46 CFR Part 221

SUBCHAPTER B—REGULATIONS AFFECTING MARITIME
CARRIERS AND RELATED ACTIVITIES
Subpart G—Savings Provisions

PART
221—REGULATED TRANSACTIONS INVOLVING DOCUMENTED VESSELS AND OTHER
MARITIME INTERESTS

221.111 Status of prior transactions—controlling dates.
AUTHORITY: 46 App. U.S.C. 802, 803, 808, 835,
839, 841a, 1114(b), 1195; 46 U.S.C. chs. 301 and
313; 49 U.S.C. 336; 49 CFR 1.66.

Subpart A—Introduction
Sec.
221.1
221.3
221.5
221.7

SOURCE: 57 FR 23478, June 3, 1992, unless
otherwise noted.

Purpose.
Definitions.
Citizenship declarations.
Applications and fees.

Subpart A—Introduction
§ 221.1

Subpart B—Transfers to Noncitizens or to
Registry or Operation Under Authority
of a Foreign Country
221.11 Required approvals.
221.13 General approval.
221.15 Approval for transfer of registry or
operation under authority of a foreign
country or for scrapping in a foreign
country.
221.17 Sale of a documented vessel by order
of a district court.
221.19 Possession or sale of vessels by mortgagees or trustees other than pursuant to
court order.

Subpart C [Reserved]
Subpart D—Transactions Involving Maritime
Interests in Time of War or National
Emergency Under 46 App. U.S.C. 835
[Reserved]
Subpart E—Civil Penalties

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221.61
221.63
221.65
221.67
221.69
221.71
221.73
221.75
221.77
221.79
221.81
221.83
221.85
221.87
221.89
221.91
221.93

Purpose.

(a) This part implements statutory
responsibilities of the Secretary of
Transportation (the Secretary) with respect to:
(1) The regulation pursuant to 46
App. U.S.C. 808 of transactions involving transfers of:
(i) An interest in or control of Documented Vessels owned by Citizens of
the United States (including the Transfer of a Controlling Interest in such
owners) to Noncitizens or;
(ii) A Documented Vessel to registry
or Operation under Authority of a Foreign Country or for scrapping in a foreign country; and
(2) Transactions involving maritime
interests in time of war or national
emergency under 46 App. U.S.C. 835.
(b) The responsibilities in paragraph
(a) (1) and (2) of this section have been
delegated by the Secretary to the Maritime Administrator.

Purpose.
Investigation.
Criteria for determining penalty.
Stipulation procedure.
Hearing Officer.
Hearing Officer referral.
Initial Hearing Officer consideration.
Response by party.
Disclosure of evidence.
Request for confidential treatment.
Counsel.
Witnesses.
Hearing procedures.
Records.
Hearing Officer’s decision.
Appeals.
Collection of civil penalties.

[57 FR 23478, June 3, 1992, as amended at 63
FR 6880, Feb. 11, 1998]

§ 221.3

Definitions.

For the purpose of this part, when
used in capitalized form:
(a) Bowaters Corporation means a
Noncitizen corporation organized under
the laws of the United States or of a
State that has satisfied the requirements of 46 App. U.S.C. 883–1(a)–(e) and
holds a valid Certificate of Compliance
issued by the Coast Guard.
(b) Charter means any agreement or
commitment by which the possession
or services of a vessel are secured for a

Subpart F—Other Transfers Involving
Documented Vessels [Reserved]

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§ 221.3

period of time, or for one or more voyages, whether or not a demise of the
vessel.
(c) Citizen of the United States means a
Person (including receivers, trustees
and successors or assignees of such
Persons as provided in 46 App. U.S.C.
803), including any Person (stockholder, partner or other entity) who
has a Controlling Interest in such Person, any Person whose stock or equity
is being relied upon to establish the
requisite U.S. citizen ownership, and
any parent corporation, partnership or
other entity of such Person at all tiers
of ownership, who, in both form and
substance at each tier of ownership,
satisfies the following requirements—
(1) An individual who is a Citizen of
the United States, by birth, naturalization or as otherwise authorized by law;
(2) A corporation organized under the
laws of the United States or of a State,
the Controlling Interest of which is
owned by and vested in Citizens of the
United States and whose chief executive officer, by whatever title, chairman of the board of directors and all
officers authorized to act in the absence or disability of such persons are
Citizens of the United States, and no
more of its directors than a minority of
the number necessary to constitute a
quorum are Noncitizens;
(3) A partnership organized under the
laws of the United States or of a State,
if all general partners are Citizens of
the United States and a Controlling Interest in the partnership is owned by
Citizens of the United States;
(4) An association organized under
the laws of the United States or of a
State, whose chief executive officer, by
whatever title, chairman of the board
of directors (or equivalent committee
or body) and all officers authorized to
act in their absence or disability are
Citizens of the United States, no more
than a minority of the number of its
directors, or equivalent, necessary to
constitute a quorum are Noncitizens,
and a Controlling Interest in which is
vested in Citizens of the United States;
(5) A joint venture, if it is not determined by the Maritime Administrator
to be in effect an association or a partnership, which is organized under the
laws of the United States or of a State,
if each coventurer is a Citizen of the

United States. If a joint venture is in
effect an association, it will be treated
as is an association under paragraph(c)(4) of this section, or, if it is in
effect a partnership, will be treated as
is a partnership under paragraph (c)(3)
of this section; or
(6) A Trust described in paragraph
(t)(1) of this section.
(d) Controlling interest owned by and
vested in Citizens of the United States
means that—
(1) In the case of a corporation:
(i) Title to a majority of the stock
thereof is owned by and vested in Citizens of the United States, free from
any trust or fiduciary obligation in
favor of any Noncitizen;
(ii) The majority of the voting power
in such corporation is vested in Citizens of the United States;
(iii) Through no contract or understanding is it so arranged that the majority of the voting power may be exercised, directly or indirectly, in behalf
of any Noncitizen; and
(iv) By no other means whatsoever
control of the corporation is conferred
upon or permitted to be exercised by
any Noncitizen;
(2) In the case of a partnership, all
general partners are Citizens of the
United States and ownership and control of a majority of the partnership interest, free and clear of any trust or fiduciary obligation in favor of any Noncitizen, is vested in a partner or partners each of whom is a Citizen of the
United States;
(3) In the case of an association, a
majority of the voting power is vested
in Citizens of the United States, free
and clear of any trust or fiduciary obligation in favor of any Noncitizen; and
(4) In the case of a joint venture, a
majority of the equity is owned by and
vested in Citizens of the United States
free and clear of any trust or fiduciary
obligation in favor of any Noncitizen;
but
(5) In the case of a corporation, partnership, association or joint venture
owning a vessel which is operated in
the coastwise trade, the amount of interest and voting power required to be
owned by and vested in Citizens of the
United States shall be not less than 75
percent as required by 46 App. U.S.C.
802.

