81 FR 86771 - Application of Cargo Preference Requirements to the Federal Ship Financing Program
DEPARTMENT OF TRANSPORTATION
Maritime Administration Federal Register Volume 81, Issue 231 (December 1, 2016)
Maritime Administration
Federal Register Volume 81, Issue 231 (December 1, 2016)
| Page Range | 86771-86774 | |
| FR Document | 2016-28863 |
[Federal Register Volume 81, Number 231 (Thursday, December 1, 2016)] [Notices] [Pages 86771-86774] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-28863] ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Maritime Administration [Docket No. MARAD 2015-0049] Application of Cargo Preference Requirements to the Federal Ship Financing Program AGENCY: Maritime Administration (MARAD). ACTION: Final Policy Clarification. ----------------------------------------------------------------------- SUMMARY: On April 22, 2015, the Maritime Administration (MARAD) published a Notice of Proposed Policy Clarification (80 FR 22611) seeking comments on a proposed policy clarifying the application of the Cargo Preference Act of 1954 (CPA 1954), 46 U.S.C. 55305, to applications, commitments, and guarantees under MARAD's Federal Ship Financing Program (Title XI), 46 U.S.C. Chapter 537. This Notice finalizes MARAD's policy clarification. DATES: This policy is effective on the date of publication, including for all pending Title XI applications. FOR FURTHER INFORMATION CONTACT: Owen J. Doherty, Associate Administrator for Business and Finance Development, Maritime Administration, 1200 New Jersey Avenue SE., Washington, DC 20590, (202) 366-9595, [email protected]. SUPPLEMENTARY INFORMATION: MARAD received ten (10) public comments in response to its Notice of Proposed Policy Clarification. In addition, on July 9, 2015, MARAD held a meeting with interested stakeholders, a transcript of which was published on the public docket folder at www.regulations.gov under docket number MARAD-2015-0049. The public comments ranged from full support for the Proposed Policy Clarification as published to complete opposition to the application of the CPA 1954 to the Title XI program. Numerous comments focused on the application of the CPA 1954 to mortgage-period financing. Some commenters asserted that the application of the CPA 1954 to mortgage-period financing would result in such a severe administrative and cost burden that it would render compliance with the CPA 1954 impracticable and deter future Title XI applications. Commenters also asserted that the Proposed Policy Clarification was a significant deviation from MARAD's prior practice of not applying the CPA 1954 to mortgage-period financing. Relatedly, virtually all commenters were concerned about the timing for application of the CPA 1954, with [[Page 86772]] particular focus on mortgage-period applications, contending that cargo preference would add costs without any assurance of an application's approval. MARAD has revisited the text of the CPA 1954 and its regulations at 46 CFR 381.7 and determined that cargo preference will not be applied to mortgage-period financing. This decision required conscientious consideration of all public input and is focused on the project scope under Title XI mortgage-period financing and that of construction- period financing. MARAD bases its decision upon the statutory text, which provides in relevant part that the CPA 1954 applies when the U.S. Government ``provides financing in any way for . . . equipment, materials, or commodities . . . which may be transported on ocean vessels.'' 46 U.S.C. 55305(b). In mortgage-period financing, separate and distinct from construction-period financing, MARAD is only providing financing for the completed, delivered vessel. Financing is not provided for any actual vessel construction activities or vessel components prior to the completed vessel's delivery, which in turn are privately financed. It is further compelling that in admiralty, a vessel, once completed and delivered, is a distinct legal entity that is, for example, ``treated in other connections as an entity capable of entering into relations with others, of acting independently and of becoming responsible for her acts.'' Piedmont & George's Creek Coal Co. v. Seaboard Fisheries Co., 254 U.S. 1, 9 (1920). This position is also consistent with MARAD's existing regulations, applying the CPA 1954 to ``cargoes . . . which are generated by U.S. Government Grant, Guaranty, Loan and/or Advance of Funds Programs.'' 