[Federal Register Volume 66, Number 80 (Wednesday, April 25, 2001)]
[Notices]
[Pages 20851-20858]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-10283]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration

[Docket Number: MARAD-2000-7798]


Criteria for Granting Waivers of Requirement for Exclusive U.S.-
Flag Vessel Carriage of Certain Export Cargoes

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Notice of policy revision.

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Statement of Policy on Public Resolution 17--73rd Congress

    The Maritime Administrator has authorized the following statement 
describing the policies and procedures in administration of Public 
Resolution 17, 73rd Congress, 48 Stat. 500, 46 App. U.S.C. Sec. 1241-1, 
as it applies to credits of the Export-Import Bank of the United States 
or similar government instrumentalities.

1. Scope of Applicability

    Public Resolution No. 17 provides that where an instrumentality of 
the Government makes loans or credit guarantees to foster the export of 
agricultural or other products, such products must be carried 
exclusively in vessels of the United States unless the Maritime 
Administration (we, us, or our) certifies to the lending agency that 
such vessels are not available as to numbers, tonnage capacity, sailing 
schedule or at reasonable rates. The Resolution is applicable to 
credits of the Export-Import Bank (Eximbank, government 
instrumentality) or other Government instrumentalities for the purpose 
of financing the acquisition and shipment of United States products or 
services. The government instrumentality must include in such credit 
agreements a requirement that shipments be made in United States-flag 
vessels, except to the extent that we grant a waiver of the requirement 
as outlined in this policy statement. If the government instrumentality 
receives a request for a waiver, it will refer the request to us.

2. Types of Waivers

    The process to be followed for all waiver requests is set forth in 
Appendix A. Guidelines for the information to be included in the waiver 
request are set forth in Appendix B. We will post the essential terms 
of applications for, and status of, all waiver requests and waivers on 
our web site. If our web site is not available, we will transmit the 
information to the U.S.-flag carriers and the shipper/applicant. 
Security access to waiver information will be limited to bona fide 
U.S.-flag ocean carriers and to the shipper who requests or receives 
the waiver. MARAD will treat all information submitted by shippers that 
is not essential for U.S.-flag cargo bookings as ``business 
confidential'' and exempt from public disclosure under the Freedom of 
Information Act (FOIA), section 552 (b)4. MARAD may consult with or 
request further information from any carrier or shipper or Government 
Agency to clarify any questions we may have on any topic.

(A) Statutory (Non-Availability) Waiver

    When it appears that U.S. vessels will not be available within a 
reasonable time or at reasonable rates, public or private foreign 
borrowers, or their representatives or their shippers in the United 
States may apply directly to our Office of Cargo Preference for waiver 
of the U.S.-flag requirement. Requests for waivers must follow the 
format in Appendix B and must have a legal signature. We will make any 
necessary investigation to determine whether U.S.-flag vessels are 
available and may request additional information. We will approve or 
deny the waiver request in writing. Copies of approved waivers or 
denials will be sent to the appropriate government instrumentality.
    Such waivers will apply to the specifically approved cargo 
movements.

[[Page 20852]]

Within thirty (30) calendar days of vessel loading, applicants or their 
designated representatives in the United States must report the name of 
the vessel, registry, date of sailing, load and discharge ports, ocean 
freight amount, FAS value of cargo, gross weight of cargo in kilos, 
gross volume of cargo in cubic meters, and total revenue tons, in the 
general form of Appendix F. A copy of the rated bills of lading must be 
attached to the report. The government instrumentality's Credit Number 
must be provided to the ocean carrier by the shipper and must be shown 
clearly on the rated bill of lading issued by the ocean carrier. The 
Maritime Administration and the government instrumentality will accept 
only the ocean bill of lading issued by the carrier operating the 
vessel as proof of export. An NVOCC or freight intermediary bill of 
lading must be accompanied by a rated ocean carrier bill of lading.
    We strongly encourage those public or private foreign borrowers, 
and/or their United States representatives or their shippers to meet 
with U.S.-flag carriers and then to meet separately with our Office of 
Cargo Preference staff. During the meeting, we must receive full and 
complete information regarding the project, specifically identifying 
those cargoes for which a waiver might be sought. Appendix C lists the 
information that must be presented to us and the carriers. Essential 
waiver information will be posted on our web site for use by bona fide 
U.S.-flag carriers and the shipper/applicant.