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§ 221.3

46 CFR Ch. II (10–1–08 Edition)

(e) Documented vessel means a vessel
documented under chapter 121, title 46,
United States Code or a vessel for
which an application for such documentation is pending.
(f) Fishing vessel means a vessel that
commercially engages in the planting,
cultivating, catching, taking, or harvesting of fish, shellfish, marine animals, pearls, shells, or marine vegetation or an activity that can reasonably
be expected to result in the planting,
cultivating, catching, taking, or harvesting of fish, shellfish, marine animals, pearls, shells, or marine vegetation.
(g) Fish processing vessel means a vessel that commercially prepares fish or
fish products other than by gutting, decapitating, gilling, skinning, shucking,
icing, freezing, or brine chilling.
(h) Fish tender vessel means a vessel
that commercially supplies, stores, refrigerates, or transports (except in foreign commerce) fish, fish products, or
materials directly related to fishing or
the preparation of fish to or from a
Fishing Vessel, Fish Processing Vessel,
or another Fish Tender Vessel or a fish
processing facility.
(i) Hearing Officer means an individual designated by the Maritime Administrator to conduct hearings under
Subpart E of this part and assess civil
penalties.
(j) Noncitizen means a Person who is
not a Citizen of the United States.
(k) Operation under the authority of a
foreign country means any agreement,
undertaking or device by which a Documented Vessel is voluntarily subjected to any restriction or requirement, actual or contingent, under the
laws or regulations of a foreign country or instrumentality thereof concerning use or operation of the vessel
that is or may be in derogation of the
rights and obligations of the owner, operator or master of the vessel under
the laws of the United States, unless
such restriction or requirement is of
general applicability and uniformly
imposed by such country or instrumentality in exercise of its sovereign prerogatives with respect to public health,
safety or welfare, or in implementation
of accepted principles of international
law regarding cabotage or safety of
navigation.

(l) Party means the Person alleged to
have violated the statute or regulations for which a civil penalty may be
assessed.
(m) Person includes individuals and
corporations, partnerships, joint ventures, associations and Trusts existing
under or authorized by the laws of the
United States or of a State or, unless
the context indicates otherwise, or any
foreign country.
(n) Pleasure vessel means a vessel that
has been issued a Certificate of Documentation with a recreational endorsement and is operated only for pleasure
pursuant to 46 U.S.C. 12109.
(o) Settlement means the process
whereby a civil penalty or other disposition of the alleged violation is
agreed to by the Hearing Officer and
the Party in accordance with § 221.73 of
this part.
(p) State means a State of the United
States, Guam, Puerto Rico, the Virgin
Islands, American Samoa, the District
of Columbia, the Commonwealth of the
Northern Mariana Islands, and any
other territory or possession of the
United States.
(q) Transfer means the passing of control of or an interest in a Documented
Vessel and includes the involuntary
conveyance by a foreign judicial or administrative tribunal of any interest in
or control of a Documented Vessel
owned by a Citizen of the United States
to a Noncitizen that is not eligible to
own a Documented Vessel.
(r) Trust means:
(1) In the case of ownership of a Documented Vessel, a Trust that is domiciled in and existing under the laws of
the United States, or of a State, of
which the trustee is a Citizen of the
United States and a Controlling Interest in the Trust is held for the benefit
of Citizens of the United States; or
(s) United States, when used in the geographic sense, means the States of the
United States, Guam, Puerto Rico, the
Virgin Islands, American Samoa, the
District of Columbia, the Commonwealth of the Northern Mariana Islands, and any other territory or possession of the United States; when used
in other than the geographic sense, it
means the United States Government.
(t) United States Government means
the Federal Government acting by or

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§ 221.7

through any of its departments or
agencies.
(u) Vessel Transfer Officer means the
Maritime
Administration’s
Vessel
Transfer and Disposal Officer, whose
address is MAR–745.1, Maritime Administration, United States Department of
Transportation, Washington, DC 20590,
or that person’s delegate.

be filed with the Vessel Transfer Officer.
(b) Fees. Applications for written approval of any of the following transactions shall be accompanied by the
specified fee:
(1) Transactions requiring approval
for:
(i) Sale and delivery by a Citizen of the United
States to a Noncitizen, or Transfer to foreign registry or Operation Under Authority
of a Foreign Country, of a Documented Vessel, per vessel—
(A) Of 1,000 gross tons and over .....................
(B) Of less than 1,000 gross tons .....................
(ii) Transfer of any interest in, or control of, a
Documented Vessel owned by a Citizen of
the United States to a Noncitizen, per vessel
(iii) Charter of a Documented Vessel owned by
a Citizen of the United States to a Noncitizen, per vessel ..............................................
(iv) Sale or Transfer of an interest in or the
control of an interest in an entity that is a
Citizen of the United States and owns, or is
the direct or indirect parent of an entity
that owns, any Documented Vessel, if by
such sale or Transfer the Controlling Interest in such entity is vested in, or held for
the benefit of, any Noncitizen .......................

[57 FR 23478, June 3, 1992, as amended at 63
FR 6880, Feb. 11, 1998; 69 FR 34310, June 21,
2004]

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§ 221.5 Citizenship declarations.
(a) Pursuant to 46 U.S.C. 31306(a),
when an instrument transferring an interest in a Documented Vessel owned
by a Citizen of the United States is presented to the United States Government for filing or recording, the Person
filing shall submit therewith Maritime
Administration Form No. MA–899 so it
may be determined if sections 9 or 37 of
the Shipping Act of 1916 (46 App. U.S.C.
808 and 837) apply to the transaction.
Form No. MA–899 is available from the
Coast Guard Documentation Office at
the port of record of the vessel or from
the Vessel Transfer Officer.
(b) The filing required by paragraph
(a) of this section is not required for
transactions involving vessel types described in § 221.11(b)(1)(i) through (iv) of
this part.
(c) The filing required by paragraph
(a) of this section is waived for transactions which are given general approval in this part.
(d) If the transfer of interest is one
which requires written approval of the
Maritime Administrator, the Person
filing shall submit therewith evidence
of that approval.
(e) A declaration filed by any Person
other than an individual shall be
signed by an official authorized by that
Person to execute the declaration.

(i) Transfer of ownership or registry, or, both,
of the vessel, per vessel .................................
(ii) Sale or Transfer of any interest in the
owner of the vessel, if by such sale or Transfer the Controlling Interest in the owner is
vested in, or held for the benefit of, a Noncitizen, per vessel ..........................................
(iii) Charter of the vessel to a Noncitizen, per
vessel .............................................................

