When a person files a formal complaint and does not request an informal small claims procedure, or the other party does not agree to the procedure, the Complaint is assigned to an Administrative Law Judge (ALJ).

Do I need an attorney if my case is assigned to an ALJ?

No, this can be done with or without an attorney.

What are the ALJ authorized to do?

The ALJ is authorized under the Commission’s rules to conduct conferences and hearings so that the Commission can decide the matter in the most speedy and inexpensive way possible, depending upon the nature of the dispute, its complexity, the number of parties involved, etc.

How do the ALJ assist parties in settling disputes?

The ALJ may:
- Refer the dispute to a Commission Mediator
- Issue an initial decision promptly
- Establish a procedure to gather necessary evidence
- Allow parties to review each others’ evidence
- Proceed to a hearing

What is a hearing?

A hearing resembles a courtroom trial in which witnesses will testify under oath and be cross-examined. However, such a hearing is a last resort when efforts to settle the dispute with the help of the Commission’s mediators have not succeeded or the ALJ cannot issue an early decision because the facts are disputed and a more fully developed evidentiary record is required.

Can I appeal the ALJ’s initial decision?

Yes, either side can appeal the ALJ’s “initial decision” to the full Commission, which cannot be done under the “small claims” procedure.

What agreements are required to be filed with the Commission?

Generally, agreements by and among ocean common carriers that provide for the fixing of rates, charges and other conditions of service; the pooling of revenues; the fixing of sailing schedules; the sharing of vessel space; the regulating of competition; the discussion of service contract matters; or any exclusive, preferential, cooperative working arrangement between carriers or with or among marine terminal operators are subject to filing.  Pricing agreements between and among marine terminal operators or between marine terminal operators and ocean common carriers are also required to be filed. 46 C.F.R. § 535.201.

How do I file an agreement with the Commission?

Agreements subject to filing are to be submitted to the Secretary of the Commission at its Washington DC Office, 800 North Capitol Street, NW, Washington, DC 20573. Along with the original signed copy of the agreement, the parties are to submit seven extra copies of the agreement and the appropriate filing fee. 46 CFR § 535.401(g).  Certain agreements require the submission of an Information Form, see 46 C.F.R. 535.501 for applicability.

What is an Information Form?

Commission regulations require that most types of ocean common carrier agreements (including those that have the authority to discuss tariffs, any kind of rate or charge, capacity rationalization, joint service, pooling or service contracts), unless they are low market share agreements (defined at 46 CFR 535.311) submit an Information Form. 46 C.F.R. § 535.503; 46 C.F.R. § 535.201(a).

The Information Form collects and organizes service and economic data of the proposed agreement. 46 C.F.R. 535 Appendix A.

How do I get a copy of an agreement?

Contact the Bureau of Trade Analysis’ Office of Agreements by phone (202) 523-5796, by fax (202) 523-4372, or via email tradeanalysis@fmc.gov.  Copies of agreements involving ocean common carriers may also be downloaded from the FMC website.

Can I get a list of agreements by carrier, type, and geographic region?

The Bureau of Trade Analysis’ Office of Agreements can provide listings of agreements indexed by various means, including individual carrier name, the type of agreement, and by geographic region, such as Asia, North Europe, and the Indian Subcontinent. The Commission can also provide a complete list of all conference agreements.

How do I find out if an agreement has been filed?

You may contact the Bureau of Trade Analysis' Office of Agreements as indicated above.

What is a Form FMC-1?

Form FMC-1 is an Internet-based electronic form to collect tariff location addresses and other specific organizational information of conferences, ocean common carriers, OTIs and MTOs. The information is entered directly into the FMC-1 Form on-line via the Internet.

The Commission’s Rules governing Form FMC-1 are located under 46 CFR § 520.3(d) and (e) for vessel-operating-common carriers/conferences and 46 CFR § 525.3(f) for marine terminal operators. Electronic submission of the Form FMC-1 data is mandatory under Commission Rules. The system processes the information collected in the electronic form and posts the carriers, ocean transportation intermediaries, conferences, and marine terminal operators’ tariff location addresses on the Carriers’ List located on the Commission homepage. The Commission uses the information collected to access the actual tariff publication and review for compliance with Commission rules and regulations. The public uses the Carriers’ List to locate carriers’ tariff location addresses to access tariff publications, and to verify OTI/NVOCC status as set forth under 46 CFR § 515.27(d). Click Here To File a Form FMC-1 For assistance completing the form, please click the HELP button in the upper right-hand corner of the form or contact the Commission on 202-523-5856.

Is Form FMC-1 required regarding tariff(s)?

Yes. Each common carrier (including NVOCCs) and conference shall notify the Bureau of Trade Analysis, prior to the commencement of common carrier service pursuant to a published tariff, of its organization number, home office address, name and telephone number of firm’s representative, the location of its tariffs, and the publisher, if any, used to maintain its tariffs, by electronically submitting Form FMC-1 via the Commission’s website at www.fmc.gov. 46 CFR § 520.3(d).

How are changes submitted to Form FMC-1?

Any changes to the FMC-1 information shall be immediately transmitted to the Bureau of Trade Analysis. § 520.3(d). The filer’s changes can be entered electronically from the View Carrier-OTI List, File FMC-1 main menu, select "Edit an Existing FMC-1 Form, via the Commission’s website, www.fmc.gov.

How do I obtain an Organization Number?

The Commission’s staff will provide a unique organization number to a new entity operating as a common carrier or conference in the U.S. foreign commerce. 46 CFR § 520.3(d). When an organization changes its name, a new Organization Number is assigned. The filer completes an "Initial" FMC-1 Form submission and may leave the Organization Number field blank. A number will be assigned by the FMC staff.

Who must publish a common carrier tariff?

Each vessel operating common carrier, non-vessel-operating common carrier, and conference, except with regard to bulk cargo, forest products, recycled metal scrap, new assembled motor vehicles, waste paper, and paper waste. 46 CFR § 520.3(a).

What must be included in a tariff?

Rates, charges, classifications, rules, and practices between all points or ports on a carrier’s or conference’s own route and on any through transportation route that has been established. Also, content requirements for some provisions in a tariff are the following: places between which cargo will be carried; level of ocean transportation intermediary compensation; each terminal or other charge...; sample copies of bills of lading; any tariff rules; organization record; commodity descriptions; commodity index; tariff rate items; shippers and requests. 46 CFR § 520.4.

What types of services are exempt from tariff publication requirements?

Equipment interchange agreements between common carriers subject to part 520 and inland carriers where such agreements are not referred to in carriers’ tariffs and do not affect the tariff rates, charges or practices of the carriers; and terminal barge operators in Pacific Slope states barging containers and containerized cargo by barge between points in the U.S. in certain instance - 46 CFR § 520.13(b)(1), (2), and (3). Tanker services and non-regularly scheduled liner services, such as with tramp vessel operations.

Does the exemption from tariff publication for certain cargo types such as bulk cargo, forest products, etc., apply equally to both ocean common carriers (VOCC) and non-vessel-operating common carriers (NVOCC)?

Yes.

