FMC posts OTI rider bond rule for China trade
The U.S. Federal Maritime Commission has published its final rule for the non-vessel-operating common carrier optional bond riders to provide proof of financial responsibility to operate in China.
China’s Ministry of Communications implemented new international maritime regulations early last year that called for a $96,000 deposit in order to collect fines and penalties from U.S. NVOs that violate the rules.
The National Customs Brokers and Forwarders Association of America petitioned the FMC to develop the bond rider regulations to both ease the financial burdens on small NVOs and comply with China’s new international maritime rules.
Effective April 6, licensed NVOs are able to secure a $21,000 rider on their existing $75,000 bonds with the FMC.
The FMC will indicate the filing of optional bond riders on its online ocean transportation intermediary (OTI) list at http://www.fmc.gov/oti/oti_index2.htm, which includes all OTIs licensed by the commission. The optional bond rider forms will also be available at the commission’s Web site at http://www.fmc.gov/Forms.htm#FF.