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325

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235
240

(c) Modification of applications or approvals. An application for modification of any pending application or prior
approval, or of an outstanding Maritime Administration contract or Order,
shall be accompanied by the fee established for the original application.
(d) Reduction or waiver of fees. The
Maritime Administrator, in appropriate circumstances, and upon a written finding, may reduce any fee imposed by paragraph (b) or (c) of this
section, or may waive the fee entirely
in extenuating circumstances where
the interest of the United States Government would be served.
[57 FR 23478, June 3, 1992, as amended at 63
FR 6880, Feb. 11, 1998]

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250

(2) Transactions requiring written
approval pursuant to a Maritime Administration contract or Order:

§ 221.7 Applications and fees.
(a) Applications. Whenever written approval of the Maritime Administrator
is required for transfers to Noncitizens
or to foreign registry or Operation
Under Authority of a Foreign Country,
or pursuant to a Maritime Administration contract or Order, an application
on Maritime Administration Form
MA–29 or MA–29B giving full particulars of the proposed transaction shall

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§ 221.11

46 CFR Ch. II (10–1–08 Edition)

Subpart B—Transfers to Noncitizens or to Registry or Operation Under Authority of a Foreign Country

sel’s principal employment in the fisheries and directly related thereto.

§ 221.11 Required approvals.
(a) Except as provided in section
12106(e) of title 46, United States Code,
a Person may not, without the approval of the Maritime Administrator:
(1) Sell, lease, charter, deliver, or in
any manner Transfer to a Noncitizen,
or agree (unless such agreement by its
terms requires approval of the Maritime Administrator in order to effect
such transfer), to sell, lease, charter,
deliver, or in any manner Transfer to a
Noncitizen, any interest in or control
of a Documented Vessel owned by a
Citizen of the United States or a vessel
the last documentation of which was
under the laws of the United States except as provided in this part; or
(2) Place any Documented Vessel, or
any vessel the last documentation of
which was under the laws of the United
States, under foreign registry or operate that vessel under the authority of a
foreign country, except as provided in
this part.
(b)(1) The approvals required by paragraph (a)(1) of this section are not required for the following Documented
Vessel types if the vessel has been operated exclusively and with bona fides
for one or more of the following uses,
under a Certificate of Documentation
with an appropriate endorsement and
no other, since initial documentation
or renewal of its documentation following construction, conversion, or
transfer from foreign registry, or, if it
has not yet so operated, if the vessel
has been designed and built and will be
operated for one or more of the following uses:
(i) A Fishing vessel;
(ii) A Fish processing vessel;
(iii) A Fish tender vessel; and
(iv) A Pleasure vessel.
(2) A vessel of a type specified in
paragraphs (b)(1)(i) through (iii) of this
section will not be ineligible for the approval granted by this paragraph by
reason of also holding or having held a
Certificate of Documentation with a
coastwise or registry endorsement, so
long as any trading under that authority has been only incidental to the ves-

§ 221.13 General approval.
(a) Transactions other than transfer of
registry or operation under authority of a
foreign country. (1) The Maritime Administrator hereby grants the approval
required by 46 App. U.S.C. 808(c)(1) for
the sale, lease, Charter, delivery, or
any other manner of Transfer to a Noncitizen of an interest in or control of a
Documented Vessel owned by a Citizen
of the United States or a vessel the last
documentation of which was under the
laws of the United States except:
(i) As limited by paragraph (b) of this
section for transfers to Bowaters Corporations;
(ii) As limited by § 221.15(d) of this
part for sales for scrapping;
(iii) Bareboat or demise Charters of
vessels operating in the coastwise
trade.
A Documented Vessel shall remain documented following any transaction approved by this paragraph (a)(1). Other
approvals may be required by statutes
other than 46 App. U.S.C. 808(c)(1) and/
or by contract for certain vessels.
(2) The approvals granted by paragraph (a)(1) of this section shall not
apply to any such Transfer proposed to
be made during any period when the
United States is at war or during any
national emergency, the existence of
which has invoked the provisions of
section 37 of the Shipping Act, 1916, as
amended (46 App. U.S.C. 835), or to any
such Transfer proposed to be made to a
citizen of any country when such
transfer would be contrary to the foreign policy of the United States as declared by an executive department of
the United States.
(3) An information copy of any sales
agreement, bareboat or demise Charter
entered into pursuant to this approval
shall be submitted to the Vessel Transfer Officer not later than thirty days
following a request by that official.
(4) Except for Charters to Noncitizens
of documented bulk cargo vessels engaged in carrying bulk raw and processed agricultural commodities from
the United States to ports in the geographic area formerly known as the

[57 FR 23478, June 3, 1992, as amended at 63
FR 6880, Feb. 11, 1998]

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§ 221.15

Union of Soviet Socialist Republics, or
to other permissible ports of discharge
for transshipment to the geographic
area formerly known as the Union of
Soviet Socialist Republics, pursuant to
an operating- differential subsidy
agreement that is consistent with the
requirements of 46 CFR parts 252 and
294, this approval excludes and does not
apply to Transfers to a Person who is
subject, directly or indirectly, to control of an entity within any country
listed by the Department of Commerce
in 15 CFR part 740, Supplement 1,
Country Group E, unless such transferee is an individual who has been lawfully admitted into, and resides in, the
United States, or to Charters for the
carriage of cargoes of any kind to or
from, or for commercial operation
while within the waters of (as distinct
from passage through), any of these
countries. This list of countries is subject to change from time to time. Information concerning current restrictions may be obtained from the Vessel
Transfer Officer.
(b) Bowaters corporations. (1) For documented Vessels other than those operating in the coastwise trade, the approvals granted in paragraph (a) of this
section shall apply to Bowaters Corporations.
(2) The Maritime Administrator hereby grants approval for the time charter
of a Documented Vessel of any tonnage
by a Citizen of the United States to a
Bowaters Corporation for operation in
the coastwise trade, subject to the following conditions:
(i) If non-self-propelled or, if self-propelled and less than 500 gross tons, no
such vessel shall engage in the fisheries
or in the transportation of merchandise or passengers for hire between
points in the United States embraced
within the coastwise laws except as a
service for a parent or subsidiary corporation; and
(ii) If non-self-propelled or, if selfpropelled and less than 500 gross tons,
no such vessel may be subchartered or
subleased from any such Bowaters Corporation except:
(A) At prevailing rates;
(B) For use otherwise than in the domestic noncontiguous trades;
(C) To a common or contract carrier
subject to part 3 of the Interstate Com-

merce Act, as amended, which otherwise qualifies as a Citizen of the United
States and which is not connected, directly or indirectly, by way of ownership or control with such corporation.
[57 FR 23478, June 3, 1992, as amended at 63
FR 6880, Feb. 11, 1998; 69 FR 54248, Sept. 8,
2004]