How do I access a carrier or conference automated tariff system?

Go to the Commission’s website, www.fmc.gov, Click on View Carrier-OTI List/File FMC-1, Click Here to Proceed, Click on View Carrier List, Click on tab for FMC 1 VOCC, or FMC-1 OTI/NVOCC for "accepted filings", Scroll down the list alphabetically to carrier’s name desired, obtain from the Location of Tariff(s) column the carrier’s tariff location address, then logon to the Internet using the tariff location address to find the carrier’s tariff publication in the carrier’s automated tariff system ("CATS"). Some CATS may require that you register to obtain a logon and password to access the system. In addition, a reasonable charge may be assessed to access a CATS system.

When do I file a special permission application?

Where there may be good cause shown to permit a common carrier to deviate from the provisions of rules governing tariffs under part 520, e.g., for issuance of effective dates on less than the statutory notice under the Commission’s rules; or typographical or clerical errors in tariff publication that cause defective tariff material. 46 CFR § 520.14(a) and (b).

How do I correct a clerical error in a tariff?

An application for special permission ("SP") may be submitted, in letter form in duplicate, to the Bureau of Trade Analysis, accompanied with a filing fee of $172/$195. The application must contain: Organization name, number and trade name of the conference or carrier; tariff number and title; and the rate, commodity, or rules related to the application, and the special circumstances which the applicant believes constitutes good cause to depart from the requirements of the Commission’s rules under 46 C.F.R. Part 520, Carrier Automated Tariffs. Should the authority sought under the SP application be granted and assigned a Special Case number, implementation of the authority granted by the Commission must be used in its entirety, including the prompt publishing of the material for which permission was requested. The Applicants shall use the special case number assigned by the Commission. 46 CFR § 520.14(c) and (d).

What is a special docket application for permission to refund or waive freight charges?

See the Commissions’s Rules of Practice and Procedure at 46 CFR § 502.271. Under these provisions, a common carrier or a shipper may file a special docket application seeking permission for a common carrier or conference to refund or waive collection of a portion of freight charges if specific criteria is met. Such application must be submitted to the Office of the Secretary, Federal Maritime Commission.

If a tariff is cancelled, who should provide written notice of cancellation to the Commission?

Carriers and conferences shall inform BTA, in writing, whenever a tariff is canceled and the effective date of that cancellation. 46 CFR § 520.7(b). A carrier or conference may designate its agent to submit, on its behalf, the written cancellation notice to the Commission.

Once a tariff has been canceled, superceded, or withdrawn, how long must its data be maintained in a carrier’s publication system?

Carriers and conferences shall maintain the data that appeared i n its their tariff publication system for a period of five (5) years from the date such information is superseded, canceled or withdrawn, and shall provide on-line access to such data for two (2) years. After two (2) years, such data may be retained on-line or in other electronic form, and shall be made available to any person or the Commission upon request in a reasonable period of time. Carriers and conferences may charge a reasonable fee for the provision of historical data, not to exceed the fees for obtaining such data on-line . No fee shall apply to federal agencies. 46 CFR § 520.10(a).

What if a carrier or conference designates an agent to publish, on its behalf, its tariff in CATS?

It is a carrier’s or conference’s responsibility for the publication of their tariff in CATS , although they may designate an agent to do so on their behalf. 46 CFR § 520.3(a) and (c). Also, the Commission will periodically review CATS and may prohibit the use of any system that fails to meet the requirements of rules governing tariffs under 46 C.F.R. Part 520. 46 CFR § 520.10(c).

What if a carrier or conference fails to pay a designated agent for publishing and maintaining historical tariff data in CATS?

The matter of payment for services between a carrier or conference and its agent involving CATS is a matter between the parties.

When must my tariff be published?

On or before transportation services commence thereunder, or the tariff’s effective date - an OTI/NVOCC must also be in compliance with bonding/licensing requirements under 46 CFR part 515 of the Commission’s rules.

Does the minimum rate display requirement of 46 CFR § 520.6(e) require a list of assessorial charges that actually apply to the shipment?

Yes. Any assessorial charge that will be added to the basic ocean freight rate must be listed individually. If there are other rules or charges that may otherwise affect the shipment under certain circumstances(e.g., minimum quantity rules, quantity discounts, or demurrage) the tariff should also indicate them.

Does the access date capability required by § 520.10(b) only apply to historical data or does it also apply to future dates?

The requirement that tariffs provide the capability for a retriever to enter an access date to obtain data in effect on that date was primarily intended to apply to historical tariff data. Nonetheless, if carriers know what rates are going to be in effect on some future date, they are certainly free to provide accurate information to retrievers about such rates. Therefore, access data capabilities should apply to objects that will become effective on a future date.

Can carriers use codes other than those in the Standard Terminology Appendix?

As stated in § 520.5(a), these codes should serve as a standard baseline for tariff publishers. However, the rule makes clear that publishers can use additional codes, if they clearly define them in their tariffs.

Do conferences have to publish a common tariff?

Yes. Section 8(a)(1) of the Shipping Act, requires a conference to keep open for public inspection, in an automated tariff system, a tariff showing all its rates, charges, classifications, rules and practices for the transportation routes served by it. This statutory requirement is carried forward in § 520.3(a) of the tariff rules. In addition, § 520.3(b) requires conferences to publish in their automated tariff systems rates offered pursuant to independent action by their members, and they can only do so if they have a common tariff.

Can a non-binding discussion agreement publish a common tariff?

No. Section 8(a)(1) of the Shipping Act only recognizes tariffs of individual common carriers or conferences. Moreover, the definition of "tariff" in 46 CFR § 520.2 states that it is " . . . a publication containing the actual rates, charges, classifications, rules, regulations and practices of a common carrier or a conference of common carriers." The definition further notes that "practices" in tariffs, " . . . in the case of conferences, must be restricted to activities authorized by the basic conference agreement."

When does the two-year on-line data retention requirement of 46 CFR § 520.10(a) begin?

On May 1, 1999.

Will the blanket special permission for new tariffs with no increases permitting them to go into effect without the 30 days’ advance notice requirement also apply to controlled carriers?

Yes, to the extent the rates of the controlled carrier are not decreased also. Any action of a controlled carrier in publishing a new tariff that would deviate from other requirements applicable to controlled carriers would require separate special permission.

If a publisher reissues the same tariff that is now in ATFI, can it carry forward the same effective dates for the ATFI tariff matter rather than changing all effective dates of the tariff items to May 1, 1999?

Tariffs may carry-over ATFI tariff items showing the ATFI effective dates in CATS tariffs. On May 1, 1999, all other CATS’ tariff items intended to be effective on May 1, 1999, must show a May 1, 1999 effective date.

What is a correction?

A correction is any change to a service contract which has a retroactive effect. 46 CFR § 530.10(a)(2).

How does a person correct an error in a service contract?

For electronic errors see question No. 19 (dealing with electronic transmission errors). For other errors service contract parties may mutually agree to amend the contract, prospectively, or may file an original and duplicate request for a correction with the Commission’s Office of the Secretary within (45) forty-five days of the contract’s filing with the Commission, accompanied by remittance of a $276/$315 service fee. 46 CFR § 530.10(c).

