FMC Extends Comment Period on Proposed Rule to Amend NVOCC Bonding Provisions to Reflect U.S.-China Maritime Agreement
The Federal Maritime Commission (FMC) is extending until February 27, 2004 (from February 20, 2004) the comment period on its proposed rule to amend its regulations governing proof of financial responsibility for ocean transportation intermediaries (OTIs) by allowing an optional rider for additional coverage to be filed with a licensed non-vessel operating common carrier's (NVOCC's) proof of financial responsibility for such carriers serving the U.S. oceanborne trade with China.
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The FMC has previously stated that the proposed rule would provide NVOCCs with an alternative to China's new Regulations on International Maritime Transportation (RIMT) requirement for a deposit of at least $96,000 in a Chinese bank.
(On January 22, 2004, the FMC issued an order which granted in part and denied in part a petition filed by the National Customs Brokers and Forwarders Association of America, Inc. (NCBFAA) which requested that the FMC change its rules to effectuate concessions made by China in the recently concluded U.S.-China Agreement on Maritime Transport (AMT).
The AMT's Memorandum of Consultations states that the Chinese government will not require U.S. NVOCCs to make a cash deposit of $96,000 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 $96,000 (RMB 800,000).
See ITT's Online Archives or 01/28/04 news, 04012820, for BP summary of FMC's proposed rule.)
FMC Contact - Amy Larson (202) 523-5740
FMC Notice (D/N 04-02, served 02/19/04) available at