§ 221.15 Approval for transfer of registry or operation under authority
of a foreign country or for scrapping in a foreign country.
In no case will approval be granted to
place under foreign registry or to operate under the authority of a foreign
country a Fishing Vessel, Fish Processing Vessel, or Fish Tender Vessel
that has had its fishery endorsement
revoked pursuant to Appendix D of
Public Law 106–554, 114 Stat 2763. Subject to this exclusion, approval requests will be considered as set forth in
this section.
(a) Vessels of under 1,000 gross tons. (1)
The Maritime Administrator hereby
grants approval for the Transfer to foreign registry and flag or Operation
Under the Authority of a Foreign
Country or for scrapping in a foreign
country of Documented Vessels or vessels the last documentation of which
was under the laws of the United
States and which are of under 1,000
gross tons if at the time of such Transfer there are no liens or encumbrances
recorded against the vessel in the U.S.
Coast Guard Documentation Office at
its last U.S. port of record.
(2) This approval shall not apply if
the vessel is to be placed under the registry, or operated under the authority
of, or scrapped in any country listed in
§ 221.13(a)(4) of this part.
(3) This approval shall not apply to
any such Transfer proposed to be made
during any period when the United
States is at war or during any national
emergency, the existence of which has
invoked the provisions of section 37 of
the Shipping Act, 1916, as amended (46
App. U.S.C. 835), or to any such Transfer proposed to be made to a citizen of
any country when such transfer would
be contrary to the foreign policy of the
United States as declared by an executive department of the United States.

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§ 221.15

46 CFR Ch. II (10–1–08 Edition)

(b) Vessels of 1,000 gross tons or more.
(1) Applications for approval of Transfer to foreign registry and flag or Operation Under the Authority of a Foreign
Country or for scrapping in a foreign
country of Documented Vessels or vessels the last documentation of which
was under the laws of the United
States and which are of 1,000 gross tons
or more will be evaluated in light of—
(i) The type, size speed, general condition, and age of the vessel;
(ii) The acceptability of the owner,
proposed transferee and the country of
registry or the country under the authority of which the vessel is to be operated; and
(iii) The need to retain the vessel
under U.S. documentation, ownership
or control for purposes of national defense, maintenance of an adequate
merchant marine, foreign policy considerations or the national interest.
(2) If the application is found to be
acceptable under the criteria of this
paragraph, approval will be granted.
For vessels of under 3,000 gross tons, in
the absence of unusual circumstances,
no conditions will be imposed on the
transfer. For vessels of 3,000 gross tons
and above, approval will be granted
upon acceptance by the owner of the
terms and conditions referred to in
paragraph (c) or (d) of this section, as
applicable. Additional terms deemed
appropriate by the Maritime Administrator may be imposed. The terms and
conditions shall be contained in an Approval Notice and Agreement (‘‘Contract’’) executed prior to issuance of
the Transfer Order. Unless otherwise
specified, the terms and conditions
shall remain in effect for the period of
the remaining economic life of the vessel or for the duration of a national
emergency proclaimed by the President prior or subsequent to such Transfer, whichever period is longer. The
economic life of a vessel for purposes of
this regulation is deemed to be twenty
(20) years for tankers and other liquid
bulk carriers and twenty-five (25) years
for other vessel types. This period is to
be calculated from the date the vessel
was originally accepted for delivery
from the shipbuilder, but may be extended for such additional period of
time as may be determined by the Maritime Administrator if the vessel has

been substantially rebuilt or modified
in a manner that warrants such extension.
(c) Foreign transfer other than for
scrapping. If the foreign Transfer of a
vessel referred to in paragraph (b) of
this section is other than for the purpose of scrapping the vessel and other
than a Transfer to the government of
an acceptable foreign country, and in
the absence of unusual circumstances
as determined by the Maritime Administrator (for example a Transfer to an
entity controlled by the government of
an acceptable foreign country), the following conditions will be imposed on
the transferee:
(1) Ownership. (i) Without the prior
written approval of the Maritime Administrator, there shall be no further
Transfer of ownership, change in the
registry or Operation of such vessel
Under the Authority of a Foreign
Country; provided, however, that, if
the Transfer of ownership is to a Citizen of the United States or other entity qualified under 46 U.S.C. 12102(a) to
document a vessel and the vessel is
thereafter documented under U.S. law,
no prior written approval shall be required but the transferee shall notify
the Vessel Transfer Officer in writing
of such change in the ownership and
the U.S. documentation within thirty
(30) days after such change in ownership and documentation.
(ii) The restrictions contained in
paragraph (c)(1)(i) of this section shall
not be applicable to a change in ownership resulting from the death of the
vessel owner, so long as notification of
any such Transfer of ownership occurring by reason of death shall be filed
with the Vessel Transfer Officer within
60 days from the date of such Transfer
identifying with particularity the
name, legal capacity, citizenship, current domicile or address of, or other
method of direct communication with,
the transferee(s).
(2) Requisition. The vessel shall, if requested by the United States, be sold
or Chartered to the United States on
the same terms and conditions upon
which a vessel owned by a Citizen of
the United States or documented under
U.S. law could be requisitioned for purchase or Charter pursuant to section
902 of the Merchant Marine Act, 1936,

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Maritime Administration, DOT

§ 221.15

as amended (46 App. U.S.C. 1242). If the
vessel is under the flag of a country
that is a member of the North Atlantic
Treaty Organization (NATO), the Maritime Administrator will consider this
condition satisfied if the owner furnishes satisfactory evidence that the
vessel is already in noncommercial
service under the direction of the government of a NATO country.
(3) Trade. Without the prior written
approval of the Maritime Administrator, the vessel shall not carry cargoes of any kind to or from, or be operated commercially while within the
waters of (as distinct from passage
through), a country referred to in
§ 221.13(a)(4) of this part, nor shall there
be any Charter or other Transfer of an
interest in the vessel, other than to a
Citizen of the United States, for carriage of cargoes of any kind to or from,
or for commercial operation while
within the waters of (as distinct from
passage through), any such country.
(4) Default. In the event of default
under any or all of the conditions set
forth in paragraphs (c) (1), (2) or (3) of
this section, the owner shall pay to the
Maritime
Administration,
without
prejudice to any other rights that the
United States may have, as liquidated
damages and not as a penalty, the sum
of not less than $25,000 or more than
$1,000,000, as specified in the contract,
and the vessel shall be subject to the
penalties imposed by 46 App. U.S.C. 808
and 839. Pursuant to 46 App. U.S.C. 836,
the Maritime Administrator may remit
forfeiture of the vessel upon such conditions as may be required under the
circumstances of the particular case,
including the payment of a sum in lieu
of forfeiture, and execution of a new
agreement containing substantially
the same conditions set forth above
and such others as the Maritime Administrator may deem appropriate and
which will be applicable to the vessel
for the remaining period of the original
agreement. In order to secure the payment of any such sums of money as
may be required as a result of default,
the transferee shall contractually
agree, in form and substance approved
by the Chief Counsel of the Maritime
Administration, to comply with the
above conditions and to provide a
United States commercial surety bond

