[Title 47 CFR 3]
[Code of Federal Regulations (annual edition) - October 1, 2004 Edition]
[Title 47 - TELECOMMUNICATION]
[Chapter I - FEDERAL COMMUNICATIONS COMMISSION]
[Subchapter A - GENERAL]
[Part 3 - AUTHORIZATION AND ADMINISTRATION OF ACCOUNTING AUTHORITIES IN MARITIME]
[From the U.S. Government Printing Office]
47TELECOMMUNICATION12004-10-012004-10-01falseAUTHORIZATION AND ADMINISTRATION OF ACCOUNTING AUTHORITIES IN MARITIME3PART 3TELECOMMUNICATIONFEDERAL COMMUNICATIONS COMMISSIONGENERAL
PART 3_AUTHORIZATION AND ADMINISTRATION OF ACCOUNTING AUTHORITIES IN MARITIME
AND MARITIME MOBILE-SATELLITE RADIO SERVICES--Table of Contents
3.1 Scope, basis, purpose.
3.2 Terms and definitions.
3.10 Basic qualifications.
3.11 Location of settlement operation.
3.20 Application form.
3.21 Order of consideration.
3.22 Number of accounting authority identification codes per applicant.
3.23 Legal applicant.
3.24 Evidence of financial responsibility.
3.25 Number of copies.
3.26 Where application is to be mailed.
3.27 Amended application.
3.28 Denial of privilege.
3.40 Operational requirements.
3.41 Amount of time allowed before initial settlements.
3.42 Location of processing facility.
3.43 Applicable rules and regulations.
3.44 Time to achieve settlements.
3.45 Amount of charges.
3.46 Use of gold francs.
3.47 Use of SDRs.
3.48 Cooperation with the Commission.
3.49 Agreement to be audited.
3.50 Retention of settlement records.
3.51 Cessation of operations.
3.52 Complaint/inquiry resolution procedures.
3.53 FCC notification of refusal to provide telecommunications service
to U.S. registered vessel(s).
3.54 Notification of change in address.
3.61 Reporting address.
3.62 Request for confidentiality.
3.72 Grounds for further enforcement action.
3.73 Waiting period after cancellation.
3.74 Ship stations affected by suspension, cancellation or
3.75 Licensee's failure to make timely payment.
3.76 Licensee's liability for payment.
Authority: 47 U.S.C. 154(i), 154(j) and 303(r).
Source: 61 FR 20165, May 6, 1996, unless otherwise noted.
Sec. 3.1 Scope, basis, purpose.
By these rules the Federal Communications Commission (FCC) is
delineating its responsibilities in certifying and monitoring accounting
authorities in the maritime mobile and maritime mobile-satellite radio
services. These entities settle accounts for public correspondence due
to foreign administrations for messages transmitted at sea by or between
maritime mobile stations located on board ships subject to U.S. registry
and utilizing foreign coast and coast earth station facilities. These
rules are intended to ensure that settlements of accounts for U.S.
licensed ship radio stations are conducted in accordance with the
International Telecommunication Regulations (ITR), taking into account
the applicable ITU-T Recommendations.
Sec. 3.2 Terms and definitions.
(a) Accounting Authority. The Administration of the country that has
issued the license for a mobile station or the recognized operating
agency or other entity/entities designated by the Administration in
accordance with ITR, Appendix 2 and ITU-T Recommendation D.90 to whom
maritime accounts in respect of mobile stations licensed by that country
may be sent.
(b) Accounting Authority Certification Officer. The official
designated by the Managing Director, Federal Communications Commission,
who is responsible, based on the coordination and review of information
related to applicants, for granting certification as an accounting
authority in the maritime mobile and maritime mobile-satellite radio
services. The Accounting Authority Certification Officer may initiate
action to suspend or cancel an accounting authority certification if it
is determined to be in the public's best interest.
(c) Accounting Authority Identification Codes (AAICs). The discrete
identification code of an accounting authority responsible for the
settlement of maritime accounts (Annex A to ITU-T Recommendation D.90).
(d) Administration. Any governmental department or service
responsible for discharging the obligations undertaken in the Convention
of the International Telecommunication Union and the Radio Regulations.
