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FMC Increases Penalties for Ocean Shipping Violations

The Federal Maritime Commission has issued a final rule increasing for inflation the maximum amounts of each statutory civil monetary penalty subject to FMC jurisdiction, as follows. These updated amounts were effective as of 15 January.

  • Adverse impact on U.S. carriers by foreign shipping practices – maximum penalty increased from US$1,978,690 to US$2,011,061
  • Knowing and wilful violation of 1984 Shipping Act or FMC regulation or order – maximum penalty increased from US$56,467 to US$57,391
  • Violation of 1984 Shipping Act or FMC regulation or order not knowing and wilful - maximum penalty increased from US$11,293 to US$11,478
  • Operating in foreign commerce after tariff suspension – maximum penalty increased from US$112,934 to US$114,782
  • Failure to provide required reports – maximum penalty increased from US$8,908 to US$9,054
  • Adverse shipping conditions – maximum penalty increased from US$1,781,560 to US$1,810,706
  • Operating after tariff or service contract suspension – maximum penalty increased from US$89,078 to US$90,535
  • Failure to establish financial responsibility for non-performance of transportation – maximum penalty increased from US$22,500 to US$22,868
  • Failure to establish financial responsibility for death or injury – maximum penalty increased from US$22,500 to US$22,868
  • Making false claims – maximum penalty increased from US$10,781 to US$10,957
  • Giving false statement – maximum penalty increased from US$10,781 to US$10,957
Content provided by Picture: HKTDC Research
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