How Nvoccs Differ From Freight Forwarders From A Professional Point Of View In China?

By Author: shuishui
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The difference between "NVOCC" and "freight forwarder" is as follows.
The difference between "NVOCC" and "freight forwarder" is as follows.
1. Freight forwarders have two identities: agent and owner, while NVOCCs have only one identity.
In practice, the NVOCC business has a variety of business entities, can be the company specializing in NVOCC business, can also be the business of the freight forwarding company, or other maritime auxiliary business companies, so in practice it is easy to cause deviation. Combined with the actual operation, on whether freight forwarders should obtain NVOCC qualification, the following points can be clarified.
(1) In accordance with the provisions of the International Shipping Regulations, only freight forwarding companies operating NVOCC business need to obtain NVOCC qualification.
(2) When an international liner company accepts a booking from a freight forwarding company, if the freight forwarding company represents the cargo owner, the liner company shall show the name of the real cargo owner directly in the shipper of the ocean bill of lading, at which time the ...
... international freight forwarding company is not required to obtain a NVOCC certificate.
(3) International shipping companies in accepting freight forwarding company booking, if the freight forwarding company does not represent the owner of the goods, but in his own name, requesting the name of the freight forwarding company in the shipper column of the bill of lading, the international liner company must confirm the freight forwarding company to obtain NVOCC qualification before accepting its booking.
Because at this time between the international freight forwarding company and the ship transport company is the relationship between the shipper and the carrier, then the international freight forwarding company at this time is actually the identity of the NVOCC.
2, the establishment of the two conditions and approval procedures are different.
The Rules for the Implementation of the Regulations Governing the Freight Forwarding Industry stipulate that international freight forwarding enterprises must obtain the qualification of enterprise legal person of the People's Republic of China according to law. The enterprise organization form is limited liability company or joint-stock company. The minimum registered capital is RMB 5 million if the business of international freight forwarding agency by sea is operated. The registered capital of an international freight forwarding enterprise shall be increased by RMB 500,000 for each branch engaged in international freight forwarding business, while the Rules stipulate that units with administrative monopoly functions are prohibited from applying for investment to operate international freight forwarding business. Carriers and other enterprises that may pose unfair competition to the international freight forwarding industry shall not apply to operate international freight forwarding business. As can be seen from the relevant regulations of the Ministry of Communications of China regarding the application and approval of NVOCCs, the Ministry of Communications has been authorised to accept registration of NVOCCs after adopting a system that lowers the threshold of entry[10]: a registration system is adopted without any approval, and the applicant submits an application, a photocopy of the business licence and a sample bill of lading to the Ministry of Communications; there are no regulations on the registered capital of NVOCCs, and the only prerequisite is that the applicant The only prerequisite is that the applicant is required to deposit a bond of $800,000 to be used to settle his debts and pay fines arising from his failure or improper performance of his obligations as a carrier. Article 7 of the Shipping Regulations states that to operate NVOCC business, a person shall register a bill of lading with the competent transport authority and deposit a bond of 800,000.
How to find the right freight agent in China?
You can try Googling the top ranking freight forwarders in China and clicking through to their websites to view the quotations.