or other surety acceptable to the Maritime Administrator for an amount not
less than $25,000 and not more than
$1,000,000, depending upon the type, size
and condition of the vessel. ‘‘Other surety’’ may be any one of the following:
(i) An irrevocable letter of credit,
which is acceptable to the Maritime
Administrator, issued or guaranteed by
a Citizen of the United States or by a
federally insured depository institution;
(ii) A pledge of United States Government securities;
(iii) The written guarantee of a
friendly government of which the
transferee is a national;
(iv) A written guarantee or bond by a
United States corporation found by the
Maritime Administrator to be financially qualified to service the undertaking to pay the stipulated amount;
(v) If the transferee is controlled in
any manner by one or more Citizens of
the United States, a contractual agreement in form and substance acceptable
to the Chief Counsel of the Maritime
Administration by the transferee and
the Citizens of the United States with
authority to exercise such control, if
found by the Maritime Administrator
to be financially qualified, jointly and
severally to pay the stipulated amount,
such agreement to be secured by the
written guarantee of the transferee and
each of the Citizens of the United
States or other form of guarantee as
may be required by the Maritime Administrator; or
(vi) Any other surety acceptable to
the Maritime Administrator and approved as to form and substance by the
Chief Counsel of the Maritime Administration.
(d) Foreign transfer for scrapping. If
the transfer of control, whether or not
there is a transfer of registry, of a vessel referred to in paragraph (b) of this
section is for the purpose of scrapping
the vessel abroad, the following conditions will be imposed on the transferee:
(1) The vessel or any interest therein
shall not be subsequently sold to any
Person without the prior written approval of the Maritime Administrator,
nor shall it be used for the carriage of
cargo or passengers of any kind whatsoever.

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§ 221.15

46 CFR Ch. II (10–1–08 Edition)

(2) Within a period of 18 months from
the date of approval of the sale, the
hull of the vessel shall be completely
scrapped, dismantled, dismembered, or
destroyed in such manner and to such
extent as to prevent the further use
thereof, or any part thereof, as a ship,
barge, or any other means of transportation.
(3) The scrap resulting from the demolition of the hull of the vessel, the engines, machinery, and major items of
equipment shall not be sold to, or utilized by, any citizen or instrumentality
of a country referred to in § 221.13(a)(4)
of the part, nor may such scrap be exported to these countries. The engines,
machinery and major items of equipment shall not be exported to destinations within the United States.
(4) In the event of default under any
or all of the conditions set forth in
paragraphs (d) (1), (2) or (3) of this section, the transferee shall pay to the
Maritime
Administration,
without
prejudice to any other rights that the
United States may have, as liquidated
damages and not as a penalty, the sum
of not less than $25,000 or more than
$1,000,000, as specified in the contract,
depending upon the size, type and condition of the vessel. This payment shall
be secured by a surety company bond
or other surety satisfactory to the
Maritime Administrator. ‘‘Other surety’’ may be one of those set out in
paragraph (c)(4) (i) through (vi) of this
section.
(5) There shall be filed with the Vessel Transfer Officer a certificate or
other evidence satisfactory to the Chief
Counsel of the Maritime Administration, duly attested and authenticated
by a United States Consul, that the
scrapping of the vessel (hull only) and
disposal or utilization of the resultant
scrap and the engines, machinery and
major items of equipment have been
accomplished in accord with paragraphs (d) (2) and (3) of this section.
(e) Resident agent for service. (1) Any
proposed foreign transferee shall, prior
to the issuance and delivery of the
Transfer Order covering the vessel or
vessels to be transferred, designate and
appoint a resident agent in the United
States to receive and accept service of
process or other notice in any action or
proceeding instituted by the United

States relating to any claim arising
out of the approved transaction.
(2) The resident agent designated and
appointed by the foreign transferee
shall be subject to approval by the
Maritime Administrator. To be acceptable, the resident agent must maintain
a permanent place of business in the
United States and shall be a banking or
lending institution, a ship-owner or
ship-operating corporation or other
business entity that is satisfactory to
the Maritime Administrator.
(3) Appointment and designation of
the resident agent shall not be terminated, revoked, amended or altered
without the prior written approval of
the Maritime Administrator.
(4) The foreign transferee shall file
with the Vessel Transfer Officer a written copy of the appointment of the
resident agent, which copy shall be
fully endorsed by the resident agent
stating that it accepts the appointment, that it will act thereunder and
that it will notify the Vessel Transfer
Officer in writing in the event it becomes disqualified from so acting by
reason of any legal restrictions. Service of process or notice upon any officer, agent or employee of the resident
agent at its permanent place of business shall constitute effective service
on, or notice to, the foreign transferee.
(f) Administrative provisions. (1) The
subsequent Transfer of ownership or
registry of vessels that have been
Transferred to foreign ownership or
registry or both, or to Operation Under
the Authority of a Foreign Country,
that remain subject to Maritime Administration contractual control as set
forth above, will be subject to substantially the same Maritime Administration policy considerations that governed the original Transfer, including
such changes or modifications that
have subsequently been made and continued in effect. Approval of these subsequent Transfers will be subject to the
same terms and conditions governing
the foreign Transfer at the time of the
previous Transfer, as modified (if applicable).
(2) The authorization for all approved
transactions, either by virtue of 46
App. U.S.C. 808, 835 and 839 or the Maritime Administration’s Contract with

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Maritime Administration, DOT

§ 221.19
vessel or for repairs, drydocking or
berthing changes, but only under the
command of a Citizen of the United
States.

the vessel owner, will be by notification in the form of a Transfer Order
upon receipt of the executed Contract,
the required bond or other surety, and
other supporting documentation required by the Contract.
(3) In order that the Maritime Administration’s records may be maintained on a current basis, the transferor and transferee of the vessel are
required to notify the Vessel Transfer
Officer of the date and place where the
approved transaction was completed,
and the name of the vessel, if changed.
This information relating to the completion of the transaction and any
change in name shall be furnished as
soon as possible, but not later than 10
days after the same has occurred.

