COAST GUARD PROPOSES LEASE-FINANCING RULES FOR JONES ACT SHIPS, BARGES

COAST GUARD PROPOSES LEASE-FINANCING RULES FOR JONES ACT SHIPS, BARGES    The U.S. Coast Guard has proposed rules allowing foreign financial institutions organized in the United States to own U.S.-built barges or vessels in the Jones Act trades, provided they are bareboat-chartered for at least three years to U.S. citizens.
   The vessel owners must be a bank, leasing company or other financial entity not engaged in shipping operations in the Jones Act trades, which include the domestic offshore trades, the inland waterway and the U.S. coastwise trades.
   Under the proposed regulations, the vessel owners must transfer to a qualified U.S. citizen full possession, control and command of the vessels chartered. Bareboat charterers are considered the owner of such vessels during the charter term.
   The Coast Guard expects about 30 applications yearly, and estimates that processing will cost about $2,000 per application.
   For further information, telephone Patricia Williams, deputy director, National Vessel Documentation Center, at (304) 271-2506.
   Comments will be accepted by the Coast Guard and the Office of Management and Budget until July 2.
   They may be filed by fax to the Docket Management Facility at (202) 493-2251, or electronically at https://dms.dot.gov.
   Comments to OMB must be mailed to its Office of Information and Regulatory Affairs, 725 17th Street, Northwest, Washington, D.C. 20503, Attention: Desk Officer, U.S. Coast Guard.