[Federal Register Volume 78, Number 115 (Friday, June 14, 2013)]
[Rules and Regulations]
[Pages 35769-35771]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-13992]



Maritime Administration

46 CFR Part 221

[Docket No. MARAD-2013-0021]
RIN 2133-AB81

Retrospective Review Under E.O. 13563: Regulated Transactions 
Involving Documented Vessels and Other Maritime Interests

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Final rule.


SUMMARY: In accordance with Executive Order 13563, ``Improving 
Regulation and Regulatory Review,'' the Maritime Administration (MarAd) 
is evaluating the continued accuracy of its rules and determining 
whether they effectively address current issues and provide the 
regulated public with necessary guidance. As part of this review, MarAd 
has decided to issue this final rule to correct numerous citations in 
accordance with the codification of Title 46 of the United States Code, 
update relevant agency contacts, update citations, and revise portions 
of the text. This rulemaking will have no substantive effect on the 
regulated public.

DATES: This rule is effective July 15, 2013.

FOR FURTHER INFORMATION CONTACT: You may contact T. Mitchell Hudson, 
Jr., Attorney-Advisor, Office of Chief Counsel, at (202) 366-9373. You 
may send mail to Mr. Hudson at Office of Chief Counsel, MAR-222, 
Maritime Administration, 1200 New Jersey Avenue SE., Washington, DC 
20590-0001. You may send electronic mail to Mitch.Hudson@dot.gov.



    On January 18, 2011, President Obama issued Executive Order 13563, 
which outlined a plan to improve regulation and regulatory review (76 
FR 3821, 1/21/11). Executive Order 13563 reaffirms and builds upon 
governing principles of contemporary regulatory review, including 
Executive Order 12866, ``Regulatory Planning and Review,'' (58 FR 
51735, 10/4/1993), by requiring Federal agencies to design cost-
effective, evidence-based regulations that are compatible with economic 
growth, job creation, and competitiveness. The President's plan 
recognizes that these principles should not only guide the Federal 
government's approach to new regulations, but to existing ones as well. 
To that end, Executive Order 13563 requires agencies to promote 
retrospective analysis of rules that may be outmoded, ineffective, 
insufficient, or excessively burdensome.
    Accordingly, the Maritime Administration identified its regulations 
governing transactions involving documented vessels and other maritime 
interests for improvement consistent with the President's Order. The 
regulations were deemed to provide out-of-date information and 
citations. By updating agency regulations, this rulemaking will make 
the regulatory program more effective and less burdensome on the 
    As authorized by Subtitle III of 46 U.S.C. Chapters 301 and 313, 
and Subtitle V of 46 U.S.C. Chapter 561, and delegated under 49 CFR 
1.93, MarAd may approve transactions involving the transfer of interest 
in or control of Documented Vessels owned by Citizens of the United 
States to Noncitizens or approve a Documented Vessel to registry or 
operation under the authority of a foreign country or for scrapping in 
a foreign country. In addition, under Part 221, MarAd may assess civil 
penalties arising under commercial instruments and maritime liens in 
time of war or national emergency. Part 221 is now being updated to 
include technical changes such as MarAd's address at 1200 New Jersey 
Avenue and to include corrections to statutory references, some of 
which were made obsolete as the result of the codification of the 
Appendix to Title 46 of the United States Code.

Rulemaking Analysis and Notices

Executive Orders 12866 (Regulatory Planning and Review), 13563 
(Improving Regulation and Regulatory Review) and DOT Regulatory 
Policies and Procedures

    Under E.O. 12866 (58 FR 51735, October 4, 1993), supplemented by 
E.O. 13563 (76 FR 3821, January 18, 2011) and DOT policies and 
procedures, MarAd must determine whether a regulatory action is 
``significant,'' and therefore subject to Office of Management and 
Budget (``OMB'') review and the requirements of the E.O. The Order 
defines ``significant regulatory action'' as one likely to result in a 
rule that may: (1) Have an annual effect on the economy of $100 million 
or more or adversely affect in a material way the economy, a sector of 
the economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal government or communities; 
(2) Create

[[Page 35770]]

a serious inconsistency or otherwise interfere with an action taken or 
planned by another Agency; (3) Materially alter the budgetary impact of 
entitlements, grants, user fees, or loan programs or the rights and 
obligations of recipients thereof; and (4) Raise novel legal or policy 
issues arising out of legal mandates, the President's priorities, or 
the principles set forth in the E.O.
    MarAd has determined that this final rule is not considered a 
significant regulatory action under section 3(f) of Executive Order 
12866 and, therefore, it was not reviewed by the Office of Management 
and Budget. This final rule will not result in any of the effects 
contemplated under E.O. 12866 or E.O. 13563. It also is not considered 
a major rule for purposes of Congressional review under Pub. L. 104-
121. The rule is also not significant under the Regulatory Policies and 
Procedures of the Department of Transportation (44 FR 11034, February 
26, 1979). The costs and overall economic impact of this rulemaking do 
not require further analysis.

