46 C.F.R. Subpart B—Foreign-Flag Competition
Title 46 - Shipping
The foreign-flag competition shall form the basis for determining the cost disadvantage of operating the subsidized vessels in the essential service. The Maritime Administrator shall determine the foreign-flag competition from those countries that have carried a significant amount of cargo in the service by using the following procedures: (a) The primary source of information shall be commodity import/export data compiled by the Bureau of the Census. Cargo data shall be compiled in long tons. Trade publications which show advertised sailings shall be used to verify the liner services offered by foreign-flag operators. (b) The U.S. import/export data shall be compiled by reference to countries actually served by the subsidized operator, using the subsidized operator's own competition data for each country to eliminate the flags which are not substantial competitors with the subsidized vessels. An example of the weighting procedure follows: (c) The principal foreign flags shall be those countries whose cargo carrying would rank the flag among those carriers that aggregate at least 50 percent of the total foreign-flag carryings. (d) The total cargo carryings of each principal foreign flag shall be expressed as a percentage of total cargo carryings of all principal flags on the service. The resultant ratio shall be applied to the costs of that principal flag for determining its portion of the composite foreign cost, which shall be used for establishing the cost disadvantage of U.S. vessles in the service. (e) The determination of the principal competitors and competition weight factors shall be based upon the import/export data for the twelve months of the penultimate calendar year preceding January 1 of the subsidized year to allow several months to collect foreign cost data. The operators under each principal foreign flag shall be ranked as predominant, secondary, etc., for the purpose of establishing the priority of costs which are representative of the flag. For liner cargo vessels, the ranking of operators shall be based on the long tons of cargo carried. (a) If the predominant operator is an agent, charterer or a joint venture in which the vessels are owned by two or more lines, under the name of such agent, charterer or joint venture, the predominant operator shall be the owner whose vessels carried the most cargo. (b) If cost experience cannot be obtained for the foreign-flag operators in the subsidized service, MARAD may use the costs of another service, following the same ranking of operators, if possible.
Title 46: Shipping
PART 282—OPERATING-DIFFERENTIAL SUBSIDY FOR LINER VESSELS ENGAGED IN ESSENTIAL SERVICES IN THE FOREIGN COMMERCE OF THE UNITED STATES
Subpart B—Foreign-Flag Competition
§ 282.10 Basis for determining foreign-flag competition.
Example---------------------------------------------------------------------------------------------------------------- Country Country Country A B C Total----------------------------------------------------------------------------------------------------------------I. Determination of U.S.-Flag Weights: U.S. Subsidized Carrier...................................... 300 500 200 1,000 Percent...................................................... 30 50 20 100II. Actual Foreign-Flag Carryings: Flag 1....................................................... 1,500 500 1,000 3,000 Flag 2....................................................... 4,000 6,000 0 10,000 Flag 3....................................................... 5,000 2,000 5,000 12,000III. Adjusted Foreign-Flag Carrying (Actual Foreign x U.S. wts): Flag 1....................................................... 450 250 200 900 Flag 2....................................................... 1,200 3,000 0 4,200 Flag 3....................................................... 1,500 1,000 1,000 3,500 --------------------------- .......... ....... ....... 8,600IV. Competition Computation: .......... Actual ....... Re-weight percent (percent) Flag 2....................................................... 4200/8600 49.0 ....... 55.0 Flag 3....................................................... 3500/8600 41.0 ....... 45.0 --------- ------------------ .......... 90.0 ....... 100.0----------------------------------------------------------------------------------------------------------------
§ 282.11 Ranking of flags.