For purposes of these rules, ``Administration'' refers to a foreign
government or the U.S. Government, and more specifically, to the Federal
(e) Authorization. Approval by the Federal Communications Commission
to operate as an accounting authority. Synonymous with
(f) CCITT. The internationally recognized French acronym for the
International Telegraph and Telephone Consultative Committee, one of the
former sub-entities of the International Telecommunication Union (ITU).
The CCITT (ITU-T)\1\ is responsible for developing international
telecommunications recommendations relating to standardization of
international telecommunications services and facilities, including
matters related to international charging and accounting principles and
the settlement of international telecommunications accounts.
\1\ At the ITU Additional Plenipotentiary Conference in Geneva
(December, 1992), the structure, working methods and construct of the
basic ITU treaty instrument were modified. The result is that the names
of the sub-entities of the ITU have changed (e.g., the CCITT has become
the Telecommunication Standardization Sector--ITU-T and Recognized
Private Operating Agency has become Recognized Operating Agency-ROA).
The changes were placed into provisional effect on March 1, 1993 with
the formal entry into force of these changes being July 1, 1994. We will
refer to the new nomenclatures within these rules, wherever practicable.
Such recommendations are, effectively, the detailed implementation
provisions for topics addressed in the International Telecommunication
(g) Certification. Approval by the FCC to operate as an accounting
authority. Synonymous with ``authorization''.
(h) Coast Earth Station. An earth station in the fixed-satellite
service or, in some cases, in the maritime mobile-satellite service,
located at a specified fixed point on land to provide a feeder link for
the maritime mobile-satellite service.
(i) Coast Station. A land station in the maritime mobile service.
(j) Commission. The Federal Communications Commission. The FCC.
(k) Gold Franc. A monetary unit representing the value of a
particular nation's currency to a gold par value. One of the monetary
units used to effect accounting settlements in the maritime mobile and
the maritime mobile-satellite services.
(l) International Telecommunication Union (ITU). One of the United
Nations family organizations headquartered in Geneva, Switzerland along
with several other United Nations (UN) family organizations. The ITU is
the UN agency responsible for all matters related to international
telecommunications. The ITU has over 180 Member Countries, including the
United States, and provides an international forum for dealing with all
aspects of international telecommunications, including radio, telecom
services and telecom facilities.
(m) Linking Coefficient. The ITU mandated conversion factor used to
convert gold francs to Special Drawing Rights (SDRs). Among other
things, it is used to perform accounting settlements in the maritime
mobile and the maritime mobile-satellite services.
(n) Maritime Mobile Service. A mobile service between coast stations
and ship stations, or between ship stations, or between associated on-
board communication stations. Survival craft stations and emergency
position- indicating radiobeacon stations may also participate in this
(o) Maritime Mobile-Satellite Service. A mobile-satellite service in
which mobile earth stations are located on board ships. Survival craft
stations and emergency position-indicating radiobeacon stations may also
participate in this radio service.
(p) Public Correspondence. Any telecommunication which the offices
and stations must, by reason of their being at the disposal of the
public, accept for transmission. This usually applies to maritime mobile
and maritime mobile-satellite stations.
(q) Recognized Operating Agencies (ROAs).\2\ Individuals, companies
or corporations, other than governments or agencies, recognized by
administrations, which operate telecommunications installations or
provide telecommunications services intended for international use or
which are capable of causing interference to international
telecommunications. ROAs which settle debtor accounts for public
correspondence in the maritime mobile and maritime mobile-satellite
radio services must be certified as accounting authorities.
(r) Ship Station. A mobile station in the maritime mobile service
located on board a vessel which is not permanently moored, other than a
survival craft station.
(s) Special Drawing Right (SDR). A monetary unit of the
International Monetary Fund (IMF) currently based on a market basket of
exchange rates for the United States, West Germany, Great Britain,
France and Japan but is subject to IMF's definition. One of the monetary
units used to effect accounting settlements in the maritime mobile and
maritime mobile-satellite services.
(t) United States. The continental U.S., Alaska, Hawaii, the
Commonwealth of Puerto Rico, the Virgin Islands or any territory or
possession of the United States.
Sec. 3.10 Basic qualifications.