(B) General Waivers

    In certain circumstances, although U.S.-flag vessels may be 
available, recipient nation vessels may be authorized to share in the 
ocean carriage of government instrumentality financed movements, but 
not in excess of fifty percent (50%) of the total movement under the 
credit. Although allowing a recipient nation to share in this type of 
ocean carriage may reduce the U.S.-flag share, we may allow such 
participation if the recipient nation gives similar treatment to U.S. 
vessels in its foreign trade. When public or private foreign borrowers, 
or their U.S. representatives, or the primary U.S. shipper acting on 
behalf of the borrower desire a general waiver for partial use of the 
national flag vessels of the recipient nation, they must apply to our 
Office of Cargo Preference for a General Waiver for the particular 
credit. When private interests apply, we may request sponsorship by the 
government of the recipient nation, to assure the recipient nation's 
responsibility to maintain fair and equitable treatment for U.S.-flag 
shipping.
    (1) If we grant such waivers, they will apply only to vessels of 
recipient nation registry to the extent of their capacity to carry the 
cargo, based on normal flow of the traffic from the interior through 
ports of shipment, but not in excess of fifty percent of the total 
movement under the credit. The U.S.-flag portion should be awarded 
first to ensure the minimum fifty percent (50%) requirement is met.
    (2) General Waivers will normally apply throughout the life of the 
credit, but the government instrumentality or we may reconsider the 
duration of the General Waiver at any time in light of altered 
circumstances.
    (3) The record of cargo distribution between U.S. and recipient 
national flag vessels will be based on (a) revenue tons; and/or (b) 
ocean freight revenue; and/or (c) such other units as appropriate which 
provide the greatest revenue to U.S.-flag carriers.
    (4) Applicants or their representatives in the United States must 
provide reports of movements to our Office of Cargo Preference, 
monthly. The reports must include the name of the vessel, registry, 
date of sailing, load and discharge ports, ocean freight, value of 
cargo, gross weight of cargo in kilos, gross volume of cargo in cubic 
meters, and total revenue tons in the general form of Appendix F. From 
time to time, we may change the data to be included on these reports to 
meet specific circumstances of the movements. Copies of the rated ocean 
bills of lading must be attached. The government instrumentality Credit 
Number must be provided by the shipper to the underlying ocean carrier 
and must be shown clearly on the rated bill of lading issued by the 
ocean carrier. The Maritime Administration and the government 
instrumentality will accept only the ocean bill of lading issued by the 
carrier operating the vessel as proof of export. An NVOCC or freight 
intermediary bill of lading must be accompanied by a rated copy of the 
underlying ocean bill of lading.
    (5) We will not grant a General Waiver until our Office of Cargo 
Preference has received written confirmation of the applicant's 
agreement to the foregoing terms and conditions and has been advised of 
the name and address of the designee located in the United States who 
will be responsible for controlling the routing of the cargo and for 
providing the required monthly reports.
    (6) General Waiver information will be posted on our web site for 
use by bona fide US-flag carriers and the shipper/applicant.

