[Federal Register Volume 61, Number 214 (Monday, November 4, 1996)]
[Rules and Regulations]
[Pages 56632-56639]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-28082]


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DEPARTMENT OF TRANSPORTATION

Coast Guard

46 CFR Part 14

[CGD 94-004]
RIN 2115-AE72


Electronic Records of Shipping Articles and Certificates of 
Discharge

AGENCY: Coast Guard, DOT.

ACTION: Final rule.

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[[Page 56633]]

SUMMARY: Consistent with the President's Regulatory Reinvention 
Initiative, the Coast Guard is revising the way that information on the 
engagement (shipment) and discharge of merchant mariners is maintained 
and submitted. The Coast Guard is also making editorial and other minor 
changes throughout its governing rules. The revision is due to 
statutory amendments directing, in effect, that ship-operating 
companies (shipping companies) maintain shipping articles and 
certificates of discharge, and that they be able to submit the 
information, electronically, to the Coast Guard. The rule should reduce 
approximately 70 percent of the ship-operating companies burden of 
preparing articles and certificates, and should reduce proportionately 
the number of personnel manually entering data and manually filing 
documents for the Coast Guard.

EFFECTIVE DATE: January 3, 1997.

ADDRESSES: Unless otherwise indicated, documents referred to in this 
preamble are available for inspection or copying at the office of the 
Executive Secretary, Marine Safety Council (G-LRA/3406) [CGD 94-004], 
U.S. Coast Guard Headquarters, 2100 Second Street SW., room 3406, 
Washington, DC 20593-0001, between 9:30 a.m. and 2 p.m., Monday through 
Friday, except Federal holidays. The telephone number is (202) 267-
1477.

FOR FURTHER INFORMATION CONTACT: Mrs. Justine Bunnell, Marine Personnel 
Division (NMC-4A), U.S. Coast Guard National Maritime Center, (703) 
235-1951.

SUPPLEMENTARY INFORMATION:

Regulatory History

    On March 28, 1996, the Coast Guard published a notice of proposed 
rulemaking entitled Electronic Records of Shipping Articles and 
Certificates of Discharge in Federal Register (61 FR 13796). The Coast 
Guard received 12 letters commenting on the proposal. No public meeting 
was requested, and none was held.

Background and Purpose

    In 1937, the Coast Guard became custodian of the program for 
protection of merchant mariners (``mariners''). To ensure that mariners 
are employed of their own will, that they are properly paid for their 
service, and that their time in service is properly documented, they 
and the masters or other persons in charge of their vessels, or these 
persons' representatives, sign contracts, known as shipping articles 
(``articles''). From this point forward, in the preamble, ``masters'' 
will stand for all of those persons other than mariners.
    The content and form of articles for foreign and intercoastal 
voyages appear in 46 U.S.C. 10302, 10303, and 10304. The content of 
articles for coastwise voyages appears in 46 U.S.C. 10502, even as the 
form of these articles remains unspecified by statute, both the content 
and form of articles for voyages on the Great Lakes remain unspecified 
by statute. The articles consist of three parts: (1) features of the 
voyage and of several reciprocal duties, clear down to the caloric 
value of food served to each mariner daily; (2) particulars of 
engagement; and (3) particulars of discharge. Since 1937, usages or 
practices regarding articles have changed little. The same has been 
true regarding certificates of discharge.
    When reporting for a foreign, intercoastal voyage, or for a 
coastwise voyage (including a voyage on the Great Lakes) aboard a 
vessel of 50 gross tons or more, the mariner presents to the master a 
valid merchant mariner's document (MMD), listing the mariner's 
qualifications. The master reviews the MMD, verifies the mariner's 
qualifications, and enters the information in the particulars of 
engagement (part 2 of the articles), then the master and the mariner 
sign the articles in the appropriate places. When finishing a foreign 
or intercoastal voyage, the master enters the mariner's wages and date 
for discharge in the particulars of discharge (part 3 of the articles), 
then the master and the mariner sign the articles in the other 
appropriate places. The master completes the certificate of discharge 
in the appropriate place, then the master and the mariner sign it in 
the appropriate place. The certificate indicates the mariner's name and 
identification number, the dates and places of shipment and discharge, 
the name and official number of the vessel, and the name of the 
shipping company. If the mariner holds a continuous discharge book, the 
master also completes and signs it in the appropriate place. The master 
ensures that the entries in the continuous discharge book (if held), on 
the certificate, and in the two particulars are proper, corresponding 
entries. The mariner keeps the continuous discharge book (if held). The 
mariner gets the original copy of the certificate of discharge.
    When leaving the vessel before the end of the voyage, the mariner 
closes out the contract otherwise. The mariner and the master sign a 
``mutual agreement'' as well as the particulars of discharge; the 
master notes in these particulars that the reason for the mariner's 
leaving is mutual agreement. The master completes and signs a 
certificate of discharge, then the mariner signs it. If the mariner 
holds a continuous discharge book, the master completes and signs it.
    At the end of the voyage, after all mariners have signed the 
particulars of discharge and received their certificates of discharge, 
the shipping company sends the articles and signed copies of the 
certificates to the Coast Guard. The Coast Guard reviews the articles 
and certificates to ensure that they are complete and accurate. Next, 
it manually enters the data off the certificates into its own sea-
service database and manually files the certificates in the mariners' 
records. Last, it manually files the articles (alphabetically, by name 
of vessel).
    These usages or practices have prevailed for two generations. On 
December 20, 1993, Congress enacted the Coast Guard Authorization Act 
for 1994 [Pub. L. 103-206]. Title IV, 411, of that Act added 46 U.S.C. 
10302(d) and 10502(e), each to read as follows:

    The owner, charterer, managing operator, master, or individual 
in charge shall maintain the shipping agreement [``articles''] and 
make [them] available to the [mariner].

