FMC Final Rule Will Allow Rapid Activation of NVOCC Negotiated Service Arrangements
The Federal Maritime Commission is issuing a final rule to amend its regulations covering non-vessel-operating common carrier (NVOCC) negotiated service arrangements, the FMC said (here). The rule will become effective May 5, and will allow NVOCCs to amend their service arrangements and immediately bring the changes into effect, as long as they’re written within 30 days before filing the changes with the FMC. Currently, the commission allows implementation of amendments only after they are formally filed with the FMC. The agency approved the final rule in March (see 1703070035).
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The final rule extends the time window from 48 hours to 30 days for correcting technical data transmission errors in service contracts and amendments. “While the industry has not submitted data quantifying the cost savings of this relief, the Commission anticipates that this change will allow service contract filers additional flexibility in conjunction with the 30-day amendment process, further streamlining their business processes,” the final rule says. The FMC is also extending the deadline for requesting a retroactive correction of a clerical or administrative error in a service contract from 45 to 180 days after a service contract is filed.
The final rule cites recent executive orders that “have highlighted the benefits of reducing unnecessary and costly regulations,” although the orders “may not directly apply to the commission.” The rule states that it is deregulatory in nature. “The Commission respects the purpose of the Executive Orders and is committed to reducing regulatory burdens where feasible,” the rule says. The FMC issued a proposed rulemaking on the covered subjects in August 2016 (see 1608220032). Although the National Customs Brokers & Forwarders of America (NCBFAA) in its response to FMC’s proposed rulemaking said that the commission’s publication of essential terms isn’t needed (see 1609210033), other stakeholders indicated they rely on them for purposes such as grievance proceedings under collective bargaining agreements, the FMC said. The commission isn’t eliminating the current publication requirement, it said in the final rule.
(Federal Register 04/04/17)