Executive Order 13132 (Federalism)

    We analyzed this rulemaking in accordance with the principles and 
criteria contained in Executive Order 13132 (``Federalism'') and have 
determined that it does not have sufficient Federalism implications to 
warrant the preparation of a Federalism summary impact statement. This 
rule has no substantial effect on the States, or on the current 
Federal-State relationship, or on the current distribution of power and 
responsibilities among the various local officials. Nothing in this 
document preempts any State law or regulation. Therefore, MarAd did not 
consult with State and local officials because it was not necessary.

Executive Order 13175 (Consultation and Coordination With Indian Tribal 

    MarAd does not believe that this final rule will significantly or 
uniquely affect the communities of Indian tribal governments when 
analyzed under the principles and criteria contained in Executive Order 
13175 (Consultation and Coordination with Indian Tribal Governments). 
Therefore, the funding and consultation requirements of this Executive 
Order do not apply.

Executive Order 12372 (Intergovernmental Review)

    The regulations implementing Executive Order 12372 regarding 
intergovernmental consultation on Federal programs and activities do 
not apply to this rule.

Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980 requires MarAd to assess 
whether this rule would have a significant economic impact on a 
substantial number of small entities and to minimize any adverse 
impact. MarAd certifies that this rule will not have a significant 
economic impact on a substantial number of small entities.

Environmental Assessment

    We have analyzed this final rule for purposes of compliance with 
the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
and have concluded that under the categorical exclusions provision in 
section 4.05 of Maritime Administrative Order (MAO) 600-1, ``Procedures 
for Considering Environmental Impacts,'' 50 FR 11606 (March 22, 1985), 
neither the preparation of an Environmental Assessment, an 
Environmental Impact Statement, nor a Finding of No Significant Impact 
for this rulemaking is required. This rulemaking has no environmental 

Executive Order 13211 (Energy Supply, Distribution, or Use)

    MarAd has determined that the final rule will not significantly 
affect energy supply, distribution, or use. Therefore, no Statement of 
Energy Effects is required.

Executive Order 13045 (Protection of Children)

    Executive Order 13045, Protection of Children from Environmental 
Health Risks and Safety Risks, requires agencies issuing ``economically 
significant'' rules that involve an environmental health or safety risk 
that may disproportionately affect children, to include an evaluation 
of the regulation's environmental health and safety effects on 
children. As discussed previously, this final rule is not economically 
significant, and it will cause no environmental or health risk that 
disproportionately affects children.

Executive Order 12988 (Civil Justice Reform)

    This action meets applicable standards in sections 3(a) and 3(b)(2) 
of E.O. 12988, Civil Justice Reform, to minimize litigation, eliminate 
ambiguity, and reduce burden.

Executive Order 12630 (Taking of Private Property)

    This rule will not effect a taking of private property or otherwise 
have taking implications under Executive Order 12630, Governmental 
Actions and Interference with Constitutionally Protected Property 

National Technology Transfer and Advancement Act

    The National Technology Transfer and Advancement Act (15 U.S.C. 272 
note) requires Federal agencies adopting Government technical standards 
to consider whether voluntary consensus standards are available. If the 
Agency chooses to adopt its own standards in place of existing 
voluntary consensus standards, it must explain its decision in a 
separate statement to OMB. MarAd determined that there are no voluntary 
national consensus standards related to vessel registry transfer 
requests or other maritime interests under this regulation.

International Trade Impact Assessment

    This rule is not expected to contain standards-related activities 
that create unnecessary obstacles to the foreign commerce of the United 

Privacy Impact Assessment

    Section 522(a)(5) of the Transportation, Treasury, Independent 
Agencies, and General Government Appropriations Act, 2005 (Pub. L. 108-
447, div. H, 118 Stat. 2809 at 3268) requires the Department of 
Transportation and certain other Federal agencies to conduct a privacy 
impact assessment of each final rule that will affect the privacy of 
individuals. Claims submitted under this rule will be treated the same 
as all legal claims received by MarAd. The processing and treatment of 
any claim within the scope of this rulemaking by MarAd shall comply 
with all legal, regulatory, and policy requirements regarding privacy.

