in connection with any shipment forwarded on behalf of others when, and only when, such carrier is in possession of a certification in the form prescribed in paragraph (e) of this section. Every tariff filed pursuant to section 18(b) (1), Shipping Act, 1916, shall specify the rate or rates of compensation to be paid licensed forwarders certifying in accordance with paragraph (e) of this section, and the conditions of payment.

(g) No licensee, and no person, firm or corporation directly or indirectly controlled by a licensee or in whom a licensee has a beneficial interest, nor any person, firm or corporation directly or indirectly controlling or having a beneficial interest in a licensee, shall demand, charge or collect any compensation or brokerage from a common carrier by water unless there shall be first filed with such carrier a certificate in the form prescribed in paragraph (e) of this section, and in compliance with section 44(e) of the Shipping Act: Provided, however, That the provisions of this paragraph shall not be applicable to brokerage paid on cargoes exempted from the tariff filing requirements of section 18(b) (1) of the Shipping Act, 1916 (46 U.S.C. 817 (b) (1)).

(h) Where an oceangoing common carrier has paid, or has incurred an obligation to pay brokerage to an ocean freight broker, or compensation to a licensee, then such carrier shall not pay additional compensation for any other forwarding services rendered on the same cargo.

[G.O. 4, 26 F.R. 12252, Dec. 22, 1961, as amended by Amdt. 5, 29 F.R. 5560, Apr. 25, 1964; Amdt. 10, 31 F.R. 13652, Oct. 22, 1966; 32 F.R. 5457, Apr. 1, 1967]

§ 510.25 Special contracts.

(a) Every licensee shall retain in its files a true copy, or, if oral, a true and complete memorandum of every special arrangement or contract with its principal, or modification or cancellation thereof, to which it may be a party or conform in whole or in part. Authorized Commission personnel and bona fide shippers shall have access to such contracts upon reasonable request.

(b) To the extent that special arrangements or contracts are entered into by a licensee, such licensee shall not deny equal terms to others similarly situated. § 510.26 Section 15 agreements.

(a) Copies of written agreements and true and complete memoranda of oral

agreements between a licensee and another licensee or common carrier or other person subject to the Act, or modifications or cancellations thereof, which are subject to section 15 of the Act, must be filed with the Commission for approval. Copies of memoranda or agreements, modifications or cancellations thereof submitted for the Commission's approval under section 15 shall clearly show their nature, the parties, ports, and subject matter in detail, and shall refer to any previously filed agreements to which they may relate.

(b) All such agreements, or modifications or cancellations thereof, shall not be carried out until approved by the Commission: Provided, however, That nonexclusive cooperative working agreements in the form prescribed herein between licensed independent ocean freight forwarders providing for the completion of documentation and performance of other forwarder services on export shipments on behalf of the parties to the agreements, are exempt from the provisions of section 15, of the Shipping Act, 1916, and need neither be filed with the Commission for approval nor reduced to writing.

(1) The typical form of agreement to which the exemption applies is as follows:

NONEXCLUSIVE COOPERATIVE

WORKING AGREEMENT

Parties to the agreement are:

(a) A.B.C. Co.

(Street Address) (City and State) F.M.C. No.

(b) X.Y.Z. Co.
(Street Address)
(City and State)
F.M.C. No.

(2) Terms of the agreement are:

1. This is a cooperative working arrangement whereunder either of the parties may complete documentation and perform other freight forwarder functions on export shipments on behalf of the other party. It is not an exclusive agreement and either of the above parties may engage or be engaged by other forwarders under another agreement approved by the Federal Maritime Commission, or exempt from the provisions of section 15 of the Shipping Act, 1916, as amended, by reason of 46 C.F.R. 510.26(b).

2. Forwarding and service fees are (the agreed division of freight forwarder fees, or schedule of fees, or that fees are subject to negotiation and agreement on each transaction).

3. Ocean freight compensation is (the agreed division of compensation or that compensation is to be divided between the parties as agreed). This division of brokerage will be restricted to those shipments handled on behalf of each other.

4. The terms of the agreement shall continue unless one party shall notify the other of the desire to terminate the agreement.

[G.O. 4, 26 F.R. 12252, Dec. 22, 1961, as amended by Amdt. 11, 32 F.R. 6370, Apr. 22, 1967]

§ 510.27 Separability.