[57 FR 23478, June 3, 1992, as amended at 63
FR 6881, Feb. 11, 1998]

§ 221.19 Possession or sale of vessels
by mortgagees or trustees other
than pursuant to court order.
(a) A mortgagee or a trustee of a preferred mortgage on a Documented Vessel that is not eligible to own a Documented Vessel does not require the express approval of the Maritime Administrator to take possession of the vessel
in the event of default by the mortgagor other than by foreclosure pursuant to 46 U.S.C. 31329, if provided for in
the mortgage or a related financing
document, but in such event the vessel
may not be operated, or caused to be
operated, in commerce. The vessel may
not, except as provided in paragraph (b)
of this section, be operated for any
other purpose unless approved in writing by the Maritime Administrator,
nor may the vessel be sold to a Noncitizen without the approval of the Maritime Administrator.
(b) The Maritime Administrator
hereby grants approval for such mortgagee or trustee to operate the vessel
to the extent necessary for the immediate safety of the vessel, for its direct
return to the United States or for its
movement within the United States, or
for repairs, drydocking or berthing
changes, but only under the command
of a Citizen of the United States.
(c) A Noncitizen mortgagee that has
brought a civil action in rem for enforcement of a preferred mortgage lien
on a citizen-owned Documented Vessel
pursuant to 46 U.S.C. 31325(b)(1) may
petition the court pursuant to 46 U.S.C.
31325(e)(1) for appointment of a receiver
and, if the receiver is Person eligible to
own a Documented Vessel, to authorize
the receiver to operate the mortgaged
vessel on such terms and conditions as
the court deems appropriate. If the receiver is not a Citizen of the United
States, the vessel may not be operated
in coastwise trade without prior written approval of the Maritime Administrator.

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[57 FR 23478, June 3, 1992, as amended at 63
FR 6881, Feb. 11, 1998; 66 FR 55596, Nov. 2,
2001]

§ 221.17 Sale of a documented vessel
by order of a district court.
(a) A Documented Vessel may be sold
by order of a district court only to a
Person eligible to own a Documented
Vessel or to a mortgagee of the vessel.
Unless waived by the Maritime Administrator, a Person purchasing the vessel pursuant to court order or from a
mortgagee not eligible to document a
vessel who purchased the vessel pursuant to a court order must document
the vessel under chapter 121 of title 46,
United States Code.
(b) A Person purchasing the vessel,
pursuant to court order or from a
mortgagee not eligible to document a
vessel who purchased the vessel pursuant to a court order, and wishing to obtain waiver of the documentation requirement must submit a request including the reason therefor to the Vessel Transfer Officer.
(c)(1) A mortgagee not eligible to
own a Documented Vessel shall not operate, or cause operation of, the vessel
in commerce. Except as provided in
paragraph (c)(2) of this section, the vessel may not be operated for any purpose without the prior written approval of the Maritime Administrator.
(2) The Maritime Administrator hereby grants approval for a mortgagee not
eligible to own a Documented Vessel to
operate the vessel to the extent necessary for the immediate safety of the

[57 FR 23478, June 3, 1992, as amended at 63
FR 6881, Feb. 11, 1998]

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§ 221.61

46 CFR Ch. II (10–1–08 Edition)

Subpart C [Reserved]

§ 221.65 Criteria for determining penalty.
In determining any penalties assessed, the Vessel Transfer Officer
under § 221.67 and the Hearing Officer
under §§ 221.73 to 221.89 of this part
shall take into account the nature, circumstances, extent and gravity of the
violation committed and, with respect
to the Party, the degree of culpability,
any history of prior offenses, ability to
pay and other matters that justice requires.

Subpart D—Transactions Involving
Maritime Interests in Time of
War or National Emergency
Under 46 App. U.S.C. 835 [Reserved]
Subpart E—Civil Penalties
§ 221.61

Purpose.

This subpart describes procedures for
the administration of civil penalties
that the Maritime Administration may
assess under 46 U.S.C. 31309 and 31330,
and section 9(d) of the Shipping Act,
1916, as amended (46 App. U.S.C. 808(d)),
pursuant to 49 U.S.C. 336.

§ 221.67 Stipulation procedure.
(a) When the Vessel Transfer Office
decides to proceed under this section,
that Office shall notify the Party in
writing by registered or certified
mail—
(1) Of the alleged violation and the
applicable statute and regulations;
(2) Of the maximum penalty that
may be assessed for each violation;
(3) Of a summary of the evidence supporting the violation;
(4) Of the penalty that the Vessel
Transfer Officer will accept in settlement of the violation;
(5) Of the right to examine all the
material in the case file and have a
copy of all written documents provided
upon request;
(6) That by accepting the penalty,
the Party waives the right to have the
matter considered by a Hearing Officer
in accordance with §§ 221.73 to 221.89 of
this subpart, and that if the Party
elects to have the matter considered by
a Hearing Officer, the Hearing Officer
may assess a penalty less than, equal
to, or greater than that stipulated in
settlement if the Hearing Officer finds
that a violation occurred; and
(7) That a violation will be kept on
record and may be used by the Maritime Administration in aggravation of
an assessment of a penalty for a subsequent violation by that Party.
(b) Upon receipt of the notification
specified in paragraph (a) of this section, a Party may within 30 days—
(1) Agree to the stipulated penalty in
the manner specified in the notification; or
(2) Notify in writing the Vessel
Transfer Officer that the Party elects
to have the matter considered by a
Hearing Officer in accordance with the

NOTE: Pursuant to 46 U.S.C. 31309, a general
penalty of not more than $12,000 may be assessed for each violation of chapter 313 or 46
U.S.C. subtitle III administered by the Maritime Administration, and the regulations in
this part that are promulgated thereunder,
except that a person violating 46 U.S.C. 31328
or 31329 and the regulations promulgated
thereunder is liable for a civil penalty of not
more than $30,000 for each violation. A person that charters, sells, transfers or mortgages a vessel, or an interest therein, in violation of 46 App. U.S.C. 808 is liable for a
civil penalty of not more than $12,000 for
each violation. These penalty amounts are in
accordance with Pub. L. 101–410, amended by
Pub. L. 104–134. Criminal penalties may also
apply to violations of these statutes.
[68 FR 33406, June 4, 2003]

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§ 221.63

Investigation.

(a) When the Vessel Transfer Office
obtains information that a Person may
have violated a statute or regulation
for which a civil penalty may be assessed under this subpart, that Officer
may investigate the matter and decide
whether there is sufficient evidence to
establish a prima facie case that a violation occurred.
(b) If that Officer decides there is a
prima facie case, then that Officer may
enter into a stipulation with the Party
in accordance with § 221.67 of this subpart, or may refer the matter directly
to a Hearing Officer for procedures in
accordance with § 221.73 to 221.89 of this
subpart.