46 CFR 381.7. Thus, it is MARAD's conclusion that because no financing is provided for equipment or materials which may be transported on ocean vessels, the CPA 1954 is not applicable to mortgage-period financing. Consistent with the above analysis, MARAD notes that a narrow exception to the inapplicability of the CPA 1954 to mortgage-period financing may exist. Specifically, the CPA 1954 may apply if a vessel is financed with a mortgage-period guarantee and the completed vessel is to be delivered at a location other than the shipyard. For example, if MARAD provides a mortgage-period guarantee for a completed vessel and the shipyard places that vessel on a heavy lift ship for final delivery to the Title XI recipient, the ocean transportation for that final delivery may be subject to the CPA 1954. MARAD will review this exceptional circumstance on a case-by-case basis and may apply the contents of this Notice as appropriate. Separate from mortgage-period financing, and consistent with the project scope analysis described above, the CPA 1954 does apply to all cargoes under Title XI construction-period financing, without regard to the timing of the Title XI application or approval. In construction- period financing, when an application is approved, MARAD is providing financing based upon the ``Actual Cost'' of the vessel as defined by 46 CFR 298.2 and further described in 46 CFR 298.13(b). In providing construction-period financing, MARAD is therefore financing all discrete equipment and materials that will be incorporated into the vessel and included in the Actual Cost, regardless of when an application is submitted or approved. In this manner, equipment and materials purchased and transported prior to the approval and issuance of a Title XI guarantee but included in Actual Cost is akin to using Federal assistance to finance pre-award costs. See 2 CFR 200.458 (``Pre-award costs are those incurred prior to the effective date of the Federal award directly pursuant to the negotiation and in anticipation of the Federal award where such costs are necessary for efficient and timely performance of the scope of work. Such costs are allowable only to the extent that they would have been allowable if incurred after the date of the Federal award and only with the written approval of the Federal awarding agency.''). Therefore, all equipment and materials that are transported by ocean and included in the Actual Cost of a vessel built with Title XI construction-period financing will be included in determining compliance with the CPA 1954. It is further noted that the above analysis regarding construction- period financing will also generally apply to Title XI financing for vessel reconstruction or reconditioning. Therefore, absent evidence to the contrary for a particular project, the CPA 1954 is applicable in the same manner to cargoes for vessel reconstruction or reconditioning projects financed through a Title XI guarantee. Beyond the applicability to different types of financing, MARAD also received multiple comments asserting that the submission of bills of lading was overly burdensome. Bills of lading are the sole basis by which MARAD can assess what cargo has been transported and whether program participants have complied with the CPA 1954. The requirement to submit bills of lading under Federal acquisitions and Federal financing agreements is long established. See 48 CFR 52.247-64; 46 CFR 381.3; and 46 CFR 381.7. The requirement to submit bills of lading within thirty (30) days is consistent with MARAD's existing regulations and is routinely met by shippers across all industries, often with little expertise of marine transportation. Administrative requirements found in Section 2 of this Final Policy Clarification therefore remain unchanged. Commenters also expressed concern regarding the submission of transportation plans, specifically that there was a lack of clarity for what needs to be contained in a transportation plan. In response, MARAD has included example transportation plan contents below in Section 3 of this Final Policy Clarification. It is also noted that while a transportation plan is required to be submitted at the time of application, MARAD views transportation plans as cooperative documents that should be updated as construction progresses. This process ensures that all parties, including MARAD, the Title XI participant, and the shipyard have a continuing understanding of the participant's CPA 1954 compliance as the project evolves. A number of commenters also expressed concern regarding the process used to determine U.S.