Tariff filing exemption sought for all NVOs

Tariff filing exemption sought for all NVOs    Trade groups representing ocean freight intermediaries want to ensure that the U.S. Federal Maritime Commission's proposed rule to exempt non-vessel-operating common carriers from tariff rate publishing includes both U.S.-based licensed and registered foreign operations.
   Edward Greenberg, counsel for the National Customs Brokers and Forwarders Association of America, told the FMC commissioners at a public meeting on Monday that the proposed regulation 'should be applicable to all lawful NVOs,' not just U.S.-based licensed entities, as outlined in the trade group's original petition to the FMC.

Greenberg

   Similarly, the Transportation Intermediaries Association (TIA) and the International Federation of Freight Forwarders Associations (FIATA) urge the FMC to make the exemption available to all NVOs.
   In the notice of proposed rulemaking the commission proposed the exemption be limited to NVOs that are licensed pursuant to 46 CFR Part 515. Further, it stated that any NVO who fails to maintain its bond or license or has had its tariff suspended or cancelled by the commission is ineligible to avail itself of the exemption.
   A major concern by the industry is that other countries may feel slighted by excluding registered foreign NVOs from the exemption.
   'If the commission's exemption discriminates between licensed NVOCCs and those subject only to the registration requirements, we fear this could lead to retaliation that could subject U.S. NVOCCs to similar discriminatory treatment by our trading partners in other countries,' Robert Voltmann, TIA president and chief executive officer, told the commissioners.

Voltmann

   The trade groups are especially worried that China in future developments of its own NVO regulations may mirror the U.S. tariff publishing regulation by requiring U.S. NVOs operating in China to publish tariff rates. 'The Chinese have shown a proclivity to whatever we do,' Voltmann said.
   The FMC is concerned that eliminating the tariff rate publication for registered foreign NVOs may dampen its ability to take adequate enforcement action against wrongdoers based overseas. 'How can we extend the exemption to foreign NVOs if we get blocked from access to documents?' FMC Chairman Richard Lidinsky asked the two trade group representatives.

Lidinsky

   Greenberg said the FMC could use its authority to suspend the exemption for any non-law abiding NVOs. 'I think it's a heavy hammer you hold,' he told the commissioners.
   The tariff rate publication exemption was first requested by the NCBFAA in a petition filed on July 31, 2008.
   The rule proposes to establish an instrument called a “negotiated rate arrangement.” Licensed NVOs who enter into negotiated rate arrangements with customers would be exempt from publishing their rates in tariffs, so long as they meet several conditions, including:
   ' NVOs would continue to publish “rules tariffs” containing terms and conditions governing shipments.
   ' NVOs would be required to provide those rules to the public free of charge.
   ' Rates NVOs charge must be agreed to and memorialized in writing by the date cargo is received for shipment.
   ' NVOs 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 the commission on request.
   Lidinsky and Commissioners Rebecca F. Dye and Michael A. Khouri voted to issue the proposed rulemaking in February, while Joseph E. Brennan dissented.

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   While NVOs and shipper groups, such as the National Industrial Transportation League, back the proposed rule, tariff publishers and their supporters remain adamant that published rate tariffs protect shippers as consumers of ocean freight transportation services, even if they do not consult them in their day-to-day operations. On the issue of the tariff publishing cost burden to the NVOs, they want to see more detailed analysis from the FMC.
   Some industry representatives believe the proposed rule, if finalized as is, will be bad for shippers and the FMC as a regulatory agency altogether. 'I do not believe that you should be rewriting the laws for the entities you are regulating,' said Stan Levy, president of Stan Levy Consulting, to the commissioners.
   'NVOs aren't going into the red over tariff publishing,' Levy added.
   With the exception of including all NVOs, the NCBFAA's Greenburg urged the FMC not to add any more requirements to the proposed rule. 'In my opinion, that would be a mistake,' he said. ' Chris Gillis