MARAD SEEKS COMMENTS ON U.S.-FLAG WAIVERS FOR EXIMBANK-BACKED EXPORTS

MARAD SEEKS COMMENTS ON U.S.-FLAG WAIVERS FOR EXIMBANK-BACKED EXPORTS    The U.S. Maritime Administration is seeking comment on whether to amend its criteria for granting waivers on the requirement that certain Export-Import Bank-financed export cargoes be carried on U.S.-flag vessels.
   Public Resolution 17, or PR-17, which covers financed agriculture and other export products, was designed to preserve a cargo base of PR-17 shippers for U.S.-flag vessels, maximize export of U.S. manufactured goods, and to support the U.S.-flag merchant fleet.
   Proposed changes in PR-17 proposed by shippers include:
   * Formalize MarAd's practice of not requiring transshipment for breakbulk cargoes that are either long lead time procurement or critical items into a formal policy.
   * That MarAd provide a “clear and predictable” definition of “reasonable rates,” to allow shippers to make a more accurate bid on their projects. Shippers requested that MarAd calculate guidelines rates, in dollars per revenue ton of cargo, similar to those calculated for agricultural cargoes under the Cargo Preference Act of 1954.
   * Change “extended” waivers to “condition” waivers. “Extended” waivers allow shippers to apply for a waiver for up to six months if it determines that there is no projected U.S.-flag service to the cargo's destination. The waiver covers multiple shipments and specifically identified cargo.
   “Condition” waivers would only apply to specifically identified oversized or heavy-lift breakbulk cargoes, including multiple shipments, which could not be handled by existing U.S.-flag liner services. MarAd said it would consider granting such waivers only in trade lanes in which U.S.-flag breakbulk service was not available on a liner basis. Such waivers would be granted for up to two years, unless during that time U.S.-flag vessel service becomes available at or below the guideline rates that MarAd establishes.
   * Any shipper wishing to obtain a waiver must provide all available cargo details including cargo value and rates, projected shipping time frame, and service requirements. Only essential cargo information would be posted on MarAd's Web page, which would allow carriers to evaluate the potential for combining various shippers' cargoes and the economic feasibility of new U.S.-flag tonnage in that trade lane.
   The deadline for sending comments to MarAd is Oct. 20.