95-8386. Vessel Rebuilt Determinations  

  • [Federal Register Volume 60, Number 65 (Wednesday, April 5, 1995)]
    [Proposed Rules]
    [Pages 17289-17294]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-8386]
    
    
    
    =======================================================================
    -----------------------------------------------------------------------
    [[Page 17290]]
    
    DEPARTMENT OF TRANSPORTATION
    
    Coast Guard
    
    46 CFR Part 67
    
    [CGD 94-040]
    RIN 2115-AE85
    
    
    Vessel Rebuilt Determinations
    
    AGENCY: Coast Guard, DOT.
    
    ACTION: Notice of proposed rulemaking.
    
    -----------------------------------------------------------------------
    
    SUMMARY: The Coast Guard proposes to revise its rules regarding rebuilt 
    determinations to provide guidelines to clarify the standard for 
    determining when work on a vessel constitutes a rebuilding of that 
    vessel. The rebuilt standard has been criticized as too subjective to 
    provide guidance to vessel owners, who often must make critical 
    business planning decisions with the outcome of a potential rebuilt 
    determination by the Coast Guard in mind. The proposed guidelines, if 
    adopted, would establish clear upper and lower thresholds relevant to 
    rebuilt determinations and would provide for greater certainty to 
    vessel owners making business decisions regarding work to be performed 
    on their vessels.
    
    DATES: Comments must be received on or before July 5, 1995.
    
    ADDRESSES: Comments may be mailed to the Executive Secretary, Marine 
    Safety Council (G-LRA/3406) (CGD 94-040), U.S. Coast Guard 
    Headquarters, 2100 Second Street SW., Washington, DC 20593-0001, or may 
    be delivered to room 3406 at the same address between 8 a.m. and 3 
    p.m., Monday through Friday, except Federal holidays. The telephone 
    number is (202) 267-1477.
        The Executive Secretary maintains the public docket for this 
    rulemaking. Comments will become part of this docket and will be 
    available for inspection or copying at room 3406, U.S. Coast Guard 
    Headquarters, between 8 a.m. and 3 p.m., Monday through Friday, except 
    Federal holidays.
    
    FOR FURTHER INFORMATION CONTACT: Ms. Laura Burley, Vessel Documentation 
    and Tonnage Survey Branch; (202) 267-1492.
    SUPPLEMENTARY INFORMATION:
    
    Request for Comments
    
        The Coast Guard encourages interested persons to participate in 
    this rulemaking by submitting written data, views, or arguments. 
    Persons submitting comments should include their names and addresses, 
    identify this rulemaking (CGD 94-040) and the specific section of this 
    proposal to which each comment applies, and give the reason for each 
    comment. Please submit two copies of all comments and attachments in an 
    unbound format, no larger than 8\1/2\ by 11 inches, suitable for 
    copying and electronic filing. Persons wanting acknowledgment of 
    receipt of comments should enclose stamped, self-addressed postcards or 
    envelopes.
        The Coast Guard will consider all comments received during the 
    comment period. It may change this proposal in view of the comments.
        The Coast Guard plans no public hearing. Persons may request a 
    public hearing by writing to the Marine Safety Council at the address 
    under ADDRESSES. The request should include the reasons why a hearing 
    would be beneficial. If it determines that the opportunity for oral 
    presentations will aid this rulemaking, the Coast Guard will hold a 
    public hearing at a time and place announced by a later notice in the 
    Federal Register.
    
        Drafting Information: The principal persons involved in drafting 
    this document are Ms. Laura Burley, Project Manager; Lieutenant 
    Commander Don M. Wrye, Attorney Advisor, Vessel Documentation and 
    Tonnage Survey Branch; and Mr. Nicholas Grasselli, Project Counsel, 
    Office of Chief Counsel.
    
