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USDA/FSA | RIN: 0560-AG49 | Publication ID: Fall 2008 |
Title: Ocean Freight Claims Administrative Appeal Process | |
Abstract: This rule will establish an administrative appeals procedure that would be used by the Commodity Credit Corporation (CCC) with respect to ocean transportation cargo loss and damage claims arising under shipments of agricultural commodities made available by CCC under various foreign donation programs. Whether or not title to the commodities has passed from CCC to a cooperating sponsor, which may be a foreign government, private voluntary organization, or private entity, CCC either retains the right or may be assigned the right to initiate, prosecute, and with certain limited exceptions, retain the proceeds of cargo loss and damage claims. This proposed rule sets forth the administrative appeal system to be used in resolving these claims. The proposed rule would require that any recipient of CCC-donated commodities must include in the contract for the ocean transportation of the commodities a provision that the ocean carrier must agree to participate in this administrative appeal process. The current process requires CCC to file suit against ocean carriers in U.S. District Court to pursue claims that CCC is not able to settle through negotiations. CCC currently does not have an established administrative appeal process to handle the internal review of these cargo claims before the claims are referred to the U.S. Department of Justice for collection through litigation. The total amount of these claims is approximately $20 million, including $10 million that has been referred to the Department of Justice. Based upon a review of the programs under which these claims arise, CCC has determined that an administrative appeals system is necessary in order to: (1) Provide a more uniform treatment of these types of claims; (2) handle these types of claims in a manner that is more consistent with the manner in which other CCC claims are handled; and (3) ensure compliance with the Debt Collection Improvement Act of 1996. | |
Agency: Department of Agriculture(USDA) | Priority: Other Significant |
RIN Status: Previously published in the Unified Agenda | Agenda Stage of Rulemaking: Long-Term Actions |
Major: No | Unfunded Mandates: No |
CFR Citation: 7 CFR 1405 7 CFR 1499 22 CFR 211 | |
Legal Authority: 7 USC 1431 7 USC 1736o 15 USC 714 et seq 7 USC 1727 to 1727e |
Legal Deadline:
None |
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Timetable:
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Regulatory Flexibility Analysis Required: No | Government Levels Affected: None |
Small Entities Affected: No | Federalism: No |
Included in the Regulatory Plan: No | |
RIN Data Printed in the FR: No | |
Agency Contact: Deirdre Holder Branch Chief, Regulatory Analysis and PRA Requirements Branch Department of Agriculture Farm Production and Conservation Business Center, 1400 Independence Avenue SW, Washington, DC 20250-0572 Phone:202 205-5851 Email: deirdre.holder@usda.gov |