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If an NVOCC doesnt file a special permission to ammend, he can be fined.
See below 2 part answer.
Answer 1)
FMC Penalties for Non-Compliance
The FMC requires publication of all freight rates charged by ocean common carriers and NVOCCs on both exports and imports is legally required in the USA. Also, FMC prohibits all common carriers from providing any service that is not in accordance with the rates, charges, classifications, rules and practices contained in such published tariff.
As for penalties, Section 13(a) of the Shipping Act states:
Whosoever violates a provision of this Act, a regulation issued there under, or a Commission order is liable to the United States for a civil penalty. The amount of the civil penalty…may not exceed $6,000 for each violation unless the violation was willfully and knowingly committed, in which case the amount of the civil penalty may not exceed $30,000 for each violation. Each day of a continuing violation constitutes a separate offense. The amount of any penalty imposed upon a common carrier under this subsection shall constitute a lien upon the vessels operated by that common carrier.
Under 46 CFR Part 506, the FMC increased most penalties for non-compliance by 10% effective October 1996. NVOCC bonds may be used by FMC to satisfy penalties.
Every Import and Export rate for VOCCs and NVOCCs must be filed and published per FMC regulations.
It is unlawful to provide rates, charges, classification, and rules not stated in published tariff
Federal Maritime Commission (FMC) Penalties for Non-Compliance
• $6,000 for each unpublished tariff
• $30,000 for each willful violation
• Each day of a continuing violation is considered a separate offense.
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Answer 2)
The NVOCC must apply for a Special Permission with the FMC and pay the filing fee of $195.00 per occurance in order to have the filing added. See below.
§ 520.14 Special permission.
(a) General. Section 8(d) of the Act authorizes the Commission, in its discretion and for good cause shown, to permit increases or decreases in rates, or the issuance of new or initial rates, on less than the statutory notice. Section 9(c) of the Act authorizes the Commission to permit a controlled carrier's rates, charges, classifications, rules or regulations to become effective on less than 30 days' notice. The Commission may also in its discretion and for good cause shown, permit departures from the requirements of this part.
(b) Clerical errors. Typographical and/or clerical errors constitute good cause for the exercise of special permission authority but every application based thereon must plainly specify the error and present clear evidence of its existence, together with a full statement of the attending circumstances, and shall be submitted with reasonable promptness after publishing the defective tariff material.
(c) Application. (1) Applications for special permission to establish rate increases or decreases on less than statutory notice or for waiver of the provisions of this part, shall be made by the common carrier, conference or agent for publishing. Every such application shall be submitted to the Bureau of Trade Analysis and be accompanied by a filing fee of $195.
(2) Applications for special permission shall be made only by letter, except that in emergency situations, application may be made by telephone or facsimile if the communication is promptly followed by a letter and the filing fee.
(3) Applications for special permission shall contain the following information:
(i) organization name, number and trade name of the conference or carrier;
(ii) tariff number and title; and
(iii) the rate, commodity, or rules related to the application, and the special circumstances which the applicant believes constitute good cause to depart from the requirements of this part or to warrant a tariff change upon less than the statutory notice period.
(d) Implementation. The authority granted by the Commission shall be used in its entirety, including the prompt publishing of the material for which permission was requested. Applicants shall use the special case number assigned by the Commission with the symbol "S".
[67 FR 39860, June 11, 2002]
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Disclaimer:
The information contained in this answer is provided for informational purposes only, and should not be construed as legal advice on any subject matter. Please consult an attorney for legal advice.
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