(a) Applicants must meet the requirements and conditions contained
in these rules in order to be certified as an accounting authority. No
individual or other entity, including accounting authorities approved by
other administrations, may act as a United States accounting authority
and settle accounts of U.S. licensed vessels in the
maritime mobile or maritime mobile-satellite services without a
certification from the Federal Communications Commission. Accounting
authorities with interim certification as of the effective date of this
rule must submit to the application process discussed in Sec. 3.20.
They will be ``grandfathered'', i.e, granted permanent certification
provided they demonstrate their eligibility and present a proper
(b) U.S. citizenship is not required of individuals in order to
receive certification from the Commission to be an accounting authority.
Likewise, joint ventures need not be organized under the laws of the
United States in order to be eligible to perform settlements for U.S.
licensed vessels. See, however, Sec. 3.11.
(c) Prior experience in maritime accounting, general commercial
accounting, international shipping or any other related endeavor will be
taken into consideration by the Commission in certifying accounting
authorities. The lack of such expertise, however, will not automatically
disqualify an individual, partnership, corporation or other entity from
becoming an accounting authority.
(d) Applicants must provide formal financial statements or
documentation proving all assets, liabilities, income and expenses.
(e) Applicants must offer their services to any member of the public
making a reasonable request therefor, without undue discrimination
against any customer or class of customer, and fees charged for
providing such services shall be reasonable and non-discriminatory. This
requirement will be waived for applicants who settle their own accounts
only and are eligible to be ``grandfathered'' during the initial
application period. However, should the need for additional accounting
authorities be proven, these accounting authorities will be required to
offer their services to the public or relinquish their certification.
[61 FR 20165, May 6, 1996, as amended at 64 FR 40776, July 28, 1999]
Sec. 3.11 Location of settlement operation.
(a) Within the United States. A certified accounting authority
maintaining all settlement operations, as well as associated
documentation, within the United States will be assigned an AAIC with a
(b) Outside the United States. A certified accounting authority
maintaining settlement operations outside the United States will be
assigned the same AAIC as that originally assigned to such entity by the
administration of the country of origin. However, in no case will an
entity be certified as an accounting authority for settlement of U.S.
licensed vessel accounts unless the entity is requesting to conduct a
settlement operation in the United States or has already been issued an
AAIC by another administration.
Sec. 3.20 Application form.
Written application must be made to the Federal Communications
Commission on FCC Form 44, ``Application For Certification As An
Accounting Authority'' in order to be considered for certification as an
accounting authority. No other application form may be used. No
consideration will be given to applicants not submitting applications in
accordance with these rules or in accordance with any other instructions
the Commission may issue. FCC Form 44 may be obtained from the
Commission by writing to the address shown in Sec. 3.61.
Sec. 3.21 Order of consideration.
(a) Accounting Authority applications will be processed on a first-
come, first-served basis. When applications are received on the same
day, the application with the earliest mailing date, as evidenced by the
postmark, will be processed first. Interim accounting authorities
seeking permanent certifications through the ``grandfathering'' process
will not compete with other applicants during the first 60 days
following the effective date of these rules which is allowed for
submission of their applications. After the ``grandfathering'' process
is completed, all other applicants will be processed as in paragraph (a)
of this section.
(b) At any given time, there will be no more than 25 certified
authorities with a minimum of 15 ``US'' AAICs reserved for use by
accounting authorities conducting settlement operations within the
United States. The Commission will retain all valid applications
received after the maximum number of accounting authorities have been
approved and will inform such applicants that should an AAIC become
available for reassignment in the future, the Commission will
conditionally certify as an accounting authority the oldest of the
qualified pending applicants, as determined by the order of receipt.
Final certification would be conditional upon filing of an amended
application (if necessary). The Commission will inform the applicant of
his/her conditional selection in writing to confirm the applicant's
continued interest in becoming an accounting authority.
Sec. 3.22 Number of accounting authority identification codes per applicant.
(a) No entity will be entitled to or assigned more than one AAIC.
(b) AAICs may not be reassigned, sold, bartered or transferred and
do not convey upon sale or absorption of a company or firm without the
express written approval of the Commission. Only the FCC may certify
accounting authorities and assign U.S. AAICs for entities settling
accounts of U.S. licensed vessels in the maritime mobile and maritime
(c) Accounting authorities who are ``grandfathered'' during the
initial application period may retain their interim AAIC.
