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(46 U.S.C. 808, 835 and 839), or the Maritime Administration's contract with the foreign owner, will be authorized by notification in the form of a Transfer Order to all interested parties, upon the receipt of the executed contract, the required bond or other surety, and other supporting documents required by said contract.

In order that the Maritime Administration's records may be maintained on a current basis, the owner or transferee of the ship is required to notify the Maritime Administration of the date and place where the approved transaction was completed, and the name of the vessel, if changed. This information relating to the completion of the transaction and the change in name should be furnished to the Maritime Administration as soon as possible, but not later than ten days after the same las occurred. III. VESSELS UNDER 3,000 GROSS TONS Generally, the Maritime Administration will grant approvals required by Sections 9 or 87 or both of the Shipping Act, 1916, as amended, of vessels of under 3,000 gross tons provided the vessel is not needed for reasons of national defense and provided also that the foreign buyer and country of registry are acceptable to the Maritime Administration. Except in unusual circumstances, no conditions will be imposed.

[29 F.R. 12030, Aug. 22, 1964, as amended by Amdt. 1, 32 F.R. 4499, Mar. 24, 1967]

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222.3

222.4

Penalty.

Notice of failure to comply herewith and that petition for relief may be filed.

222.5 Petition for relief.

AUTHORITY: The provisions of this Part 222 issued under sec. 21, 39 Stat. 736, as amended, sec. 204, 49 Stat. 1987, as amended; 46 U.S.C. 820, 1114, except as otherwise noted. § 222.1 Statements required to be filed pursuant to section 807, Merchant Marine Act, 1936.

(a) Statement of shipbuilder or ship operator. Every shipbuilder or ship operator holding or applying for a contract under the provisions of the Merchant Marine Act, 1936, as amended, and every subsidiary, affiliate, associate, or holding company of such shipbuilder or ship operator who employs or re

tains any person (as defined in paragraph (c) of this section) to present, advocate, or oppose, before Congress or any committee thereof, or before the Secretary of Commerce, the Federal Maritime Board, or the Maritime Administration, any matter within the scope of the Shipping Act, 1916, as amended, the Merchant Marine Act, 1920, as amended, the Merchant Marine Act, 1928, as amended, the Intercoastal Shipping Act, 1933, as amended, or the Merchant Marine Act, 1936, as amended, before performance by such person pursuant to such employment or retainer, shall file with the Secretary, Federal Martime Board/Maritime Administration, a statement containing the information specified in Form MA-807-1. While it is not required that Form MA807-1 be used, the statement must contain the information required by that form and the information must be arranged in the manner prescribed by that form. Copies of Form MA-807-1 may be obtained from the Secretary, Federal Maritime Board/Maritime Administration. Any changes which may occur in answer to any of the items in the statement shall be reported to the Secretary, Federal Maritime Board/Maritime Administration, within 10 days after such change.

(b) Statement of person employed or retained. Every person (as defined in paragraph (c) of this section) employed or retained by any shipbuilder or ship operator holding or applying for a contract under the provisions of the Merchant Marine Act, 1936, as amended, or employed or retained by any subsidiary, affiliate, associate, or holding company of such shipbuilder or ship operator to present, advocate, or oppose, before Congress or any committee thereof, or before the Secretary of Commerce, the Federal Maritime Board, or the Maritime Administration, any matter within the scope of the Shipping Act, 1916, as amended, the Merchant Marine Act, 1920, as amended, the Merchant Marine Act, 1928, as amended, the Intercoastal Shipping Act, 1933, as amended, or the Merchant Marine Act, 1936, as amended, shall file with the Secretary, Federal Maritime Board/Maritime Administration, within 30 days after the close of each calendar month during the period of such retainer or employment, a statement containing the information specified in Form MA-807-2. While it is not

required that Form MA-807-2 be used, the statement must contain the information required by that form and the information must be arranged in the manner prescribed by that form. Copies of Form MA-807-2 may be obtained from the Secretary, Federal Maritime Board/Maritime Administration.

(c) Definition of "person". For the purpose of this section, the term person is defined as in section 905 (b) of the Merchant Marine Act, 1936.

(d) Additional information. The Federal Maritime Board and the Maritime Administrator reserve the right to require the filing of additional information in any given case.

(Bec. 807, 49 Stat. 2014, as amended; 46 U.S. C. 1225) [22 F. R. 1087, Feb. 22, 1957]

NOTE: The reporting requirements contained in this section have been approved by the Bureau of the Budget in accordance with the Federal Reports Act of 1942.

§ 222.2 Forms of vessel utilization and performance reports prescribed.

