NCBFAA Supports Proposed FMC Rule to Ease Registration for Foreign NVOCCs
The Federal Maritime Commission’s proposal to extend exemptions for foreign-based nonvessel-operating common carriers that agree to negotiated rate agreements will boost economic efficiency and increase competition, the National Customs Brokers and Forwarders Association of America (NCBFAA) said April 29. The NVOCC rate tariffs are a “throwback, a burdensome regulatory requirement that has no redeeming public benefit,” NCBFAA said in comments submitted on the proposed rule. The proposal was issued in February (see 13022514).
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Shippers no longer rely on NVOCC rate tariff publications, instead conducting commercial relationships with NVOCCs through private negotiation processes, the comments said. Extending the tariff relief will increase competition in the ocean transportation industry “by freeing foreign-based companies from the same unnecessary formalities and costs that once burdened their U.S. counterparts,” the comments said. The change would also bring U.S. regulations in line with major international trading partners. NCBFAA said it also supports the four conditions for use of the exemption proposed in the rule, which are:
- The exemption will be extended only to those foreign-based unlicensed NVOCCs that are properly registered, bonded and tariffed.
- The registrations will be effective for three years, but can then be renewed.
- The registrations can be terminated or suspended in the case of non-compliance.
- Any NVOCCs taking advantage of the NRAs are subject to the commission’s normal inspection and record production requests.
“The proposal will benefit the entire NVOCC community by simplifying the regulatory procedures so that all NVOCCs play by a single set of rules," NCBFAA said. "And, those rules will permit the NVOCC industry to dispense with costly and useless rate tariff publication, free scarce NVOCC resources in order to provide more effective and efficient service, thus benefiting shippers and NVOCCs alike.”