Avalon Risk Management, Inc. - FIATA Group Bond Programme

FIATA GROUP BOND PROGRAMME

INTRODUCTION

Avalon Risk Management, Inc. and the International Federation of Freight Forwarders Associations (FIATA) established a partnership in 2005 providing FIATA with a group (NVOCC) bond. This group bond satisfies the Federal Maritime Commission's (FMC) financial responsibility requirement of all Ocean Transportation Intermediary/Non-Vessel Operating Common Carriers (OTI/NVOCCs). Participation on this bond is limited to individual members of FIATA or FIATA Association members.

ELIGIBILITY & UNDERWRITING REQUIREMENTS

FIATA members benefit from a streamlined underwriting process, competitive rates, and for qualifying members, the elimination of surety requirements of collateral. Submission requirements:

Submit a current version of the FIATA Group (OTI/NVOCC) Bond Programme Application & Indemnity Agreement.
Be a member in good standing with a FIATA Association member* or a Direct member of FIATA. Membership must be in the name of the applicant and not a parent company or subsidiary. Submit a copy of your membership certificate with your application.
Provide evidence of Cargo Legal Liability and Errors & Omissions insurance. (It is not required that this be written through Avalon). Submit a certificate of insurance or a copy of the declarations page of your policy with your application.
Provide written proof of tariff. (Not required in advance for applicants not presently registered with the FMC).

* To verify if your association is a FIATA Association member visit the FIATA's homepage.

ANNUAL PREMIUM

Annual premium is 1% of a participant's individual bond limit and each invoice will include a small $25.00 payment processing fee. Initial invoices will be pro-rated based on the participant's individual effective date on the group bond to the following 1st of December (the group bond's anniversary date).

APPLICATION

FIATA Group (OTI/NVOCC) Bond Programme Application & Indemnity Agreement. [PDF] [Microsoft Word]

OPTIONAL (CHINA) RIDER

Annual premium for the additional $21,000.00 limit is $500.00. A $25.00 payment processing fee will be applied if billed separately from the FIATA Group Bond. Initial invoices will be pro-rated based on the participant's individual effective date on the group bond to the following 1st of December (the group bond's anniversary date). Available to U.S.-Domiciled companies only.

ADDITIONAL BENEFITS

One point-of-contact for the administration of the FIATA Group Bond.
Subscription to Avalon's Quest Newsletter.
Regulatory guidance to participants and prospective participants with regard to the U.S. FMC and Customs issues.
U.S. Customs bond types C2 and C3 are available to FIATA Group Bond participants based on our realistic approach to underwriting Non-U.S. principals. The annual premium for these bonds is typically 1.5% of the bond limit plus an Administration Fee of $250.00. Additional underwriting requirements apply.
OTI/FF bond available to FIATA Group Bond Participants at the annual premium of 1% of the bond limit plus an Administration Fee of $250.00. Additional underwriting requirements apply. Available to U.S.-Domiciled companies only.

OTHER PRODUCTS

Cargo Insurance
Surety Bonds
Combined Transit Liability
Truck Insurance
Business Insurance

Visit Avalon's homepage for additional information on the other products we offer.

ANNUAL RENEWALS

By November 15th of each year participants will be notified via U.S. mail of the upcoming renewal period. Renewal requirements have been crafted to provide Avalon with the necessary underwriting information to protect the group bond and at the same time minimize the administrative burden placed on participants.

Avalon does reserve the right, however, to remove a participant at any time for underwriting reasons. If this becomes necessary, Avalon will provide the required 30 days notice to the participant and to the FMC.

LITERATURE

Does Your Company Need to Register with the United States Federal Maritime Commission? [PDF]
China's New Registration regulations [PDF]

ADDITIONAL RESOURCES

Federal Maritime Commission - Website
Federal Maritime Commission - OTI Frequently Asked Questions
Federal Maritime Commission - OTI/NVOCC List