NVOCC register created and minimum standards set for the
Issuance of NVOCC Bills of Lading
FMC defines NVOCC – Non-Vessel-Operating Common Carrier as:
- A common carrier that holds itself out to the public to provide ocean transportation, issues its own house bill of lading or equivalent document and does not operate the vessels by which ocean transportation is provided
- A shipper in its relationship with the vessel-operating common carrier involved in the movement of cargo
As there is no global regulatory body to register, control or regulate NVOCCs around the world, it is difficult to see how many NVOCCs are currently in operation around the world or where they are based..
- It is widely believed that the US market has the largest number of NVOCC operators in the world.. USA may also be one of the few countries where an NVOCC needs to be registered prior to offering services..
- NVOCC registration is also required in China as per certain publications which say that the operator must be registered with Ministry of Transportation..
- Not just in terms of their registration, but there doesn’t seem to be a clear definition on whether the NVOCC operator needs to register their bill of lading or not..
- Similarly, the requirement or need for registration of an NVOCC in other major jurisdictions is clear as mud..
What is the function of an NVOCC..??
An NVOCC is often termed as a “carrier to shippers” and “shipper to carriers”.. What does this mean..??
At the most basic level, an NVOCC enters into volume-based ocean freight arrangements with the various shipping lines operating across the various trade lanes.. An NVOCC then creates their own tariff based on which they sell space on these liner services to their various clients..
Depending on certain jurisdictions and markets, NVOCC’s activities may include but not restricted to below :
Ok, now to the subject of this post..
The ICC International Maritime Bureau (IMB) estimates from its work in verifying Bills of Lading that over 95% of all improperly issued Bills of Lading are issued by – yeah you guessed it – Non-Vessel Operating Common Carriers (NVOCCs)..
The IMB identified that there is a prevalence of issuance of incorrect NVOCC bills of lading by the NVOCC which is then presented to banks and other stakeholders in the trading and finance chain, with the aim of defrauding the trade finance system, possibly for the purposes of multiple financing, money laundering, etc..
The IMB has developed a business solution to mitigate the effects of this problem..
The IMB has established a register for Non Vessel Operating Common Carriers (the Register) who agree to abide by the IMB Code of Conduct for the proper issuance of NVOCC Bills of Lading..
The purpose of the Register is to improve anti-fraud standards and provide a mechanism to recognise participating NVOCCs who adhere to a minimum standard of anti-fraud measures in their operations..
Banks who are members of the IMB can now check whether the NVOCC named on the bill of lading presented to them has signed up to the IMB Code of Conduct..
This provides some sort of assurance to the banks and customers that the NVOCC bills of lading issued by these NVOCCs meet acceptable standards.. There are of course consequences for NVOCCs who fail to comply..
TT Club noted that in terms of banking scrutiny, The International Chamber of Commerce’s Commercial Crime Services division has a primary function of protecting the integrity of international trade by seeking out fraud and malpractice and providing reports based on this activity to its members..
Commercial banks conduct thousands of investigations each year in relation to fraudulent bills of lading and these investigations are undertaken by the IMB..
As part of the investigation process, IMB conducts due diligence on all trade documents, including bills of lading, and seeks independent third-party verification to provide an extra level of confidence in transactions..
Safeguard against shipping and freight fraudThis supports banks in relation to their compliance procedures to prevent fraud, money laundering and sanctions breaches, especially since banks are not obligated or have no resources to verify if the goods have been shipped on board..
Suspect bills of lading are those which have false content including the wrong ship, dates, description of cargoes, container numbers or parties..
Perpetrators present such bills of lading to banks to facilitate fraudulent activity including money laundering, fraud, illegal capital flight and to by-pass sanctions..
Shipping and Freight Resource fully supports this initiative of the IMB which sets out the standards for the issuance of NVOCC bills of lading, and also the fact that there will now be a register where NVOCCs can be tracked..
What is your opinion on this initiative..??
This is hugely beneficial to the shipping and freight industry and will surely reduce potential exposures to fraudulent activity throughout the supply chain..
Hopefully, in due course, this will become a regulatory requirement for NVOCCs and maybe even Freight Forwarders, much like a customs broker or clearing agent licence.
PS: As a point of interest, only the ICC and IMB seems to be expanding NVOCC as Non-Vessel Owning Common Carrier whereas everyone else including FMC, World Shipping Council, TT Club seems to expanding NVOCC as Non-Vessel Operating Common Carrier..
Although it could mean both Owning or Operating, would be interesting to hear the rationale.
I am text block. Click edit button to change this text. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo. I am text block.
Good post. I study something more difficult on different blogs everyday. It’s going to always be stimulating to learn content material from other writers and observe a little bit one thing from their store. I’d prefer to use some with the content material on my blog whether you don’t mind. Natually I’ll give you a link in your web blog. Thanks for sharing.
