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Maritime Risk
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ping Act. In fact, the FMC and the alleged violator almost always enter into what is known as a “compromise agreement.”
Once the FMC’s Bureau of Enforcement completes its investigation, it will often negotiate a settlement with the alleged violator. Typically, the alleged violator agrees to pay a mitigated penalty, one that is far less than the maximum statutory penalty, in exchange for a release from further action by the FMC with respect to any alleged violations uncovered during the FMC’s investigation. No admission of guilt is made on the part of the alleged violator in exchange for the penalty miti- gation. While the mitigated penalties are far less than the allowable penalties un- der the Shipping Act, they are still steep enough to encourage the alleged violator to change its suspect practices.
With the FMC’s stepped up monitor- ing and enforcement programs, Ship- ping Act violators may fi nd themselves paying hefty penalties. Just two months ago, the FMC entered into compromise agreements with eight NVOCCs and re- lated companies for total of $490,000 in penalties. Three of the NVOCCs paid a combined total of $235,000. While the
FMC appears to be currently focused on
NVOCCs, there have been signifi cant penalties assessed against vessel opera- tors, including a $1.2 million civil penalty against a major carrier in 2011. In the an- nouncement made by the FMC in connec- tion with this penalty, the FMC’s Chair- man said, “These penalties should serve as a reminder… If you’re violating the law, sooner or later, we will fi nd you, and the consequences can be serious.”
Truston is the original manufacturer and exclusive supplier of U.S. Navy Port Security Barrier (PSB) Technology ? 9 4 5 5 . 3 , 4 < * 7 L % % G % h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
TRUSTON www.trustonbarriers.com
Port Security
Barriers
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The Author
Tara Leiter concentrates her practice in the areas of public and private maritime law, admiralty law, environmental law, and port security matters for international and domestic clients. She is a member of the
Maritime Law Association, WISTA and the
Maritime Administrative Bar Association. www.maritimeprofessional.com | Maritime Professional | 23
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