• Ocean Shipping Reform Act of 1998. The full text of the Shipping Act of 1984 with amendments made by the Ocean Shipping Reform Act of 1998 (OSRA).
• FMC Rules Implementing the Ocean Shipping Reform Act of 1999. The complete text of the final rules issued by the FMC in Docket Nos. 98-21 and 98-25 thru 98-30.
• Complete FMC Regulations. This document contains the full text as published in the US Code of Federal Regulations 46-CFR Part 500 Series.
• Select the "Electronic Reading Room" menu at the www.fmc.gov web home page to get access to Dockets, Orders, Proposed and Final Rules, and other information made public by the FMC.
• Compilation of Maritime Laws (2003) provided by the US Department of Transportation, Maritime Administration.

Registration with the FMC

We have assisted hundreds of companies with the FMC registration requirements. The following is a summary of the documents required by the FMC. For each of our new clients, we provide step-by-step instructions on how to prepare these documents. All new registrations are filed with the FMC under our cover letter.

• Letter of Authorization. In order for us to act on your behalf, this document must be prepared on your letterhead paper. The prepared document must be signed by an officer of your company and sent to us. We will review the document and will submit it to the FMC.,/LI>
• OTI License Application. As of May 1, 1999 every ocean freight forwarder and NVOCC operating in the USA are required by the Shipping Act to have a license issued by the FMC to operate as an Ocean Transportation Intermediary (OTI). This license is not required for NVOCCs operating outside the USA, nor it is required for NVOCCs who serve only the domestic commerce of the USA. DPI has helped more than 100 organizations can prepare and file their OTI license applications
• OTI BondOTIs and NVOCCs based outside the USA must submit proof of financial responsibility in the form of a surety bond, a certificate of insurance, or a financial guarantee. These must be filed with the FMC prior to the publication of its tariff, or issuance of its O TI license.
• Bill of Lading, long form. Full terms and conditions of each carrier's bill of lading must be published in its FMC tariff. NVOCCs must issue bills of lading "as carrier", as forwarder bill of ladings are not allowed by FMC.
• Taxpayer Identification Number (TIN). All USA-based organizations registered with the FMC must complete this form. Organizations based outside of the USA are not required to complete the TIN form for the FMC.
• Form FMC-1. Each ocean carrier and NVOCC, or its tariff publisher acting on its behalf, is required to use this electronic form. Form FMC-1 is used to notify the FMC of its organization name, organization number, home office address, name and telephone number of firm's representative, the location of its tariffs, and the publisher used to maintain its tariffs. Changes to this information require FMC-1 filing, however this does not replace the FMC requirements for filing updates to bonds, tariffs, and licenses. DPI maintains the FMC-1 form for each of its clients.
• Service Contract Registration (PDF). VOCCs are required to file the complete text of each Service Contract with the FMC via secure Internet based system operated by the FMC. Registration is required prior to filing. We provide a complete service for Service Contract preparation, filing, and the publication of essential terms in compliance with FMC regulations set forth in 46 CFR Part 530.
• NSA Registration NVOCCs serving the USA are permitted to provide their shipper clients with confidential, individually-negotiated contracts for ocean and transportation to/from the USA. The FMC has implemented an NSA registration procedure which must be satisfied before NSA filing begins. We provide complete service for NSA preparation, filing, and the publication of essential terms in compliance with FMC regulations set for in 46 CFR Part 531.

FMC Publication Requirements

We have been publishing FMC tariffs since 1975. Tariff publication falls into two main categories:

• VOCC and NVOCC Tariffs. Each Vessel Operating Common Carrier (VOCC) or NVOCC serving the foreign commerce of the USA must publish a tariff listing "all rates, charges, classifications, rules, and practices." Tariffs must meet detailed requirements enforced by the FMC. These rates must include current freight rates. DPI provides a convenient and cost-effective tariff publication service that meets all FMC requirements issued in 46 CFR Part 520. For new carriers, we offer a tariff that provides all FMC required rules, the full text of your bill of lading, and commonly used commercial regulations.
• Marine Terminal Operator Tariffs. Each marine terminal operator subject to the Shipping Act, may at its discretion, may make available to the public a tariff providing a schedule of its rates, regulations, and practices. DPI provides a complete tariff publication service for marine terminal operators in compliance with FMC regulations issued in 46 CFR Part 525 DPI publishes terminal tariffs on the web, in hard copy and in Adobe® PDF formats.

  To view examples of Terminal Tariffs published by DPI at this web site, please enroll for a free User ID, login, and select tariffs of various ports and terminal operators.

FMC Penalties for Non-Compliance

The FMC requires publication of all freight rates charged by ocean common carriers and NVOCCs on both exports and imports is legally required in the USA. Also, FMC prohibits all common carriers from providing any service that is not in accordance with the rates, charges, classifications, rules and practices contained in such published tariff.

As for penalties, Section 13(a) of the Shipping Act states:

Whosoever violates a provision of this Act, a regulation issued thereunder, or a Commission order is liable to the United States for a civil penalty. The amount of the civil penalty…may not exceed $5,000 for each violation unless the violation was willfully and knowingly committed, in which case the amount of the civil penalty may not exceed $25,000 for each violation. Each day of a continuing violation constitutes a separate offense. The amount of any penalty imposed upon a common carrier under this subsection shall constitute a lien upon the vessels operated by that common carrier.

Under 46 CFR Part 506, the FMC increased most penalties for non-compliance by 10% effective October 1996. Please note NVOCC bonds may be used by FMC to satisfy penalties.

The FMC Bureau of Enforcement has full time investigators based in Miami, New Orleans, New York, Los Angeles, Seattle, and Washington, DC. While it does not have staff outside the USA, the FMC obtains detailed information on import shipments from the US Customs Service. For more information and specific examples, please see our SIGNALS™ newsletter.