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Trade Practices Act 1974 (Consolidated to Act 59 of 2009)

Part X - Internatinal Liner Cargo Shipping

 

  

Division 1—Preliminary

10.01  Objects of Part

             (1)  The principal objects of this Part are:

                     (a)  to ensure that Australian exporters have continued access to outwards liner cargo shipping services of adequate frequency and reliability at freight rates that are internationally competitive; and

                     (b)  to promote conditions in the international liner cargo shipping industry that encourage stable access to export markets for exporters in all States and Territories; and

                     (c)  to ensure that efficient Australian flag shipping is not unreasonably hindered from normal commercial participation in any outwards liner cargo shipping trade; and

                     (d)  as far as practicable, to extend to Australian importers in each State and Territory the protection given by this Part to Australian exporters.

             (2)  It is the intention of the Parliament that the principal objects of this Part should be achieved:

                     (a)  by permitting continued conference operations while enhancing the competitive environment for international liner cargo shipping services through the provision of adequate and appropriate safeguards against abuse of conference power, particularly by:

                              (i)  enacting additional restrictive trade practice provisions applying to ocean carriers;

                             (ii)  requiring conference agreements to meet certain minimum standards;

                            (iii)  making conference agreements generally publicly available;

                            (iv)  permitting only partial and conditional exemption from restrictive trade practice prohibitions; and

                             (v)  requiring conferences to take part in negotiations with representative shipper bodies;

                     (b)  through increased reliance on private commercial and legal processes and a reduced level of government regulation of routine commercial matters; and

                     (c)  by the exercise of jurisdiction, consistent with international law:

                              (i)  over ocean carriers who have a substantial connection with Australia because they provide international liner cargo shipping services; and

                             (ii)  to enable remedies for contravention of the provisions of this Part to be enforced within Australia .

10.01A  Simplified outline

                   The following is a simplified outline of this Part:

•     This Part sets up a system for regulating international liner cargo shipping services.

•     The main components of that system are as follows:

               (a)     registration of conference agreements;

               (b)     regulation of non‑conference ocean carriers with substantial market power;

               (c)     regulation of unfair pricing practices;

               (d)     registration of agents of ocean carriers.

•     The parties to a conference agreement relating to international liner cargo shipping services may apply for the registration of the agreement.

•     If the conference agreement is registered, the parties will be given partial and conditional exemptions from:

               (a)     sections 44ZZRF, 44ZZRG, 44ZZRJ and 44ZZRK (cartel conduct); and

               (b)     section 45 (contracts etc. that restrict dealings or affect competition); and

(c)   section 47 (exclusive dealing).•            The parties to a registered conference agreement are required to negotiate with, and provide information to, representative shipper bodies.

•     The Commission may investigate whether grounds exist for the Minister to deregister a conference agreement.

•     The main ground for deregistration is a breach by the parties to the agreement of requirements imposed on them by this Part.

10.02  Interpretation

             (1)  In this Part, unless the contrary intention appears:

agreement means any contract, agreement, arrangement or understanding, whether made in or outside Australia .

ancillary service, in relation to a scheduled cargo shipping service, means:

                     (a)  an inter‑terminal transport service; or

                     (b)  a stevedoring service; or

                     (c)  a service provided outside Australia ;

that:

                     (d)  relates to the cargo transported, or to be transported, on the scheduled cargo shipping service; and

                     (e)  is provided by, or on behalf of, the provider of the scheduled cargo shipping service.

association includes a body corporate.

Australian exporter means a person who exports goods from Australia .

Australian flag shipping operator means a person who:

                     (a)  is an Australian citizen or a body corporate incorporated by or under the law of the Commonwealth or of a State or Territory;

                     (b)  provides, or proposes to provide, shipping services; and

                     (c)  normally uses, or proposes normally to use, in providing the services only:

                              (i)  a ship that is registered in Australia ; or

                             (ii)  2 or more ships, all or most of which are registered in Australia .

Australian importer means a person who imports goods into Australia .

authorised officer means an officer of the Department who is authorised, in writing, by the Minister for the purposes of this Part.

conference means an unincorporated association of 2 or more ocean carriers carrying on 2 or more businesses each of which includes, or is proposed to include, the provision of outwards liner cargo shipping services or inwards liner cargo shipping services.

conference agreement means:

                     (a)  an outwards conference agreement; or

                     (b)  an inwards conference agreement.

designated inwards peak shipper body means an association specified in a notice under subsection 10.03(2A).

designated inwards secondary shipper body means an association specified in a notice under subsection 10.03(2B).

designated inwards shipper body means:

                     (a)  a designated inwards peak shipper body; or

                     (b)  a designated inwards secondary shipper body.

designated outwards peak shipper body means an association specified in a notice under subsection 10.03(1).

designated outwards secondary shipper body means an association specified in a notice under subsection 10.03(2).

designated outwards shipper body means:

                     (a)  a designated outwards peak shipper body; or

                     (b)  a designated outwards secondary shipper body.

designated port area means the area within the limits of a port appointed under section 15 of the Customs Act 1901, being the limits fixed under that section.

designated secondary shipper body means:

                     (a)  a designated outwards secondary shipper body; or

                     (b)  a designated inwards secondary shipper body.

designated shipper body means:

                     (a)  a designated outwards shipper body; or

                     (b)  a designated inwards shipper body.

exemption order means an order under section 10.72A.

freight rate agreement means a conference agreement that consists of or includes freight rate charges.

freight rate charges:

                     (a)  in relation to an outwards conference agreement—means those parts of the conference agreement that specify freight rates (including base freight rates, surcharges, rebates and allowances) for outwards liner cargo shipping services; and

                     (b)  in relation to an inwards conference agreement—means those parts of the conference agreement that specify freight rates (including base freight rates, surcharges, rebates and allowances) for inwards liner cargo shipping services.

handling cargo includes a service that is related to handling of cargo.

inland terminal has the meaning given by section 10.02A.

international liner cargo shipping service means:

                     (a)  an outwards liner cargo shipping service; or

                     (b)  an inwards liner cargo shipping service.

inter‑terminal transport service means a service for the transport of various types of general cargo:

                     (a)  from an inland terminal to a port terminal; or

                     (b)  from a port terminal to an inland terminal; or

                     (c)  from a port terminal to another port terminal;

and includes the handling of the cargo within any of those terminals.

inwards conference agreement means an agreement between members of a conference in relation to inwards liner cargo shipping services provided, or proposed to be provided, by them, and includes an inwards varying conference agreement.

inwards liner cargo shipping service means an inwards scheduled cargo shipping service and, if the inwards scheduled cargo shipping service is part of a terminal‑to‑terminal service, includes an ancillary service that relates to the inwards scheduled cargo shipping service.

inwards loyalty agreement means an agreement:

                     (a)  between an ocean carrier or conference and a shipper or designated inwards shipper body; and

                     (b)  that makes provision, in relation to inwards liner cargo shipping services, having the purpose or effect of giving certain benefits to the shipper, or a shipper represented by the designated inwards shipper body, if the shipper ships with the ocean carrier, or members of the conference:

                              (i)  all or particular cargo, or a particular portion of all or particular cargo, shipped by the shipper; or

                             (ii)  a particular quantity of cargo or of particular cargo.

inwards scheduled cargo shipping service means a scheduled cargo shipping service where the transport of the cargo by sea commences from a place outside Australia and ends at a place in Australia .

inwards varying conference agreement means an agreement:

                     (a)  that varies an inwards conference agreement; or

                     (b)  that otherwise affects an inwards conference agreement (including an agreement referred to in subsection (4)).

loyalty agreement means:

                     (a)  an outwards loyalty agreement; or

                     (b)  an inwards loyalty agreement.

ocean carrier means a person who provides, or proposes to provide, international liner cargo shipping services.

outwards conference agreement means an agreement between members of a conference in relation to outwards liner cargo shipping services provided, or proposed to be provided, by them, and includes an outwards varying conference agreement.

outwards liner cargo shipping service means an outwards scheduled cargo shipping service and, if the outwards scheduled cargo shipping service is part of a terminal‑to‑terminal service, includes an ancillary service that relates to the outwards scheduled cargo shipping service.

outwards loyalty agreement means an agreement:

                     (a)  between an ocean carrier or conference and a shipper or designated outwards shipper body; and

                     (b)  that makes provision, in relation to outwards liner cargo shipping services, having the purpose or effect of giving certain benefits to the shipper, or a shipper represented by the designated outwards shipper body, if the shipper ships with the ocean carrier, or members of the conference:

                              (i)  all or particular cargo, or a particular portion of all or particular cargo, shipped by the shipper; or

                             (ii)  a particular quantity of cargo or of particular cargo.

outwards scheduled cargo shipping service means a scheduled cargo shipping service where the transport of the cargo by sea commences from a place in Australia and ends at a place outside Australia .

outwards varying conference agreement means an agreement:

                     (a)  that varies an outwards conference agreement; or

                     (b)  that otherwise affects an outwards conference agreement (including an agreement referred to in subsection (3)).

port terminal means:

                     (a)  the area within the limits of a wharf appointed under section 15 of the Customs Act 1901, being the limits fixed under that section; or

                     (b)  a terminal facility within the limits of a designated port area.

pricing practice means the fixing, controlling or maintaining by an ocean carrier of prices charged for, or the giving or allowing by an ocean carrier of discounts, allowances, rebates or credits in relation to, outwards liner cargo shipping services or inwards liner cargo shipping services provided by the ocean carrier.

provisionally registered conference agreement means a conference agreement that is provisionally registered under this Part.

registered agent, in relation to an ocean carrier, means the person specified in the register of ocean carrier agents as the agent of the ocean carrier.

registered conference agreement means a conference agreement that is finally registered under this Part.

registered non‑conference ocean carrier with substantial market power means an ocean carrier specified in the register of non‑conference ocean carriers with substantial market power.

Registrar means the Registrar of Liner Shipping.

scheduled cargo shipping service means a scheduled service for the transport of various types of general cargo by sea on particular routes, generally by container and generally at predetermined freight rates.

stevedoring service means:

                     (a)  the loading or unloading of cargo into or from a ship; or

                     (b)  the handling of cargo within a port terminal.

terminal‑to‑terminal service means:

                     (a)  an outwards scheduled cargo shipping service, together with any ancillary service that relates to the outwards scheduled cargo shipping service; or

                     (b)  an inwards scheduled cargo shipping service, together with any ancillary service that relates to the inwards scheduled cargo shipping service.

vary, in relation to a conference agreement, includes vary by way of:

                     (a)  omitting or altering any of the provisions of, or parties to, the agreement;

                     (b)  adding new provisions or parties to the agreement; or

                     (c)  substituting new provisions or parties for any of the provisions of, or parties to, the agreement.

varying conference agreement means:

                     (a)  an outwards varying conference agreement; or

                     (b)  an inwards varying conference agreement.