-flag vessel availability and the related issue of determining when an offered rate is fair and reasonable. The comments often incorrectly cited the cost differential between U.S.- flag and foreign-flag vessels. The statute unambiguously states that availability is based upon ``fair and reasonable rates for commercial vessels of the United States.'' 46 U.S.C. 55305 (emphasis added). See also Administration of Cargo Preference Act [50-50 Law: Hearing on Public Law 664 Before the H. Comm. on Merchant Marine and Fisheries, 83d Cong. 178 (1955) (``It may be noted at the outset that only rates `for United States-flag commercial vessel' are considered in determining a fair and reasonable rate, so that foreign-flag rates do not enter into the determination.''). The comments generally go beyond the scope of this policy clarification to the general administration of the CPA 1954; however, understanding that there are significant commercial concerns, MARAD has expanded Section 4 of this Final Policy Clarification to provide additional insight into the criteria that MARAD may consider in determining vessel availability and fair and reasonable rates. Furthermore, it is anticipated that coordination and regular dialogue between MARAD and [[Page 86773]] vessel reconstruction, reconditioning, or construction-period financing applicants, which typically submit applications early in the vessel construction, reconstruction, or reconditioning process, will alleviate many of the concerns expressed by the commenters. Finally, some commenters disagree with the potential remedies listed in Section 5 of the Notice of Proposed Policy Clarification and expressed doubt that MARAD possesses the requisite authority to impose such remedies. MARAD disagrees and affirms that it possesses the discretion to impose the remedies in Section 5. If MARAD chooses to impose civil penalties under 46 U.S.C. 55305(d) as a result of a violation of the CPA 1954 by a Title XI participant, MARAD would also follow applicable procedures to afford all protections under the Administrative Procedure Act. See 5 U.S.C. 554-558. Therefore, Section 5 is unchanged; however, MARAD remains of the view that early planning and close coordination by vessel reconstruction, reconditioning, or construction-period financing participants will ensure that no CPA 1954 violations will occur. Section 1: What is Cargo Preference? The CPA 1954 mandates that shippers use U.S.-flag vessels to transport a portion of Government-impelled, ocean borne cargoes. Through statutory amendments in 2008 to 46 U.S.C. 55305(b), the CPA 1954 was clarified to state that the statute applies whenever the U.S. Government provides financing in any way with Federal funds for the account of any person. MARAD, as the agency charged with implementing and overseeing compliance administration of the CPA 1954, previously determined that ``financing in any way'' includes Federal loan guarantee programs, such as Title XI. Section 2: What are the Cargo Preference requirements? There are both transportation and administrative requirements associated with the CPA 1954: Transportation: For vessel reconstruction, reconditioning, or construction-period financing, at least 50 percent of the gross tons of the equipment or materials which are transported by ocean and included in the Actual Cost of vessel in accordance with 46 CFR 298.13(b) must be transported on privately-owned commercial vessels of the United States, to the extent those vessels are available at fair and reasonable rates. To ensure a fair and reasonable participation of U.S.-flag vessels, MARAD's established definition of the undefined term ``gross ton'' means a revenue ton (metric ton or cubic meter of cargo, by whichever measure the number is greater). This greater number is the standard by which compliance with the CPA 1954 will be evaluated. Administrative: For each covered shipment, consistent with 46 CFR 381.3, within thirty (30) days of the foreign export loading, the shipper (Title XI participant or its representative) must submit a legible copy of a rated on-board ocean master bill of lading to MARAD. This requirement exists whether the particular shipment was transported aboard a U.S.