What is a Texas Federal Maritime Commission Bond?
Get your OTI license by acquiring this bond!
The Federal Maritime Commission, in line with The Shipping Act of 1984, requires a surety bond for Ocean Transportation Intermediaries (OTI) as proof of financial responsibility for its activities. Those who cannot provide the said requirement will not be allowed to perform its duties in the U.S.
Ocean Transportation Intermediaries can either be an Ocean Freight Forwarder (OFF) or a Non-Vessel-Operating Common Carrier (NVOCC). Each one requires a surety bond.
An Ocean Freight Forwarder (OFF) is an individual who is responsible for the following:
- Responsible for freight shipments that are imported to the U.S.
- Dispatches shipments from the U.S. to international destinations via an ocean carrier
- Tracks the movement of shipment and prepares documentation
A Non-Vessel-Operating Common Carrier (NVOCC) is a common carrier that does not own or operate their vessels and is a shipper in its relationship with an ocean common carrier involved in cargo movement.
How much is the bond amount and what are the requirements?
- 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.
- The bond amounts above are for individual OTIs. For group OTIs, the bond amount will be up to $3,000,000. Also, each cluster shall:
- Notify the Commission and provide documentation of its desire to participate
- Provide a list that contains each member of the group, the corresponding surety bond, and that claims will be permitted for each
- Provide a copy of the financial responsibility coverage to the Commission
- Individuals under the same common trade name should furnish a surety bond separately.
- Federal military and civilian household goods requires different surety bonds
- An additional $21,000 should be added to the bond amount for Optional Rider for Additional NVOCC Financial Responsibility. These are the NVOCCs who have the intent to be included in the U.S.-China trade.
- In the case of cancellation, a 30-day notice is required.
The Office of Passenger Vessels and Information Processing (OPVIP) will be the one responsible for reviewing and processing the submitted surety bond.
How do I get this type of bond?
You can acquire this bond by going to a state-authorized surety bond company such as Surety Bond Authority. We can help you with the process and guide you through each requirement.
You can start by applying for the bond that you need today!
What are the OTI license requirements?
- Completed FMC-48 or the OTI Bond for Individuals or FMC-69 or the OTI Group Bond form
- Completed FMC-18 or the OTI License Application form
- Pay the necessary processing fee