             (2)  A reference in this Part to the minimum level of outwards liner cargo shipping services provided, or proposed to be provided, under an outwards conference agreement includes a reference to the frequency of sailings, cargo carrying capacity, and ports of call, of outwards liner cargo shipping services provided, or proposed to be provided, under the agreement.

          (2A)  A reference in this Part to the minimum level of inwards liner cargo shipping services provided, or proposed to be provided, under an inwards conference agreement includes a reference to the frequency of sailings, cargo carrying capacity, and ports of call, of inwards liner cargo shipping services provided, or proposed to be provided, under the agreement.

             (3)  A reference in this Part to an agreement that affects an outwards conference agreement includes a reference to an agreement between parties to the conference agreement or between parties to the conference agreement and other ocean carriers:

                     (a)  that affects the conduct of parties to the conference agreement in relation to outwards liner cargo shipping services provided, or proposed to be provided, under the conference agreement;

                     (b)  that affects the minimum level of outwards liner cargo shipping services provided, or proposed to be provided, under the conference agreement; or

                     (c)  that otherwise affects:

                              (i)  the operation, or proposed operation, of the conference agreement; or

                             (ii)  outwards liner cargo shipping services provided, or proposed to be provided, under the conference agreement.

             (4)  A reference in this Part to an agreement that affects an inwards conference agreement includes a reference to an agreement between parties to the conference agreement or between parties to the conference agreement and other ocean carriers:

                     (a)  that affects the conduct of parties to the conference agreement in relation to inwards liner cargo shipping services provided, or proposed to be provided, under the conference agreement; or

                     (b)  that affects the minimum level of inwards liner cargo shipping services provided, or proposed to be provided, under the conference agreement; or

                     (c)  that otherwise affects:

                              (i)  the operation, or proposed operation, of the conference agreement; or

                             (ii)  inwards liner cargo shipping services provided, or proposed to be provided, under the conference agreement.

             (5)  For the purposes of this Part (except where the contrary intention appears), if:

                     (a)  an ancillary service relates to a scheduled cargo shipping service; and

                     (b)  the ancillary service is provided on behalf of the provider of the scheduled cargo shipping service by a third person;

the ancillary service is taken to be provided by the provider of the scheduled cargo shipping service instead of by the third person.

10.02A  Inland terminals

             (1)  The Minister may, by legislative instrument, declare that a specified facility is an inland terminalfor the purposes of this Part.

             (2)  The facility must be in Australia , but outside a designated port area.

             (3)  In making a declaration under subsection (1), the Minister must have regard to the following matters:

                     (a)  whether the facility is under the control of a person who is, or of persons each of whom is:

                              (i)  an ocean carrier; or

                             (ii)  a person who provides services at the facility at the request of an ocean carrier;

                     (b)  whether the facility is used for either or both of the following purposes:

                              (i)  assembling export cargoes for transport to a port terminal located at the port where the cargoes are to be loaded onto ships for export;

                             (ii)  delivering imported cargoes to importers or their representatives;

                     (c)  any other matters that the Minister thinks are relevant.

             (4)  In making a declaration under subsection (1), the Minister must not give preference (within the meaning of section 99 of the Constitution) to one State or part of a State over another State or part of a State.

             (5)  A declaration under subsection (1) has effect accordingly.

10.03  Designated shipper bodies

             (1)  If the Minister is of the opinion that an association represents the interests, in relation to outwards liner cargo shipping services, of Australian shippers generally, the Minister may, by legislative instrument, declare that the association is a designated outwards peak shipper body for the purposes of this Part.

             (2)  If the Minister is of the opinion:

                     (a)  that an association represents the interests, in relation to outwards liner cargo shipping services, of all or any of the following kinds of persons:

                              (i)  Australian shippers in a particular trade;

                             (ii)  Australian shippers of particular kinds of goods;

                            (iii)  shippers in a particular part of Australia ;

                            (iv)  producers of goods of a kind exported, or proposed to be exported, from Australia ; and

                     (b)  that it is desirable that the association be a designated outwards secondary shipper body for the purposes of this Part;

the Minister may, by legislative instrument, declare that the association is a designated outwards secondary shipper body for the purposes of this Part.

          (2A)  If the Minister is of the opinion that an association represents the interests, in relation to inwards liner cargo shipping services, of Australian shippers generally, the Minister may, by legislative instrument, declare that the association is a designated inwards peak shipper body for the purposes of this Part.

          (2B)  If the Minister is of the opinion:

                     (a)  that an association represents the interests, in relation to inwards liner cargo shipping services, of all or any of the following kinds of persons:

                              (i)  Australian shippers in a particular trade;

                             (ii)  Australian shippers of particular kinds of goods;

                            (iii)  shippers in a particular part of Australia ; and

                     (b)  that it is desirable that the association be a designated inwards secondary shipper body for the purposes of this Part;

the Minister may, by legislative instrument, declare that the association is a designated inwards secondary shipper body for the purposes of this Part.

             (3)  Where the Minister declares that an association is a designated outwards peak shipper body, a designated inwards peak shipper body, a designated outwards secondary shipper body or a designated inwards secondary shipper body for the purposes of this Part, the Registrar shall enter particulars of the association in the register of designated shipper bodies.

             (4)  The particulars entered in the register shall include whether the association is a designated outwards peak shipper body, a designated inwards peak shipper body, a designated outwards secondary shipper body or a designated inwards secondary shipper body.

             (5)  The Minister may, by legislative instrument, make guidelines to be applied by the Registrar in the exercise of the Registrar’s powers to nominate designated secondary shipper bodies for the purposes of sections 10.29, 10.41 and 10.52.

             (6)  The Registrar shall enter particulars of any nomination of a designated secondary shipper body for the purposes of section 10.29, 10.41 or 10.52 in the register of designated shipper bodies.


 

Division 2—Additional restrictive trade practice provisions applying to ocean carriers

10.04  Application of section 46 in relation to conference agreements

             (1)  For the purposes of section 46, if the parties to a conference agreement together have a substantial degree of power in a market in which any party to the agreement provides international liner cargo shipping services under the agreement, each party to the conference agreement shall be taken to have a substantial degree of power in the market.

             (2)  In subsection (1):

conference agreement means an agreement between members of a conference in relation to international liner cargo shipping services provided, or proposed to be provided, by them, and includes an agreement that varies such an agreement.


 

Division 3—Minimum standards for conference agreements

10.06  Application of Australian law to outwards conference agreements and withdrawal from agreements

             (1)  An outwards conference agreement must expressly provide for a question arising under the agreement in relation to an outwards liner cargo shipping service provided, or proposed to be provided, under the agreement to be determined in Australia in accordance with Australian law unless the parties and the Minister agree, in writing, to the particular question being otherwise determined.

             (2)  An outwards conference agreement must expressly permit any party to the agreement to withdraw from the agreement on reasonable notice without penalty.

10.07  Minimum levels of shipping services to be specified in conference agreements

             (1)  An outwards conference agreement must contain provisions specifying the minimum level of outwards liner cargo shipping services to be provided under the agreement.

             (2)  An inwards conference agreement must contain provisions specifying the minimum level of inwards liner cargo shipping services to be provided under the agreement.

Note:          See also paragraph 10.33(1)(b) and section 10.72A.

10.08  Conference agreements may include only certain restrictive trade practice provisions

             (1)  If a conference agreement includes a provision:

                    (aa)  that is a provision where the following conditions are satisfied in relation to the provision:

                              (i)  the purpose/effect condition set out in subsection 44ZZRD(2);

                             (ii)  the competition condition set out in subsection 44ZZRD(4); or

                    (ab)  that is a provision where the following conditions are satisfied in relation to the provision:

                              (i)  the purpose condition set out in subsection 44ZZRD(3);

                             (ii)  the competition condition set out in subsection 44ZZRD(4); or

                     (a)  that is an exclusionary provision; or

                     (b)  that has the purpose, or has or is likely to have the effect, of substantially lessening competition (within the meaning of section 45);

the provision, so far as it is covered by paragraph (aa), (ab), (a) or (b), must either:

                     (c)  deal only with the following matters:

                              (i)  the fixing or other regulation of freight rates;

                             (ii)  the pooling or apportionment of earnings, losses or traffic;

                            (iii)  the restriction or other regulation of the quantity or kind of cargo to be carried by parties to the agreement;

                            (iv)  the restriction or other regulation of the entry of new parties to the agreement; or

                     (d)  be necessary for the effective operation of the agreement and of overall benefit to:

                              (i)  in the case of an outwards conference agreement—Australian exporters; or

                             (ii)  in the case of an inwards conference agreement—Australian importers.

             (2)  If a conference agreement includes a provision that permits or requires the practice of exclusive dealing (within the meaning of section 47), the provision, so far as it permits or requires that practice, must be necessary for the effective operation of the agreement and of overall benefit to:

                     (a)  in the case of an outwards conference agreement—Australian exporters; or

                     (b)  in the case of an inwards conference agreement—Australian importers.

Note:          See also paragraph 10.33(1)(ba) and section 10.72A.

             (3)  This section does not apply in relation to a provision of a conference agreement so far as the provision requires or permits a party to the agreement to enter into a loyalty agreement.

10.09  Where may consequences of conference agreements not complying with minimum standards be found?

                   The consequences of a conference agreement not complying with this Division are to be found in the following provisions:

                     (a)  section 10.28 (decision on application for provisional registration);

                     (b)  section 10.33 (decision on application for final registration);

                     (c)  section 10.45 (circumstances in which Minister may exercise powers in relation to registered conference agreements).


 

Division 4—Registers and files and public inspection of them

10.10  Registers and conference agreement files open to public inspection

             (1)  The registers and conference agreement files kept by the Registrar and the Commission under this Part are open to public inspection.

             (2)  A person is entitled, on application to the Registrar or the Commission, as the case requires, and payment of the prescribed fee, to obtain a copy of the whole or any part of:

                     (a)  an entry in a register kept under this Part; or

                     (b)  a conference agreement file kept under this Part.

10.11  What registers are to be kept by the Registrar?

             (1)  The Registrar shall keep:

                     (a)  a register of conference agreements; and

                     (b)  a register of designated shipper bodies; and

                     (c)  a register of non‑conference ocean carriers with substantial market power; and

                     (d)  a register of obligations concerning unfair pricing practices; and

                     (e)  a register of ocean carrier agents; and

                      (f)  a register of exemption orders.

             (2)  An entry in a register must contain such particulars as are prescribed in relation to the register.

10.12  What conference agreement files are to be kept by the Registrar?

             (1)  The Registrar shall keep a file, to be known as the conference agreement file, for each conference agreement (other than a varying conference agreement).

             (2)  The conference agreement file for a conference agreement must include:

                     (a)  documents filed with the Registrar under Division 6 in relation to the agreement or any relevant varying conference agreement (other than any part of a document that is not open to public inspection);

                     (b)  abstracts accepted by the Registrar under section 10.36 in relation to such documents (being abstracts of those parts of the documents that are not open to public inspection); and

                     (c)  notifications given to the Registrar under subsection 10.40(1) or 10.43(1) in relation to the agreement or any relevant varying conference agreement.

