International Trade Today is a service of Warren Communications News.

FMC's FY 2011 Budget Request Includes OTI Licensing Review

On February 1, 2010, the President submitted his fiscal year 2011 budget (October 1, 2010 through September 30, 2011) to Congress. The FY 2011 budget request for the Federal Maritime Commission is $25.5 million, an increase of $1.3 million over the funding enacted in FY 2010.

Sign up for a free preview to unlock the rest of this article

If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.

The FY 2011 budget request reflects increased funding for certain FMC offices and activities, including the FMC's formal proceedings program; Operations (including area representatives); Bureau of Trade Analysis; Bureau of Certification and Licensing; and Bureau of Enforcement.

Activities Include Pursuing Anticompetitive Practices, OTI Licensing Review

Highlights of the FMC's activities planned for FY 2010 and 2011 include:

Pursue anticompetitive practices - The Commission will use investigative, liaison and outreach functions to continue to increase protection of the shipping public from unlawful practices. Additionally, the FMC will continue to pursue harmful, market-distorting, fraudulent, and anticompetitive practices and to monitor U.S. foreign trades. In particular, staff will continue to pursue initiatives aimed at vessel operating common carriers (VOCCs) and non-vessel operating common carriers (NVOCCs) engaged in unfair service contracting practices, specifically those which permit entities to compete unlawfully with carriers and ocean transportation intermediaries (OTIs) operating in compliance with U.S. laws.

Review of OTI licensing rules, regs - Current rules and regulations regarding OTI licensing requirements will be reviewed to ensure continued protection of the shipping public in light of changed industry circumstances.

Emphasize OTI monitoring, household goods - Staff will emphasize the OTI monitoring and audit programs. The enforcement and monitoring activities will include focusing on the unlawful operations of household goods carriers - both licensed and unlicensed - which have increasingly caused economic harm to individual consumers, as well as competitive injury to those carriers operating lawfully.

Redesign OTI list Web site - Staff will redesign the OTI list on the FMC's website to increase accessibility to information, facilitate public search capability, and make it more interactive for users.

Further develop electronic FMC-18 system - Staff will continue efforts to further develop and maintain additional developments to the current electronic Form FMC-18 (Application for a License as an Ocean Transportation Intermediary) System. In conjunction with the agency's Enterprise Content Management Project, the Bureau will work with OIT to explore automated business processing of the OTI applications submitted through the electronic FMC-18 System.

Improve agreements monitoring program - Staff will improve the Commission's agreements monitoring program, designed to address such supply-chain and operational issues as port congestion, security, air pollution and environmental concerns that affect local communities and the industry.

Review, monitor MTO operations, agreements - Staff will continue to review the operations of marine terminal operators (MTOs) and monitor MTO-filed agreements to ensure compliance with the Shipping Act and the FMC's regulations.

Expand awareness of alternative dispute resolution - The Commission will expand awareness of its Alternative Dispute Resolution (ADR) program to assist in resolving disputes and shipping problems in the U.S. ocean shipping commerce.

Electronic database for FMC historical info - Staff plans to develop an electronic database for the Commission's historical Informal Docket proceedings to provide a more efficient tool for attorneys and judges in researching case precedent and will initially be available for staff attorneys, Settlement Officers, etc.

FMC FY 2011 budget estimate available here