PART 388—ADMINISTRATIVE WAIVERS OF THE COASTWISE TRADE LAWS Authority: 46 App. U.S.C. 1114(b); Pub. L. 105-383, 112 Stat. 3445 (46 U.S.C. 12106 note): 49 CFR 1.66. Source: 69 FR 51772, Aug. 23, 2004, unless otherwise noted. § 388.1 Purpose. This part prescribes regulations implementing the provisions of Title V of Public Law 105-383 (112 Stat. 3445), which grants the Secretary authority to review and approve applications for waiver of the coastwise trade laws to allow the carriage of no more than twelve passengers for hire on vessels, which are three years old or more, built or rebuilt outside the United States, and grants authority for revocation of those waivers. § 388.2 Definitions. For the purposes of this part: (a) Administrator (b) Coastwise Trade Laws (1) The Coastwise Endorsement Provision of the Vessel Documentation Laws, (46 U.S.C. 12106); (2) The Passenger Services Act, section 8 of the Act of June 19, 1886 (46 App. U.S.C. 289); and (3) The Jones Act, section 27 of the Merchant Marine Act, 1920 (46 App. U.S.C. 883). (c) Eligible Vessel (1) Was not built in the United States and is at least 3 years of age; or (2) If rebuilt, was rebuilt outside the United States at least 3 years before the certificate of documentation with appropriate endorsement if granted, would become effective. (d) MARAD (e) Secretary (f) The terms small passenger vessel, uninspected passenger vessel passenger for hire (g) Fraud [69 FR 51772, Aug. 23, 2004, as amended at 75 FR 28206, May 20, 2010] § 388.3 Application and fee. (a) An owner of a vessel may choose either of two methods to apply for an administrative waiver of the coastwise trade laws of the United States for an eligible vessel to carry no more than twelve passengers for hire. (1) The application form contained on MARAD's Web site at http://www.marad.dot.gov (2) Alternatively, applicants may send written applications to Small Passenger Vessel Waiver Applications, Office of Cargo Preference, MAR-730, 1200 New Jersey Ave., SE., Washington, DC 20590. Written applications need not be in any particular format, but must be signed, be accompanied by a check made out to the order of “Maritime Administration,” and contain the following information: (i) Name of vessel and owner for which waiver is requested and the vessel's official number. (ii) Size, capacity and tonnage of vessel (state whether tonnage is measured pursuant to 46 U.S.C. 14502, or otherwise, and if otherwise, how measured). (iii) Intended use for vessel, including geographic region of intended operation and trade. (iv) Date and place of construction and (if applicable) rebuilding. (If applicant is unable to document the origin of the vessel, foreign construction will be assumed). (v) Name, address, and telephone number of the vessel owner. (vi) A statement on the impact this waiver will have on other commercial passenger vessel operators, including a statement describing the operations of existing operators. (vii) A statement on the impact this waiver will have on U.S. shipyards. (viii) A statement that the applicant represents that the foregoing information is true to the best of the applicant's knowledge. (b) MARAD may ask additional questions of the applicant as part of the application review. [69 FR 51772, Aug. 23, 2004, as amended at 70 FR 66797, Nov. 3, 2005; 75 FR 28206, May 20, 2010] § 388.4 Criteria for grant of a waiver. (a) General Criteria. (i) United States vessel builders; or (ii) The coastwise trade business of any person who employs vessels built in the United States in that business. (2) The determination of “unduly adverse affect” on a coastwise operator or a U.S. vessel builder may not be limited to operators or builders of vessels carrying 12 or fewer passengers. (3) We may evaluate the expected impact of the proposed waiver on the basis of the information received from all sources, including public comment, internal investigation and analysis, and any other sources of information deemed appropriate. (b) Impact on U.S. vessel builders. (c) Impact on coastwise trade business. (1) Whether the proposed vessel of the applicant and a vessel of an existing operator (or the vessel of an operator that can demonstrate it has taken definite steps to begin operation) would provide similar commercial service and would operate in the same geographic area. (2) The number of similar vessels operating or proposed to operate in the same market with the same or similar itinerary, relative to the size of the market. For example, a single vessel may have a small impact on a large market. (d) Advance notice and approval needed for changes. § 388.5 Criteria for revocation of a waiver. We shall revoke a waiver previously granted under this part if we determine, after notice and opportunity for a hearing, that fraud was involved in any part of the waiver application. § 388.6 Process. (a) Initial process. http://dot.dms.gov. (2) Applications being processed on the merits will be noticed in the Federal Register. (b) Revocation. Federal Register. (c) Review of determinations. Federal Register http://dms.dot.gov. (2) Such petitions and responses must either be sent by facsimile to the Secretary, Maritime Administration, at (202) 366-9206 or filed electronically in the appropriate DOT docket at http://dms.dot.gov.