What is a South Dakota Federal Maritime Commission Bond?
The South Dakota Federal Maritime Commission Bond is an unassailable pronouncement that a shipping company will comply with all of the provisions mandated by the Shipping Act of 1984, the stipulations of the Foreign Shipping Practices Act of 1988, the specifications under Section 19 of the Merchant Marine Act (1920), and all conditions spelled out under Public Law 89-777. It is also an indisputable warranty that clients, partners, and all stakeholders will be dealt with maximum impartiality and composure at all times.
Why do you need a Federal Maritime Commission Bond?
Having a Federal Maritime Commission bond will render you as a business person of integrity and competence. You are fundamentally showing your clients that you are capable of providing services in a principled and proficient manner. This is exceedingly vital in enhancing your reputation as a business owner and can automatically boost your image within the industry. In response, clients are confident of availing of your services. If a substantiated claim is made against you, your clients will be protected.
More details about the Federal Maritime Commission Bond
Here are some guidelines:
If you are an OFF (Ocean Freight Forwarder), you must be licensed and must submit proof of financial security– the Federal Maritime Commission bond. The bond must be a $50,000 coverage, with a supplementary $10,000 of coverage for every American unincorporated area office.
If you are an NVOCC (Non-Vessel-Operating Common Carrier), you need to get hold of a license (if you are based in the U.S.), a Federal Maritime Commission bond, and provide a price list. A circulated price list specifies the actual charges, duties, categorizations, guidelines, protocols, and practices of a common carrier as provided in 520.2 of Title 46 of the Code of Federal Regulations. NVOCCs with a license, whether based in the U.S. or another country, must have a $75,000 bond plus $10,000 for every U.S. self-governing workplace aside from the main office. On the other hand, unlicensed NVOCCs not based within the US must have with them a $150,000 bond.
Committing infringements to the Shipping Act can lead to a penalty of up to $5,000 fine for each defilement, or up to $25,000 every infraction when committed on purpose.
What is the cost of a Federal Maritime Commission Bond?
A Federal Maritime Commission Bond is vastly reliant on your financial credit report and standing as an entrepreneur. Qualified candidates with robust financial documentation and excellent entrepreneurial performance are expected to pay lesser than those who have a dubious credit history.
How do I get the South Dakota Federal Maritime Commission Bond?
Getting a South Dakota Federal Maritime Commission Bond is simple. Contact a genuine surety bond practitioner for rapid processing and be afforded professional treatment. Choose the one who can provide you prompt and efficient service.