FMC Revokes OTI Licenses for Three Entities (Due to Their Surety Losing Treasury Certification, Etc.)
The Federal Maritime Commission (FMC) has issued an order which revokes the ocean transportation intermediary (OTI) licenses of three entities as a result of their failure to replace their OTI surety bonds with a valid bond issued by a surety company currently certified by the Treasury Department.
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In addition, the FMC dismissed five entities from these proceedings because they compiled with its March 2006 order to show cause.
(In March 2006, the FMC had issued a show cause order which began proceedings to revoke the OTI licenses of these entities, as each had failed to replace their OTI surety bond with a valid bond issued by a surety company currently certified by the Treasury Department . (The Certificate of Authority issued to their surety, American Motorists Insurance Company, had been terminated by the Treasury Department.) See ITT's Online Archives or 03/15/06 news, 06031515, for BP summary of the FMC's order to show cause.)
FMC Revokes Three OTI Licenses, Dismisses Proceedings for Five Others
The FMC has ordered the following in connection with its investigation of certain entities' failure to comply with Section 19 of the Shipping Act of 1984:
Revocation of three OTI licenses. The FMC is revoking the OTI licenses of: (1) Cambell & Gardiner, Inc., (2) Independence Shipping Lines, Ltd., and (3) S & B International Freight Forwarders, Inc. for failure to comply with the FMC's order to show cause. These respondents failed to submit responses demonstrating why the FMC should not revoke their OTI licenses. FMC further orders these three entities to cease and desist from engaging in all OTI activities.
Proceedings dismissed for three entities with acceptable bonds and two entities who surrendered licenses. The FMC is also ordering that the following entities are dismissed as parties to this proceeding: (1) Interfreight, Inc., (2) Caribbean American Shipping Corp., (3) Ken Lehat & Associates, (4) Ocean Transportation Service, LLC, and (5) Ford International Forwarding, Inc.
The FMC states that Interfreight, Inc. provided proof of financial responsibility by submitting a bond issued by an acceptable surety to cover its freight forwarding services. In addition, Ken Lehat & Associates furnished evidence of an acceptable bond. The FMC also states that Caribbean American Shipping Corp. provided proof of financial responsibility by submitting a bond, issued by an acceptable surety, to cover its non-vessel operating common carrier (NVOCC) services.
The FMC explains that Ocean Transportation Service, LLC surrendered the NVOCC portion of its OTI license and Ford International Forwarding, Inc. surrendered its OTI license, effective April 17, 2006.
FMC Order (D/N 06-04, served 08/18/06) available at http://www.fmc.gov/UserFiles/pages/File/order.pdf