(C) Compensatory Waivers

    When public or private foreign borrowers, or their U.S. 
representatives, or their shippers in the U.S., prior to a decision to 
seek a government instrumentality credit agreement, in honest error or 
through extenuating circumstances as approved by us, move cargo for 
which a waiver is necessary to meet subsequent government 
instrumentality financing requirements, the exporter may apply to our 
Office of Cargo Preference for a Compensatory Waiver. After 
investigation, we may grant a Compensatory Waiver whereby the exporter 
contracts in writing with us to move whatever amount of revenue tons of 
cargo are required to generate an equivalent or greater amount of ocean 
freight revenue of non-government impelled cargo on U.S.-flag vessels 
within a specified time period. If our Office of Cargo Preference 
determines that a U.S.-flag ocean carrier made the primary error and 
the shipper reasonably could not be expected to have detected the error 
and achieved compliance, we may issue a retroactive Statutory Waiver.
    Waiver recipients or their representatives in the United States 
must provide reports of such compensatory movements to our Office of 
Cargo Preference, monthly. The reports must include the name of the 
vessel, registry, date of sailing, load and discharge ports, ocean 
freight, value of cargo, gross weight of cargo in kilos, gross volume 
of cargo in cubic meters, and total revenue tons, in the general form 
of Appendix F. From time to time, we may change the data to be included 
on these reports to meet specific circumstances of the movements. 
Copies of the rated ocean bills of lading must be attached. The 
Maritime Administration and the government instrumentality will accept 
only the ocean bill of lading issued by the carrier operating the 
vessel as proof of export. An NVOCC or freight intermediary bill of 
lading must be accompanied by a rated ocean bill of lading. All 
outstanding compensatory waiver amounts and shipper contact information 
will be published on our web site for use by bona fide U.S.-flag 
carriers and the shipper/applicant.

(D) Conditional Waivers

    Public or private foreign borrowers or their U.S. representatives 
or their shippers in the U.S. may apply to our Office of Cargo 
Preference for a Conditional Waiver of the U.S.-flag requirement for 
specific overdimensional cargoes if they find that no U.S.-flag liner 
vessel service

[[Page 20853]]

capable of accommodating the multiple shipments of their 
overdimensional cargoes will be available during their proposed project 
time period. Such Conditional Waiver may be for the length of the 
project but not greater than two years from the date of any such waiver 
approval. Also, if during the course of executing a project, U.S.-flag 
liner vessel service ceases to be available to carry the multiple 
shipments of their overdimensional cargoes, the borrower or their 
shippers also may apply for such a Conditional Waiver. Conversely, if a 
U.S.-flag liner vessel service capable of accommodating the cargoes 
commences operations, the Conditional Waiver will be withdrawn.
    Before we will grant a Conditional Waiver, the exporter must meet 
with the U.S.-flag carriers and then must meet separately with our 
Office of Cargo Preference staff, to provide full and complete 
information regarding the project, specifically identifying those 
cargoes on which the waiver is sought. Appendix C lists the information 
that must be presented to us and the carriers.
    We will grant a Conditional Waiver only for those trade lanes in 
which no U.S.-flag liner service capable of accommodating the 
overdimensional cargo is currently available. A Conditional Waiver will 
only cover previously identified and pre-approved specific 
overdimensional cargoes and integral components. If a non-liner U.S.-
flag carrier that is willing to provide the shipper at least thirty 
(30) days notice of their vessel's availability and is willing to carry 
the cargo at a guideline rate that we calculate (see Appendix D), 
becomes available after a Conditional Waiver is granted then that U.S.-
flag carrier will be entitled to carry the cargo, provided the carrier 
meets our conditions of carriage. In such case we will not issue the 
corresponding non-availability waiver letter (see below) for that 
specific cargo voyage.
    Once we grant a Conditional Waiver, in order to meet the needs of 
the government instrumentality for each voyage made under the terms of 
the Conditional Waiver, the shipper must provide us with the government 
instrumentality Credit Number and country, vessel name, registry, 
sailing date, load port, discharge port, cargo weight in kilos, cargo 
volume in cubic meters, revenue tons, FAS value of cargo, ocean 
freight, list of cargoes shipped, and a signed statement certifying 
these specific cargoes were pre-approved by MARAD for shipment under 
the Conditional Waiver. We will then issue a standard non-availability 
waiver letter, for presentation to the government instrumentality for 
each voyage. This standard non-availability waiver letter will cover 
only those cargoes specifically identified with projected shipping 
dates previously agreed to under the Conditional Waiver. A shipper 
wishing to place any additional cargoes on the same voyage must use the 
Statutory non-availability waiver procedure, detailed in Appendix A 
paragraph A, with appropriate notice to the U.S. carriers.
    Within 30 days of vessel sailing, the shipper must submit a 
completed Appendix F form and attach a rated copy of the ocean carriers 
bill of lading. The government instrumentality's Credit Number must be 
provided to the ocean carrier by the shipper and must be shown clearly 
on the rated bill of lading issued by the ocean carrier. We will post 
essential waiver information on our web site for use by bona fide U.S.-
flag carriers and the shipper/applicant.

