FMC Publishes Proposal to Ease Registration for Foreign NVOCCs
The Federal Maritime Commission published its proposal to impose registration requirements on foreign-based unlicensed non-vessel-operating common carriers (NVOCCs) and to extend an exemption from certain provisions and requirements of the Shipping Act of 1984 and the Commission regulations to foreign-based unlicensed nonvessel-operating common carriers that agree to negotiated rate arrangements (NRAs), scheduled for the Feb. 26 Federal Register. (See ITT's Online Archives 13021425 for a report on the FMC decision earlier this month.)
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The FMC said it's proposing to extend the exemption in order to make NRAs more useful and to enhance competition among NVOCCs. Comments on the proposal are due by April 29 to: Karen Gregory, Secretary, Federal Maritime Commission, 800 North Capitol Street, N.W., Washington, D.C. 20573-0001, or to secretary@fmc.gov. Further information: Rebecca Fenneman, 202-523-5740, or generalcounsel@fmc.gov.
The FMC originally exempted licensed NVOCCs that sign NRAs from the tariff rate publication requirements March 2, 2011, but concerns about extending the exemption to foreign-based unlicensed NVOCCs were raised by staff, it said. Foreign-based unlicensed NVOCCs are not subject to the same stringent requirements as licensed NVOCCs, such as review of the experience and character of the shareholders, major officers, and Qualifying Individual of the license applicant, so the FMC decided then to permit the NRAs only to licensed NVOCCs, while saying it would begin proceedings on possible extension of the exemption to foreign-based unlicensed NVOCCs.
While the FMC approves a license based upon substantive and verified information, it knows little more than the name and address of foreign-based unlicensed NVOCCs, it acknowledged. As a result, it said, there's a need for a registration process for foreign-based unlicensed NVOCCs that identifies the NVOCCs' legal name, trade name(s), principal address, contact information including name of a contact person, and name, address, and contact person for a designated legal agent for service of process in the U.S. But a proposed form is not included in the Federal Register notice.
Most commenters supported extending the exemption to foreign-based unlicensed NVOCCs, and the FMC said, with the imposition of the registration process and certain other requirements, it believes the extension will make the NRAs more useful and thus enhance competition, as long as:
- Foreign-based unlicensed NVOCCs are registered with the FMC.
- The registrations are effective for 3 years and may be terminated or suspended for such things as failure to comply with the rules.
- All NVOCCs that enter into NRAs are subject to the FMC's inspection and reproduction requests and must produce the requested NRAs promptly in response to a Commission request.