How does a person access carrier or agreement essential terms publication?

A person can go to the tariff location address of the ocean common carrier or ocean common carrier agreement or conference to view the ET of a service contract required to be made public.

How are service contract effective dates determined?

Service contract parties determine the effective date of a service contract as long as the date is not before the service contract filing date. The specific beginning and ending dates must be specified in the service contract. The effective date starts at 12:01a.m. eastern standard time on the beginning of the effective date. This rule also applies to effective dates of amendments.

What is Form FMC-83?

Form FMC-83 is a service contract registration form. The Form FMC-83 must be filed in order for a filer to obtain user identification, logon and password, to access the SERVCON system to electronically file service contracts.

How can a copy of Form FMC-83 be obtained? How is Form FMC-83 filed with the Commission?

Go to the Commission’s website, www.fmc.gov, click on Forms and Publications, Office of Service Contracts and Tariffs, Service Contract User Registration Form (FMC-83), print a copy of the form, fill out the form completely with the information requested, and fax a copy of the completed form to the Office of Service Contracts and Tariffs at (202) 523-5867. If there are no problems with the FMC-83, the copy is forwarded to the Office of Information Technology to assign logon and password ID and to send the ID by certified mail to the person named on Line 7 of the form authorized to access SERVCON and file service contracts.

Who is required to file Form FMC-83?

Carriers or conferences that enter into service contracts subject to the Commission’s rules governing service contracts must file a FMC-83 Form. 46 CFR § 530.5(c).

What agreements are required to be filed with the Commission?

Generally, agreements between and among ocean common carriers that provide for the fixing of rates and charges, the pooling of revenues, the fixing of sailing schedules, the sharing of vessel space, the regulating of competition, the discussing service contract matters, or any exclusive, preferential, cooperative working arrangement between carriers or with marine terminal operators are subject to filing. Also, with some exceptions (see 46 CFR §§ 535.308, 309, 310) agreements between and among marine terminal operators or between marine terminal operators and ocean common carriers are required to be filed also.

How do I file an agreement with the Commission?

Agreements subject to filing are to be submitted to the Secretary of the Commission at 800 North Capitol Street, NW, Washington, DC 20573. Along with the original signed copy of the agreement, the parties are to submit seven extra copies of the agreement and the appropriate filing fee (see 46 CFR 535.401(g)). Certain agreements also require the submission of an Information Form, see 46 CFR 535.501 for applicability.

How do I get a copy of an agreement?

Contact the Bureau by phone 202-523-5796, by fax 202-523-4372, or via email Tradeanalysis@fmc.gov. In the near future, the public will be able to view and download copies of agreements from this website.

Can I get a list of agreements by carrier, type, geographic region?

The Bureau can provide listings of agreements indexed on various keys such as individual carrier name, the type of agreement, for example a list of all conferences, and by a particular region of the world, Asia, North Europe, Indian Subcontinent, and the like. Contact the Bureau as indicated above. There is a nominal fee for this service.

How do I find out if an agreement has been filed?

You may contact the Bureau as indicated above. In the near future, information on weekly agreement filings will be available through this website.

What is FOIA?

FOIA is an abbreviation that stands for the “Freedom of Information Act.” You can view the Act at http://www.usdoj.gov/oip/foia_guide07/text_foia.pdf.  Pursuant to this Act, the public has the right to request specific documents from the federal government.  When requesting information under FOIA, you should provide as much detail as possible describing the documents you seek.

Do I have to file a request under FOIA to obtain any information from the Federal Maritime Commission?

Will I receive all the documents I request under FOIA?

The FOIA Officer (FMC Secretary) will determine if any information you requested falls into one of the exempted categories. If so, the entire record may be withheld, or sections of it will be redacted or omitted.

How do I file a FOIA request?

What happens if my FOIA request is denied in whole or in part?

Are there any fees or charges in connection with a FOIA request?

What if I am unable to pay the fees?

In general, the Commission does not waive or reduce FOIA service and filing fees. In extraordinary situations, the Commission will accept requests for waivers or fee reductions. Such requests are to be made to the Secretary of the Commission at the time of the FOIA request and must demonstrate that the waiver or reduction of a fee is in the best interest of the public, or that payment of a fee would impose an undue hardship. The Secretary will notify the requester of the decision to grant or deny the request for waiver or reduction of fees.

How long does it take to process a FOIA request?

Once the Commission’s Secretary receives the request, the FMC has 20 working days (excluding weekends and legal holidays) to make a determination on the request. If expedited processing is sought, you must include the reason for expedited processing in your FOIA request letter.

Where can I go to get more information about FOIA?

Who is a MTO?

A Marine Terminal Operator (“MTO”) is a person engaged in the United States in the business of furnishing wharfage, dock, warehouse or other terminal facilities in connection with a common carrier and a water carrier subject to Subchapter II of Chapter 135 of Title 49, United States Code. 49 U.S.C. §13521, or in connection with a common carrier. A marine terminal operator includes, but is not limited to, terminals owned or operated by states and their political subdivisions; railroads who perform port terminal services not covered by their line haul rates; common carriers who perform port terminal services; and warehousemen who operate port terminal facilities. Conferences of marine terminal operators are also considered MTOs. 46 CFR § 525.1(c)(13).

What are MTOs’ obligations for the publication of a schedule?

MTOs are not required to make their schedule(s) of rates, regulations and practices (formerly called “MTO tariffs”) available to the public. A MTO that elects to make their schedules available to the public must make them available in electronic form. When an MTO opts to publish its schedule, its name and location address of its schedule(s) provided in its FMC-1.  The names of MTOs that opt not to make their schedule(s) available to the public are not posted on the website, but are maintained in the Commission’s Form FMC-1 internal database. Should an MTO maintain parallel terminal schedules in paper form for entities in the shipping industry who are unable to access electronic terminal schedules, the electronic version will govern in the event of a conflict with the parallel paper form of terminal schedules since the electronic format is the required method of publication. 46 CFR § 525.2(a) and 46 CFR § 525.3(a)(2).

How are MTO schedules accessed?

An MTO that elects to make its schedules available to the public will provide a location address in its FMC-1 Form that is submitted to the Commission. 46 CFR § 525.3(f).

What is Form FMC-1?

Form FMC-1 is an interactive electronic form required under the Commission’s rules at to be filed by MTOs notifying the FMC, prior to commencement of marine terminal operations, of its organization name, organization number, home office address, name and telephone number of its representative, the location of its terminal schedule(s), and the publisher, if any, used to maintain its terminal schedule. 46 CFR 525.3(f)

Where is Form FMC-1 located and how is it filed?