The act added 46 U.S.C. 10320 to read as follows:

    The Secretary shall prescribe regulations requiring vessel 
owners to maintain records of [mariners] on matters of engagement, 
discharge, and service. A vessel owner shall make these records 
available to the [mariner] and the Coast Guard on request.

The Act also added 46 U.S.C. 10502(f), to read the same, except that it 
substituted ``shipping companies'' for ``vessel owners'':

    The Secretary shall prescribe regulations requiring shipping 
companies to maintain records of [mariners] on matters of 
engagement, discharge, and service. The shipping companies shall 
make these records available to the [mariner] and the Coast Guard on 
request.

    The Act also raised the penalties in 46 U.S.C. 10321(a) and 
10508(b), from $500 to $5,000 for violating any provision of these 
chapters or regulations prescribed under these chapters.
    The Coast Guard had proposed the legislation because of budgetary 
constraints leading to cuts in its workforce and of the advent of 
computerization. Shipping companies will now be responsible for keeping 
articles and signed copies of certificates of discharge. They will 
still be free to submit them traditionally, but will now be free to 
submit just the data from them electronically. Either way, the Coast

[[Page 56634]]

Guard will now maintain its sea-service database electronically. The 
companies may develop their own software, use off-the-shelf software, 
or obtain software developed by the Coast Guard, to generate articles 
and certificates from existing records of personnel. Whichever of these 
three courses a particular company follows, the Coast Guard will 
provide standards that ensure compatibility for the electronic transfer 
of data from the company's system to the Coast Guard's sea-service 
database.
    The primary purposes of this rule are to standardize the format of 
articles (for all voyages that require them), eliminate redundant forms 
such as masters' reports of mariners shipped or discharged, authorize 
persons acting as masters to initiate and sign articles and 
certificates of discharge, confer on shipping companies the legal and 
practical ability to transfer sea-service data electronically to the 
Coast Guard, and in general to lighten recordkeeping. The secondary 
purposes of this rule are to publish new statutory penalties, to remove 
gender-based language, and to clarify 46 CFR part 14.

Discussion of Comments and Changes

    The Coast Guard received twelve responses to the Notice of Proposed 
Rulemaking. There were nine responses in support of the rulemaking with 
some corrections and minor changes to the written regulations. There 
were three responses that did not support the rulemaking.
    The comment suggested that we add a statement to Sec. 14.211, 
indicating that the next of kin information should not be included in 
the posted copy of the shipping articles. The Coast Guard agrees with 
this change and has incorporated the change in the regulations.
    One comment suggested that in Sec. 14.313, the report need not be 
sent more frequently than once per calendar month. The Coast Guard 
understands that some coastwise voyages, including those on the Great 
Lakes, are very short duration and would decrease the master's work if 
the information was transmitted on a monthly basis versus and voyage by 
voyage basis. The Coast Guard has changed the regulations to permit 
manual submission once per calendar month. Note: Sec. 14.313 will be 
14.311 in the final rule.
    Three comments were received concerning Secs. 14.303 and 14.305. 
Section 14.303 is revised to reflect the master's requirement to make 
the appropriate entries on the ships articles and consular's 
obligations, as specified in 46 U.S.C. 10318, to discharge a seaman 
upon request. Section 14.305 has been deleted.
    One comment requested that we consider alternative methods of data 
transfer such as E-mail. Due to the sensitivity of the records and 
security issues, E-mail is not a viable alternative at this time.
    The Coast Guard received five comments concerning the retention 
period that the shipping companies retain certificates of discharge and 
originals of shipping articles. Several comments requested the period 
be reduced to 3 years and one comment suggested no retention by 
shipping companies. Although the statutory change and this rulemaking 
require process changes by the companies, based on correspondence and 
conversations with shipping company personnel and masters of vessels, 
the Coast Guard feels that the burden on the companies will be minimal. 
However, the Coast Guard will reduce the retention period to 3 years. 
The record of service will be maintained by the Coast Guard 
electronically, for 6 years after the last transaction, and will be 
archived and available for retrieval for 60 years.
    One comment suggested that Sec. 14.313 which authorizes the use of 
electronic transmission is misleading and that electronic data 
transmission will eventually be required. The Coast Guard is not 
requiring shipping companies to submit data electronically.
    One comment disagreed with the Coast Guard analysis regarding the 
cost savings. The comment suggested that any savings is not a result of 
new rules, but a product of technology. The comment writers assessment 
is correct since much of the savings is a product of technology; 
however, if we do not allow the use of technology by changing the 
existing rules, there will be no savings.
    One comment expressed the concern that access to and retrieval of 
needed historical information will be sorely compromised to the 
department of the mariner who needs to retrieve information if a 
centralized database is not maintained by the Coast Guard. The Coast 
Guard will maintain the existing paper copies of shipping articles and 
certificates of discharge. A centralized database created in 1981, 
contains historical data from 1937 to the present, and will continue to 
be maintained. One comment suggested that the Coast Guard change the 
Mariner's Employment Information System (MEIS) to make the program 
useful rather than a burden to the shipping companies. The Coast Guard 
is continuing to work with the shipping companies, masters, and union 
representatives to insure that MEIS is a helpful tool, not a burden to 
the companies.
    One comment recommended that the Coast Guard take this opportunity 
to allow use of individual articles. The Coast Guard must have a 
statutory change to allow individual articles, thus, we cannot address 
this suggestion in this rulemaking.
    One comment suggested that the supplemental submission period be 
extended to at least 60 days. The Coast Guard will change 
Sec. 14.213(b)(2), to extend the supplemental submission period to 60 
days.
    One comment recommended that the Coast Guard harmonize coastwise 
and foreign/intercoastal article formats using a format similar to 
coastwise articles. Section 14.207 provides for the use of form CG-705A 
for coastwise, foreign, intercoastal, and Great Lake voyages.
    One comment suggested that all vessels under 1600 gross tons no 
longer be required to prepare certificates of discharge since masters/
companies have difficulty obtaining the forms, that Congress make it 
illegal to withhold written sea service information, and that the Coast 
Guard discontinue collecting paperwork. Since all of these points 
require statutory changes, the Coast Guard will not address them in 
this rulemaking.
    One comment urged the Coast Guard to ensure that they maintain 
adequate and reliable electronic sea-service database backup files in 
the event of a system breakdown, compromise, fire, or any other 
misfortune. The Coast Guard has an extensive Disaster Recovery Plan in 
place which addresses issues such as proper backups, off-site storage 
for backup tapes, and other security issues to insure that complete and 
adequate records are available.
    The comment also recommended that the regulation include specific 
provisions that both shipping articles and certificates of discharge be 
available from the shipping company to the mariner upon request. The 
mariner may also obtain a printout of their sea service time from the 
Coast Guard.
    One comment expressed concern that Sec. 14.103 does not provide an 
electronic address. This electronic address was not included because 
the Coast Guard does not have this information currently available.
    One comment requested the definition of an ``unrigged vessel.'' 
``Unrigged vessel'' refers to a class of vessel no longer categorized, 
consequently the term is obsolete and removed. The reference to 
seagoing barges is moved to Sec. 14.201.

