(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 Maritime Subsidy Board and the Maritime Administrator reserve the right to require the filing of additional information in any given case. (Sec. 807, 49 Stat. 2014, as amended; 46 U.S.C. 1225) [22 F.R. 1087, Feb. 22, 1957, as amended at 33 F.R. 2944, Feb. 14, 1968] 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 Forms MA-721 and MA-722 with respect to passenger and dry cargo vessels, on Form MA-578A with respect to vessels carrying certain containerized cargo; such forms and instructions for the preparation thereof are hereby prescribed and approved.' (1) An accurate report on Form MA721, Vessel Utilization and Performance Report-Inbound or Form MA-722, Vessel Utilization and Performance ReportOutbound, as the case may be, 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 net registered tons before midnight of the 30th calendar day after entry into 1 Copy each of the Forms MA-721, MA-722 and MA-578A (3-21-67), 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. the first U.S. port and before midnight of the 30th calendar day after clearing the last U.S. port. (2) 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 carried 10 or more (i) 8 x 8 x 10 feet or larger containers, or (ii) halfheight containers 8 feet in width and 10 or more feet in length, or (iii) flatbeds 8 feet in width and 20 or more feet in length. (3) Forms MA-721, MA-722 and MA578A are required to be filed also 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 and outbound reports on Form MA-721 and Form MA-722. [G.O. 39, 3d Rev., Amdt. 6, 34 F.R. 19547, Dec. 11, 1969] 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. § 222.3 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. 1122a) [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 District Director of Customs as defined in 19 CFR 1.1(d) 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, as amended at 33 F.R. 2944, Feb. 14, 1968] § 222.5 Petition for relief. (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. 1122a) [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. § 246.1 Method of calculating sea speed of vessels. The speeds of vessels shall be based on the methods of calculation described herein. (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 Ad ministrator 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. struction 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, i.e., shell, transverse bulkheads, decks, girder systems etc.; machinery horsepower and arrangement; and arrangement of deck house. How 1 Copies of forms referred to may be obtained on request from the Secretary, Maritime Subsidy Board, Washington, D.C. ever 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 optimized the economy of standardized ship construction, when the applicant feels that a new design is necessary in exceptional cases and justifies this need to the Board. Where the Board concludes contrary to an applicant that a previously developed design can be satisfactorily adapted to requirements of the intended service at a substantial saving compared with building to a new design, invitations to bid shall be issued for both the standard design and the custom design of the owner's preference. Construction-differential subsidy will be based on whichever design requires the least subsidy. 2. The Board may require such variations from designs of ships previously approved as are necessary to optimize the economic utilization of mechanization and labor saving equipment with the potential of reducing operating-differential subsidy (ODS). Other nonstandard equipment or shipbuilding components shall be eligible for CDS, only if (a) their effect is to decrease the total sum of such CDS and ODS projected over the life of a ship, or (b) when it can be demonstrated with reasonable certainty that the added investment will produce a return to the owner of at least 10 percent per annum after taxes over the life of the investment. 3. Value engineering provisions will be included in all construction-differential subsidy contracts and construction contracts. Value engineering items considered mandatory by the Board prior to or during the development of the bidding plans and specifications and during the actual ship construction period shall be incorporated in the plans and specifications or incorporated in the ship. If the mandatory items are not acceptable to the owner the difference in cost, as determined by the Board, between the value engineered and the installed item will be borne by the owner. This paragraph shall not be construed (a) as revising the present appeal rights of the shipowner, or (b) as imposing upon the shipbuilding contractor any requirement for employment of a specific number of value engineering personnel. 4. Subsidy for changes under the construction contract will be allowed only when the net effect of the change will with reasonable certainty (a) comply with the standard in 2 (a) or (b) above, (b) correct a deficiency in design which is clearly essential, or (c) comply with a change in the requirement of a regulatory body which becomes effective after 30 days preceding bid opening. Any changes desired by the owner which do not adversely affect the safe, efficient or economical operation of the ship will be permitted, but without the benefit of subsidy. Subsidy for changes under category 2(b) shall be based on an estimate as to what the work would have cost if it had been included in the bidding specifications. as on 5. Post-contract engineering costs incurred by the owner for engineering review and plan approval will be subsidized within a ceiling. The owner's expenses for such engineering and plan approval shall be limited for subsidy purposes to a maximum of 2 percent of the low bid for each of one ship in each contract. This limitation shall apply to liner cargo vessels of the break bulk type with no more than twelve passengers, such but including special features mechanization, container carrying devices, special cargo handling equipment, refrigeration spaces and special deep tanks, etc. This upper limit shall be adjusted downward to take into account features including, but not limited to, standardized design, successive flights of ships in the same yard, or successive flights of ships in different yards. subsidy 6. Construction-differential owner's engineering expenses for inspection when only one ship is being built shall be limited to an amount equal to 1.3 percent of the bid price. For multiple ship construction the amount subsidizable will be 1.3 percent of the contract price per ship plus an additional increment of 0.36 percent for each vessel beyond the first. For example, the subsidizable amount for inspection on a four ship contract would be 1.3 percent plus 1.08 percent (0.36×3) or 2.38 percent times the cost of the each of four ship bid price. This limitation shall apply to liner type cargo vessels of the break bulk type with no more than 12 passengers but including as mechanization, special features such container carrying devices, special cargo handling equipment, refrigeration spaces and special deep tanks, etc. This upper limitation shall be adjusted downward to take into account features including, but not limited to, standardized design, or other vessels for the same owner and in the same shipyard. 7. Interior decorators' fees will be limited to a maximum of $10,000 per contract. 8. Construction-differential subsidy will not apply to owner furnished equipment. All material or equipment to which construction-differential subsidy shall apply must be included in the plans and specifications upon which the competitive ship construction bids are based or included in authorized changes under contract. 9. Notwithstanding any of the foregoing limitations on subsidy the Board will in exceptional cases authorize subsidy or research and development grants for new ship concepts or individual ship features whose economic justification lie in the possibility |