3. Considerations Influencing Approval of Applications for Waivers

    (A) In evaluating applications for Statutory (Non-Availability) 
Waivers under Paragraph 2(A) we will consider:
    (1) Whether the applicant followed the process set forth in 
Appendix A and provided the waiver information in Appendix B and met 
with the U.S.-flag carriers and with us at the beginning of the project 
to provide the information listed in Appendix C;
    (2) Whether a carrier's proposed transshipment of Long Lead Time or 
Critical Item cargoes for cargo that is loose or non-containerizable 
involves a risk of damage or delay sufficient to constitute non-
availability. However, the shipper must provide sufficient 
documentation acceptable to us such as contracts, certifications, 
engineering data, etc., to prove the cargoes meet the definition of 
Long Lead Time or Critical Items (Appendix E). The shipper must certify 
the foreign-flag carriers will not transship the cargo. MARAD may track 
vessel voyages.
    (3) The national policy of the United States, including the 
Merchant Marine Act of 1936, as amended, as well as the purpose of the 
government instrumentality in authorizing the credit.
    (B) In evaluating applications for General Waivers under Paragraph 
2(B), we will consider:
    (1) The treatment given U.S.-flag vessels in the trade with the 
recipient nation, particularly whether U.S.-flag vessels have equal 
opportunity compared to national-flag or other foreign-flag vessels to 
solicit and participate in movements controlled in the foreign nation; 
parity in the application of consular or other fees, port charges, and 
facilities; also parity of exchange treatment including the privilege 
of converting freight collections to dollars as needed, etc. We will 
seek information from U.S. ship owners and other sources as to their 
experiences in the particular trade.
    (2) The national policy of the United States, including the 
Merchant Marine Act of 1936, as amended, as well as the purpose of the 
government instrumentality in authorizing the credit.
    (C) In evaluating applications for compensatory waivers under 
Paragraph 2(C), we will consider:
    (1) The circumstances leading to the movement on a foreign-flag 
vessel;
    (2) The prior history of the exporter in shipping its government-
impelled and commercial cargoes on U.S.-flag vessels;
    (3) Any previous or current compensatory waivers used by the 
exporter and its efforts to comply with the terms of the previous or 
existing compensatory waivers; and
    (4) The national policy of the United States, including the 
Merchant Marine Act, 1936, as amended, as well as the purpose of the 
government instrumentality in authorizing the credit;
    (D) In evaluating applications for conditional waivers under 
Paragraph 2(D) we will consider:
    (1) Whether the applicant followed the process set forth in 
Appendix A and provided the waiver information in Appendix B and met 
with the U.S.-flag carriers and with us at the beginning of the project 
to provide the information listed in Appendix C;
    (2) Whether a carrier's proposed transshipment of Long Lead Time or 
Critical Item cargoes for cargo that is loose or non-containerizable 
involves a risk of damage or delay sufficient to constitute non-
availability. However, the shipper must provide sufficient 
documentation acceptable to us such as contracts, certifications, 
engineering data, etc., to prove the cargoes meet the definition of 
Long Lead Time or Critical Items (Appendix E). The shipper must certify 
the foreign-flag carriers will not transship the cargo. MARAD may track 
vessel voyages.
    (3) Whether a non-liner carrier's refusal to offer service at or 
below our guideline rate may constitute non-availability. Upon 
application by the shipper and only for Conditional Waivers, we will 
calculate a guideline rate for non-liner service. The rate will be 
expressed as dollars per revenue ton of cargo, as set forth in Appendix 
D.

