With the government shutdown starting today and the uncertainty of how long the shutdown will continue, Customs and Border Protection (CBP) has advised that the shutdown may impact the processing of bonds and riders. Yesterday, CBP issued the following statement. “FEDERAL GOVERNMENT SHUTDOWN Due to the Federal Government shutdown, the Revenue Division Bond Team is … Read more
Companies that operate as ocean freight forwarders and Non-Vessel Operator Common Carriers (NVOCC) are required to be licensed as an OTI. This guarantees that the contractual relationships between shippers and carriers will be fulfilled. The OTI collects the transportation charges from the shipper for payment to the carrier. The bond is in place to help … Read more
The Federal Maritime Commission (FMC) has reviewed and believes the bond amounts, as currently required, are insufficient to demonstrate financial responsibility of the OTI (Ocean Transportation Intermediaries) due to the large number of bond saturations the FMC has seen. They have proposed that domestic NVOs increase their current bond requirement from $75,000 to $100,000 and … Read more