10.13  What register is to be kept by the Commission?

             (1)  The Commission shall keep a register of Commission investigations.

             (2)  Subject to section 10.88, the register of Commission investigations shall contain:

                     (a)  references given to the Commission by the Minister under subsections 10.47(1), 10.50(1), 10.57(1) and 10.63(1);

                     (b)  particulars of decisions made by the Commission under subsections 10.48(2), 10.48(2A) and 10.58(2) to hold investigations;

                     (c)  requests made to the Commission by the Minister under subsections 10.48(3) and 10.58(3);

                     (d)  documents given to the Commission in relation to investigations by it under this Part;

                     (e)  particulars of oral submissions made to the Commission in relation to such investigations; and

                      (f)  reports given to the Minister by the Commission in relation to such investigations.


 

Division 5—Exemptions from certain restrictive trade practice prohibitions

Subdivision A—Exemptions relating to conference agreements

10.14  Exemptions apply only to certain activities

             (1)  Subject to this section, the exemptions provided by this Subdivision apply only in relation to the following parts of an outwards liner cargo shipping service or an inwards liner cargo shipping service:

                     (a)  the parts of the service that consist of the transport of the cargo by sea;

                     (b)  stevedoring services;

                     (c)  activities that take place outside Australia .

             (2)  The exemptions provided by this Subdivision extend to the fixing of charges for an inter‑terminal transport service where the service is part of an outwards liner cargo shipping service or an inwards liner cargo shipping service.

             (3)  The exemptions provided by this Subdivision extend to the determination of common terms and conditions for bills of lading for use in relation to an outwards liner cargo shipping service or an inwards liner cargo shipping service.

             (4)  To avoid doubt, the exemptions provided by this Subdivision do not extend to any dealings between the parties to a conference agreement and a person who provides ancillary services on behalf of the provider of a scheduled cargo shipping service.

10.15  When do exemptions commence to apply in relation to registered conference agreements?

             (1)  The exemptions provided by this Subdivision (other than sections 10.17A and 10.18A) apply in relation to the operation of a registered outwards conference agreement only after the end of 30 days after the conference agreement is finally registered.

             (2)  The exemptions provided by this Subdivision (other than sections 10.17A and 10.18A) apply in relation to the operation of a registered inwards conference agreement only after whichever is the later of the following times:

                     (a)  the end of 30 days after the conference agreement is finally registered;

                     (b)  the commencement of Part 2 of Schedule 1 to the Trade Practices Amendment (International Liner Cargo Shipping) Act 2000.

10.16  Exemptions do not apply to variations of conference agreement unless varying agreement registered

                   Where a registered conference agreement is varied or otherwise affected by a varying conference agreement (other than an agreement that consists solely of freight rate charges), the exemptions provided by this Subdivision (other than sections 10.17A and 10.18A) apply only in relation to the operation of the registered conference agreement itself, and not that agreement as varied or otherwise affected, unless the varying conference agreement has been finally registered.

10.17  Exemptions from sections 44ZZRF, 44ZZRG, 44ZZRJ, 44ZZRK and 45

             (1)  Sections 44ZZRF, 44ZZRJ and 45 do not apply in relation to the making of a contract or arrangement, or the arriving at an understanding, if:

                     (a)  the contract, arrangement or understanding is a conference agreement; and

                     (b)  the parties apply for its provisional registration under this Part within 30 days after the making of the contract or arrangement or arriving at the understanding.

             (2)  Sections 44ZZRG, 44ZZRK and 45 do not apply in relation to conduct engaged in by a party to a registered conference agreement so far as the conduct gives effect to a provision of the agreement in relation to an outwards liner cargo shipping service or an inwards liner cargo shipping service.

10.17A  Exemptions from sections 44ZZRF, 44ZZRG, 44ZZRJ, 44ZZRK and 45 for freight rate agreements

             (1)  Sections 44ZZRF, 44ZZRJ and 45 do not apply to the making of freight rate charges in a freight rate agreement if:

                     (a)  the freight rates (including base freight rates, surcharges, rebates and allowances) specified in the freight rate agreement are for outwards liner cargo shipping services provided under a single registered outwards conference agreement after the end of 30 days after the last‑mentioned agreement is finally registered; and

                     (b)  the parties to the freight rate agreement are the same as the parties to the registered outwards conference agreement.

             (2)  Sections 44ZZRF, 44ZZRJ and 45 do not apply to the making of freight rate charges in a freight rate agreement if:

                     (a)  the freight rates (including base freight rates, surcharges, rebates and allowances) specified in the freight rate agreement are for inwards liner cargo shipping services provided under a single registered inwards conference agreement after whichever is the later of the following times:

                              (i)  the end of 30 days after the last‑mentioned agreement is finally registered;

                             (ii)  the commencement of Part 2 of Schedule 1 to the Trade Practices Amendment (International Liner Cargo Shipping) Act 2000; and

                     (b)  the parties to the freight rate agreement are the same as the parties to the registered inwards conference agreement.

             (3)  Sections 44ZZRG, 44ZZRK and 45 do not apply to conduct engaged in by a party to a freight rate agreement, so far as the conduct gives effect to freight rate charges in the freight rate agreement, if:

                     (a)  the freight rates (including base freight rates, surcharges, rebates and allowances) specified in the freight rate agreement are for outwards liner cargo shipping services provided under a single registered outwards conference agreement after the end of 30 days after the last‑mentioned agreement is finally registered; and

                     (b)  the parties to the freight rate agreement are the same as the parties to the registered outwards conference agreement.

             (4)  Sections 44ZZRG, 44ZZRK and 45 do not apply to conduct engaged in by a party to a freight rate agreement, so far as the conduct gives effect to freight rate charges in the freight rate agreement, if:

                     (a)  the freight rates (including base freight rates, surcharges, rebates and allowances) specified in the freight rate agreement are for inwards liner cargo shipping services provided under a single registered inwards conference agreement after whichever is the later of the following times:

                              (i)  the end of 30 days after the last‑mentioned agreement is finally registered;

                             (ii)  the commencement of Part 2 of Schedule 1 to the Trade Practices Amendment (International Liner Cargo Shipping) Act 2000; and

                     (b)  the parties to the freight rate agreement are the same as the parties to the registered inwards conference agreement.

10.18  Exemption from section 47

             (1)  Section 47 does not apply in relation to conduct engaged in by a party to a registered conference agreement so far as the conduct gives effect to a provision of the agreement in relation to an outwards liner cargo shipping service or an inwards liner cargo shipping service.

             (2)  The exemption provided by subsection (1) does not apply in relation to subsections 47(6) and (7).

10.18A  Exemptions from section 47 for freight rate agreements

             (1)  Section 47 does not apply to conduct engaged in by a party to a freight rate agreement, so far as the conduct gives effect to freight rate charges in the freight rate agreement, if:

                     (a)  the freight rates (including base freight rates, surcharges, rebates and allowances) specified in the freight rate agreement are for outwards liner cargo shipping services provided under a single registered outwards conference agreement after the end of 30 days after the last‑mentioned agreement is finally registered; and

                     (b)  the parties to the freight rate agreement are the same as the parties to the registered outwards conference agreement.

             (2)  Section 47 does not apply to conduct engaged in by a party to a freight rate agreement, so far as the conduct gives effect to freight rate charges in the freight rate agreement, if:

                     (a)  the freight rates (including base freight rates, surcharges, rebates and allowances) specified in the freight rate agreement are for inwards liner cargo shipping services provided under a single registered inwards conference agreement after whichever is the later of the following times:

                              (i)  the end of 30 days after the last‑mentioned agreement is finally registered;

                             (ii)  the commencement of Part 2 of Schedule 1 to the Trade Practices Amendment (International Liner Cargo Shipping) Act 2000; and

                     (b)  the parties to the freight rate agreement are the same as the parties to the registered inwards conference agreement.

             (3)  The exemptions provided by subsections (1) and (2) do not apply in relation to subsections 47(6) and (7).

Subdivision B—Exemptions relating to loyalty agreements

10.19  Exemptions from sections 44ZZRF, 44ZZRG, 44ZZRJ, 44ZZRK and 45

             (1)  Sections 44ZZRF, 44ZZRJ and 45 do not apply in relation to the making of a contract or arrangement, or the arriving at an understanding, if the contract, arrangement or understanding is a loyalty agreement.

             (2)  Sections 44ZZRG, 44ZZRK and 45 do not apply in relation to conduct engaged in by a party to a loyalty agreement so far as the conduct gives effect to a provision of the agreement in relation to an outwards liner cargo shipping service or an inwards liner cargo shipping service.

10.20  Exemption from section 47

             (1)  Section 47 does not apply in relation to conduct engaged in by a party to a loyalty agreement in relation to another party to the agreement so far as the conduct gives effect to a provision of the agreement in relation to an outwards liner cargo shipping service or an inwards liner cargo shipping service.

             (2)  The exemption provided by subsection (1) does not apply in relation to subsections 47(6) and (7).

10.21  Exemptions cease to apply in relation to a shipper at the shipper’s option

                   The exemptions provided by this Subdivision in relation to the operation of a loyalty agreement cease to apply in relation to conduct engaged in by an ocean carrier in relation to a shipper if the shipper notifies, as prescribed, the Commission and each ocean carrier who is a party to the agreement that the shipper no longer wishes the exemptions to apply.

Subdivision D—Other exemptions

10.24  Exemptions from sections 44ZZRF, 44ZZRG, 44ZZRJ, 44ZZRK, 45 and 47 in relation to certain negotiations

             (1)  Sections 44ZZRF, 44ZZRJ, 45 and 47 do not apply in relation to conduct engaged in by an ocean carrier, conference, shipper or designated shipper body so far as the conduct relates to the determination of terms and conditions of loyalty agreements.

             (2)  Sections 44ZZRF, 44ZZRG, 44ZZRJ, 44ZZRK, 45 and 47 do not apply in relation to conduct engaged in by an ocean carrier, conference, shipper or designated shipper body so far as the conduct relates to the obligations of an ocean carrier under any of the following provisions:

                     (a)  section 10.29 (parties to conference agreement to negotiate minimum level of shipping services after provisional registration of agreement);

                     (b)  section 10.41 (parties to registered conference agreement to negotiate with certain designated shipper bodies etc.);

                     (c)  section 10.52 (non‑conference ocean carrier with substantial market power to negotiate with certain designated shipper bodies etc.).

             (3)  The exemptions provided by this section do not apply in relation to subsections 47(6) and (7).

10.24A  Exemptions from sections 44ZZRF, 44ZZRG, 44ZZRJ, 44ZZRK, 45 and 47 in relation to stevedoring contracts

             (1)  Sections 44ZZRF, 44ZZRJ and 45 do not apply in relation to the making of a stevedoring contract.

Note:          For stevedoring contract, see subsection (5).

             (2)  Sections 44ZZRG, 44ZZRK, 45 and 47 do not apply in relation to conduct engaged in by a party to a stevedoring contract so far as the conduct gives effect to a provision of the contract.

