---
kind: "section"
citation: "46 U.S.C. § 40704"
title: "46"
title_heading: "Shipping"
number: "40704"
heading: "Commission review"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/46/40704"
units:
  - "Subtitle IV — Regulation of Ocean Shipping"
  - "Part A — Ocean Shipping"
  - "Chapter 407 — Controlled Carriers"
---

# §40704. Commission review

- (a) **Request for Justification.—** On request of the Federal Maritime [Commission](/usc/46/42501.md?p=1), a [controlled carrier](/usc/46/40102.md?p=9) shall file with the [Commission](/usc/46/42501.md?p=1), within 20 days of the request, a statement of justification that sufficiently details the carrier’s need and purpose for an existing or proposed rate, charge, classification, rule, or regulation and upon which the [Commission](/usc/46/42501.md?p=1) may reasonably base a determination of its lawfulness.
- (b) **Determination.—** Within 120 days after receipt of information requested under [subsection (a)](#a), the [Commission](/usc/46/42501.md?p=1) shall determine whether the rate, charge, classification, rule, or regulation may be unjust and unreasonable.
- (c) **Show Cause Order.—** Whenever the [Commission](/usc/46/42501.md?p=1) is of the opinion that a rate, charge, classification, rule, or regulation published or assessed by a [controlled carrier](/usc/46/40102.md?p=9) may be unjust and unreasonable, the [Commission](/usc/46/42501.md?p=1) shall issue an order to the [controlled carrier](/usc/46/40102.md?p=9) to show cause why the rate, charge, classification, rule, or regulation should not be prohibited.
- (d) **Suspension Pending Determination.—**
  - (1) **Not yet effective.—** Pending a determination of the lawfulness of a rate, charge, classification, rule, or regulation in a proceeding under [subsection (c)](#c), the [Commission](/usc/46/42501.md?p=1) may suspend the rate, charge, classification, rule, or regulation at any time before its effective date.
  - (2) **Already effective.—** If a rate, charge, classification, rule, or regulation has already become effective, the [Commission](/usc/46/42501.md?p=1), on issuance of an order to show cause, may suspend the rate, charge, classification, rule, or regulation on at least 30 days’ notice to the [controlled carrier](/usc/46/40102.md?p=9).
  - (3) **Maximum suspension.—** A period of suspension under this subsection may not exceed 180 days.
- (e) **Replacement During Suspension.—** Whenever the [Commission](/usc/46/42501.md?p=1) has suspended a rate, charge, classification, rule, or regulation under this section, the [controlled carrier](/usc/46/40102.md?p=9) may publish a new rate, charge, classification, rule, or regulation to take effect immediately during the suspension in lieu of the suspended rate, charge, classification, rule, or regulation. However, the [Commission](/usc/46/42501.md?p=1) may reject the new rate, charge, classification, rule, or regulation if the [Commission](/usc/46/42501.md?p=1) believes it is unjust and unreasonable.

## Source credit

(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1536.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised<br>Section | Source (U.S. Code) | Source (Statutes at Large) |
| 40704 | 46 App.:1708(c) (last sentence), (d). | Pub. L. 98–237, § 9(c) (last sentence), (d), Mar. 20, 1984, 98 Stat. 76; Pub. L. 105–258, title I, § 108(9)–(15), Oct. 14, 1998, 112 Stat. 1908. |

In subsection (d)(1), the words “in a proceeding under subsection (c)” are substituted for “in such a proceeding” for clarity.