[[Page 56635]]

    One comment suggested that in Sec. 14.207 the Coast Guard use 
``approved'' off-the-shelf software for the shipping articles/
certificates of discharge versus obtaining approval on a case by case 
basis. Due to the current security needs of the Coast Guard, companies 
must receive approval individually.
    One comment indicated that bays and sounds would be exempt under 
Sec. 14.201(b)(3) since they are in either adjoining states or one 
state. This is not true in all cases, i.e., Chesapeake Bay from a port 
in Virginia to a port in Delaware, not same or adjoining States. Also, 
Secs. 14.201 (2) and (3) were further clarified to eliminate confusion 
as to their meaning.
    One comment requested a prescribed format for a certificate of 
discharge detailed in Sec. 14.309(a). The Coast Guard agrees that a 
prescribed format in the rule would be beneficial to the public; 
therefore, they have added the prescribed format to Sec. 14.307(a) in 
the final rule.
    One comment requested the elimination of gender-based language in 
Sec. 14.311(b). The Coast Guard agrees and made the change in the rule 
(now Sec. 14.309(b) in the final rule).
    One comment objected to rewriting of regulations to ``eliminate 
gender-based language.'' The regulations were not rewritten to 
``eliminate gender-based language,'' but were rewritten to reflect 
statutory changes.
    One comment interpreted Sec. 14.207 to allow articles in any form 
as long as the content complies with 46 U.S.C. 10502, which ignores 
requirements of U.S. Customs. The format in form CG-705A, which is 
approved, meets the needs of U.S. Customs and conforms to 46 U.S.C. 
10502, as well as 46 U.S.C. 10302, 10303, 10304, and 10305. One comment 
indicated that the Coast Guard is unrealistic when they propose that 
shipping companies maintain original sets of articles and other 
documentation and then expect those items to be sent to the Coast Guard 
when the companies go out of business. The commenter writer wanted to 
know what penalties would then be levied upon whom. The company that 
holds the records will be held responsible for sending the records to 
the Coast Guard for storage. As stated in 46 U.S.C. 10321, they would 
be liable for a civil penalty of not more than $5,000.
    One comment also stated that the Coast Guard incorrectly perceives 
that this regulation will reduce the workload on the ship's crew. Based 
on the Coast Guard's information, this rule will reduce the workload on 
most of the ships' crews.

Regulatory Evaluation

    This rule is not a significant regulatory action under section 3(f) 
of Executive Order 12866 and will not require an assessment of 
potential costs and benefits under section 6(a)(3) of that order. It 
has not been reviewed by the Office of Management and Budget (OMB) 
under that Order. It is not significant under the regulatory policies 
and procedures of the Department of Transportation (DOT) [44 FR 11040 
(February 26, 1979)]. The Coast Guard expects the economic impact of 
this rule to be so minimal, that a full Regulatory Evaluation under 
paragraph 10e of the regulatory policies and procedures of DOT is 
unnecessary.
    Many shipping companies, for their own purposes and convenience, 
already maintain electronic records of employment, from which they can 
generate both articles and certificates of discharge. Until now they 
have had to generate both by writing or typing. Now they will be able 
to print both, when required, from the computer; transmit the data off 
the certificates directly to the Coast Guard, using the software 
developed by the Coast Guard if not software developed by themselves or 
bought off the shelf; and still provide original certificates to their 
mariners. Upgrades or enhancement to the software developed by the 
Coast Guard, and long-term support for it, may cost them $250 a year. 
But initial issue of it, and first-year support of it, will cost them 
nothing. This new way of doing business will save them time, effort, 
and money, about $1 million a year.