Form FMC-1 is located on the Commission’s website, www.fmc.gov. The form is available electronically and filed http://www.fmc.gov,interactively by clicking on Tariff Registration Form (FMC-1), Click Here to Proceed on the Disclaimer screen, File an Initial FMC-1 Form button and completely filling-in information on the form. When you have finished click Save and Exit to transmit the Form FMC-1 filing to the FMC. If you need assistance completing the form, use the “Help” button in the upper right-hand corner of the form. In addition, if you opt to make your terminal schedule(s) available to the public, before clicking Save and Exit, you must click the “Add Publisher” button at the bottom of the screen, complete all required entries identifying the location and publisher of your electronically published schedule(s); when you are finished, click “Save and Return” (this takes you back to the Organization information screen), next scroll down to the bottom of the Organization information screen and click “Save and Exit” to transmit the FMC-1 Form filing to the FMC.

Are MTOs required to file FMC-1 Form?

Yes. All MTOs subject to Commission jurisdiction must file an FMC-1 form, whether or not they intend to publish their terminal schedules.

If a parent MTO has various subsidiaries that run additional terminals, who needs to file the FMC-1?

The parent must file for itself, and an additional form for a subsidiary need only be filed if the subsidiary intends to publish its terminal schedules at a different electronic location than the parent. Either the parent or the subsidiary may file the additional FMC-1 form.

If an MTO adopts the published terminal schedule of a different MTO, but that schedule does not include a limitation of liability, can the MTO publish its own limitation of liability?

Yes. If an MTO wants to avail itself of the implied contract provision of the rule in relation to a limitation of liability, then it must publish such limitation of liability in the same manner it would publish a terminal schedule.

What are some examples of things that can go wrong on my move?

The Commission receives a number of complaints. Some frequent problems encountered are:

-  Late shipments

- The moving company cannot be reached

- The moving company is demanding additional charges such as storage charges, incurred through no fault of  the consumer.

- The moving company claims the original estimate as to weight or measure was inaccurate, and demands additional charges.

- The shipment cannot be located, and no one seems to have any idea where it is.

- Goods are damaged and the consumer paid for insurance, but the moving company did not purchase any insurance on behalf of the consumer.

How do I protect myself and find a reputable mover to move my goods overseas?

We strongly urge all individuals undertaking an international move to hire a moving company that is FMC licensed and bonded. It is possible to locate a list of such companies here. We urge individuals to be wary of using online search services as many rogue movers use these services to lure unsuspecting individuals. If you have questions regarding a company you may call FMC’s Office of Consumer Affairs & Dispute Resolution Services at 202-523-5807.

It is also important to receive several quotes from different companies who have performed an onsite inspection of your goods. Do not rely on a company’s telephone quotations as these are often inaccurate. For additional information please visit www.protectyourmove.gov. Although that site provides advice for interstate moves, rather than international, much of its advice is practical advice that could be applied to international moves as well.

What is a rogue mover?

Despite the high number of reputable moving companies, there are some that work to defraud the public. These dishonest companies generally promise good service for a low rate. However, these companies often charge 2-3 times the promised amount and hold the consumer’s goods hostage for more money. In some cases, these companies take shipments with no intent to deliver the goods so consumers are left to find their shipment and pay another moving company additional money to ship their goods.

What are signs that I may be dealing with a rogue mover?

There are several red flags associated with rogue movers. For example, any company that does not offer or agree to an onsite inspection of your goods and provides phone estimates can be a sign of trouble to come as these companies offer rates that are too good to be true. Another common sign is that the company refuses credit cards and demands a large cash deposit before the move. Many of these companies also lack a local address and do not have licensing information. For more information on how to spot a rogue mover, please visit www.protectyourmove.gov

Why does my mover need to be FMC licensed and bonded?

Federal law (i.e., the Shipping Act of 1984) requires Ocean Transportation Intermediaries to be licensed and bonded. This provides protection for consumers. In the event that there is a transportation dispute with the company that cannot be resolved, the consumer may submit a claim against that company’s bond. In cases where consumers hire unlicensed/ unbonded entities it is much more difficult to seek recovery.

My unlicensed Mover gave me a great rate. Why should I pay more for a licensed mover?

In many situations rogue movers will offer a lower rate and other moving related “perks” such as free insurance to entice consumers into using their services. However, in most cases, after the goods are picked up, such rogue movers may demand a rate that is 2-3 times greater than the initial quote and adds many hidden unexplained charges. The consumer is usually told that unless the extra money is paid the goods will be abandoned. The extra payments do not always guarantee receipt of the goods and the consumer must locate his goods and begin the process again with another mover.

The Company’s website states that it is FMC licensed. How can I verify this?

Rogue movers often claim to be FMC licensed when they are not and provide false licensing numbers. The only way to guarantee that your mover is licensed is to confirm that fact with the FMC. The Commission lists licensed ocean transportation intermediaries at its web site, or you may contact the FMC’s Bureau of Certification and Licensing (202-523-5843) or the Office of Consumer Affairs & Dispute Resolution Services (202-523-5807).

My moving company states that all of its agents are FMC licensed. Am I protected?

No. Any company that holds itself out as an international moving company should be licensed by the FMC if it offers international ocean transportation of your goods. In many instances rogue movers have used legitimate companies as intermediaries and failed to pay those companies for services. This leaves the consumer in a position where he must make a double payment, that is, pay the legitimate company in order to receive his goods.

My company states that it is an agent for an FMC licensed company. Am I protected?

Federal law permits companies to act as sales agents for a licensed company. To protect yourself, however, the agent should provide you with a bill of lading or other information identifying which company is taking responsibility for shipment and delivery of your household goods. For your protection, you should ensure that any contract you sign is with the licensed entity and not the agent.

I just gave a deposit to a company that is not licensed. What can I do?

In many situations the best thing to do is to cancel the shipment, cut your losses, and hire a licensed company. While you may lose the deposit you save more time, money, and energy in the long run.

An unlicensed company just picked up my goods and they will not return my calls. What can I do?

Please call the Office of Consumer Affairs & Dispute Resolution Services immediately at 202-523-5807, or email to complaints@fmc.gov. Someone will assist you in attempting to locate your goods and ensure delivery.

What is an ocean transportation intermediary (OTI)?

An OTI may be either an ocean freight forwarder, a non-vessel-operating common carrier (NVOCC), or both an ocean freight forwarder and an NVOCC.

What is an ocean freight forwarder?

An ocean freight forwarder is an individual or company in the United States that dispatches shipments from the United States via common carriers (defined at 46 U.S.C. app. §1702(6)) and books or otherwise arranges space for those shipments on behalf of shippers (defined at 46 U.S.C. app §1702(21)).Ocean freight forwarders also prepare and process the documentation and perform related activities pertaining to those shipments.

What is an NVOCC?

An NVOCC is a common carrier that does not operate the vessels by which ocean transportation is provided, and is a shipper in relation to the involved ocean common carrier.

What are OTI services?

Freight Forwarding OTI services refer to the dispatching of shipments on behalf of others to facilitate shipments by common carriers, including ordering cargo to port; preparing or processing export declarations, bills of lading and other export documentation; booking or confirming cargo space; arranging for warehouse space; arranging cargo insurance; clearing shipments in accordance with United States Government export regulations; preparing and/or sending advance notice of shipments to banks, shippers, and consignees; handling freight monies on behalf of shippers; coordinating the movement of shipments from origin to the vessel; and giving expert advice to exporters.