             (3)  Sections 44ZZRF, 44ZZRJ, 45 and 47 do not apply in relation to conduct engaged in by an ocean carrier or a stevedoring operator so far as the conduct relates to the determination of terms and conditions of a stevedoring contract.

Note:          For stevedoring operator, see subsection (5).

          (3A)  The exemptions provided by this section do not extend to any dealings between stevedoring operators.

             (4)  The exemptions provided by this section do not apply in relation to subsections 47(6) and (7).

             (5)  In this section:

stevedoring contract means a contract between:

                     (a)  an ocean carrier; and

                     (b)  a stevedoring operator;

under which the stevedoring operator provides, or arranges for the provision of, stevedoring services to the ocean carrier in connection with cargo transported on international liner cargo shipping services provided by the ocean carrier.

stevedoring operator means a person who:

                     (a)  provides, or proposes to provide; or

                     (b)  arranges for the provision of, or proposes to arrange for the provision of;

stevedoring services in connection with cargo transported on international liner cargo shipping services.


 

Division 6—Registration of conference agreements

Subdivision A—Provisional registration

10.25  Application for provisional registration of conference agreement

             (1)  The parties to a conference agreement may apply for its provisional registration under this Part.

             (2)  The application must comply with the following provisions:

                     (a)  subsections 10.26(1) and (2) (how application is to be made and verified);

                     (b)  section 10.27 (copy of agreement to be filed with application etc.).

10.26  How application is to be made and verified

             (1)  An application for the provisional registration of a conference agreement must be:

                     (a)  in the appropriate prescribed form;

                     (b)  made to the Registrar in accordance with the regulations; and

                     (c)  accompanied by the appropriate prescribed fee.

             (2)  The application must comply with any regulations requiring its verification (in whole or part) by or on behalf of the applicants.

             (3)  The application may be made by a party to the agreement on behalf of the party and other parties to the agreement.

10.27  Copy of agreement to be filed with application etc.

             (1)  Subject to subsections (1A) and (1B), an application for the provisional registration of a conference agreement must be accompanied by:

                     (a)  a complete copy of the agreement so far as it is in writing (including all provisions of the agreement so far as they are in writing); and

                     (b)  a written memorandum that fully sets out the agreement so far as it is not in writing (including all provisions of the agreement so far as they are not in writing);

other than any parts of the agreement that relate to the minimum level of:

                     (c)  in the case of an outwards conference agreement—outwards liner cargo shipping services to be provided under the agreement or an outwards conference agreement that is varied or otherwise affected by the agreement; or

                     (d)  in the case of an inwards conference agreement—inwards liner cargo shipping services to be provided under the agreement or an inwards conference agreement that is varied or otherwise affected by the agreement.

          (1A)  The copy of the agreement referred to in paragraph (1)(a) need not include the freight rate charges in the agreement.

          (1B)  The written memorandum referred to in paragraph (1)(b) need not include the freight rate charges in the agreement.

             (2)  A document that accompanies an application for the provisional registration of a conference agreement must comply with any regulations requiring its verification (in whole or part) by or on behalf of the applicants.

10.27A  Copy of conference agreement to be given to designated peak shipper body

             (1)  If:

                     (a)  the parties to an outwards conference agreement apply for its provisional registration; and

                     (b)  at the time of the application, there is a designated outwards peak shipper body;

the parties must give the designated outwards peak shipper body a copy of:

                     (c)  the complete copy of the agreement referred to in paragraph 10.27(1)(a); and

                     (d)  the written memorandum referred to in paragraph 10.27(1)(b);

as soon as practicable after the application is made.

             (2)  If:

                     (a)  the parties to an inwards conference agreement apply for its provisional registration; and

                     (b)  at the time of the application, there is a designated inwards peak shipper body;

the parties must give the designated inwards peak shipper body a copy of:

                     (c)  the complete copy of the agreement referred to in paragraph 10.27(1)(a); and

                     (d)  the written memorandum referred to in paragraph 10.27(1)(b);

as soon as practicable after the application is made.

10.28  Decision on application for provisional registration

             (1)  If the Registrar is satisfied:

                     (a)  that an application has properly been made for the provisional registration of a conference agreement; and

                    (aa)  in the case of an outwards conference agreement—that subsection 10.27A(1) has been complied with, or does not apply to the agreement; and

                    (ab)  in the case of an inwards conference agreement—that subsection 10.27A(2) has been complied with, or does not apply to the agreement; and

                     (b)  in the case of an outwards conference agreement—that the agreement complies with section 10.06 (application of Australian law to outwards conference agreements and withdrawal from agreements) or, if the agreement varies or otherwise affects another conference agreement, that the other conference agreement as varied or affected complies with that section; and

                    (ba)  in the case of an inwards conference agreement that was in force at the commencement of this paragraph—that there are no circumstances that, under the regulations, are taken to be special circumstances for the purposes of this paragraph; and

                     (c)  that provisional registration of the agreement is not prevented by one or more of the following provisions:

                              (i)  section 10.38 (application for registration to be returned where request for confidentiality refused etc.);

                             (ii)  section 10.39 (application also to be made for registration of varying agreements);

                            (iii)  subsection 10.40(1) (notification of happening of affecting events prior to final registration etc.);

the Registrar shall, within 14 days after the making of the application, provisionally register the agreement by entering in the register of conference agreements:

                     (d)  particulars of the agreement; and

                     (e)  a notation to the effect that the agreement has been provisionally registered.

             (2)  If the Registrar is not so satisfied, the Registrar shall, within that 14 day period, refuse to provisionally register the agreement.

             (3)  When the Registrar provisionally registers the agreement or refuses to provisionally register the agreement, the Registrar shall immediately notify the applicants.

             (4)  If the Registrar provisionally registers the agreement, the Registrar must give the Commission a copy of:

                     (a)  the complete copy of the agreement referred to in paragraph 10.27(1)(a); and

                     (b)  the written memorandum referred to in paragraph 10.27(1)(b).

10.29  Parties to conference agreement to negotiate minimum level of shipping services after provisional registration of agreement

             (1)  The parties to a provisionally registered outwards conference agreement shall:

                     (a)  take part in negotiations with the designated outwards peak shipper bodies or, if there is not at that time a designated outwards peak shipper body, the designated outwards secondary shipper bodies nominated by the Registrar for the purposes of the agreement for the purposes of this section, in relation to the minimum level of outwards liner cargo shipping services to be provided under the agreement (including any provisions of the agreement that affect the level of those services) and consider the matters raised, and representations made, by the shipper bodies;

                     (b)  if a shipper body requests the parties to make available for the purposes of the negotiations any information reasonably necessary for those purposes and itself makes available for those purposes any such information requested by the parties—make the information available to the shipper body; and

                     (c)  provide an authorised officer with such information as the officer requires relating to the negotiations, notify an authorised officer of meetings to be held in the course of the negotiations, permit an authorised officer to be present at the meetings, and consider suggestions made by an authorised officer.

          (1A)  The parties to a provisionally registered inwards conference agreement must:

                     (a)  take part in negotiations with:

                              (i)  the designated inwards peak shipper bodies; or

                             (ii)  if there is not at that time a designated inwards peak shipper body—the designated inwards secondary shipper bodies nominated by the Registrar for the purposes of the agreement for the purposes of this section;

                            in relation to the minimum level of inwards liner cargo shipping services to be provided under the agreement (including any provisions of the agreement that affect the level of those services) and consider the matters raised, and representations made, by the shipper bodies; and

                     (b)  if a shipper body requests the parties to make available for the purposes of the negotiations any information reasonably necessary for those purposes and itself makes available for those purposes any such information requested by the parties—make the information available to the shipper body; and

                     (c)  provide an authorised officer with such information as the officer requires relating to the negotiations, notify an authorised officer of meetings to be held in the course of the negotiations, permit an authorised officer to be present at the meetings, and consider suggestions made by an authorised officer.

          (1B)  Subsections (1) and (1A) do not apply in relation to a conference agreement unless, within 14 days after the provisional registration of the agreement, the shipper bodies notify, as prescribed, the Registrar and the parties to the agreement that they wish to have negotiations in relation to the agreement.

             (2)  Subsections (1) and (1A) do not apply in relation to a conference agreement if the shipper bodies notify, as prescribed, the Registrar and the parties to the agreement that they do not wish to have negotiations in relation to the agreement.

             (3)  The nomination of a designated secondary shipper body for the purposes of a provisionally registered conference agreement must be made by written notice given to the parties to the agreement.

Subdivision B—Final registration

10.30  Application for final registration of conference agreement

             (1)  The parties to a provisionally registered conference agreement may apply for its final registration under this Part.

             (2)  The application must comply with the following provisions:

                     (a)  subsections 10.31(1) and (2) (how application is to be made and verified);

                     (b)  section 10.32 (copy of agreement to be filed with application etc.).

10.31  How application is to be made and verified

             (1)  An application for the final registration of a conference agreement must be:

                     (a)  in the appropriate prescribed form;

                     (b)  made to the Registrar in accordance with the regulations; and

                     (c)  accompanied by the appropriate prescribed fee.

             (2)  The application must comply with any regulations requiring its verification (in whole or part) by or on behalf of the applicants.

             (3)  The application may be made by a party to the agreement on behalf of the party and other parties to the agreement.

10.32  Copy of agreement to be filed with application etc.

             (1)  Subject to subsections (1A) and (1B), an application for the final registration of a conference agreement must be accompanied by:

                     (a)  a complete copy of the agreement so far as it is in writing (including all provisions of the agreement so far as they are in writing); and

                     (b)  a written memorandum that fully sets out the agreement so far as it is not in writing (including all provisions of the agreement so far as they are not in writing).

          (1A)  The copy of the agreement referred to in paragraph (1)(a) need not include the freight rate charges in the agreement.

          (1B)  The written memorandum referred to in paragraph (1)(b) need not include the freight rate charges in the agreement.

             (2)  A document that accompanies an application for the final registration of a conference agreement must comply with any regulations requiring its verification (in whole or part) by or on behalf of the applicants.

