executive summary: Demurrage and Detention Billing Requirements
The FMC has introduced new rules impacting demurrage and detention invoicing. The following is a summary of the key essential changes, including revised definitions, invoice requirements, and dispute resolution processes.
Summary of Key Points:
1. Purpose and Scope (46 CFR 541.1 & 46 CFR 541.2):
This section clarifies that the rules governs invoicing practices for demurrage and detention charges, ensuring transparency and uniformity in how these charges are communicated to NVOCCs and other parties.
2. Changes in Definitions (46 CFR 541.3):
The addition of "consignee" and "person" and the removal of "billing dispute" aim to clarify the involved parties and their roles.
3. Properly Issued Invoices (46 CFR 541.4):
The section emphasizes that invoices should be issued to the correct party in contractual privity with the carrier, ensuring they are directed accurately either to the person contracting the services or the consignee.
4. Issuance and Content of Invoices (46 CFR 541.7 & 46 CFR 541.6):
Demurrage and detention invoices must be issued within specific timeframes and contain detailed information.
5. Dispute Resolution and Fee Mitigation (46 CFR 541.8):
The section stipulates timeframes for submitting and resolving fee mitigation, refund, or waiver requests, providing a structured process for disputes.
6. Billing Information Requirements (46 CFR 541.6):
Invoices must include specific, detailed information, ensuring that NVOCCs can understand and verify charges accurately.
Disclaimer
The information provided above is a summary intended for informational purposes only and should not be construed as legal advice. It is recommended that NVOCCs or any interested parties consult with a qualified legal professional to understand how these regulatory changes apply to their specific circumstances.