The Federal Maritime Commission International Association of Movers - September 27, 2017

Overview Introduction to the Bureau of Certification and Licensing What is an ocean transportation intermediary (OTI)? 46 CFR 515.3 License – when required 46 CFR 515.4 License – when not required How are OTIs licensed or registered? OTI Statistics Requirements for OTI licensing or registration Where to find OTI information on the FMC website (www.fmc.gov) IAM, September 27, 2017

Bureau of Certification and Licensing Office of Ocean Transportation Intermediaries (OTIs) Ocean Freight Forwarders (OFFs) Non-Vessel Operating Common Carriers (NVOCCs) Office of Passenger Vessels and Information Processing Passenger Vessel Certificate Program OTI Bonding Database of Regulated Persons IAM, September 27, 2017

What is an OTI? Ocean Freight Forwarder (OFF) Entity within the U.S. that dispatches shipments via a common carrier from the U.S. to a foreign country Books and arranges space for shipments on behalf of their shippers (acts as an agent for the shipper) Prepares and processes any documentation needed for shipments Non-Vessel Operating Common Carrier (NVOCC) Does not operate the vessels that will be moving the cargo and acts as both a shipper (in relationship to the VOCC) and a carrier (in relationship to the cargo owner) Can enter into a service contract as a signatory with a VOCC to obtain rates and can offer rates to its customers via a tariff, NVOCC service arrangements (NSAs) or NVOCC negotiated rate arrangements (NRAs) Issues a house bill of lading (HBL) IAM, September 27, 2017

46 CFR 515.3 Except as otherwise provided in this part, no person in the United States may act as an ocean transportation intermediary unless that person holds a valid license issued by the Commission. Foreign-based entities may register as NVOCCs and must utilize only licensed ocean transportation intermediaries to provide NVOCC services in the United States. In the United States, only licensed OTIs may act as agents to provide OTI services for registered NVOCCs. IAM, September 27, 2017

A license is not required in the following circumstances: 46 CFR 515.4 A license is not required in the following circumstances: (a) Shippers (b) Agents, employees, or branch offices of a licensed OTI (c) Common carriers (d) Federal military and civilian household goods IAM, September 27, 2017

How are OTIs licensed or registered? U.S. based entities or foreign-based entities with a U.S. branch office may be licensed as an OTI A U.S. based entity may be licensed as either an OFF or an NVOCC or both an OFF/NVOCC A foreign based entity may only be licensed as an NVOCC Both types of entities apply for a license via the form FMC-18 (application fee $250 and electronically submitted online) Foreign based entities may choose to be registered as an NVOCC A U.S. branch office is not required however any OTI services performed on the entities behalf in the U.S. must be performed by a licensed OTI NVOCC registration is performed via submission of the form FMC-65 IAM, September 27, 2017

OTI Statistics 4,754 U.S. based licenses 931 OFF – only 6,347 Total OTIs 4,754 U.S. based licenses 931 OFF – only 1,733 NVOCC – only 2,090 NVOCC and OFF 1,593 Foreign-based NVOCC 1,509 registered NVOCC 84 licensed NVOCC IAM, September 27, 2017

Registered Foreign NVOCCs vs. Licensed Foreign NVOCCs File FMC-18? NO YES File FMC-65? Bond amount? $150,000 $75,000 Branch office in the U.S.? Tariff required to be published? Agent for Service of Process IAM, September 27, 2017

Requirements for OTI licensing or registration Once the FMC-18 has been approved (typically within 40 - 60 days) the entity must provide the FMC with proof of financial responsibility (surety bond) and the location of the published tariff (for NVOCCs only). FMC-48, proof of financial responsibility For NVOCC $75,000 coverage For OFF $50,000 coverage If no FMC-48(s) provided within 120 days from date of approval the approval is rescinded FMC-1, location of the published tariff (lists all rates, charges, classifications, rules, and practices between all points or ports on the service routes). To be listed on the FMC website all entities must maintain bond(s). If an NVOCC, a tariff must also be maintained. Registered NVOCCs must also maintain a bond and tariff however the bond amount is higher, $150,000. As of October 2013 registered NVOCCs must renew their registration every three years. IAM, September 27, 2017

Requirements cont. - As of March 2017, (final rule Docket 13-05 amends 46 C.F.R. Part 515) licensees must be aware of the duration of the license and the update process. 515.14(c) Duration of license. Licenses shall be issued for an initial period of three (3) years. Thereafter, licenses will be renewed for sequential three year periods upon successful completion of the renewal process in paragraph (d) of this section. 515.14(d) License renewal process. (1) The licensee shall submit electronically to the Director of BCL a completed Application for Renewal of OTI License no later than sixty (60) days prior to the renewal date set forth on its license. Upon successful completion of the renewal process, the Commission shall update the renewal date to three (3) years later on the same day and month IAM, September 27, 2017

WWW.FMC.GOV IAM, September 27, 2017

IAM, September 27, 2017

Questions? Aline Hull, Director OTI@fmc.gov (202) 523-5843 Office of Ocean Transportation Intermediaries Bureau of Certification and Licensing Federal Maritime Commission 800 N. Capitol Street, NW Washington, DC 20573 OTI@fmc.gov (202) 523-5843 IAM, September 27, 2017