10.33  Decision on application for final registration

             (1)  If the Registrar is satisfied:

                     (a)  that an application has properly been made for the final registration of a conference agreement; and

                     (b)  any of the following subparagraphs applies:

                              (i)  that the agreement complies with section 10.07 (minimum levels of shipping services to be specified in conference agreements) or, if the agreement varies or otherwise affects another conference agreement, that the other conference agreement as varied or affected complies with section 10.07;

                             (ii)  that section 10.07 does not apply in relation to the agreement because of an exemption order;

                            (iii)  that the agreement is an inwards conference agreement that was in force at the commencement of this subparagraph; and

                    (ba)  any of the following subparagraphs applies:

                              (i)  that the agreement complies with section 10.08 (conference agreements may include only certain restrictive trade practice provisions) or, if the agreement varies or otherwise affects another conference agreement, that the other conference agreement as varied or affected complies with section 10.08;

                             (ii)  that section 10.08 does not apply in relation to the agreement because of an exemption order;

                            (iii)  that the agreement is an inwards conference agreement that was in force at the commencement of this subparagraph; and

                     (c)  in the case of an outwards conference agreement—that subsection 10.29(1) (parties to conference agreement to negotiate minimum level of shipping services after provisional registration of agreement) has been complied with, or does not apply, in relation to the agreement; and

                    (ca)  in the case of an inwards conference agreement—that subsection 10.29(1A) (parties to conference agreement to negotiate minimum level of shipping services after provisional registration of agreement) has been complied with, or does not apply, in relation to the agreement; and

                     (d)  that final registration of the agreement is not prevented by one or more of the following provisions:

                              (i)  section 10.38 (application for registration to be returned where request for confidentiality refused etc.);

                             (ii)  section 10.39 (application also to be made for registration of varying conference agreements);

                            (iii)  subsection 10.40(1) (notification of happening of affecting events prior to final registration etc.);

the Registrar shall, within 14 days after the making of the application, finally register the agreement by entering in the register of conference agreements a notation to the effect that the agreement has been finally registered.

             (2)  If the Registrar is not so satisfied, the Registrar shall, within that 14 day period, refuse to finally register the agreement.

             (3)  When the Registrar finally registers the agreement or refuses to finally register the agreement, the Registrar shall immediately notify the applicants.

             (4)  If the Registrar finally registers the agreement, the Registrar must give the Commission a copy of:

                     (a)  the complete copy of the agreement referred to in paragraph 10.32(1)(a); and

                     (b)  the written memorandum referred to in paragraph 10.32(1)(b).

Subdivision C—Confidentiality requests

10.34  Request for confidentiality

             (1)  An application for the provisional or final registration of a conference agreement may include a request that a specified part of the application, or of a document accompanying the application, not be open to public inspection under this Part.

             (2)  If such a request is included in the application, the application must include a statement of reasons in support of the request.

10.35  Abstract to accompany request for confidentiality

             (1)  Where a request is made under section 10.34 that a part of the application in which the request is included, or of a document accompanying the application, not be open to public inspection under this Part, the application must be accompanied by an abstract of the part of the application or other document in relation to which the request is made.

             (2)  The abstract must:

                     (a)  be in the appropriate prescribed form; and

                     (b)  comply with any regulations requiring its verification (in whole or part) by or on behalf of the applicants.

10.36  Examination of abstract

             (1)  Where:

                     (a)  a request is properly made under section 10.34 that a part of a document not be open to public inspection under this Part; and

                     (b)  the request is accompanied by an abstract of the part of the document;

the Registrar shall first determine whether to accept the abstract.

             (2)  If the Registrar is satisfied:

                     (a)  that the abstract adequately describes the scope of the part of the document; and

                     (b)  that the abstract complies with subsection 10.35(2);

the Registrar shall accept the abstract.

             (3)  If the Registrar is not so satisfied, the Registrar shall:

                     (a)  refuse to accept the abstract; and

                     (b)  refuse the request and immediately notify the applicants of the decision.

10.37  Decision on request for confidentiality

             (1)  If:

                     (a)  the Registrar is satisfied that a request has properly been made under section 10.34 that a part of a document not be open to public inspection under this Part;

                     (b)  the Registrar has, under section 10.36, accepted an abstract for the part of the document; and

                     (c)  the Registrar is also satisfied, on the basis of the statement of reasons in support of the request that is included in the application for provisional or final registration of the conference agreement concerned:

                              (i)  in the case of an outwards conference agreement—that granting the request would not disadvantage Australian exporters; and

                            (ia)  in the case of an inwards conference agreement—that granting the request would not disadvantage Australian importers; and

                             (ii)  that the request is justified because disclosure of the part of the document would disclose:

                                        (A) trade secrets;

                                        (B)  information (other than trade secrets) having a commercial value that would be, or could reasonably be expected to be, destroyed or diminished if the information were disclosed; or

                                        (C)  any other information concerning a person in relation to the person’s business or professional affairs, or concerning the business, commercial or financial affairs of an organisation or undertaking, the disclosure of which would, or could reasonably be expected to, unreasonably affect the person adversely in relation to the person’s lawful business or professional affairs or the organisation or undertaking in relation to its lawful business, commercial or financial affairs;

the Registrar shall, within 14 days after the making of the request, direct that the part of the document not be open to public inspection under this Part.

             (2)  If the Registrar is not so satisfied, the Registrar shall, within that 14 day period, refuse the request and immediately notify the applicants of the decision.

10.38  Application for registration to be returned where request for confidentiality refused etc.

Where:

                     (a)  an application for the provisional or final registration of a conference agreement includes a request under section 10.34 that a part of a document not be open to public inspection under this Part; and

                     (b)  the request is refused by the Registrar;

the Registrar shall also refuse the application, and shall return the application, and any documents that accompanied the application, to the applicants.

Subdivision D—Miscellaneous

10.39  Application also to be made for registration of varying conference agreements

             (1)  Subject to subsection (2), if:

                     (a)  application has been made for the provisional or final registration of a conference agreement (in this section called the original agreement), but the original agreement has not been finally registered; and

                     (b)  another conference agreement that varies or otherwise affects the original agreement is or has been made or arrived at;

the Registrar shall not provisionally or finally register the original agreement unless application has been made for the provisional registration of the other conference agreement.

             (2)  Subsection (1) does not apply if the conference agreement referred to in paragraph (1)(b) consists solely of freight rate charges.

10.40  Notification of happening of affecting events prior to final registration etc.

             (1)  If:

                     (a)  application has been made for the provisional or final registration of a conference agreement, but the agreement has not been finally registered; and

                     (b)  either of the following subparagraphs applies:

                              (i)  the proposed operation of the conference agreement is affected, or outwards liner cargo shipping services or inwards liner cargo shipping services proposed to be provided under the agreement are affected, by the happening of an event or otherwise than by a varying conference agreement;

                             (ii)  parties to the conference agreement have made or arrived at an agreement with other ocean carriers that affects outwards liner cargo shipping services or inwards liner cargo shipping services provided, or that would, but for the agreement, have been provided, by the other ocean carriers;

the Registrar shall not provisionally or finally register the original agreement unless the parties to the agreement have notified the Registrar of the matter.

             (2)  The notice must be:

                     (a)  in the appropriate prescribed form; and

                     (b)  given to the Registrar in accordance with the regulations.

             (3)  The notice must comply with any regulations requiring its verification (in whole or part).

             (4)  Where the parties to a conference agreement give a notice under subsection (1), the Registrar may make such variations (if any) to the particulars entered in the register of conference agreements in relation to the agreement as the Registrar considers necessary or desirable to take account of the notice.


 

Division 7—Obligations of ocean carriers in relation to registered conference agreements

10.41  Parties to registered conference agreement to negotiate with certain designated shipper bodies etc.

             (1)  The parties to a registered conference agreement shall:

                     (a)  take part in negotiations with a relevant designated shipper body in relation to negotiable shipping arrangements (including any provisions of the agreement that affect those arrangements) whenever reasonably requested by the shipper body, and consider the matters raised, and representations made, by the shipper body;

                     (b)  if the shipper body requests the parties to make available for the purposes of the negotiations any information reasonably necessary for those purposes and itself makes available for those purposes any such information requested by the parties—make the information available to the shipper body; and

                     (c)  provide an authorised officer with such information as the officer requires relating to the negotiations, notify an authorised officer of meetings to be held in the course of the negotiations, permit an authorised officer to be present at the meetings, and consider suggestions made by an authorised officer.

             (2)  The parties to the agreement shall give each relevant designated shipper body at least 30 days notice of any change in negotiable shipping arrangements unless the shipper body agrees to a lesser period of notice for the change.

             (3)  In this section:

eligible Australian contract means:

                     (a)  a contract entered into in Australia ; or

                     (b)  a contract where questions arising under the contract are to be determined in accordance with Australian law.

freight rates includes base freight rates, surcharges, rebates and allowances.

negotiable shipping arrangements:

                     (a)  in relation to an outwards conference agreement—means the arrangements for, or the terms and conditions applicable to, outwards liner cargo shipping services provided, or proposed to be provided, under the conference agreement (including, for example, freight rates, charges for inter‑terminal transport services, frequency of sailings and ports of call); or

                     (b)  in relation to an inwards conference agreement—means:

                              (i)  the arrangements for, or the terms and conditions applicable to, inwards liner cargo shipping services provided, or proposed to be provided, under the conference agreement (including, for example, freight rates, charges for inter‑terminal transport services, frequency of sailings and ports of call), where those arrangements or those terms and conditions, as the case may be, are embodied in an eligible Australian contract; or

                             (ii)  the arrangements for, or the terms and conditions applicable to, the parts of the inwards liner cargo shipping services provided, or proposed to be provided, under the conference agreement that consist of activities that take place on land in Australia (including, for example, terminal handling charges and charges for inter‑terminal transport services).

relevant designated shipper body:

                     (a)  in relation to an outwards conference agreement—means:

                              (i)  a designated outwards peak shipper body; or

                             (ii)  a designated outwards secondary shipper body nominated by the Registrar (by written notice given to the parties to the agreement) for the purposes of the agreement for the purposes of this section; or

                     (b)  in relation to an inwards conference agreement—means:

                              (i)  a designated inwards peak shipper body; or

                             (ii)  a designated inwards secondary shipper body nominated by the Registrar (by written notice given to the parties to the agreement) for the purposes of the agreement for the purposes of this section.

10.42  Application to be made for registration of varying conference agreements

             (1)  Subject to subsection (3), where a conference agreement that varies or otherwise affects a registered conference agreement is made or arrived at, application shall be made for its provisional registration.

             (2)  The application must be made within 30 days after the making of or arriving at the agreement.

             (3)  Subsection (1) does not apply to a conference agreement that consists solely of freight rate charges.

10.43  Parties to registered conference agreement to notify happening of affecting events etc.

             (1)  Where:

                     (a)  the operation, or proposed operation, of a registered conference agreement is affected, or outwards liner cargo shipping services or inwards liner cargo shipping services provided, or proposed to be provided, under the agreement are affected, by the happening of an event or otherwise than by a varying conference agreement; or

                     (b)  parties to a registered conference agreement make or arrive at an agreement with other ocean carriers that affects outwards liner cargo shipping services or inwards liner cargo shipping services provided, or that would, but for the agreement, have been provided, by the other ocean carriers;

the parties to the registered conference agreement shall notify the Registrar of the matter.

             (2)  The notice must be:

                     (a)  in the appropriate prescribed form; and

                     (b)  given to the Registrar in accordance with the regulations within 30 days after the operation, or proposed operation, of the agreement is affected, the services are affected or the agreement is made or arrived at, as the case may be.

             (3)  The notice must comply with any regulations requiring its verification (in whole or part).

             (4)  Where the parties to a registered conference agreement give a notice under subsection (1), the Registrar may make such variations (if any) to the particulars entered in the register of conference agreements in relation to the agreement as the Registrar considers necessary or desirable to take account of the notice.