(a) Pursuant to authority of section 212(A) of the Merchant Marine Act, 1936, as amended by Public Law 612, 84th Congress; 70 Stat. 332; 46 U.S.C. 1122a, the Secretary of Commerce has determined that it is necessary and desirable in order to carry out the purposes and provisions of the Merchant Marine Act, 1936, as amended (49 Stat. 1985, et seq.; 46 U.S.C. 1101, et seq.) to require an operator of a vessel in waterborne foreign commerce of the United States to file accurate reports on Form MA-578 with respect to passenger and dry cargo vessels, on Form MA-578A with respect to vessels carrying certain containerized cargo and on Forms MA-7803 and MA7804 with respect to tankers; such forms and instructions for the preparation thereof are hereby prescribed and approved. An accurate report on Form MA-578, vessel Utilization and Performance Report, shall be filed in duplicate with the appropriate District Director of Customs for transmittal to the Maritime Administration by the operator of every self-propelled dry cargo and passenger vessel of 1,000 or more gross registered

1 Copy each of the Forms MA-578 (1-67), MA-578A (3-21-67), MA-7803, and MA-7804, together with instructions for their use, respectively, are on file in the Office of the Federal Register. These forms and instructions may be obtained from the Marine Section, District Director of Customs at U.S. ports.

tons before midnight of the 15th day after entry into the first U.S. port and before midnight within 15 working days (Saturdays, Sundays, and Holidays excluded) after clearing the last U.S. port. Operators desiring to submit combination reports for dry cargo and passenger vessels (inbound and outbound portions) after clearing the final U.S. port may do so upon obtaining written permission from the Maritime Administration, Washington, D.C. 20235. In addition, and subject to the same qualifying and filing requirements set forth above, an accurate report on Form MA-578A, Supplemental Unitized Cargo Container Report, shall be filed by such operator when, on any one voyage, a vessel carries 10 or more (1) 8 x 8 x 10 feet or larger containers, or (2) half-height containers 8 feet in width and 10 or more feet in length, or (3) flatbeds 8 feet in width and 20 or more feet in length. Separate reports on Forms MA-7803 and MA-7804 for tankers shall be filed within 15 working days after entering or clearing. Forms MA-578, MA-578A, MA-7803, and MA7804 are required to be filed in duplicate for all voyages of merchant vessels operated by or for the account of the Department of Defense except vessels of the Military Sea Transportation Service (MSTS) nucleus fleet.

(b) By agreement with the Bureau of Customs, District Directors of Customs will be responsible for policing receipt of dry cargo and passenger vessel inbound, outbound, and combination inbound/ outbound reports on Form MA-578 and Form MA-578A as well as tanker inbound and outbound reports on Forms MA-7803 and MA-7804.

NOTE: The reporting requirements contained in this section have been approved by the Bureau of the Budget in accordance with the Federal Reports Act of 1942.

[G.O. 39; 3d Rev., Amdt. 3, 32 F.R. 7525, May 23, 1967]

§ 222.3 Penalty.

Section 212(A) of the Merchant Marine Act, 1936, as amended (Public Law 612, 84th Congress; 70 Stat. 332; 46 U.S.C. 1122a), provides:

SEC. 212(A). The operator of a vessel in waterborne foreign commerce of the United States shall file at such time and in such manner as the Secretary of Commerce may prescribe by regulations, such report, account, record, or memorandum relating to the utilization and performance of such vessel in commerce of the United States, as the Secretary may determine to be necessary or

desirable in order to carry out the purposes and provisions of this Act, as amended. Such report, account, record or memorandum shall be signed and verified in accordance with regulations prescribed by the Secretary. An operator who does not file the report, account, record, or memorandum as required by this section and the regulations issued hereunder, shall be liable to the United States in a penalty of $50 for each day of such violation. The amount of any penalty imposed for any violation of this section upon the operator of any vessel shall constitute a lien upon the vessel involved in the violation, and such vessel may be libeled therefor in the district court of the United States for the district in which it may be found. The Secretary of Commerce may, in his discretion, remit or mitigate any penalty imposed under this section on such terms as he may deem proper.

(Sec. 212(A), 70 Stat. 332; 46 U.S.C. 11228) [G.O. 39, 3d Rev., 27 F.R. 4883, May 24, 1962] § 222.4 Notice of failure to comply herewith and that petition for relief may be filed.

