46 CFR Part 540 - Application
for Certificate of Financial Responsibility
Revision of a currently approved collection
No
Regular
03/29/2022
Requested
Previously Approved
36 Months From Approved
04/30/2024
560
445
1,243
1,233
64,482
49,204
The Commission administers Sections 2
and 3 of Public Law 89-777 (46 U.S.C. 44101-44106), which require
vessel owners, charterers and operators of passenger vessels with
passenger berths or stateroom accommodations for at least 50
passengers, and embarking passengers at United States ports, to
establish their financial responsibility to meet liability incurred
for death or injury and to indemnify passengers in the event of
nonperformance of transportation. 46 CFR Part 540, entitled
Passenger Vessel Financial Responsibility, implements Public Law
89-777. The regulation (and its related application Form FMC-131,
Application for Certificate of Financial Responsibility) requires
owners, operators or charterers of passenger vessels subject to
Public Law 89-777 to apply for an initial certificate or to file an
amendment to existing certificates. The Commission’s rules require
that applications be filed at least 60 days prior to any
advertising, promotion or collection of deposits and fares for a
Certificate (Performance), and at least 60 days prior to sailing
for a Certificate (Casualty). Applicants may apply separately for
each certificate or for both certificates on one application. The
method of establishing financial responsibility may be different
for each certificate. The applicant has the option of using (1)
insurance, (2) escrow accounts, (3) guaranties, (4) surety bonds,
or (5) self-insurance (for casualty only) to establish financial
responsibility to qualify for a Certificate (Casualty) evidencing
compliance with Section 2 of Public Law 89-777, or to qualify for a
Certificate (Performance) evidencing compliance with Section 3 of
Public Law 89-777. Upon receipt, examination, and approval of the
application form and evidence of financial responsibility, a
Certificate of Financial Responsibility for Indemnification of
Passengers for Nonperformance of Transportation and Certificate of
Financial Responsibility to Meet Liability Incurred for Death or
Injury to Passengers or Other Persons on Voyages are issued to the
applicant/certificant. The certificates must be presented to U.S.
Customs and Border Protection (CBP) or Coast Guard officials at the
time the vessel clears a United States port. The cap on passenger
vessel financial responsibility under Section 3 (Performance) of
Public Law 89-777, 46 U.S.C. 44101-44106, is adjusted biennially to
the nearest $1 million using the Bureau of Labor Statistics’s
Consumer Price Index for all Urban Consumers (CPI-U). Smaller
passenger vessel operators’ (PVO) financial responsibility
requirements may be adjusted by requesting consideration for
alternative forms of protection from the Director of the Bureau of
Certification and Licensing. The FMC’s PVO Certificates
(Performance) are required to be renewed every 5 years. The renewal
of the certificates assists U.S. Customs and Border Protection
officers in determining the validity of a certificate, and ensures
that the FMC periodically confirms PVO information previously
submitted.
The Federal Maritime Commission
(Commission) is issuing this final rule to adopt regulatory changes
to its passenger vessel operator financial responsibility
requirements. The Commission is defining when nonperformance of
transportation has occurred and establishing uniform procedures
regarding how and when passengers may make claims for refunds under
a passenger vessel operator’s financial responsibility instrument
when nonperformance occurs. This rulemaking resulted from
recommendations in an Interim Report issued by the Fact Finding
Officer in Commission Fact Finding Investigation No. 30: COVID–19
Impact on Cruise Industry. In the August 25, 2021, Notice of
proposed rulemaking, the Commission proposed to modify regulations
to revise the definition of Unearned Passenger Revenue, adopt a
definition of nonperformance of transportation, and detail the
process for obtaining refunds under the PVOs’ financial
responsibility instruments filed with the Commission. Based on the
comments received on the proposed rule, this final rule also
clarifies that passengers must wait until the PVO refund period has
ended as outlined in the PVO’s claims procedure before making a
claim against the financial instrument, or the claim has been
denied by the PVO. Also, this final rule confirms that claims may
be resolved between the passenger and the PVO as an alternative
form of compensation. Finally, it creates a small business
accommodation by delaying implementation of the new unearned
passenger revenue definition by two years for small entities.
$100,798
No
No
No
No
No
No
No
Kristen Monaco 202
523-5789
No
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
Form FMC-131 46 CFR 540 - Application for Certificate of Financial Responsibility
2022-03-01 Summary of Comments on Information Collection.pdf
FR 20-15 FORM FMC-133A.docx
46 CFR 540 - Application for Certificate of Financial Responsibility