Florida Company Pays $165K, Implements Self-Financed Monitoring to Resolve FMC Allegations | Customs & International Trade Law Blog

Authors:Jennifer Diaz, President, Diaz Commerce LawVin DiCianni, President, Affiliated Displays

Double Ace Cargo, a non-vessel-operating frequent service (NVOCC) primarily based in Florida, has paid $165,000 in civil penalties and can self-finance impartial monitoring of its enterprise practices underneath two separate compromise agreements it reached with the Federal Maritime Fee (FMC).

Below the primary settlement, reached in June 2023, Double Ace paid $115,000 in civil penalties to resolve allegations that it violated the regulation (46 U.S.C. § 41104(a)(11)) by transporting shipments on behalf of entities that weren’t licensed NVOCCs, didn’t have bonds, and didn’t publish tariffs. 46 U.S.C. § 41104(a)(11) governs frequent carriers and prohibits them from knowingly and willfully settle for cargo from or transport cargo for the account of a non-vessel-operating frequent service that doesn’t have a tariff, or an ocean transportation middleman that doesn’t have a bond, insurance coverage, or different surety.

In reviewing the June 2023 compromise, the FMC ordered the Bureau of Enforcement, Investigations, and Compliance (BEIC) to conduct a second investigation to re-examine the conduct of Double Ace and to make sure the corporate was complying with all obligations. The investigation resulted in a second compromise settlement the place the corporate paid $50,000 in civil penalties for transporting shipments on behalf of entities that weren’t licensed NVOCCs, didn’t have bonds, and didn’t publish tariffs, in violation of 46 U.S.C. § 41104(a)(11).

As a part of the second compromise settlement, Double Ace agreed to pay for impartial monitoring for 12 months. The monitor is offering month-to-month stories on to the BEIC Director. Requiring an organization to pay for ongoing monitoring is new to earlier compromise agreements. The association permits BEIC to proceed assessing compliance whereas preserving company assets.

Impartial monitoring is an enforcement mechanism utilized by a lot of federal, state and worldwide businesses. The monitor oversees the probationary phrases positioned on an organization, during which the corporate should make required enhancements in fulfilling the phrases of a settlement settlement, deferred prosecution settlement, civil settlements or administrative agreements. The displays stories are submitted to the company and may embody suggestions for enhancements, whereas the corporate being monitored is usually accountable to pay for the displays companies.  The advantages of impartial monitoring embody permitting the corporate to stay in enterprise, deal with areas recognized as problematic, demonstrating these enhancements to the federal government company via actual time stories from the impartial monitor. The broader advantages embody serving to an organization keep compliant with regulatory necessities, retaining a piece drive, permitting prospects to proceed to obtain companies and for the federal government, continued oversight to guard the general public.

Diaz Commerce Regulation can help with FMC pre-compliance applications that keep away from and spot violations earlier than they happen. Get in contact at information@diaztradelaw.com or 305-456-3830.

Affiliated Displays gives impartial monitoring, compliance danger and cultural assessments throughout industries and authorities businesses.  Vin DiCianni, President of Affiliated Displays might be reached at vdicianni@affiliatedmonitors.com.