The provisions of these rules are not interdependent. If any portion hereof shall be enjoined, set aside, suspended, or held invalid, the validity and enforceability of all other rules shall be unaffected thereby, and shall to the full extent practicable, remain in full force and effect unless and until it is otherwise provided by the Commission or a court of competent jurisdiction.

The data to be furnished are for the Federal Maritime Commission's use in discharging the statutory rate regulatory responsibilities with which it has been charged by applicable provisions of the Shipping Act, 1916, as amended, and the Intercoastal Shipping Act, 1933, as amended.

[G.O. 5, 27 F.R. 695, Jan. 24, 1962]

§ 511.2 Filing by operators of selfpropelled vessels.

All persons engaged in the operation of self-propelled vessels in the common carriage of persons or property in the domestic offshore trades (except persons engaged in intrastate operations in Alaska and Hawaii), and required by the Intercoastal Shipping Act, 1933, as amended, to file tariffs with the Federal Maritime Commission, shall execute and file with the Secretary, Federal Maritime Commission, the joint report presently referred to as the Maritime Administration Form MA-172 and the

Interstate Commerce Commission Form M for the years 1961 and 1962 and then annually for each year thereafter.

[G.O. 5, 27 F.R. 6939, July 21, 1962, as amended by Amdt. 4, 28 F.R. 5301, May 29, 1963]

§ 511.3 Filing by operators of vessels other than self-propelled.

All persons engaged in the operation of vessels, other than self-propelled, in the common carriage of persons or property in the domestic offshore trades (except persons engaged in intrastate operations in Alaska and Hawaii), and required by the Intercoastal Shipping Act, 1933, as amended, to file tariffs with the Federal Maritime Commission, shall execute and file with the Secretary, Federal Maritime Commission, the report presently referred to as the Interstate Commerce Commission Form K-A for the years 1961 and 1962 and then annually for each year thereafter.

[G.O. 5, 27 F.R. 6939, July 21, 1962, as amended by Amdt. 4, 28 F.R. 5301, May 29, 1963]

(a) For any fiscal year ending after June 30, 1961, and prior to the publication of this part, the persons concerned shall file the first annual statement covering that year within 120 days of the publication of this part. For any fiscal year ending after January 24, 1962, but prior to July 1, 1962, the person concerned shall file the first annual statement covering that year within 120 days after the end of that fiscal year. After the filing of the second annual statement, each person concerned is required to file an annual statement within 120 days of the close of each fiscal year.

(b) Upon application, the Commission may grant reasonable extensions of the time limit prescribed by this section for filing the statements and data required by this part, provided that (1) the application therefor is received fifteen (15) days before the statements and data are due; (2) the application sets forth good and sufficient reasons to justify the extension requested; (3) the application states a specific date on, or before, which the statements or data will be filed; and, (4) the application is not to be construed as constituting relief from possible penalties for tardy filing, unless it is granted.

[G.O. 5, 27 F.R. 6939, July 21, 1962, as amended by Amdt. 4, 28 F.R. 5301, May 29, 1963; Amdt. 5, 28 F.R. 10973, Oct. 12, 1963]

§ 511.5 Form number designations.

The joint report referred to in § 511.2 as Maritime Administration Form MA172 and Interstate Commerce Commission Form M and the report referred to in § 511.3 as Interstate Commerce Commission Form K-A shall henceforth bear the additional notations, "Federal Maritime Commission Form FMC-64" and "Federal Maritime Commission Form FMC-63" respectively.

[G.O. 5, Amdt. 2, 28 F.R. 3124, Mar. 30, 1963] § 511.6 Acceptance of alternate data.

The Commission, upon application filed not less than sixty days before reports under this part are due, and upon a showing of good cause, or when it finds it unnecessary to require full compliance with this part to carry out its regulatory functions, may relieve a carrier from full compliance with this part, and may require such carrier to submit other data as the Commission deems necessary: Provided, however, That all applications seeking release from compliance with this part must be accompanied by a list of the data which the carrier proposes to submit in lieu of the required reports, or the data itself.

[G.O. 5, Amdt. 3, 28 F.R. 8041, Aug. 7, 1963] § 511.7 Waiver for carriers with less

than $25,000 gross revenue.

The Commission upon an application and showing that any carrier subject to this part has earned less than $25,000 gross revenue for any one reporting period as provided in this part, may relieve such carrier from filing any report for such reporting period.

