NCBFAA Initiative on PRC Trades Wins FMC Approval
Phone: (202) 466-0222
|For Immediate Release
Washington, DC: The Federal Maritime Commission (FMC) unanimously approved a proposal by the National Customs Brokers and Forwarders Association of America, Inc., (NCBFAA) to enable licensed NVOCCs to comply with the People’s Republic of China maritime rules. The final rule allows NVOCCs to obtain an optional $21,000 bond rider that complies comply with China’s financial security regulations.
In voting their approval, the FMC Commissioners specifically acknowledged the NCBFAA’s significant role in both raising the issue and designing a method to satisfy the PRC requirements without unduly burdening NVOCCs.
Without this bond, U.S. NVOCCs would have had to post approximately $96,000 in cash deposits in Chinese banks to satisfy the Chinese financial security requirements.
This FMC action concludes a multi-year effort to solve problems imposed by the Chinese regulations. During this period, the NCBFAA was instrumental in persuading the FMC to open a formal proceeding in which the burden that the Chinese rule would impose on NVOCCs could be raised and in working with the Maritime Administration to help develop a negotiating position with Chinese officials. The NCBFAA filed numerous pleadings with both the FMC and, most remarkably, with the Chinese government, which had never previously invited public parties to comment on proposed regulations.
The final decision in this proceeding covers several relevant points:
- The bond only applies to the U.S.-China trade.
- The bond relates only to fines and penalties assessed by MOC under the PRC regulations.
- The forms of the optional bond rider are set forth as Appendices E and F to the decision.
- The surety may satisfy a judgment in either U.S. dollars or RMB.
- The FMC will indicate the parties with these bonds on its OTI list.
- The final rules take effect on publication in the Federal Register.
With headquarters in Washington, DC, the NCBFAA (www.ncbfaa.org) represents nearly 700 member companies - the nation's leading ocean freight forwarders, NVOCCs, customs brokers and air cargo agents. Established in 1897 in New York, NCBFAA is the strong, effective national voice of the industry. Through its various committees, counsel and representatives, the Association maintains a close watch over legislative and regulatory issues that affect its members. It keeps them informed of these and other related issues through its weekly Monday Morning eBriefing, Quarterly NCBFAA Bulletin, and various meetings and conferences throughout the year.