Navigating the new FMC final rule amending 46 CFR Part 520 - Changes impacting nvocc Tariff

In the seascape of ever-clarifying shipping regulations, staying informed is paramount.

Effective February 1, 2024, the Federal Maritime Commission (FMC) has implemented key amendments to tariff regulations, significantly impacting Non-Vessel-Operating Common Carriers (NVOCCs) in terms of transparency and compliance.

Here's an overview of these changes and their implications for your operations.

Key Regulatory Amendments:

The FMC's revisions focus on Carrier Automated Tariffs under 46 CFR part 520, aiming to foster an environment of greater transparency. Among the notable changes, the following have been implemented:

1. Free Access to Tariffs (46 CFR 520.9): This regulatory amendment requires the carriers to provide free public access to their tariff systems, abolishing previous provision that allowed NVOCC to impose reasonable tariff access fees. This shift ensures broader tariff accessibility to the public, consistent with FMC’s policy of carrier transparency.

2. License Revocation for Tariff Non-Compliance (46 CFR 520.3(f)): Strengthening the enforcement of tariff publication, the FMC now expressly mandates the revocation or suspension of licenses for NVOCCs failing to maintain and publish tariffs.

3. Cross-Referencing Tariffs & Other Charges and GRIs (46 CFR 520.7(a)(3)(iv)): NVOCCs may now include surcharges, assessorial charges, and GRIs by cross-referencing VOCCs’ tariffs in their own without markup. These charges must be clearly listed along with any separate service fees, and specify detail the services provided.

4. Fees Connected to Pass-Through Charges (46 CFR 520.7(h)): NVOCCs may now pass-through charges from VOCCs, without markup, acting only as collection agents. These charges must be clearly listed in the NVOCC's tariffs.

5. Co-Loaded Cargo (46 CFR part 520.11(c)): Part 520's now clarifies co-loading regulations between NVOCCs, distinguishing between shipper-to-carrier and carrier-to-carrier relationships for LCL and FCL cargo.

In a Shipper-to-Carrier relationship (available for LCL and FCL), a 'master NVOCC' that issues its house bill of lading assumes legal responsibility. The tendering NVOCC must detail co-loading practices in its tariff.

In Carrier-to-Carrier relationship (available only for LCL), NVOCCs that share container space may each issue its own bill of lading and will each assume separate legal responsibilties. Each NVOCC must note the arrangement in its respective tariff.

We highly recommend reviewing these regulatory changes in detail. Paramount Tariff Services, Inc. is ready to assist you in navigating these updates to ensure your compliance.

For the final rules, please click the following link: Final Rule on Carrier Automated Tariffs

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.