BOND DESK USA PROGRAM - FMC / NVOCC BOND
Ocean Shipping Reform Act of 1998
On May 1, 1999, the US government passed the Ocean Shipping Reform Act of 1998 (The Act). The Act requires every ocean freight forwarder and NVOCCs operating in the USA to have a license issued by the Federal Maritime Commission (FMC) to operate as an Ocean Transport Intermediary (OTI). NVOCCs operating outside of the US and NVOCCs who serve only the domestic commerce of the USA are not require to obtain the OTI license. However, all foreign NVOCCs shipping goods into the US under their own house bill of lading are still required to maintain both proof of financial responsibility and a tariff with the FMC. For more information, please see the FMC's website at www.fmc.gov
As the dominant provider of NVOCC Bonds in Asia, Risk Management Insurance Brokerage Ltd. has assisted numerous NVOCCs in Hong Kong, China, Korea, Japan, Singapore, India, and other Asian countries to comply with this FMC regulation. We work with financially strong surety companies with solid experience. With over 15 years local experience, we are the bond leader in Hong Kong and Asia.

Proof of Financial Responsibility - NVOCC Bond

One form of financial responsibility accepted by the FMC is a surety bond. FMC currently requires foreign based NVOCC¡¦s to maintain a US $150,000 bond on file. In addition, we keep our clients up-to-date of any changes in FMC regulations that could potentially disrupt their operations while helping our clients to navigate the difficult regulatory landscape of the US transportation market.

Tariff Filing

In addition to proof of financial responsibility, an NVOCC must maintain a tariff with the FMC. While there are numerous tariff companies in the US who can assist the NVO with their tariff, one of the companies we work with is Distribution Publication Inc. (DPI). DPI has assisted numerous forwarders and NVOCCs worldwide with their tariff filing. For more information, please contact Mr. James Devine at jdevine@dpiusa.com or visit their web-site at www.dpiusa.com. Their office contact information is:

Distribution-Publications, Inc. (DPI)
180 Grand Ave., Suite 430
Oakland, CA 94612 USA
Tel: 1-510-273-8933
Fax: 1-510-273-8939
There are 2 options available in applying for an FMC / NVOCC bond:
FREIGHT ASSOCIATION BOND PROGRAM
If you are a member of your national freight forwarder association, you may join our Freight Association Bond Program. To apply, we require the following documents:

1.Completed and signed Bond Application
2.Proof of insurance for bill of lading legal liability and Errors & Omissions coverage.
3.Current proof of membership to your national freight forwarding association
4.Copy of house bill of lading (front and back)
5.Proof of tariff filing

The current annual premium for the Freight Association Bond is USD $1,500 or 1% of the bond amount. Currently the bond amount has been set at US $150,000 for foreign NVOCCs.
INDIVIDUAL NVOCC BOND
If you are unable to join our Freight Association Bond program, you may join the individual NVOCC bond. We require:

1.Completed and signed NVOCC Bond Application
2.Proof of insurance for your bill of lading legal liability and Errors & Omissions coverage.
3.Copy of house bill of lading (front and back)
4.Most recent audited company financial statement including Balance Sheet showing assets and liabilities and Profit Loss Statement
5.Proof of tariff filing
6.Copy of the company's current business registration certificate

The minimum premium for this bond is 2% of the bond amount and can go as high as 5%, depending on the financial strength of your company. In addition, the surety company will require signed indemnity agreement from the bond principal. In some situations, the surety may also require a financial guarantee or full collateral in the form of an L/C.