FMC Seeks Comments on Extending NRA Tariff Exemption to Foreign-Based NVOCCs

The Federal Maritime Commission is seeking comments on ways to make the tariff filing exemption provided to licensed non-vessel-operating common carriers who have agreed to Negotiated Rate Arrangements (NRAs) with their shippers more useful, including its possible extension to foreign-based non-vessel-operating common carriers not licensed by the Federal Maritime Commission.

Comments are due on or before March 26, 2012.

April 2011 Final Rule Exempted U.S. Domiciled Licensed NVOCCs with NRA from Publishing Tariff Rates

In March 2011, FMC issued a final rule, effective April 18, 2011, which exempted licensed NVOCCs from their tariff rate publication obligations when entering into a NRA. The final rule did not extend the exemption to foreign-based unlicensed NVOCCs due to concerns by FMC staff that to do so could harm the agency’s mission to protect the shipping public. However, the final rule stated that FMC would seek additional comments on the issue.

NCBFAA Urged FMC to Extend Exemption to Foreign-Based NVOCCs

The National Customs Brokers & Forwarders Association of America, Inc. sent several letters to FMC urging it to include foreign-based, registered (but unlicensed) NVOCCs. Among other things, they stated that the failure to include legitimate foreign-based NVOCCs unfairly discriminates against those companies. Moreover, the NCBFAA was concerned that China or other countries might retaliate and take action that adversely affects U.S. NVOCCs due to this discrimination against their nationals.

FMC Seeking Comments Now on Ways to Make Exemption More Useful as It Has Applied for 6 Months

FMC states that NVOCCs have now been able to use NRAs for more than six months. In accordance with the statements in the final rule, the Commission now invites comment and information from all members of the interested public (whether they be located in the United States or elsewhere), including ocean common carriers, ocean transportation intermediaries, exporters, and beneficial cargo owners, on ways to make the exemption more useful, including possible extension of the exemption to include foreign unlicensed NVOCCs. Comments that are specific and provide supporting data are most helpful.

(See ITT's Online Archives 11112806 and 11042023 for summaries of NCBFAA's letters to FMC.

See ITT's Online Archives 11030233 and 11040819 for summaries of the NRA final rule and FMC's correction to it.

See ITT's Online Archives 11092604 for summary of FMC Commissioner Khouri's discussion of the need to streamline OTI license renewal, and his hopes that the FMC considers expanding NRAs by February 2012.)