FMC Certification in the United States Detailed
Explanation FMC BOND
FMC Concept
What is FMC
FMC Federal Maritime Commission is an independent federal agency in the United States responsible for regulating international ocean transportation activities related to the US The functions of FMC include enforcing and interpreting US shipping laws ensuring fair competition preventing unfair and anticompetitive practices and promoting efficient and reliable ocean transportation services
What is FMC BOND
It is a bond used to guarantee payment of fines fees and other charges arising from violations of US shipping laws and regulations The required bond amount varies depending on the type of OTI License
What is OTI License
Full name in English Ocean Transportation Intermediary License It is a permit for maritime service providers in the US to operate as NVOCC or freight forwarders Based on business types it is generally divided into three categories OTI NVOCC OTI Ocean Freight Forwarder OTI NF Non US companies typically apply for OTI NVOCC Registration
What is AMS
Full name in English Automated Manifest System AMS is a 24 hour manifest system or the US anti terrorism manifest system According to US Customs regulations all cargo destined for the US or transiting through the US to a third country must be declared to US Customs 24 hours before loading onto the vessel
What is SCAC CODE
Full name in English Standard Carrier Alpha Code It is a standard carrier code assigned by the National Motor Freight Traffic Association NMFTA
Role of FMC Certification
FMC Certification OTI NVOCC License and AMS Functions
Legally operate as a US NVOCC issue bills of lading to shippers and enhance the company s operational capabilities in US route business
Companies can directly engage with ship owners and US freight forwarders without relying on ship agents or first tier agents
Access freight rate information directly negotiate with ship owners to secure optimal pricing and resell services
Develop chartering business with potential shippers
Issue bills of lading or equivalent documents
Lease containers
Use the 24 hour declaration service system to submit AMS ISF etc enabling better time control and flexibility
Monitor cargo customs clearance status and shipment information
Relationship Between FMC Certification OTI NVOCC License and AMS
FMC certification OTI NVOCC License is a prerequisite for applying for AMS Only after obtaining FMC certification can a company apply for AMS and perform self declaration
Requirements for Obtaining FMC Certification
Sound financial status
High management standards and service quality
Compliance with safety measures and regulatory requirements
Submission of necessary application materials such as company background information business scope and management team details
Passing FMC review and evaluation
FMC Application Process
Submit application forms and materials Provide company information contact details and service scope to FMC
Pay application fees Pay the required fees as specified
Provide a bond or insurance policy Bond Submit a bond or insurance policy to FMC to ensure compliance with contractual obligations and US laws The bond amount typically around USD 100 000 depends on business scale
Submit NVOCC rules Publish service terms and fee schedules
Review and approval Wait for FMC review and approval which usually takes 2 3 months
Frequently Asked Questions
Annual Renewal Products
FMC BOND C3 Bond
Data maintenance annual fee
SCAC CODE
Annual service fees
What if the company lacks a passport
Provide valid national identification documents with names and numbers Alternatively provide the passport of a company executive
Fee Payment Process
Submit materials first A quote will be provided after review Fees are based on actual costs
Ocean Bill of Lading Requirements
Provide a blank bill of lading template with the company s letterhead scanned front and back If unavailable our company can provide a reference template
Detailed Documentation on US FMC Certification FMC BOND
FMC Concept
What is FMC
FMC Federal Maritime Commission is an independent federal agency in the US responsible for overseeing international maritime activities related to the US Its functions include enforcing and interpreting US maritime laws ensuring fair competition preventing unfair and anticompetitive practices and promoting efficient and reliable maritime services
What is FMC BOND
A bond to cover fines and fees resulting from violations of US maritime laws The bond amount varies by OTI License type
What is OTI License
Full name Ocean Transportation Intermediary License A permit for US maritime service providers to operate as NVOCC or freight agents Based on business type licenses are categorized as
OTI NVOCC
OTI Ocean Freight Forwarder
OTI NF
Non US companies typically apply for OTI NVOCC Registration
What is AMS
Full name Automated Manifest System A 24 hour automated manifest system Per US Customs all cargo entering the US or transiting through the US must be declared 24 hours before vessel loading
What is SCAC CODE
Full name Standard Carrier Alpha Code A standard carrier code issued by the National Motor Freight Traffic Association NMFTA
Purpose of FMC Certification
FMC Certification OTI NVOCC License and AMS
Legally operate as an NVOCC in the US issue bills of lading and enhance US route business efficiency
Directly engage with ship owners and US freight forwarders without intermediaries
Negotiate freight rates directly with ship owners for competitive pricing
Develop chartering services with potential partners
Issue bills of lading or equivalent documents
Lease containers
Use 24 hour AMS ISF declaration systems for flexible time management
Track cargo customs clearance status and shipment details
Link Between FMC Certification OTI NVOCC License and AMS
FMC certification is required for AMS registration Companies can only perform AMS self declaration after obtaining FMC certification
FMC Certification Requirements
Stable financial condition
High quality management and services
Compliance with security measures and regulations
Submission of complete documentation company profile operational scope management team details etc
Passing FMC audits
FMC Certification Process
Submit application and documents Company information contacts and service scope
Pay fees As specified
Submit Bond Provide a bond or insurance policy typically USD 100 000
Publish NVOCC Rules Service terms and fee schedules
Review and approval Usually takes 2 3 months
Common Questions
Annual Renewals
FMC BOND C3 Bond
Data maintenance fees
SCAC CODE
Annual service fees
No passport available
Submit valid national ID with name and number Alternatively use an executive s passport
Fee Payment Process
Submit materials first Quotes provided post review Costs based on actuals
Ocean Bill of Lading Specifications
Provide blank template with company letterhead front and back scans If unavailable we provide sample templates