News
The U.S. Federal Maritime Commission (FMC) recently has issued an Advance Notice of Proposed Rulemaking to amend its rules governing the licensing, financial responsibility requirements and duties of Ocean Transportation Intermediaries (OTIs), the definition for both ocean freight forwarders and non-vessel-operating common carriers (NVOCCs).
Some of the important proposed changes to the regulations are as follows:
- A new section 515.11 (e) is added to provide that a foreign-based NVOCC that opts to obtain a license rather than register is required to establish a presence in the United States by opening an unincorporated office that is operated by a bona fide employee and qualifies to do business where it becomes resident.
- A new section 515.14 (c) requires that OTI licenses be issued for an initial two-year period and renewed every two years. It also requires licensees to submit a license renewal application form 60 days prior to the expiration date of their license. The proposed renewal process for OTIs is straightforward as their license will be issued with expiration dates by which renewal must be completed. The license renewal requirement is intended to ensure that information essential to the FMC's oversight of OTIs is verified periodically.
- A proposed amendment to section 515.21 increases the ocean freight forwarder financial responsibility amount from $50,000 to $75,000; the NVOCC amount from $75,000 to $100,000; and $200,000 for foreign-based, registered NVOCCs.
Comments to regarding these proposed amendments are due on or before July 31, 2013.
