Rule change could save an operator up to $200,000 a year and simplify business processes
The US Federal Maritime Commission (FMC) has ended its requirement that US-licensed non vessel-operating common carriers (NVOCCs) must publish cargo shipment rates.
The FMC also pledged to investigate whether US supply chains would benefit by extending the exemption to foreign, unlicensed NVOCCs.
The maritime regulator said the rule change, which it estimated would save more than 3,300 NVOCCs up to US$200,000 each a year, would reduce regulatory burdens on the shipping industry and customers.
The exemption will come into force for companies that follow FMC conditions 45 days after the final rule is issued next Wednesday, 23 February.
“The final rule limited the exemption to US-licensed NVOCCs, but commissioners said they would commence proceedings to receive public input on potential modifications, including the possibility of extending the exemption to foreign, unlicensed NVOCCs,” said the FMC.
Commissioner Rebecca Dye said the rule change would provide regulatory relief and simplify business processes for thousands of companies.
She added: “I strongly support extending the exemption to all lawful NVOCCs doing business in the United States.”
The conditions licensed NVOCCs must meet to avoid publishing tariffs include: continuing to publish the terms and conditions governing shipments; providing those rules to the public free of charge; the rates charged must be agreed to and memorialised in writing by the date the cargo is received for shipment; and NVOCCs must retain this documentation for five years and make it available promptly to the FMC on request.
FMC Chairman Richard Lidinsky said: “When we began this process last year, I supported it because it would help the Obama administration’s efforts to give small American businesses tools to create American jobs, and to double exports in the coming years.
“The FMC is making these unprecedented reforms to help our ongoing recovery.”
Source: Mike King | Thu, 17 Feb 2011 . IFW News