[[Page 20854]]

    (4) The national policy of the United States, including the 
Merchant Marine Act of 1936, as amended, as well as the purpose of the 
government instrumentality in authorizing credit.
    (E) Providing false information, or concealing facts, or non-
compliance with the terms of a waiver may result in the cancellation of 
the current waiver and/or a refusal to grant future waivers and/or 
other appropriate actions, including debarment from government loans, 
guaranties, or contracts. Civil or criminal fraud will be penalized 
under the appropriate United States Code section. MARAD reserves the 
right to audit any waiver.
    Attachments (these attachments are hereby incorporated into this 
policy):

Appendix A: Waiver Request Procedures
Appendix B: Waiver Request Required Information
Appendix C: Information and Communication Guide
Appendix D: Guideline Rate Policy
Appendix E: Definitions and Miscellaneous Information
Appendix F: Movement Reports Guide

Appendix A

(OMB No. 2133-0013 applies to this collection of information.)

Waiver Request Procedures

A. Statutory (Non-Availability) Waivers

    1. The process begins when public or private foreign borrowers 
or their United States representative, receives or expects to 
receive government instrumentality credit approval. (Note: Shipments 
could begin before the credit approval. See the section on 
Compensatory Waivers.) In the early stages of the project, either 
before or when the credit is approved, the shipper should meet with 
the U.S.-flag carriers and us and discuss the project cargoes 
detailing the information suggested in Appendix C. We will confirm 
the government instrumentality Credit Number.
    2. The shipper must present its Request for Quotation (RFQ) for 
ocean service to the carriers at least forty-five (45) calendar days 
in advance of the intended shipping date. For efficiency, the RFQ 
also should be sent to the Maritime Administration. The RFQ must be 
presented at the same time and with the same information to all 
carriers, both U.S. and foreign. The RFQ must be given to all U.S.-
flag carriers who may have service or could initiate service and 
should contain the most detailed information available regarding the 
commodities, sizes and weights. The shipper must give carriers at 
least fourteen (14) calendar days in which to respond.
    3. The U.S.-flag carriers must respond to the RFQ within 
fourteen (14) calendar days either declining the cargo or providing 
an offer addressing both the rate quotations and the logistical 
needs expressed in the RFQ.
    4. If the shipper cannot obtain service from a U.S.-flag 
carrier, the shipper may apply for a waiver from us. Such waiver 
application must be presented at least thirty (30) calendar days in 
advance of the intended shipping date. The request must contain all 
the required information as shown in Appendix B.
    5. We will review the application, verify the waiver 
documentation provided by the shipper, investigate or request 
further information as necessary, and further search the market for 
U.S.-flag carriers to handle the cargo.
    6. We will either approve or deny the waiver in writing.

B. General Waivers

    1. As set forth in our Policy Statement at paragraph 2(B), a 
foreign borrower or primary U.S. exporter who desires to make 
partial use of registered vessels of the recipient nation for a 
specific U.S. Government instrumentality credit must send a written 
request to our Office of Cargo Preference.
    2. We will make necessary investigations, including 
consultations with U.S.-flag carriers, to determine that parity of 
treatment is extended to U.S.-flag vessels in the foreign trade of 
that nation.
    3. If we do not find discrimination, we will advise the 
applicant that we may grant a General Waiver upon receipt of written 
confirmation of the applicant's agreement to the terms and 
conditions set forth in our Policy Statement at paragraph 2(B). When 
we receive the written confirmation, we will grant the General 
Waiver in writing with a copy to the U.S. Government 
instrumentality.

C. Compensatory Waivers

    1. If a Compensatory Waiver is needed (see our Policy Statement 
paragraph 2(C)), the shipper should apply to us in writing, stating 
the reasons, identifying the government instrumentality Credit 
Number and country, and attaching freighted copies of the ocean 
bills of lading covering the applicable cargoes.
    2. If, after investigation, we decide to grant a Compensatory 
Waiver, we will notify the shipper of the requirements. Those 
requirements include moving whatever amount of revenue tons of non-
government impelled cargo on U.S.-flag vessels are required to 
generate an equivalent or greater amount of ocean freight revenue 
within a specified time period. The shipper must then execute a 
written contract with us affirming they will meet those 
requirements.
    3. Once we receive the written contract from the shipper, we 
will issue the waiver.