Sec. 3.23 Legal applicant.
The application shall be signed by the individual, partner or
primary officer of a corporation who is legally able to obligate the
entity for which he or she is a representative.
Sec. 3.24 Evidence of financial responsibility.
All applicants must provide evidence of sound financial status. To
the extent that the applicant is a business, formal financial statements
will be required. Other applicants may submit documentation proving all
assets, liabilities, income and expenses which supports their ability to
meet their personal obligations. Applicants must provide any additional
information deemed necessary by the Commission.
Sec. 3.25 Number of copies.
One original and one copy of FCC Form 44, ``Application For
Certification As An Accounting Authority'' will be required. Only
applications mailed to the Commission on official, Commission approved
application forms will be considered. Applications should be mailed at
least 90 days prior to planned commencement of settlement activities to
allow time for the Commission to review the application and to allow for
the informal public comment period.
Sec. 3.26 Where application is to be mailed.
All applications shall be mailed to the Accounting Authority
Certification Officer in Washington, D.C. The designated address will be
provided on the FCC Form 44, ``Application for Certification As An
Sec. 3.27 Amended application.
Changes in circumstances that cause information previously supplied
to the FCC to be incorrect or incomplete and that could affect the
approval process, require the submission of an amended application. The
amended application should be mailed to the Commission immediately
following such change. See also Sec. Sec. 3.24 and 3.51.
Sec. 3.28 Denial of privilege.
(a) The Commission, in its sole discretion, may refuse to grant an
application to become an accounting authority for any of the following
(1) Failure to provide evidence of acceptable financial
(2) If the applicant, in the opinion of the FCC reviewing official,
does not possess the qualifications necessary to the proper functioning
of an accounting authority;
(3) Application is not personally signed by the proper official(s);
(4) Applicant does not provide evidence that accounting operations
will take place in the United States or its territories and the
applicant does not
already possess an AAIC issued by another administration;
(5) Application is incomplete, the applicant fails to provide
additional information requested by the Commission or the applicant
indicates that it cannot meet a particular provision; or
(6) When the Commission determines that the grant of an
authorization is contrary to the public interest.
(b) These rules provide sufficient latitude to address defects in
applications. Entities seeking review should follow procedures set forth
in Sec. 1.106 or Sec. 1.115 of this chapter.
Sec. 3.29 Notifications.
(a) The Commission will publish the name of an applicant in a Public
Notice before granting certification and will invite informal public
comment on the qualifications of the applicant from any interested
parties. Comments received will be taken into consideration by the
Commission in making its determination as to whether to approve an
applicant as an accounting authority. Thirty days will be allowed for
submission of comments.
(b) The Commission will notify each applicant in writing as to
whether the applicant has been approved as an accounting authority. If
the application is not approved, the Commission will provide a brief
statement of the grounds for denial.
(c) The names and addresses of all newly certified accounting
authorities will be published in a Public Notice issued by the
Commission. Additionally, the Commission will notify the ITU within 30
days of any changes to its approved list of accounting authorities.
Sec. 3.40 Operational requirements.
All accounting authorities must conduct their operations in
conformance with the provisions contained in this section and with
relevant rules and guidance issued from time to time by the Commission.
Sec. 3.41 Amount of time allowed before initial settlements.
An accounting authority must begin settling accounts no later than
six months from the date of certification. Failure to commence
settlement operations is cause for suspension or cancellation of an
accounting authority certification.
Sec. 3.42 Location of processing facility.
Settlement of maritime mobile and maritime mobile-satellite service
accounts must be performed within the United States by all accounting
authorities possessing the ``US'' prefix. Other accounting authorities
approved by the Commission may settle accounts either in the U.S. or
elsewhere. See also Sec. Sec. 3.11 and 3.21(b).
Sec. 3.43 Applicable rules and regulations.
Accounting authority operations must be conducted in accordance with
applicable FCC rules and regulations, the International
Telecommunication Regulations (ITR), and other international rules,
regulations, agreements, and, where appropriate, ITU-T Recommendations.
