46 CFR 532 - NVOCC Negotiated Rate Arrangements

Forms and Documents

Document Name	Status
30 Day Extension+ Correction - 2022-02656.pdf Supplementary Document	2022-04-04
Part 531, 532 FR Notice 2022-06621.pdf Supplementary Document	2022-04-04
Part 532 support statement CLEAN.pdf Supporting Statement A	2022-04-04

IC Document Collections

IC ID	Document Title	Status
222760	Modification of Tariff Invoking Exemption - NRAs exclusively	Modified
192680	Recordkeeping/Auditing Requirements	Modified
192679	Modification of Tariff Invoking Exemption (combination of tariff rates and NRAs)	Modified

ICR Details

OMB Control No: 3072-0071	ICR Reference No: 202112-3072-003
Status: Received in OIRA	Previous ICR Reference No: 201807-3072-001
Agency/Subagency: FMC	Agency Tracking No:
Title: 46 CFR 532 - NVOCC Negotiated Rate Arrangements
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 04/04/2022

	Requested	Previously Approved
Expiration Date	36 Months From Approved	04/30/2022
Responses	2,543	1,818
Time Burden (Hours)	2,402	1,641
Cost Burden (Dollars)	0	0

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Abstract: Section 16 of the Shipping Act of 1984, 46 U.S.C. § 40103, authorizes the Federal Maritime Commission (“Commission”) to exempt by order or regulation “any class of agreements between persons subject to this [Act] or any specified activity of those persons from any requirement of this [Act] if the Commission finds that the exemption will not result in substantial reduction in competition or be detrimental to commerce. The Commission may attach conditions to any exemption and may, by order, revoke an exemption.” The Commission added 46 CFR 532 to exempt non-vessel-operating common carriers (NVOCCs) from the more stringent tariff rate publication requirements of the Shipping Act of 1984 and related provisions of the Commission’s regulations to permit them to enter into negotiated rate arrangements (NRAs) with shippers.76 FR 11351 (March 2, 2011). The Commission subsequently extended the tariff rate publication exemption contained in 46 CFR part 532 to foreign based unlicensed NVOCCs as well. 78 FR 42886 (July 10, 2013). The exemption is conditioned upon the NVOCC including a prominent notice invoking the exemption in its electronically published rules tariff and indicating their intention to the Commission. In addition, NVOCCs must maintain original NRAs and associated records for 5 years in a format easily produced to the Commission and furnish those records promptly upon request from the Commission.

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Authorizing Statute(s): US Code: 46 USC 40103 Name of Law: Shipping Act of 1984
   US Code: 46 USC 41109(e) Name of Law: Shipping Act of 1984
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	86 FR 69254	12/07/2021
30-day Notice:	Federal Register Citation:	Citation Date:
	87 FR 18368	03/30/2022
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 3

IC Title	Form No.	Form Name
Modification of Tariff Invoking Exemption (combination of tariff rates and NRAs)
Modification of Tariff Invoking Exemption - NRAs exclusively
Recordkeeping/Auditing Requirements

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ICR Summary of Burden

	Total Request	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	2,543	1,818	0	725	0	0
Annual Time Burden (Hours)	2,402	1,641	0	761	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Miscellaneous Actions

Burden decreases because of Program Change due to Agency Discretion: Yes

Burden Reduction Due to: Miscellaneous Actions

Short Statement: The estimated potential reporting respondent universe (licensed NVOCCs and foreign-based registered NVOCCs) is 6929. Of the total respondent universe, 2,349 have thus far invoked the exemption to use NRAs. Based on the current number of NVOCCs that have evoked this exemption the total estimated hour burden for this information collection is 2,402 person-hours, as set forth below. Modification of Tariff Invoking Exemption to use NRAs: An NVOCC publishes a prominent notice in its tariff to invoke the exemption. The Commission uses the information filed by NVOCCs in its rules tariff to determine whether an NVOCC has invoked the exemption to use NSAs. On average, 194 existing or new NVOCCs annually invoke the exemption to use NRAs by filing a rule or prominent notice in their rules tariff. The time estimate is greater for the 3% of NVOCCs that use NRAs exclusively because those NVOCCs largely self-publish their tariffs. Recordkeeping/Audit Requirements: NVOCCs create original NRAs, which are kept primarily in MS Word Doc, MS Excel or Pdf formatted files and stored electronically in their internal databases/contract management systems which are easily retrievable and produced. Many NRAs are executed by electronic signature or by an email acceptance. Based on consultation with a major tariff publisher who provides NRA contract management software, their NVOCC clients incur, on average, one hour to manage and organize their electronic portfolio of NRAs to file/store for recordkeeping and auditing requirements. For smaller NVOCCs that opt to self-publish their tariffs and use NRAs, we likewise estimate one hour annually for recordkeeping and storage management. The recordkeeping/audit processes used by NVOCCs invoking the NRA exemption result in an estimated burden of 2,349 hours for the recordkeeping function.

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Annual Cost to Federal Government: $10,688

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? No

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 04/04/2022

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