FMC to Revise Proposal on OTI Rules, Says NCBFAA
The Federal Maritime Commission (FMC) will not move forward on a number of the agency's proposals that would have resulted in some new financial and licensing requirements for Ocean Transport Intermediaries (OTIs), said the National Customs Brokers & Forwarders Association of America. "Specifically, the FMC will not require any new license applications every two years, will not establish any summary revocation procedure for licenses, will not increase OTI bonds, will not establish any bond priority system or public filing of bond claims, will not establish regulations for advertising or the proposed rebuttable presumptions concerning the legality of actions by agents, and will not require all agency agreements to be in writing," the association said.
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Instead, the FMC may require that all licensees renew their licenses for free "by responding electronically to a triennial FMC questionnaire seeking verification of the company’s current officers and directors, Qualifying Individual and locations and number of branch offices," said the NCBFAA. "Second, although there would be no increase in OTI bonds, the Commission will likely propose to eliminate the separate $10,000 bonds now required for each branch office of an NVOCC or freight forwarder." The FMC's 2013 advance notice of proposed rulemaking proposed setting tougher licensing and bonding requirements for OTIs, which include freight forwarders and non-vessel operating common carriers (NVOCCs) (see 13053031). In comments, the NCBFAA opposed making OTIs renew their licenses every two years and creating stricter requirements for qualified individuals (see 13082122).
The FMC is continuing to work on the issue, said Mary Thien Hoang, Chief of Staff for FMC Chairman Mario Cordero, in an email. Hoang did not confirm or deny the specific changes mentioned by the NCBFAA, but said the agency has reviewed their comments and will continue to work with the industry "as it prepares its next steps related to the Notice of Proposed Rulemaking." The FMC "has been actively engaged with the OTI industry and will continue to work with the industry on such matters, including the Notice of Proposed Rulemaking," said Hoang. "The Commission will continue its mission to foster a fair, efficient and reliable international ocean transportation system and protect the public from unfair and deceptive practices," she said.