[Federal Register Volume 67, Number 232 (Tuesday, December 3, 2002)]
[Notices]
[Pages 72024-72025]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-30586]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration

[Docket No. MARAD-2002-13067]


Requested Non-availability Waiver

AGENCY: Maritime Administration, Department of Transportation 
(``MARAD'', ``we'', ``us'' or ``our'').

ACTION: Notice of termination of consideration of requested 
administrative finding under the Merchant Marine Act of 1936, as 
amended, (Act) to allow cargo carriage by a non-qualified U.S.-flag 
vessel in the absence of available qualified U.S.-flag vessels.

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SUMMARY: The Act (46 App. U.S.C. 1241(b)), requires that at least 50 
percent of Government-sponsored cargoes (75 percent with regard to 
certain agricultural exports) transported on ocean-going vessels be 
transported on certain U.S.-flag vessels when such vessels are 
available at a fair and reasonable rate for U.S.-flag commercial 
vessels. The statute excludes from eligibility to carry such cargoes 
foreign built or foreign rebuilt vessels or vessels previously 
registered under a foreign flag, unless the vessel has been registered 
under the United States flag for at least three years. Implicit in the 
statute is that, upon a finding by MARAD that U.S.-flag privately owned 
commercial vessels are not available for a fair and reasonable rate for 
U.S.-flag vessels, a foreign-flag may be used.
    The Government of Israel, Ministry of Defense (GOI-MOD) purchases 
jet fuel from the Defense Security Cooperative Agency (DSCA) under the 
Foreign Military Sales Program. The cargo is subject to the Act, which 
requires 50 percent U.S.-flag carriage, but longstanding U.S. 
Government policy set forth in the DSCA manual requires 100 percent 
U.S.-flag carriage. GOI-MOD has expressed a concern that qualified 
U.S.-flag vessels may not be available in 2004 and beyond, due to many 
U.S.-flag tankers being retired under the Oil Pollution Act of 1990. 
GOI-MOD requested that MARAD allow future use of U.S.-flag vessels 
which have not met the three year wait requirement to carry preference 
cargo only when no fully

[[Page 72025]]

qualified U.S.-flag vessel is available, thus meeting the U.S.-flag 
requirement and providing employment for U.S. citizen mariners.
    We published a notice on August 13, 2002, 67 FR 52771, inviting 
comments in this docket on how we should respond to this innovative 
suggestion. The preponderance of comments urged us to delay taking any 
action because the requested finding would not be needed, if at all, 
until 2003. Other comments supported and opposed the request 
altogether. After review of these and other comments received, we will 
not take any action at this time.

ADDRESSES: Comments are not solicited, but if you so desire, you may 
submit comments. Comments should refer to docket number MARAD-2002-
13067. 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., SW., Washington, DC 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: Thomas W. Harrelson, Director, Office 
of Cargo Preference, MAR-580 Room 8118, 400 7th St., SW., Washington, 
DC 20590. Telephone no. (202) 366-5515.

    Dated: November 27, 2002.
    By Order of the Maritime Administrator.
Joel C. Richard,
Secretary, Maritime Administration.
[FR Doc. 02-30586 Filed 12-2-02; 8:45 am]
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