-flag or a foreign-flag vessel to establish a correct denominator on which CPA 1954 compliance is calculated. The bills of lading must be submitted to the Office of Cargo and Commercial Sealift, Maritime Administration, 1200 New Jersey Avenue SE., Washington, DC 20590 or via email to [email protected]. The bills of lading or the transmittal cover must clearly state the Title XI project to which they apply and must contain the following information: (1) The name of the vessel carrying the cargo(s); (2) The carrying vessel's International Maritime Organization (IMO) number; (3) The carrying vessel's flag of registry; (4) The date of cargo loading; (5) The port of loading; (6) The port(s) of trans-shipment (if any); (7) The port of final destination; (8) A description of the cargo(s); (9) The gross weight of the cargo(s) in kilograms and the volume of the cargo(s) in cubic meters; and (10) The total ocean freight revenue in U.S. dollars. Section 3: To what cargoes does Cargo Preference apply? For vessel reconstruction, reconditioning, or construction-period financing, the cargo preference requirements apply to all foreign components that are transported by ocean and included in the ``Actual Cost'' of the project in accordance with 46 CFR 298.13(b). Consistent with the statutory mandate, given that MARAD is providing financing for all equipment included in Actual Cost, including equipment transported prior to approval, the total revenue tonnage of all foreign equipment transported by ocean will serve as the denominator from which the at- least-50-percent-U.S.-flag transportation calculation will be made. At the time of application, all vessel reconstruction, reconditioning, or construction-period financing applicants are required to submit a transportation plan for review by MARAD to ensure that sufficient planning has occurred to meet the CPA 1954 requirements. This requirement will be discussed with each applicant and potential applicant at the earliest possible time. A transportation plan generally contains a description of each shipment cargo including weight and volume, country of origin, date of shipment, the flag of the vessels that will carry the cargo, and, to the extent known, the vessel and/or carrier that will be engaged for future shipments. Ideally, the U.S.-flag portion is shipped first under a transportation plan to ensure compliance with the CPA 1954; however, a plan that does not conform to this principle may still be acceptable. Furthermore, understanding that schedules will change as the project develops, MARAD anticipates that the Title XI participant and the shipyard constructing the vessel will continuously engage with MARAD to update the transportation plan as necessary. By reviewing the shipping plan early in the application process, or prior to submission of any application if possible, MARAD can work with Title XI participants and their respective shipyards to help identify and work with them to mitigate challenges to CPA 1954 compliance. Section 4: What if an available U.S.-flag vessel cannot be found or the total ocean freight rate appears too expensive? Only MARAD can issue a determination that no U.S.-flag vessels are available at fair and reasonable rates. If a Title XI participant, through demonstrably diligent efforts, is unable to find U.S.-flag service, without MARAD's issuance of a determination of the non- availability of qualified U.S.-flag carriage, the participant's due diligence alone will not excuse that applicant from CPA 1954 requirements. Title XI participants must communicate with U.S.-flag carriers at the earliest possible time to ensure the greatest degree of coordination and to obtain the best freighted rates. In the event that a Title XI participant experiences difficulty obtaining U.S.-flag service, or if it can only find partial U.S.-flag service, the participant must contact MARAD without delay at [email protected] or (202) 366-4610, so as to provide MARAD with an undiminished opportunity to assist in locating U.S.-flag service. Ideally, MARAD will be able to locate available U.S.-flag service, for the Title XI participant's potential engagement to meet its U.S.-flag carriage requirement. Alternatively, if MARAD is unsuccessful in locating available U.S.-flag service, a determination of non-availability will be issued. With proper [[Page 86774]] planning, U.S.-flag service can generally be obtained at fair and reasonable rates. Early planning and coordination are the key factors to meeting cargo preference requirements in Title XI, as in all Federal programs. In evaluating whether U.S.