Jan 12, 2021 | Industry
The Federal Maritime Commission (FMC) was set up in 1961 as an independent agency with the prime objective to regulate common carriers by water and other persons involved in the ocean-borne foreign commerce of the United States under the provisions of the Shipping Act of 1984.
From its inception, the FMC has worked to further its mission to foster a fair, efficient, and reliable international ocean transportation system for the benefit of U.S. exporters, importers, and the U.S. consumer with the goal of protecting American exporters and consumers.
Anyone operating seaborne and associated services to/from the USA must file a tariff.
U.S.-based companies or sole proprietors operating as OFFs or NVOCCs are required to obtain a license from the FMC. Non-U.S.-based NVOCCs may obtain a registration or license from the FMC.
It is recommended you complete the Paper Worksheet prior to the electronic application.
FMC rules governing NVOCC Service Arrangements (NSAs) can be found here.
FMC rules governing NVOCC Negotiated Rate Arrangements (NRAs) can be found here.
Tariffs must be open for public inspection and show all rates, charges, classifications, rules, and practices between all points or ports on their service routes.
Penalties for non-compliance can be quite severe running into thousands of dollars and could also result in the entity’s license being revoked.
If proper records are not maintained, the FMC is mandated to disqualify the OTI and classify it as a violation of the Shipping Act 1984.
The rules governing FMC tariff filing and publishing can be complex, and simply publishing your tariff information in a basic FMC-compliant system may not be enough to ensure compliance.
At Magaya, our cloud-based rate management platform allows you to manage, publish, and store your Tariff Rates, Governing Rules, and NRAs in one place, making it easy to keep up to date. Our solution also extensively checks your filings pre-publication for many common non-compliance risks, such as commodity descriptions, duplications, similar filings, and more.
Schedule a call with one of our experts today!