{"id":2287,"date":"2013-07-05T22:30:00","date_gmt":"2013-07-05T22:30:00","guid":{"rendered":"https:\/\/diaztradelaw.com\/otis-july-31-is-deadline-to-voice-opinion-on-fmcs-proposed-changes-2\/"},"modified":"2022-07-08T16:10:39","modified_gmt":"2022-07-08T20:10:39","slug":"otis-july-31-is-deadline-to-voice-opinion-on-fmcs-proposed-changes-2","status":"publish","type":"post","link":"https:\/\/diaztradelaw.com\/otis-july-31-is-deadline-to-voice-opinion-on-fmcs-proposed-changes-2\/","title":{"rendered":"OTI’s – July 31 is Deadline to Voice Opinion on FMC’s Proposed Changes"},"content":{"rendered":"
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Now’s the time to apply to become a non vessel operating common carrier (NVOCC) and\/or ocean freight forwarder (OFF). \u00a0FMC has proposed major changes<\/strong>\u00a0to its regulations and application requirements for\u00a0Ocean Transportation Intermediaries (OTIs).<\/strong>\u00a0\u00a0<\/span><\/strong>\u00a0Get your application in now to avoid those changes, and\/or, learn the changes and spend the time to comment on them while you can. \u00a0Detailed summaries of those changes are below. \u00a0July 31, 2013 is the cutoff to have your voice heard!<\/p>\n<\/div>\n

FMC issued an\u00a0Advanced Notice of Proposed Rulemaking (ANPRM)<\/a>\u00a0that would significantly amend the regulations governing the licensing, bonding and duties of NVOCCs and ocean freight forwarders. The ANPRM is 117 pages long!! You can review the ANPRM in FMC\u2019s Docket No. 13-05, Amendments to Regulations Governing Ocean Transportation Intermediary Licensing and Financial Responsibility Requirements, and General Duties.<\/div>\n
The major changes are:<\/div>\n
    \n
  • Qualifying Individual (QI) Changes<\/i><\/strong>\u00a0\u2013 Included in the proposed changes are changes to many definitions – this one impacts\u00a0what it will take to become a QI.\u00a0 The standards will be tougher.\u00a0 For one, the QI\u2019s 3 years of relevant experience will only qualify if one has worked for a licensed, bonded, registered OTI.<\/span><\/strong>\u00a0Experience obtained while the individual was employed by a licensed domestic OTI, a vessel operator, or a registered foreign-based NVOCC would be acceptable.<\/span><\/li>\n
  • All Owners will now be Vetted<\/i><\/strong>\u00a0\u2013 Background checks will now not be limited to the QI, all owners will go through background checks (and my two cents, your application will take that much longer to be processed with every additional owner)..<\/span><\/strong><\/li>\n
  • All Licenses will now be Online<\/i><\/strong>\u00a0\u2013 FMC proposes to go green in its application process.\u00a0 Application fees are much cheaper online, $250 vs. the paper application fee of $850. \u00a0\u00a0<\/span><\/strong><\/li>\n
  • License Renewal Every 2 Years!<\/i><\/strong>\u00a0\u2013 All licenses, both forwarder and NVOCC, be renewed every two years, regardless of how long a company has held a license. As part of that renewal process, the licensee would be required to pay a filing fee in an amount yet to be determined. As proposed, the information to be provided would include the name of the current Qualifying Individual, all shareholders, officers and directors (and, their social security numbers), and require the production of corporate good standing certificates. Each company would be required to submit an application for renewal\u00a0at least 60 days prior to the scheduled expiration date<\/strong>of its current license.\u00a0<\/span><\/li>\n
  • Suspension\/Revocation of Licenses<\/i><\/strong>\u00a0\u2013 Under the current regulations, a license can be suspended or revoked for failing to respond to a lawful order, making materially false or misleading statements, or failing to have a current tariff or bond. The ANPRM now proposes to also subject licenses to revocation if the OTI \u201cknowingly and willfully accepts cargo from, processes, books, or transports cargo\u201d for, an NVOCC that is either unlicensed or fails to have the required bond.\u00a0The Commission also proposes to\u201cstreamline<\/b>\u201d the appeals process for any revocation of licenses by eliminating an OTI\u2019s right for a full evidentiary hearing.<\/em>\u00a0Indicating that such proceedings are \u201coften lengthy and expensive,\u201d the ANPRM proposes to establish a procedure by which appeals could be handled by a hearing officer on a written record, without any apparent right of discovery concerning matters that may be in the Commission\u2019s files.<\/span><\/li>\n
