[Federal Register Volume 69, Number 173 (Wednesday, September 8, 2004)]
[Rules and Regulations]
[Pages 54247-54248]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-20321]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration

46 CFR Part 221

[Docket No. MARAD 2004-19030]
RIN 2133-AB55


Trading Restrictions on Vessels Transferred to a Foreign 
Registry: Amendment of List of Prohibited Countries

AGENCY: Maritime Administration, DOT.

ACTION: Final rule.

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SUMMARY: In accordance with foreign policy considerations, the Maritime 
Administration (MARAD) currently prohibits the foreign transfer of an 
interest in or control of certain U.S. documented or previously U.S. 
documented vessels to an entity in the foreign countries listed in the 
Department of Commerce's list of prohibited countries set forth in 
Country Group E. Currently, the rule specifically lists the countries 
set forth in Country Group E. This final rule amends regulations to 
incorporate Country Group E by reference and eliminates the separate 
listing.

EFFECTIVE DATE: This final rule is effective on September 8, 2004.

ADDRESSES: This final rule is available for inspection and copying 
between 10 a.m. and 5 p.m., Monday through Friday, except Federal 
holidays, at the Docket Clerk, U.S. DOT Dockets, Room PL-401, 
Department of Transportation, 400 7th St., SW., Washington, DC 20590-
0001. An electronic version of this document along with all documents 
entered into this docket is available on the World Wide Web at http://dms.dot.gov.

FOR FURTHER INFORMATION CONTACT: Len Sutter, Attorney-Advisor, Office 
of Chief Counsel, Division of Maritime Programs, Maritime 
Administration, at (202) 366-5177, fax (202) 366-7485.

SUPPLEMENTARY INFORMATION:
    Under 46 CFR part 221, subpart B--Transfers to Noncitizens or to 
Registry or Operation under Authority of a Foreign Country (Subpart B), 
MARAD implements authority provided by 46 U.S.C. 808(c)(1) to regulate 
the transfer to foreign ownership and registry of certain U.S. 
documented vessels. Currently, under subpart B, certain ownership, 
registry and trading restrictions apply to entities in certain foreign 
countries set forth in 46 CFR 221.13(a)(4) (MARAD Prohibited 
Countries). For this purpose, MARAD incorporates the countries listed 
by the Department of Commerce in 15 CFR part 740, Supplement 1, Country 
Group E (Country Group E Prohibited Countries). In lieu of reproducing 
the list of Country Group E Prohibited Countries in MARAD's 
regulations, and amending our regulations each time the list is 
changed, this final rule amends 46 CFR 221.13(a)(4) to incorporate the 
Country Group E Prohibited Countries list by reference in MARAD's 
regulations. In this manner, MARAD's regulations will remain current 
with any changes made by the Department of Commerce to the Country 
Group E list of Prohibited Countries.

Rulemaking Analyses and Notices

Executive Order 12866 (Regulatory Planning and Review), and Department 
of Transportation (DOT) Regulatory Policies; Pub. L. 104-121

    Under Executive Order 12866, the Office of Management and Budget

[[Page 54248]]

(OMB) has determined that this final rule is a significant regulatory 
action. Accordingly, it was submitted to OMB for review. Changes made 
in response to OMB suggestions or recommendations will be documented in 
the public record. This final rule is not economically significant, as 
it is not likely to result in an annual effect on the economy of $100 
million or more. It is also not considered a major rule for purposes of 
Congressional review under Pub. L. 104-121. Finally, it is not 
significant under the Regulatory Policies and Procedures of the 
Department of Transportation (44 FR 11034, February 26, 1979).
    Under Executive Order 12866 and the Department of Transportation 
Regulatory Policies, Pub. L. 104-121, the costs associated with this 
rule are so minimal that further analysis is not necessary. This final 
rule should result in a net economic benefit, as it reduces the number 
of prohibited countries, from fourteen (14) in MARAD's current list, to 
six (6) on the current Country Group E list, which functionally lifts a 
restraint on trade in the marketplace. In addition, this rule will 
result in administrative efficiencies, as it will obviate the need for 
further rulemakings to keep the list of prohibited countries in MARAD's 
regulations congruent with the Country Group E list.

