NCBFAA Files Comments on New PRC Regulations
|For Immediate Release
WASHINGTON, DC: The National Customs Broker & Forwarders of America, Inc. (NCBFAA) today commented on the People’s Republic of China’s (PRC) new Regulations on International Maritime Transportation. The NCBFAA’S comments were in a letter to Bruce J. Carlton Acting Deputy Maritime Administrator, Maritime Administration (MARAD), U.S. Department of Transportation.
"We hope that the US Government can prevail on the PRC to open their markets to competition and avoid the problem of overly regulating maritime trade," said Edward Greenberg, NCBFAA transportation Counsel and partner in the DC-based law firm of Galland, Kharasch, Greenberg, Fellman & Swirsky.
In its letter, the NCBFAA noted several ways the regulations discriminate against American based NVOCCs. These include:
- The Regulations continue the present restriction against direct ownership of NVOCC businesses in the PRC.
- The Regulations would require that all foreign NVOCCs doing business in China to separately incorporate there.
- The Regulations would require a posting of substantial sums in PRC banks.
- They prohibit NVOCCs from entering into service contracts with their shipper customers.
- They require that all invoices used for customers in the PRC use vouchers prepared by PRC tax authorities.
In addition, the NCBFAA raised a number of other questions concerning the Regulations, including whether the PRC intends to regulate rate levels and whether the PRC will be able to effectively regulate collective carrier activity.
With headquarters in Washington, D.C., the NCBFAA (www.ncbfaa.org) represents nearly 700 member companies - the nation's leading freight forwarders, customs brokers, ocean transportation intermediaries (OTIs) 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.