-flag vessels are available at fair and reasonable rates, MARAD may consider, at its discretion: (1) U.S.-flag rates offered in response to the shipper's solicitation; (2) U.S.-flag commercial rates being offered on the same trade route under similar circumstances taking into account, as available, information obtained from interviews with U.S.-flag carriers, historic rates, published rates, and applicable index rates; (3) As available and applicable, guideline rates calculated under 46 CFR part 382; and (4) Whether the shipper has made a demonstrably diligent effort to obtain U.S.-flag service, including evidence of advanced planning and requests for proposals for ocean transportation issued by the shipper. Vessel availability is assessed in consideration of shipper's reasonable required laycan and delivery dates. Section 5: What if non-compliance with Cargo Preference requirements occurs? At MARAD's direction, as the administrator of the Title XI program, non-compliant parties may be denied a letter commitment or, consistent with 46 U.S.C. 55305(d)(2)(B), may be required to provide make-up cargoes for carriage aboard U.S.-flag vessels to offset the lost cargo carriage supporting work under the Title XI financing application. Where knowing and willful violations occur, consistent with 46 U.S.C. 55305(d)(2)(C), MARAD may issue a civil penalty of not more than $25,000 for each violation, with each day of a continuing violation following the date of shipment counting as a separate violation. Additionally, CPA 1954 requirements are incorporated into Title XI letter commitments; therefore, failure to properly adhere to cargo preference requirements could impact MARAD's ability to close on a Title XI guarantee because the recipient has not met its obligations under the letter commitment. However, with early planning and coordination with MARAD, no CPA 1954 violations need occur. Section 6: What is the purpose of Cargo Preference? The CPA 1954 provides cargo that helps to retain and encourage a privately-owned and operated U.S.-flag merchant fleet. The U.S.-flag fleet is a vital resource, providing essential sealift capability to globally project and sustain the U.S. Armed Forces or support other national emergencies, maintaining a cadre of skilled seafarers available in time of national emergencies, and helping to protect U.S. economic interests. The U.S. maritime industry also supports thousands of sea-going, shore-based, and secondary, associated jobs, supporting the Nation's economic growth. It is imperative that Federal programs, such as Title XI, and beneficiary Title XI applicants and shipyards, as members of the U.S. maritime industry, support this national priority through proper adherence to cargo preference requirements. Therefore, while the use of U.S.-flag vessels to carry 50 percent of the gross tons of ocean borne cargoes is the statutory minimum, MARAD, as the agency charged with administering both Title XI and the CPA 1954, encourages the use of U.S.-flag vessels for greater than the minimum whenever possible. Authority: 46 U.S.C. 55305; 46 U.S.C. Ch. 537. By Order of the Maritime Administrator. T. Mitchell Hudson, Jr., Secretary, Maritime Administration. [FR Doc. 2016-28863 Filed 11-30-16; 8:45 am] BILLING CODE 4910-81-P
![Federal Register / Vol. 81, No. 231 / Thursday, December 1, 2016 / Notices 86771
notice (DOT/ALL–14 FDMS), which can SUMMARY: The FAA is considering a DEPARTMENT OF TRANSPORTATION
be reviewed at http://www.dot.gov/ request from the Laconia Airport
privacy. Authority in Gilford, NH, to dispose of Maritime Administration
Docket: Background documents or 2.96 acres of airport land that is not [Docket No. MARAD 2015–0049]
comments received may be read at required for aviation purposes at
http://www.regulations.gov at any time. Laconia Municipal Airport. Application of Cargo Preference
Follow the online instructions for The subject parcel has been identified Requirements to the Federal Ship
accessing the docket or go to the Docket as property no longer needed for Financing Program
Operations in Room W12–140 of the aviation use by the Laconia Airport
West Building Ground Floor at 1200 AGENCY: Maritime Administration
Authority (LAA). The property, Lot 13, (MARAD).
New Jersey Avenue SE., Washington, located along the east side of Lily Pond
DC, between 9 a.m. and 5 p.m., Monday ACTION: Final Policy Clarification.
