# § 40702. Rate standards
**(a)** **Definition.—** In this section, the term “constructive costs” means the costs of another carrier, other than a controlled carrier, operating similar vessels and equipment in the same or a similar trade.
**(b)** **Standards.—** In determining whether a rate, charge, classification, rule, or regulation of a controlled carrier is just and reasonable, the Federal Maritime Commission—
**(1)** shall take into account whether the rate or charge that has been published or assessed, or that would result from the pertinent classification, rule, or regulation, is below a level that is fully compensatory to the controlled carrier based on the carrier’s actual costs or constructive costs; and
**(2)** may take into account other appropriate factors, including whether the rate, charge, classification, rule, or regulation is—
**(A)** the same as, or similar to, those published or assessed by other carriers in the same trade;
**(B)** required to ensure movement of particular cargo in the same trade; or
**(C)** required to maintain acceptable continuity, level, or quality of common carrier service to or from affected ports.
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**Source Credit**: (Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1536.)
| RevisedSection | Source (U.S. Code) | Source (Statutes at Large) |
| --- | --- | --- |
| 40702 | 46 App.:1708(b). | Pub. L. 98–237, § 9(b), Mar. 20, 1984, 98 Stat. 76; Pub. L. 105–258, title I, § 108(5)–(7), Oct. 14, 1998, 112 Stat. 1908. |