In particular, the following must be adhered to or taken into account in
the case of ITU-T.
(a) The latest basic treaty instrument(s) of the International
Telecommunication Union (ITU);
(b) Binding agreements contained in the Final Acts of World
Administrative Radio Conferences and/or World International
(c) ITU Radio Regulations;
(d) ITU International Telecommunication Regulations (ITR);
(e) ITU-T Recommendations (particularly D.90 and D.195); and
(f) FCC Rules and Regulations (47 CFR part 3).
Sec. 3.44 Time to achieve settlements.
All maritime telecommunications accounts should be timely paid in
accordance with applicable ITU Regulations, Article 66 and International
Telecommunication Regulations (Melbourne, 1988). Accounting authorities
are deemed to be responsible for remitting, in a timely manner, all
valid amounts due to foreign administrations or their agents.
Sec. 3.45 Amount of charges.
Accounting Authorities may charge any reasonable fee for their
settlement services. Settlements themselves, however, must adhere to the
standards set forth in these rules and must be in accordance with the
International Telecommunication Regulations (ITR) taking into account
the applicable ITU-T Recommendations and other guidance issued by the
Sec. 3.46 Use of gold francs.
An accounting authority must accept accounts presented to it from
foreign administrations in gold francs. These gold francs must be
converted on the date of receipt of the bill to the applicable Special
Drawing Right (SDR) rate (as published by the International Monetary
Fund) on that date utilizing the linking coefficient of 3.061 gold
francs = 1 SDR. An equivalent amount in U.S. dollars must be paid to the
foreign administration. Upon written concurrence by the FCC, an
accounting authority may make separate agreements, in writing, with
foreign administrations or their agents for alternative settlement
methods, in accordance with ITU-T Recommendation D.195.
Sec. 3.47 Use of SDRs.
An accounting authority must accept accounts presented to it from
foreign administrations in Special Drawing Rights (SDRs). These SDRs
must be converted to dollars on the date of receipt by the accounting
authority and an equivalent amount in US dollars must be paid to the
foreign administration. The conversion rate will be the applicable rate
published by the International Monetary Fund (IMF) for the date of
receipt of the account from the foreign administration. Upon written
concurrence by the FCC, any accounting authority may make separate
agreements, in writing, with foreign administrations or their agents for
alternative settlement methods, provided account is taken of ITU-T
Sec. 3.48 Cooperation with the Commission.
Accounting authorities must cooperate fully with the FCC in all
respects concerning international maritime settlements issues, including
the resolution of questions of fact or other issues arising as a result
of settlement operations.
Sec. 3.49 Agreement to be audited.
Accounting authorities accept their certifications on condition that
they are subject to audit of their settlement activities by the
Commission or its representative. Additionally, the Commission reserves
the right to verify any statement(s) made or any materials submitted to
the Commission under these rules. Verification may involve discussions
with ship owners or others as well as the requirement to submit
additional information to the Commission. Failure to respond
satisfactorily to any audit findings is grounds for forfeiture or
suspension or cancellation of authority to act as an accounting
authority for U.S. vessels.
Sec. 3.50 Retention of settlement records.
Accounting authorities must maintain, for the purpose of compliance
with these rules, all settlement records for a period of at least seven
years following settlement of an account with a foreign administration
Sec. 3.51 Cessation of operations.
The FCC must be notified immediately should an accounting authority
plan to relinquish its certification or cease to perform settlements as
authorized. Additionally, the Commission must be advised in advance of
any proposed transfer of control of an accounting authority's firm or
organization, by any means, to another entity.
(a) When an accounting authority is transferred, merged or sold, the
new entity must apply for certification in its own right if it is
interested in becoming an accounting authority. Provided the new
applicant is eligible and completes the application process
satisfactorily, the AAIC will be transferred to the new applicant. In
the case of a merger of two accounting authorities, the merged entity
must decide which AAIC to retain.
(b) Section 3.21(a) will be waived for these applicants.
(c) The applicant must comply with application process including
(d) The applicant must certify acceptance of all accounts and must
furnish a list of the accounts to the Commission at the time of
Sec. 3.52 Complaint/inquiry resolution procedures.
