United States has issued a proposed rule that would permit foreign, unlicensed non-vessel-operating common carriers (NVOCCs)
FMC to allow overseas NVOCCs use of US negotiated rate agreements
THE Federal Maritime Commission (FMC) in the United States has issued a proposed rule that would permit foreign, unlicensed non-vessel-operating common carriers (NVOCCs) to offer and enter into Negotiated Rate Arrangements (NRAs) covering ocean transport services in US foreign trade.
This is a break from the FMC's past position on whether unlicensed NVOCC's could use NRAs for non-tariff-based transactions, said a release from the Washington DC law firm Venable.
Specifically, the rule, issued pursuant to Docket 11-22, would extend certain exemptions from the Shipping Act of 1984 and FMC regulations to foreign-based NVOCCs allowing them to enter into NRAs and impose more detailed registration requirements on such foreign-based unlicensed NVOCCs.
Under the current regime, the FMC exempts only licensed NVOCCs that enter into NRAs from the Shipping Act's tariff rate publication requirements and related FMC regulations. The FMC originally elected not to extend the same exemptions to foreign-based unlicensed NVOCCs, citing concern for oversight and record keeping.
The FMC has set a number of tighter registration conditions, including the requirement for foreign-based unlicensed NVOCCs who wish to enter into NRAs and take advantage of the Shipping Act exemptions to register with the FMC. Registration is effective for three years, but can be terminated or suspended owing, for example, to failure to provide an agent for service of process.
Any NVOCC that enters into an NRA will also be subject to the FMC's inspection and reproduction requests. All records produced must be in English or be accompanied by certified translation.
The release added, "The new registration requirements are more onerous for the registrant, but allow the FMC more oversight of foreign-based NVOCCs."