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§ 221.75

procedure specified in §§ 221.73 through
221.89 of this subpart.
(c) If, within 30 days of receipt of the
notification specified in paragraph (a)
of this section, the Party neither
agrees to the penalty nor elects the informal hearing procedure, the Party
will be deemed to have waived its right
to the informal hearing procedure and
the penalty will be considered accepted. If a monetary penalty is assessed, it
is due and payable to the United
States, and the Maritime Administration may initiate appropriate action to
collect the penalty.

investigate the matter further. If additional evidence supporting a violation
is discovered, the Vessel Transfer Officer may resubmit the matter to the
Hearing Officer.
(b) If the Hearing Officer determines
that there is reason to believe that a
violation has been committed, the
Hearing Officer notifies the Party in
writing by registered or certified mail
of—
(1) The alleged violation and the applicable statute and regulations;
(2) The maximum penalty that may
be assessed for each violation;
(3) The general nature of the procedure for assessing and collecting the
penalty;
(4) The amount of the penalty that
appears to be appropriate, based on the
material then available to the Hearing
Officer;
(5) The right to examine all the material in the case file and have a copy
of all written documents provided upon
requests; and
(6) The right to request a hearing.
(c) If at any time it appears that the
addition of another Party to the proceedings is necessary or desirable, the
Hearing Officer will provide the additional Party and the Party alleged to
be in violation with notice as described
above.
(d) At any time during a proceeding,
before the Hearing Officer issues a decision under § 221.89, the Hearing Officer and the Party may agree to a Settlement of the case.

§ 221.69 Hearing Officer.
(a) The Hearing Officer shall have no
responsibility, direct or supervisory,
for the investigation of cases referred
for the assessment of civil penalties.
(b) The Hearing Officer shall decide
each case on the basis of the evidence
before him or her, and must have no
prior connection with the case. The
Hearing Officer is solely responsible for
the decision in each case referred to
him or her.
(c) The Hearing Officer is authorized
to administer oaths and issue subpoenas necessary to the conduct of a
hearing, to the extent provided by law.

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§ 221.71 Hearing Officer referral.
If, pursuant to § 221.67(b)(2) of this
subpart, a Party elects to have the
matter referred to a Hearing Officer,
the Vessel Transfer Officer may—
(a) Decide not to proceed with penalty action, close the case, and notify
the Party in writing that the case has
been closed; or
(b) Refer the matter to a Hearing Officer with the case file and a record of
any prior violations by the Party.

§ 221.75 Response by party.
(a) Within 30 days after receipt of notice from the Hearing Officer, the
Party, or counsel for the Party, may—
(1) Pay the amount specified in the
notice as being appropriate;
(2) In writing request a hearing,
specifying the issues in dispute; or
(3) Submit written evidence or arguments in lieu of a hearing.
(b) The right to a hearing is waived if
the Party does not submit a request to
the Hearing Officer within 30 days after
receipt of notice from the Hearing Officer, unless additional time has been
granted by the Hearing Officer.
(c) The Hearing Officer has discretion
as to the venue and scheduling of a
hearing. The hearing will normally be

§ 221.73 Initial Hearing Officer consideration.
(a) When a case is received for action,
the Hearing Officer shall examine the
material submitted. If the Hearing Officer determines that there is insufficient evidence to proceed, or that there
is any other reason which would make
penalty action inappropriate, the Hearing Officer shall return the case to the
Vessel Transfer Officer with a written
statement of the reason. The Vessel
Transfer Officer may close the case or

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§ 221.77

46 CFR Ch. II (10–1–08 Edition)

held at the office of the Hearing Officer. A request for a change of location
of a hearing or transfer to another
Hearing Officer must be in writing and
state the reasons why the requested action is necessary or desirable. Action
on the request is at the discretion of
the Hearing Officer.
(d) A Party who has requested a hearing may amend the specification of the
issues in dispute at any time up to 10
days before the scheduled date of the
hearing. Issues raised later than 10
days before the schedule hearing may
be presented only at the discretion of
the Hearing Officer.
§ 221.77

(1) It has been furnished by a Party;
or
(2) It has been furnished pursuant to
a subpoena.
§ 221.81 Counsel.
A Party has the right to be represented at all stages of the proceeding
by counsel. After receiving notification
that a Party is represented by counsel,
the Hearing Officer will direct all further communications to that counsel.
§ 221.83 Witnesses.
A Party may present the testimony
of any witness either through a personal appearance or through a written
statement. The Party may request the
assistance of the Hearing Officer in obtaining the personal appearance of a
witness. The request must be in writing and state the reasons why a written
statement would be inadequate, the
issue or issues to which the testimony
would be relevant, and the substance of
the expected testimony. If the Hearing
Officer determines that the personal
appearance of the witness may materially aid in the decision on the case, the
Hearing Officer will seek to obtain the
witness’ appearance. The Hearing Officer may move the hearing to the witness’ location, accept a written statement, or accept a stipulation in lieu of
testimony.

Disclosure of evidence.

The Party shall, upon request, be
provided a free copy of all the evidence
in the case file, except material that
would disclose or lead to the disclosure
of the identity of a confidential informant and any other information
properly exempt from disclosure.

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§ 221.79 Request for confidential treatment.
(a) In addition to information treated
as confidential under § 221.77 of this
subpart, a request for confidential
treatment of a document or portion
thereof may be made by the Person
supplying the information on the basis
that the information is—
(1) Confidential financial information, trade secrets, or other material
exempt from disclosure by the Freedom of Information Act (5 U.S.C. 552);
(2) Required to be held in confidence
by 18 U.S.C. 1905; or
(3) Otherwise exempt by law from disclosure.
(b) The Person desiring confidential
treatment must submit the request to
the Hearing Officer in writing and the
reasons justifying nondisclosure. The
Hearing Officer shall forward any request for confidential treatment to the
appropriate official of the Maritime
Administration for a determination
hereon. Failure to make a timely request may result in a document being
considered as nonconfidential and subject to release.
(c) Confidential material shall not be
considered by the Hearing Officer in
reaching a decision unless—

§ 221.85 Hearing procedures.
(a) The Hearing Officer shall conduct
a fair and impartial proceeding in
which the Party is given a full opportunity to be heard. At the opening of a
hearing, the Hearing Officer shall advise the Party of the nature of the proceedings and of the alleged violation.
(b) The material in the case file pertinent to the issues to be determined
by the Hearing Officer shall first be
presented. The Party may examine, respond to and rebut this material. The
Party may offer any facts, statements,
explanations, documents, sworn or
unsworn testimony, or other exculpatory items that bear on the issues, or
which may be relevant to the size of an
appropriate penalty. The Hearing Officer may require the authentication of
any written exhibit or statement.
(c) At the close of the Party’s presentation of evidence, the Hearing Officer

