NCBFAA POINTS OUT IMPACT OF CHINA’s MARITIME RULES ON NVOs

NCBFAA POINTS OUT IMPACT OF CHINAÆS MARITIME RULES ON NVOs    The National Customs Brokers and Forwarders Association of America has outlined its concerns to the U.S. government regarding how China’s new rules for international maritime transportation would adversely affect Non-Chinese ocean freight consolidators.
   “While the NCBFAA recognizes the right of the People’s Republic of China to regulate ocean transportation, we are nonetheless concerned about several aspects of the new Regulations on International Maritime Transportation,” said Edward Greenberg, NCBFAA transportation counsel in a letter to Bruce J. Carlton, acting deputy maritime administrator at the Maritime Administration.
   The NCBFAA’s concerns for non-vessel-operating common carriers under the China’s new shipping rules include:
   * Restrictions against direct ownership of NVO operations in China.
   * Requirement for all foreign NVOs doing business in China to separately incorporate there.
   * Regulations to post substantial sums of money in Chinese banks.
   * Regulations to keep NVOs from entering into service contracts with their customers.
   * Requirement that all invoices used for NVO customers in China use vouchers prepared by Chinese tax authorities.
   The NCBFAA also raised a number of concerns about China’s possible intention to regulate rate levels and its ability to effectively regulate collective carrier authority.
   “The NCBFAA recognizes the important role that diplomacy and principles of comity have in any discourse with another sovereign nation concerning its regulatory concerns,” Greenberg said. “We accordingly greatly appreciate the fact that MarAd has already expressed some concerns about these regulations with the PRC.”