[Federal Register Volume 72, Number 219 (Wednesday, November 14, 2007)]
[Notices]
[Page 64109]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-22189]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration

[Docket No. MARAD-2007 0012]


Determination of Foreign Reconstruction or Rebuilding of U.S.-
Built Vessels That Participate in the Capital Construction Fund and 
Cargo Preference Programs

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Notice and Request for Comments.

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SUMMARY: The Maritime Administration seeks public comment on what 
standards the Maritime Administration should apply when making 
determinations of foreign reconstruction of U.S.-built vessels that 
participate in the Capital Construction Fund program and foreign 
rebuilding of U.S.-built vessels that participate in the cargo 
preference program.

DATES: Comments are due January 14, 2008.

ADDRESSES: You may submit comments by any of the following methods:
     Web Site: http://regulations.gov. Follow the instructions 
for submitting comments on the Federal Dockets Management System (FDMS) 
electronic docket site.
     Mail: Docket Management Facility; U.S. Department of 
Transportation, 1200 New Jersey Ave., SE., Washington, DC 20590-0001. 
Faxed or hand-delivered submissions must be unbound, no larger than 
8\1/2\ by 11 inches, and suitable for copying and electronic scanning. 
Mailed submissions requiring confirmation of receipt should include a 
stamped, self-addressed postcard or envelope.
     Hand Delivery: Plaza level of Department of Transportation 
Headquarters, 1200 New Jersey Ave., SE., Washington, DC 20590-0001, 
between 9 a.m. and 5 p.m., Monday through Friday, except Federal 
holidays.
    Instructions: All submissions must include the agency name and 
docket number for this action. Regardless of the method used for 
submitting comments or material, all submissions will be posted, 
without change, to the FDMS Web site (http://regulations.gov), and will 
include any personal information provided. Therefore, submitting this 
information makes it public. Please read the Privacy Act notice that is 
available on the FDMS Web site, or the Department of Transportation 
Privacy Act statement that appeared in the Federal Register on April 
11, 2000 (65 FR 19477).
    Docket: For access to the docket to read background documents or 
comments received, go to http://regulations.gov.
    Privacy Act: Anyone is able to search the electronic form of all 
comments received into any of our dockets by the name of the individual 
submitting the comment (or signing the comment, if submitted on behalf 
of an association, business, labor union, etc.). You may review the 
Department of Transportation's complete Privacy Act Statement in the 
Federal Register published on April 11, 2000 (Volume 65, Number 70; 
Pages 19477-78).

FOR FURTHER INFORMATION CONTACT: Murray A. Bloom, Chief, Division of 
Maritime Programs, Office of Chief Counsel, Maritime Administration, 
1200 New Jersey Ave., SE., Washington, DC 20590; Ph. (202) 366-5320, 
fax: (202) 366-5123; or e-mail [email protected].

SUPPLEMENTARY INFORMATION: There are three maritime promotional 
statutes that mandate the use of U.S.-built vessels and generally 
provide that a U.S.-built vessel becomes ineligible if the vessel is 
reconstructed or rebuilt in a foreign country.
    1. Section 12132(b) of title 46, United States Code, provides that 
a vessel eligible to engage in the U.S. coastwise trade and later 
rebuilt outside the United States may no longer engage in the coastwise 
trade. This statute is administered by the U.S. Coast Guard.
    2. Chapter 535 of title 46, United States Code, established the 
Capital Construction Fund (CCF) program, whereby a U.S. citizen owner 
of an eligible vessel may defer Federal income taxes on income derived 
from the operation of eligible vessels to the extent that income is 
deposited into a fund to be used solely for the acquisition, 
construction or reconstruction of qualified vessels. The statutory 
definitions of both ``eligible'' and ``qualified'' vessels require such 
vessels, if reconstructed, to be reconstructed in the United States. 
The Maritime Administration administers the CCF program (except for the 
CCF applicable to fishery vessels administered by the National Oceanic 
and Atmospheric Administration) under regulations located at 46 CFR 
390.
    3. Chapter 553 of title 46, United States Code, provides that 
preference be given in the carriage of U.S. Government-impelled cargoes 
to ``privately-owned commercial vessels of the United States.'' That 
term is defined by statute as excluding a vessel rebuilt in a foreign 
country, unless the vessel shall have been documented under U.S. 
registry for at least three years. The shippers responsible for 
shipping cargo subject to the cargo preference statutes do so under 
regulations issued by the Maritime Administration at 46 CFR Part 381.
    These three statutes raise difficult problems of interpretation and 
enforcement. The Maritime Administration will consider any and all 
comments as to how the Maritime Administration should administer the 
programs assigned to it. However, in order to focus the discussion, we 
suggest that submitters of comments respond to the following questions:
    1. What substantive standards should the Maritime Administration 
apply to determine whether a CCF vessel has been reconstructed or a 
cargo preference vessel has been rebuilt?
    2. What procedures should the Maritime Administration adopt to 
investigate whether a CCF vessel has been reconstructed or a cargo 
preference vessel has been rebuilt?
    3. What role, if any, should unrelated third parties, such as 
competitors or shipyards, play in developing a record for decision on 
whether a CCF vessel has been reconstructed or a cargo preference 
vessel has been rebuilt?
    4. What public disclosure criteria should apply to the record for 
decision on whether a CCF vessel has been reconstructed or a cargo 
preference vessel has been rebuilt?

    Authority: 49 CFR 1.66.


    Dated: November 7, 2007.

    By Order of the Maritime Administrator.
Christine S. Gurland,
Acting Secretary, Maritime Administration.
[FR Doc. E7-22189 Filed 11-13-07; 8:45 am]
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