NVOCC OTI services refers to the provision of transportation by water of cargo between the United States and a foreign country (whether import or export) for compensation without operating the vessels by which the transportation is provided. NVOCC OTI services may include purchasing transportation services from vessel-operating common carriers for resale; payment of port-to-port or multi-modal transportation charges; entering into affreightment agreements with underlying shippers; issuing bills of lading or equivalent documents; arranging and paying for inland transportation on through transportation movements; paying lawful compensation to ocean freight forwarders; leasing containers; and entering into arrangements with origin or destination agents.

When is an OTI license required?

An OTI license is required of any individual or entity which is resident in or incorporated in the United States and performs OTI services in the foreign commerce of the United States.

Can I be both an ocean freight forwarder and an NVOCC?

Yes, an entity can operate as a freight forwarder and as an NVOCC, but generally cannot be compensated for serving in both roles on the same transaction. That is, if you issue your own NVOCC bill of lading and collect ocean freight at your published rate for that shipment, you cannot also collect forwarding compensation on that same shipment.

Do I need an OTI license from the FMC to forward shipments by air or modes of ground transportation in foreign or domestic commerce?

No, although other federal agencies may have specific requirements.

Do I need an OTI license to move cargo by ship domestically within the United States or its territories?

No, however, there may be requirements imposed by the Surface Transportation Board (“STB”). You may view the STB website at http://www.stb.dot.gov or call the general information phone number at (202) 565-1500 for further information.

May I share my license to operate as an OTI with an unlicensed person or company?

No, only a licensee may operate pursuant to its license.

May I perform ocean freight forwarding activities without being licensed?

Yes, but only in certain situations. A shipper (a person whose primary business is the sale of merchandise) may perform freight forwarding activities on behalf of its own shipments or the shipments of a parent, subsidiary, affiliate, or associated company. An ocean common carrier, or its agent, may perform freight forwarding activities with respect to cargo carried under the carrier’s own bill of lading. Fees for performing these activities must be filed in the carrier’s tariff. However, except as provided, unlicensed freight forwarders may not book or arrange vessel space for others, process shipping documentation or collect freight forwarder compensation from the ocean carriers.

How does an ocean freight forwarder OTI get paid?

In providing its various services, an ocean freight forwarder charges fees to its customers (the shippers) and may also collect compensation from the common carrier in accordance with the terms of its tariff.

If I, as a shipper, forward my own shipments, am I entitled to receive ocean freight forwarder compensation from the ocean carrier?

No, only licensed OTI freight forwarders may receive forwarder compensation. Freight forwarders may not receive compensation on shipments in which they have a beneficial interest.

Do I have to renew my license?

No, but if a license is surrendered or revoked by the Commission for cause, you must reapply.

My license as an OTI has an “F” or an “N” on it. What does it mean?

The “F” or “N” identifies a licensee as a freight forwarder (“F”) or an NVOCC (“N”).

If I am licensed and decide I no longer want to operate as an OTI or I am a joint NVOCC and freight forwarder OTI and I no longer want to operate one of my services, what must I do?

If you no longer want to operate as an OTI, you must:

- Surrender your license to the Bureau of Certification and Licensing, Federal Maritime Commission, 800 North Capitol Street, N.W., Washington, D.C. 20573.

- Advise your financial responsibility provider, and if you are an NVOCC, your tariff publisher, that you no longer are operating as an OTI.

The Commission will issue you a letter of voluntary surrender and the surrender will be effective the date your license was received by the Commission. If you are an NVOCC OTI, your FMC-1 listing will be designated as inactive on the Commission website. A notice of the surrender will be published in the Federal Register. You may no longer offer OTI services once you have surrendered your license. If you are a joint NVOCC/freight forwarder OTI and wish to surrender a portion of your license, you must notify the Commission and your financial responsibility provider of your surrender. A letter of surrender will be issued to you with regard to the surrendered service and a notice published in the Federal Register. You must contact your financial responsibility provider to cancel the coverage of the surrendered service. If you are surrendering the NVOCC portion of your license, you must notify your tariff publisher to cancel your tariff and the Commission will designate your FMC-1 listing as inactive. You will be issued a new license indicating the service you will continue to offer and you must return the joint “NF” license that you held. A reissuance notice will be published in the Federal Register.

Where can I find regulations regarding OTIs?

Regulations governing OTIs can be viewed on the Commission’s website at www.fmc.gov. Please click on the “Regulations” heading. Part 515, Licensing, Financial Responsibility Requirements, and General Duties for Ocean Transportation Intermediaries, contains the regulations relating to OTIs. In addition, Part 520, Carrier Automated Tariffs, Part 530, Service contracts, and Part 531, NVOCC Service Arrangements, apply to NVOCC OTIs.

How may I contact the Commission with regard to OTI matters?

The Federal Maritime Commission’s Bureau of Certification and Licensing has two offices that deal with OTI issues.

(1). The Office of Transportation Intermediaries reviews OTI applications and issues the licenses. This office may be contacted by telephone at (202) 523-5843, by facsimile at (202)566-0011 or e-mail at OTI@fmc.gov.

(2). The Office of Passenger Vessels and Information Processing handles the OTI surety bonds and other forms of financial responsibility. This office can be contacted by telephone at (202) 523-5818, by facsimile at (202) 523-5830 or e-mail at OTIbonds@fmc.gov. Normal business working hours are 8:30 a.m. to 5:00 p.m.

Street address: Bureau of Certification and Licensing Federal Maritime Commission 800 North Capitol Street, N.W. Washington, D.C. 20573.

How may I contact the Commission for further information about Form FMC-1, tariff, NVOCC service arrangement or service contract requirements?

Issues relating to tariffs, service contracts and NVOCC service arrangements are handled primarily by the Commission’s Bureau of Trade Analysis, Office of Service Contracts and Tariffs. This office may be contacted by telephone at (202) 523-5856, by facsimile at (202) 523-5867, or email at form1@fmc.gov.

How do I obtain an OTI license?

Submit a completed Form FMC-18 to the Commission demonstrating that the applicant has the required experience and character to offer OTI services. The applicant must include the appropriate fee and documentation supporting the application and provide evidence of financial responsibility for licensing. Commission staff will review the application, contact references and conduct an investigation of the applicant. If staff determines the applicant has the requisite experience and character, an OTI license will be issued.

How do I submit a license application?

Applicants must file Form FMC-18 in duplicate. This form may be downloaded and printed from the Commission’s website at www.fmc.gov (click on “Forms” under “Bureau of Certification and Licensing”) or obtained from the Office of Ocean Transportation Intermediaries. The application must be accompanied by a money order, a certified check, cashier’s check, or a personal check made payable to the Federal Maritime Commission. The fee for an initial application is $825, and for an amended application, $525. Failure to include the proper fee with your application will cause it to be returned without processing. The completed application may be mailed or sent by courier to:

Bureau of Certification and Licensing,
Federal Maritime Commission
800 North Capitol Street
NW, Washington, D.C. 20573.

If you require evidence of delivery, please enclose a stamped, self-addressed envelope and an extra copy of the cover letter or the first page of the application. Commission staff will date stamp the extra copy of the cover letter or the first page of the application and return it to you.

