FMC Penalties Increase Once Again, Now at $14,988 Per Occurrence

New FMC Penalties Effective January 15, 2025

Miami, FL, USA -- Whether you knowingly or unknowingly violate FMC regulations, you will be fined, Atlantic Pacific Tariffs, Inc. cautions clients as the U.S. Federal Maritime Commission (FMC) once again increased the maximum penalties for statutory violations.

Effective January 15, 2025, the maximum penalties for knowing and willful violations of the Shipping Act will rise to $74,943 from $73,045.

For violations that are not knowing and willful, the penalties will increase to $14,988 from $14,608.

Each day of a continuing violation constitutes a separate violation under the statute. These adjustments are in accordance with the Federal Civil Penalties Inflation Adjustment Act of 2015 and are tied to the rate of inflation.

AP Tariffs Chairman Pierre Larenas strongly urges clients, mostly non-vessel operating common carriers (NVOCC), to take advantage of the firm's free consultation, training and mock audit.

"We can properly provide you the necessary training to conduct your business in compliance with the FMC Rules. This will help you run an error-free operation and prevent FMC fines," Mr. Larenas asserts. 

Stay FMC Compliant - Please Click Here to schedule an online meeting at your earliest convenience. 

AP Tariffs' expertise in tariff publication and compliance management have helped many NVOCCs navigate these adjustments smoothly and ensure adherence to FMC regulations.

The complete list of penalties is published in the Federal Register.

READ: 10 Essential FMC Compliance Tips for NVOCCs and Freight Forwarders

AP Tariffs Sponsors "Fine Wine" Event at WCAworld Conference in Dubai

Atlantic Pacific Tariffs, Inc., is thrilled to announce its sponsorship of the exclusive "Fine Wine" event at the upcoming WCAworld conference in Dubai.

This prestigious event, by invitation only, promises to be a highlight of the conference, bringing together industry leaders and professionals for an evening of networking and celebration.

The Fine Wine event will take place on the evening of Feb. 27, 2025, at the Dubai World Trade Center. It is also co-sponsored by Chubb.

AP Tariffs is one of the leading tariff publishers in the United States, dedicated to providing comprehensive and accurate tariff information. Its expertise extends to helping companies navigate the complexities of registering with the Federal Maritime Commission (FMC), ensuring compliance and facilitating smooth operations in the global shipping industry. 

Join AP Tariffs in raising a glass to the continued success and collaboration within the shipping industry. 

"We look forward to seeing you at the "Fine Wine" event in Dubai!" said Mauricio Larenas, President of AP Tariffs.

Grab this opportunity to talk to the AP Tariffs Team in person to discuss how we help non-US companies register with the U.S. FMC.  

If you can't make it in Dubai, sign up for a FREE consultation today! Click here - 30-Minute Free Consultation with FMC Compliance Experts.

AP Tariffs has guided clients through U.S. FMC regulations since 1997, offering FMC license acquisition, FMC registration, NVOCC tariff publication, and compliance management. We provide cost-effective solutions, complimentary compliance consulting, and advanced automation technology to reduce labor costs and enhance compliance for Ocean Carriers and NVOCCs.

10 Essential FMC Compliance Tips for NVOCCs and Freight Forwarders

Navigating compliance with the Federal Maritime Commission (FMC) can be a complex task for Non-Vessel-Operating Common Carriers (NVOCCs) and Freight Forwarders. With the right strategies, you can avoid costly penalties and audits. 

Below are 10 essential compliance tips to help you stay audit-ready, penalty-free, and ahead of industry standards.

1. Maintain a Valid FMC Bond

An active FMC bond is critical for all NVOCCs and Ocean Freight Forwarders. The specific bond requirements depend on your registration type:

• U.S.-based NVOCC License: $75,000

• Ocean Freight Forwarder License (OFF): $50,000

• FMC-Registered Foreign NVOCC: $150,000

Keeping your bond current is non-negotiable—any lapse can result in the automatic suspension or revocation of your FMC license. Regularly monitor your bond status to ensure timely renewal and avoid operational interruptions.

2. Keep Detailed, Organized Records of Key Documents for Audits

FMC audits demand comprehensive documentation to verify compliance. You must have these essential documents organized and readily accessible:

• Dated & Rated Ocean Carrier Master Bills of Lading (all pages, final version)

• VOCC Service Contract Number

• Dated & Rated NVOCC House Bills of Lading (final version for each house bill issued)

• Freight Invoices

• Booking Instructions

• Arrival Notices

• Customer Billing Invoices

• Credit & Debit Reports (issued at the time of shipment)

• All Relevant Documents and Communications

Ensuring these records are complete and easily retrievable makes the audit process smoother and demonstrates a high standard of compliance.

3. Use Tariff Rate Filings (TLIs) and Negotiated Rate Arrangements (NRAs) for Accurate Rate Management

Under FMC regulations, NVOCCs are required to publish their rates in their FMC tariff or manage Negotiated Rate Arrangements (NRAs) for client-specific agreements. Tariff Line Items (TLIs)—specific rates filed within your FMC tariff—allow consistent rate documentation for compliance, while NRAs provide flexibility for customized rates. Using these tools effectively helps meet compliance standards efficiently.

4. Utilize an FMC-Compliant Tariff Platform for Record-Keeping

FMC-compliant platforms, like AP Tariffs' FMC Tariff Platform, simplify recordkeeping for rate filings, NRAs, and tariffs. They provide you a secure and searchable repository for essential documents. An organized platform like this can reduce administrative tasks and streamline compliance management.

5. Regularly Update Your Tariff Rules

FMC tariff rules and surcharges should be reviewed and updated periodically to reflect the latest FMC regulatory changes and current market conditions. Annual updates to tariff rules ensure compliance, prevent discrepancies, and protect your business from penalties.

6. Leverage Digital Filing Solutions and APIs for Efficient Compliance Management

Using digital solutions with API integrations for tariff filings and rate management streamlines compliance efforts. AP Tariffs’ platform, for example, offers both a secure filing system and API integrations, allowing users to manage filings, updates, and records efficiently.

7. Conduct Regular Compliance Audits Internally or with a Compliance Provider

Routine internal audits or third-party compliance reviews can help identify and correct issues early on. Conducting these audits at least once per year is recommended. AP Tariffs provides various levels of compliance reviews, including complimentary reviews for tariff clients, to help ensure your records, filings, and rates meet FMC standards.

8. Stay Updated on FMC Rule Changes with FMC Watch

FMC regulations are regularly updated, so it’s essential to stay informed. Signing up for AP Tariffs’ FMC Watch can keep you up-to-date on regulatory changes, ensuring that your compliance practices remain current.

9. Designate a Compliance Manager

Appointing a compliance lead, such as your Qualified Individual (QI), an in-house legal team member, or a third-party compliance service, is essential for managing compliance responsibilities effectively. AP Tariffs offers compliance support for its tariff clients, including two hours of free FMC consulting each month, to assist with ongoing compliance needs.

10. Respond Promptly to FMC and Customer Inquiries

Prompt responses to FMC inquiries are crucial to prevent escalation, and timely responses to customer questions demonstrate a commitment to regulatory standards. Addressing these requests promptly also strengthens client relationships and reinforces your business’s commitment to compliance.

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FMC compliance doesn’t have to be overwhelming. By integrating these strategies and leveraging resources like AP Tariffs’ compliance services, your business can avoid penalties, stay audit-ready, and maintain seamless operations.

For personalized guidance on FMC compliance requirements, schedule a free consultation with AP Tariffs to see how we can support your business. Book your FREE meeting here.