Compliance Issues

  • U.S. Federal Maritime Commission (FMC) answers IAM Member questions on Ocean Transportation Intermediary (OTI) Licensing

    The FMC’s Office of Consumer Affairs & Dispute Resolution Services (“CADRS”) receives numerous inquiries from ocean transportation intermediaries (“OTIs”) and the shipping public regarding OTI licensing requirements and nuances every year. By way of background, ocean transportation intermediaries offering services in the international trade of the United States must be FMC licensed or registered and bonded. The Commission offers two types of licenses: 1. Non-Vessel Operating Common Carrier (“NVOCC”) with a U.S. office; and 2. Freight Forwarder (“FF”). Under current licensing requirements, NVOCCs must have a $75,000 bond. FF’s must maintain a $50,000 bond. In addition, NVOCCs without a U.S. office may register with the FMC and must maintain a $150,000 bond. IAM recently provided CADRS with a list of questions posed by its members. Upon consultation with the Bureau of Certification and Licensing and the Bureau of Enforcement, these are the answers to the questions.
  • U.S. Department of Labor Background on Revised Overtime Pay Requirements

    IAM is providing these revised overtime pay requirements as guidance only. We encourage your company to confer with qualified counsel prior to implementing pay schedules and employee classification under the new rules. Beginning December 1, 2016, the Department of Labor will require employers to follow revised overtime pay and eligibility rules for exempt employees. Currently, exempt administrative, professional and other employees earning more than $26,660 a year are not eligible for overtime pay when working more than 40 hours per week. The new rule increases the salary threshold for exempt employees to $47,476 per year ($913 per week), and is expected to impact at least 4.2 million workers as currently classified. Plainly stated, any salaried worker who earns less than $47,476 will be eligible for overtime pay under the new rule.
  • Mandatory Container Regulation to Take Effect in July 2016

    Container weight verification for shipping will become legally binding on July 1, 2016. The purpose of the new regulation is to better secure the entire container supply chain by lessening the number of accidents caused by incorrectly weighed and misdeclared containers. Both the vessel and terminal operators will be required to use verified container weights in vessel stowage plans. If containers do not have verified weights, the vessel operator and marine terminal operators will be prohibited from loading the packed container and it will not be shipped.
  • European Import Procedures Set To Change

    Do you typically route shipments for European destinations through the UK because of their more relaxed customs regulations? Well, that is all set to change on May 1, 2016 when shipments may have to be cleared in the destination country where customs regulations can be more onerous leading to higher costs and transit times.