New FMC Requirements for Foreign NVOCCs

The Federal Maritime Commission ("FMC") has issued a new rule advising that foreign-based NVOCCs may utilize Negotiated Rate Arrangements ("NRAs") in lieu of published rates in their tariffs. In order to take advantage of the NRAs, a foreign-based, registered NVOCC must comply with the new registration requirements by October 17, 2013. Most importantly, regardless of whether a foreign-based NVOCC plans to use NRAs, all foreign-based registered NVOCCs must renew their registration by October 17th.

To renew registration, foreign based registered NVOCCs must complete new Form FMC-65. FMC-65 requires the NVOCC to provide basic corporate information, designate an agent for service of process and includes a certification that the registrant will use a licensed ocean transportation intermediary ("OTI") for any OTI activities performed on its behalf in the United States. This is a new requirement under the law.

If you are interested in learning more about this ruling or would like assistance in submitting your registration to the FMC, please do not hesitate to contact me at mov@chaloslaw.com.

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