Small Entities

    Under the Regulatory Flexibility Act [5 U.S.C. 601 et seq.], the 
Coast Guard must consider whether this final rule, will have a 
significant economic impact on a substantial number of small entities. 
``Small entities'' may include (1) small businesses and not-for-profit 
organizations that are independently owned and operated and are not 
dominant in their fields and (2) governmental jurisdictions with 
populations of less than 50,000.
    Smaller shipping companies may lack the equipment necessary to 
prepare articles and certificates of discharge and to transmit the data 
from the certificates to the Coast Guard, electronically. But the Coast 
Guard will continue to accept copies of the certificates, by mail, and 
manually enter data into the database. Shipping companies will not need 
to buy computers. This will let the Coast Guard maintain an accurate 
sea-service database receiving data from all companies required to 
submit them, by mail if not electronically.
    Therefore, the Coast Guard certifies under 5 U.S.C. 605(b) that 
this rule will not have a significant economic impact on a substantial 
number of small entities.

Federalism

    The Coast Guard has analyzed this rule under the principles and 
criteria contained in Executive Order 12612 and has determined that 
this rule will does not have sufficient federalism implications to 
warrant the preparation of a Federalism Assessment.

Environment

    The Coast Guard considered the environmental impact of this rule 
and concluded the environmental impact of this rule and concluded that, 
under paragraph 2.B.2 of Commandant Instruction M16475.1B, this rule is 
categorically excluded from further environmental documentation. 
Subparagraphs 2.B.2.e. (34) (a) and (c) of that Instruction exclude, 
respectively, regulations that are editorial or procedural and those 
that concern maritime personnel. A ``Categorical Exclusion 
Determination'' is available in the docket for inspection or copying 
where indicated under ADDRESSES.

Collection of Information

    Under the Paperwork Reduction Act [44 U.S.C. 3501 et seq.], the 
Office of Management and Budget (OMB) review each rule that contains a 
collection-of-information requirement to determine whether the 
practical value of the information would be worth the burden imposed by 
its collection. Collection-of-information requirements include 
reporting, recordkeeping, notification, and other, similar 
requirements.
    This rule contains collection-of-information requirements in the 
following sections: 14.207, 14.209, 14.211, 14.213, 14.301, 14.303, 
14.305, 14.307, 14.309, 14.311, 14.405, and 14.407. The following 
particulars apply:
    DOT No: 2115.
    OMB Control No.: 2115-0015 and 2115-0042.
    Administration: U.S. Coast Guard.
    Title: Electronic Records of Shipping Articles and Certificates of 
Discharge.
    Need for Information: To protect merchant mariners by ensuring that 
records of their employment, wages, and next of kin are accurate and 
are available for their review.
    Proposed Use of Information: To promote safety aboard domestic 
merchant vessels by ensuring that merchant mariners qualify by training 
and service for original or upgraded

[[Page 56636]]

credentials; to maintain sea-service data toward retirement benefits; 
and to furnish those data in the many cases litigated over collisions, 
injuries, or asbestosis.
    Frequency of Response: Articles and copies of certificates of 
discharge have been due after each voyage. Articles and certificates 
would still have to be prepared for each voyage. Data from certificates 
would still have to reach the Coast Guard after each voyage. But now 
these data could move by wire rather than by mail; no forms would move, 
unless shipping companies chose not to avail themselves of the benefits 
of this rule, until after a lag of 3 years. The number and length of 
voyages depend on the companies.
    Burden Estimate: The master of each vessel currently prepares, by 
hand, large, antiquated articles and certificates of discharge. The 
shipping companies send these records to the Coast Guard. The Coast 
Guard enters, by hand, sea-service data into its database, and files 
originals of articles (alphabetically, by names of vessels) and copies 
of certificates in individual mariners' records. It leaves the copies 
in the records. After 3 years, it transfers articles to the Federal 
Records Center in Suitland, Maryland, which stores them for 60 years. 
After 3 years of inactivity, it transfers the records themselves to 
that Center, which, again, stores them for 60 years.
    In this final rule, the master of each vessel would still prepare 
articles and certificates of discharge. The shipping company would 
retain the option of his or her preparing both forms manually and 
sending copies of certificates to the Coast Guard for entry into its 
sea-service database. But it would gain that of his or her preparing 
both forms electronically on software developed by themselves or the 
Coast Guard, or bought from stock and of transmitting the data from 
certificates electronically to the Coast Guard. The Coast Guard would 
maintain the record of sea service in its database for 6 years after 
the mariner's last activity such as taking out an upgraded, renewed, 
modified, or duplicate license or MMD, or sailing and then transfer its 
record, in whatever electronic form, to the center.
    The burden would decrease greatly for companies that already had, 
or that obtained, the capability of preparing articles and certificates 
electronically from their current records of employment. They would no 
longer collect data more than once and could collect them however they 
chose. It would decrease considerably even for companies lacking this 
capability. They would, while their masters continued preparing 
articles and certificates manually, need only to send copies of 
certificates to the Coast Guard voyage by voyage; even they would not 
need to send articles to the Coast Guard voyage by voyage. So both the 
cost of sending articles oftener than once a year and the cost of 
sending them at all during the first 3 years would be eliminated for 
all companies. All would maintain files of articles and of copies of 
certificates for 3 years; then they would send the articles to the 
Coast Guard, which would prepare the articles for storage at that 
Federal Records Center, and the shipping companies would destroy their 
copies of certificates, since the Coast Guard would hold the record in 
it's database. The added burden on these would take the forms of 
allotting more storage space in their offices to maintain the articles 
for 3 years and of, about one work week for one person per company per 
year after the first 3 years, both packing the articles to send to the 
Coast Guard for further storage and destroying their copies of 
discharges. The Coast Guard invites comments on the size of this added 
burden (or of any other burden, whether or not anticipated here).
    Respondents: The chief regulatory impact would fall on the medium 
and large shipping companies because they operate most of the vessels 
required to execute articles and certificates of discharge. They would 
continue to prepare, issue, and keep files of articles and of copies of 
certificates. They would make these files accessible to the Coast Guard 
and mariners upon request and would send voyage by voyage, for the sea 
service database of the Coast Guard either copies of certificates, as 
they do now, though without articles, or data transmitted 
electronically from these files.
    Form(s): The regulated community of shipping companies and mariners 
would be free to forgo the use of each of these records, in whole or in 
its current form: Forecastle Card, CG-704; Shipping Articles, CG-705A; 
Certificate of Discharge, CG-718A; Record of Entry, CG-718E; and 
Continuous Discharge Book, CG-719A; and (although OMB did not renew 
authority for its use after February 1995) Master's Report of Seamen 
Shipped or Discharged, CG-735T.
    In this final rule, the regulated community would still have to 
deal with all of the data contained in these records, in some form: 
Shipping Articles, CG-705A; and Certificate of Discharge, CG-718A.
    Average Burden Hours per Respondent: Each year, shipping companies 
prepare about 8,000 articles with accompanying certificates of 
Discharge; this costs them almost $1.43 million. Each year hereafter, 
they would still prepare about 8,000 articles with accompanying 
certificates, but this would cost them just about $0.43 million. The 
reason is the efficiency that this rule would bring. For each voyage, 
masters need about 2.5 hours to prepare the articles with accompanying 
certificates and send them. For each voyage hereafter, those able to 
file electronically would need about 0.5 hour to prepare the documents 
and 0.25 hour to file the data from them. The burden-hours would 
diminish by just about 70 percent.

