FMC (OTI) and C3 Bonds
There are two types of bonds required for AMS filing; FMC Bond and C3 Bond.
the FMC bond which for a foreign NVOCC is required to be in the amount of $150,000. If the NVOCC has a US agent they could be covered under the agents bond which is in the amount of $75,000 and an extra $10,000 for each additional office. Coverage for this bond can either be fully collateralized and pending on other factors such as if the NVOCC has E & O coverage and good financial statements the cost of this bond would be approximately $12.50 per $1000 of coverage or $2000 to $2200 per year which includes a processing fee of $250 to $500.
Likely NVOCC’s would only need coverage under the International Carriers Bond or C3 bond. This bond is much easier to obtain with a processing time of approximately 1 to 2 days. The amount of coverage needed is $50,000 which again can be fully collateralized and if the company’s financial statements are sound and the NVOCC has E & O coverage the cost of carrying this bond should be approximately $1000 per year.
For either of the two bonds above you can partially collateralize the amount and pay a fee for the outstanding amount. The determinant of the fee would be based on the company’s financial statements.« Back to Glossary Index