D. Conditional Waivers

    1. An applicant for a Conditional Waiver (see our Policy 
Statement paragraph 2(D)) must fulfill the conditions and 
information stated in Appendix C and must identify the specific 
overdimensional and integral component cargoes with projected 
shipping dates during the waiver time period. The shipper must 
search the market for U.S.-flag carriers to transport the identified 
cargoes. If the shipper cannot find such carriers, the shipper may 
apply in writing to us and must provide the information required in 
Appendix B and state the requested beginning and ending dates of the 
conditional waiver period. We must receive the application at least 
sixty (60) calendar days before the intended start of the requested 
Conditional Waiver period.
    2. We will review the application in light of the information 
presented at the earlier meeting, consult with the U.S. carriers, 
and request additional information, as necessary.
    2. If no U.S.-flag carrier which can accommodate the multiple 
shipments of overdimensional cargo can be found, we will grant a 
Conditional Waiver for the agreed time period, conditions, and 
specific identified cargoes.
    4. We will calculate a Guideline Rate for the specific cargoes 
covered under the Conditional Waiver, as set forth in Appendix D, 
and will publish the Guideline Rate on our web site for use by bona 
fide U.S.-flag carriers and the shipper/applicant.
    5. Immediately after each shipment departs the load port, the 
shipper must give us an update of the remaining project cargoes 
previously approved under the Conditional Waiver and an update of 
the projected shipping dates. Forty days prior to the next shipment, 
the shipper must confirm to us the projected load date, place, and 
cargo.
    6. If at any time during the period of the Conditional Waiver, a 
U.S.-flag non-liner carrier gives at least a thirty (30) day notice 
to the shipper and us in which the U.S.-flag non-liner carrier 
offers to carry the cargo at or below the published guideline rate, 
the U.S.-flag non-liner carrier will be entitled to do so provided 
the carrier meets our conditions of carriage. If at any time during 
the period of the Conditional Waiver, a U.S.-flag liner vessel 
service capable of accommodating the cargoes commences operations, 
the Conditional Waiver will be withdrawn.
    7. To meet the needs of the government instrumentality for each 
voyage made under a Conditional Waiver, the shipper must give us the 
government instrumentality Credit Number and country, vessel name, 
registry, sailing date, load port, discharge port, cargo weight in 
kilos, cargo volume in cubic meters, revenue tons, FAS value of 
cargo, ocean freight, list of cargoes shipped, and a signed 
statement certifying these cargoes were pre-approved by MARAD for 
shipment under the Conditional Waver. We will then issue a standard 
non-availability waiver letter for each voyage for presentation to 
the government instrumentality. This standard non-availability 
waiver letter will cover only those cargoes specifically identified 
and previously agreed to under the Conditional Waiver. A shipper who 
wishes to place any additional cargoes on the same voyage must use 
the Statutory non-availability waiver procedure, detailed in 
Appendix A paragraph A, with appropriate notice to the U.S. 
carriers. Within 30 days of vessel sailing, the shipper must submit 
a completed Appendix F form and attach a freighted copy of the ocean 
carriers bill of lading. We will post essential waiver information 
on our web site for use by bona fide U.S.-flag carriers.
    8. A shipper who needs additional time beyond the original 
Conditional Waiver period must apply for an extension by following 
steps 1 through 6 above. After investigation and consultation with 
the U.S. carriers, we may grant an extension.

[[Page 20855]]

Appendix B

(OMB No. 2133-0013 applies to this collection of information.)

PR-17  Waiver Request--Format

    The below information is required to process a Statutory or 
Conditional Waiver request. This information should be mailed or 
faxed to Office of Cargo Preference, Room 8118, Maritime 
Administration, 400 Seventh Street, SW., Washington, DC 20590. Fax 
number is 202-366-5522. Electronic mail address is 
[email protected]

RE: Government Instrumentality Credit No. (Enter the number)--
Country (Enter Country name)