May I apply for an OTI license as both an ocean freight forwarder and an NVOCC on the same Form FMC-18?

Yes. When applying for both NVOCC and ocean freight forwarder authority on the same application, the filing fee is $825. If the applicant is an existing licensed NVOCC OTI and wishes to add freight forwarding service to its license or is an existing licensed freight forwarder and wishes to add NVOCC OTI service to its license, the fee is $525.

Can a lawyer or other third party prepare Form FMC-18?

Yes, but the Form FMC-18 must be signed by the applicant.

What documentation must be submitted with application Form FMC-18?

Documentation that must be submitted with Form FMC-18 includes: Proof of the applicant’s name and existence: If sole proprietor: business license and driver’s license If corporation: articles of incorporation and certificate of good standing (or its equivalent) If partnership: partnership agreement If a trade name is used: fictitious name statement (or equivalent) issued by the state Proof of the qualifying individual’s position: If a corporation:corporate minutes or resolution showing the appointment of the qualifying individual as an officer of the applicant corporation If a partnership: partnership agreement

What fees are required?

As noted above, the fee for an initial application for an OTI license is $825. The fee for applications for changes in operations that require the reissuance of a license is $525. When applying for both NVOCC and ocean freight forwarder authority on the same application, the filing fee is $825. All payments may be made by money order, certified check, cashier’s check, or personal check made payable to “Federal Maritime Commission.” Please do not send cash. Failure to include the proper fee with your application will cause it to be returned without processing. Fees will not be refunded in any instance where the application has been processed in whole or in part.

How long will it take to process my application?

Applications are normally approved within 45 days from receipt of the application, assuming the application is complete and the Commission’s investigation does not reveal any circumstances that would preclude licensing.

What experience must an applicant have?

The applicant must designate a qualifying individual who has a minimum of three (3) years’ experience in OTI activities in the United States. A foreign NVOCC seeking to be licensed must also demonstrate that its proposed qualifying individual has a minimum three years experience in OTI activities. However, such experience may be gained outside of the United States. Academic study or course work may not be substituted for this experience. In addition, a potential qualifying individual must possess the necessary character to render OTI services.

Who can be a qualifying individual of an OTI?

A qualifying individual is the person who possesses the OTI experience and necessary character to qualify the OTI applicant for licensing. The qualifying individual must be:

(1) for a sole proprietorship, the applicant sole proprietor.

(2) for a partnership, at least one of the active managing partners, but all partners must execute the application.

(3) for a corporation, at least one of the active corporate officers. Corporate officers include president, vice president, secretary or treasurer. Positions which are largely descriptive of job function, i.e., director of operations or vice president of export, typically are not recognized by state authorities as officers of a corporation.

How is the work experience of the QI verified?

The application must provide the name, address, telephone number, position, and work relationship of at least 3 non-related references who have first hand knowledge of the QI's work experience.

May one person be a qualifying individual for two or more OTI applicants?

A qualifying individual of one active licensee may serve as the qualifying individual of another OTI only if both entities are commonly owned or where one directly controls the other. Separately incorporated branch offices may fit this definition.

What are the financial responsibility requirements?

Every OTI must furnish proof of acceptable financial responsibility in the form of a surety bond, insurance, or guaranty to cover its transportation-related activities while the OTI is acting as an ocean freight forwarder or an NVOCC.

An ocean freight forwarder must furnish proof of financial responsibility in the amount of $50,000 plus $10,000 for each unincorporated branch office in the United States.

 An NVOCC operating in the United States must furnish proof of financial responsibility in the amount of $75,000 plus $10,000 for each unincorporated branch office in the United States.

An unlicensed, foreign-domiciled OTI must furnish proof of financial responsibility in the amount of $150,000.

A licensed foreign-domiciled OTI must furnish proof of financial responsibility in the amount of $75,000 plus $10,000 for each additional unincorporated branch office in the United States (not counting the unincorporated presence it has established in the United States to qualify for licensing).

How do I file my proof of financial responsibility?

Typically, applicants provide proof of financial responsibility in the form of a surety bond filed on Form FMC-48. This Form may be downloaded from the Commission’s website or obtained from the Office of Ocean Transportation Intermediaries or the Office of Passenger Vessels and Information Processing. The proof of financial responsibility must be signed by both a representative of the OTI and the financial responsibility provider.

When must I provide proof of financial responsibility?

You may file proof of financial responsibility with your application to save time. You must file proof of financial responsibility upon notification by the Commission that your application has been approved. The license will not be issued until the Commission has received acceptable proof of financial responsibility. The applicant’s name as principal on the proof of financial responsibility must match exactly the legal name of the applicant, including abbreviations, punctuation, capitalization and assumed or trade names. The address on the proof of financial responsibility must be that of the headquarters office, and the addresses of unincorporated branch offices must be listed and the amount of the proof of financial responsibility increased accordingly. In the case of surety bonds, a power of attorney issued by the surety must be attached to the bond. If more than six (6) months lapse from the time the Commission approves an application and the date it receives the proof of financial responsibility, the Commission may undertake a supplementary investigation to determine the continued qualification of the applicant. The fee for any such supplementary investigation is $225. Should the Commission not receive proof of financial responsibility from the applicant within two (2) years from the date of approval, the Commission will consider the application void.

If I am licensed as both an ocean freight forwarder and an NVOCC, may I provide proof of financial responsibility using one combined instrument?

No. Separate proofs of responsibility must be provided. The NVOCC proof of financial responsibility will only cover claims arising from the NVOCC’s transportation-related activities and the freight forwarder proof of financial responsibility will only cover claims arising from its freight forwarder services.

How do I find a surety bonding company?

The Department of Treasury maintains a list of approved surety bonding companies (Circular 570). It can be viewed at their website: http://www.fms.treas.gov/c570/index.html You also may contact the Department of Treasury in writing at the following address:

U.S. Department of Treasury Financial Management Service
(FMS) Surety Bond Branch
3700 East-West Highway Room 6FO7
Hyattsville, MD 20782.

You may also call FMS at (202) 874-6850 or send a facsimile to (202) 874-9978.

I am a licensed OTI and my instrument of financial responsibility is cancelled, what may I expect?

The financial responsibility provider will send notice to the Commission that your coverage will be terminated. Termination becomes effective 30 days after receipt by the Commission of the notice or the date designated by the provider if the cancellation date is greater than 30 days. The Commission will issue you a letter notifying you of the provider’s cancellation and the effective date of the cancellation. The provider, and if applicable, your tariff publisher, will receive a copy of this letter. The letter advises you that your license will be revoked by the Commission without hearing or other proceeding after the effective date of the cancellation unless you provide replacement coverage or the provider issues a recission of the cancellation. If you are an NVOCC OTI, you will be directed to cancel all NVOCC tariffs by the cancellation date. If you fail to provide replacement coverage, an Order of Revocation will be issued to you and notice of the revocation will be published in the Federal Register. Revocation is effective on the date of the coverage cancellation. You will be ordered to return your license and will be prohibited from performing OTI services. If you are an NVOCC OTI, the Commission will designate your FMC-1 listing as inactive.

