burden to NVOCCs because ``this will merely be a change to 
the timing of the [tariff publication] requirement.''
    The National Customs Brokers and Forwarders Association of America, 
Inc. (NCBFAA) is a national trade association representing the 
interests of freight forwarders, NVOCCs, and customs brokers in the 
ocean shipping industry. The NCBFAA stated that ``the majority of the 
proposed changes are mainly administrative or procedural and do not 
raise substantive issues or impose new regulatory obligations on 
licensees.'' The NCBFAA, however, raised a concern with the proposed 
changes to Sec.  515.14, namely ``that the duration of an OTI license 
would be for a period of one to four years, as contrasted with the 
current three-year initial license period.'' The NCBFAA asserted that 
``[a] change of that nature would be both administratively burdensome 
to the Commission and unnecessarily burdensome to licensees.'' We 
address this concern below.

IV. Changes to Part 515

    Accordingly, the Commission adopts the changes in the proposed rule 
as follows:

A. Part 515 Title and Scope

    The final rule adds ``Registration'' to the part heading to reflect 
that foreign-based NVOCCs have the option of registering or becoming 
licensed. The rule also includes registration in the description of the 
scope of part 515 in Sec.  515.1.

B. U.S. Agents for Registered NVOCCs

    The NPRM proposed amending Sec.  515.3 to clarify that licensed OTI 
agents for foreign-based NVOCCs can be either ocean freight forwarders 
(OFFs) or NVOCCs. In light of the changes

[[Page 62465]]

made by the LoBiondo Act to the licensing requirements in 46 U.S.C. 
40901, the Commission is deferring making any changes to Sec.  515.3 
while it determines whether the LoBiondo Act requires more substantive 
revisions to the section. See NPRM: Regulatory Amendments Implementing 
the Frank LoBiondo Coast Guard Authorization Act of 2018, 84 FR 54087 
(Oct. 9, 2019).

C. Forms and Application Fees

    The final rule removes references in Sec. Sec.  515.5 and 515.14 to 
renewal forms for licensed OTIs. These references are not needed 
because the data collection during the renewal process is the same as 
the data collection in the initial Form FMC-18.
    The final rule also amends Sec. Sec.  515.5(b) and 515.12(a) to 
eliminate the paper application option for OTI licenses, based on the 
Commission's experience since introducing the electronic filing option. 
The Commission has not received any requests for a waiver to file a 
paper application since the waiver requirement was implemented in 
November 2015.
    Finally, the final rule replaces an outdated reference to ``Form 
FMC-18 Rev.'' in Sec. Sec.  515.5; 515.12 with ``Form FMC-18.''

D. Qualifying Individuals in Partnerships Between Entities

    The current qualifying individual (QI) requirements in Sec.  
515.11(b) regarding partnerships assume that the managing partners are 
individuals and thus eligible to be the QI for the partnership. In 
order to address the situation in which the managing partners are 
entities rather than individuals, clarifying language has been added 
indicating that an officer of a general partner entity may be the QI.

E. Submission of Form FMC-1 as Prerequisite for License

    The final rule amends Sec.  515.14(a) to require NVOCCs applying 
for a license to provide the Commission with a Form FMC-1 prior to the 
Commission issuing a license, which conforms to the current procedures 
for foreign-based NVOCCs that register with the Commission.\1\ 
Currently, a license is issued after approval by the Commission and 
receipt of proof of financial responsibility. Although NVOCCs are 
required under Sec.  520.3 to submit a Form FMC-1 prior to the 
commencement of common carrier service pursuant to a published tariff, 
submission of the form is not currently a prerequisite for receiving a 
license. Like the current requirement for submitting proof of financial 
responsibility, the final rule requires NVOCCs to submit a Form FMC-1 
within 120 days of the conditional approval of their license 
application. Failure to submit the form within that time period will 
result in the NVOCC having to submit a new application to restart the 
license process. This change will ensure that NVOCCs comply with all 
requirements for commencing service in the U.S. trades in a timely 
manner. This change will add no additional burden to NVOCCs seeking 
licenses as they are already required to provide the Commission with a 
Form FMC-1; the final rule merely affects the timing of the submission 
of the form.
---------------------------------------------------------------------------

