NVOCC Service Agreement (NSA) Filing Procedures and format  
       
 
The NSA format should be customized to include the NVOCC’s full legal name, home office address, FMC organization, tariff numbers, and the name and title of the person who signed its NSA registration documents. To utilize this format the following actions will be necessary before this format can be used for an official NSA filed with the FMC:

a. NSA Number and ET Number:
Each NSA must include a unique number of no more than 9 characters. For example: ABC05001.

b. Carrier Authorized Official (Signatory): The name, title, and email address of the Authorized Official who may sign NSAs on behalf of the NVOCC should be entered on the template. This will default to the company representative who signed form FMC-78. This can be changed if needed. Any officer of the NVOCC may sign the NSA. Other representatives or managers authorized by the officers of the NVOCC may also sign on behalf of the NVOCC.

c. Shipper Name & Address: The full legal name of the Shipper must be entered on the NSA form; abbreviations or trade names must not be used.

d. Shipper Authorized Official (Signatory): The name and title of the Authorized Official who signs the NSA for and on behalf of the Shipper must be entered here. An email address is also recommended in order to quickly accept NSA amendments via electronic signature. Any officer of the Shipper can sign the NSA. Other managers or representatives authorized by the Shipper’s officers may also sign on behalf of the Shipper. A signature is required.

e. Shipper Status And Certification And Affiliates: Complete this section to indicate if the shipper is a cargo owner or consignee, NVOCC, or a shippers’ association. The shipper must not be an ocean freight forwarder. If the shipper is an NVOCC, they must certify that it is registered as such with the FMC, and has a tariff published governing the trade covered by the contract. As the NSA Carrier, your company also has a responsibility to verify this information. The best way to do this is to visit www.fmc.gov and confirm that the NVOCC in question is listed as an active OTI/NVOCC.

f. Appendix A: Appendix A of the NSA format provides details of the origins and destinations (ports or inland points), the commodities, the minimum quantity, the duration (effective & expiry dates), as well as the rates and assessorial charges of the NSA that apply. These must not be vague or ambiguous. The same standards applied by FMC for tariff filing apply here. Abbreviations can only be used if these are clearly defined in NSA, or in the NVOCC’s governing tariff. Please note, the effective date of the NSA cannot be prior to its filing date, and cargo may not move under NSA rates prior to FMC filing. The date(s) the NSA is signed can be its effective date, or earlier. The expiration date must be a fixed date. The NSA is still valid on its expiration date, and does not expire until 12:00am the following day. Prior to its expiration an NSA may be amended to change its expiry date. After an NSA expires it may not be amended or used for cargo movements. Assessorial Charges means any and all surcharges, handling fees, documentation fees, and terminal charges that apply in addition to the ocean freight rate for transportation from the origins to the destinations named in the NSA. NSA rates will be subject to all charges, surcharges and arbitraries/ additionals published in the NVOCC’s governing tariff, except those that are specifically noted. For example, if the governing tariff includes a documentation fee, but the NSA rates include this fee, the NSA must note: Exception: Not Subject to Documentation Fee (Tariff Rule No. xxx)

g. Appendix B: Appendix B of the NSA format is optional. It is used only if the NSA shipper needs to provide details of its affiliate entities / companies. Affiliate means two or more entities which are under common ownership or control by reason of being parent and subsidiary or entities associated with, under common control with, or otherwise related to each other through common stock ownership or common directors or officers.

h. Liquidated Damages: Term 7 of the NSA provides for liquidated damages (also called short-shipment penalties) that will apply if the Shipper fails to tender the Minimum Quantity Commitment specified in the NSA prior to its expiration. The amount of the penalty and basis must be inserted here, or appropriately referenced in the Carrier’s FMC tariff NSA rule. If the NSA provides for refunds paid to the shipper after a minimum volume requirement is satisfied the liquidated damages term may simply read “Not Applicable.” This is also true if the NSA provides for rates that are only accessible to the shipper after a minimum volume requirement has been satisfied. These are all the key parts of NSA that must be entered in the format to satisfy FMC regulations. 		 
       
 

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