What is a Montana Federal Maritime Commission Bond?
Before they may execute their tasks, Ocean Transportation Intermediaries (OTI) such as an Ocean Freight Forwarder (OFF) or a Non-Vessel-Operating Common Carrier (NVOCC) must post a surety bond.
This proof of financial responsibility is required for both licensed OTIs and license applicants. The Federal Maritime Commission, in accordance with The Shipping Act of 1984, requires the surety bond.
An Ocean Freight Forwarder (OFF) is an individual who is responsible for the following:
- Import freight shipments to the United States are managed.
- Shipments are sent via ocean carrier from the United States to international destinations.
- Tracks the movement of shipment and prepares the documentation
On the other hand, a Non-Vessel-Operating Common Carrier (NVOCC) is a common carrier that does not own or operate its vessels. An NVOCC is also a shipper in its relationship with an ocean common carrier participating in cargo transit.
What is the Montana Federal Maritime Commission Bond amount?
Individual OTI Bond Amount
$50,000 – Ocean Freight Forwarder (OFF)
$75,000 – an individual operating in the U.S. as a Non-Vessel-Operating Common Carrier (NVOCC)
$150,000 – registered NVOCC whose primary place of business is outside the U.S.
Group OTI Bond Amount
The surety bond amount for the group Ocean Transportation Intermediaries will be up to $3,000,000. In addition, each group must:
- Notify the Commission of its desire to participate and provide documents.
- Provide a copy of the financial responsibility coverage to the Commission.
- Provide a list that includes each group member, the corresponding surety bond, and that claims will be allowed for each.
Individuals using the same common trade name should each provide their own surety bond. Different surety bonds are required for federal military and civilian household items.
Optional Rider for Additional NVOCC Financial Responsibility shall be added to the bond amount by $21,000. These are the NVOCCs that want to participate in US-China commerce.
The submitted surety bond will be reviewed and processed by the Office of Passenger Vessels and Information Processing (OPVIP).
What are the surety bond conditions?
- Any valid claims arising from the principal’s transportation-related activity misbehavior are the responsibility of the principal.
- The bond should be issued by a U.S. Department of Treasury-approved surety bond provider, such as Surety Bond Authority.
- Until it is canceled, the bond is valid. A 30-day notice is necessary in the event of a cancellation.
- The principal must follow the Coast Guard Authorization Act of 1998, the terms of the Shipping Act of 1984, and any other rules that apply.
How do you secure a Montana Federal Maritime Commission Bond?
To begin, fill out an application for a bond.
We’ll ask you a few questions about your financial history, work performance history, and credit score that are necessary for the underwriting procedure.
Once those have been evaluated, we will issue the bond and deliver it to you right away.
Need more information? Call or email us today!