November 12, 2015 | Industry Insights

FMC Final Rule Affecting FMC Bonds

Share This:
Featured Image

On November 5, 2015, the Federal Maritime Commission published its Final Rule amending certain regulations concerning the licensing, financial responsibility requirements, and general duties of Ocean Transportation Intermediaries. The Final Rule discusses the changes to be made to 46 CFR Part 515 and the public comments submitted during the rulemaking process. Roanoke encourages each licensed OTI to review this document to become familiar with the changes it makes.

The most significant change impacts the licensure of OTIs: The FMC is establishing an expiration date on the OTI license and requiring online renewal every three years. This change starts December 9, 2016, and for existing licenses will be phased in over 3 years. Additionally, certain definitions of terms have been updated to reflect modern practices, including removing some terms as obsolete.

Another change impacts OTIs with multiple US branch offices. The FMC no longer requires the OTI bond to be increased by $10,000 for each US branch. Starting December 9, 2015, all bonds for licensed OTIs are $50,000 (Freight Forwarder) and $75,000 (NVOCC). Registered foreign NVOCC bonds continue to be $150,000. Also, the FMC revised the text of the bond. All OTI bonds for all regulated OTIs will need to be updated to reflect the new language. The FMC allows the filing of a rider to make this change. To facilitate smooth and timely processing, riders will be accepted over a 12 month period.

For our licensed OTI clients with bonds covering US branch offices, Roanoke will process bond riders that will amend the bond amount and will amend the language. These will be done effective December 9, 2015. Additionally, these multi-office OTIs that also make use of the China bond rider may need that rider amended so that the combined coverage of the bond and China rider is $125,000. Where it occurs, unearned premium will be returned to the OTI. Shortly after December 9, Roanoke will begin processing riders to amend the language for all remaining OTI bonds so that this work is concluded in advance of the FMC’s deadline.

Insurance, surety and risk management solutions for supply chain and transportation intermediaries are Roanoke focus. Contact your Roanoke service representative or call us at 1-800-ROANOKE (800-762-6653) for more information.

Share This:

Related


Thank You to Karen Groff

We have important news to share with you. Karen Groff, President of Roanoke Insurance Group, has decided to leave the organization. Although our hearts are heavy with this news, we respect her decision and wish her all the best in her future endeavors. Karen played an integral role in Roanoke’s success over the past 30 years and solidified “The Roanoke Way” during her tenure as President. In her own words, Karen shares: “I will always treasure my time spent with Roanoke colleagues, clients and partners. The strong engagement and sense of community shared in this industry have been a constant inspiration […]

Industry Insights

Danielle Kurtzer: Charting New Territories as Roanoke’s RVP of Charleston

It is with great pleasure that we announce the promotion of Danielle Kurtzer to the role of Regional Vice President of our Charleston office, effective February 1, 2024. This is a significant milestone for Danielle and all of us at Roanoke, as she brings a wealth of experience and leadership to this pivotal role. Danielle’s journey in the insurance industry is nothing short of inspiring. With over 30 years under her belt specializing in Surety Bonds, Cargo Insurance, and Property & Casualty Insurance, she has proven herself to be a formidable force in the field. Her tenure at Roanoke began […]

Industry Insights

Roanoke Introduces New Client Experience Department!

Roanoke Insurance Group is excited to announce the formation of our Client Experience department. This new department will be led by Amanda Barlow, who has served our clients in a variety of capacities throughout her tenure at Roanoke. Most recently as the Regional Vice President of our Western region. Roanoke’s Kylie Reinert will join Amanda in building our Client Experience Department as Client Success Enablement Manager, which is a role she has been performing for the past year. The Client Experience team will be laser-focused on one overarching goal—to identify and implement strategies which make it easy and enjoyable for […]

Industry Insights

Roanoke is the leading provider of insurance and surety solutions for transportation and logistics providers. In fact, we are recognized as the most reliable source for U.S. customs bonds.

Contact

If you have any questions or need help, feel free to contact with our team.

800-762-6653
US Flag

US CORPORATE HEADQUARTERS

1501 E. Woodfield Road

Suite 400W

Schaumburg, IL 60173


Canada Flag

CANADA CORPORATE HEADQUARTERS

390 Bay Street

Munich Re Centre, 22nd Floor

Toronto, ON M5H 2Y2

Solutions that Go the Distance.

© 2024 Roanoke Insurance Group Inc.

Better Business Bureau logoCoverholder at Lloyd's logo