NVOs ask FMC for tariff exemption

The National Customs Brokers and Forwarders Association of America filed a petition on July 31 asking the Federal Maritime Commission to use its authority to exempt non-vessel-operating common carriers from the requirement of publishing rate tariffs.

The NCBFAA said, if the exemption is granted, NVOs would no longer be required to publish in tariff form any rates negotiated with individual shippers as long as those agreed upon rates were somehow memorialized in written form that could range from a formal contract to a simple exchange of emails. NCBFAA President Mary Jo Muoio said in a statement that published tariff rates are almost never reviewed or used by customers, that NVOCC rates are almost uniformly negotiated individually with individual customers and only later published in tariff form, and that the cost of tariff publication needlessly increases NVOCC costs, reducing their flexibility and competitiveness. The NCBFAA's petition asked the FMC to include the following principles in the tariff publication exemption:

   The exemption would be voluntary, rather than mandatory. (Shippers and NVOs that prefer to continue to use published rate tariffs could continue to do so.)

   The exemption would relate only to rate tariffs; rules that would still need to be published and maintained.

   Negotiated NVO rates would, going forward, be governed solely by contract law consideration.

   NVOs with NVOCC Service Arrangements (NSAs) would continue to file those with the FMC.

   To qualify, these negotiated rates would need to be documented.

   The FMC's staff would continue to have access to these negotiated agreements and the files of NVOs.

   The exemption would not be construed so as to convey antitrust immunity on NVOs.

   The exemption would be applicable only for licensed or registered NVOCCs; companies unlawfully providing NVOCC services would not be able to properly engage in these activities, the NCBFAA said. 

Source: American Shipper