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FMC Announces Seven Compromise Agreements

May 4, 1998

FEDERAL MARITIME COMMISSION

FMC Announces Seven Compromise Agreements

NR 98-02

Washington, D.C. 20573


CONTACT: VERN W. HILL, DIRECTOR
BUREAU OF ENFORCEMENT AT (202) 523-5783

FOR RELEASE: MAY 4, 1998

The Federal Maritime Commission today announced seven compromise agreements for alleged violations of the Shipping Act of 1984, recovering civil penalties in an aggregate amount of $206,000. The agreements were entered into with a variety of transportation participants, including an ocean common carrier, non-vessel-operating common carriers, freight forwarders, a proprietary shipper and a destination agent/consignee. The compromise agreements are:

Big Save International Corp. Big Save International Corp., located in Los Angeles, California, is an importer and distributor of home furnishing accessories, giftware and toys. It was alleged that Big Save violated section 10(a)(1) of the Shipping Act of 1984 by obtaining ocean transportation at less than the applicable rates or charges through the device or means of misdescription of the commodities shipped. In accordance with the terms of the agreement, Big Save paid the sum of $35,000.

Exbo Shipping Company Exbo Shipping Company is a tariffed and bonded non-vessel-operating common carrier located in Hong Kong, People's Republic of China. It was alleged that Exbo violated section 10(a)(1) of the Shipping Act of 1984 by receiving transportation at less than the rates and charges otherwise applicable by accessing a service contract in which it was neither the signatory nor affiliate and by giving untariffed and unbonded NVOCCs access to its service contract by means of a false shipper certification and violated section 10(b)(1) by providing transportation at less than the rates and charges shown in its applicable tariffs. Exbo paid the sum of $55,000 in the compromise of these allegations.

Savoy Shipping Company, Inc. Savoy Shipping Company, Inc. is an ocean common carrier located in Dania, Florida operating in the trade between the United States and the Bahamas. It was alleged that Savoy Shipping violated section 10(b)(1) by providing transportation at other than the rates or charges established by Savoy in its tariffs or service contracts. Pursuant to the compromise, Savoy tendered the amount of $40,000.

Sims, Waters & Associates, Inc. Sims, Waters & Associates, Inc. is a licensed ocean freight forwarder located in Jacksonville, Florida. It was alleged that Sims, Waters & Associates violated sections 10(a)(1) and 19(d)(4) of the Shipping Act of 1984 by obtaining or attempting to obtain transportation for property at less than the rates and charges otherwise applicable through the unlawful use of service contracts and time-volume rates, and by collecting freight forwarder compensation on shipments in which it had a beneficial interest. Sims, Waters & Associates paid the sum of $15,000 in compromise of these allegations.

Total Port Clearance of Florida Inc. Total Port Clearance of Florida Inc. is a destination agent and consignee in Miami, Florida for non-vessel-operating common carriers on shipments from the Far East. It was alleged that Total Port violated section 10(a)(1) of the Shipping Act of 1984 by obtaining transportation at less than the rates or charges otherwise applicable, through the device or means of misdescription of the commodities shipped. Total paid the sum of $17,000.



Transport Partner USA, Inc. and Kathy Morris Transport Partner USA, Inc. is a licensed ocean freight forwarder located in Charleston, South Carolina. Kathy Morris is its qualifying individual. It was alleged that Transport Partner violated sections 10(a)(1) and 19(d)(4) of the Shipping Act of 1984 by obtaining or attempting to obtain transportation for property at less than the rates and charges otherwise applicable through the unlawful use of service contracts and time-volume rates, and by collecting freight forwarder compensation on shipments in which it had a beneficial interest. Transport Partner paid the sum of $14,000 in compromise of these allegations.

Versatile International Corp. Versatile International Corp. is a tariffed and bonded non-vessel-operating common carrier located in Torrance, California. It was alleged that Versatile violated section 10(a)(1) of the Shipping Act of 1984 on shipments from the People's Republic of China by obtaining transportation at less than the rates or charges which would otherwise be applicable, through the device or means of misdescription of the commodities shipped. Versatile paid the sum of $30,000 to the Commission.

In concluding the above compromises, these companies did not admit any violations of the Shipping Act of 1984. The compromise agreements resulted from investigations conducted by Area Representatives of the Bureau of Enforcement located in Los Angeles, Miami, and New Orleans. Staff attorneys with the Bureau of Enforcement negotiated the settlements.