Savings

For Respondents

    The average salary for the staff to prepare the articles and 
certificates of discharge is $50 an hour. That staff could save 20,000 
hours a year, though the exact figure would depend on two variables: 
the numbers and kinds of vessels and voyages; and the offsetting 
burden, in the fourth and later years, of purging 3-year-old copies of 
certificates and packing and sending 3-year-old articles. The Coast 
Guard invites comments on the sizes of these two variables.

For Coast Guard

    The Coast Guard would save in three ways: (1) on its own personnel, 
(2) on its contractors' personnel, and (3) on storage space. Although 
some shipping companies may continue to submit paper copies of 
certificates of discharge requiring the Coast Guard to continue 
entering data from some records, the Coast Guard would save 950 hours 
or $20,000 a year on its own personnel. The Coast Guard has eliminated 
10 ``positions'' and saved 19,000 hours and has lost $460,000 a year 
from it's budget to support contractors' personnel. Also, the Coast 
Guard would need 15 or 20 fewer cubic feet of storage-space a year over 
the next 15 years and so would save $7,500 at $500 a year over those 
years on storage space.
    Persons are not required to respond to a collection of information 
unless it displays a current valid Office Management Budget (OMB) 
control number. The Coast Guard has submitted the information 
collection requirements in this rule to OMB for review pursuant to The 
Paperwork Reduction Act (44 U.S.C. 3501 et seq.) OMB has approved 
information collection for shipping articles and the section numbers 
are 46 CFR 14.207, 14.209, 14.211, 14.213, 14.309, and the 
corresponding OMB approval number is OMB control

[[Page 56637]]

number 2115-0015, and expires October 31, 1997. OMB approval for 
Certificate of Discharge expires on September 30, 1996, and the Coast 
Guard has asked for OMB approval to review that request. See notice, 
number CGD 96-056 for details.
    Individuals and organizations may submit comments by January 29, 
1997, on the information collection requirements for this portion of 
the final rule. Comments should be directed to the Executive Secretary, 
Marine Safety Council as indicated under addresses and to the Office of 
Information and Regulatory Affairs, OMB, New Executive Office Building, 
room 10235, 725 17th Street NW., Washington, DC 20503, Attention: Desk 
Officer for DOT. The Coast Guard will publish a notice in the Federal 
Register  of OMB's decision to approve, modify, or disapprove the 
pending information Collection requirements.

List of Subjects in 46 CFR Part 14

    Oceanographic research vessels, Reporting and recordkeeping 
requirements, Seamen (merchant mariners).

    For the reasons set out in the preamble, the Coast Guard revises 46 
CFR part 14, to read as follows:

PART 14--SHIPMENT AND DISCHARGE OF MERCHANT MARINERS

Subpart A--General

14.101  Purpose of part.
14.103  Addresses of Coast Guard.
14.105  Disclosure and privacy.

Subpart B--Shipment of Merchant Mariners

14.201  Voyages upon which shipping articles are required.
14.203  Voyages upon which shipping articles are not required.
14.205  Production of credentials by merchant mariner signing 
shipping articles.
14.207  Content and form of shipping articles.
14.209  Preparation of shipping articles at beginning of voyage.
14.211  Posting of copy of shipping articles.
14.213  Report of shipment of merchant mariner.