(a) Accounting authorities must maintain procedures for resolving
complaints and/or inquiries from its contractual customers (vessels for
which it performs settlements), the FCC, the ITU, and foreign
administrations or their agents. These procedures must be available to
the Commission upon request.
(b) If a foreign administration requests assistance in collection of
accounts from ships licensed by the FCC, the appropriate accounting
authority will provide all information requested by the Commission in a
timely manner to enable the Commission to determine the cause of the
complaint and to resolve the issue. If accounts are in dispute, the
Commission will determine the amount due the foreign administration,
accounting authority or ROA, and may direct the accounting authority to
pay the accounts to the foreign administration. If the accounting
authority does not pay the disputed accounts within a reasonable
timeframe, the Commission may take action to levy a forfeiture, cancel
the AAIC privilege and/or to revoke any operating authority or licenses
held by that accounting authority. (See also Sec. 3.72).
Sec. 3.53 FCC notification of refusal to provide telecommunications service
to U.S. registered vessel(s).
An accounting authority must inform the FCC immediately should it
receive notice from any source that a foreign administration or facility
is refusing or plans to refuse legitimate public correspondence to or
from any U.S. registered vessel.
Sec. 3.54 Notification of change in address.
The Commission must be notified in writing within 15 days of any
change in address of an accounting authority. Such written notification
should be sent to the address shown in Sec. 3.61.
Sec. 3.60 Reports.
(a) Initial Inventory of Vessels. Within 60 days after receiving
final approval from the FCC to be an accounting authority, each
certified accounting authority must provide to the FCC an initial list
of vessels for which it is performing settlements. This list should
contain only U.S. registered vessels. Such list shall be typewritten or
computer generated, be annotated to indicate it is the initial inventory
and be in the general format of the following and provide the
Vessel Name Call Sign
(b) Semi-Annual Additions/Modifications/Deletions to Vessel
Inventory. Beginning with the period ending on the last day of March or
September following submission of an accounting authority's Initial
Inventory of Vessels (See paragraph (a) of this section.) and each semi-
annual period thereafter, each accounting authority is required to
submit to the FCC a report on additions, modifications or deletions to
its list of vessels for which it is performing or intending to perform
settlements, whether or not settlements actually have taken place. The
list should contain only U.S. registered vessels. The report shall be
typewritten or computer generated and be in the following general
Additions to Current Vessel Inventory
Vessel Name Call Sign Effective Date
Modifications to Current Vessel Inventory
Previous Vessel Name Previous Call Sign New Vessel Name New Call Sign Effective Date
Deletions to Current Vessel Inventory
Vessel Name Call Sign Effective Date
The preceding report must be received by the Commission no later than 15
days following the end of the period (March or September) for which the
report pertains. Modifications refer to changes to call sign or ship
name of vessels for which the accounting authority settles accounts and
for which basic information has previously been provided to the
Commission. Reports are to be submitted even if there have been no
additions, modifications or deletions to vessel inventories since the
previous report. If there are no changes to an inventory, this should be
indicated on the report.
(c) End of Year Inventory. By February 1st of each year, each
accounting authority must submit an end-of-year inventory report listing
vessels for which the accounting authority performed settlements as of
the previous December 31st. The list should contain only U.S. registered
vessels. The report must be typewritten or computer generated and
prepared in the same general format as that shown in paragraph (a) of
this section except it should be annotated to indicate it is the End of
(d) Annual Statistical Report of Settlement Operations. By February
1st of each year, each accounting authority settling accounts for U.S.
registered vessels must submit to the FCC an Annual Statistical Report,
FCC Form 45, which details the number and dollar amount of settlements,
by foreign administration, during the preceding twelve months.
Information contained in this report provides statistical data that will
enable the Commission to monitor operations to ensure adherence to these
rules and to appropriate international settlement procedures. FCC Form
45 can be obtained by writing to the address in 3.61 of these rules.
Sec. 3.61 Reporting address.
All reports must be received at the following address no later than
the required reporting date:
Accounting Authority Certification Officer, Financial Operations Center,
Federal Communications Commission, 445 12th Street, SW., Washington,
[61 FR 20165, May 6, 1996, as amended at 65 FR 58466, Sept. 29, 2000]
Sec. 3.62 Request for confidentiality.
