OCEAN SHIPPING REFORM ACT DUTY & DEMURRAGE BILLING PRACTICES
The Federal Maritime Commission (FMC) oversees the implementation and enforcement of the newly enacted Ocean Shipping Reform Act (OSRA). Duty and Demurrage billing practices outlined in the act require Vessel-Operating Common Carriers (VOCCs) to provide transparency in invoicing and shoulder the burden of proof in invoice disputes. FMC established an interim complaint process for submissions of carrier charge disputes against VOCCs that may not be in compliance with OSRA. Nearly half of the 95 complaints submitted since OSRA took effect in July were ineligible for processing because they involve charges made prior to OSRA’s enactment date.
INTERIM PROCEDURES FOR SUBMITTING DUTY & DEMURRAGE “CHARGE COMPLAINTS”
- Identify the common carrier
- Identify the specific alleged violations of 46 U.S.C §§ 41102 and/or 41104(a)
- Obtain and submit supporting documentation such as:
- Invoices
- Bill of Lading Numbers
- Evidence of whether the charge(s) have been paid
- Confirm that the disputed charge was incurred on or after June 16, 2022
- Submit all relevant documents in one email (if possible) to [email protected]
FEDERAL MARITIME COMMISSION PREPARES PROPOSED DUTY & DEMURRAGE BILLING REQUIREMENTS
Both VOCCs and shippers have contacted the FMC requesting informal explanations of the complaint process. In response, the FMC is preparing proposed Duty and Demurrage Regulations to streamline the complaint process. All parties are required to follow FMC’s Interim Charge Complaints Procedures until the proposed regulations take effect. The FMC is expected to publish a Notice of Proposed Rulemaking (NPRM) for revised demurrage and detention billing requirements in October.
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