FMC TO KEEP WATCH ON IMPACT OF NEW CHINESE MARITIME REGULATIONS

FMC TO KEEP WATCH ON IMPACT OF NEW CHINESE MARITIME REGULATIONS    The U.S. Federal Maritime Commission plans to keep a close watch on new international maritime regulations recently rolled out by the Chinese government.
   The rules, which were adopted by the Chinese government in December 2001, became effective March 1. The FMC provided the views and concerns of the U.S. non-vessel-operating common carriers about the rules to the Maritime Administration and other executive agencies, which met with the Chinese Ministry of Communication.
   One of the biggest concerns for NVOCCs was the requirement to deposit cash in a Chinese bank account, which would be available to Chinese regulators to cover non-performance or fines arising from violations of the law.
   The Chinese authorities provided a partial exemption to non-Chinese NVOCCs from the requirement if they already have bonds posted with the FMC or other national authorities.
   “We’re hopeful of continued progress in the bilateral discussions, because the final regulations … contain indications that the Chinese have, at a minimum, recognized the barriers that such a requirement may represent to small- and medium-sized NVOCCs,” said Steven R. Blust, chairman of the FMC to the National Customs Brokers and Forwarders Association of America in San Antonio, Texas, on March 17.
   “We are also hopeful that we will continue to have industry assistance from organizations (such as the NCBFAA) in determining whether those rules reflect or address the concerns (that NVOs) raised to the Chinese, MarAd and the FMC,” Blust said.
   Chinese government officials are expected to meet with U.S. maritime officials in Washington in April.