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FMC News: Enforcement Procedures, OTI Licensing, License Revocations and Applications

Thursday, October 10, 2019
Sandler, Travis & Rosenberg Trade Report

Enforcement Procedures Revised

The Federal Maritime Commission has issued a direct final rule revising its delegations to the Bureau of Enforcement and its procedures for initiating enforcement action. This rule will be effective as of Dec. 24 unless significant adverse comments are filed prior to Nov. 8.

Currently the BOE has the authority to, without Commission input or approval, (a) send out notice and demand letters describing alleged violations and demanding civil penalties and (b) enter into compromise agreements with respondents. The FMC is now establishing a single pre-enforcement process that will (a) provide notice to the subjects of investigations that BOE intends to recommend the initiation of enforcement proceedings and allow them an opportunity to respond before those recommendations are submitted, (b) require Commission approval before formal or informal enforcement action is undertaken, and (c) require Commission approval of any proposed compromise agreements.

Regulatory Changes on OTI Licensing, Carrier/MTO Agreements

The FMC is proposing to amend its regulations as follows to implement provisions in a 2018 law regarding ocean transportation intermediary licensing, financial responsibility, and general duties as well as the submission of public comments on agreements between ocean common carriers and marine terminal operators.

- expand the class of persons that must be licensed as OTIs and meet associated financial responsibility requirements to include those that advertise or hold themselves out as OTIs

- make clear that OTI licensing and financial responsibility requirements do not apply to a person performing OTI services on behalf of an OTI for which it is a disclosed agent

- expand the prohibition on common carriers knowingly and willfully accepting or transporting cargo from (a) non-vessel-operating common carriers that do not have a tariff and (b) OTIs (i.e., NVOCCs or ocean freight forwards) that do not meet financial responsibility requirements

- make comments submitted to the FMC regarding filed ocean common carrier and MTO agreements confidential

Comments on this proposal are due by Nov. 8.

OTI License Revocations and Applications

The FMC has given notice that the following ocean transportation intermediary license has been revoked. A revocation may occur after a license is surrendered voluntarily by the OTI or for failure to maintain a valid bond.

- license #024870NF: Harrison Global Freight Inc., City of Industry, CA

- license #020522N: Ocean Cargo Carriers Co LLC, Staten Island, NY

- license #027355N: Seahawks Global Logistics Inc., Milpitas, CA

In addition, the FMC has provided notice that the following have filed applications (a) for OTI licenses as NVOCCs and/or ocean freight forwarders or (b) to amend an existing OTI license or the qualifying individual for a licensee.

- A – Sonic Logistics (USA) Inc., Valley Stream, NY (QI change)

- AO Logistics Rec Inc., San Pablo, CA (new NVO license)

- Cassidy Logistics LLC, Milton, GA (new NVO and OFF license)

- Effort Enterprises International Inc. dba ReloBoxes dba Atlantic International, Atlanta, GA (new OFF license)

- Embarque Victoria Shipping Inc., Bronx, NY (new NVO and OFF license)

- Global DCM Inc. dba GDCM, Rancho Palos Verdes, CA (new NVO and OFF license)

- Guy Tombs Inc., Plattsburgh, NY (new NVO and OFF license)

- Honu Global Logistics LLC, Hayward, CA (new NVO and OFF license)

- Morepro Co., Ontario, CA (new NVO license)

- Paramount Transportation Logistics Services LLC, Fort Myers, FL (QI change)

- Phantom Logistics Transportation and Distribution Inc., Miami, FL (license transfer to Lawton Executive Services Inc.)

- Prime Freight International, Cerritos, CA (QI change)

- Procomexamerica Cargo Corp., Doral, FL (new NVO and OFF license)

- Regiment Logistics LLC, Weston, FL (new OFF license)

- RPJ Worldwide Logistics LLC, Walla Walla, WA (new OFF license)

- RSA Global Logistics LLC, Langhorne, PA (new NVO license)

- Ryan Morrok dba SBR Service By Ryan, National City, CA (new NVO and OFF license)

- Vedvarende LLC dba Newfreight, Long Beach, CA (new NVO license)

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