BOND DESK – USA
On May 1, 1999, the US government passed the Ocean Shipping Reform Act of 1998 (The Act). The Act requires every ocean freight forwarder and Non-Vessel Operating Common Carriers (NVOCCs) in the USA to have a license issued by the Federal Maritime Commission (FMC) to operate as an Ocean Transport Intermediary (OTI). NVOCCs operating outside of the US and NVOCCs who serve domestic commerce of the USA are not required to obtain the OTI license. However, all foreign NVOCCs shipping goods into the US under their own house bill of lading need to maintain both proof of financial responsibility and a tariff with the FMC. For more information, please see the FMC’s website at www.fmc.gov
To comply with the FMC regulations, the NVOCC must fulfill the following requirements:
- File Proof of Financial Responsibility, commonly in the form of an NVOCC Bond, with the FMC
- File a tariff
- Only work with registered and licensed OTI’s in the US.
As the dominant provider of NVOCC Bonds in Asia, Risk Management Insurance Brokerage Ltd. has assisted numerous NVOCCs in Hong Kong, China, Korea, Japan, Singapore, India, and other Asian countries to comply with this FMC regulation. We work with financially strong surety companies with substantial experience. With over 15 years local experience, we are the bond leader in Hong Kong and Asia.
For more information on the application requirements and procedures, please click here.