[Federal Register Volume 80, Number 103 (Friday, May 29, 2015)]
[Notices]
[Pages 30759-30761]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-13019]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration


Recognition Awards for U.S.-Flag Vessel Usage

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Notice.

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SUMMARY: By this notice the Maritime Administration (MARAD) announces 
the ``U.S. Ships'' program to recognize private commercial entities 
that reach certain U.S.-flag vessel usage rates for the carriage of 
goods or private or governmental entities that otherwise make 
noteworthy contributions to utilization of U.S.-flag vessels. The 
initial nomination period for awards recognizing support for U.S.-flag 
carriage in 2015 will open January 4, 2016. MARAD will publish another 
Federal Register Notice prior to opening the nomination period to 
provide additional information about this program, including additional 
information on specific awards eligibility, criteria, and nomination 
procedures. Consistent with the established policy of the United States 
to encourage and aid the development and maintenance of a robust 
maritime industry, and MARAD's mission to ``foster, promote, and 
develop the merchant maritime industry of the United States,'' MARAD 
will issue recognition awards to encourage the use of U.S.-flag 
vessels, whether in domestic or international commerce. This notice 
informs the public of this awards recognition program in anticipation 
of nominations and articulates the criteria for U.S. Ships recognition 
awards.

DATES: This policy is effective upon publication in the Federal 
Register. (See also Paperwork Reduction Act section.)

FOR FURTHER INFORMATION CONTACT: You may contact Clifford Johnson, 
Office of Cargo and Commercial Sealift, Maritime Administration, at 
(202) 366-2105. You may send mail to Mr. Johnson at Maritime 
Administration, 1200 New Jersey Avenue SE., MAR 620, Washington, DC 
20590-0001. You may send electronic mail to [email protected].

SUPPLEMENTARY INFORMATION: 

Background

    The promotion of the United States maritime industry is a central 
mission of MARAD. The Merchant Marine Act of 1936 was enacted to 
promote a well-equipped and efficient fleet owned and operated by 
United States citizens and supported by domestic shipbuilding and 
repair facilities.\1\ MARAD was specifically formed as a maritime 
promotional entity separate from the Federal Maritime Commission.\2\ 
The Message of the President transmitting Plan 7 states that the 
``basic objective of the plan is to strengthen and revitalize the 
administration of our Federal programs concerned with the promotion and 
development of the U.S. merchant marine by concentrating responsibility 
in separate agencies for the performance of regulatory and promotional 
functions.''
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    \1\ American Trading Transportation Company, Inc. v. United 
States, 791 F.2d 942, 944 (D.C. Cir. 1986).
    \2\ Reorganization Plan No. 7 of 1961, 75 Stat. 840 (August 12, 
1961).
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    It is central to MARAD's promotional mission to encourage and aid 
the development of the U.S. merchant maritime industry. 49 U.S.C. 
109(b). Consistent with the Military Cargo Preference Act of 1904 and 
the Cargo Preference Act of 1954, as implemented by 46 CFR part 381, 
MARAD's Office of Cargo and Sealift Support maintains a program to 
ensure compliance with statutory requirements requiring U.S.-flag 
vessel carriage of Government-generated cargo. Just as important as 
encouraging the use of U.S.-flag vessels for the carriage of 
Government-generated cargo, it is part of MARAD's mission to encourage 
both private parties and Government agencies to use U.S.-flag vessels 
to carry their goods. The purpose of the U.S. Ships program is to help 
to encourage broad, voluntary use of U.S.-flag vessels in a manner 
complementary to required cargo preference.

Components of the U.S. Ships Recognition Program

    By this notice, MARAD announces the establishment of the U.S. Ships 
recognition awards program as described below. The purpose of these 
recognition awards is to encourage the use of U.S.-flag vessels for 
carriage of exports, imports, cargoes moving in foreign waters, and 
goods moving within the United States and along its coasts. The awards 
are also intended to educate and remind the public of the value of a 
strong U.S. maritime industry for national security and economic 
stability.

U.S. Ships Logo

    MARAD will develop a U.S. Ships logo. Award recipients will be 
granted a license to display variations of the logo, as described 
below, on their premises, equipment, publications, advertising, 
uniforms, or correspondence within the context of being a U.S. Ships 
award recipient. Recipients may not use the logo to claim that the 
Department of Transportation or MARAD promotes or endorses their 
company, products, and/or services. U.S. Ships awardees will be 
permitted to display their status using the U.S. Ships logo and the 
year in which they earned the award. The logo will be released to 
recipients only in non-editable electronic format.

[[Page 30760]]

    MARAD will have the right, at all reasonable times, to examine an 
award recipient's goods, services, and promotional activities employing 
a U.S. Ships logo to ensure that such use is reasonable, of proper 
quality, and is otherwise consistent with the license, and may 
terminate the license should it determine that the use is inconsistent.
    The license is not assignable. Award recipients may not share the 
use of the U.S. Ships logo with any other person, organization, or 
company, nor may it transfer or assign its license to use the logo if 
its company is sold, merged, or reconfigured. An award recipient who 
hires subcontractors to perform manufacturing or distribution 
activities will be allowed to use the logo without risk of jeopardizing 
its license to use the logo.

