FMC Compliance FAQ:
Everything NVOCCs and OTIs Need to Know
Table of Contents
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Understanding the FMC
What is the FMC?
The Federal Maritime Commission (FMC) is the U.S. agency responsible for regulating international ocean transportation involving the United States, promoting fair competition, and ensuring legal compliance among carriers and transportation intermediaries.
What is the difference between FMC registration and licensing?​
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Non-U.S.-based NVOCCs must register with the FMC and post a bond.
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U.S.-based NVOCCs and Freight Forwarders (OTIs) must obtain a license and post a bond.
Not sure which one applies to you? Get expert help from our team — we'll guide you step-by-step through FMC licensing or registration.
​​What does FMC compliance mean for international shipping?
FMC compliance means following the legal requirements for doing business as an ocean transportation intermediary in the U.S. This includes officially registering or getting licensed with the FMC, posting a financial security bond, and clearly stating your service terms and pricing for customers. If you fail to meet these requirements, the FMC may issue fines, suspend your operations, or revoke your approval to operate.
NVOCCs, OTIs, and Freight Forwarders
What is an NVOCC?
A Non-Vessel Operating Common Carrier is a company that arranges ocean transport and issues its own Bills of Lading but does not operate the vessel.
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What is an OTI (Ocean Transportation Intermediary)?
An OTI is either an NVOCC or an Ocean Freight Forwarder—both serve as intermediaries in international ocean freight shipments.
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What’s the difference between a Freight Forwarder and an NVOCC?
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NVOCCs act as carriers, issuing their own B/Ls.
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Freight Forwarders act as agents, arranging cargo movement on behalf of shippers.
FMC Bond & Financial Responsibility
What is an FMC Bond?
An FMC Bond is a form of financial security posted by NVOCCs and Freight Forwarders to ensure payment of claims and penalties arising from regulatory violations or failure to perform services.
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How much is the FMC Bond?
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non-U.S.-based NVOCCs: $150,000 Bond
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U.S.-based NVOCCs: $75,000 Bond
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U.S.-based Freight Forwarders: $50,000 Bond
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How long is the bond valid?
The FMC bond is issued as a continuous bond, meaning it stays active as long as annual payments are made. Most bonds are billed and renewed yearly to ensure uninterrupted compliance.
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Where can I get an FMC bond?
From a U.S.-authorized surety company. If you're a non-U.S. NVOCC registering with the FMC, we can help you find an FMC bond through our network. Click here to request a free quote and start the registration process.
Want help with both your bond and registration or licensing? We can bundle both to save you time. Request assistance here.
Tariff & Rate Compliance
What is an FMC Tariff?
An online, publicly accessible document outlining an NVOCC’s rates, charges, rules, and terms of service. Required by the FMC.
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Who must publish a tariff?
All FMC-registered NVOCCs, whether licensed or registered, must publish and maintain a tariff.
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What are NRAs (Negotiated Rate Arrangements)?
Legally binding rate agreements between an NVOCC and its shipper are an alternative to tariff rates.
What’s the difference between a tariff rate and an NRA?
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Tariff rate: Standard published pricing.
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NRA: A negotiated one-to-one agreement with a shipper that overrides published rates.
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Do I need both a tariff and NRAs?
Yes. A published tariff is always required. NRAs are optional but commonly used for commercial flexibility.
We offer turnkey FMC tariff publishing and NRA management solutions. Learn more or schedule a consultation.
FMC Forms & Registration Process
What is the FMC-1 form?
Used by U.S.-based OTIs to apply for an FMC license.
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What is the FMC-65 form?
Used by non-U.S. NVOCCs to apply for registration with the FMC.
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What are the requirements for FMC licensing (U.S.-based OTIs)?
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Application (FMC-1)
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U.S. business presence
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Character and experience requirements
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Financial responsibility (FMC bond)
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U.S.-based Designated Legal Agent for Service of Process
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What is a Designated Legal Agent?
A U.S.-based person or company authorized to receive legal notices on behalf of the NVOCC.
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What documents are required to register as a non-U.S. NVOCC?
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Application (FMC-65)
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Proof of business formation
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Bond documentation
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Appointment of U.S. legal agent
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Letter of Authority (LOA) for filing services, if applicable
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Are you unsure where to start or which forms you need? Let us walk you through the process—our specialists will simplify it.
FMC Enforcement & Compliance Risks
What are the penalties for operating without registration or licensing?
The FMC may impose civil penalties, fines, cease-and-desist orders, and public suspension notices.
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How does the FMC conduct audits or investigations?
The FMC monitors compliance through complaints, audits, and data filings. Non-compliant NVOCCs can face detailed investigations.
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What are the common causes for FMC penalties?
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Failing to publish or maintain a tariff
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Issuing B/Ls without valid registration/license
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Allowing other parties to use your rates or contracts
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Misuse of NRAs
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Operating without bond coverage
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Can I use someone else’s tariff or FMC license?
No. Doing so is a major violation and frequently results in fines. Each NVOCC must have its own registration, bond, and tariff.
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What is a Letter of Authority (LOA)?
A document authorizing a third party to act or file documents on behalf of the NVOCC, often used by filing agents or publishers.
Additional Compliance Topics
Do freight forwarders need a bond?
Yes. U.S.-based freight forwarders must post a $75,000 bond.
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Do I need a lawyer to register or license with the FMC?
No. However, working with a compliance specialist or filing agent is strongly recommended.
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What is a SCAC code, and is it required?
The Standard Carrier Alpha Code is used for carrier identification. It's not issued by the FMC, but may be required by other systems (e.g. AMS).
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How long does the FMC registration or licensing process take?
Typically 2 to 6 weeks, depending on the completeness of documents and FMC processing time.
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How can I stay up to date with FMC rules?
For the latest FMC news, regulatory changes, and compliance tips, Subscribe to our FMC Watch™ Newsletter — don’t miss out!
Related Concepts
What is a Customs Broker, and how is it different from an FMC Licensed OTI?
Customs Brokers handle U.S. import clearances with CBP. FMC licensed OTIs handle international transportation logistics.
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What’s the role of the FMC in dispute resolution?
The FMC handles formal complaints between shippers and carriers. It can mediate disputes and issue reparations.
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Are there exemptions to FMC rules?
Some exemptions exist (e.g. certain government cargoes, private carriage), but most commercial NVOCCs must fully comply.
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What are Transportation Intermediary Practices?
These are FMC regulations that govern the interactions between NVOCCs and freight forwarders and shippers, including advertising, documentation, and billing practices.
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Where can I verify if a company is FMC-compliant?
Search the FMC’s official NVOCC list to verify registration, license status, and bond coverage.
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