I am an unlicensed foreign NVOCC OTI and my instrument of financial responsibility is cancelled. What may I expect?

The financial responsibility provider will send notice to the Commission that your coverage will be terminated. Termination becomes effective 30 days after receipt by the Commission of the notice or the date designated by the provider if the cancellation date is greater than 30 days. The Commission will issue you a letter notifying you of the provider’s cancellation and the effective date of the cancellation. The provider and your tariff publisher will receive a copy of this letter. The letter directs you to cancel your tariffs by the effective date of the cancellation and advises that you may no longer operate as an OTI NVOCC in the foreign trades of the United States. The Commission will designate your FMC-1 filing as inactive.

If my proof of financial responsibility is cancelled and my license is revoked and I obtain new coverage, what must I do?

If the effective date of the new coverage is no later than the effective date of the cancellation of the prior coverage (and license revocation effective date), you must notify the Office of Passenger Vessels and Information Processing by phone at (202) 523-5818, facsimile at (202) 523-5830 or e-mail at OTIbonds@fmc.gov and submit the replacement coverage. In most cases you will be reissued a license effective the date of the prior coverage cancellation and license revocation. If you are an NVOCC OTI, you will need to have your tariff publisher file a replacement FMC-1 form and publish a replacement tariff. If there is a break in OTI bond coverage, you will need to reapply for licensing by submitting Form FMC-18, a fee of $825 and the replacement coverage.

How do I seek a claim against the bond or insurance of an OTI?

If you seek to pursue a claim against an OTI financial responsibility provider arising from the OTI’s transportation-related activities, you may attempt to resolve the claim with the financial responsibility provider prior to seeking payment on any judgment for damages obtained. If you seek payment without a judgment, you must simultaneously notify both the financial responsibility provider and the OTI of the claim by certified mail, return receipt requested. The bond, insurance or other surety may be available to pay your claim if:

(1) the OTI consents to payment, subject to review by the financial responsibility provider; or

(2) the OTI fails to respond within forty-five days from the date of the notice of claim, and the financial responsibility provider deems the claim valid.

If the parties fail to reach an agreement within ninety days of the date of the initial notification of the claim, the bond, insurance or other surety shall be available to pay any final judgment for damages obtained from an appropriate court. The financial responsibility provider shall pay such judgment for damages only to the extent they arise from transportation-related activities of the OTI, ordinarily within 30 days, without requiring further evidence related to the validity of the claim. It may, however, inquire into the extent to which the judgment for damages arise from the OTI’s transportation-related activities. The financial responsibility provider may be found in the rules section of the NVOCC’s tariff. In addition, the name and address of the financial responsibility provider of an OTI may be obtained from the

Office of Passenger Vessels and Information Processing 
Federal Maritime Commission  
Washington, D.C. 20573.

This office may be contacted by phone at (202) 523-5818, by facsimile at (202) 523-5830 or e-mail at OTIbonds@fmc.gov.

What is the Optional Rider for Additional NVOCC Financial Responsibility (“Optional Rider”)?

The Optional Rider (located on the FMC Forms Page) is a rider that NVOCCs serving the U.S.-China Trade may attach to their NVOCC bond to meet the NVOCC licensing requirements of the People’s Republic of China (“PRC”). The rider is a convenience offered by the Commission to U.S. NVOCCs as a result of a bilateral maritime agreement between the United States and the PRC. The agreement’s Memorandum of Consultations provides that the PRC 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 OTI License from the Commission; and

(3) provides evidence of financial responsibility in the total amount of $96,000. The rider adds an additional $21,000 to the $75,000 bond already maintained by the NVOCC as a condition of licensing.

Can the PRC seek to collect fines and penalties against the entire NVOCC bond?

No. The PRC may only collect fines and penalties for violations of its shipping statutes and regulations from the Optional Rider. It may not collect such fines and penalties from the base $75,000 bond.

Is the Optional Rider available to shippers, carriers or others seeking claims for transportation-related activities under the Shipping Act?

No. The Optional Rider is available only to provide coverage should the PRC seek fines and penalties against the NVOCC for violation of its shipping laws.

Does the Optional Rider affect my ability to seek and collect on a claim for transportation -related activities under the Shipping Act?

No. You may file a claim against the base bond. However, the $21,000 Optional Rider is not available for such claims.

Where may I direct questions regarding the shipping regulations of the PRC?

The Commission cannot provide guidance for questions regarding the shipping regulations of the PRC. You should contact the PRC Ministry of Communications to obtain advice.

How may I obtain the Optional Rider?

You may contact the underwriter of your OTI NVOCC bond to determine whether it will be willing to issue an Optional Rider to your bond. If so, it will file the rider to your OTI NVOCC bond. The Optional Rider will be effective on the date shown in 1.c. of the Optional bond.

May I obtain an Optional Rider from a surety other than the surety that underwrites my NVOCC OTI bond?

No. The Optional Rider is a rider to your existing OTI NVOCC bond. It cannot be issued independently of that bond.

Where may I obtain a copy of the Optional Rider?

You may view and copy the Optional Rider forms under the Bureau of Certification and Licensing/Forms heading on the Commission’s website at www.fmc.gov. The Optional Rider for the individual OTI bond form, Form FMC-48, is numbered Form FMC-48A and the Optional rider for the OTI group bond, Form FMC-69, is numbered Form FMC- 69-A.

May I terminate the Optional Rider and keep the base bond in effect?

Yes. The Optional Rider may be terminated by either the NVOCC or the surety. Termination will become effective 30 days after receipt of the Notice of Termination by the Commission and proof that the PRC Minister of Communication has been notified.

How may I determine which NVOCCs have filed an Optional Rider?

You may consult the OTI List on the Commission’s website and look at the Optional Bond Rider for China Trade column. A date in that field indicates the effective date of the Optional Rider on file with the Commission for the corresponding NVOCC. .

What are the requirements for an unincorporated branch office and one that is separately incorporated?

A branch office is any office in the United States maintained by or under the control of a licensee, performing OTI services, that operates under a common corporate charter. Individual unincorporated branch offices are not required to be licensed provided that they have been reported to the Commission and are covered by increased financial responsibility. A separately incorporated branch office is one operating under a separate corporate charter from its parent or affiliated licensee. Each separately incorporated branch office must provide its own proof of financial responsibility and be separately licensed, but may have the same qualifying individual.

If my headquarters office does not perform OTI services, but my unincorporated branch office performs those services, can I only report the branch office and provide financial responsibility for that office only?

No. Even though the headquarters office does not provide OTI services, its address must appear on the financial responsibility coverage as the headquarters. The branch office must also appear on the coverage and the coverage increased $10,000 for that branch office.

How does an applicant identify its business affiliations or ownership?

Business ownership and all related business affiliations must be explained on the application form by providing the names, addresses, and contact numbers. The percentage of ownership must be indicated and total 100%.

Are OTIs required to publish a tariff?