Subpart C--Discharge of Merchant Mariners

14.301  Paying off of merchant mariner during or after voyage upon 
which shipping articles are required.
14.303  Discharge of merchant mariner in foreign port.
14.305  Entries in continuous discharge book.
14.307  Entries on certificate of discharge.
14.309  Entries in shipping articles at end of voyage.
14.311  Report of discharge of merchant mariner.
14.313  Storage of shipping articles and of certificates of 
discharge.

Subpart D--Oceanographic Research Vessels

14.401  General.
14.403  Exemptions.
14.405  Procedures.
14.407  Reports.

    Authority: 5 U.S.C. 552; 46 U.S.C. Chapters 103 and 104.

Subpart A--General


Sec. 14.101  Purpose of part.

    This part prescribes rules for the shipment and discharge of 
merchant mariners aboard certain vessels of the United States.


Sec. 14.103  Addresses of Coast Guard.

    (a) By mail: National Maritime Center (NMC-4A), U.S. Coast Guard, 
Suite 510, 4200 Wilson Boulevard, Arlington, VA 22203-1804.
    (b) By facsimile: 703-235-1062.


Sec. 14.105  Disclosure and privacy.

    The Coast Guard makes information available to the public in 
accordance with 49 CFR part 7, including appendix B.

Subpart B--Shipment of Merchant Mariners


Sec. 14.201  Voyages upon which shipping articles are required.

    (a) Before proceeding either upon a foreign, intercoastal, or 
coastwise voyage (including a voyage on the Great Lakes) listed in 
paragraph (b) of this section or with the engagement or replacement of 
a merchant mariner for such a voyage, each master or individual in 
charge of a vessel or seagoing barge of the United States shall execute 
shipping articles however prepared, manually or electronically. The 
master or individual in charge and each mariner engaged or replaced 
shall sign the articles.
    (b) Except as provided by Sec. 14.203, articles are required upon 
each voyage by a vessel of the United States--
    (1) Of 100 gross tons or more, on a foreign voyage, which is a 
voyage from a port in the United States to any foreign port other than 
a port in--
    (i) Canada;
    (ii) Mexico; or
    (iii) The West Indies.
    (2) Of 75 gross tons or more on a voyage between a port of the 
United States on the Atlantic Ocean and a port of the United States on 
the Pacific Coast; or
    (3) Of 50 gross tons or more on a voyage between a port in one 
State and a port in another State other than an adjoining State.


Sec. 14.203  Voyages upon which shipping articles are not required.

    Although they may be used for the voyage; shipping articles are not 
required for any voyage by--
    (a) A yacht;
    (b) A vessel engaged exclusively in fishing or whaling;
    (c) A vessel aboard which the merchant mariners are by custom or 
agreement entitled to participate in the profits or results of a cruise 
or voyage;
    (d) A vessel employed exclusively in trade on the navigable rivers 
of the United States; or
    (e) A ferry, or a tug used in ferrying, if the vessel is employed 
exclusively in trade on the Great Lakes, other lakes, bays, sounds, 
bayous, canals, or harbors.


Sec. 14.205  Production of credentials by merchant mariner signing 
shipping articles.

    On engagement for a voyage upon which shipping articles are 
required, each merchant mariner shall present to the master or 
individual in charge of the vessel every document, certificate, or 
license required by law for the service the mariner would perform.


Sec. 14.207  Content and form of shipping articles.

    (a)(1) The content and form of shipping articles for each vessel of 
the United States of 100 gross tons or more upon a foreign or 
intercoastal voyage must conform to the present shipping articles, form 
CG-705A, which meets the requirements of 46 U.S.C. 10302, 10303, 10304, 
and 10305. The articles must identify the nature of the voyage and 
specify at least the name, the number of the license or merchant 
mariner's document, the capacity of service, the time due on board to 
begin work, and the name and address of the next of kin of, and the 
wages due to each merchant mariner, either who was discharged or whose 
services were otherwise terminated during the month.
    (2) The content and form of articles for each such vessel upon a 
coastwise voyage (including a voyage on the Great Lakes) must also 
conform to the present shipping articles, form CG-705A, which meet the 
requirements of 46 U.S.C. 10502. The articles must specify at least the 
matter identified by paragraph (a)(1) of this section, except that they 
must not specify the wages due to the mariner. The wages section of the 
form shall be left blank for coastwise voyages.
    (b) Any shipping company that manually prepares the articles may, 
upon request, obtain Shipping Articles, Form CG-705A, from any Officer 
in Charge, Marine Inspection (OCMI), of the Coast Guard.
    (c) Any company that electronically prepares the articles may, upon 
request

[[Page 56638]]

submitted to either address in Sec. 14.103, obtain a copy of software 
developed by the Coast Guard to produce articles in the proper format. 
Alternatively, a company may develop its own software or buy it off the 
shelf; but, in either of these cases, it must secure approval of the 
software from the National Maritime Center at either address in 
Sec. 14.103.


Sec. 14.209  Preparation of shipping articles at beginning of voyage.

    Each master or individual in charge of a vessel when shipping 
articles are required shall prepare an original and two copies of the 
articles. The original and one copy must be signed by the master or 
individual in charge and by each merchant mariner; but the second copy 
must not be signed by any of them.


Sec. 14.211  Posting of copy of shipping articles.

    On commencement of a foreign, intercoastal, or coastwise voyage 
(including a voyage on the Great Lakes), each master or individual in 
charge of a vessel when shipping articles are required shall ensure 
that a legible copy of the articles, unsigned by the mariner, and 
without the next of kin information, is posted at a place accessible to 
the crew.


Sec. 14.213  Report of shipment of merchant mariner.

