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.

No Service Contracts for Non-Compliant OTIs

Non-Vessel-Operating Common Carriers (NVOCCs) and Ocean Freight Forwarders (OFFs) must meet compliance obligations before they can do business with Common Carriers, including Vessel-Operating Common Carriers (VOCCs).

The Federal Maritime Commission (FMC) reminded Common Carriers to verify that NVOCCs and OFFs are fully compliant with all applicable regulatory and statutory requirements before accepting or transporting cargo for their accounts. This includes meticulous checks regarding licensing, registration, tariffs, and financial responsibility. Failure to adhere to these obligations may result in serious consequences, including fines and penalties.

To ensure fair and responsible practices, VOCCs are also urged to verify the compliance status of NVOCCs before entering into any Service Contract with them. The FMC directs industry players to refer to specific guidelines provided in 46 C.F.R. § 530.6 for a comprehensive understanding.

Additionally, the FMC strongly prohibits NVOCCs from knowingly and willfully engaging in an NVOCC Service Arrangement with another NVOCC that does not meet all the necessary statutory and regulatory requirements. Violations of this prohibition, as stated in 46 C.F.R. § 531.6(c), will be taken seriously.

The FMC maintains comprehensive lists of licensed NVOCCs and OFFs, including foreign-based unlicensed NVOCCs that have registered, along with records of each NVOCC's tariff location. This information serves to facilitate compliance and ensure transparency within the sector.

FMC Reminds VOCCs to File Timely & Accurate Contracts

The Federal Maritime Commission (FMC) is issuing a reminder to all vessel-operating common carriers (VOCCs) regarding the mandatory filing of service contracts and amendments in the Commission's SERVCON system. It is crucial that VOCCs adhere to the stipulated guidelines by submitting these documents no later than thirty (30) days after the effective date. Failure to comply with the service contract filing requirements as outlined in 46 CFR Part §530 may lead to fines or other penalties. To ensure compliance, filers must accurately input the effective date of the contract in the SERVCON system. Additionally, it is essential that any amendments made to contracts have prospective effect. Under no circumstances should contracts make reference to terms that are not explicitly included in the service contract, unless those terms are readily accessible to all parties involved and the Commission, as per 46 CFR §530.8. For any queries or further information concerning service contracts, please refer to the comprehensive guide on How to File Service Contracts or get in touch with tradeanalysis@fmc.gov.