MarAd seeks comment on foreign rebuilds

MarAd seeks comment on foreign rebuilds The U.S. Maritime Administration is seeking public comment on what standards should apply when making determinations of foreign reconstruction of U.S.-built vessels that participate in the Capital Construction Fund program and foreign rebuilding of U.S.-built vessels that participate in the cargo preference program.
   In a notice published in today’s Federal Register, MarAd notes there are three maritime promotional statutes that mandate the use of U.S.-built vessels, and generally provide that a U.S.-built vessel becomes ineligible if the vessel is reconstructed or rebuilt in a foreign country:
   ' The first provides that a vessel eligible to engage in the U.S. coastwise trade and later rebuilt outside the United States may no longer engage in the coastwise trade and is administered by the U.S. Coast Guard.
   ' The second established the Capital Construction Fund (CCF) program, whereby a U.S. citizen owner of an eligible vessel may defer federal income taxes on income derived from the operation of eligible vessels to the extent that income is deposited into a fund to be used solely for the acquisition, construction or reconstruction of qualified vessels. The statutory definitions of both 'eligible' and 'qualified' vessels require such vessels, if reconstructed, to be done in the United States. MarAd administers the CCF programs, except for fishing boats, which are administered by the National Oceanic and Atmospheric Administration.
   ' The third provides that preference be given in the carriage of U.S. government-impelled cargoes to 'privately owned commercial vessels of the United States,' and excludes vessels rebuilt in a foreign country, unless the vessel has been documented under U.S. registry for at least three years.
   MarAd said the three statutes “raise difficult problems of interpretation and enforcement.” and asks for comments on how it should administer the programs assigned to it.
   It said comments are due Jan. 14.