    (a) When a vessel of the United States sails upon a foreign, 
intercoastal, or coastwise voyage (excluding a voyage on the Great 
Lakes), each master or individual in charge shall, at the commencement 
of the voyage, send one copy of shipping articles, signed by the master 
and by each merchant mariner, to the owner, charterer, or managing 
operator. The master shall keep the original throughout the voyage and 
enter in it all charges made to the crew during the voyage.
    (b) (1) When a vessel of the United States sails exclusively on the 
Great Lakes, each master or individual in charge shall, at the 
commencement of the season, or once the vessel is put into service, 
whichever occurs earlier, send one copy of articles, signed by the 
master and by each mariner, to the owner, charterer, or managing 
operator.
    (2) The master or individual in charge shall every 60 days send 
supplementary particulars of engagement covering each mariner engaged 
during this period, signed by the master and by each mariner, to the 
owner, charterer, or managing operator.
    (3) The master of individual in charge shall, at the close of the 
season, or once the vessel is withdrawn from service, whichever occurs 
later, send articles, signed by the master and by each mariner, to the 
owner, charterer, or managing operator.
    (c) When a vessel of the United States sales exclusively on bays or 
sounds, each master or individual in charge shall, at least every 60 
days, send articles, signed by the master and by each mariner, to the 
owner, charter, or managing operator.
    (d) Any person who fails to comply with the requirements of this 
section is subject to a civil penalty of $5,000.

Subpart C--Discharge of Merchant Mariners


Sec. 14.301  Paying off of merchant mariner during or after voyage upon 
which shipping articles are required.

    Each master or individual in charge of a vessel when shipping 
articles are required shall complete and sign, and each merchant 
mariner paid off during or after such a voyage shall sign the articles 
and otherwise comply with the requirements of this subpart. When signed 
by the master or individual in charge and by the mariner, the articles 
constitute a release from the duties to which they bound their parties.


Sec. 14.303  Discharge of merchant mariner in foreign port.

    Upon the discharge of any mariner in a foreign port, the master 
shall make the required entries on the ship's articles. Upon the 
request of the master or a mariner, the consular officer shall 
discharge the mariner in accordance with the requirements of 46 U.S.C. 
10318.


Sec. 14.305  Entries in continuous discharge book.

    If the merchant mariner holds a continuous discharge book, the 
master or individual in charge of the vessel shall make the proper 
entries in it.


Sec. 14.307  Entries on certificate of discharge.

    (a) Each master or individual in charge of a vessel shall, for each 
merchant mariner being discharged from the vessel, prepare a 
certificate of discharge and two copies; whether by writing or typing 
them on the prescribed form with permanent ink or generating them from 
computer in the prescribed format; and shall sign them with permanent 
ink. The prescribed format for a certificate of discharge is the same 
as the present form CG-719A (Rev. 8-80). The left portion of the form 
has the mariner's printed name, signature, citizenship, and merchant 
mariner's document number; the certification statement, date and the 
master's signature. The right portion of the form contains the rate/
rank the mariner is serving on the voyage, date and place of shipment, 
date and place of discharge, name of the vessel, name of the operating 
company, official number of the vessel, class of the vessel, and the 
nature of the voyage.
    (b) Each mariner being discharged shall sign the certificate and 
both copies with permanent ink.
    (c) When the mariner leaves the vessel, the master or individual in 
charge shall give the original certificate to the mariner.
    (d) Except as directed by Sec. 14.313, the shipping company shall 
keep both copies of the certificate.
    (e) The company shall provide copies of certificates of discharge 
to the mariner and the Coast Guard upon request.


Sec. 14.309  Entries in shipping articles at end of voyage.

    (a) At the end of each voyage upon which shipping articles are 
required, the master or individual in charge of the vessel shall--
    (1) Complete the articles, conforming the pertinent entries in them 
to those on the certificate of discharge and its copies;
    (2) Note in the articles the execution of each Mutual Release;
    (3) Attach to the articles each Mutual Release and a copy of each 
certificate; and
    (4) Pay to each merchant mariner all wages due.
    (b) When paid off, each mariner shall sign the articles.


Sec. 14.311  Report of discharge of merchant mariner.

    (a) At the end of each foreign, intercoastal, and coastwise voyage 
by a vessel of the United States, or of each voyage by such a vessel 
that sails exclusively on bays or sounds (or by such a vessel at the 
close of the season on the Great Lakes, or once the vessel is withdrawn 
from service there, whichever occurs later), the shipping company shall 
electronically transmit the data from the certificates of discharge via 
modem to an electronic address which the shipping company may request 
from the National Maritime Center.
    (b) If the data is submitted manually, the shipping companies shall 
provide the data for foreign and intercoastal voyages at the end of 
each voyage. For coastwise voyages or of each voyage by such a vessel 
that sails exclusively on bays or sounds (or by such a vessel at the 
close of the season of the Great Lakes, or once the vessel is withdrawn 
from service there, whichever occurs later), the shipping companies 
shall

[[Page 56639]]

submit a copy of each certificate of discharge to the address in 
Sec. 14.103(a) at least once per calendar month.


Sec. 14.313  Storage of shipping articles and of certificates of 
discharge.