Freight forwarders are not required to publish tariffs. NVOCCs are required to publish tariffs. However, if a separately incorporated and licensed NVOCC branch office performs OTI services solely for the headquarters office, the branch office does not need to publish its own tariff. The branch office, in this instance, however, must still file an FMC-1 form and indicate the location of the headquarters tariff.

Where do I find the regulations as to publishing a tariff?

Tariff regulations may be found at 46 CFR Part 520. These are accessible at the Commission website at www.fmc.gov. (Click on “Regulations”)

How can I find a tariff publisher?

A list of tariff publishers can be obtained from the Commission. You may contact the Bureau of Trade Analysis, Office of Service Contracts and Tariffs by telephone at (202) 523-5856.

What is a NVOCC service arrangement?

NVOCC Service Arrangement ("NSA") means a written contract, other than a bill of lading or receipt, between one or more NSA shippers and an individual NVOCC or two or more affiliated NVOCCs, in which the NSA shipper makes a commitment to provide a certain minimum quantity or portion of its cargo or freight revenue over a fixed time period, and the NVOCC commits to a certain rate or rate schedule and a defined service level. The NSA may also specify provisions in the event of nonperformance on the part of any party.

Where do I find the regulations on NVOCC service arrangements?

NVOCC service arrangement regulations may be found at 46 CFR Part 531. These are accessible at the Commission website under Statutes and Rules.

If I have questions about tariffs, NVOCC service arrangements or service contracts, including filing a FMC-1 form or a FMC-78 form, whom may I contact?

You may contact the Commission’s Bureau of Trade Analysis, Office of Service Contracts and Tariffs by telephone at (202) 523-5856 or e-mail at  form1@fmc.gov.

I am already licensed as an OTI. What changes in my operations must I report to the Commission?

Generally, all changes in the information contained in a licensee’s initial application must be reported to the Commission. A replacement or the addition of a qualifying individual requires Commission approval. In addition, the transfer of a license or change in legal name, including trade name, requires Commission approval. Changes in business structure or address of headquarters or branch offices must be reported. In most instances, changes must be reported within 30 days from their occurrence.

What should I do if a sole-proprietor dies, or if a qualifying individual leaves?

If a licensed sole-proprietor dies, the licensee’s executor, administrator, heirs, or assign(s) may continue operating only for those shipments for which the deceased had undertaken to provide OTI services. The death must be reported to the Commission and to all principals and shippers within 30 days. The acceptance or solicitation of any other shipments is prohibited until a new license is issued. If the qualifying individual of a partnership or corporation leaves, the licensee must report the departure to the Commission within 30 days. Within this same 30 days, the licensee must nominate and detail the OTI experience of another managing partner or officer to qualify the licensee. The licensee may continue to operate while the Commission investigates the qualifications of the newly designated qualifying individual.

What must I do if I incorporate my business? Change my name?

Newly incorporated licensees, or licensees that have changed their names, must file an amended FMC-18. A fee of $525 will be charged to reissue the license. A corporate charter or amended corporate charter must accompany the application.

What must I do if I change my headquarters address?

If you move, report your new address by letter or on an amended FMC-18. The Commission does not charge for such notification. You must also notify your financial responsibility provider to amend your coverage to show the new address. If you are an NVOCC OTI, you will need to contact your tariff publisher so that a revised FMC-1 Form is filed and your tariff is updated.

What must I do if I open or close an unincorporated branch office?

If you close an unincorporated branch office which was used to perform OTI services, or open an unincorporated branch office, you will need to report this change to the Commission by letter or amended Form FMC-18. Further, you will need to contact your financial responsibility provider so that your coverage is amended to reflect the change. The Commission charges no fees for changes regarding unincorporated branch offices.

What are the requirements of an unlicensed foreign-based NVOCC OTI?

A foreign-based OTI NVOCC that is not resident in, or incorporated or established under, the laws of the United States and intends on remaining unlicensed, must file proof of financial responsibility in the amount of $150,000. It must also identify an agent for service of process in the United States and use a licensed OTI for any OTI services performed in the United States on its behalf. It must also file Form FMC-1 with the Commission and publish a tariff.

May a foreign-based NVOCC OTI obtain an OTI license?

A foreign-based NVOCC OTI may obtain a license by following the requirements mentioned above for obtaining a license. Its qualifying individual may obtain experience outside the United States. The NVOCC must also establish an unincorporated presence in the United States that meets the requirements of the state in which it is located. If the Commission approves the application, the OTI must provide acceptable proof of financial responsibility in the amount of $75,000 plus $10,000 for each additional unincorporated branch office in the United States (not counting the presence established for licensing purposes).

I am an unlicensed foreign-based NVOCC OTI and I no longer want to serve the United States trades, what must I do?

You must notify the Office of Passenger Vessels and Information Processing by phone at (202) 523-5818, facsimile at (202) 523-5830 or e-mail at OTIbonds@fmc.gov that you no longer are operating in the United States trades. You must also notify your tariff publisher and your financial responsibility provider. The Commission will designate your FMC-1 listing as inactive. After this is done, you are prohibited from providing OTI NVOCC services in the foreign commerce of the United States.

What are Non-Vessel-Operating Common Carrier Service Arrangements ("NSAs")?

An exemption recently issued by the Federal Maritime Commission (FMC), allows non-vessel-operating common carriers (NVOCCs) to now enter into service arrangements with their shipper/customers called NSAs (non-vessel-operating common carrier service arrangements). 46 CFR Part 531.

Under the Commission's rules, an NSA means a written contract, other than a bill of lading or receipt, between one or more NSA shippers and an individual NVOCC or two or more affiliated NVOCCs, in which the NSA shipper makes a commitment to provide a certain minimum quantity or portion of its cargo or freight revenue over a fixed time period, and the NVOCC commits to a certain rate or rate schedule and a defined service level. 46 CFR 531.3(p).

An NSA shipper is a cargo owner, the person for whose account the ocean transportation is provided, the person to whom delivery is to be made, a shippers' association, or a non-vessel-operating common carrier. 46 CFR 531.3(o).

What activities led to the creation of NSAs?

This FMC action was prompted by petitions that were filed between July 25, 2003 and March 12, 2004 by seven individual NVOCCs and by the National Customs Brokers and Forwarders Association of America, Inc. Although these petitions varied to some extent, they all sought to achieve the result made possible by the FMC's exemption by rulemaking, namely that NVOCCs can contract with their shipper/customers on a confidential basis in much the same manner as can be done by vessel-operating common carriers through service contracts.

In August, 2004, several of those petitioners, together with the Transportation Intermediaries Association and the National Industrial Transportation League, urged the FMC to act as quickly as possible to exempt filed NSAs from the tariff publication and adherence requirements of the Shipping Act. This proposal was supported by many individual NVOCCs and NVOCC organizations, as well as associations of vessel-operating common carriers. The FMC issued its Notice of Proposed Rulemaking in late October, 2004 (69 Fed. Reg. 63981) (November 3, 2004), and received numerous comments in response from several individual NVOCCs and associations of NVOCCs, shippers associations, and the U.S. Department of Justice. The Final Rule became effective on January 19, 2005.