Open to Public Comment: Federal Maritime Commission Proposed Duty & Demurrage Billing

2024-03-13T19:23:28+00:00October 10th, 2022|Customs & Compliance, Freight Talk, Import, Shipping News|
FEDERAL MARITIME COMMISSION NOTICE OF PROPOSED RULEMAKING

Green Worldwide previously reported on the Federal Maritime Commission’s (FMC) intention to propose new detention and demurrage rules as part of the Ocean Shipping Reform Act (OSRA). The FMC recently announced a Notice of Proposed Rulemaking (NPRM) for these new rules as a response to the OSRA. If adopted, the proposed ruling will require VOCCs, NVOCCs, and MTOs to issue bills for demurrage or detention only to parties that they have contracted with, to clearly define the nature of the charges, and to issue invoices within 30 days after the charges cease accrual, with a 30-day dispute period in which charges may be disputed.

The four recommendations in this NPRM include:

  • Adopting a list of minimum information that common carriers must include in demurrage or detention invoices 46 U.S.C. 41104(d)(2)
  • Adding to the above-referenced list additional information that must be included in or with a demurrage or detention invoice
  • Defining prohibited practices by clarifying which parties may be billed for demurrage or detention charges
  • Establishing billing practices that billing parties must follow when invoicing for demurrage or detention charges
OPEN FOR PUBLIC COMMENT

The FMC is using Regulations.gov to receive filed comments on this NPRM. The Public has 60-days to submit comments to the Commission. Interested parties may submit comments using docket number FMC-2022-0066.

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