 

Division 8—Powers of Minister in relation to registered conference agreements

10.44  Powers exercisable by Minister in relation to registered conference agreements etc.

             (1)  Subject to sections 10.45 and 10.46, the Minister may direct the Registrar:

                     (a)  to cancel the registration of a registered conference agreement; or

                     (b)  to cancel the registration of a registered conference agreement so far as it relates to:

                              (i)  a particular provision of the agreement;

                             (ii)  a particular party to the agreement; or

                            (iii)  particular conduct.

             (2)  Where the Minister gives a direction under subsection (1), the Registrar shall immediately enter particulars of the direction in the register of conference agreements.

             (3)  On the entry in the register of conference agreements of particulars of a direction to cancel the registration of a registered conference agreement, the exemptions provided by Subdivision A of Division 5 cease to apply in relation to the agreement.

             (4)  On the entry in the register of conference agreements of particulars of a direction to cancel the registration of a registered conference agreement so far as it relates to a particular provision of the agreement, the exemptions provided by Subdivision A of Division 5 cease to apply in relation to the provision.

             (5)  On the entry in the register of conference agreements of particulars of a direction to cancel the registration of a registered conference agreement so far as it relates to a particular party to the agreement, the exemptions provided by Subdivision A of Division 5 cease to apply in relation to the party.

             (6)  On the entry in the register of conference agreements of particulars of a direction to cancel the registration of a registered conference agreement so far as it relates to particular conduct, the exemptions provided by Subdivision A of Division 5 cease to apply in relation to conduct of that kind in relation to the agreement.

             (7)  A direction under subsection (1) must be given in writing, and the Registrar shall serve a copy of the direction on the parties to the conference agreement concerned.

             (8)  If:

                     (a)  the Commission reports to the Minister under section 10.47 or 10.48 in relation to either or both of the matters referred to in subparagraphs 10.45(1)(a)(viii) and (ix); and

                     (b)  after taking the report into account, the Minister is satisfied of either or both of those matters and decides to give a direction under subsection (1);

the Minister must:

                     (c)  prepare a statement about the decision; and

                     (d)  cause:

                              (i)  a copy of the statement; and

                             (ii)  a copy of the Commission’s report;

                            to be laid before each House of the Parliament within 15 sittings days of that House after the decision was made.

10.45  Circumstances in which Minister may exercise powers in relation to registered conference agreements

             (1)  The Minister shall not give a direction under subsection 10.44(1) in relation to a registered conference agreement unless:

                     (a)  the Minister is satisfied of one or more of the following matters:

                              (i)  in the case of an outwards conference agreement—that the agreement does not comply with section 10.06 (application of Australian law to outwards conference agreements and withdrawal from agreements);

                            (ia)  that section 10.07 (minimum levels of shipping services to be specified in conference agreements) applies to the agreement, and that the agreement does not comply with that section;

                            (ib)  that section 10.08 (conference agreements may include only certain restrictive trade practice provisions) applies to the agreement, and that the agreement does not comply with that section;

                             (ii)  that section 10.41 (parties to registered conference agreement to negotiate with certain designated shipper bodies etc.) applies to the parties to the agreement, and that the parties have contravened, or propose to contravene, that section;

                           (iia)  that parties to the agreement have contravened, or propose to contravene, subsection 10.43(1) (parties to registered conference agreement to notify happening of affecting events etc.);

                            (iii)  that section 10.42 (application to be made for registration of varying conference agreements) has not been complied with in relation to a conference agreement that varies or otherwise affects the agreement;

                            (iv)  that parties to the agreement have given effect to or applied, or propose to give effect to or apply, the agreement without due regard to the need for outwards liner cargo shipping services or inwards liner cargo shipping services provided under the agreement to be:

                                        (A)  efficient and economical; and

                                        (B)  provided at the capacity and frequency reasonably required to meet the needs of shippers who use, and shippers who may reasonably be expected to need to use, the services;

                             (v)  in the case of an outwards conference agreement—that parties to the agreement have given effect to or applied, or propose to give effect to or apply, the agreement in a manner that prevents or hinders an Australian flag shipping operator from engaging efficiently in the provision of outwards liner cargo shipping services to an extent that is reasonable;

                            (vi)  that provisional or final registration of the agreement was granted on the basis of a statement or information that was false or misleading in a material particular;

                           (vii)  that parties to the agreement have breached an undertaking given by the parties to the agreement under section 10.49;

                           (viii)  that subsection (3) applies to parties to the agreement;

                            (ix)  that subsection (4) applies to parties to the agreement; and

                    (aa)  if the Minister is satisfied of either or both of the matters referred to in subparagraphs (1)(a)(viii) and (ix)—at least 21 days before giving the direction, the Minister served on each party to the agreement a written notice of his or her intention to give the direction; and

                     (b)  the Minister has carried on or attempted to carry on, either personally or through authorised officers, consultations with the parties to the agreement directed at obtaining an undertaking or action by the parties that would have made a direction under subsection 10.44(1) unnecessary; and

                     (c)  either of the following subparagraphs applies:

                              (i)  the Commission has reported to the Minister under section 10.47 or 10.48 in relation to matters referred to in paragraph (a) of which the Minister is satisfied and the Minister has taken the report into account;

                             (ii)  the Minister is satisfied that the special circumstances of the case make it desirable to give the direction before he or she receives such a report from the Commission.

             (2)  For the purposes of subparagraph (1)(a)(v), in determining what is reasonable, have regard to:

                     (a)  the national interest; and

                     (b)  the interests of the following:

                              (i)  Australian shippers generally;

                             (ii)  Australian shippers in a particular trade;

                            (iii)  Australian shippers of particular kinds of goods;

                            (iv)  shippers in a particular part of Australia ; and

                     (c)  any other relevant matters.

             (3)  This subsection applies to the parties to a registered conference agreement if:

                     (a)  the agreement includes a provision that is covered by paragraph 10.08(1)(aa) or (b); and

                     (b)  the parties to the agreement have engaged in conduct, or propose to engage in conduct, to give effect to or apply the provision; and

                     (c)  that conduct or proposed conduct has not resulted in, or is unlikely to result in, a benefit to the public that outweighs the detriment to the public constituted by any lessening of competition that:

                              (i)  has resulted, or is likely to result, from the conduct; or

                             (ii)  would result, or be likely to result, if the proposed conduct were engaged in; and

                     (d)  there are exceptional circumstances that warrant the giving of a direction under subsection 10.44(1).

             (4)  This subsection applies to the parties to a registered conference agreement if:

                     (a)  the parties to the agreement have prevented, or are proposing to prevent, the entry of a prospective party to the agreement; and

                     (b)  the prevention or proposed prevention is unreasonable; and

                     (c)  the prevention or proposed prevention is contrary to the interests of any or all of the following:

                              (i)  Australian shippers generally;

                             (ii)  Australian shippers in a particular trade;

                            (iii)  Australian shippers of particular kinds of goods;

                            (iv)  shippers in a particular part of Australia ;

                             (v)  in the case of an outwards conference agreement—producers of goods of a kind exported, or proposed to be exported, from Australia .

10.46  Action to be taken where powers exercised by Minister without first obtaining Commission report

             (1)  Where the Minister gives a direction under subsection 10.44(1) before receiving a report under section 10.47 or 10.48 in relation to matters referred to in paragraph 10.45(1)(a) of which the Minister was satisfied before giving the direction, the Minister shall immediately refer the matters to the Commission under section 10.47.

             (2)  The Commission shall report to the Minister within a period of not more than 60 days in relation to those matters and any other matters that the Commission is then investigating under this Division in relation to the conference agreement concerned.

             (3)  If, after taking the Commission’s report into account, the Minister is satisfied of one or more of the matters referred to in paragraph 10.45(1)(a), the Minister may, within 21 days after receiving the Commission’s report, direct the Registrar not to take action under subsection (4) in relation to the agreement, and may also give such further directions under subsection 10.44(1) in relation to the agreement as the Minister considers appropriate.

             (4)  The Registrar shall delete the particulars of the direction under subsection 10.44(1) from the register of conference agreements at the end of 21 days after the Minister receives the Commission’s report unless the Minister has given a direction under subsection (3) in relation to the agreement.

             (5)  On the deletion of the particulars of the direction, Subdivision A of Division 5 applies in relation to the agreement to the extent to which it would have applied but for the entry of the particulars.

             (6)  Subsection (1) shall not be taken by implication to limit the matters that may be referred to the Commission under section 10.47.

             (7)  A direction under subsection (3) must be given in writing, and the Registrar must serve a copy of the direction on the parties to the conference agreement concerned.

             (8)  If, after taking the Commission’s report into account:

                     (a)  the Minister is satisfied of either or both of the matters referred to in subparagraphs 10.45(1)(a)(viii) and (ix); and

                     (b)  the Minister decides to give a direction under subsection (3);

the Minister must:

                     (c)  prepare a statement about the decision; and

                     (d)  cause:

                              (i)  a copy of the statement; and

                             (ii)  a copy of the Commission’s report;

                            to be laid before each House of the Parliament within 15 sittings days of that House after the decision was made.

10.47  Investigation and report by Commission on reference by Minister

             (1)  The Minister may refer to the Commission for investigation and report the question whether grounds exist for the Minister to be satisfied in relation to a registered conference agreement of one or more specified matters referred to in paragraph 10.45(1)(a).

             (2)  The Commission shall hold an investigation into the question and report to the Minister.

             (3)  In its investigation, the Commission shall give special consideration to any matters specified in the reference as matters to be given special consideration by the Commission.

10.48  Investigation and report by Commission on own initiative or on application by affected person

             (1)  A person affected by the operation of a registered conference agreement may apply to the Commission for an investigation into the question whether grounds exist for the Minister to be satisfied in relation to the agreement of one or more specified matters referred to in paragraph 10.45(1)(a).

             (2)  If subsection (1) applies, the Commission may hold an investigation into the question, and, if it decides to do so, it shall inform the Minister of its decision and report to the Minister.

          (2A)  The Commission may, on its own initiative, hold an investigation into the question whether grounds exist for the Minister to be satisfied in relation to a registered conference agreement of either or both of the matters referred to in subparagraphs 10.45(1)(a)(viii) and (ix).

          (2B)  If subsection (2A) applies, the Commission must inform the Minister of its decision to hold an investigation and report to the Minister.

             (3)  In its investigation, the Commission shall give special consideration to such matters (if any) as the Minister requests it to give special consideration.

             (4)  A request under subsection (3) must be made in writing.

             (5)  Without limiting subsection (1), each of the following persons shall be taken to be a person affected by the operation of a registered conference agreement:

                     (a)  a party to the agreement;

                     (b)  a designated shipper body;

                     (c)  in the case of an outwards conference agreement—an Australian flag shipping operator;

                     (d)  a shipper who uses, or may reasonably be expected to need to use, outwards liner cargo shipping services or inwards liner cargo shipping services provided, or proposed to be provided, under the agreement;

                     (e)  an association representing shippers who use, or may reasonably be expected to need to use, such services.

