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FMC Proposes Changes to Rules on Service Contracts, NVOCC Service Arrangements

Monday, August 22, 2016
Sandler, Travis & Rosenberg Trade Report

The Federal Maritime Commission is proposing to update, modernize and reduce the burden associated with its regulations on service contracts and non-vessel-operating common carrier service arrangements. Comments on this proposed rule are due by Sept. 23.

The changes proposed include the following.

- requiring the use of the six-digit FMC organization number for NVOCCs that are a contract holder or affiliate in a service contract or NSA by adding a data field in SERVCON allowing entry of this number

- allowing an amendment to a service contract or NSA to be filed within 30 days of its effectiveness

- extending from 48 hours to 30 days the period after the filing of the original contract, NSA or amendment in which a corrected transmission may be filed

- extending from 45 days to 180 days the time period for filing a correction request to a service contract or NSA

- reducing the filing fee from $315 to $95

- requiring NSA shippers to certify their status, as shippers are required to do under the service contract regulations

- establishing a consistent definition of “affiliate”

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