Nomination and Review Process

    Entities may apply, self-nominate, or be nominated for recognition 
by third-parties including Government agencies. MARAD reserves the 
right to request additional information to support nominations and to 
verify those nominations and supporting information. Individuals that 
make nominations will be required to certify that, to the best of their 
knowledge, the entity they are nominating is eligible for the specified 
U.S. Ships award. MARAD will provide information on how to submit 
nominations in a future Federal Register Notice.
    MARAD will consider the information contained in a nomination or 
application to be business confidential and will treat it as such to 
the extent permitted by law.
    MARAD will determine whether nominated entities have any business 
before or are under investigation by regulatory agencies. If MARAD 
determines that adverse information exists that would likely be adverse 
to the U.S. Government should the U.S. Ships award be granted, the 
nomination will be rejected without further consideration.

Awards for Fixing Cargo on U.S.-flag Vessels

    These awards will recognize non-Governmental shipper entities that 
achieve specified U.S.-flag vessel usage rates for a calendar year as 
determined by gross revenue tons. Entities eligible to receive awards 
include any U.S. or foreign entity that achieved at least the 
applicable percentage threshold for U.S.-flag carriage during the 
applicable calendar year of their domestic movements of goods or 
international shipments other than Government-generated cargo. Covered 
carriage includes imports, exports, water carriage outside the United 
States, and freight and cargo shipments between points in the United 
States, including goods that might otherwise move over land. Recipients 
will be permitted to display the U.S. Ships logo for achievements at 
the following percentage levels of shipper freight or cargo carriage 
aboard U.S.-flag vessels:

a. Gold--50%-plus
b. Silver--40-49%
c. Bronze--30-39%

Percentage brackets may be adjusted in later years. Awards will 
authorize the licensed use of the appropriate level of U.S. Ships logo; 
award notices will be transmitted soon as possible after administrative 
approval, normally by the end of the first calendar quarter of each 
year.

Cargo Preference Ship Management and Resource Training (SMART) Awards

    These awards will recognize private and Governmental entities which 
have at least 50% of their staffs involved in booking or cargo-
preference-related processes successfully complete the Office of Cargo 
and Commercial Sealift online cargo preference training courses. These 
courses are currently under development and the first awards would be 
made for activities undertaken in 2016. Recipients would qualify to 
display the blue U.S. Ships logo for a period up to three years, 
subject to subsequent recertification. This award is intended to 
distinguish shippers, freight-forwarders, and brokers which have 
facilitated U.S.-flag usage through staff education on cargo preference 
requirements. Awards will authorize the licensed use of the blue U.S. 
Ships logo; award notices will be transmitted at any time during the 
year as soon as possible after administrative approval.

The Extra Ton-Mile Awards

    MARAD will accept nominations for noteworthy, non-numerical 
contributions to the utilization of U.S.-flag vessels through an annual 
nomination process. Up to six private or Governmental entities or 
individuals may receive this award annually. Eligible recipients 
include any individual or entity that engaged in activities other than 
the marketing of products that assisted or facilitated the usage of 
U.S.-flag carriage by providing financing, transportation, promotion, 
or other export or import assistance or facilitation service during the 
applicable calendar year. Recipients would receive official recognition 
from MARAD and would be permitted to use a special, red-white-and-blue 
U.S. Ships logo for a period of three years following receipt. MARAD 
will announce recipients of these awards at its annual Maritime Day 
observance. The following is a non-exclusive list of actions that might 
qualify for this award:
     Exclusive use of U.S.-flag carriage to the extent 
available.
     Significantly increased usage of U.S.-flag carriage 
through voluntary action.
     Exceptional advocacy encouraging the use of U.S.-flag 
vessels or compliance with MARAD's cargo preference requirements.
     Exceptional facilitation of U.S.-flag vessel usage.
     Development of technical advances or commercial practices 
that facilitate or enhance U.S.-flag vessel usage.
     Employment of high-performance business processes to 
ensure U.S.-flag vessel usage.

The Maritime Administrator will appoint a panel of Federal officials to 
consider all nominations and recommend recipients to the Maritime 
Administrator, who will make final award determinations.

Policy Analysis and Notices

    Consistent with the Administrative Procedures Act and Department of 
Transportation rulemaking policy, MARAD is publishing this notice in 
the Federal Register to indicate how it plans to exercise the 
discretionary authority provided by 49 U.S.C. 109. Nothing in this 
notice or in the policy itself requires MARAD to exercise its 
discretionary authority under the law.

Statutory and Executive Order Reviews

    Under Executive Order 12866, Regulatory Planning and Review (58 FR 
51735, October 4, 1993), this action is not a ``significant regulatory 
action'' and, is, therefore, not subject to review by the Office of 
Management and Budget (OMB).
    Paperwork Reduction Act: Under the Paperwork Reduction Act of 1995 
(PRA) (44 U.S.C. 3501-3520), a Federal agency must obtain approval from 
the OMB for each collection of information it conducts, sponsors, or 
requires. The U.S. Ships recognition awards program may impose new 
collection requirements when MARAD opens the nomination period. MARAD 
will conduct a full PRA analysis and include it in the Federal Register 
Notice released at that time and obtain an information collection 
number if required.

(Authority: 49 U.S.C. 109)

    Dated: May 26, 2015.


[[Page 30761]]


    By Order of the Maritime Administrator.
Thomas M. Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2015-13019 Filed 5-28-15; 8:45 am]
 BILLING CODE 4910-81-P