Administrative Procedure Act

    The Administrative Procedure Act (5 U.S.C. 553) provides an 
exception to notice and comment procedures when they are unnecessary or 
contrary to the public interest. MARAD finds that under 5 U.S.C. 
553(b)(3)(B), good cause exists for not providing notice and comment 
since this final rule is ministerial and merely implements a recognized 
list of prohibited countries, with no issues of policy discretion. 
Accordingly, opportunity for public comment is unnecessary. Under 5 
U.S.C. 553(d)(3), MARAD finds that, for the same reasons listed above, 
good cause exists for making this rule effective less than 30 days 
after publication in the Federal Register.

Federalism

    We analyzed this final rule in accordance with the principles and 
criteria contained in Executive Order 13132 (``Federalism'') and have 
determined that it does not have sufficient federalism implications to 
warrant the preparation of a federalism summary impact statement. The 
regulations have no substantial effects on the States, the current 
Federal-State relationship, or the current distribution of power and 
responsibilities among local officials. Therefore, consultation with 
State and local officials was not necessary.

Executive Order 13175

    MARAD does not believe that this final rule will significantly or 
uniquely affect the communities of Indian tribal governments when 
analyzed under the principles and criteria contained in Executive Order 
13175 (Consultation and Coordination with Indian Tribal Governments). 
Therefore, the funding and consultation requirements of this Executive 
Order do not apply.

Regulatory Flexibility

    The Maritime Administrator certifies that this final rule will not 
have a significant economic impact on a substantial number of small 
entities. Although there may be a substantial number of small business 
vessel owners who may desire to transfer their vessels to the foreign 
registry of a prohibited country, the economic impact will not be 
significant because under U.S. foreign policy, the vessel owners may 
not participate in trade activities with these prohibited countries.

Environmental Assessment

    We have analyzed this final rule for purposes of compliance with 
the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
and have concluded that under the categorical exclusions provision in 
section 4.05 of Maritime Administrative Order (MAO) 600-1, ``Procedures 
for Considering Environmental Impacts,'' 50 FR 11606 (March 22, 1985), 
neither the preparation of an Environmental Assessment, an 
Environmental Impact Statement, nor a Finding of No Significant Impact 
for this rulemaking is required. This rulemaking has no environmental 
impact.

Paperwork Reduction Act

    This rulemaking contains no new or amended information collection 
or recordkeeping requirements that have been approved or require 
approval by the Office of Management and Budget.

Unfunded Mandates Reform Act of 1995

    This final rule will not impose an unfunded mandate under the 
Unfunded Mandates Reform Act of 1995. It will not result in costs of 
$100 million or more, in the aggregate, to any of the following: State, 
local, or Native American tribal governments, or the private sector. 
This final rule is the least burdensome alternative that achieves this 
objective of U.S. policy.

List of Subjects in 46 CFR Part 221

    Administrative practice and procedure, Maritime carriers, 
Mortgages, Penalties, Reporting and recordkeeping requirements, Trust 
and trustees.

0
For the reasons set forth in the preamble, 46 CFR part 221 is amended 
as follows:

PART 221--[AMENDED]

0
1. The authority citation for part 221 continues to read as follows:

    Authority: 46 App. U.S.C. 802, 803, 808, 835, 839, 841a, 
1114(b), 1195; 46 U.S.C. chs. 301 and 313; 49 U.S.C. 336; 49 CFR 
1.66.


Sec.  221.13  [Amended]

0
2. Section 221.13 is amended in paragraph (a)(4) by removing the words 
``an entity within the geographic area formerly known as the Union of 
Soviet Socialist Republics, Latvia, Lithuania, Estonia, Libya, Iraq, 
Bulgaria, Albania, North Korea, Laos, Cambodia, Mongolian Peoples 
Republic, Vietnam, or Cuba,'' and by inserting in their place the words 
``an entity within any country listed by the Department of Commerce in 
15 CFR part 740, Supplement 1, Country Group E''.

    By Order of the Maritime Administrator.

    Dated: September 2, 2004.
Joel C. Richard,
Secretary, Maritime Administration.
[FR Doc. 04-20321 Filed 9-7-04; 8:45 am]
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