    Background and Purpose
    
        When Congress enacted the Merchant Marine Act, 1920, popularly 
    referred to as the ``Jones Act,'' it included a provision to provide 
    for a protected cabotage trade. Section 27 of the Merchant Marine Act, 
    1920 (46 U.S.C. app. 883), generally prohibited the transportation of 
    merchandise in the coastwise trade except in vessels built in and 
    documented under the laws of the United States and owned by citizens of 
    the United States. In 1956, Congress amended Section 27 by enacting 
    what is known as the ``Second Proviso.'' Under the proviso, as enacted, 
    a vessel of more than 500 gross tons entitled to engage in the 
    coastwise trade which is then rebuilt outside the United States 
    permanently loses the right to engage in the coastwise trade. Further, 
    the proviso required owners of vessels of more than 500 gross tons 
    documented in the United States which are rebuilt outside the United 
    States to make a report of the circumstances of the rebuilding to the 
    Secretary.
        As originally proposed, the proviso contained a definition of 
    ``rebuilt.'' However, the definition was determined to be problematic 
    and was deleted. The legislative history noted that a ``generally 
    accepted'' definition of the term as applied to vessels may be found in 
    the case of United States v. The Grace Meade, 25 F. Cas. 1387 (E.D. Va. 
    1876) (No. 15,243). That definition is that ``a vessel is considered 
    rebuilt if any considerable part of the hull of the vessel in its 
    intact condition, without being broken up, is built upon.'' Further, 
    the legislative history noted, the definition had been adopted by the 
    Supreme Court in New Bedford Dry Dock Co. v. Purdy (The Jack-
    O'Lantern), 258 U.S. 96 (1922), and had been incorporated into the 
    regulations of the Bureau of Customs, which then administered the 
    vessel documentation program, as a regulatory standard.
        In 1960, Congress amended the Second Proviso. (Pub. L. 86-583.) The 
    1960 amendment closed a loophole which permitted foreign-built 
    midbodies to be towed to the United States and then incorporated into 
    the domestic rebuilding of an existing vessel in an operation known as 
    ``jumboizing.'' As amended, the Second Proviso provided that a vessel 
    of more than 500 gross tons eligible to engage in the coastwise trade 
    which was then rebuilt permanently lost the right to engage in the 
    coastwise trade unless the ``entire rebuilding, including the 
    construction of any major components of the hull or superstructure of 
    the vessel,'' was effected within the United States.
        In 1988, the Second Proviso was once again amended to eliminate the 
    500 gross ton parameter for vessels rebuilt outside the United States. 
    (Pub. L. 100-239.) Now, any vessel which has acquired the lawful right 
    to engage in the coastwise trade which is later rebuilt outside the 
    United States permanently loses coastwise trading privileges.
        The Second Proviso is implemented by the Coast Guard primarily by 
    regulations at 46 CFR Sec. 67.177. The regulatory standard in 
    Sec. 67.177 states that a vessel is rebuilt when ``any considerable 
    part of its hull or superstructure is built upon or substantially 
    altered.'' While the wording of the regulatory standard has remained 
    stable over the years, the Coast Guard's administration of the standard 
    has changed.
        Prior to September 1989, the Coast Guard evaluated whether work 
    performed on a vessel constituted a rebuilding under the regulatory 
    standard by focusing on whether the nature of the work was structural 
