Brokers just say no to Chinese banks

Brokers just say no to Chinese banks

U.S. customs brokers and forwarders are asking the Federal Maritime Commission (FMC) (www.fmc.gov) to help them avoid putting cash into Chinese banks. A law enacted by the People's Republic of China (PRC) in 2001 requires non-vessel operating common carriers (NVOCCs) engaged in trade with China to register with its Ministry of Communications and provide evidence of financial responsibility.

Called the Regulations on International Maritime Transportation (RIMT), the rule calls for NVOCCs to go beyond obtaining a bond and actually depositing money in a PRC bank. The deposit is to be $96,000 plus $24,000 per branch office in the PRC.

With support from the FMC and the U.S. Maritime Administration (MARAD), the National Customs Brokers & Forwarding Association of America Inc. (NCBFAA) (www.ncbfaa.org) has had its needs answered by the PRC — NVOCCs no longer have to make such deposits.

To put all concerns to rest, NCBFAA is asking the FMC to permit licensed NVOCCs to increase base bonds from $75,000 to $96,000. LT

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February, 2004

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