[G.O. 5, Amdt. 2, 28 F.R. 3124, Mar. 30, 1963]

The purpose of the rules in this part is to require the filing of additional information by common carriers by water subject to the Commission's General Order 5 (Part 511 of this chapter) so that the Commission will be able to expedite the discharge of its duties under the Intercoastal Shipping Act, 1933. § 512.2 Authority.

The rules in this part are issued pursuant to authority vested in the Commission by sections 18, 21, and 43 of the Shipping Act, 1916, as amended, and sections 2, 4, and 7 of the Intercoastal Shipping Act, 1933.

§ 512.3 General requirements.

(a) All persons engaged in the operation of Cargo Vessels in the common carriage of persons or property in the Domestic Offshore Trades (except persons engaged in intrastate operations in Alaska and Hawaii) and required by the Intercoastal Shipping Act, 1933, as amended, to file tariffs with the Federal Maritime Commission shall execute and file, in triplicate, with the Secretary of the Federal Maritime Commission, Statements of Rate Base and Income Account for each Domestic Offshore Trade served by the carrier. Initial statements of Rate Base and Income Account shall be filed as follows:

(1) For carriers whose fiscal year coincides with the calendar year, the first filing shall cover the entire calendar year 1963 and the statements shall be filed within 90 days after promulgation of this part;

(2) For carriers with a fiscal year ending on any date from July 1, 1963, to December 30, 1963, inclusive, the first filing shall cover the entire fiscal year and the statements shall be filed within 90 days after promulgation of this part; and

(3) For carriers with a fiscal year ending on any date from January 1 to June 30, 1964, inclusive, the first filing shall cover the entire fiscal year and the statements shall be filed within 150 days after the last day of the fiscal year.

(b) After the first filing, annual statements shall be filed within 150 days after the close of the carrier's fiscal year.

(c) Upon application the Commission may:

(1) Grant reasonable extensions of the time limit prescribed by this section for filing the statements and data required by this part: Provided, That:

(i) The application therefor is received 15 days before the statements and data are due;

(ii) The application sets forth good and sufficient reasons to justify the extension requested;

(iii) The application states a specific date on or before which the statements and data will be filed; and

(iv) The application is not construed as constituting relief from possible penalties for tardy filing, unless granted;

(2) If the application is filed not less than 60 days before the statements and data under this part are due, and upon a showing of good cause, or when it finds it unnecessary to require full compliance with this part to carry out its regulatory functions, relieve a carrier from full compliance with this part, and require such carrier to submit other data as the Commission deems necessary: Provided, however, That all applications seeking release from compliance with this part must be accompanied by a list of the data which the carrier proposes to submit in lieu of the required statements, or the data themselves;

(3) Upon showing that any carrier subject to this part has earned less than $25,000 gross revenue in the Trade for its fiscal year as provided in this part, relieve such carrier from filing any statements for such fiscal year; and

(d) The Commission may require a carrier to file the statements and data required by this part for the first 6 months of any fiscal year unless the carrier files within 30 days after the close thereof with the Federal Maritime Commission a certification to the effect that no significant changes have taken place during such period in route(s), service (s), number of vessels employed, types of vessels employed, costs of operations, volume of cargo carried, and amount of revenue earned. Such statements and data, if required, shall be filed within 90 days after the end of the first 6 months of the carrier's fiscal year.

(e) Where it is necessary to allocate property, revenue (except net passenger and other voyage revenue), costs, and expenses, the allocation shall be on a direct basis, if practicable, and if not, in the manner prescribed in § 512.7.

(f) All carriers subject to these reporting requirements must comply fully

with the instructions outlined herein, both as to the submission of the specified reports and as to compliance with the methods prescribed for their preparation. The carrier, however, may present additional material by way of alternative methods of allocation or other approaches to the problems inherent in this type of reporting. When such additional material is submitted, the methods used shall be explained and fully supported.

(g) The establishment of the rules and regulations prescribed in the succeeding sections hereof is without prejudice to the right of the Federal Maritime Commission to employ other bases for allocation and calculation in any instance where in its opinion the application of such rules and regulations create unreasonable results.

(h) With respect to the annual statements required by this part, all data must be based on amounts shown in the annual financial statements filed with the Federal Maritime Commission in compliance with General Order 5 (Part 511 of this chapter).

(i) All calculations required by allocations herein shall be carried to 2 places beyond the decimal point, e.g., 97.54 percent.