Paperwork Reduction Act

    Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501 et 
seq.), Federal agencies must obtain approval from OMB for each 
collection of information they conduct, sponsor, or require through 
regulations. This final rule provides regulatory clarification to those 
seeking to transfer their vessels to noncitizens, or to registry or 
operation under the authority of a foreign country as well as 
addressing other maritime interests. This rulemaking contains no new or 
amended information collection or recordkeeping requirements that have 
been approved or require approval by the Office of Management and 

Unfunded Mandates Reform Act of 1995

    The Unfunded Mandates Reform Act of 1995 requires Agencies to 
evaluate whether an Agency action would result

[[Page 35771]]

in the expenditure by State, local, and tribal governments, in the 
aggregate, or by the private sector, of $141.3 million or more (as 
adjusted for inflation) in any one year, and if so, to take steps to 
minimize these unfunded mandates. This final rule does not impose 
unfunded mandates under the Unfunded Mandates Reform Act of 1995. It 
does not result in costs of $141.3 million or more to either State, 
local, or tribal governments, in the aggregate, or to the private 
sector, and is the least burdensome alternative that achieves the 
objectives of the rule.

 Regulation Identifier Number (RIN)

    A regulation identifier number (RIN) is assigned to each regulatory 
action listed in the Unified Agenda of Federal Regulations. The 
Regulatory Information Service Center publishes the Unified Agenda in 
April and October of each year. The RIN number contained in the heading 
of this document can be used to cross-reference this action with the 
Unified Agenda.

List of Subjects in 46 CFR Part 221

    Administrative practice and procedure, Maritime carriers, 
Mortgages, Penalties, Reporting and recordkeeping requirements, Trusts 
and trustees.

    Accordingly, MarAd amends 46 CFR part 221 as follows:


1. The authority citation for part 221 is revised to read as follows:

    Authority:  46 U.S.C. chs. 301, 313, and 561; 49 CFR 1.93.

Sec.  221.1  [Amended]

2. In Sec.  221.1:
a. In paragraph (a)(1), remove ``46 App. U.S.C. 808'' and add, in its 
place, ``46 U.S.C. 56101 and 56103''.
b. In paragraph (a)(2), remove ``46 App. U.S.C. 835'' and add, in its 
place, ``46 U.S.C. 56102''.

3. In Sec.  221.3:
a. In paragraph (a), remove ``46 App. U.S.C. 883-1(a)-(e)'' and add, in 
its place, ``46 U.S.C. 12118''.
b. In paragraph (c) introductory text, remove ``46 App. U.S.C. 803'' 
and add, in its place, ``46 U.S.C. 50502''.
c. In paragraph (d)(5), remove ``46 App. U.S.C. 802'' and add, in its 
place, ``46 U.S.C. 50501''.
d. Revise paragraph (u).
    The revision reads as follows:

Sec.  221.3  Definitions.

* * * * *
    (u) Vessel Transfer Officer means the Maritime Administration's 
Vessel Transfer and Disposal Officer, whose address is MAR-630, 
Maritime Administration, United States Department of Transportation, 
1200 New Jersey Ave. SE., Washington, DC 20590, or that person's 

Sec.  221.5  [Amended]

4. In Sec.  221.5(a), remove ``sections 9 or 37 of the Shipping Act of 
1916 (46 App. U.S.C. 808 and 837)'' and add, in its place, ``46 U.S.C. 
56101 and 56103''.

Sec.  221.11  [Amended]

5. In Sec.  221.11(a) introductory text, remove ``12106(e)'' and add, 
in its place, ``12119''.

Sec.  221.13  [Amended]

6. In Sec.  221.13(a), remove ``46 App. U.S.C. 808(c)(1)'' and add, in 
its place, ``46 U.S.C. 56101''.
7. In Sec.  221.15:
a. In paragraph (a)(3), remove ``section 37 of the Shipping Act, 1916, 
as amended (46 App. U.S.C. 835)'' and add, in its place, ``46 U.S.C. 
b. In paragraph (c)(2), remove ``section 902 of the Merchant Marine 
Act, 1936, as amended (46 App. U.S.C. 1242)'' and add, in its place, 
``46 U.S.C. chapters 563 and 565''.
c. In paragraph (c)(4), revise the second sentence.
d. In paragraph (f)(2), remove ``App. U.S.C. 808, 835 and 839,'' and 
add, in its place ``U.S.C. chapter 561''.
    The revision reads as follows:

Sec.  221.15  Approval for transfer of registry or operation under 
authority of a foreign country or for scrapping in a foreign country.

* * * * *
    (c) * * *
    (4) * * * Pursuant to 46 U.S.C. 56105, 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. * * *
* * * * *

8. In Sec.  221.61, revise the introductory text to read as follows:

Sec.  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 46 U.S.C. 56101, pursuant to 49 U.S.C. 336.
* * * * *

    By Order of the Maritime Administrator.
Julie Agarwal,
Secretary, Maritime Administration.
[FR Doc. 2013-13992 Filed 6-13-13; 8:45 am]