At NNPC Marine Insurance, we are receiving an increasing number of questions from our members regarding the additional certificates required for sailing to the United States (US). We have notice that there is sometimes confusion about these certificates and would therefore like to inform you once again about the most important certificates and bonds.
1. Certificate of Financial Responsibility (COFR) and COFR Guaranty
The COFR serves as proof that a vessel has sufficient insurance to cover the consequences of an oil- or other types of water pollution. The certificate is issued by the U.S. Coast Guard (USCG) but only after a COFR Guaranty has been obtained.
A COFR is mandatory for:
- Vessels of at least 100 GT, and/or
- Vessels that transport oil within the American Exclusive Economic Zone (EEZ).
The COFR stays valid for three years, while the accompanying Guaranty has to be renewed every year.
To avoid delays, we recommend to start the application process for both the COFR and the Guaranty well in advance, at least 30 days before arrival in the US.
2. Californian COFR
California has stricter environmental regulations than the federal government. As a result vessels calling at ports in California require a separate state-specific COFR. Applications for this Californian COFR must be submitted at least ten days before reaching a port in California. Please also note that te Californian COFR stays valid for two years, instead of the three years validity federal COFR.
3. International Carrier Bond (ICB)
The ICB provides certainty for the U.S. Customs and Border Protection (CBP) that potential fines, taxes and other charges arising from port entry will be paid. Therefore, an ICB is mandatory before entering any US port for loading or discharging cargo.
There are two types of ICB:
- A Single Entry Bond: For a one time port call, or
- A Continuous Bond: Valid for one year.
It is important to note that the costs for a continuous and single entry bond are similar.
You can also choose the bond amount. In most cases a bond for $ 100.000 is sufficient; however, vessels calling at the port of Miami require a higher amount of $ 150.000.
You can arrange the COFRs, Guaranty and bonds yourself. However, we are happy to assist. For arranging the COFRs, Guaranty and ICB we have good partnerships with both SIGCO and Shoreline. For further questions or support, please contact our Underwriting department at underwriting@nnpc-marine.com.
Note: This article only covers the additional certificates required for sailing to the US. It does not address operational requirements, such as having a Response Plan and the necessary affiliation with an Oil Spill Response Organization (OSRO)
