Brokers Say No to Putting Money into Chinese Banks

Jan. 12, 2004
A law enacted by the Peoples Republic of China (PRC) in 2001 requires NVOCCs engaged in trade with China to register with its Ministry of Communications

A law enacted by the People’s Republic of China (PRC) in 2001 requires 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 U.S. maritime Administration (MARAD), the National Customs Brokers & Forwarding Association of America, Inc. (NCBFAA) has had its needs answered by the PRC in that NVOCCs may not have to make such deposits.

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

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