10.49  Undertakings by parties to registered conference agreement

             (1)  The parties to a registered conference agreement may, at any time, offer to give an undertaking to do, or not to do, a specified act or thing.

             (2)  The offer must be:

                     (a)  in the appropriate prescribed form; and

                     (b)  made to the Minister in accordance with the regulations.

             (3)  If the Minister accepts the offer, the Minister may do one or more of the following:

                     (a)  revoke any reference made to the Commission under section 10.47 in relation to the agreement;

                     (b)  direct the Commission, in writing, to cease holding any investigation being held by it under section 10.48 in relation to the agreement;

                     (c)  revoke any direction given under subsection 10.44(1) in relation to the agreement.

             (4)  If the Minister accepts the offer, the parties shall be taken to have given the undertaking, and the Registrar shall immediately register the undertaking by entering particulars of it in the register of conference agreements.

             (5)  If the Minister revokes a direction given under subsection 10.44(1), the Registrar shall immediately include in the register a notation to the effect that the direction has been revoked.

             (6)  On the inclusion of the notation, Subdivision A of Division 5 applies in relation to the agreement to the extent to which it would have applied but for the entry of the particulars of the direction.

10.49A  Enforcement of undertakings

             (1)  A party to a registered conference agreement must not contravene an undertaking given under section 10.49.

             (2)  Part VI applies in relation to subsection (1) as if that subsection were a provision of Part IV.


 

Division 9—Obligations of non‑conference ocean carriers with substantial market power

10.50  Investigations by Commission into market power of ocean carriers

             (1)  The Minister may refer to the Commission for investigation and report the question whether an ocean carrier has a substantial degree of market power in the provision of outwards liner cargo shipping services or inwards liner cargo shipping services on a trade route otherwise than because the ocean carrier is a party to a conference agreement.

             (2)  The Commission shall hold an investigation into the question and report to the Minister.

             (3)  In its investigation, the Commission shall give special consideration to any matters specified in the reference as matters to be given special consideration by the Commission.

10.51  Determination by Minister of market power of ocean carriers

             (1)  Where:

                     (a)  the Commission reports to the Minister under section 10.50 that an ocean carrier has a substantial degree of market power in the provision of outwards liner cargo shipping services or inwards liner cargo shipping services on a trade route otherwise than because the ocean carrier is a party to a conference agreement; or

                     (b)  an ocean carrier agrees, in writing, to the Minister giving a direction under this subsection in relation to the ocean carrier in relation to a trade route;

the Minister may direct the Registrar to register the ocean carrier as a non‑conference ocean carrier with substantial market power in relation to the trade route.

             (2)  Where the Minister gives a direction under subsection (1), the Registrar shall immediately enter particulars of the ocean carrier and the trade route in the register of non‑conference ocean carriers with substantial market power.

             (3)  A direction under subsection (1) must be in writing, and the Registrar shall serve a copy of the direction on the ocean carrier concerned.

10.52  Non‑conference ocean carrier with substantial market power to negotiate with certain designated shipper bodies etc.

             (1)  A registered non‑conference ocean carrier with substantial market power shall:

                     (a)  take part in negotiations with a relevant designated shipper body in relation to negotiable shipping arrangements whenever reasonably requested by the shipper body, and consider the matters raised, and representations made, by the shipper body;

                     (b)  if the shipper body requests the ocean carrier to make available for the purposes of the negotiations any information reasonably necessary for those purposes and itself makes available for those purposes any such information requested by the ocean carrier—make the information available to the shipper body; and

                     (c)  provide an authorised officer with such information as the officer requires relating to the negotiations, notify an authorised officer of meetings to be held in the course of the negotiations, permit an authorised officer to be present at the meetings, and consider suggestions made by an authorised officer.

             (2)  The ocean carrier shall give each relevant designated shipper body at least 30 days notice of any change in negotiable shipping arrangements unless the shipper body agrees to a lesser period of notice for the change.

             (3)  In this section:

eligible Australian contract means:

                     (a)  a contract entered into in Australia ; or

                     (b)  a contract where questions arising under the contract are to be determined in accordance with Australian law.

freight rates includes base freight rates, surcharges, rebates and allowances.

negotiable shipping arrangements means:

                     (a)  the arrangements for, or the terms and conditions applicable to, outwards liner cargo shipping services provided, or proposed to be provided, by the ocean carrier on the relevant trade route (including, for example, freight rates, charges for inter‑terminal transport services, frequency of sailings and ports of call); or

                     (b)  the arrangements for, or the terms and conditions applicable to, inwards liner cargo shipping services provided, or proposed to be provided, by the ocean carrier on the relevant trade route (including, for example, freight rates, charges for inter‑terminal transport services, frequency of sailings and ports of call), where those arrangements or those terms and conditions, as the case may be, are embodied in an eligible Australian contract; or

                     (c)  the arrangements for, or the terms and conditions applicable to, the parts of the inwards liner cargo shipping services provided, or proposed to be provided, by the ocean carrier on the relevant trade route that consist of activities that take place on land in Australia (including, for example, terminal handling charges and charges for inter‑terminal transport services).

relevant designated shipper body:

                     (a)  in relation to negotiations connected with outwards liner cargo shipping services—means:

                              (i)  a designated outwards peak shipper body; or

                             (ii)  a designated outwards secondary shipper body nominated by the Registrar (by written notice given to the ocean carrier) for the purposes of the relevant trade route; or

                     (b)  in relation to negotiations connected with inwards liner cargo shipping services—means:

                              (i)  a designated inwards peak shipper body; or

                             (ii)  a designated inwards secondary shipper body nominated by the Registrar (by written notice given to the ocean carrier) for the purposes of the relevant trade route.

relevant trade route means the trade route specified in relation to the ocean carrier in the register of non‑conference ocean carriers with substantial market power.

10.53  Non‑conference ocean carrier with substantial market power not to hinder Australian flag shipping operators etc.

             (1)  A registered non‑conference ocean carrier with substantial market power shall not prevent or hinder an Australian flag shipping operator from engaging efficiently in the provision of outwards liner cargo shipping services to an extent that is reasonable.

             (2)  For the purposes of subsection (1), in determining what is reasonable, have regard to:

                     (a)  the national interest; and

                     (b)  the interests of the following:

                              (i)  Australian shippers generally;

                             (ii)  Australian shippers in a particular trade;

                            (iii)  Australian shippers of particular kinds of goods;

                            (iv)  shippers in a particular part of Australia ; and

                     (c)  any other relevant matters.


 

Division 10—Powers of Minister in relation to non‑conference ocean carriers with substantial market power

10.54  Powers exercisable by Minister in relation to obligations of non‑conference ocean carriers with substantial market power

             (1)  Subject to sections 10.55 and 10.56, the Minister may, by writing served on a registered non‑conference ocean carrier with substantial market power, order the ocean carrier to comply with any of the ocean carrier’s obligations under Division 9.

             (2)  Where the Minister makes an order under subsection (1), the Registrar shall immediately enter particulars of the order in the register of non‑conference ocean carriers with substantial market power.

10.55  Circumstances in which Minister may exercise powers

                   The Minister shall not make an order under subsection 10.54(1) unless:

                     (a)  the Minister is satisfied of either or both of the following matters:

                              (i)  that section 10.52 (non‑conference ocean carrier with substantial market power to negotiate with certain designated shipper bodies etc.) applies to the ocean carrier concerned, and that the ocean carrier has contravened, or proposes to contravene, that section;

                             (ii)  that the ocean carrier concerned has contravened, or proposes to contravene, section 10.53 (non‑conference ocean carrier with substantial market power not to hinder Australian flag shipping operators etc.);

                     (b)  the Minister has carried on or attempted to carry on, either personally or through authorised officers, consultations with the ocean carrier directed at obtaining an undertaking or action by the ocean carrier that would have made an order under subsection 10.54(1) unnecessary; and

                     (c)  either of the following subparagraphs applies:

                              (i)  the Commission has reported to the Minister under section 10.57 or 10.58 in relation to matters referred to in paragraph (a) of which the Minister is satisfied and the Minister has taken the report into account;

                             (ii)  the Minister is satisfied that the special circumstances of the case make it desirable to make the order before he or she receives such a report from the Commission.

10.56  Action to be taken where powers exercised by Minister without first obtaining Commission report

             (1)  Where the Minister makes an order under subsection 10.54(1) before receiving a report under section 10.57 or 10.58 in relation to matters referred to in paragraph 10.55(a) of which the Minister was satisfied before making the order, the Minister shall immediately refer the matters to the Commission under section 10.57.

             (2)  The Commission shall report to the Minister within a period of not more than 60 days in relation to those matters and any other matters that the Commission is then investigating under this Division in relation to the ocean carrier concerned.

             (3)  If, after taking the Commission’s report into account, the Minister is satisfied of one or more of the matters referred to in paragraph 10.55(a), the Minister may, within 21 days after receiving the Commission’s report, direct the Registrar not to take action under subsection (4) in relation to the ocean carrier, and may also make such further orders under subsection 10.54(1) in relation to the ocean carrier as the Minister considers appropriate.

             (4)  The Registrar shall delete the particulars of the order under subsection 10.54(1) from the register of non‑conference ocean carriers with substantial market power at the end of 21 days after the Minister receives the Commission’s report unless the Minister has given a direction under subsection (3) in relation to the ocean carrier.

             (5)  Subsection (1) shall not be taken by implication to limit the matters that may be referred to the Commission under section 10.57.

             (6)  A direction under subsection (3) must be given in writing, and the Registrar must serve a copy of the direction on the ocean carrier.

10.57  Investigation and report by Commission on reference by Minister

             (1)  The Minister may refer to the Commission for investigation and report the question whether grounds exist for the Minister to be satisfied in relation to a registered non‑conference ocean carrier with substantial market power of one or more specified matters referred to in paragraph 10.55(a).

             (2)  The Commission shall hold an investigation into the question and report to the Minister.

             (3)  In its investigation, the Commission shall give special consideration to any matters specified in the reference as matters to be given special consideration by the Commission.

10.58  Investigation and report by Commission on application by affected person

             (1)  A person affected by the conduct of a registered non‑conference ocean carrier with substantial market power may apply to the Commission for an investigation into the question whether grounds exist for the Minister to be satisfied in relation to the ocean carrier of one or more specified matters referred to in paragraph 10.55(a).

             (2)  The Commission may hold an investigation into the question, and, if it decides to do so, it shall inform the Minister of its decision and report to the Minister.

             (3)  In its investigation, the Commission shall give special consideration to such matters (if any) as the Minister requests it to give special consideration.

             (4)  A request under subsection (3) must be made in writing.