    Applicant: (Name of company seeking the waiver. Should be the 
cargo manufacturer or beneficial owner. If a freight forwarder or 
other party makes the application, it must clearly state on whose 
behalf it is seeking the waiver and that it legally represents said 
party.)
    Vessel: (Name of vessel you propose to use. Enter ``To Be 
Named'' if unknown. Note that actual vessel must be named before a 
final waiver can be issued. Shippers should be aware that PL 105-383 
prohibits the carriage of preference cargoes on substandard vessels. 
See the MARAD web site.)
    Registry: (Nation of registry of vessel. Enter ``To Be Named'' 
if unknown.)
    Commodity: (Short, one-line description similar to Acquisition 
List line items. Attach detailed description as part of packing list 
or similar document.)
    Weight: (Total weight in kilos. Attach details of individual 
shipping components with dimensions and weights as part of packing 
list or similar document.)
    Volume: (Total volume in cubic meters. Attach details of 
individual shipping components with dimensions and weights as part 
of packing list or similar document.)
    Revenue Tons: (shipper's estimate of cargo revenue tons.)
    Value of Shipment: (FAS value in US dollars.)
    Ocean Freight: (Actual or estimated ocean freight charges from 
the carrier whom the applicant proposes to use.)
    Loading Port: (Desired port to load cargo.)
    Loading Date: (Date when cargo will be ready to load.)
    Discharge Port: (Desired port of destination for ocean 
carriers.)

Written Reason(s) for the Waiver Request With Documentation Supporting 
Each Reason Attached

    The following language must be included in any waiver request 
above the signatory block:
    This application is made for the purpose of inducing the United 
States of America to grant a waiver of Public Resolution 17 and the 
policy prescribed to carry out the provisions of PR-17. I have 
carefully examined the application and all documents submitted in 
connection therewith and, to the best of my knowledge, information 
and belief, the statements and representatives contained in said 
application and related documents are full, complete, accurate and 
true.

Signature:
Name (typed):
Title:
Date:

    The Following Documents Must be Attached:
    1. Copy of the ``Request for Quotations (RFQ)'' package which 
the shipper sent to the carriers. The RFQ should contain the most 
detailed information available regarding the commodities, sizes and 
weights. A packing list is preferable.
    2. A list of all carriers, with names of personnel, to whom the 
RFQ was sent.
    3. Copies of responses received from any U.S.-flag carriers.
    4. Documentation supporting each reason justifying the need for 
a waiver. For example, a contract problem requires a copy of the 
applicable contract clauses; a letter of credit problem requires a 
copy of the L/C; U.S.-flag service not available requires copies of 
written declinations by the U.S. carriers; etc.

    Note: The essential terms of the waiver application and cargo 
shipment information will be posted on the Maritime Administration 
web site but restricted to bona fide U.S.-flag carriers.


    Note: The U.S. Criminal Code makes it a criminal offense for any 
person knowingly to make a false statement or representation to, or 
to conceal a material fact from, any department or agency of the 
United States as to any matter within its jurisdiction (18 U.S.C. 
1001), or to file a false, fictitious or fraudulent claim against 
the United States (18 U.S.C. 287). Civil fraud may incur fines of 
$10,000 plus 3 times damages and expenses of government recovery. 
Criminal fraud provides up to 5 years imprisonment. In addition, 
entities may be debarred from further Government contracts.

Appendix C

(OMB No. 2133-0013 applies to this collection of information.)

Information and Communication

    At the beginning of a project shippers should (required for 
Conditional Waivers):

--Meet with the U.S.
--flag ocean carriers
--Meet with the Maritime AdministrationPurpose:

--Lay out project in as much detail as possible
--Discuss contract requirements
--Discuss any unique or expected problem requirements
--Provide best estimates, details, pictures of types of cargo
--Identify any long lead time or critical items
--Discuss what cargoes should move together and why
--Discuss anticipated shipment dates tied to project schedules
--Discuss items which it is doubtful U.S. carriers can handle & 
alternatives
--Obtain carrier capabilities & alternatives
--Establish and maintain a dialogue with U.S. flag carriers

    Note: For Conditional Waivers, the shipper must specify the 
projected overdimensional cargoes and integral components and 
specify their projected shipping dates.

    In addition, for the Maritime Administration meeting:

--Discuss potential waivers, if applicable
--Discuss reporting requirements
--Establish a working relationship with Maritime Administration
    The essential information will be posted on the Maritime 
Administration web site.
    As the project progresses, keep the carriers and Maritime 
Administration informed of progress related to initial projections 
and unforeseen problems as they arise.
    Increased understanding of each party's objectives and 
capabilities will establish better communications and create a 
smoother/faster process.

