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Federal Maritime Commission Increases Penalties for Violations

The Federal Maritime Commission has issued an interim final rule adjusting the maximum amounts of each statutory civil monetary penalty subject to FMC jurisdiction, as shown below. These updated amounts will apply to all penalties, including those whose associated violation pre-dated the update, that are assessed after 1 August. The FMC was required to make these adjustments pursuant to a recent law mandating that federal agencies make a one time “catch-up” adjustment to their penalty amounts to account for inflation and make subsequent inflationary adjustments each year.

ViolationPenalty prior to 1 AugustPenalty after 1 August
Adverse impact on U.S. carriers by foreign shipping practicesUS$1,600,000US$1,978,690
Knowing and wilful violation of 1984 Shipping Act or FMC regulation or orderUS$45,000US$56,467
Violation of 1984 Shipping Act or FMC regulation or order not knowing and wilfulUS$9,000US$11,293
Operating in foreign commerce after tariff suspensionUS$80,000US$112,934
Failure to provide required reportsUS$9,000US$8,908
Adverse shipping conditionsUS$1,600,000US$1,781,560
Operating after tariff or service contract suspensionUS$80,000US$89,078
Failure to establish financial responsibility for non-performance of transportationUS$9,000US$22,500
Failure to establish financial responsibility for death or injuryUS$9,000US$22,500
Making false claimsUS$9,000US$10,781
Giving false statementUS$9,000US$10,781
Content provided by Picture: HKTDC Research
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