Us Code § 40904 - Compensation by common carriers

Full text of Us Code United States Code § 40904 — Compensation by common carriers, with citation guidance and answers to common questions.

§ 40904. Compensation by common carriers

(a) Certification of License and Services.—A common carrier may compensate an ocean freight forwarder for a shipment dispatched for others only when the ocean freight forwarder has certified in writing that it holds an ocean transportation intermediary's license (if required under section 40901 of this title) and has—

(1) engaged, booked, secured, reserved, or contracted directly with the carrier or its agent for space aboard a vessel or confirmed the availability of the space; and

(2) prepared and processed the ocean bill of lading, dock receipt, or other similar document for the shipment.


(b) Dual Compensation.—A common carrier may not pay compensation for services described in subsection (a) more than once on the same shipment.

(c) Beneficial Interest Shipments.—An ocean freight forwarder may not receive compensation from a common carrier for a shipment in which the ocean freight forwarder has a direct or indirect beneficial interest. A common carrier may not knowingly pay compensation on that shipment.

(d) Limits on Authority of Conference or Group.—A conference or group of two or more ocean common carriers in the foreign commerce of the United States that is authorized to agree on the level of compensation paid to an ocean freight forwarder may not—

(1) deny a member of the conference or group the right, upon notice of not more than 5 days, to take independent action on any level of compensation paid to an ocean freight forwarder; or

(2) agree to limit the payment of compensation to an ocean freight forwarder to less than 1.25 percent of the aggregate of all rates and charges applicable under a tariff and assessed against the cargo on which the services of the ocean freight forwarder are provided.

(Pub. L. 109–304, §7, Oct. 6, 2006, 120 Stat. 1539.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
40904 46 App.:1718(e). Pub. L. 98–237, §19(e), Mar. 20, 1984, 98 Stat. 88; Pub. L. 105–258, title I, §116, Oct. 14, 1998, 112 Stat. 1912.

In this section, the words "ocean freight forwarder" are substituted for "ocean transportation intermediary, as defined in section 1702(17)(A) of this Appendix" and "ocean transportation intermediary" because the definition of "ocean transportation intermediary" in section 1702(17)(A) contains a definition of "ocean freight forwarder" which is restated as a separate definition.

In subsection (d)(1), the word "calendar" is omitted as unnecessary.

CHAPTER 411—PROHIBITIONS AND PENALTIES

Sec.
41101.
Joint ventures and consortiums.
41102.
General prohibitions.
41103.
Disclosure of information.
41104.
Common carriers.
41105.
Concerted action.
41105A.
Authority.
41106.
Marine terminal operators.
41107.
Monetary penalties.1

        

41108.
Additional penalties.
41109.
Assessment of penalties.
41110.
Data collection.

        

Editorial Notes

Amendments

2022—Pub. L. 117–146, §9(c), June 16, 2022, 136 Stat. 1277, added item 41110.

2018—Pub. L. 115–282, title VII, §709(b)(2), Dec. 4, 2018, 132 Stat. 4296, added item 41105A.

1 Section catchline amended by Pub. L. 117–146 without corresponding amendment of chapter analysis.

About This Section

46 U.S.C. § 40904 is part of Title 46 of the United States Code. The United States Code is the official codification of federal statutes maintained by the Office of the Law Revision Counsel of the U.S. House of Representatives. Congress amends the Code through new public laws, which are eventually incorporated into the relevant title.

This section may be cited in legal writing as 46 U.S.C. § 40904. For the most current official text, including any recent amendments, use the official source links below. Do not rely on this page as the sole authority for legal citation or litigation.

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Frequently Asked Questions About Us Code § 40904

What does United States Code § 40904 cover?

Section 40904 ("Compensation by common carriers") is part of the United States Code, the codified statutory law of Us Code. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.

How do I cite Us Code § 40904?

A common citation format is "United States Code § 40904" (Us Code). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.

Is this the official text of Us Code law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the Us Code official source linked on this page or consult a licensed Us Code attorney.

How does Us Code § 40904 apply to my situation?

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