(a) Every offender under the regulations in this part shall be advised by the collector of customs of any penalty incurred by him and of his right to apply for relief under § 222.5. If the offender fails to petition for relief or pay the penalty within 60 days from the date of mailing of the notice of violation as provided for herein, the case shall be referred immediately to the United States attorney for appropriate action, unless it appears that the person liable for the penalty is absent from the United States or during the said period was absent for more than 30 days, in which event the collector may withhold such action for a further reasonable time, or unless other action is expressly authorized by the Maritime Administrator. When a penalty is mitigated, and the mitigated penalty is not paid nor a supplemental petition filed within 60 days from the date a notice of the settlement is mailed to the petitioner, the matter shall be referred immediately to the United States attorney for appropriate attention, unless other action has been directed by the Maritime Administrator.

(b) No action looking to the remission or mitigation of a penalty shall be taken on any petition, irrespective of the amount involved, if the case has been referred to the Department of Justice for the institution of legal proceedings. (Sec. 212(A), 70 Stat. 332; 46 U.S.C. 1122a) [G.O. 39, 3d Rev., 27 F.R. 4883, May 24, 1962]

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(a) Any petition for relief from a penalty incurred under these regulations shall be addressed to the Maritime Administrator, signed by the petitioner, and filed with the collector of customs of the district in which the penalty was imposed. It shall set forth the facts relied upon the petitioner to justify his request for relief.

(b) Upon receipt of a petition, the collector shall cause such investigation to be made as the facts in the case may warrant. In forwarding the petition to the Maritime Administrator, he shall forward with it a copy of the report of the investigation, if any, a statement of all other facts which may have come to his knowledge, and his recommendation as to the final action to be taken. If the petition involves a matter which has been referred to the Department of Justice for the institution of court proceedings, the collector shall transmit the petition immediately upon receipt to the appropriate United States attorney and notify the petitioner of such action.

(c) The decision of the Maritime Administrator will be forwarded to the collector for delivery to the petitioner. (Sec. 212(A), 70 Stat. 332; 46 U.S.C. 11228) [G.O. 39, 3d Rev., 27 F.R. 4883, May 24, 1962]

NOTE: The reporting requirements under this General Order have been approved by the Bureau of the Budget in accordance with the Federal Reports Act of 1942.

PART 237-REPAIRS TO VESSELS UNDER BAREBOAT CHARTER

Sec.

237.1 Detailed repair specifications; payment and audit.

237.2 Repairs outside United States prohibited; exceptions. 237.3 Consumption entries.

AUTHORITY: The provisions of this Part 237 issued under sec. 204, 49 Stat. 1987, as amended; 46 U.S.C. 1114.

SOURCE: The provisions of this Part 237 contained in General Order 51, 7 F.R. 910, Feb. 10, 1942, unless otherwise noted. § 237.1 Detailed repair specifications; payment and audit.

All required repairs and betterments (alterations and/or improvements) authorized for the owner's accounts shall be covered by specifications prepared by the charterer in sufficient detail to describe fully all items of work to be performed and shall be paid for by the

charterer and allowed for reimbursement to the charterer by the owner at rates not exceeding those which would have been paid had such work been accomplished under an existing master contract between the owner and the repair company, or in the absence of such a master contract at rates not in excess of those then being currently paid by the owner to the repair company or to other repair companies in the vicinity, and the charterer in ordering any such work otherwise than upon a basis of proper competitive bids shall cause full right of audit to be reserved to the owner.

§ 237.2 Repairs outside United States prohibited; exceptions.

No repairs, except as hereinafter provided, shall be performed outside of the Continental limits of the United States without specific authorization in each instance of a representative of the Maritime Administration: Provided, however, That such specific authorization shall not be required in the case of repairs of an emergency nature required for the safety of a vessel for its return to the United States or such work as is required for convoy operating purposes.

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(a) The basis for calculation shall be the data relating to the vessel as certified in the register of the appropriate Classification Society. The American Bureau of Shipping record shall be used except for vessels not having this classification.

(b) The charts and methods outlined in "Speed and Power of Ships" by D. W. Taylor, shall be the bases for determining effective horsepower required, except that of the four methods given therein for wetted surface determination, the one based on Froude's formula shall be used. Calculations for effective horsepower required shall be made at speedlength ratio of 0.60 and corrected to actual speed-length ratio by the cube rule.

