[Federal Register Volume 59, Number 4 (Thursday, January 6, 1994)]
[Proposed Rules]
[Pages 725-726]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-265]


[[Page Unknown]]

[Federal Register: January 6, 1994]


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DEPARTMENT OF TRANSPORTATION

Coast Guard

46 CFR Part 67

[CGD 93-063]

 

Vessel Rebuild Standards

AGENCY: Coast Guard, DOT.

ACTION: Notice of meeting.

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SUMMARY: The Coast Guard is considering whether to undertake rulemaking 
to develop standards for vessel rebuild determinations. In order to 
help it determine whether rulemaking is needed and the scope of the 
issues involved, the Coast Guard conducted a public meeting on November 
16, 1993. At the meeting, attendees discussed problems encountered 
under existing procedures and possible solutions, and whether use of a 
negotiated rulemaking would be appropriate. The meeting attendees 
requested that the Coast Guard conduct a second meeting to further 
discuss the issues. This notice announces the date, time, and place of 
the second meeting.

DATES: 1. The meeting will be held on February 15, 1994, beginning at 9 
a.m. and concluding at 3 p.m. or earlier if discussion is concluded.
    2. All comments should be received by the Coast Guard on or before 
January 31, 1994.

ADDRESSES: 1. The meeting will be held in room 4400, DOT Headquarters 
(Nassif Building), 400 Seventh Street, SW., Washington, DC 20590.
    2. All written material should be submitted to the Coast Guard at: 
Vessel Documentation and Tonnage Survey Branch, room 1312, 2100 Second 
Street, SW., Washington, DC 20593-0001.

FOR FURTHER INFORMATION CONTACT:
Ms. Laura Burley, Vessel Documentation and Tonnage Survey Branch at 
(202) 267-1492.

SUPPLEMENTARY INFORMATION: Under section 27 of the Merchant Marine Act, 
1920 (46 U.S.C. app. 883), a vessel entitled to engage in the coastwise 
trade by virtue of having been built in the United States which is 
later rebuilt outside the United States, loses its eligibility to 
engage in the coastwise trade. Under 46 U.S.C. 12106, a vessel not 
eligible for the coastwise trade cannot receive a Great Lakes 
endorsement on its Certificate of Documentation. In addition, under 46 
U.S.C. 12108, a fishing vessel which has been rebuilt outside the 
United States and which does not qualify for the rebuild savings 
provision of the Commercial Fishing Industry Vessel Anti-Reflagging Act 
of 1987, is not eligible for a fishery endorsement on its Certificate 
of Documentation.
    Effective January 1, 1994, the Coast Guard's regulatory standard 
for rebuild determinations will be found in 46 CFR Sec. 67.177. (See 
final rule published in the Federal Register issue of Monday, November 
15, 1993, page 60256.) In accordance with that standard, a vessel is 
rebuilt when ``any considerable part of its hull or superstructure is 
built upon or is substantially altered.'' A determination that a vessel 
has been rebuilt, if the rebuilding was done outside the U.S., results 
in a permanent loss of the eligibility of the vessel to engage in the 
restricted trades, with a commensurate loss in value. At the present 
time none of the problematic terms contained in the regulatory standard 
are defined. As a result, the Coast Guard frequently receives requests 
for advisory opinions that certain work to be performed on a vessel 
does not constitute a rebuilding. In support of a request for a rebuild 
determination, the submitter will generally enclose extensive 
documentation addressing the character and scope of the work to be 
performed including plans, drawings, contracts, work orders, and 
materials lists. Then the submitter will attempt to show that the work 
will not build upon or ``substantially'' alter ``any considerable 
part'' of the vessel's hull or superstructure. Often, the submitter 
will make comparisons between the before and after area of the hull and 
superstructure; the weight and area of steel plate to be replaced or 
added; or the comparative cost of the planned work to the value of the 
vessel. Unfortunately, the vessel representative sometimes does not 
submit any documentation until after the work is performed only to have 
the Coast Guard determine that the vessel has been rebuilt, with the 
disastrous consequence of loss of trading entitlements. In other cases, 
the work actually done on the vessel differs from or exceeds the 
planned work, with possible adverse effects on the final determination.
    The Coast Guard is considering initiating rulemaking to develop 
standards for determining when work on a vessel constitutes a 
rebuilding and to define the terms involved in rebuild determinations. 
However, to assist it to determine the scope of the issues involved in 
the project and to receive suggested definitions and standards for 
consideration, the Coast Guard conducted a public meeting before 
proceeding with the rulemaking process. At the meeting held on November 
16, 1993, the attendees requested time to consider the information and 
ideas shared at the meeting and the opportunity to submit written 
materials to the Coast Guard. In addition, the attendees requested that 
the Coast Guard schedule a second meeting to further discuss the issues 
involved, including whether the use of negotiated rulemaking would be 
appropriate. The Coast Guard agreed.
    In order to have sufficient time to review written submissions 
prior to the meeting, all materials should be received by the Coast 
Guard on or before January 31, 1994. Attendees are encouraged to share 
written submissions with other attendees. An attendance list with 
addresses for this purpose may be obtained by contacting the person 
identified in FOR FURTHER INFORMATION CONTACT in this notice.
    The meeting is open to the public and will begin at 9 a.m. on 
February 15, 1994, at: DOT Headquarters (Nassif Building), room 4400, 
400 Seventh Street, SW., Washington, DC 20590.

    Dated: December 29, 1993.
R.C. North,
Captain, U.S. Coast Guard, Acting Chief, Office of Marine Safety, 
Security and Environmental Protection.
[FR Doc. 94-265 Filed 1-5-94; 8:45 am]
BILLING CODE 4910-14-M