Appendix D

(OMB No. 2133-0013 and 2133-0514 apply to this collection of 
information.)

    Once a shipper requests a Conditional Waiver of the U.S.-flag 
requirement of PR-17, we will calculate a guideline rate or rates as 
part of the waiver process. The guideline rate will be for the 
proposed movement of a specific cargo or cargoes on a specific 
voyage or voyages on U.S.-flag non-liner vessels. For the purpose of 
this PR-17 policy, the guideline rates will be calculated using the 
basic framework contained in the Maritime Administration regulations 
at 46 CFR part 382.3, except as follows:
    1. We will calculate the guideline rate based on a vessel or 
group of vessels we determine is most suited to the cargo and 
destination.
    2. Costs will be indexed to the year of cargo carriage.
    3. The calculation will assume, unless we determine otherwise, 
that the cargo occupies seventy percent of the cubic capacity of the 
selected vessel(s).
    4. The rate will be specified in U.S. dollars per revenue ton.

Appendix E

(OMB No. 2133-0013 applies to this collection of information.)
    Definitions: The following definitions apply to this PR-17 
policy.
    Breakbulk Cargo: General ``mark and count'' cargo that is 
carried on a ship loose or non-containerized.
    Critical Item Cargo: A product whose non-availability to support 
the required installation date would cause the project to shut down 
or to incur substantial liquidated damages.
    Foreign Borrower: A foreign government, corporation, or person 
who is the recipient of a loan or credit guarantee by an 
instrumentality of the United States.
    Government Instrumentality: An agency or function of the United 
States Government which provides loans or credit guarantees or other 
financial incentives to foster, directly or indirectly, the export 
of any product or service.
    Liner Service: A service provided on an advertised schedule 
giving relatively frequent sailings between specific U.S. ports or 
ranges and designated foreign ports or ranges.
    Long Lead Time Cargo: A product which, if damaged during 
shipment, would require more than six (6) months to repair or

[[Page 20856]]

remanufacture and which is not available sooner from the shipper's 
inventory or from any other manufacturer.
    Ocean Carrier: The operator of the ocean vessel which carries 
the cargo between one or more United States ports and one or more 
foreign ports.
    Overdimensional Cargo: A specific piece of cargo is considered 
overdimensional or out-of-gauge when one or more of its dimensions 
exceed the interior dimensions of a standard maritime industry 
forty-foot container or the cargo weight exceeds 39 metric tons and 
it cannot otherwise be accommodated for safe carriage on a container 
vessel by the use of other specialized equipment.
    Priority of Service: All U.S.-flag service from origin to 
destination is Priority One service and has first preference for 
carriage of the cargo. A combination of U.S.-and foreign-flag 
vessels is Priority Two. If there are competing Priority Two offers, 
the one with the longest U.S.-flag vessel leg of the voyage has 
priority. If MARAD agrees that no Priority One service is available 
then a Priority Two service may be used. If no U.S.-flag service is 
available then MARAD may approve the use of foreign-flag vessels.
    Revenue Ton: A metric ton or cubic meter of cargo, whichever 
yields the greatest revenue to the ocean carrier.
    Shipper: A person or company who is the beneficial owner of the 
cargo and who contracts with a shipping line or shipowner for the 
carriage of cargo.
    Transshipment: The offloading of breakbulk cargo from one vessel 
at an intermediate port and reloading the breakbulk cargo on a 
different vessel for delivery to final destination. It does not 
include cargo in containers, trailers, or barges or other similar 
equipment where the entire conveyance is relayed from one vessel to 
another vessel under a through bill of lading.
BILLING CODE 4910-81-P

[[Page 20857]]

[GRAPHIC] [TIFF OMITTED] TN25AP01.016


[[Page 20858]]


    By Order of the Maritime Administrator.

    Dated: April 20, 2001.

Joel C. Richard,
Secretary, Maritime Administration.

[FR Doc. 01-10283 Filed 4-24-01; 8:45 am]
BILLING CODE 4910-81-C