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An Ocean Transportation
Intermediary is either an ocean freight
forwarder or a non-vessel operating common
carrier (“NVOCC”). An ocean freight forwarder
is an individual or company in the United States
that dispatches shipments from the United States
via common carriers and books or otherwise
arranges space for those shipments on behalf of
shippers. Ocean freight forwarders also prepare
and process the documentation and perform
related activities pertaining to those
shipments. An NVOCC is a common carrier that
holds itself out to the public to provide ocean
transportation, issues its own house bills of
lading or equivalent document, but does not
operate the vessels by which ocean
transportation is provided, and is a shipper in
relation to the involved ocean common carrier
Ocean freight forwarders are required to
obtain a license to provide services in the
United States. U.S.-based NVOCCs are also
required to be licensed. NVOCCs that are not
U.S. based are not required to be licensed, but
may choose to obtain one if desired, as
licensing results in lower financial
responsibility levels.
.
To obtain a license, an OTI must
submit Form FMC-18 and a fee in the amount of
$825 .
The applicant must appoint a qualifying
individual with at least three years of
demonstrable OTI experience and who is an
officer of the applicant’s corporation, is the
sole proprietor or who is a partner in a
partnership. Proof of this position must be
submitted. For U.S. -based OTIs the qualifying
individual’s experience must have been gained in
the United States. For non-U.S.-based NVOCC
license applicants, the qualifying individual
may have gained experience outside the U.S.
Applications are filed for
changes such as change in qualifying individual,
name, address, business structure change,
additions or removals of trade names, or other
changes of information reported on the original
Form FMC-18. For changes in qualifying
individual or changes that result in the
issuance of an amended license, the fee is
$525.
Once an application is submitted,
FMC staff will review the application,
documents, contact references and investigate
the applicant. Should the application be
approved, the applicant will be notified of the
approval and will be required to submit proof of
financial responsibility (most likely a surety
bond), in the amount of $50,000 (for an ocean
freight forwarder license) or $75,000 (for NVOCC
license). For each unincorporated branch office
in the United States performing OTI services,
the OTI is required to increase its bond by
$10,000 and to report the addresses of those
offices. Once a license has been issued to an
NVOCC, it must file Form FMC-1 which notifies
the Commission of the location of the NVOCC’s
electronically available tariff. It must then
ensure the tariff is published.
Non-U.S.-based NVOCCs that do not
wish to be licensed must provide the Commission
with proof of financial responsibility in the
amount of $150,000, file Form FMC-1, and ensure
a tariff is published at the site listed on the
Form FMC-1. A non-U.S.-based NVOCC must list in
its tariff an agent for service of process in
the United States, and it must use a licensed
OTI for any OTI services performed on its behalf
in the United States.
Non-U.S.-based NVOCCs that choose
to be licensed must submit Form FMC-18, together
with the required documentation and the fee. In
addition it must establish a presence in the
United States such as an unincorporated branch
office. The qualifying individual may obtain
his experience outside the United States. The
amount of financial responsibility is $75,000
plus $10,000 for each unincorporated branch
office in the United States other than the one
used to establish a presence. A Form FMC-1 must
be filed and a tariff published.
An OTI NVOCC may be a shipper
signatory to service contracts with
vessel-operating common carriers. The shipper
party will need to certify on the signature page
its shipper status. The vessel-operating common
carrier is required to obtain proof that the
NVOCC is appropriately licensed for U.S.-based
NVOCCs, bonded, and has published a tariff.
L alandia
undertakes the complete registration process
from A thru Z and, upon acceptance, Lalandia
will file the required Cargo, N.O.S. Tariff and
become your FMC Tariff Publisher. |
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