             (5)  Without limiting subsection (1), each of the following persons shall be taken to be a person affected by the conduct of a registered non‑conference ocean carrier with substantial market power:

                     (a)  a designated shipper body;

                     (b)  in the case of an investigation relating to outwards liner cargo shipping services—an Australian flag shipping operator;

                     (c)  a shipper who uses, or may reasonably be expected to need to use, outwards liner cargo shipping services or inwards liner cargo shipping services provided, or proposed to be provided, on the trade route specified in relation to the ocean carrier in the register of non‑conference ocean carriers with substantial market power;

                     (d)  an association representing shippers who use, or may reasonably be expected to need to use, such services.

10.59  Undertakings by ocean carrier

             (1)  A registered non‑conference ocean carrier with substantial market power may, at any time, offer to give an undertaking to do, or not to do, a specified act or thing.

             (2)  The offer must be:

                     (a)  in the appropriate prescribed form; and

                     (b)  made to the Minister in accordance with the regulations.

             (3)  If the Minister accepts the offer, the Minister may do one or more of the following:

                     (a)  revoke any reference made to the Commission under section 10.57 in relation to the ocean carrier;

                     (b)  direct the Commission, in writing, to cease holding any investigation being held by it under section 10.58 in relation to the ocean carrier;

                     (c)  revoke any order made under subsection 10.54(1) in relation to the ocean carrier.

             (4)  If the Minister accepts the offer, the ocean carrier shall be taken to have given the undertaking, and the Registrar shall immediately register the undertaking by entering particulars of it in the register of non‑conference ocean carriers with substantial market power.

             (5)  If the Minister revokes an order made under subsection 10.54(1), the Registrar shall immediately include in the register a notation to the effect that the order has been revoked.

10.60  Enforcement of orders and undertakings

             (1)  An ocean carrier shall not contravene an order made under subsection 10.54(1) or an undertaking given under section 10.59.

             (2)  Part VI applies in relation to subsection (1) as if that subsection were a provision of Part IV.


 

Division 11—Unfair pricing practices

10.61  Powers exercisable by Minister in relation to pricing practices etc.

             (1)  Subject to section 10.62, the Minister may, by writing served on an ocean carrier, order the ocean carrier not to engage in a pricing practice.

             (2)  Where the Minister makes an order under subsection (1), the Registrar shall immediately enter particulars of the order in the register of obligations concerning unfair pricing practices.

10.62  Circumstances in which Minister may exercise powers

                   The Minister shall not make an order under subsection 10.61(1) unless:

                     (a)  the Minister is satisfied:

                              (i)  that the ocean carrier concerned has engaged in the pricing practice concerned in relation to outwards liner cargo shipping services or inwards liner cargo shipping services provided on a particular trade route;

                             (ii)  that the practice has resulted in the freight rates charged by the ocean carrier for all or some outwards liner cargo shipping services or inwards liner cargo shipping services provided on the trade route being less than normal freight rates for services of that kind (as determined in accordance with section 10.66);

                            (iii)  that the practice is of such a magnitude or such a recurring or systematic character that it has prevented or hindered, or threatens to prevent or hinder, the provision of outwards liner cargo shipping services or inwards liner cargo shipping services on the trade route that are:

                                        (A)  efficient and economical; and

                                        (B)  provided at the capacity and frequency reasonably required to meet the needs of shippers who use, and shippers who may reasonably be expected to need to use, the services; and

                            (iv)  that the practice is contrary to the national interest (as determined in accordance with section 10.67);

                     (b)  the Minister has carried on or attempted to carry on, either personally or through authorised officers, consultations with the ocean carrier directed at obtaining an undertaking or action by the ocean carrier that would have made an order under subsection 10.61(1) unnecessary; and

                     (c)  the Commission has reported to the Minister under section 10.63 in relation to the ocean carrier in relation to outwards liner cargo shipping services or inwards liner cargo shipping services provided on the trade route and the Minister has taken the report into account.

10.63  Investigation and report by Commission

             (1)  The Minister may, on the complaint of an affected person or otherwise, refer to the Commission for investigation and report the question whether grounds exist for the Minister to be satisfied, in relation to an ocean carrier in relation to outwards liner cargo shipping services or inwards liner cargo shipping services provided on a trade route, of the matters referred to in paragraph 10.62(a).

             (2)  The Commission shall hold an investigation into the question and report to the Minister.

             (3)  In its investigation, the Commission shall give special consideration to any matters specified in the reference as matters to be given special consideration by the Commission.

10.64  Undertakings not to engage in pricing practices

             (1)  An ocean carrier may, at any time, offer to give an undertaking:

                     (a)  not to engage in a pricing practice; and

                     (b)  to give the Registrar such information as the Registrar from time to time requires (verified as the Registrar requires) for the purpose of ascertaining whether the ocean carrier is engaging in, or has engaged in, the pricing practice.

             (2)  The offer must be:

                     (a)  in the appropriate prescribed form; and

                     (b)  made to the Minister in accordance with the regulations.

             (3)  If the Minister accepts the offer, the Minister may do either or both of the following:

                     (a)  revoke any reference made to the Commission under subsection 10.63(1) in relation to the ocean carrier;

                     (b)  revoke any order made under subsection 10.61(1) in relation to the ocean carrier.

             (4)  If the Minister accepts the offer, the ocean carrier shall be taken to have given the undertaking, and the Registrar shall immediately register the undertaking by entering particulars of it in the register of obligations concerning unfair pricing practices.

             (5)  If the Minister revokes an order made under subsection 10.61(1), the Registrar shall immediately include in the register a notation to the effect that the order has been revoked.

10.65  Enforcement of orders and undertakings

             (1)  An ocean carrier shall not contravene an order made under subsection 10.61(1) or an undertaking given under section 10.64.

             (2)  Part VI applies in relation to subsection (1) as if that subsection were a provision of Part IV.

10.66  Determination of normal freight rates for shipping services

             (1)  The normal freight rates for outwards liner cargo shipping services or inwards liner cargo shipping services provided on a trade route are, subject to subsection (2), the freight rates actually charged in the ordinary course of shipping business for the same or similar services on the same or a comparable trade route by ocean carriers who do not enjoy non‑commercial advantages given by a government (including a government of a foreign country).

             (2)  If such actual freight rates do not exist or it is not possible to ascertain satisfactorily what they are, the normal freight rates for the services may be determined by:

                     (a)  comparing the costs of the ocean carrier concerned and comparable ocean carriers who do not enjoy non‑commercial advantages given by a government (including a government of a foreign country); and

                     (b)  allowing reasonable margins of profit.

             (3)  The comparison shall:

                     (a)  take into account all costs incurred in the ordinary course of shipping business, whether the costs are fixed or variable; and

                     (b)  allow for reasonable overhead expenses.

10.67  Determination of whether practice contrary to national interest

             (1)  In determining whether a pricing practice in relation to outwards liner cargo shipping services is contrary to the national interest, regard shall be had, in particular, to:

                     (a)  the effect that the practice has had, or is likely to have, in relation to:

                              (i)  continued access by Australian exporters to outwards liner cargo shipping services of adequate frequency and reliability at freight rates that are internationally competitive; and

                             (ii)  stable access to export markets for exporters in all States and Territories;

                     (b)  the extent to which any advantages provided by the practice or similar practices are enjoyed by competitors of Australian exporters; and

                     (c)  the effect that denial of any advantages provided by the practice would have on the competitiveness of Australian industries.

             (2)  Subsection (3) applies when determining whether a pricing practice in relation to inwards liner cargo shipping services is contrary to the national interest.

             (3)  Regard must be had, in particular, to the effect that the practice has had, or is likely to have, in relation to continuous stable access by Australian importers in all States and Territories to inwards liner cargo shipping services that:

                     (a)  are of adequate frequency and reliability; and

                     (b)  are at freight rates that are internationally competitive.


 

Division 12—Registration of ocean carrier agents

10.68  Ocean carrier who provides international liner cargo shipping services to have registered agent

             (1)  Every ocean carrier who provides international liner cargo shipping services shall, at all times, be represented for the purposes of this Act by a person who:

                     (a)  is an individual resident in Australia ;

                     (b)  has been appointed by the ocean carrier as the ocean carrier’s agent for the purposes of this Act; and

                     (c)  is specified in the register of ocean carrier agents as the ocean carrier’s agent.

             (2)  An ocean carrier who, without reasonable excuse, contravenes subsection (1) is guilty of an offence punishable, on conviction, by a fine not exceeding:

                     (a)  in the case of a natural person—$2,000; and

                     (b)  in the case of a body corporate—$10,000.

10.69  Representation of ocean carrier by registered agent

             (1)  Everything done by or in relation to an ocean carrier’s registered agent in that capacity shall, for the purposes of this Act, be taken to be done by or in relation to the ocean carrier.

             (2)  Without limiting subsection (1), a document required or permitted to be served on, or given to, an ocean carrier under or for the purposes of this Act (including the process of any court) may be served on, or given to, the ocean carrier by serving it on, or giving it to, the ocean carrier’s registered agent.

             (3)  A document that is, under subsection (2), permitted to be served on, or given to, an ocean carrier’s registered agent may be served on, or given to, the agent by:

                     (a)  delivering it to the agent personally; or

                     (b)  leaving it at, or sending it by pre‑paid post to, the address for service specified in relation to the agent in the register of ocean carrier agents.

             (4)  Subsection (3) does not affect:

                     (a)  the operation of any other law of the Commonwealth, or any law of a State or Territory, that authorises the service of a document otherwise than as provided in that subsection; or

                     (b)  the power of a court to authorise service of a document otherwise than as provided in that subsection.

10.70  Application by ocean carrier for registration of agent

             (1)  An ocean carrier may apply for the registration of a person as the ocean carrier’s agent for the purposes of this Act.

             (2)  The person must:

                     (a) be an individual resident in Australia ;

                     (b)  have been appointed by the ocean carrier as the ocean carrier’s agent for the purposes of this Act; and

                     (c)  have an address for service in Australia .

             (3)  The application must be:

                     (a)  made to the Registrar;

                     (b)  made in the prescribed form and in accordance with the regulations; and

                     (c)  accompanied by the prescribed fee.

10.71  Registration of agent

             (1)  Where an ocean carrier properly applies under section 10.70 for the registration of an agent, the Registrar shall register the agent by entering particulars of the ocean carrier and the agent in the register of ocean carrier agents.

             (2)  The particulars entered in the register must include:

                     (a)  the name of the ocean carrier; and

                     (b)  the name, and address for service, of the agent.

10.72  Change of agent etc.

             (1)  An ocean carrier may, by notice given to the Registrar:

                     (a)  revoke the appointment of the ocean carrier’s registered agent and, subject to subsection (2), appoint a new agent for the purposes of this Act;

                     (b)  change the address for service of the ocean carrier’s registered agent to another address in Australia ; or

                     (c)  request the Registrar to vary any of the particulars entered in the register of ocean carrier agents in relation to the ocean carrier.

             (2)  A new agent appointed under paragraph (1)(a) must:

                     (a)  be an individual resident in Australia ; and

                     (b)  have an address for service in Australia .

             (3)  A notice under paragraph (1)(a), (b) or (c):

                     (a)  must be in the appropriate prescribed form;

                     (b)  must be given to the Registrar in accordance with the regulations; and

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