FMC to Issue Proposed Rule to Amend its NVOCC Bonding Provisions to Reflect Recent U.S.-China Maritime Agreement, Etc
At its January 21, 2004 meeting, the Federal Maritime Commission (FMC) considered a petition from the National Customs Brokers and Forwarders Association of America, Inc. (NCBFAA) requesting that the FMC amend its non-vessel operating common carrier (NVOCC) bonding provisions to reflect a recent U.S.-China maritime agreement.
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Also under consideration at this meeting were three Controlled Carrier Act petitions and the FMC's investigation of certain Chinese shipping practices.
FMC to Issue Proposed Rule to Provide Alternative to Depositing Money in Chinese Banks
According to an FMC press release, at its January 21, 2004 meeting the FMC determined to issue a proposed rule, entitled Optional Rider for Proof of Additional NVOCC Financial Responsibility, as requested by NCBFAA.
The press release states that the proposed rule would change the FMC's rules to allow licensed NVOCCs, at their option, to file proof of additional financial responsibility as an alternative to meet China's new Regulations on International Maritime Transportation (RIMT) requirement for deposit of at least $96,000 in a Chinese bank.
The FMC has previously reported that NCBFAA believes this proposed rule would be an appropriate way to implement recently negotiated provisions of the Agreement on Maritime Transportation (AMT) and Memorandum on Consultations (Memorandum) signed by the U.S. and Chinese governments on December 8, 2003.
(The Memorandum, according to the NCBFAA's petition, provides that the Chinese government will not require U.S. NVOCCs to make a cash deposit in a Chinese bank, as long as the NVOCC: (1) is a legal person registered by U.S. authorities; (2) obtains an FMC license as an NVOCC; and (3) provides evidence of financial responsibility in the total amount of RMB 800,000 or $96,000.)
(See ITT's Online Archives or 12/30/03 news, 03123015, for BP summary of NCBFAA's petition, P10-03. See ITT's Online Archives or 12/12/03 news, 03121215, for most recent BP summary on the AMT.)
FMC Seeks Comments on Petitions for Certain Controlled Carrier Act Relief
At its January 21, 2004 meeting, the FMC also considered the petitions of three Chinese controlled carriers for relief from the 30-day waiting requirement for reduction of tariff rates of the Controlled Carrier Act. The petitions at issue are P3-99, P4-03, and P6-03.
In addition to considering letters from the U.S. Maritime Administrator and the Under Secretary of State for Business, Economics, and Agricultural Affairs that discuss commitments made in the AMT and urge the FMC's favorable consideration of the petitions, the FMC also decided to accept comments until February 23, 2004 in order to ensure that all interested persons have an opportunity to make their views known. The FMC states that it will then schedule a meeting to consider the petitions and comments promptly thereafter.
FMC Also Considers Chinese Shipping Restrictions, Requirements, and Practices
In addition to the above petitions, the FMC discussed D/N 98-14 (Shipping Restrictions, Requirements, and Practices of the People's Republic of China) at its January 21, 2004 meeting and determined that it would take up the matter again when further information is available regarding changes in conditions anticipated as a result of the AMT.
FMC contact - Bryant VanBrakle (202) 523-5725
FMC press release (NR 04-04, dated 01/21/04) available athttp://www.fmc.gov/Pressreleases/NR%2004-04%20Results%20of%201-21-04%20Commission%20Meeting.htm