NVOCCs Without a Tariff Risk License Revocation

Non-Vessel Operating Common Carriers (NVOCCs) that do not publish a tariff, contrary to Federal Maritime Commission regulations (46 C.F.R. §520.3(a)) will soon find their names on the FMC website.

In a press release dated August 31, 2023, the Federal Maritime Commission said it will begin posting the names of these erring NVOCCs and the public is advised that the NVOCCs listed are at risk of the Commission taking steps to revoke their license or terminate their registration.

The initial list has 16 NVOCCs that do not have a tariff. The FMC requires all NVOCCs operating in the U.S. trades to publish a tariff (46 CFR § 520.3).

Atlantic Pacific Tariffs Inc. is currently the 5th largest tariff publisher for NVOCCs. It has partnered with various stakeholders in the industry to help more local and foreign companies become licensed and leverage their FMC licenses to get more advantageous contract rates directly from ocean carriers.

What sets AP Tariffs apart from other tariff publishers is the easy access it provides to clients for compliance trainings and consultations (up to 2 hours/month). This is a preventive measure to help customers avoid potential penalties that are now up to $14,149 per occurrence.

Email us today at info@aptariffs.com or schedule a free 15-minute meeting here to learn more about our tariff publication services.

Top 5 Reasons to Become a Licensed NVOCC

Operating as an intermediary between shippers and ocean carriers can be a lucrative business. Companies providing shipping and logistics services to importers and exporters but do not operate their own ships are called Non-Vessel Operating Common Carriers (NVOCCs). While there is no exact number because there is no central database, it is estimated that there are a significant number of unlicensed NVOCCs operating in the U.S. Atlantic Pacific Tariffs Inc. (AP Tariffs) joins hands with the U.S. Federal Maritime Commission in encouraging NVOCCs to get licensed. Here are the top 5 reasons why it is better to become a licensed NVOCC: 1. An FMC license provides credibility and legitimacy to the business. This can be important when dealing with customers, partners, and other stakeholders who may require proof of compliance. 2. Licensed NVOCCs typically receive better rates from ocean carriers, which is crucial for success in this highly competitive industry. 3. Licensed NVOCCs have access to certain legal protections because they can issue their own bills of lading, which comes in handy in the event of disputes or claims. 4. The FMC has the authority to impose fines and penalties on unlicensed NVOCCs. Not knowing you violated a rule can get you fined as much as $14,149 per occurrence! 5. The FMC can issue cease and desist orders on unlicensed NVOCCs and this can disrupt business operations and damage the company's reputation. In summary, being a licensed NVOCC provides a range of advantages over being an unlicensed NVOCC, including credibility, flexibility in negotiating rates, legal protections, and enhanced reputation. AP Tariffs will help you get your license so you can have more opportunities for your business! Email us today at info@aptariffs.com or schedule a 15-minute meeting here!

Seven Simple Steps to Becoming a Licensed NVOCC

Many Non-Vessel Operating Common Carriers (NVOCCs) find the process to get a license from the U.S. Federal Maritime Commission a complex and time-consuming task.

Worry no more because Atlantic Pacific Tariffs Inc. (AP Tariffs) will help make your licensing experience much easier!

Here are 7 simple steps to obtain an NVOCC license:

1. Have a valid business license for your company.

2. Obtain a bond or other form of financial responsibility as proof of their ability to pay for any damages that may occur during the shipment of goods.

3. Register with the FMC by submitting an application and paying a fee.

4. Submit evidence of financial responsibility

5. Designate an agent for service of process who can accept legal documents on the company's behalf. 6. Obtain additional licenses and certifications based on the types of services offered. 7. Maintain compliance -- (very important!) Did you know that not knowing and willful violation of the Shipping act can get you fined at most $14,149 per occurrence?

Becoming a licensed NVOCC requires a significant investment of time and resources, but it is necessary in order to operate legally and effectively in the industry.

Email us at info@aptariffs.com so we can help you obtain your license now!

Set a 15-minute Zoom-based consultation with our FMC compliance experts here.