    or nonstructural. In September 1989, the Coast Guard issued a rebuilt 
    determination for work performed on the vessel Monterey. The Monterey 
    determination explained that application of the Coast Guard's 
    regulatory standard involves a two-step process. The first step is to 
    identify work which involves building upon or [[Page 17291]] alteration 
    of the hull or superstructure. Once the relevant work has been 
    identified, the second step is to determine whether that work involves 
    a considerable part of the hull or superstructure. If it does, then the 
    vessel has been rebuilt.
        As a result of the regulatory requirement, the Coast Guard 
    frequently receives applications for preliminary determinations whether 
    work to be performed on a vessel outside the United States would 
    constitute a rebuilding. In support of an application for a preliminary 
    rebuilt determination, the applicant will generally enclose extensive 
    documentation addressing the character and scope of the work to be 
    performed including plans, drawings, contracts, work orders, and 
    materials lists. The applicant then attempts to show that the work will 
    not build upon or ``substantially'' alter ``any considerable part'' of 
    the vessel's hull or superstructure. Often, comparisons are made 
    between the before and after area of the hull and superstructure; the 
    weight of steel to be replaced or added to the vessel's total 
    steelweight; or the cost of the planned work to the overall value of 
    the vessel.
        Sometimes, the vessel representative does not submit an application 
    for a rebuilt determination or any supporting documentation until after 
    the work is performed. While this approach is permissible, it assumes 
    the risk that the Coast Guard may determine that the vessel has been 
    rebuilt, with the disastrous consequence of loss of trading 
    entitlements. In other cases, the work actually done on the vessel 
    differs from or exceeds the planned work, with possible adverse effects 
    on the final determination. In any event, following completion of the 
    work, if the quantum of work involved raises a reasonable belief that 
    the vessel has been rebuilt, the vessel representative must apply for a 
    final rebuilt determination. Because of the wording of the standard and 
    the unique nature of each vessel, every rebuilt determination is 
    evaluated on a case-by-case basis.
        Because the regulatory standard contains a number of undefined 
    terms which could be problematic, the Coast Guard decided to seek 
    public input on the advisability of engaging in a rulemaking. Two 
    public meetings were held, both preceded by a notice in the Federal 
    Register. The first meeting was on November 16, 1993 (58 FR 51298), and 
    the second on February 15, 1994 (59 FR 725). The stated purpose of the 
    public meetings was to obtain public input concerning whether the Coast 
    Guard should undertake rulemaking to develop clearer standards for 
    vessel rebuilt determinations, whether a negotiated rulemaking 
    procedure would be appropriate, and to discuss problems encountered 
    under existing procedures and possible solutions.
        On May 10, 1994, the Coast Guard published a policy statement in 
    the Federal Register (CGD 93-063; 59 FR 24060) announcing that it was 
    planning to undertake rulemaking regarding vessel rebuilt 
    determinations. Also, the policy statement concluded that, based on a 
    review of its rebuilt determinations since the Monterey determination, 
    work performed on a vessel which involved five percent or less of the 
    vessel's steelweight has never been determined to constitute a 
    rebuilding.
    
