U.S. and Hong Kong (2003)

U.S. Reaches Agreements with Shipping Companies

Following is the text of the news release:

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Federal Maritime Commission

FMC ANNOUNCES COMPROMISE AGREEMENTS
July 9, 2003

The Federal Maritime Commission today announced eleven compromise Agreements recovering civil penalties in an aggregate amount of $700,000. The agreements were reached with a vessel-operating common carrier ("VOCC"), a passenger-vessel operator ("PVO") and ocean transportation intermediaries ("OTIs"), acting both as non-vessel-operating common carriers ("NVOCCs") and freight forwarders. The compromise agreements are:

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Orient Star Transport International Ltd. Orient Star Transport International Ltd. ("Orient Star") is a NVOCC located in Hong Kong, PRC. It was alleged that Orient Star violated sections 10(a)(1), 10(b)(1) and 10(b)(2)(A) of the 1984 Act by obtaining transportation at less than applicable rates and charges by misdescription of commodities shipped, by allowing non-signatory entities to access its service contracts and by providing ocean transportation services not in accordance with the rates and charges in its published tariff. Pursuant to the compromise agreement, Orient Star made a payment of $45,000.

Rich Shipping Company Limited, Rich Shipping (USA), Inc. and Cargo Management International. Rich Shipping Company Limited ("Rich") is a tariffed and bonded NVOCC located in Hong Kong, PRC. Rich Shipping (USA), Inc. ("Rich USA"), a corporate subsidiary of Rich, is a licensed OTI operating as a freight forwarder located in Monterey Park, CA. Cargo Management International ("CMI"), owned and operated by an employee/consultant of Rich USA, was a licensed NVOCC located in Gardena, CA. It was alleged that Rich violated sections 10(a)(1), 10(b)(2)(A) and 10(b)(11) by failing to meet minimum quantity commitments with respect to certain service contracts, by providing ocean transportation services not in accordance with its published tariffs and by accepting from or transporting cargo for the accounts of OTIs without license, tariffs or bonds. It was alleged that Rich USA violated sections 8(a) and 19 of the 1984 Act by providing NVOCC services with license, tariff or bond. Also, it was alleged that CMI violated sections 10(a)(1) and 10(b)(2)(A) of the 1984 Act and certain provisions of the Commissions regulations found at 46 C.F.R. pt. 515, by unlawfully accessing service contracts to which it was not signatory, by providing ocean transportation services not in accordance with its published tariffs and by providing incorrect or misleading information in forms filed with the Commission. In compromise of these allegations, CMI ceased operation as an OTI and surrendered its OTI license to the Commission and these companies, collectively, made a payment in the amount of $300,000.

Shanghai Pudong Int'l Transportation Co., Ltd. and Pudong Trans U.S.A., Inc. Shanghai Pudong Int'l Transportation Co., Ltd. ("Shanghai Pudong") is a tariffed and bonded NVOCC located in Shanghai, PRC and Pudong Trans U.S.A., Inc. ("Pudong Trans") is a licensed NVOCC located in El Monte, CA. It was alleged that Shanghai Pudong, and its subsidiary Pudong Trans, violated sections 10(a)(1) and 10(b)(1) of the 1984 Act by obtaining transportation services at less than applicable rates and charges, by unlawfully accessing service contracts to which they were not signatories or affiliates, by allowing non-signatory entities to access their service contracts, by misdescribing commodities to the ocean common carrier and by providing ocean transportation services at other than the rates or charges provided in published tariffs. Shanghai Pudong and Pudong Trans made a payment of $70,000 in compromise of these allegations.

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