1. The Federal Maritime Commission
International Association of Movers - September 27, 2017

2. Overview Introduction to the Bureau of Certification and Licensing
What is an ocean transportation intermediary (OTI)?
46 CFR License – when required
46 CFR License – when not required
How are OTIs licensed or registered?
OTI Statistics
Requirements for OTI licensing or registration
Where to find OTI information on the FMC website (
IAM, September 27, 2017

3. Bureau of Certification and Licensing
Office of Ocean Transportation Intermediaries (OTIs)
Ocean Freight Forwarders (OFFs)
Non-Vessel Operating Common Carriers (NVOCCs)
Office of Passenger Vessels and Information Processing
Passenger Vessel Certificate Program
OTI Bonding
Database of Regulated Persons
IAM, September 27, 2017

4. What is an OTI? Ocean Freight Forwarder (OFF)
Entity within the U.S. that dispatches shipments via a common carrier from the U.S. to a foreign country
Books and arranges space for shipments on behalf of their shippers (acts as an agent for the shipper)
Prepares and processes any documentation needed for shipments
Non-Vessel Operating Common Carrier (NVOCC)
Does not operate the vessels that will be moving the cargo and acts as both a shipper (in relationship to the VOCC) and a carrier (in relationship to the cargo owner)
Can enter into a service contract as a signatory with a VOCC to obtain rates and can offer rates to its customers via a tariff, NVOCC service arrangements (NSAs) or NVOCC negotiated rate arrangements (NRAs)
Issues a house bill of lading (HBL)
IAM, September 27, 2017

5. 46 CFR 515.3
Except as otherwise provided in this part, no person in the United States may act as an ocean transportation intermediary unless that person holds a valid license issued by the Commission.
Foreign-based entities may register as NVOCCs and must utilize only licensed ocean transportation intermediaries to provide NVOCC services in the United States.
In the United States, only licensed OTIs may act as agents to provide OTI services for registered NVOCCs.
IAM, September 27, 2017

6. A license is not required in the following circumstances:
46 CFR 515.4
A license is not required in the following circumstances:
(a) Shippers
(b) Agents, employees, or branch offices of a licensed OTI
(c) Common carriers
(d) Federal military and civilian household goods
IAM, September 27, 2017

7. How are OTIs licensed or registered?
U.S. based entities or foreign-based entities with a U.S. branch office may be licensed as an OTI
A U.S. based entity may be licensed as either an OFF or an NVOCC or both an OFF/NVOCC
A foreign based entity may only be licensed as an NVOCC
Both types of entities apply for a license via the form FMC-18 (application fee $250 and electronically submitted online)
Foreign based entities may choose to be registered as an NVOCC
A U.S. branch office is not required however any OTI services performed on the entities behalf in the U.S. must be performed by a licensed OTI
NVOCC registration is performed via submission of the form FMC-65
IAM, September 27, 2017

8. OTI Statistics 4,754 U.S. based licenses 931 OFF – only
6,347 Total OTIs
4,754 U.S. based licenses
931 OFF – only
1,733 NVOCC – only
2,090 NVOCC and OFF
1,593 Foreign-based NVOCC
1,509 registered NVOCC
84 licensed NVOCC
IAM, September 27, 2017

9. Registered Foreign NVOCCs vs. Licensed Foreign NVOCCs
File FMC-18? NO
YES
File FMC-65?
Bond amount?
$150,000
$75,000
Branch office in the U.S.?
Tariff required to be published?
Agent for Service of Process
IAM, September 27, 2017

10. Requirements for OTI licensing or registration
Once the FMC-18 has been approved (typically within days) the entity must provide the FMC with proof of financial responsibility (surety bond) and the location of the published tariff (for NVOCCs only).
FMC-48, proof of financial responsibility
For NVOCC $75,000 coverage
For OFF $50,000 coverage
If no FMC-48(s) provided within 120 days from date of approval the approval is rescinded
FMC-1, location of the published tariff (lists all rates, charges, classifications, rules, and practices between all points or ports on the service routes).
To be listed on the FMC website all entities must maintain bond(s). If an NVOCC, a tariff must also be maintained.
Registered NVOCCs must also maintain a bond and tariff however the bond amount is higher, $150,000. As of October 2013 registered NVOCCs must renew their registration every three years.
IAM, September 27, 2017

11. Requirements cont. -
As of March 2017, (final rule Docket amends 46 C.F.R. Part 515) licensees must be aware of the duration of the license and the update process.
515.14(c) Duration of license. Licenses shall be issued for an initial period of three (3) years. Thereafter, licenses will be renewed for sequential three year periods upon successful completion of the renewal process in paragraph (d) of this section.
515.14(d) License renewal process. (1) The licensee shall submit electronically to the Director of BCL a completed Application for Renewal of OTI License no later than sixty (60) days prior to the renewal date set forth on its license. Upon successful completion of the renewal process, the Commission shall update the renewal date to three (3) years later on the same day and month
IAM, September 27, 2017

12.
IAM, September 27, 2017

13. IAM, September 27, 2017

14. Questions? Aline Hull, Director OTI@fmc.gov (202) 523-5843
Office of Ocean Transportation Intermediaries
Bureau of Certification and Licensing
Federal Maritime Commission
800 N. Capitol Street, NW
Washington, DC 20573
(202)
IAM, September 27, 2017