What is the Optional Rider for Additional NVOCC Financial Responsibility (“Optional Rider”)?
The Optional Rider (located on the FMC Forms Page) is a rider that NVOCCs serving the U.S.-China Trade may attach to their NVOCC bond to meet the NVOCC licensing requirements of the People’s Republic of China (“PRC”). The rider is a convenience offered by the Commission to U.S. NVOCCs as a result of a bilateral maritime agreement between the United States and the PRC. The agreement’s Memorandum of Consultations provides that the PRC will not require U.S. NVOCCs to make a cash deposit in a Chinese bank, as long as the NVOCC: (1) is a legal person registered by U.S. authorities; (2) obtains an OTI License from the Commission; and (3) provides evidence of financial responsibility in the total amount of $96,000. The rider adds an additional $21,000 to the $75,000 bond already maintained by the NVOCC as a condition of licensing.
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