  • Foreign Registered NVOCCs<\/i><\/strong>\u00a0\u2013 The ANPRM would require foreign registered NVOCCs to submit a detailed registration form and a filing fee, with those registrations only valid for a period of two years. Under current regulations, and as is the case with existing OTI licenses, registrations are valid for an indefinite period. The foreign NVOs would be required, in their registration forms, to provide their legal name, any trade names, their principal business address with contact information, a contact person with an email address, and their U.S. resident legal agent.<\/span><\/li>\n
  • Increase Bond Requirements<\/i><\/strong>\u00a0– Citing incidents in which two NVOCCs went out of business owing significantly more than the $75,000 bond, which meant that claimants were unable to recover all monies owed, the ANPRM proposes to increase all OTI bonds as follows:\u00a0Ocean Forwarder $50,000 $75,000,\u00a0Licensed NVOCC $75,000 $100,000,\u00a0Registered NVOCC $150,000 $200,000,\u00a0Group Bond $3 Million $4 Million<\/span><\/li>\n
  • Tiers for Claims on Bonds<\/i><\/strong>\u00a0– The ANPRM would establish three tiers of payment priorities for claims against the bond.<\/span><\/li>\n
  • FMC Website Publication of Claims<\/i><\/b>\u00a0– The Commission would publish these notices and claims on its website, which would be available to the general public as well as the various sureties.\u00a0<\/span><\/li>\n
  • Prohibit Surety From Payment of 20%+ of Bond\u00a0<\/i><\/b>– Another proposal would prohibit the surety from paying any claims that amount to more than 20 percent of the face amount of the bond for a period of at least five months after the date the claim is received.<\/span><\/li>\n
  • License Revocation when Bond Termination Occurs\u00a0<\/i><\/b>\u2013 In this proposed rule, FMC licenses and registrations could be revoked \u201cwithout hearing or other proceeding<\/i>\u201d in the event the required bond is terminated.<\/span><\/li>\n
  • New Class of NVOCCs for Household Goods<\/i><\/b>\u00a0\u2013\u00a0<\/i>The commission seeks comments on such a change, not an actual proposal at this time.<\/span><\/li>\n<\/ul>\n
    How do you feel about these changes? \u00a0Think they are fair?\u00a0 Want to comment to the FMC? \u00a0Make sure you speak up before July 31! Ready to submit your application? Contact me today at jdiaz@becker-poliakoff.com. \u00a0<\/span><\/div>\n
    <\/div>\n","protected":false},"excerpt":{"rendered":"

    Now’s the time to apply to become a non vessel operating common carrier (NVOCC) and\/or ocean freight forwarder (OFF). \u00a0FMC has proposed major changes\u00a0to its regulations and application requirements for\u00a0Ocean Transportation Intermediaries (OTIs).\u00a0\u00a0\u00a0Get your application in now to avoid those changes, and\/or, learn the changes and spend the time to comment on them while you can. \u00a0Detailed summaries of those changes are below. \u00a0July 31, 2013 is the cutoff to have your voice heard! FMC issued an\u00a0Advanced Notice of Proposed Rulemaking (ANPRM)\u00a0that would significantly amend the regulations governing the licensing, bonding and duties of NVOCCs and ocean freight forwarders. The ANPRM is 117 pages long!! You can review the ANPRM in FMC\u2019s Docket No. 13-05, Amendments to Regulations Governing Ocean Transportation Intermediary Licensing and Financial Responsibility Requirements, and General Duties. The major changes are: Qualifying Individual (QI) Changes\u00a0\u2013 Included in the proposed changes are changes to many definitions – this one impacts\u00a0what it will take to become a QI.\u00a0 The standards will be tougher.\u00a0 For one, the QI\u2019s 3 years of relevant experience will only qualify if one has worked for a licensed, bonded, registered OTI.\u00a0Experience obtained while the individual was employed by a licensed domestic OTI, a vessel operator, or a registered foreign-based NVOCC would be acceptable. All Owners will now be Vetted\u00a0\u2013 Background checks will now not be limited to the QI, all owners will go through background checks (and my two cents, your application will take that much longer to be processed with every additional owner).. All […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10,104],"tags":[],"class_list":["post-2287","post","type-post","status-publish","format-standard","hentry","category-export","category-fmc"],"yoast_head":"\nOTI's - July 31 is Deadline to Voice Opinion on FMC's Proposed Changes - Customs & International Trade Law Firm<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/diaztradelaw.com\/otis-july-31-is-deadline-to-voice-opinion-on-fmcs-proposed-changes-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"OTI's - July 31 is Deadline to Voice Opinion on FMC's Proposed Changes - Customs & International Trade Law Firm\" \/>\n<meta property=\"og:description\" content=\"Now’s the time to apply to become a non vessel operating common carrier (NVOCC) and\/or ocean freight forwarder (OFF). \u00a0FMC has proposed major changes\u00a0to its regulations and application requirements for\u00a0Ocean Transportation Intermediaries (OTIs).