    \1\ The final rule also makes minor clarifying changes to the 
corresponding requirement in Sec.  515.19 for foreign-based NVOCCs 
registering with the Commission.
---------------------------------------------------------------------------

    Because the Form FMC-1 requirements mirror the existing 
requirements for submitting proof of financial responsibility, the 
final rule combines the latter requirement from Sec.  515.25 with the 
Form FMC-1 requirements being added to Sec.  515.14(a).

F. License Renewal Process

    The final rule makes a number of changes to Sec.  515.14 to improve 
and clarify the license renewal process. In addition to some minor 
clarifying language changes, the final rule changes the initial license 
period before renewal from three years to a period of not less than one 
year and not greater than four years. Allowing for a range in the 
initial period would provide flexibility and account for the varying 
time periods between submission of an application and issuance of a 
license due to issues that may arise during the review process or 
delayed submission of necessary documentation (e.g., proof of financial 
responsibility).
    As noted above, the NCBFAA has concerns about this change, stating 
that the group assumes that the Commission did not intend for the 
proposed rule to mean that some licenses would be issued for a period 
of less than three years, and, instead, that the Commission was trying 
to ``rationalize the process by which renewal obligations were set.'' 
The NCBFAA argues that issuing licenses for periods of less than three 
years would be burdensome for the Commission and licensees and requests 
that the Commission clarify the proposal.
    The NCBFAA is correct that the change to Sec.  515.14(c) is 
intended to govern how renewal obligations are set. Specifically, the 
purpose is to enable the Bureau of Certification and Licensing to 
determine license renewal dates by the license number rather than the 
initial issuance date of the license in order to evenly distribute 
license renewals over a 36-month period. An even distribution of 
license renewals will ensure an effective and efficient renewal process 
for the increasing OTI licensee population by preventing the potential 
bunching of license renewals in particular months or years. Such 
bunching could occur if the initial issuance date of a license was the 
basis for the renewal, potentially delaying the review and processing 
of renewals during more populous months or years.
    Spreading out the renewal dates, however, necessitates establishing 
a range of initial license periods for OTIs; otherwise, the initial 
license period could conflict with the renewal date (e.g., if an OTI 
had a three-year initial license period but the renewal date was in 
four years).
    Although we understand NCBFAA's concern, the Commission 
respectfully disagrees with the assertion that this change will be 
burdensome for the Commission or licensees. As explained above, the 
purpose of the change is to reduce the burden on the Commission and to 
provide the industry with efficient and timely renewal processing. 
Moreover, the change only affects the initial license period, which 
will be one to four years; all subsequent renewal periods will continue 
to be three years. And although some OTIs will have initial license 
periods of one to two years, others will have an initial period of 
three to four years, i.e., longer than the current three-year period. 
For those OTIs with a shorter initial license period, the Commission 
expects the renewal burden to be lower than for OTIs with longer 
initial license periods, given that the shorter duration will decrease 
the likelihood of any changes needing to be made during the renewal. 
Overall, the Commission believes that the change will be beneficial to 
both OTI licensees and the Commission in that it will ensure the timely 
processing of renewals.
    The final rule would also change the deadline for completing the 
renewal process. Currently, Sec.  515.14 requires licensed OTIs to 
complete the renewal process no later than 60 days prior to the renewal 
date. The final rule would change the deadline to the renewal date 
itself. This change would reduce the burden on licensed OTIs by 
allowing them additional time to complete the renewal process.