Road (NH Route 11C) in the Town of
through Friday, except Federal holidays. Gilford, is located on the northerly side SUMMARY: On April 22, 2015, the
FOR FURTHER INFORMATION CONTACT: For of the airport’s existing business park. Maritime Administration (MARAD)
technical questions concerning this The intended use of the property is for published a Notice of Proposed Policy
action, contact Nia Daniels, (202)267– boat storage, which is a compatible use Clarification (80 FR 22611) seeking
7626, 800 Independence Avenue SW., adjacent to the airport. Given the comments on a proposed policy
Washington, DC 20591. location of the parcel, the disposal of clarifying the application of the Cargo
This notice is published pursuant to this property will have no effect on Preference Act of 1954 (CPA 1954), 46
14 CFR 11.85. aviation land nor future development U.S.C. 55305, to applications,
Issued in Washington, DC, on November
opportunities for the airport. The commitments, and guarantees under
23, 2016. proceeds of the disposal will be placed MARAD’s Federal Ship Financing
Lirio Liu,
in the airport’s account and to be used Program (Title XI), 46 U.S.C. Chapter
for the operation and maintenance of 537. This Notice finalizes MARAD’s
Director, Office of Rulemaking.
the airport. Appropriate avigation policy clarification.
Petition for Exemption easements will be placed on the
DATES: This policy is effective on the
property to ensure compatibility with
Docket No.: FAA–2016–8884. date of publication, including for all
the airport and the airport’s airspace.
Petitioner: Western Oklahoma State pending Title XI applications.
College. DATES: Comments must be received on FOR FURTHER INFORMATION CONTACT:
Section of 14 CFR Affected: 61.156. or before January 3, 2017. Owen J. Doherty, Associate
Description of Relief Sought: Western ADDRESSES: You may send comments Administrator for Business and Finance
Oklahoma State College (WOSC), a part using any of the following methods: Development, Maritime Administration,
141 pilot school, seeks an exemption for 1200 New Jersey Avenue SE.,
a portion of the Airline Transport Pilot • Federal eRulemaking Portal: Go to Washington, DC 20590, (202) 366–9595,
Certification Training Program (ATP http://www.regulations.gov, and follow owen.doherty@dot.gov.
CTP) ground training requirements and the instructions on providing
SUPPLEMENTARY INFORMATION: MARAD
all of the flight simulation training comments.
received ten (10) public comments in
device requirements set forth in • Fax: 202–493–2251. response to its Notice of Proposed
§ 61.156. WOSC’s proposed course • Mail: U.S. Department of Policy Clarification. In addition, on July
would only be available for United Transportation, Docket Operations, M– 9, 2015, MARAD held a meeting with
States Air Force C–17A Globemaster III 30, West Building Ground Floor, Room interested stakeholders, a transcript of
qualified military transport pilots and W 12–140, 1200 New Jersey Avenue SE., which was published on the public
would contain only those ATP CTP Washington, DC 20590. docket folder at www.regulations.gov
ground training subject areas with under docket number MARAD–2015–
differences specific to civilian air carrier • Hand Delivery: Deliver to mail
address above between 9 a.m. and 5 0049. The public comments ranged from
operations. A military pilot who full support for the Proposed Policy
completes this program would receive a p.m., Monday through Friday, except
Federal holidays. Clarification as published to complete
graduation certificate and be eligible to opposition to the application of the CPA
take the multiengine airplane ATP Interested persons may inspect the 1954 to the Title XI program.
knowledge test in accordance with request and supporting documents by Numerous comments focused on the
§ 61.35(a)(2). contacting the FAA at the address listed application of the CPA 1954 to
[FR Doc. 2016–28885 Filed 11–30–16; 8:45 am] under FOR FURTHER INFORMATION mortgage-period financing. Some
CONTACT. commenters asserted that the
BILLING CODE 4910–13–P
FOR FURTHER INFORMATION CONTACT: Mr. application of the CPA 1954 to
Jorge E. Panteli, Compliance and Land mortgage-period financing would result
DEPARTMENT OF TRANSPORTATION in such a severe administrative and cost
Use Specialist, Federal Aviation
Administration New England Region burden that it would render compliance
Federal Aviation Administration with the CPA 1954 impracticable and
Airports Division, 1200 District Avenue,
Burlington, Massachusetts 01803. deter future Title XI applications.
Notice of Opportunity for Public
Commenters also asserted that the
jstallworth on DSK7TPTVN1PROD with NOTICES
Comment on Disposal of 2.96 Acres of Telephone: 781–238–7618.
