In May 1999 new licensing requirements for ocean freight forwarders and NVOCCs operating in the USA were established by the US Federal Maritime Commission (FMC). Due to these regulations, each ocean transportation service provider in the USA acting as ocean freight forwarder, NVOCCs, or NVOCC agent must obtain a license to operate as "Ocean Transportation Intermediary" (OTI) before it begins operations. Only licensed OTIs may act as US transportation agents or receiving agents of other NVOCCs, on both US exports and imports. The FMC issues three (3) different OTI licenses:

• OTI-NVOCC: Holders of this license may issue bills of lading in their name "As Carrier" for shipments to/from the USA. All freight rates and charges applied on these b/ls (selling rates) for both US exports and imports must be filed in an FMC tariff. NVOCCs can also provide forwarding services as part of their services; and charges for these services must be filed in the tariff. NVOCCs may enter into service contracts with ocean carriers and/or co-loading agreements with other NVOCCs. One thing an NVOCC may NOT do is collect forwarding commissions (brokerage) from ocean carriers. This is the most popular license. It requires a bond of US$ 75,000 plus US$ 10,000 per US branch office.
• OTI-Ocean Freight Forwarder: Holders of this license may operate as ocean freight forwarders in the USA, or as agents of NVOCCs who has their own FMC bond & tariff. Ocean forwarders may NOT issue a bill of lading as a Carrier, and must invoice their customers the same exact ocean freight charged to you by the ocean carrier (no mark up!). cean forwarders may charge their customers additional fees for preparing documentation and other services as agreed; tariff filing is NOT required for these fees. Only licensed ocean forwarders may collect commissions from ocean carriers for shipments handled just as a forwarder. Ocean forwarders may NOT enter into service contracts with ocean carriers and/or co-loading agreements with other NVOCCs. A bond of US$ 50,000 plus US$ 10,000 per US branch office is required.
• OTI-NF: Holders of this license may operate as NVOCC or as Ocean forwarders in the USA. Both bonds are required. Some companies hold this license because they handle full container load shipments as forwarder, but handle LCL shipments as an NVOCC. This license does not allow an NVOCC to issue its b/l and collect forwarder commissions on the same shipment.

The OTI license is not required for NVOCCs outside the USA. Only the FMC registration, tariff and bond are required for NVOCCs operating outside the USA, i.e., those who issue bills of lading for shipments to and from the USA. If you retain an agent for ocean transportation services in the USA, however, this agent must be licensed by the FMC as an OTI. With the NVOCC registration, bond and tariff, an NVOCC operating outside the USA may issue its bill of lading for shipment to and from the USA, and enter into service contracts with vessel operating common carriers serving US ports.

To qualify for any of the three types of OTI license (Large PDF) from the Federal Maritime Commission (FMC), your company must demonstrate to the FMC that at least one of your active partners or officers has a minimum of three (3) years working experience for an FMC licensed NVOCC, ocean forwarder, or ocean carrier in the USA. This person is called the FMC Qualifying Individual or "QI". Please note, one person can not serve as the QI for more than one licensed company at the same time, and the QI must be a full time employee of the company. He or she can also work part-time elsewhere, but must work full time with the company that holds the license.

Your qualifying individual must submit three references to the FMC who will provide evidence of the applicant's experience in this area. These references will be contacted by the FMC license office and must confirm the ocean experience of the officer who serves as the "Qualifying Individual" for the license.

What DPI can do

Some of our customers have filed their applications directly with the FMC, but most have relied on DPI to help prepare the application and all the attached documentation, file it FMC, pay the fees, and follow-up with FMC. This process takes 60 to 90 days. If you have been previously licensed by the FMC the waiting time can be reduced.

For us to file you OTI application, we ask you review the regulations issued in 46 CFR Part 515. After review, prepare the application (Form FMC-18) in draft form and FAX to us. We will review your application carefully, and advise any corrections or additions necessary to meet FMC requirements. When you have any questions about the OTI license requirements, we will be pleased to answer these promptly. After reviewing your application we will forward our invoice for the filing fee (USD 825) and our handling fee (USD 475).

We deliver OTI Applications to the FMC by courier under our cover letter. We will confirm receipt by the FMC and confirm this with you. We will then respond to FMC questions or requests regarding your application, and keep you advised of its progress. However, you should expect the FMC also contact you directly. The FMC's review of your application will take at least 60 days. We will notify you when your application is approved, and when you are required to finalize bonding.

The OTI license filing fee is non-refundable after it is submitted to the FMC, because processing of applications filed by DPI begins almost immediately. Your application can be "withdrawn" if you request this, but the filing fee is not refundable. Our handling fee is also non-refundable. Also note, these fees do not cover the NVOCC tariff publication.

If you prefer to file your application directly with the FMC, we will be happy to handle your NVOCC tariff. If you choose us to handle your tariff, we require that you send a copy of your application to us after filing with FMC so that we can keep it on file.

NVOCC Tariffs

Once your company is approved and licensed as an OTI-NVOCC, your NVOCC services will be subject to the terms and conditions of your tariff, which must be published and maintained according to FMC's regulations. The tariff must be published immediately after your license certificate is issued by FMC, even if you do not begin NVOCC operations right away. Every FMC tariff must contain complete and accurate details of all rates and charges applied on your house bill of lading (HB/L). Publishing tariffs for our customers is a big part of what we do here at DPI. We can also help with your HB/L. More information about tariffs is could be found at DPI services.