    (a) Each shipping company shall keep all original shipping articles 
and copies of all certificates of discharge for 3 years. After 3 years 
the shipping companies shall prepare the original shipping articles in 
alphabetical order by vessel name and send to the address in 
Sec. 14.103(a) for storage at the Federal Records Center at Suitland, 
Maryland. The company may dispose of the copies of certificates of 
discharge. The Coast Guard will dispose of copies of certificates 
submitted manually, once the data are entered into its sea-service 
database and are validated.
    (b) Each shipping company that goes out of business or merges with 
another company shall send all original articles to the address in 
Sec. 14.103(a) within 30 days of the transaction.
    (c) The shipping company must provide copies of shipping articles 
and certificates of discharge to the mariner and the Coast Guard upon 
request.

Subpart D--Oceanographic Research Vessels


Sec. 14.401  General.

    Unless otherwise provided by Title 46 United States Code, by any 
act amending or supplementing that Title, or by this subpart, that 
Title as far as it governs the employment of merchant mariners remains, 
and any act amending or supplementing that title becomes, applicable to 
oceanographic research vessels.


Sec. 14.403  Exemptions.

    (a) Certain requirements of Title 46, United States Code do not 
apply to the employment of merchant mariners on oceanographic research 
vessels. These requirements are those concerned with, among other 
things, the shipment and discharge of mariners, their pay and 
allotments, and the adequacy of their clothing. 46 U.S.C. 2113(2) 
allows exemptions of oceanographic research vessels from certain 
requirements of parts B, C, F, or G of subtitle II of 46 U.S.C., upon 
such terms as the Secretary of the Department of Transportation deems 
suitable. The exemptions available under this subpart are subject to 
the following terms:
    (1) No use of any exemption relieves the owner, charterer, managing 
operator, master, or individual in charge of the vessel of other 
statutory responsibilities for the protection of every mariner under 
his or her command.
    (2) If it is presented at a reasonable time and in a reasonable 
manner, the master or individual in charge shall receive, consider, and 
appropriately address the legitimate complaint of any mariner.
    (b) For any oceanographic research vessel sailing with any mariner 
employed by any firm, association, corporation, or educational or 
governmental body or agency, the Commandant may grant exemptions from--
    (1) 46 U.S.C. 10301, Application;
    (2) 46 U.S.C. 10302, Shipping articles (for foreign and 
intercoastal voyages);
    (3) 46 U.S.C. 10307, Posting of articles;
    (4) 46 U.S.C. 10308, Foreign engagements;
    (5) 46 U.S.C. 10311, Certificates of discharge;
    (6) 46 U.S.C. 10313 and 10504, Wages;
    (7) 46 U.S.C. 10314 and 10505, Advances;
    (8) 46 U.S.C. 10315, Allotments;
    (9) 46 U.S.C. 10316 and 10506, Trusts;
    (10) 46 U.S.C. 10321 and 10508, General penalties;
    (11) 46 U.S.C. 10502, Shipping articles (for coastwise voyages); 
and
    (12) 46 U.S.C. 10509, Penalty for failure to begin coastwise 
voyages.


Sec. 14.405  Procedures.

    (a) Upon written request for the owner, charterer, managing 
operator, master, or individual in charge of the vessel to the OCMI of 
the Coast Guard in whose zone the vessel is located, the Commandant may 
grant an exemption of any oceanographic research vessel designated by 
46 U.S.C. 2113(2) from any requirement of any section listed by 
Sec. 14.403(b).
    (b) The request must state--
    (1) Any requirement of any section listed in Sec. 14.403(b) from 
which the applicant wishes an exemption; and
    (2) What business practices regarding, among other things, the 
shipment and discharge of merchant mariners, their pay and allotments, 
and the adequacy of their clothing would justify the exemption.
    (c) The OCMI will forward the request, along with his or her 
recommendation, to the Commandant, who will determine whether to grant 
any exemption of any vessel from any requirement. The OCMI will issue a 
letter indicating any exemption granted. The master or individual in 
charge of the vessel shall keep the letter aboard the vessel.
    (d) If operating conditions change, the owner, charterer, managing 
operator, master, or individual in charge of the vessel shall so advise 
the OCMI. The OCMI will forward pertinent information on how the 
conditions have changed, along with his or her recommendation, to the 
Commandant, who will determine whether any exemption should remain 
granted.


Sec. 14.407  Reports.

    (a) The owner, charterer, managing operator, master, or individual 
in charge of each oceanographic research vessel of 100 gross tons or 
more shall maintain a record of the employment, discharge, or 
termination of service of every merchant mariner in the crew. At least 
every 6 months, the person maintaining this record shall transmit it to 
the Coast Guard, either manually, in the form of a copy of a 
certificate of discharge, or electronically.
    (b) The owner, charterer, managing operator, master, or individual 
in charge of the vessel shall keep original shipping articles and a 
copy of each certificate ready for review by the Coast Guard or the 
concerned mariner upon request. After January 3, 1997, the Coast Guard 
will no longer keep either original articles or copies of certificates; 
it will keep only electronic records of employment.
    (c) The master or individual in charge of the vessel shall ensure 
that every entry made in the articles agrees with the corresponding 
entry made in a continuous discharge book, on a certificate, or in any 
other proof of sea service furnished to the mariner.
    (d) Each oceanographic company shall keep all original articles and 
copies of all certificates for 3 years. After that each such company 
shall send all articles to the address in Sec. 14.103(a).
    (e) Each oceanographic company that goes out of business or merges 
with another company shall send all original articles to the address in 
Sec. 14.103(a) within 30 days of the transaction.

    Dated: October 28, 1996.
J.C. Card,
Rear Admiral, U.S. Coast Guard, Chief, Marine Safety and Environmental 
Protection.
[FR Doc. 96-28082 Filed 11-1-96; 8:45 am]
BILLING CODE 4910-14-M