Applying for a License
Read the rules and regulations. Before applying for a license, you should familiarize yourself with the rules and regulations that govern OTIs. In particular, you should read section 19 of the Shipping Act of 1984 and federal regulation 46 C.F.R. Part 515. You can find this information on the Federal Maritime Commission’s website at www.fmc.gov.
Appoint a qualifying individual. Both OFFs and NVOCCs need to appoint a qualifying individual. The qualifying individual must meet the following requirements: Have at least three years of demonstrable OTI experience. Be an officer of the corporation, a partner in a partnership, or a sole proprietor. Must have gained experience in the U.S., if you are U.S.-based. If you are not U.S.-based, then the experience may have been gained in the U.S.
Apply online. You have the option of completing your application online. Visit the automated application, available at the FMC website. You will have to create a username and password. To open a new account, click on the “Request new account” link and provide the following information: username password (at least eight characters long with one special character, such as #, $, etc.) first and last name email company name (optional) address phone number
Get a paper application instead. A paper application (FMC-18) is available on the FMC website. You can download it and fill it out. You may also request a paper application by calling (202) 523-5843 or by writing to the Federal Maritime Commission, Bureau of Certification and Licensing, 800 North Capitol Street N.W., Washington, DC 20573-0001. If you get your paper application online, make sure you get the form that expires in 2019. There is an older form floating around the Internet which expired in 2010. You can find the expiration date on the first page of the document.
Complete the application. You must type your information into the application form. Handwritten answers are not acceptable. If an item doesn’t apply, then type “N/A.” If you need more room for an answer, then photocopy the page and continue adding information. The form will ask for the following information: your company’s name, including trade names your principal place of business and contact information your business form (sole proprietorship, partnership, corporation, etc.) your Taxpayer Identification Number (TIN) or Employer Identification number (EIN) proof of your legal name, such as a copy of your Articles of Incorporation or Partnership Agreement information about any prior licenses description of your current activities criminal background information on your partners, officers, directors, or stockholders employment history of your qualifying individual criminal background information on your qualifying individual three unrelated references for the qualifying individual information on the owners of your company information on your U.S. branches
Establish a presence in the United States. If you are a foreign NVOCC, then you will need to establish presence in the United States before you can get a license. For example, you could establish an unincorporated branch office in the U.S.
Pay the license fee. The fee for an electronic application is $250.00. The fee for a paper application is $1055. You can pay your fee using one of two methods: Pay by check. It will be converted into an electronic funds transfer. Make the check out to “Federal Maritime Commission.” Pay electronically. You can use credit/debit or Automated Clearing House (ACH), in which the money is debited from your bank account. You can pay using Pay.gov.
Mail the application. You can send the completed application, including any check, to the Federal Maritime Commission, Bureau of Certification and Licensing, 800 North Capitol Street N.W., Washington, D.C. 20573-0001.
Contact the FMC with questions. If you need help, then contact the Federal Maritime Commission at (202) 523-5843. Someone is available during normal working hours (8:30 am to 5:00 pm EST). To send an email, contact [email protected].
Wait to hear a response. A decision should be made within 60 days of receiving the application. The commission will review your submission and contact the references for the qualifying individual. If your application is incomplete, then it will be returned to you within a week. After receiving approval, you will then have to submit proof of your financial responsibility.
Gathering Proof of Financial Responsibility
Get a surety bond (U.S.-based license). A surety bond ensures performance of a contract. If the OTI fails, then the bond company pays out the face value of the bond to the injured party. Once you get a bond, you will need to fill out Form FMC-48. If you have a U.S.-based license, then you will need a bond in the following amounts: $50,000 for an OFF license $75,000 for an NVOCC license
Submit proof of financial responsibility (not U.S.-based). If you are not based in the U.S., then you will need to provide other proof of financial responsibility. You have several options. For example: You can get a surety bond for $75,000. You could get insurance. You should read 46 CFR Part 515 Subpart C for information about the requirements of your insurance policy. You should submit proof of your insurance on Form FMC-67. Proof of a guaranty, submitted on Form FMC-68.
Show financial responsibility, if unlicensed. If you are foreign-based, you might decide not to get licensed. For example, you could still contract with a licensed OTI to transport inside the United States waters. In this situation, you must still prove financial responsibility. You must prove financial responsibility in the amount of $150,000.
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