46 CFR 532 - NVOCC Negotiated Rate Arrangements

Section 16 of the Shipping Act of 1984, 46 U.S.C. § 40103, authorizes the Federal Maritime Commission (“Commission”) to exempt by order or regulation “any class of agreements between persons subject to this [Act] or any specified activity of those persons from any requirement of this [Act] if the Commission finds that the exemption will not result in substantial reduction in competition or be detrimental to commerce. The Commission may attach conditions to any exemption and may, by order, revoke an exemption.” The Commission added 46 CFR 532 to exempt non-vessel-operating common carriers (NVOCCs) from the more stringent tariff rate publication requirements of the Shipping Act of 1984 and related provisions of the Commission’s regulations to permit them to enter into negotiated rate arrangements (NRAs) with shippers.76 FR 11351 (March 2, 2011). The Commission subsequently extended the tariff rate publication exemption contained in 46 CFR part 532 to foreign based unlicensed NVOCCs as well. 78 FR 42886 (July 10, 2013). The exemption is conditioned upon the NVOCC including a prominent notice invoking the exemption in its electronically published rules tariff and indicating their intention to the Commission. In addition, NVOCCs must maintain original NRAs and associated records for 5 years in a format easily produced to the Commission and furnish those records promptly upon request from the Commission. An NVOCC invoking the exemption must: Include its rates in a tariff open to public inspection (46 CFR 532.3(a)(1); Comply with 46 USC 40501(d) and (e) (46 CFR 532.3(b) and (c)); Comply with 46 USC 40503 (46 CFR 532.3(d); Adhere to the prohibitions in 46 USC 41104(a)(2)(A) (46 CFR 532.3(e); Include its rates in a tariff open for public inspection in an automated tariff system (46 CFR 532.3(f); Comply with 46 CFR 520.4(a)(4), 520.4(f), 520.6(e), 520.7(c) and (d), 520.8(a), 520.12, and 520.14 (46 CFR 523..3(g); Ensure their NRA meets the requirements of 46 CFR 532.5; Indicate their intention to the Commission and the public to invoke the exemption by a prominent notice in its rules tariff (46 CFR 532.6); Maintain original NRAs in a readily accessible and retrievable manner for 5 years from the completion date of performance of the NRA (46 CFR 532.7; and Promptly respond to requests by the Commission for those records (46 CFR 532.7).

The latest form for 46 CFR 532 - NVOCC Negotiated Rate Arrangements expires 2029-02-28 and can be found here.

Modification of Tariff Invoking Exemption (combination of tariff rates and NRAs)

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