Proposed Policy Clarification was a
Airport Land at Laconia Municipal Issued in Burlington, Massachusetts, on significant deviation from MARAD’s
Airport in Gilford, NH November 17, 2016. prior practice of not applying the CPA
Gail B. Lattrell, 1954 to mortgage-period financing.
AGENCY: Federal Aviation
Administration (FAA), DOT. Manager, ANE–630. Relatedly, virtually all commenters were
[FR Doc. 2016–28544 Filed 11–30–16; 8:45 am] concerned about the timing for
ACTION: Request for public comments.
BILLING CODE 4910–13–P application of the CPA 1954, with
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![86774 Federal Register / Vol. 81, No. 231 / Thursday, December 1, 2016 / Notices
planning, U.S.-flag service can generally the U.S. Armed Forces or support other send comments electronically via the
be obtained at fair and reasonable rates. national emergencies, maintaining a Internet at http://www.regulations.gov.
Early planning and coordination are the cadre of skilled seafarers available in All comments will become part of this
key factors to meeting cargo preference time of national emergencies, and docket and will be available for
requirements in Title XI, as in all helping to protect U.S. economic inspection and copying at the above
Federal programs. interests. The U.S. maritime industry address between 10 a.m. and 5 p.m.,
In evaluating whether U.S.-flag also supports thousands of sea-going, E.T., Monday through Friday, except
vessels are available at fair and shore-based, and secondary, associated federal holidays. An electronic version
reasonable rates, MARAD may consider, jobs, supporting the Nation’s economic of this document and all documents
at its discretion: (1) U.S.-flag rates growth. It is imperative that Federal entered into this docket is available on
offered in response to the shipper’s programs, such as Title XI, and the World Wide Web at http://
solicitation; (2) U.S.-flag commercial beneficiary Title XI applicants and www.regulations.gov.
rates being offered on the same trade shipyards, as members of the U.S. FOR FURTHER INFORMATION CONTACT:
route under similar circumstances maritime industry, support this national
taking into account, as available, Bianca Carr, U.S. Department of
priority through proper adherence to Transportation, Maritime
information obtained from interviews cargo preference requirements.
with U.S.-flag carriers, historic rates, Administration, 1200 New Jersey
Therefore, while the use of U.S.-flag Avenue SE., Room W23–453,
published rates, and applicable index vessels to carry 50 percent of the gross
rates; (3) As available and applicable, Washington, DC 20590. Telephone 202–
tons of ocean borne cargoes is the 366–9309, Email Bianca.carr@dot.gov.
guideline rates calculated under 46 CFR statutory minimum, MARAD, as the
part 382; and (4) Whether the shipper SUPPLEMENTARY INFORMATION: As
agency charged with administering both
has made a demonstrably diligent effort Title XI and the CPA 1954, encourages described by the applicant the intended
to obtain U.S.-flag service, including the use of U.S.-flag vessels for greater service of the vessel CRACKER JACK is:
evidence of advanced planning and Intended Commercial Use of Vessel:
than the minimum whenever possible.
requests for proposals for ocean ‘‘Charter fishing 6 passengers locally’’.
transportation issued by the shipper. Authority: 46 U.S.C. 55305; 46 U.S.C. Ch. Geographic Region: ‘‘Florida, Georgia,