Fantastic piece of writing here1
I really love this article.
Thanks for a Interesting item; I enjoyed it very much. Regards Sang Magistrale
Thanks for sharing the information. I found the information very useful. That’s a awesome story you posted. I will come back to scan some more.
Magnificent beat ! Can I be your apprentice? Just kidding!
Gram tu od jakichs pieciu miesiecy, to chyba moge cos napisac. Wpadlem tam przez znajomego z pracy, bo znudzilo mi sie z sensownym wyborem gier. Lobby jest naprawde spore — jakies 3000 pozycji, choc i tak grywam glownie na kilku. Pragmatic, NetEnt oraz Betsoft maja tam najwiecej swojego, no i klasyki typu Gates of Olympus, Sweet Bonanza i Book of Dead.
Na start w Fiery Play daja doplata 100% do 1500 zl razem z 100 free spinow, wydawanych po trzy dni. Obrot to x35, co jest w miare uczciwe, ale zerknijcie na limity — limit stawki podczas obrotu jest ograniczony i mozna to przegapic. Widzialem tez no deposit na 25 darmowych obrotow, bodajze na jakis czas. Aktualne promki mozecie sprawdzic na fieryplay jak was to interesuje.
Zakladanie konta to bylo doslownie chwila, najnizsza wplata wynosi 50 zl. Wplacam BLIKiem albo karta, cashouty robilem pare razy — zwykle w granicach doby, jeden raz przeciagnelo sie do dwoch dni, przez KYC. Bitcoin tez obsluguja i podobno tam idzie najszybciej.
Najwiecej czasu spedzam w dziale live — Evolution robi tam stoly, sa polskojezyczni krupierzy przy ruletce, czego sie nie spodziewalem. Crazy Time oczywiscie jest, chociaz to bardziej cyrk niz granie. Stoly blackjacka sa w kilkunastu wariantach.
Nie ma osobnej aplikacji, ale strona na telefonie i szczerze — nie brakuje mi jej, choc na LTE w tramwaju live czasem przycina. Licencja jest curacaowska, wiec bez cudow — na razie nie mam sie do czego przyczepic. Obsluga w Fiery Play odpowiada po polsku i to zywy czlowiek, nie bot. Najbardziej denerwuje mnie to te powiadomienia mailowe — ale da sie to wylaczyc.
Ogrywam sie tu od trzech miesiecy z hakiem, wiec mam jakies zdanie. Trafilem tam przez znajomego z pracy, bez wiekszych oczekiwan. Lobby w Vox Casino jest naprawde spora — Pragmatic Play, Microgaming, Play’n GO i Big Time Gaming to podstawa, wiec Gates of Olympus czy Book of Dead odpalisz bez szukania.
Glownie zostaje w dziale z krupierami. Evolution ciagnie tam praktycznie wszystko, wiec ruletka, blackjack i Crazy Time chodza plynnie. Na Crazy Time potrafie posiedziec za dlugo, ale to bardziej show niz rozsadna gra. Czego brakuje, to stolow po polsku, co dla czesci osob z Polski bedzie problemem.
Oferta na start w Vox Casino to 100% do jakichs 1500 zl plus 200 obrotow, przy czym free spiny dostajesz porcjami, nie hurtem. Warunek obrotu x40 — standard, nic strasznego, ale i nie zadna sensacja. Minimalna wplata to 40 zl, zakladanie konta poszlo ekspresowo. Czy jakis kod jeszcze dziala, weryfikuje przez kod promocyjny vox casino, bo w mailingu potrafia wyslac nieaktualne. Jak zapomnisz kodu, to bonusu nie dolicza wstecz — sprawdzilem na wlasnej skorze.
Wyplacanie nie jest jakos dramatycznie wolne. Skrill i Neteller laduje na koncie w kilka godzin, przelew na Visa/Mastercard potrafi sie ciagnac dwa-trzy dni robocze. Crypto tez jest, BTC i kilka innych, to chyba najszybszy kanal. KYC w Vox Casino zajal mi dwa dni — dowod plus rachunek za prad, ale to kazdy licencjonowany operator robi.
Co mnie realnie wkurza — apki mobilnej nadal nie zrobili. Na telefonie wszystko sie skaluje poprawnie, jednak filtry gier na komorce sa tragiczne. Czat w Vox Casino odpowiada po polsku, odzew w kilka minut, natomiast noca jakosc odpowiedzi spada. Grac tam da sie spokojnie, byle z glowa i limitem na koncie.
Write more stories, more chapters.
I wrote down your blog in my bookmark. I hope that it somehow did not fall and continues to be a great place for reading texts.