There are two types of bonds required for AMS filing; 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.   If NVOCC’s are members of FIATA (International Federation of Freight Forwarders Associations) Avalon’s Chicago office can underwrite the bond at a preferred rate.  Hopefully, if any NVOCC is already doing business with the USA, they would already hold the FMC (OTI) bond.

 

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.