537. Alabama, North Carolina’’.
Vessel availability is assessed in
consideration of shipper’s reasonable By Order of the Maritime Administrator. The complete application is given in
required laycan and delivery dates. T. Mitchell Hudson, Jr., DOT docket MARAD–2016–0117 at
Secretary, Maritime Administration. http://www.regulations.gov. Interested
Section 5: What if non-compliance with parties may comment on the effect this
[FR Doc. 2016–28863 Filed 11–30–16; 8:45 am]
Cargo Preference requirements occurs? action may have on U.S. vessel builders
BILLING CODE 4910–81–P
At MARAD’s direction, as the or businesses in the U.S. that use U.S.-
administrator of the Title XI program, flag vessels. If MARAD determines, in
non-compliant parties may be denied a DEPARTMENT OF TRANSPORTATION accordance with 46 U.S.C. 12121 and
letter commitment or, consistent with MARAD’s regulations at 46 CFR part
46 U.S.C. 55305(d)(2)(B), may be Maritime Administration 388, that the issuance of the waiver will
required to provide make-up cargoes for have an unduly adverse effect on a U.S.-
[Docket No. MARAD–2016 0117]
carriage aboard U.S.-flag vessels to offset vessel builder or a business that uses
the lost cargo carriage supporting work Requested Administrative Waiver of U.S.-flag vessels in that business, a
under the Title XI financing application. the Coastwise Trade Laws: Vessel waiver will not be granted. Comments
Where knowing and willful violations CRACKER JACK; Invitation for Public should refer to the docket number of
occur, consistent with 46 U.S.C. Comments this notice and the vessel name in order
55305(d)(2)(C), MARAD may issue a for MARAD to properly consider the
civil penalty of not more than $25,000 AGENCY: Maritime Administration, comments. Comments should also state
for each violation, with each day of a Department of Transportation. the commenter’s interest in the waiver
continuing violation following the date ACTION: Notice. application, and address the waiver
of shipment counting as a separate criteria given in § 388.4 of MARAD’s
violation. Additionally, CPA 1954 SUMMARY: The Secretary of
regulations at 46 CFR part 388.
requirements are incorporated into Title Transportation, as represented by the
XI letter commitments; therefore, failure Maritime Administration (MARAD), is Privacy Act
to properly adhere to cargo preference authorized to grant waivers of the U.S.- Anyone is able to search the
requirements could impact MARAD’s build requirement of the coastwise laws electronic form of all comments
ability to close on a Title XI guarantee under certain circumstances. A request received into any of our dockets by the
because the recipient has not met its for such a waiver has been received by name of the individual submitting the
obligations under the letter MARAD. The vessel, and a brief comment (or signing the comment, if
commitment. However, with early description of the proposed service, is submitted on behalf of an association,
planning and coordination with listed below. business, labor union, etc.). You may
MARAD, no CPA 1954 violations need DATES: Submit comments on or before review DOT’s complete Privacy Act
occur. January 3, 2017. Statement in the Federal Register
ADDRESSES: Comments should refer to published on April 11, 2000 (Volume
Section 6: What is the purpose of Cargo docket number MARAD–2016–0117.
jstallworth on DSK7TPTVN1PROD with NOTICES
65, Number 70; Pages 19477–78).
Preference? Written comments may be submitted by
By Order of the Maritime Administrator.
The CPA 1954 provides cargo that hand or by mail to the Docket Clerk,
helps to retain and encourage a U.S. Department of Transportation, Dated: November 10, 2016.
privately-owned and operated U.S.-flag Docket Operations, M–30, West T. Mitchell Hudson, Jr.,
merchant fleet. The U.S.-flag fleet is a Building Ground Floor, Room W12–140, Secretary, Maritime Administration.
vital resource, providing essential sealift 1200 New Jersey Avenue SE., [FR Doc. 2016–28212 Filed 11–30–16; 8:45 am]
capability to globally project and sustain Washington, DC 20590. You may also BILLING CODE 4910–81–P
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Document Created: 2018-02-14 09:00:40
Document Modified: 2018-02-14 09:00:40
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Final Policy Clarification. | |
| Dates | This policy is effective on the date of publication, including for all pending Title XI applications. | |
| Contact | Owen J. Doherty, Associate Administrator for Business and Finance Development, Maritime Administration, 1200 New Jersey Avenue SE., Washington, DC 20590, (202) 366-9595, [email protected] | |
| FR Citation | 81 FR 86771 |
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