Applicants should comply with Sec. 0.459 of this chapter when
requesting confidentiality and cannot assume that it will be offered
Sec. 3.70 Investigations.
The Commission may investigate any complaints made against
accounting authorities to ensure compliance with the Commission's rules
and with applicable ITU Regulations and other international maritime
Sec. 3.71 Warnings.
The Commission may issue written warnings or forfeitures to
accounting authorities which are found not to be operating in accordance
with established rules and regulations. Warnings will generally be
issued for violations which do not seriously or immediately affect
settlement functions or international relations. Continued or unresolved
violations may lead to further enforcement action by the Commission,
including any or all legally available sanctions, including but not
limited to, forfeitures (Communications Act of 1934, Sec. 503),
suspension or cancellation of the accounting authority certification.
Sec. 3.72 Grounds for further enforcement action.
(a) The Commission may take further enforcement action, including
forfeiture, suspension or cancellation of an accounting authority
certification, if it is determined that the public interest so requires.
Reasons for which such action may be taken include, inter alia:
(1) Failure to initiate settlements within six months of
certification or failure to perform settlements during any subsequent
six month period;
(2) Illegal activity or fraud;
(3) Non-payment or late payment to a foreign administration or
(4) Failure to follow ITR requirements and procedures;
(5) Failure to take into account ITU-T Recommendations;
(6) Failure to follow FCC rules and regulations;
(7) Bankruptcy; or
(8) Providing false or incomplete information to the Commission or
failure to comply with or respond to requests for information.
(b) Prior to taking any of the enforcement actions in paragraph (a)
of this section, the Commission will give notice of its intent to take
the specified action and the grounds therefor, and afford a 30-day
period for a response in writing; provided that, where the public
interest so requires, the Commission may temporarily suspend a
certification pending completion of these procedures. Responses must be
forwarded to the Accounting Authority Certification Officer. See Sec.
Sec. 3.73 Waiting period after cancellation.
An accounting authority whose certification has been cancelled must
wait a minimum of three years before reapplying to be an accounting
Sec. 3.74 Ship stations affected by suspension, cancellation or
(a) Whenever the accounting authority privilege has been suspended,
cancelled or relinquished, the accounting authority is responsible for
immediately notifying all U.S. ship licensees for which it was
performing settlements of the circumstances and informing them of the
requirement contained in paragraph (b) of this section.
(b) Those ship stations utilizing an accounting authority's AAIC for
which the subject accounting authority certification has been suspended,
cancelled or relinquished, should make contractual arrangements with
another properly authorized accounting authority to settle its accounts.
(c) The Commission will notify the ITU of all accounting authority
suspensions, cancellations and relinquishments, and
(d) The Commission will publish a Public Notice detailing all
accounting authority suspensions, cancellations and relinquishments.
Sec. 3.75 Licensee's failure to make timely payment.
Failure to remit proper and timely payment to the Commission or to
an accounting authority may result in one or more of the following
actions against the licensee:
(a) Forfeiture or other authorized sanction.
(b) The refusal by foreign countries to accept or refer public
correspondence communications to or from the vessel or vessels owned,
operated or licensed by the person or entity failing to make payment.
This action may be taken at the request of the Commission or
independently by the foreign country or coast station involved.
(c) Further action to recover amounts owed utilizing any or all
legally available debt collection procedures.
Sec. 3.76 Licensee's liability for payment.
The U.S. ship station licensee bears ultimate responsibility for
final payment of its accounts. This responsibility cannot be superseded
by the contractual agreement between the ship station licensee and the
accounting authority. In the event that an accounting authority does not
remit proper and timely payments on behalf of the ship station licensee:
(a) The ship station licensee will make arrangements for another
accounting authority to perform future settlements, and
(b) The ship station licensee will settle any outstanding accounts
due to foreign entities.
(c) The Commission will, upon request, take all possible steps,
within the limits of applicable national law, to ensure settlement of
the accounts of the ship station licensee. As circumstances warrant,
this may include issuing warnings to ship station licensees when it
becomes apparent that an accounting authority is failing to settle
accounts. See also Sec. Sec. 3.70 through 3.74.