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

DEPARTMENT OF TRANSPORTATION

Maritime Administration

46 CFR Part 384

[Docket No. R-166]

RIN 2133-AB26

Criteria for Granting Waivers of Requirement for Exclusive U.S.-

Flag Vessel Carriage of Certain Export Cargoes

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Extension of comment period on advance notice of proposed

rulemaking.

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SUMMARY: The Maritime Administration (MARAD) is extending for 45 days

the comment period on an advance notice of proposed rulemaking (ANPRM)

concerning whether MARAD should amend its existing criteria and

methodologies for granting waivers of the requirement for U.S.-flag

vessel carriage of certain cargo covered by Public Resolution 17, 33rd

Congress (PR 17).

DATES: Comments must be received on or before February 10, 1997.

ADDRESSES: To be considered comments must be sent to the Secretary,

Maritime Administration, Room 7210, 400 7th St., S.W., Washington, DC

20590. Comments will become part of this docket. Anyone who wishes to

arrange access to comments filed must telephone the secretary, MARAD,

at (202) 366-5746 during normal business hours. Commenters wishing

MARAD to acknowledge receipt of comments must enclose a stamped self-

addressed envelope or postcard.

FOR FURTHER INFORMATION CONTACT: James J. Zok, Associate Administrator

for Ship Financial Assistance and Cargo Preference, Maritime

Administration, Washington, DC 20590. Telephone (202) 366-0364.

SUPPLEMENTARY INFORMATION: On October 28, 1996, MARAD published an

ANPRM soliciting public comment on whether it should amend its existing

criteria and methodologies for granting a waiver of the requirement for

U.S.-flag vessel carriage of certain cargo covered by PR 17, 46 App.

U.S.C. 1241-1, and if so, what the new waiver procedure should be with

respect to EXIMBANK-financed cargo. Based on comments already submitted

and a request for extension of time to comment, MARAD has decided to

extend the comment period for 45 days. MARAD also asks the public to

comment on the following options and proposals, which are in addition

to those described in the ANRPM.

(1) Should MARAD promulgate a rule that states the objectives and

the procedures that will guide the waiver process so that carriers,

shippers, and freight forwarders will know, as project bids are

formulated, the specific criteria that will affect most waiver

applications? To supplement this, should MARAD also participate, on an

ongoing regular basis, in EXIMBANK/shippers' briefings to assist

shippers in transportation planning for projects?

(2) Should MARAD publish or otherwise make available regular

notices of extant EXIMBANK projects that may require ocean

transportation?

(3) When a shipper is awarded a project which is or may become

subject to the cargo preference laws of the United States via intended

EXIMBANK financing or other events, should MARAD contact in writing

and/or through meetings the shipper, the shipper's representative, and

the U.S.-flag carriers in order to determine the expected cargoes and

shipping dates and requirements for the life of the project? Should

shipper personnel include representatives from the traffic/logistics

and finance departments so that each becomes aware of the EXIMBANK and

MARAD requirements?

(4) If a waiver is desired, should the shipper be required to

notify MARAD and the U.S.-flag carriers at least 45 days before each

actual cargo movement from a port in the United States and provide a

complete packing list and proposed transportation schedule? Should the

notice also be published in a widely disseminated publication, e.g., in

the Transportation News Ticker (TNT), to notify the trade as is common

in other U.S. Government transportation movements, with full and

uniform information on requirements and terms? If there is a waiver

amendment request and the parameters of the shipment substantially

change, should a new notice and re-bids be required? Should there be a

predetermined threshold of change (e.g., 5 percent)?

(5) When the shipper seeks a waiver, should the shipper be required

to furnish documentation in support of the stated reasons for the

waiver request?

(6) Should carriers be required to provide a written response to a

shipper's RFQ/RFP with a time

[[Page 67765]]

limitation? If yes, what time period? Should shippers be required to

attach these written responses to the waiver request?

(7) Should MARAD be required to canvas all U.S.-flag operators on

each waiver request, and establish a reasonable procedure for response

by carriers? Should each carrier designate a specific office or

individual as a point of contact for shippers regarding cargo movements

resulting from EXIMBANK projects?

(8) Should MARAD alter its procedure for considering a waiver for

shippers to move oversize parcels on foreign-flag vessels that cannot

be carried on U.S.-flag carriers? Should MARAD prohibit shippers from

``bundling'' other parcels of cargo with the oversize parcel? If not,

under what circumstances, if any, should shippers be allowed to

``bundle'' their cargoes, so long as this is not done merely to avoid

using U.S.-flag carriers?

(9) Should MARAD allow a ``To Be Named'' (TBN) vessel on the

initial waiver request form to facilitate early (45 days or more)

notice providing, however, that no waiver is granted without a specific

vessel being named?

(10) In addition to the current publicly-published sailing

schedules, should U.S.-flag vessel operators be required to provide

MARAD, on a regular basis, the particulars of their U.S.-flag vessels

or equipment, indicating maximum dimensions, weights and types of cargo

they can handle? Should U.S.-flag carriers be required to furnish

MARAD, on a regular basis, a forward projection of their U.S.-flag

fleet anticipated service areas? If yes, how far projected?

(11) Would the implementation of any changes that would

substantially relax waiver requirements discourage operators from

bringing vessels under or keeping vessels under the U.S. flag by

shrinking the U.S.-flag cargo base? Would such relaxation also deter

the possibility of the bringing in of new breakbulk or roll-on/roll-off

tonnage under the U.S.-flag?

(12) What system could best ensure that the actual shipment (as

reflected in the bill of lading) conforms to the terms, conditions, and

specifications of the waiver granted?

By order of the Maritime Administrator.

Edmund T. Sommer, Jr.,

Acting Secretary, Maritime Administration.

[FR Doc. 96-32656 Filed 12-23-96; 8:45 am]

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