Full Volume 19 - Federal Maritime Commission

HOMASOTE CO v U S LINES
The Commission may in its discretion and for good cause shown permit a
common carrier by water in the foreign commerce of the United States to refund a
portion of the freight charges collected from a shipper or waive the collection of a
portion of the charges from a shipper where it appears that there is an error in a
tariffof a clerical or administrative nature or an error due to an inadvertence in failing to
file a new tariff and that such refund or waiver will not result in discrimination among
shippers Furthermore prior to applying for such authority the carrier must have filed
a new tariff which sets forth the rate on which such refund or waiver would be based
The application for refund must be filed with the Commission within one hundred and
eighty days from the date of shipment Finally the carrier must agree that if permission
is granted an appropriate notice will be published in its tariff or such other steps taken
as may be required to give notice of the rate on which such refund or waiver would be
based
The legislative history of the amendment to section 18 of the Shipping
Act Public Law 90298 3
specifies that carriers are authorized to make
voluntary refunds and waive the collection of a portion of their freight
charges for good cause such as bona fide mistake The nature of the
mistake was particularly described
Section 18 b appears to prohibit the Commission from authorizing relief where
through bona fide mistake on the part of the carrier the shipper is charged more than he
understood the rate to be For example a carrier after advising a shipperthat he intends
to file a reduced rate and thereafter fails to file the reduced rate with the Federal
Maritime Commission must charge the shipper under the aforementioned circumstances
the higher rates
The Senate Report4 states the Purpose of the Bill
Voluntary refunds to shippers and waiver of the collection of a portion of freight
charges are authorized where it appears that there is an error in a tariff of a clerical
nature or where through inadvertence there has been a failure to file a tariff reflecting
an intended rate
As observed before refund or waiver of collection of a portion of the
freight is permitted where there is an error in a tariff ofa clerical or
administrative nature or an error due to an inadvertence in failing to file a
new tariff Misinterpretation of a tariff is not subject to rectification
under PL 90298 Commodity Credit Corporation v Delta Steamship
Lines Inc 14 SRR 1207 1974 The failure ofthe consignor or forwarder
to check a rate prior to shipment is not the kind of circumstance for
which section 18 b 3 affords relief Moreover if the 11th revision of
Page 258 Effective April 7 1975 is taken as a new tariff fIled prior to
applying for authority to waive collection of a portion of the freight
charges it based
fails to set forth the rate on which such waiver would be
In the absence of exemptive authority the Commission
may
not permit
deviations from the rates on file Accordingly waiver of collection of
undercharges may not be granted and authorizations of refunds of
House Report No 920 November 14 1967 To accompany H R 9473 on Shipping Act 1916 Aufhorized Refund
of CerlanFreight Charges
Slateme llof Purpose and Needfor the Bill 10 Amend Provisions of the Shipping Act
1916 toAuthori4e the FederalMaritime Commission to permit a Carrier to Refund aPortion of the Freight Charges
Senate lleport No 1073 April S 1968 To accompany HR 9473 on Shipping Act 1916 Authorized Refund of
CertainFreight Charges under Purpose ofthe Bill
19 F M C
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