What Do Freight Forwarders Need To Know About Surety Bond Requirements?


Customs Bonds CA

Anyone who is or want to become licensed Ocean Transportation Intermediary (OTI) in the US is required to obtain the OTI license. The requirements for this type of license by Federal Maritime Commission (FMC) include:
  1.          Proving eligibility
  2.          Submitting the FMC-18 application form
  3.          Submitting a valid OTI bond
  4.          Paying the required application fee
An OTI is either an Ocean Freight Forwarder (OFFs) or a Non-Vessel Operating Common Carrier (NVOCC). So if you wish to operate as a licensed OFF or NVO or both, you must have to fulfill the above requirements of FMC.

OTI Bonds are just like other Customs bonds CA that guarantee that the merchandise being transported meets laws and regulations.

In order to obtain a license, an individual needs to submit the proof financial responsibilities in the form of OTI Bonds NY to FMC. All the US-based and licensed non-US-based NVOCCs are required to post a $75,000 bond while for freight forwarders the bond amount is a minimum of $50,000. An additional amount of $10,000 is added in each bond for every unincorporated US branch office offering freight forwarding or NVOCC services.

Whatever the actual amount of bond is, OTIs do not have to pay the total amount rather they just have to pay a certain bond premium in order to get bonded. The bond premium is usually between 1% and 5% of the total bond amount for applicants who retain good credit history.
Individual OTIs can post OTI Bonds using FMC-48 form and group OTIs can post a bond using the FMC-69 form. A surety company or insurance professionals like CBI Customs Bonds & Insurance INC can also help you in calculating the exact bond amount as well as getting the bond at the most competitive rates.

Contact: CBI Customs Bonds & Insurance Inc.
Call: 843-249-1994

Location: 4207 Sea Mountain Hwy, Little River, SC 29566, USA

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