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Code of Federal Regulations (Last Updated: July 5, 2024) |
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Title 46 - Shipping |
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Chapter II - Maritime Administration, Department of Transportation |
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SubChapter J - Miscellaneous |
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Part 356 - Requirements for Vessels of 100 Feet or Greater in Registered Length to Obtain a Fishery Endorsement to the Vessel'S Documentation |
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Subpart I - Review of Harvesting and Processing Compliance |
§ 356.55 - Review of compliance with harvesting and processing quotas.
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§ 356.55 Review of compliance with harvesting and processing quotas.
(a) Upon the request of either the North Pacific Fishery Management Council (“NPFMC”) or the Secretary of Commerce, the Chief Counsel will review any allegation that an individual or entity has exceeded the allowable percentage for harvesting or processing pollock as provided for in section 210(e)(1) or (2) of the AFA.
(b) Following a request for MARAD review under paragraph (a) of this section, the NPFMC and the Secretary of Commerce (through the National Oceanic and Atmospheric Administration and the National Marine Fisheries Service) will transmit to MARAD any relevant information in their possession including, but not limited to:
(1) The identity of the parties alleged to have exceeded the excessive share caps;
(2) The relevant harvesting or processing data (the amount harvested or processed by particular parties);
(3) Any information that would be helpful in determining if the parties are related;
(4) Any information regarding the ownership structure of the parties, including:
(i) Articles of incorporation;
(ii) Bylaws;
(iii) Identity of shareholders and the percentage owned;
(iv) Any contracts or agreements that would demonstrate ownership or control of one party by another allegedly related party; and
(v) Any other evidence that would demonstrate ownership or control of one party by another allegedly related party.
(c) If MARAD determines during the course of its review that additional information is required from the parties alleged to have exceeded the excessive share cap, the Chief Counsel will advise the Secretary of Commerce and/or the NPFMC what information is required. The Secretary and/or the NPFMC will request that specific parties submit the required information to MARAD.
(d) The Chief Counsel will make a finding as soon as practicable and will submit it to the Secretary of Commerce and the NPFMC.
(e) For purposes of this section, if 10% or more of the interest in an entity is owned or controlled either directly or indirectly by another individual or entity, the two entities will be considered the same entity for purposes of applying the harvesting and processing caps.
(1) For purposes of this section, an entity will be deemed to have an ownership interest in a pollock harvesting or processing entity if it either owns a percentage of the pollock harvesting or processing entity directly or if ownership can be traced through intermediate entities to the pollock harvesting or processing entity. To determine the percentage of ownership interest that an entity has in a pollock harvesting or processing entity where the ownership interest passes through one or more intermediate entities, the entity's percentage of direct interest in an intermediate entity is multiplied by the intermediate entity's percentage of direct or indirect interest in the pollock harvesting or processing entity.
(2) For purposes of this section, an entity will be deemed to exercise 10% or greater control over a pollock harvesting or processing entity if:
(i) It has the right to direct the business of the pollock harvesting or processing entity;
(ii) It has the right to appoint members to the management team of the pollock harvesting or processing entity such as the directors of a corporation or is a general partner or joint venturer in a harvesting or processing entity;
(iii) It has the right to direct the business of an entity that directly or indirectly owns or controls 10% of a harvesting or processing entity; or
(iv) It owns 50% or more of an entity that owns or controls 10 percent of a pollock harvesting or processing entity.
(f) If the Secretary of Commerce determines that there is enough evidence to pursue an enforcement action for violation of the harvesting or processing caps contained in section 210(e) of the AFA, the Person against whom an enforcement action is taken is entitled to notice and an opportunity for a hearing before the Secretary of Commerce in accordance with 5 U.S.C. 554.