G. Application After Revocation or Denial

    The final rule expands the types of applications subject to direct 
Commission review to include applicants employing the same officers,

[[Page 62466]]

managers, or members of an OTI whose license was revoked or denied 
within the previous three years and where the Commission determined 
that the OTI was not qualified to provide OTI services. The 
applications currently subject to direct Commission review are limited 
to those submitted by an OTI whose license was previously denied or 
revoked, or those from another OTI that employs the same QI or is 
controlled by persons whose conduct formed the basis for the previous 
revocation or denial. The Commission believes that an OTI employing an 
officer, manager, or member of another OTI that previously had its 
license denied or revoked raises the same concerns as an OTI employing 
the same QI and has concluded that direct review of applications by 
such OTIs is warranted.
    The final rule also adds clarifying language to more clearly 
reflect that denial of an application under Sec.  515.18 is final and 
not subject to the hearing procedures in Sec.  515.17.

H. Reporting Changes in Trade Names

    The final rule clarifies in Sec.  515.20 that a change in a 
licensee's name includes adding or deleting a trade name relating to 
its OTI services. OTIs must seek prior approval from the Commission 
before making such changes.

I. Proof of Financial Responsibility

    The final rule clarifies in Sec.  515.22 that OTIs may submit proof 
of financial responsibility via email, and, in Sec.  515.26 that the 
Commission may transmit notices of termination of financial instruments 
via email. Allowing transmission of this information by email reduces 
delays and the burdens on both OTIs and the Commission.
    The final rule also clarifies that in addition to the principal's 
name, trade name, and address, the financial responsibility instrument 
must clearly identify the state of incorporation or formation, and the 
printed name and title of the signatory.

J. Claims Against an OTI

    The final rule clarifies that financial responsibility providers 
must include a registered foreign-based NVOCC's organization number 
when notifying the Commission of claims against that NVOCC under Sec.  
515.23(c). The current rule requires that financial responsibility 
providers include an OTI's license number, but registered foreign-based 
NVOCCs do not have license numbers. This change will ensure that the 
organization number for registered NVOCCs will be included in claim 
notifications to the Commission. Notwithstanding the ambiguity in the 
rule, financial responsibility providers currently provide this 
information with OTI claim information; thus, this change will not 
result in any additional burdens for financial responsibility 
providers.

K. Regulated Persons Index

    The final rule deletes Sec.  515.34, which references the 
availability of the Regulated Persons Index (RPI) on the Commission 
website. The Commission has determined that because the RPI is 
available on the website, and the Commission advertises that fact, this 
section is no longer helpful or necessary.

V. Rulemaking Analyses and Notices

Congressional Review Act

    The rule is not a ``major rule'' as defined by the Congressional 
Review Act, codified at 5 U.S.C. 801 et seq. The rule will not result 
in: (1) An annual effect on the economy of $100,000,000 or more; (2) a 
major increase in costs or prices; or (3) significant adverse effects 
on competition, employment, investment, productivity, innovation, or 
the ability of United States-based companies to compete with foreign-
based companies. 5 U.S.C. 804(2).

Regulatory Flexibility Act

    The Regulatory Flexibility Act (codified as amended at 5 U.S.C. 
601-612) provides that whenever an agency promulgates a final rule 
after being required to publish a proposed rulemaking under the 
Administrative Procedure Act (APA) (5 U.S.C. 553), the agency must 
prepare and make available a final regulatory flexibility analysis 
(FRFA) describing the impact of the rule on small entities, unless the 
head of the agency certifies that the rulemaking will not have a 
significant economic impact on a substantial number of small entities. 
5 U.S.C. 604-605. Based on the analysis below, the Chairman of the 
Federal Maritime Commission certifies that this final rule will not 
have a significant economic impact on a substantial number of small 
entities.
    The Commission recognizes that the majority of businesses affected 
by these rules (OTIs) qualify as small entities under the guidelines of 
the Small Business Administration. The final rule will not, however, 
result in a significant economic impact on these businesses. No 
material changes are being proposed; the proposed rule would make minor 
changes to the licensing, registration, and financial responsibility 
processes. Most of the changes will have little to no economic impact 
on OTIs, while some of the changes, e.g., changes to the deadline for 
renewing licenses, expressly allowing email transmission of documents 
between OTIs and the Commission, are expected to reduce burdens on 
OTIs. Notwithstanding the concerns of the NCBFAA regarding the changes 
to the initial license period, we conclude that, as discussed above, 
the change will not meaningfully increase the burden on licensees.

Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521) requires 
an agency to seek and receive approval from the Office of Management 
and Budget (OMB) before collecting information from the public. 44 
U.S.C. 3507.
    The information collection requirements for part 515 are currently 
authorized under OMB Control Number 3072-0018: 46 CFR 515- Licensing, 
Financial Responsibility Requirements, and General Duties for Ocean 
Transportation Intermediaries and Related Forms. The final rule will 
result in very minor changes to information collected by the 
Commission. Specifically, the final rule makes minor adjustments to 
information provided to the Commission and the timing of such 
submissions, as well as expressly allowing the submission of certain 
information by email. No changes are being made, however, to any of the 
forms in part 515, and none of the changes are expected to affect the 
burden hours associated with the information collection.
    Although the Commission initially concluded in the NPRM that these 
changes did not warrant revisions to the information collection 
associated with part 515, the Commission subsequently determined to 
submit the changes to OMB for approval. Notice of the revised 
information collection was published in the Federal Register; no 
comments were received. See 84 FR 25274 (May 31, 2019) (60-day notice); 
84 FR 50036 (Sep. 24, 2019) (30-day notice).

National Environmental Policy Act

    The Commission's regulations categorically exclude certain 
rulemakings from any requirement to prepare an environmental assessment 
or an environmental impact statement because they do not increase or 
decrease air, water or noise pollution or the use of fossil fuels, 
recyclables, or energy. 46 CFR 504.4. This final rule relates to OTI 
licensing and financial responsibility requirements and therefore falls 
within the categorical exclusions for matters related to the issuance, 
modification, denial and revocation of ocean transportation 
intermediary licenses, and matters related to the receipt of

[[Page 62467]]

surety bonds from OTIs. Sec.  504.4(a)(1), (3). Therefore, no 
environmental assessment or environmental impact statement is required.

Executive Order 12988 (Civil Justice Reform)

    This proposed rule meets applicable standards in E.O. 12988 titled, 
``Civil Justice Reform,'' to minimize litigation, eliminate ambiguity, 
and reduce burden.

Regulation Identifier Number

    The Commission assigns a regulation identifier number (RIN) to each 
regulatory action listed in the Unified Agenda of Federal Regulatory 
and Deregulatory Actions (Unified Agenda). The Regulatory Information 
Service Center publishes the Unified Agenda in April and October of 
each year. You may use the RIN contained in the heading at the 
beginning of this document to find this action in the Unified Agenda, 
available at http://www.reginfo.gov/public/do/eAgendaMain.

List of Subjects in 46 CFR Part 515

    Freight, Freight forwarders, Maritime carriers, Reporting and 
recordkeeping. requirements.

    For the reasons stated in the supplementary information, 46 CFR 
part 515 is amended as follows:

PART 515--LICENSING, REGISTRATION, FINANCIAL RESPONSIBILITY 
REQUIREMENTS, AND GENERAL DUTIES FOR OCEAN TRANSPORTATION 
INTERMEDIARIES

0
1. The authority citation for part 515 continues to read as follows:

    Authority: 5 U.S.C. 553; 31 U.S.C. 9701; 46 U.S.C. 305, 40102, 
40104, 40501-40503, 40901-40904, 41101-41109, 41301-41302, 41305-
41307; Pub. L. 105-383, 112 Stat. 3411; 21 U.S.C. 862.


0
2. Revise the part heading to read as set forth above.

0
3. Amend Sec.  515.1 by revising the first sentence of paragraph (a) to 
read as follows:


Sec.  515.1  Scope.

    (a) This part sets forth regulations providing for the licensing 
and registration as ocean transportation intermediaries of persons who 
wish to carry on the business of providing intermediary services, 
including the grounds and procedures for revocation and suspension of 
licenses and registrations. * * *
* * * * *

0
 4. Amend Sec.  515.5 by revising paragraphs (a), (b), and (c)(2) to 
read as follows:


Sec.  515.5  Forms and fees.

