[Federal Register: August 6, 2007 (Volume 72, Number 150)]
[Notices]               
[Page 43639-43641]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06au07-50]                         

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FEDERAL MARITIME COMMISSION

[Docket No. 07-07]

 
 Order of Investigation and Hearing; Embarque Puerto Plata, Corp. 
and Embarque Puerto Plata Inc. d/b/a Embarque Shipping and Embarque El 
Millon Corp., Estebaldo Garcia, Ocean Sea Line, Maritza Gil, Mateo 
Shipping Corp. and Julio Mateo--Possible Violations of Sections 8(a) 
and 19 of the Shipping Act of 1984 and the Commission's Regulations at 
46 CFR Parts 515 and 520

    Embarque Puerto Plata, Corp. was incorporated in the State of New 
York on November 17, 1992, and subsequently dissolved by proclamation. 
Embarque Puerto Plata Inc. was incorporated in the State of New York on 
April 28, 2005. Embarque Puerto Plata, Corp. and Embarque Puerto Plata 
Inc. (``Embarque'') listed its office address as 1426 Cromwell Avenue, 
Bronx, New York 10451. Recent indications, however, are that Embarque 
is currently operating at 381

[[Page 43640]]

East 169th Street, Bronx, New York 10456 by utilizing the different 
business names of Embarque Shipping and Embarque El Millon Corp. The 
principals of Embarque are Estebaldo Garcia and Hayda Garcia. Based on 
evidence available to the Commission, it appears that Embarque and 
Estebaldo Garcia have knowingly and willfully provided transportation 
services as a non-vessel operating common carrier (``NVOCC'') in the 
United States from at least May 2005 to the present without obtaining 
an ocean transportation intermediary (``OTI'') license from the 
Commission, without providing proof of financial responsibility, and 
without publishing a tariff showing its rates and charges.
    Ocean Sea Line,\1\ located at 146 West 170th Street, Bronx, New 
York 10452 was incorporated in New York on November 1, 2000 and 
dissolved by proclamation on June 30, 2004. Maritza Gil indicated in 
correspondence with the Commission that she is the president of Ocean 
Sea Line and owns 100% of the company stock. From at least September 
2003 to the present, it appears Ocean Sea Line knowingly and willfully 
provided ocean transportation services as a freight forwarder with 
respect to numerous shipments without obtaining an OTI license from the 
Commission and without providing proof of financial responsibility. 
Since Ocean Sea Line is no longer a valid New York corporation, Ms. Gil 
appears to be operating Ocean Sea Line as a sole proprietorship.
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    \1\ The company is listed as Ocean SeaLine in New York State 
corporate records.
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    Mateo Shipping, Corp. (``Mateo Shipping'') was incorporated in the 
State of New York on July 12, 2004. The business office of Mateo 
Shipping is located at 1441 Ogden Avenue, Bronx, New York 10452. In 
correspondence with the Commission, Julio Mateo represented himself to 
be the President of Mateo Shipping, as well as owner of 50% of the 
capital stock. Based on evidence available to the Commission, it 
appears that Mateo Shipping and Julio Mateo have knowingly and 
willfully provided transportation services as an NVOCC from at least 
October, 2005 through the present without obtaining an OTI license, 
without providing proof of financial responsibility and without 
publishing a tariff showing its rates and charges.
    Section 8(a) of the 1984 Act, 46 U.S.C. 40501(a), requires an NVOCC 
to maintain open to public inspection in an automated tariff system, 
tariffs showing its ``rates, charges, classifications, rules, and 
practices.'' The Commission's regulations at 46 CFR 520.3 affirm this 
statutory requirement by directing each NVOCC to notify the Commission, 
prior to providing transportation services, of the location and 
publisher of its tariffs by filing Form FMC-1.
    Furthermore, section 19(a) of the 1984 Act states that no person in 
the United States may act as an ocean transportation intermediary 
unless that person holds a license issued by the Commission. 46 U.S.C. 
40901. Section 19(b)(1) of the 1984 Act further requires all persons 
acting as ocean transportation intermediaries to furnish a bond, proof 
of insurance, or other surety in a form and amount determined by the 
Commission to insure financial responsibility. 46 U.S.C. 40902. The 
Commission's regulations at 46 CFR 515.21 restate this obligation and 
mandate that the bond, proof of insurance, or other surety evidencing 
the financial responsibility of an OTI shall be in the amount of 
$50,000 for freight forwarders and $75,000 for NVOCCs.