The data required by this part shall be accompanied by a certification of the corporate officer responsible for the maintenance and accuracy of the books, accounts, and financial records of the carrier that:

(a) The books and accounts have been maintained in accordance with an appropriate system of accounts; and

(b) The exhibits and schedules have been prepared from the books and records of the carrier in accordance with this part.

§ 512.5 Access to working papers.

All working papers (irrespective of by whom prepared) in support of all exhibits and schedules submitted, as well as the books and records of the carrier, shall be made available upon request for examination by auditors representing the Federal Maritime Commission, and said auditors shall be permitted to make copies of such records to the extent they deem necessary.

§ 512.6 Definitions.

Various expressions, terms, and designations used herein may or may not have

additional meanings or usage. For the purposes of this part, however, these terms are expressly limited as follows:

(a) "Domestic Offshore Trade" means that trade carried on by common carriers by water operating: (1) Between the United States and its territories, possessions, and Puerto Rico; (2) between or within those territories, possessions, and Puerto Rico; (3) between continental United States and Hawaii and Alaska; and, (4) between, but not within, Hawaii and Alaska.

(b) "The Service" means all Voyages of Cargo Vessels performed by common carriers by water on which any cargo was carried in The Trade.

(c) "The Trade" means the carriage in The Service in Cargo Vessels by common carriers by water of cargo in the Domestic Offshore Trade under the terms of tariffs on file with the Federal Maritime Commission: Provided, however, That if the gross revenue derived from the carriage of Other Cargo does not exceed 5 percent of the gross revenue derived from The Service, no segregation of revenue and expenses within The Service is required by this part.

(d) "Other Cargo" means the carriage in The Service in Cargo Vessels of mail and any cargo other than that in The Trade: Provided, however, That if the gross revenue derived from the carriage of Other Cargo exceeds 5 percent of the gross revenue derived from The Service, segregation of revenue and expenses related thereto within The Service is required by this part.

(e) "Other Services" means all Voyages performed by common carriers by water on which no cargo was carried in The Trade.

(f) "Cargo Vessel" means a self-propelled or non-self-propelled vessel which carries cargo, but does not include a vessel which carries or is authorized to carry more than 12 passengers.

(g) "Revenue Tons" means those tons, either weight or measurement, on which freight revenues are calculated. For the purposes of this part, a weight ton may be either 2,240 pounds or 2,000 pounds and a measurement ton shall be 40 cubic feet.

Each carrier must use a consistent basis of weight measurement in making Revenue Ton or Revenue Ton-Mile calculations, and the reports filed must clearly indicate the basis used.

(h) "Revenue Ton Relationship" means the relationship between Revenue

Tons for all cargo carried in The Trade, on the one hand, and the total Revenue Tons for all cargo carried in The Service on the other.

(i) "Revenue Ton-Mile" means the product of the Revenue Tons carried between each port of origin and destination, multiplied by the number of nautical miles representing the shortest navigable distance between the two ports as set forth in either:

(1) "Distances Between Ports"-Department of the Navy, Oceanographic Office; or,

(2) "Distances Between United States Ports"-U.S. Department of Commerce, Coast and Geodetic Survey.

(j) "Revenue Ton-Mile Relationship" means the relationship between Revenue Ton-Miles for all cargo carried in The Trade, on the one hand, and the total Revenue Ton-Miles for all cargo carried in The Service on the other. Normally the total of all Revenue Ton-Miles in The Service will be a figure of considerable magnitude; therefore, it is suggested that three digits be dropped from the total. This then would provide the data in terms of thousands of ton-miles.

(k) "Voyage" normally means a completed round voyage from port of origin and return to port of origin. In no case shall a Voyage be split to reflect outward and inward services separately. However, when a vessel is reassigned to a new United States basing point, then the Voyage is from the old United States port of origin to the new United States port of origin. Where a vessel performs outbound in The Service and then proceeds to charter, the Voyage will be considered to be terminated upon completion of the discharge of the last cargo in The Service. The requirement respecting commencement and termination of a completed round Voyage by a carrier party to an operating differential subsidy agreement may be observed by such carrier for the purposes of this part. Voyages generally are considered to be terminated on the completion of one or the other of the following operations or events:

(1) The latest of: (i) Crew paid off;

(ii) Discharge of last of homeward cargo; or

(iii) Completion of repairs (excluding annual overhaul and emergency repairs); or