FMC Licensing
FMC Licensure
We have helped prepare hundreds of Ocean Transportation Intermediary license applications. If you are thinking about becoming a licensed OTI, call us. We will provide you with an honest and experienced advice on how best to approach the tough application process.
Domestic Entity OTI Licenses
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There are two things you must note from the outset. First, there are two (2) different types of OTI licenses granted by the FMC. One is the non-vessel operating common carrier (NVOCC) license and the other is the ocean freight forwarder license. Second, if you are a foreign person, (i.e. you are not an individual or a company located or incorporated in the U.S.), you have a choice of either being licensed by or registering with the FMC.
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If you are a person in the U.S. (i.e. you are an individual or a company located or incorporated in the U.S.), and provide ocean transportation to passengers or cargo between the U.S. and a foreign country, but don’t own a vessel yourself, then you will need a NVOCC license before providing services in the U.S.
If you are a person in the U.S., and dispatch shipments from the U.S. through a common carrier, books space for shipments on behalf of shippers, and processes related documents, you will need a forwarder license before providing services in the U.S.
A notable difference between the licenses is that NVOCC license permits a person to issue a house bill of lading whereas the forwarder license does not. Thus, if you would like to issue a house bill of lading, you will need to opt for the NVOCC license.
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If you have at least three years of demonstrable OTI experience in the U.S., you will qualify for an OTI license subject to a background check. If you do NOT have the requisite experience, however, you must appoint a qualifying individual (QI). The QI must have at least three years of demonstrable OTI experience in the U.S. and must be a corporate officer if you formed a corporation or your partner if you have formed a partnership.
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There are a total of 4 steps to obtain an NVOCC license. For a forwarder license, just follow the first 2 steps. We will help you each step of the way.
STEP 1
We will first need to fill out an OTI application form. We then will submit it along with supporting documents and the application fee.
Once an application is submitted, FMC will review the application, documents, and contact references. It will then investigate the applicant. This whole process usually takes between 6 to 10 weeks.
STEP 2
When your application is approved, we will need to secure a surety or a bond.
If you have been approved for an NVOCC license, we will need to secure an NVOCC bond for a minimum amount of $75,000.00.
If you have been approved for a forwarder license, we will need to secure an FMC bond for a minimum amount of $50,000.00.
If you have any unincorporated branch offices in the U.S. that performs OTI services, you are required to post an extra $10,000.00 per each branch office.
This is the last step for freight forwarders. If you are an NVOCC please go to step 3.
STEP 3
After FMC issues your NVOCC license, we will need to file a form FMC-1 notifying FMC the location of your online tariff.
STEP 4
We will need to file your tariff online. And that’s it. You are now a licensed NVOCC, freight forwarder, or both.
Please note that if you change the qualifying individual or make any other changes that FMC deems material, you must get an amended license. Please contact us if you make any changes to your business, including changes to your business structure, business name, address, and addition or deletion of trade names.
Foreign Entity NVOCC Registration
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As a foreign person (i.e. an individual or a company not located or incorporated in the U.S.), you may choose to either register with or be licensed by the FMC.
The advantage of being licensed as opposed to registering is that the former is only required to post an NVOCC bond in the amount of US$75,000.00 whereas the latter must one for US$150,000.00. Simply put, a licensed NVOCC will pay approximately half of the premium per annum that a registered NVOCC would pay.
However, please keep in mind that a licensing process is more rigorous than a registration process and not all foreign persons will qualify for a license.
It must also be mentioned that before providing services in the U.S., you must be licensed or registered with the FMC. In other words, if you don’t register or are licensed, you may NOT provide services in the U.S.
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There are total 3 steps to register as an NVOCC with the FMC. We will help you each step of the way.
STEP 1
We will need to secure a foreign NVOCC bond for a minimum amount of $150,000.00.
STEP 2
After the bond is issued, we will need to file a form FMC-1 notifying FMC the location of your online tariff.
STEP 3
Last step is to file your tariff online.
Foreign Entity NVOCC License
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Yes. There are total 5 steps that must be taken to obtain an NVOCC license for a foreign person (i.e. individual or legally created entity). We will help you each step of the way.
STEP 1
We’ll first need to set up an unincorporated branch office in the U.S. for you.
STEP 2
We will then need to fill out an OTI application form. We will then need to submit it along with supporting documents and the application fee.
Once an application is submitted, FMC will review the application, documents, and contact references. It will then investigate the applicant. This whole process usually takes between 6 to 10 weeks.
STEP 3
When your application is approved, we will need to secure an NVOCC bond.
If you have been approved for an NVOCC license, we will need to secure an NVOCC bond for a minimum amount of $75,000.00.
This will cover the foreign headquarter and one (1) unincorporated branch office in the U.S. that performs OTI services.
STEP 4
After FMC issues your NVOCC license, we will need to file a form FMC-1 notifying FMC the location of your online tariff.
STEP 5
We will need to file your tariff online.
And that’s it. You are now a licensed foreign NVOCC.
Please note that if you change the qualifying individual or make any other changes that FMC deems material, you must get an amended license. Please contact us if you make any changes to your business, including changes to your business structure, business name, address, and addition or deletion of trade names.