executive summaries: FMC's New Interim Procedures for charge complaints
The Federal Maritime Commission (FMC) Introduces Interim Procedures to Tackle Non-Compliant Shipping Charges
The big picture: The FMC's new Interim Procedures under the Ocean Shipping Reform Act of 2022 (OSRA) target non-compliant shipping charges. The procedures enable parties (e.g., shippers, consignees, and truckers) to access a streamlined process for filing complaints related to shipping charges. These disputes typically include, without limitation, demurrage and detention fees by common carriers (including NVOCCs).
Why it matters: By allowing affected parties to file complaints against common carriers for disputed charges, the FMC aims to increase accountability and transparency in the shipping industry.
How it operates:
Complainant (e.g., shipper) identifies if it has a valid charge complaint related to shipping charges assessed by common carriers (including NVOCCs) under the OSRA.
Complainant must verify that the charges MUST: a) have been imposed after June 16, 2022; b) have been imposed by a common carrier (including NVOCCs); c) have already been billed; d) be related to U.S. port activities.
Complainant must gather detailed information on the carrier (e.g., NVOCCs) and evidence supporting how the charge violates 46 U.S.C. §§ 41104(a) or 41102, including relevant invoices.
Complainant must email the Charge Complaint to chargecomplaints@fmc.gov, detailing the carrier's identification, the nature of the charge violation, and attaching supporting evidence.
After submission, the FMC will review the complaint to determine if it meets their criteria for further investigation.
If criteria is met, the FMC may investigate the charge. The common carrier (e.g., NVOCC) will bear the burden of proving the charge's reasonableness.
Depending on investigation outcomes, the FMC may order charge refunds or waivers, or escalate the issue to formal enforcement proceedings.
If a resolution involves voluntary refunds or waivers by the carrier (e.g., NVOCC), the complaint process concludes without further action from the complainant.
If no violation is found, the complainant may seek alternative dispute resolution methods or pursue other complaints with the FMC.
Yes, but: While the FMC's initiative is procedurally groundbreaking, the traditional methods of dispute resolution (e.g., small claims, formal complaint with FMC) remains unchanged.
The takeaway: The FMC's Interim Procedures signifies a critical step in streamlining charge-related complaints. NVOCCs and other relevant parties should closely monitor the impacts of these new procedures, as they may necessitate a reassessment of common carriers' charging practices for compliance with reasonableness standards.
For detailed informaiton on the interim procedures, please clicke the following: Guidance on Charge Complaint Interim Procedure
Disclaimer
Not Legal Advice: The content provided by Paramount Tariff Services, Inc., including all text, graphics, images, and other material, is for informational purposes only and is not intended to be a substitute for professional legal advice. While we strive to provide accurate and up-to-date information, the material should not be considered as comprehensive legal advice or a guide for individual legal situations.
We strongly recommend consulting with a qualified attorney for specific legal advice tailored to your situation. The use of information contained in this newsletter does not create an attorney-client relationship, as Paramount Tariff Services is not a law firm. Paramount Tariff Services, Inc., along with its employees, agents, and representatives, expressly disclaims all liability in respect to actions taken or not taken based on any or all of the contents in this website.