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The U.S. Federal Maritime Commission (FMC) Wednesday took a significant step forward in relieving regulatory burdens on Ocean Transportation Intermediaries (OTIs), while simultaneously giving shippers more choices and flexibility, by moving forward with a Final Rule that simplifies requirements for using NVOCC Negotiated Rate Arrangements (NRAs) and NVOCC Service Arrangements (NSAs).

Following final approval by the commission of the new regulatory language, a Final Rule, ''Amendments to Regulations Governing NVOCC Negotiated Rate Arrangements (NRAs) and NVOCC Service Arrangements (NRSs),'' will be published early this summer.

The revision is the culmination of a process initiated with the filing of a petition at the FMC by the National Customs Brokers and Forwarders Association of America (NCBFAA) to reduce the burdens of NRAs and NSAs.

As a result of the redressal action addressing NRAs, the FMC will be implementing three key changes: allowing NRAs to be amended at any time; allowing the inclusion of non-rate economic terms; and, allowing an NVOCC to provide for shipper's acceptance of the NRA by booking a shipment. With the Final Rule, the regulatory agency will make NSAs easier and more attractive to use by removing filing and essential terms requirements.

NSAs and NRAs are instruments created by the FMC, at the request of shipper and carrier stakeholders, respectively in 2004 and 2010. They provide shippers and OTIs with a more efficient way to comply with Shipping Act reporting requirements while relieving them from the tariff filing process.


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