FMC Votes to Grant Tariff Exemption to NVOCCs, Will Issue Proposed Rule
On February 18, 2010, the Federal Maritime Commission voted to initiate a rulemaking that would relieve non-vessel operating common carriers (NVOCCs) from the costs and burdens of publishing in tariffs the rates they charge for cargo shipments.
(In July 2008, the National Customs Brokers and Forwarders Association of America (NCBFAA) petitioned for an exemption from the provisions of the Shipping Act of 1984 that require NVOCCs to publish and/or adhere to rate tariffs for ocean transportation in those instances where they have individually negotiated rates with their shipping customers and memorialized those rates in writing.
See ITT's Online Archives or 08/11/08 news, 08081125, for BP summary of NCBFAA's petition.)
In a 3 to 1 vote, FMC decided to grant this exemption from publishing rate tariffs to licensed NVOCCs. According to comments filed with FMC, this action could save many of these businesses up to $200,000 per year.
FMC to Prepare Proposed Rule to Impose Conditions on Tariff Exemption
FMC has directed its staff to prepare a proposed rule that would relieve licensed NVOCCs from publishing and adhering to rates in tariffs, while imposing several conditions, including:
(1) NVOCCs would continue to publish standard rules tariffs containing contractual terms and conditions governing shipments.
(2) NVOCCs would be required to provide those rules to the public free of charge.
(3) Rates charged by NVOCCs must be agreed to and memorialized in writing by the date cargo is received for shipment.
(4) NVOCCs must retain documentation of the agreed rate and terms for each shipment for a period of five years, and must make that documentation available promptly to FMC on request.
(See ITT's Online Archives or 02/17/10 news, 10021720, for BP summary of FMC's scheduling its meeting to consider this action.)
FMC contact - Karen Gregory (202) 523-5725
FMC press release available at http://www.fmc.gov/speeches/newsrelease.asp?SPEECH_ID=303