Authors:
Jennifer Diaz, President, Diaz Trade Law
Vin DiCianni, President, Affiliated Monitors
Double Ace Cargo, a non-vessel-operating common carrier (NVOCC) based in Florida, has paid $165,000 in civil penalties and will self-finance independent monitoring of its business practices under two separate compromise agreements it reached with the Federal Maritime Commission (FMC).
Under the first agreement, reached in June 2023, Double Ace paid $115,000 in civil penalties to resolve allegations that it violated the law (46 U.S.C. § 41104(a)(11)) by transporting shipments on behalf of entities that were not licensed NVOCCs, did not have bonds, and did not publish tariffs. 46 U.S.C. § 41104(a)(11) governs common carriers and prohibits them from knowingly and willfully accepting cargo from or transporting cargo for the account of a non-vessel-operating common carrier that does not have a tariff, or an ocean transportation intermediary that does not have a bond, insurance, or other surety.
In reviewing the June 2023 compromise, the FMC ordered the Bureau of Enforcement, Investigations, and Compliance (BEIC) to conduct a second investigation to re-examine the conduct of Double Ace and to ensure the company was complying with all obligations. The investigation resulted in a second compromise agreement where the company paid $50,000 in civil penalties for transporting shipments on behalf of entities that were not licensed NVOCCs, did not have bonds, and did not publish tariffs, in violation of 46 U.S.C. § 41104(a)(11).
As part of the second compromise agreement, Double Ace agreed to pay for independent monitoring for 12 months. The monitor is providing monthly reports directly to the BEIC Director. Requiring a company to pay for ongoing monitoring is new to previous compromise agreements. The arrangement allows BEIC to continue assessing compliance while preserving agency resources.
Independent monitoring is an enforcement mechanism used by a number of federal, state and international agencies. The monitor oversees the probationary terms placed on a company, in which the company must make required improvements in fulfilling the terms of a settlement agreement, deferred prosecution agreement, civil settlements or administrative agreements. The monitors reports are submitted to the agency and can include recommendations for improvements, while the company being monitored is generally responsible to pay for the monitors services. The benefits of independent monitoring include allowing the company to remain in business, address areas identified as problematic, demonstrating those improvements to the government agency through real time reports from the independent monitor. The wider benefits include helping a company stay compliant with regulatory requirements, retaining a work force, allowing customers to continue to receive services and for the government, continued oversight to protect the public.
Diaz Trade Law can assist with FMC pre-compliance programs that avoid and spot violations before they occur. Get in touch at info@diaztradelaw.com or 305-456-3830.
Affiliated Monitors offers independent monitoring, compliance risk and cultural assessments across industries and government agencies. Vin DiCianni, President of Affiliated Monitors can be reached at vdicianni@affiliatedmonitors.com.
Leave A Comment