    Pursuant to section 13 of the 1984 Act, 46 U.S.C. 41107(a), a party 
is subject to a civil penalty of not more than $30,000 for each 
violation knowingly and willfully committed, and not more than $6,000 
for other violations.\2\ Each shipment is a separate violation.
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    \2\ These penalty amounts reflect an adjustment for inflation 
pursuant to the Commission's regulations at 46 CFR part 506.
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    Now therefore, it is ordered, That pursuant to section 11(c) of the 
1984 Act, 46 U.S.C. 41302(a), an investigation is instituted to 
determine:
    (1) Whether Embarque Puerto Plata, Corp. and Embarque Puerto Plata 
Inc. d/b/a Embarque Shipping and Embarque El Millon Corp., Estebaldo 
Garcia, Mateo Shipping, and Julio Mateo violated section 8 of the Act 
and the Commission's regulations at 46 CFR 520 by operating as NVOCCs 
without publishing tariffs showing their rates and charges;
    (2) whether Embarque Puerto Plata, Corp. and Embarque Puerto Plata 
Inc. d/b/a Embarque Shipping and Embarque El Millon Corp., Estebaldo 
Garcia, Ocean Sea Line, Maritza Gil, Mateo Shipping, and Julio Mateo 
violated sections 19(a) and (b) of the 1984 Act and the Commission's 
regulations at 46 CFR Part 515 by operating as OTIs in the United 
States trades without obtaining licenses from the Commission and 
without providing proof of financial responsibility;
    (3) whether, in the event one or more violations of the Act or the 
Commission's regulations are found, civil penalties should be assessed 
and, if so, the amount of the penalties to be assessed; and
    (4) whether, in the event violations are found, appropriate cease 
and desist orders should be issued against Embarque Puerto Plata, Corp. 
and Embarque Puerto Plata Inc. d/b/a Embarque Shipping and Embarque El 
Millon Corp., Estebaldo Garcia, Ocean Sea Line, Maritza Gil, Mateo 
Shipping, and Julio Mateo;
    It is further ordered, That a public hearing be held in this 
proceeding and that this matter be assigned for hearing before an 
Administrative Law Judge of the Commission's Office of Administrative 
Law Judges at a date and place to be hereafter determined by the 
Administrative Law Judge in compliance with Rule 61 of the Commission's 
Rules of Practice and Procedure, 46 CFR 502.61. The hearing shall 
include oral testimony and cross-examination in the discretion of the 
presiding Administrative Law Judge only after consideration has been 
given by the parties and the presiding Administrative Law Judge to the 
use of alternative forms of dispute resolution, and upon a proper 
showing that there are genuine issues of material fact that cannot be 
resolved on the basis of sworn statements, affidavits, depositions, or 
other documents or that the nature of the matters in issue is such that 
an oral hearing and cross-examination are necessary for the development 
of an adequate record;
    It is further ordered, That Embarque Puerto Plata, Corp. and 
Embarque Puerto Plata Inc. d/b/a Embarque Shipping and Embarque El 
Millon Corp., Estebaldo Garcia, Ocean Sea Line, Maritza Gil, Mateo 
Shipping and Julio Mateo are designated as Respondents in this 
proceeding;
    It is further ordered, That the Commission's Bureau of Enforcement 
is designated a party to this proceeding;
    It is further ordered, That notice of this Order be published in 
the Federal Register, and a copy be served on the parties of record;
    It is further ordered, That other persons having an interest in 
participating in this proceeding may file petitions for leave to 
intervene in accordance with Rule 72 of the Commission's Rules of 
Practice and Procedure, 46 CFR 502.72;
    It is further ordered, That all further notices, orders, and/or 
decisions issued by or on behalf of this Commission in this proceeding, 
including notice of the time and place of hearing or prehearing 
conference, shall be served on the parties of record;

[[Page 43641]]

    It is further ordered, That all documents submitted by any party of 
record in this proceeding shall be directed to the Secretary, Federal 
Maritime Commission, Washington, DC 20573, in accordance with Rule 118 
of the Commission's Rules of Practice and Procedure, 46 CFR 502.118, 
and shall be served on parties of record; and
    It is further ordered, That in accordance with Rule 61 of the 
Commission's Rules of Practice and Procedure, the initial decision of 
the Administrative Law Judge shall be issued by July 30, 2008 and the 
final decision of the Commission shall be issued by December 1, 2008.

By the Commission
Bryant L. VanBrakle,
Secretary.
 [FR Doc. E7-15177 Filed 8-3-07; 8:45 am]

BILLING CODE 6730-01-P