December 14, 2015
FMC’s OTI Regulations Are Now Effective
On November 5, the Federal Maritime Commission (FMC) issued the Final Rule amending regulations for Ocean Transportation Intermediaries (OTIs). You can read more about the specifics of the Final Rule from the Federal Register here. The regulations became effective as of December 9, 2015.
Highlights from the Final Rule are:
- OTIs will be required to renew licenses every three years, and all renewals must be filed electronically
- Bond language has been redefined and updated.
- Unincorporated branch offices no longer have to be bonded for $10,000 each.
- All licenses and applications will be filed in a single, online portal.
- Bond limits have been decreased ($50,000 for Ocean F/F; $75,000 for NVOCC; $150,000 for Foreign NVOCC)
For more information on how this updated regulation will affect your current OTI bonds, contact your Avalon office.