\u00a0\u00a0\u00a0Get your application in now to avoid those changes, and\/or, learn the changes and spend the time to comment on them while you can. \u00a0Detailed summaries of those changes are below. \u00a0July 31, 2013 is the cutoff to have your voice heard! FMC issued an\u00a0Advanced Notice of Proposed Rulemaking (ANPRM)\u00a0that would significantly amend the regulations governing the licensing, bonding and duties of NVOCCs and ocean freight forwarders. The ANPRM is 117 pages long!! You can review the ANPRM in FMC\u2019s Docket No. 13-05, Amendments to Regulations Governing Ocean Transportation Intermediary Licensing and Financial Responsibility Requirements, and General Duties. The major changes are: Qualifying Individual (QI) Changes\u00a0\u2013 Included in the proposed changes are changes to many definitions – this one impacts\u00a0what it will take to become a QI.\u00a0 The standards will be tougher.\u00a0 For one, the QI\u2019s 3 years of relevant experience will only qualify if one has worked for a licensed, bonded, registered OTI.\u00a0Experience obtained while the individual was employed by a licensed domestic OTI, a vessel operator, or a registered foreign-based NVOCC would be acceptable. All Owners will now be Vetted\u00a0\u2013 Background checks will now not be limited to the QI, all owners will go through background checks (and my two cents, your application will take that much longer to be processed with every additional owner).. All […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/diaztradelaw.com\/otis-july-31-is-deadline-to-voice-opinion-on-fmcs-proposed-changes-2\/\" \/>\n<meta property=\"og:site_name\" content=\"Customs & International Trade Law Firm\" \/>\n<meta property=\"article:publisher\" content=\"http:\/\/facebook.com\/diaztradelaw\" \/>\n<meta property=\"article:published_time\" content=\"2013-07-05T22:30:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-07-08T20:10:39+00:00\" \/>\n<meta name=\"author\" content=\"Jennifer Diaz\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@diaztradelaw\" \/>\n<meta name=\"twitter:site\" content=\"@diaztradelaw\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Jennifer Diaz\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/diaztradelaw.com\/otis-july-31-is-deadline-to-voice-opinion-on-fmcs-proposed-changes-2\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/diaztradelaw.com\/otis-july-31-is-deadline-to-voice-opinion-on-fmcs-proposed-changes-2\/\"},\"author\":{\"name\":\"Jennifer Diaz\",\"@id\":\"https:\/\/diaztradelaw.com\/#\/schema\/person\/e4358517dcb10b6d836c8962295b4d96\"},\"headline\":\"OTI’s – July 31 is Deadline to Voice Opinion on FMC’s Proposed Changes\",\"datePublished\":\"2013-07-05T22:30:00+00:00\",\"dateModified\":\"2022-07-08T20:10:39+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/diaztradelaw.com\/otis-july-31-is-deadline-to-voice-opinion-on-fmcs-proposed-changes-2\/\"},\"wordCount\":876,\"commentCount\":0,\"articleSection\":[\"Export\",\"U.S. Federal Maritime Commission (FMC)\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/diaztradelaw.com\/otis-july-31-is-deadline-to-voice-opinion-on-fmcs-proposed-changes-2\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/diaztradelaw.com\/otis-july-31-is-deadline-to-voice-opinion-on-fmcs-proposed-changes-2\/\",\"url\":\"https:\/\/diaztradelaw.com\/otis-july-31-is-deadline-to-voice-opinion-on-fmcs-proposed-changes-2\/\",\"name\":\"OTI's - 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FMC issued an\u00a0Advanced Notice of Proposed Rulemaking (ANPRM)\u00a0that would significantly amend the regulations governing the licensing, bonding and duties of NVOCCs and ocean freight forwarders. The ANPRM is 117 pages long!! You can review the ANPRM in FMC\u2019s Docket No. 13-05, Amendments to Regulations Governing Ocean Transportation Intermediary Licensing and Financial Responsibility Requirements, and General Duties. The major changes are: Qualifying Individual (QI) Changes\u00a0\u2013 Included in the proposed changes are changes to many definitions – this one impacts\u00a0what it will take to become a QI.\u00a0 The standards will be tougher.\u00a0 For one, the QI\u2019s 3 years of relevant experience will only qualify if one has worked for a licensed, bonded, registered OTI.\u00a0Experience obtained while the individual was employed by a licensed domestic OTI, a vessel operator, or a registered foreign-based NVOCC would be acceptable. All Owners will now be Vetted\u00a0\u2013 Background checks will now not be limited to the QI, all owners will go through background checks (and my two cents, your application will take that much longer to be processed with every additional owner).. 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