Is it true that NVOCCs must follow the U.S. COGSA rules regarding bills of lading?

Prepare for the Certified Export Specialist Test. Use flashcards and multiple-choice questions, each with hints and explanations. Get ready to excel!

The assertion that Non-Vessel Operating Common Carriers (NVOCCs) must adhere to the U.S. Carriage of Goods by Sea Act (COGSA) regulations with respect to bills of lading is indeed correct. Under COGSA, when an NVOCC issues a bill of lading, it effectively becomes a carrier, taking on responsibilities and liabilities similar to those of a vessel-operating common carrier.

This is vital because COGSA establishes the legal framework governing the rights and responsibilities of parties involved in the maritime shipping process, particularly regarding the transport of goods over water. By being subject to these rules, NVOCCs must ensure that their contracts and bills of lading comply with the standards set forth in COGSA, which includes provisions on liability limits, claims processing, and the conditions under which goods can be transported.

The other choices imply circumstances that alter the requirement for NVOCCs to comply with COGSA, which is not accurate. NVOCCs are universally bound by COGSA when transporting goods that fall under its jurisdiction, regardless of the scope of their operations, whether domestic, international, or limited to specific types of transport.

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