U.S. NVOS WELCOME CHINA’s LESS STRINGENT SECURITY DEPOSIT REQUIREMENT

U.S. NVOS WELCOME CHINAÆS LESS STRINGENT SECURITY DEPOSIT REQUIREMENT    U.S. non-vessel-operating common carriers are relieved the Chinese government has agreed to relax it security deposit requirement of its new international maritime transportation regulations, effective March 1.
   The Chinese government’s proposed rules would have required non-Chinese NVOs to post $96,000 security deposits, plus $24,000 for each branch office in the country, into a Chinese bank.
   The Washington-based National Customs Brokers and Forwarders Association of America said it reacted to the “lack of U.S. government response” to Article 12 of the implementing regulations by asking the Chinese government to accept a system of reciprocity with the U.S. Federal Maritime Commission’s NVO registration and bonding requirements.
   Similarly, the association asked the FMC to accept Chinese NVOs that have registered with China’s Ministry of Communications and have paid the security deposit in a Chinese bank.
   The NCBFAA said China’s exemption in the maritime regulation helps to “mitigate its worst effects on the NVOCCs.” NVOs are still uncertain about the impact of Article 20, which mandates filing tariffs with the Chinese government.
   The U.S. Maritime Administration and FMC are considering how U.S. bonds may be modified to accommodate the Chinese government’s NVO security deposit needs. A Chinese delegation is expected to meet with U.S. maritime officials in Washington the week of April 7 to discuss the system of reciprocity.
   The Chinese Ministry of Communication posts a list of NVOs approved to do business in China on its Web site, https://www.moc.gov.cn.