(c) The maximum total continuous horsepower available for propulsion (IHP, SHP, BHP) as determined from the register of the appropriate Classification Society, shall be used as a basis for determining the shaft horsepower available except that for all machinery of a steam reciprocating type, 0.90 mechanical efficiency shall be used with the IHP. The effective horsepower available to be used in conjunction with the speed calculations for single screw vessels shall be determined by multiplying the shaft horsepower available by an appropriate factor based on vessels of 450' length. For all vessels constructed subsequent to January 1, 1925 this factor shall be 0.50. For all vessels constructed prior to January 1, 1925 this factor shall be 0.50 for vessels having 6,000 SHP or more, 0.47 for vessels having power less than 6,000 SHP but more than 3,000 SHP, and 0.44 for vessels having 3,000 SHP or less. The above factors are to be corrected for length with an increase or decrease of 0.1 per 150' of length that the vessel is greater or less than 450'. (For new vessels 0.4 at 300 feet and 0.6 at 600 feet, etc.)

(d) For twin screw vessels the foregoing factors for single screw vessels shall be reduced by 10 percent.

§ 246.2 Other provisions.

(a) At any time the Maritime Administrator has the privilege to request a trial in deep water, either on a standard deep water measured mile or other course approved by the Maritime Administration. On this trial, the operator shall

determine, to the satisfaction of representatives of the Maritime Administration, the speed at which the vessel runs when the engines are developing 80 percent of their normal power and the vessel has a mean draft corresponding to its assigned freeboard. All expenses, etc., in connection with such a trial shall be borne by the Operator.

(b) Notwithstanding the provisions herein, the Maritime Administrator will consider the request of any owner for a waiver of the speed required herein and the acceptance of a speed certificate computed in accordance with § 246.3, upon submission by the owner of pertinent applicable data proving to the satisfaction of the Administrator that the speed of the vessel, as determined in accordance with § 246.3, is not in excess of fair and reasonable speed satisfactory to the Administrator but the determinations of the Administrator, in this respect, shall be final and conclusive.

§ 246.3 Speed formula requiring the substantiating data of § 246.2(b).

The speed of vessels calculated under this section shall be calculated on the same basis as set forth in § 246.1 (a), (b), (c), and (d), except for the following:

(a) Section 246.1(c) is modified to eliminate the correction for vessels constructed prior to January 1, 1925.

(b) Upon request and the submission by the owner of pertinent applicable data, such as standardization trial and self-propelled model test results, the Maritime Administrator shall give consideration to modifications of results obtained by the foregoing method but the extent to which such data may affect the results shall be determined by the Maritime Administrator. § 246.4

Modification of formulae.

The formulae set forth herein are subject to modification, as may be determined hereafter.

SUBCHAPTER C-REGULATIONS AFFECTING SUBSIDIZED VESSELS AND OPERATORS

PART 251-APPLICATION FOR SUBSIDIES AND OTHER DIRECT FINANCIAL AID (CONSTRUCTION)

Sec. 251.1

Applications for constructional-differential subsidy under Title V, Merchant Marine Act, 1936, as amended.

251.11 Applications under Title VI, Merchant Marine Act, 1936, for operating-differential subsidies.

251.21 Applications under sections 803, 804, 805 (a) and (d), and 605(b), Merchant Marine Act, 1936. 251.31 Charges for processing applications for authorization to transfer ownership of ships built with construction-differential subsidy.

AUTHORITY: The provisions of this Part 251 issued under sec. 204, 49 Stat. 1987, as amended; 46 U.S.C. 1114, unless otherwise noted.

§ 251.1 Applications for constructiondifferential subsidy under Title V, Merchant Marine Act, 1936, as amended.

(a) Applications under section 501 of the Act for subsidy to aid in the construction of new vessels or the reconstruction of existing vessels, to be operated in the foreign commerce of the

United States, shall be filed on form FMB-8 in accordance with the instructions annexed thereto.1

(b) Applications for aid in the construction of new vessels to be operated in domestic trade shall be filed on Form VA-9 in accordance with the instructions annexed thereto.1

APPENDIX No. 1-POLICY

1. To the maximum practical extent as determined by the Maritime Subsidy Board applicants for construction-differential subsidy (CDS) under Title V of the Merchant Marine Act of 1936, as amended, shall duplicate designs of ships previously approved by the Board for Subsidized Ship Construction. Such duplication contemplates retention of: hull form; major structure, 1.e., shell, transverse bulkheads, decks, girder systems etc.; machinery horsepower and arrangement; and arrangement of deck house. However the Board will permit modifications such as changes to reefer cargo capacity, deep tankage, and cargo gear in a manner so as not to disrupt the basic configuration of the ship and without sacrificing gains that can be made from group production. New ship designs will be considered from any operator who has already constructed sufficient ships of a given design to have

1 Copies of forms referred to may be obtained on request from the Secretary, Maritime Subsidy Board, Washington, D.C.

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