    (a) Forms. License Application Form FMC-18 is found at the 
Commission's website www.fmc.gov for completion on-line by applicants 
and licensees. Foreign-based Unlicensed NVOCC Registration/Renewal Form 
FMC-65 and financial responsibility Forms FMC-48, FMC-67, FMC-68, FMC-
69 may be obtained from the Commission's website at www.fmc.gov, from 
the Director, Bureau of Certification and Licensing, Federal Maritime 
Commission, Washington, DC 20573, or from any of the Commission's Area 
Representatives.
    (b) Filing of license application forms. All application forms are 
to be filed electronically.
    (c) * * *
    (2) Fees under this part shall be as follows:
    (i) Application for new OTI license as required by Sec.  515.12(a): 
Filing $250.
    (ii) Application for change to OTI license or license transfer as 
required by Sec.  515.20(a) and (b): Filing $125.

0
 5. Amend Sec.  515.11 by revising paragraph (b)(2) to read as follows:


Sec.  515.11  Basic requirements for licensing; eligibility.

* * * * *
    (b) * * *
    (2) Partnership. At least one of the active managing partners, 
unless the partners are entities, such as corporations, in which case 
an officer, member, or manager of one of the entities as long as the 
entity is a general partner.
* * * * *

0
6. Amend Sec.  515.12 by revising the first sentence of paragraph 
(a)(1) to read as follows:


Sec.  515.12  Application for license.

    (a) * * *
    (1) Any person who wishes to obtain a license to operate as an 
ocean transportation intermediary shall submit electronically a 
completed application Form FMC-18 (Application for a License as an 
Ocean Transportation Intermediary) in accordance with the automated 
FMC-18 filing system and corresponding instructions. * * *
* * * * *

0
7. Amend Sec.  515.14 by revising paragraphs (a), (c), (d)(1), and the 
first sentence of paragraph (d)(2) to read as follows:


Sec.  515.14  Issuance, renewal, and use of license.

    (a) Qualification necessary for issuance. (1) The Commission will 
issue a license if it determines, as a result of its investigation, 
that the applicant possesses the necessary experience and character to 
render ocean transportation intermediary services; has filed the 
required bond, insurance or other surety; and has electronically 
submitted Form FMC-1 pursuant to Sec.  520.3 if approved to offer NVOCC 
service.
    (2) If, within 120 days of notification of conditional approval for 
licensing by the Commission, proof of financial responsibility and, in 
the case of an NVOCC, the Form FMC-1 is not received, the conditional 
approval of the application will be invalid. Applicants whose 
applications/approvals have become invalid may submit a new Form FMC-
18, together with the required filing fee, at any time.
* * * * *
    (c) Duration of license. Licenses shall be issued for an initial 
period of not less than one year and not greater than four years as 
determined by the license number and published on the Commission 
website. Thereafter, licenses will be renewed for sequential three-year 
periods upon successful completion of the renewal process in paragraph 
(d) of this section.
    (d) * * *
    (1) The licensee shall submit the renewal electronically to the 
Director of the Bureau of Certification and Licensing (BCL) no later 
than the renewal date as published on the Commission website. The 
renewal date (month/day) will remain the same for subsequent renewals 
irrespective of the date on which the license renewal is submitted or 
when the renewal is accepted by the Commission, unless another renewal 
date is assigned by the Commission.
    (2) Where information identified in an OTI's license renewal 
process is changed from that set out in its current Form FMC-18 and 
requires Commission approval pursuant to Sec.  515.20, the licensee 
must promptly submit a request for such approval on Form FMC-18 
together with the required filing fee. * * *
* * * * *

0
8. Revise Sec.  515.18 to read as follows:


Sec.  515.18  Application after revocation or denial.

