[Federal Register Volume 65, Number 69 (Monday, April 10, 2000)]
[Notices]
[Pages 19039-19040]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-8732]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration

[Docket Number: MARAD-2000-7185]


Requested Administrative Waiver of the Coastwise Trade Laws

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Invitation for public comments on a requested administrative 
waiver of the Coastwise Trade Laws for the vessel FAIR TRADES.

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SUMMARY: As authorized by Public Law 105-383, the Secretary of 
Transportation, as represented by the Maritime Administration (MARAD), 
is authorized to grant waivers of the U.S. build requirement of the 
coastwise laws under certain circumstances. A request for such a waiver 
has been received by MARAD. The vessel, and a description of the 
proposed service, is listed below. Interested parties may comment on 
the effect this action may have on U.S. vessel builders or businesses 
in the U.S. that use U.S.-flag vessels. If MARAD determines that in 
accordance with Public Law 105-383 and MARAD's regulations at 46 CFR 
388 (65 FR 6905; February 11, 2000) that the issuance of the waiver 
will have an unduly adverse effect on a U.S.-vessel builder or a 
business that uses U.S.-flag vessels, a waiver will not be granted.

DATES: Submit comments on or before May 10, 2000.

ADDRESSES: Comments should refer to docket number MARAD-2000-7185.
    Written comments may be submitted by hand or by mail to the Docket 
Clerk, U.S. DOT Dockets, Room PL-401, Department of Transportation, 400 
7th St., S.W., Washington, D.C. 20590-0001. You may also send comments 
electronically via the Internet at http://dmses.dot.gov/submit/. All 
comments will become part of this docket and will be available for 
inspection and copying at the above address between 10 a.m. and 5 p.m., 
E.T., Monday through Friday, except federal holidays. An electronic 
version of this document and all documents entered into this docket is 
available on the World Wide Web at http://dms.dot.gov.

FOR FURTHER INFORMATION CONTACT: Michael Hokana, U.S. Department of 
Transportation, Maritime Administration, MAR 832 Room 7201, 400 Seventh 
Street, SW, Washington, DC 20590. Telephone 202-366-0760.

SUPPLEMENTARY INFORMATION: Title V of Public Law 105-383 provides 
authority to the Secretary of Transportation to administratively waive 
the U.S.-build requirements of the Jones Act, and other statutes, for 
small commercial passenger vessels (less than 12 passengers). This 
authority has been delegated to the Maritime Administration per 49 CFR 
1.66, Delegations to the Maritime Administrator, as amended. By this 
notice, MARAD is publishing information on a vessel for which a request 
for a U.S.-build waiver has been received, and for which MARAD requests 
comments from interested parties. Comments should refer to the docket 
number of this notice and the vessel name in order for MARAD to 
properly consider the comments. Comments should also state the 
commentor's interest in the waiver application, and address the waiver 
criteria given in Sec. 388.4 of MARAD'S regulations at 46 CFR 388.

Vessel Proposed for Waiver of the U.S.-build Requirement:

    (1) Name of vessel and owner for which waiver is requested: Name of 
vessel: FAIR TRADES Owner: Michael and Frances Plitman.
    (2) Size, capacity and tonnage of vessel: According to the 
Applicant ``FAIR TRADES is 50 feet long, and has a gross tonnage of 35 
tons as calculated pursuant to 46 U.S.C. 14502, berths for 8 passengers 
for overnight charters, and can comfortably accommodate up to 12 
passengers for day charters.''
    (3) Intended use for vessel, including geographic region of 
intended operation and trade. According to the applicant: ``We intend 
to operate FAIR TRADES on day and overnight charter trips on the 
Chesapeake Bay and its tributaries for up to 12 passengers. We intend 
to specialize in providing combination sailing/golfing trips while also 
offering more traditional sailing cruises. FAIR TRADES is berthed in 
Annapolis and most charters will operate within 50 nautical miles of 
the mouth of the Severn River.''
    (4) Date and place of construction and (if applicable) rebuilding. 
Date of construction: 1990, place of construction: France.
    (5) A statement on the impact this waiver will have on other 
commercial passenger vessel operators. According to the applicant: 
``Approval of this waiver will have minimal impact on other commercial 
passenger vessel operators. Most U.S. built vessels engaged in similar 
types of charters offer some kind of unique facilities or layout. FAIR 
TRADES was originally built for the charter trade in the Caribbean and 
has a unique, 4 cabin layout ideally suited for golfing groups. There 
are very few similarly constructed U.S. built vessels which is why we 
chose to buy this French boat. The design has been immensely popular in 
the islands and we believe it will be successful here. FAIR TRADES will 
not be competing with the large majority of coastwise operators that 
offer daily excursions. We have absolutely no interest in providing 
hourly harbor tour type services. Rates for chartering FAIR TRADES will 
be based on comparable market prices for similar vessels regardless of 
place of construction, most of which are operated in ``bareboat'' 
charter. There will be no attempt to ``undercut'' competitors; in fact, 
we are seeking to make a profit based on quality of service--not 
volume. Therefore, our

[[Page 19040]]

rates will be comparable to other high end charters. There are many 
foreign-built and U.S.-built boats, including French-built BENETEAUs, 
that operate legally in the Bareboat trade. It is these types of 
vessels with which we will really compete and their owners are not 
truly in the commercial service--they are individuals looking to offset 
the high costs of boat ownership.''
    (6) A statement on the impact this waiver will have on U.S. 
shipyards. According to the applicant: ``Any impact on domestic 
shipbuilders should be positive. In fact, successful operations with 
FAIR TRADES may stimulate interest among U.S. builders to design and 
construct similar type vessels. Since we purchased FAIR TRADES, we have 
spent over $50,000 for U.S. manufactured equipment to upgrade her 
thereby helping the local marine industry. All repair work contracted 
for has been performed by U.S. yards. It should be evident that FAIR 
TRADES is, in fact, stimulating many related marine industries.''

    Dated: April 4, 2000.

    By Order of the Maritime Administrator.
 Joel C. Richard,
Secretary, Maritime Administration.
[FR Doc. 00-8732 Filed 4-7-00; 8:45 am]
BILLING CODE 4910-81-P