FMC Commissioner Discusses NSAs, NVOCC Tariff Publication, Foreign Maritime Issues at the NCBFAA Government Affairs Conference
During the September 23-25, 2007 National Customs Brokers and Forwarders Association of America's Government Affairs Conference, Federal Maritime Commissioner Rebecca Dye spoke about a variety of maritime issues, including non-vessel operating common carrier (NVOCC) Service Arrangements (NSAs), NVOCC tariff publication requirements, and certain foreign maritime developments.
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Highlights of Commissioner Dye's Comments
Highlights of Commissioner Dye's comments include the following (partial list):
As of the end of July, the FMC had received approximately 1,322 NSAs filed by 92 NVOCCs. The Commissioner encouraged all NVOCCs to take advantage of this new contracting option.
While the FMC has yet to take action on its 2005 Notice of Inquiry asking for public comment on NSAs being jointly offered by unaffiliated NVOCCs, Commissioner Dye believes that these arrangements would qualify as joint ventures under the Justice Department's guidelines and would strongly support allowing unaffiliated NVOCCs to offer joint NSAs filed at the FMC.
Commissioner Dye recognized NCBFAA's interest in an exemption from the requirement that NVOCCs publish tariff rates on their shipments not covered by a NSA and agreed that the practical usefulness of tariffs may be ending as almost 90% of freight carried to and from the U.S. is currently under contract. The Commissioner added she believes it is time to begin a discussion of tariff reform and consider tariff publishing relief for vessel operating carriers.
Commissioner Dye stated that she supports NCBFAA's position in favor of the current petition before the FMC seeking verification that ocean transportation intermediaries (OTIs) licensed by the FMC be permitted to utilize agents to perform some services on their behalf without a separate license.
According to Commissioner Dye, as she understands it, recent actions by the Chinese government concerning regulations on branch offices that may be causing uncertainty in operations could be interpreted to include any location from which a bill of lading is issued, even if that service is performed by an agent. The Commissioner further stated that the result would be that each agent would be required to obtain a license and deposit the required funds for each location deemed a "branch office."
Regarding the European Commission's (EC's) decision to repeal the exemption from the EC Treaty's ban on restrictive business practices for liner conferences on routes to and from the European Union and how it will affect carrier antitrust immunity in the U.S., Commissioner Dye stated that she does not think the U.S. needs to change its regulatory system in response to this European action.
The Commissioner added that as the end of European antitrust immunity nears, the FMC plans to assess what competitive impacts the change will have on the U.S.-EU liner trades. FMC also plans to undertake an analysis of the utilization of antitrust immunity by vessel operators to enable the FMC to develop policies and revise regulations, if necessary, to better reflect market conditions and activities.
Commissioner Dye's comments (dated 09/24/07) available at http://www.fmc.gov/speeches/newsrelease.asp?SPEECH_ID=238)