US maritime commissioners makes final rule on new NRAs

THE US Federal Maritime Commission has published its ruling on the controversial issue of non-vessel-operating common carriers negotiated rate arrangements, interpreting a new law to be enacted on April 18.


The mandate exempts 3,300 NVOCCs from the costs and burdens of publishing their sea freight rates in tariffs, the FMC said, according to American Shipper, adding that the agency said licensed NVOs entering into negotiated rate arrangements with clients will be exempt from the need to publish rates on condition they continue to publish rules tariffs with terms and conditions governing shipments and make those rules available to the public without charge.


Rates charged by NVOCCs must be agreed and stated in writing by the date cargo is received for shipment and the NVO must retain documentation of the agreed rate for five years, and promptly make documentation available to the FMC on request, the report said.


The National Customs Brokers and Forwarders Association of America said that during the FMC's meeting to adopt the exemption, "it was clear that the most controversial topic was the refusal to extend the exemption to foreign-based NVOCCs. The commissioners clearly understand the sensitivity of this issue and the possibility that foreign governments may retaliate against United States NVOCCs."


The industry group said the commissioners were "unwilling to overrule concerns by the FMC's staff that the FMC has little information or regulatory control over foreign NVOs because they do not have to go through the licensing process, and that the FMC has had trouble obtaining documents from foreign countries," the report said.
(Source:http://www.schednet.com)