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DOT/MARAD

RIN: 2133-AB74

Publication ID: Fall 2011

Title: Regulations To Be Followed by All Departments, Agencies, and Shippers Having Responsibility To Provide a Preference for U.S.-Flag Vessels in the Shipment of Cargoes on Ocean Vessels
Abstract: This rulemaking would revise and clarify the Cargo Preference rules that have not been revised substantially since 1971. Revisions would include an updated purpose and definitions section along with the removal of obsolete provisions. This rulemaking also would establish a new part 383 of the Cargo Preference regulations. This rulemaking would cover Public Law 110-417, section 3511, National Defense Authorization Act for FY 2009 changes to the cargo preference rules, which have not been substantially revised since 1971. The rulemaking also would include compromise, assessment, mitigation, settlement, and collection of civil penalties. Originally the agency had two separate rulemakings in process under RIN 2133-AB74 and 2133-AB75. RIN 2133-AB74 would have revised existing regulations and RIN 2133-AB75 would have established a new part 383: Guidance and Civil Penalties and implement Public Law 110-417, section 3511, National Defense Authorization Act for FY 2009. MARAD has decided it would be more efficient to merge both efforts under one; RIN 2133-AB75 has been merged with this action.
Agency: Department of Transportation(DOT)	Priority: Other Significant
RIN Status: Previously published in the Unified Agenda	Agenda Stage of Rulemaking: Proposed Rule Stage
Major: No	Unfunded Mandates: No
CFR Citation: 46 CFR 381
Legal Authority: 49 CFR 1.66 46 app USC 1101 46 app USC 1241 46 USC 2302 (e)(1) PL 91-469

Legal Deadline: None

Statement of Need: On September 4, 2009, the USDA, MARAD, and USAID entered into a MOU regarding the proper implementation of the Cargo Preference Act. The MOU establishes procedures and standards by which owners and operators of oceangoing cargo ships may seek to designate each of their vessels as either a dry bulk carrier or a dry cargo liner, according to specified service-based criteria. With the help of OMB, these agencies are in the process of negotiating updates to the comprehensive cargo preference rule, which has not been significantly changed since 1971.

Summary of the Legal Basis: The Cargo Preference Act requires that Federal agencies take necessary and practicable steps to ensure that privately owned U.S.-flag vessels transport at least 50 percent of the gross tonnage of cargo sponsored under Federal programs to the extent such vessels are available at fair and reasonable rates for commercial vessels of the U.S., in a manner that will ensure a fair and reasonable participation of commercial vessels of the U.S. in those cargoes by geographic areas. 46 U.S.C. 55305(b). An additional 25 percent of gross tonnage of certain food assistance programs is to be transported in accordance with the requirements of 46 U.S.C. 55314.

Alternatives: TBD

Anticipated Costs and Benefits: TBD

Risks: TBD

Timetable:

Action	Date	FR Cite
NPRM	05/00/2012

Regulatory Flexibility Analysis Required: No	Government Levels Affected: None
Small Entities Affected: No	Federalism: No
Included in the Regulatory Plan: Yes
RIN Information URL: www.regulations.gov	Public Comment URL: www.regulations.gov
RIN Data Printed in the FR: No
Related RINs: Related to 2133-AB75
Agency Contact: Christine Gurland Department of Transportation Maritime Administration 1200 New Jersey Avenue SE., Washington, DC 20590 Phone:202 366-5157 Email: christine.gurland@dot.gov