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§ 221.93

may allow the introduction of rebuttal
evidence. The Hearing Officer may
allow the Party to respond to rebuttal
evidence submitted.
(d) In receiving evidence, the Hearing
Officer shall not be bound by the strict
rules of evidence. In evaluating the evidence presented, the Hearing Officer
shall give due consideration to the reliability and relevance of each item of
evidence.
(e) After the evidence in the case has
been presented, the Party may present
argument on the issues in the case. The
party may also request an opportunity
to submit a written statement for consideration by the Hearing Officer. The
Hearing Officer shall allow a reasonable time for submission of the statement and shall specify the date by
which it must be received. If the statement is not received within the specified time, the Hearing Officer may
render a decision in the case without
consideration of the statement.

adverse, shall advise the Party of the
right to an administrative appeal to
the Maritime Administrator or an individual designated by the Administrator
from that decision.
(d) If an appeal is not filed within the
prescribed time, the decision of the
Hearing Officer constitutes final agency action in the case.
§ 221.91

§ 221.87 Records.
(a) A verbatim transcript of a hearing will not normally be prepared. The
Hearing Officer will prepare notes on
material and points raised by the
Party in sufficient detail to permit a
full and fair review of the case.
(b) A Party may, at its own expense,
cause a verbatim transcript to be
made, in which event the Party shall
submit, without charge, two copies to
the Hearing Officer within 30 days of
the close of the hearing.

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Appeals.

(a) Any appeal from the decision of
the Hearing Officer must be submitted
in writing by the Party to the Hearing
Officer within 30 days from the date of
receipt of the Hearing Officer’s decision.
(b) The only issues that will be considered on appeal are those issues specified in the appeal which were raised
before the Hearing Officer and jurisdictional questions.
(c) There is no right to oral argument
on an appeal.
(d) The Maritime Administrator or
an individual designated by the Administrator will issue a written decision on
the appeal, and may affirm, reverse, or
modify the decision, or remand the
case for new or additional proceedings.
In the absence of a remand, the decision on appeal is final agency action.
(e) The Maritime Administrator or
an individual designated by the Administrator shall notify the Party in writing, by certified or registered mail, of
the decision on appeal and, if adverse,
shall advise the Party of the right of
appeal to the courts.

§ 221.89 Hearing Officer’s decision.
(a) The Hearing Officer shall issue a
written decision. Any decision to assess a penalty shall be based on substantial evidence in the record, and
shall state the basis for the decision.
(b) If the Hearing Officer finds that
there is not substantial evidence in the
record establishing the alleged violation, the Hearing Officer shall dismiss
the case. A dismissal is without prejudice to the Vessel Transfer Officer’s
right to refile the case if additional
evidence is obtained. A dismissal following a rehearing is final and with
prejudice.
(c) The Hearing Officer shall notify
the Party in writing, by certified or
registered mail, of the decision and, if

§ 221.93

Collection of civil penalties.

Within 30 days after receipt of the
Hearing Officer’s decision, or a decision
on appeal, the Party must submit payment of any assessed penalty in the
manner specified in the decision letter.
Failure to make timely payment will
result in the institution of appropriate
action to collect the penalty.

Subpart F—Other Transfers Involving Documented Vessels [Reserved]

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§ 221.111

46 CFR Ch. II (10–1–08 Edition)
570
580
590

Subpart G—Savings Provisions
§ 221.111 Status of prior transactions—
controlling dates.
(a) The Maritime Administrator
hereby grants approval for any transaction occurring on or after January 1,
1989 and prior to July 3, 1991 that was
lawful under 46 CFR part 221, revised as
of October 1, 1989.
(b) The Maritime Administrator
hereby grants approval for any transaction occurring on or after July 3, 1991
and prior to June 3, 1992 that was lawful under 46 CFR part 221, revised as of
October 1, 1991.
(c) Any transaction approved by the
Maritime Administrator prior to January 1, 1989, or any transaction that did
not require such approval prior to that
date, shall continue to be lawful.

INCOME STATEMENT
232.5 Income statement accounts.
(D) Revenue Accounts
600 Vessel Revenue
640 Operating-Differential Subsidy
650 Other Shipping Operations Revenue
670 Other Revenue
(E) Expense Accounts
700 Vessel Operating Expense
750 Vessel Port Call Expense
760 Cargo Handling Expense
800 Inactive Vessel Expense
860 Other Shipping Operations Expense
900 General and Administrative Expenses
940 Depreciation and Amortization Expense
950 Other Expense
960 Interest Expense
970 Income Taxes
990 Cumulative Effect of Change in Accounting Policy
995 Income or Loss from Extraordinary
Items Net of Taxes
232.6 Financial report filing requirement.

PART 232—UNIFORM FINANCIAL
REPORTING REQUIREMENTS
Sec.
232.1 Purpose and applicability.
232.2 General instructions.
232.2 (a) Use of Generally Accepted Accounting Principles
(b) Need to Conform Accounting Information
(c) Reconciliation of Financial Reports
(d) Submission of Questions
(e) Effective Date
232.3 Chart of accounts.

AUTHORITY: Section 204(b), Merchant Marine Act, 1936, as amended (46 App. U.S.C.
1114(b)); 49 CFR 1.66.
SOURCE: 48 FR 30122, June 30, 1983, unless
otherwise noted.

§ 232.1 Purpose and applicability.
(a) Purpose. The purpose of this regulation is to establish uniform reporting
requirements for the preparation of financial reports and submissions of information to the Maritime Administration. The Maritime Administration
will, as necessary, issue clarifying instructions to those subject to these reporting requirements to assist in their
interpretation and application. The
uniform reporting requirements consist
of:
(1) A chart of accounts defined in this
regulation.
(2) Standard financial report formats,
set forth in Form MA–172 (Revised).
(b) Applicability. This regulation is
application to all participants in financial assistant programs administered
by the Maritime Administration, U.S.
Department of Transportation, that
are required to file periodic financial
reports with that agency.

BALANCE SHEET

erowe on PROD1PC63 with CFR

Invested Capital
Treasury Stock
Retained Earnings

232.4 Balance sheet accounts.
(A) Asset Accounts
100 Cash
120 Marketable Securities
140 Notes Receivable
150 Accounts Receivable
160 Allowance for Bad Debts
170 Other Current Assets
300 Restricted Funds
310 Investments
330 Property and Equipment
360 Deferred Charges
380 Other Assets
390 Intangible Assets
(B) Liability Accounts
400 Notes Payable and Current Portion
of Long-Term Debt
420 Accounts Payable
440 Accrued Liabilities
450 Other Current Liabilities
470 Advance Payments and Deposits
510 Long-Term Debt
530 Other Liabilities
560 Deferred Credits
(C) Equity Accounts

[48 FR 30122, June 30, 1983, as amended at 58
FR 62043, Nov. 24, 1993]

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