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Ocean Transportation Intermediaries An Ocean Transportation Intermediary is either an ocean freight forwarder or a non-vessel operating common carrier (""NVOCC""). An ocean freight forwarder is an individual or company in the United States that dispatches shipments from the United States via common carriers and books or otherwise arranges space for those shipments on behalf of shippers. Ocean freight forwarders also prepare and process the documentation and perform related activities pertaining to those shipments. An NVOCC is a common carrier that holds itself out to the public to provide ocean transportation, issues its own house bills of lading or equivalent document, but does not operate the vessels by which ocean transportation is provided, and is a shipper in relation to the involved ocean common carrier. Ocean freight forwarders are required to obtain a license to provide services in the United States. U.S.-based NVOCCs are also required to be licensed. NVOCCs that are not based in the U.S. are not required to be licensed, but may choose to obtain one if desired, as licensing results in lower financial responsibility levels. Once an application is submitted, FMC staff will review the application, documents, contact references and investigate the applicant. Should the application be approved, the applicant will be notified of the approval and will be required to submit proof of financial responsibility (most likely a surety bond), in the amount of $50,000 (for an ocean freight forwarder license) or $75,000 (for NVOCC license). For each unincorporated branch office in the United States performing OTI services, the OTI is required to increase its bond by $10,000 and to report the addresses of those offices. Once a license has been issued to an NVOCC, it must file Form FMC-1 which notifies the Commission of the location of the NVOCC's electronically available tariff. It must then ensure the tariff is published. An OTI NVOCC may be a shipper signatory to service contracts with vessel-operating common carriers. The shipper party will need to certify on the signature page its shipper status. The vessel-operating common carrier is required to obtain proof that the NVOCC is appropriately licensed for U.S.-based NVOCCs, bonded, and has published a tariff. At the Commission, the Bureau of Certification and Licensing handles all OTI applications and OTI bonds and bond riders submitted as proof of financial responsibility. The Bureau of Trade Analysis handles all tariff and service contract-related matters. OTI Rules: 46 CFR Part 515, 46 CFR Part 520, 46 CFR Part 530 and 46 CFR Part 531 Shipping Act of 1984, as amended Bureau of Certification and Licensing
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