Customs, import and trade law > In-Bond Export Consolidators Warehouse (IBEC)

Hand in hand with Container Freight Stations comes the need for In-Bond Export Consolidators Warehouses.

Particularly in the Miami area, IBECs are needed in ever-growing numbers. Since the Port of Miami-Dade is an international hub for cargo coming into the United States, as well as onward to other countries, the cost-effectiveness of shipping to Miami, consolidating, and then shipping to the major cities of the world (as well as the United States) has resulted in an explosion of IBECs operating in the Miami-Dade area.

IBEC Applications

In-bond Export Consolidators Warehouses must be approved by federal authorities, and the applications can be cumbersome and complex. Fuerst Ittleman can assist applicants with this process, as well as their decisions on coordinating the IBEC with CFS applications, as well as perhaps that of a U.S. Customs Public Bonded Warehouse, and/or a Customs Bonded Customs Carrier.

Since 9/11, Customs scrutiny of “in-bond” goods has continued to increase despite the outcries of shippers that the added regulations cause unacceptable delays both during port arrival and thereafter, as well as confounding established manufacturing schedules. Added to the already complex Customs requirements placed upon IBECs, legal and business problems routinely arise.

How Fuerst Ittleman Can Help with IBEC Issues

Fuerst Ittleman is extremely experienced in issues pertaining to IBECs, having assisted clientele in the Port of Miami area, as well as other port locations throughout Florida and world-wide.

Fuerst Ittleman can not only help with the legal logistics of applying for an IBEC, the firm works with ongoing concerns in resolution of business matters, as well as negotiating with customs authorities on specific IBEC issues as they arise.

If you are interested in applying for a In-Bond Consolidators Warehouse anywhere in the United States, the Virgin Islands, or Puerto Rico, or if you would like more information regarding IBECs, generally, please feel free to contact us today.

Federal Maritime Commission Applications (FMC)

Since 1961, the Federal Maritime Commission has overseen compliance with U.S. trade laws as it applies to ocean-borne commerce. The FMC not only investigates violations of the law, it has the power to impose sanctions upon violators, including imposing sweeping and severe trade sanctions upon foreign governments as a whole (in tandem with the U.S. State Department).

For those involved in international trade services, their operations may be overseen through both U.S. Customs and separately through the Federal Maritime Commission. While U.S. Customs may be the more well-known federal agency dealing with international trade, the impact of the FMC upon import and export cannot be underestimated.

Fuerst Ittleman is well-versed in assisting clients with a variety of issues coming under Federal Maritime Commission purview, such as:

Filing of Agreements

Most agreements between ocean common carriers are required to be filed with the FMC. Any agreement that references such things as rates or other conditions of service; pooling of revenues; fixing of sailing schedules; sharing of vessel space; service contract matters; or any exclusive, preferential, cooperative working arrangement between carriers and marine terminal operators must be filed.

The FMC also requires that all pricing agreements between marine terminal operators, or between marine terminal operators and ocean common carriers, be filed with the Commission. Services contracts must also be filed with the FMC, in most instances.

OTC (Ocean Transportation Intermediary) Licensure

All individuals and entities providing OTC services must be licensed by the FMC if they are a resident of the United States, or if they are incorporated in the U.S. This is true for both Freight Forwarding OTC services, as well as NVOCC OTC services.

However, an OTC license from the FMC is not needed to move cargo by ship within U.S. waters (i.e., both the United States and its Territories). Similarly, an OTC license is not needed when forwarding shipments by air or ground transportation. (In both instances, other federal agencies may have requirements to be met, however.)

An OTC license cannot be shared. However, many operations have both NVOCC OTC licensure as well as simultaneous Freight Forwarding OTC licensure. Should they decide to discontinue one of the two operations, then proper FMC protocols must be followed. This includes obtaining a Letter of Voluntary Surrender.

Applying for OTC Licensure

Applying for an OTC license involves a standardized procedure, where FMC forms are completed to provide the agency with detailed information regarding the experience of the applicant, along with educational background and financial stability. Documentation must accompany the application (business license; driver’s license; articles of incorporation; etc.) as well as a set fee (currently $825.00). Foreign-based NVOCCs are allowed to obtain OTC licenses.

While the assistance of an attorney is not mandatory to complete and file an OTC application with the FMC, many individuals and entities prefer to use experienced counsel to insure a smooth and speedy licensing process. At Fuerst Ittleman, many clients have requested Fuerst Ittleman to complete the application process for them and others have asked that Fuerst Ittleman review the documentation for accuracy prior to its submission to the FMC.

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