    Whenever a license has been revoked or an application has been 
denied because the Commission has found the licensee or applicant to be 
not qualified to render ocean transportation

[[Page 62468]]

intermediary services, any further application within 3 years of the 
Commission's notice of revocation or denial, made by such former 
licensee or applicant or by another applicant employing the same 
qualifying individual, officer(s), member(s), manager(s) or controlled 
by persons on whose conduct the Commission based its determination for 
revocation or denial, shall be reviewed directly by the Commission. If 
the Commission denies the application, such denial is final and not 
subject to the hearing procedures described in Sec. Sec.  515.15 and 
515.17.

0
 9. Amend Sec.  515.19 by revising paragraphs (c), (e), and 
(g)(1)(viii) to read as follows:


Sec.  515.19  Registration of foreign-based unlicensed NVOCC.

* * * * *
    (c) Registrations are complete upon receipt of a registration form 
which meets the requirements of this section, evidence of financial 
responsibility pursuant to Sec.  515.21, and Form FMC-1 pursuant to 
Sec.  520.3.
* * * * *
    (e) A tariff shall not be published and NVOCC service shall not 
commence until the Commission receives valid proof of financial 
responsibility from the registrant and a Form FMC-1 has been submitted.
* * * * *
    (g) * * *
    (1) * * *
    (viii) Failure to designate and maintain a person in the United 
States as legal agent for the receipt of judicial and administrative 
process, including subpoenas, as required by Sec.  515.24.
* * * * *

0
 10. Amend Sec.  515.20 by revising paragraph (a)(4) to read as 
follows:


Sec.  515.20  Changes in organization.

    (a) * * *
    (4) Any change in a licensee's name, including adding or deleting a 
trade name relating to its OTI services; or
* * * * *

0
 11. Amend Sec.  515.22 by revising paragraph (e) to read as follows:


Sec.  515.22  Proof of financial responsibility.

* * * * *
    (e) All forms and documents for establishing financial 
responsibility of ocean transportation intermediaries prescribed in 
this section shall be submitted to the Director, Bureau of 
Certification and Licensing, via email to [email protected]. Such forms and 
documents must clearly identify the principal's name; trade name, if 
any; address; the state of incorporation/formation; and the printed 
name and title of the signatory.

0
 12. Amend Sec.  515.23 by revising paragraph (c)(3) to read as 
follows:


Sec.  515.23  Claims against an ocean transportation intermediary.

* * * * *
    (c) * * *
    (3) Notices required by this section shall include the name of the 
claimant, name of the court and case number assigned, and the name and 
license or organization number of the OTI involved. Such notices may 
include or attach other information relevant to the claim.
* * * * *

0
13. Amend Sec.  515.25 by revising paragraph (a)(1) to read as follows:


Sec.  515.25  Filing of proof of financial responsibility.

    (a) * * *
    (1) Licenses. Upon notification by the Commission that an applicant 
has been conditionally approved for licensing, the applicant shall file 
with the Director of the Commission's Bureau of Certification and 
Licensing, proof of financial responsibility in the form and amount 
prescribed in Sec.  515.21. No license will be issued until the 
Commission is in receipt of valid proof of financial responsibility.
* * * * *

0
14. Revise Sec.  515.26 to read as follows:


Sec.  515.26  Termination of financial responsibility.

    No license or registration shall remain in effect unless valid 
proof of a financial responsibility instrument is maintained on file 
with the Commission. Upon receipt of notice of termination of such 
financial responsibility, the Commission shall notify the concerned 
licensee, registrant, or registrant's legal agent in the United States, 
by email, mail, courier, or other method reasonably calculated to 
provide actual notice, at its last known email address or address, that 
the Commission shall, without hearing or other proceeding, revoke the 
license or terminate the registration as of the termination date of the 
financial responsibility instrument, unless the licensee or registrant 
shall have submitted valid replacement proof of financial 
responsibility before such termination date. Replacement financial 
responsibility must bear an effective date no later than the 
termination date of the expiring financial responsibility instrument.


Sec.  515.34  [Removed]

0
 15. Remove Sec.  515.34.

By the Commission.
Rachel Dickon,
Secretary.
[FR Doc. 2019-24472 Filed 11-14-19; 8:45 am]
BILLING CODE 6731-AA-P