    Discussion of Proposed Rules
    
        The Coast Guard proposes to revise 46 CFR 67.177 regarding vessel 
    rebuilt determinations. Section 67.177 would first restate the existing 
    standard that a vessel is rebuilt ``when any considerable part of its 
    hull or superstructure is built upon or substantially altered.'' 
    Application of that standard would remain essentially a two-step 
    process.
        The standard, by its terms, encompasses only work which involves 
    building upon or substantial alteration of a considerable part of the 
    hull or superstructure of the vessel. Therefore, the first step in 
    applying the standard must be to identify hull and superstructure work 
    as distinguished from other work on the vessel. Once the relevant work 
    has been identified, the second step in applying the standard is to 
    determine whether that work results in a ``considerable part'' of the 
    hull or superstructure being built upon or substantially altered. If it 
    does, the vessel will be deemed to have been rebuilt.
        To identify work constituting building upon or a substantial 
    alteration of the hull or superstructure of a vessel, the hull and 
    superstructure must be defined. Both terms are defined in 46 CFR 67.3. 
    The hull is the shell, or outer casing, and internal structure below 
    the main deck which provide both the flotation envelope and structural 
    integrity of the vessel in its normal operations. The superstructure 
    includes the main deck and any other structural part of the vessel 
    above the main deck. Parts of the hull or superstructure include the 
    shell plating, keel, decks, supporting bulkheads, beams, frames, 
    girders, stringers, and other structural items.
        On the other hand, the delivery, installation aboard the vessel, 
    and modification or overhaul of inventory, equipment, furnishings, and 
    stores are not included as parts of the hull or superstructure. Such 
    inventory, equipment, furnishings, and stores include: Office inventory 
    and equipment; medical stores and equipment; charts and flags; 
    navigation and signaling equipment; portable VHS radio sets and 
    rechargers; radio equipment; automatic telephone system; office 
    amplifiers and loudspeakers; public address system; spare parts; 
    mooring lines, towing lines, and manually operated rope storage wheels; 
    lifeboats and liferafts; lifesaving equipment; firefighting equipment; 
    CO2 systems; workshop tools and equipment; galley, pantry, and bar 
    equipment; plates, crockery, cutlery, and glassware; games, gambling 
    tables, and entertainment equipment; musical instruments; jacuzzis; 
    print shop, photo laboratory and projector room equipment; bedding; 
    table linens; window curtains; baggage handling equipment; steel 
    storage shelves; deck furniture; cabin pictures and works of art; and 
    furnishings for crew cabins, messes, recreation rooms, passenger 
    cabins, lounges, public spaces, and service rooms.
        Also, the installation and modification or overhaul of machinery, 
    including foundations, that could be removed without affecting the 
    structural integrity of the vessel are not included as part of the hull 
    or superstructure. Among items of this type are: anchor windlass; 
    steering machinery; bow thruster (the bow thruster tunnel must be 
    constructed in the United States); elevator machinery; water systems 
    evaporators and pumps; ventilation and air conditioning system units, 
    motors, and compressors; garbage disposal system incinerator and 
    compactor; steam turbine alternators, transformers, and electric 
    motors; oily bilge separator; and sludge discharge pump.
        Finally, many items involved in outfitting and maintaining the 
    vessel that could be performed without affecting the structural and 
    watertight integrity of the vessel are also not included as parts of 
    the hull or superstructure. Among items of this type are: installation 
    of windows and portholes; installation of partitions for interior 
    spaces; installation of interior stairs (stairway trunks constructed in 
    the United States); renewal of exterior stairways; renewal of handrails 
    on passenger decks; installation of glass panes; repairs of exterior 
    non-watertight steel doors; renewal of exterior fire hose lockers; 
    overhaul of existing side gates, portholes, or watertight doors; 
    cleaning and painting of the chain locker; sandblasting and painting of 
    anchor chain; reinstallation of radar masts and modification of radar 
    foundations; [[Page 17292]] overhaul of sound-powered telephone system; 
    installation of new navigation consoles; extension of general and fire 
    alarm system; installation of heat detectors; installation of new 
    lifeboat davits or the reinstallation of repaired lifeboat davits and 
    winches; installation of life-jacket lockers; installation or 
    modification of interior spaces such as cabins, lounges, and restrooms; 
    sandblasting, painting, or coating of decks; general sandblasting and 
    painting; renewal of drain pipes and gratings; installation of 
    scuppers; installation and extension of piping systems; installation of 
    insulation, linings, ceiling panels, floor coverings, and interior 
    doors; installation of prefabricated bathroom modules; installation of 
    signs, funnel marks, and name plates; overhaul of external cathodic 
    protection system; installation of electrical distribution and lighting 
    systems; and installation and overhaul of electrical cables.
        To determine whether any ``considerable part'' of the hull or 
    superstructure, as defined, has been built upon or altered, the 
    relevant work must be viewed in relation to the hull or superstructure 
    of the vessel as a whole. Generally, the weight of the material 
    involved in the relevant work is compared to the steelweight of the 
    vessel as a whole. In cases where steelweights are not readily 
    determined, as for work on a wooden or fiberglass vessel for example, 
    the surface area of the relevant work is compared to the surface area 
    of the vessel as a whole and, to the maximum extent practicable, a 
    comparable steelweight is determined for the work performed and for the 
    vessel as a whole. The term ``steelweight'' is generically used in the 
    proposed rule relative to the construction material of the vessel.
        Paragraph (a) of proposed Sec. 67.177 would address the statutory 
    provision that a vessel, regardless of its material of construction, is 
    deemed rebuilt when a major component of the hull or superstructure not 
    built in the United States is added to the vessel.
        Paragraph (b) of proposed Sec. 67.177 would establish numerical 
    parameters for rebuilt determinations for vessels of which the hull and 
    superstructure are constructed of steel or aluminum. A vessel would be 
    deemed rebuilt if the relevant work performed constitutes more than 10 
    percent of the vessel's steelweight. Thus, 10 percent of the vessel's 
    steelweight would be set as the upper parameter, beyond which a 
    rebuilding would occur in every case.
        A vessel may or may not be deemed rebuilt if the relevant work 
    performed constitutes more than 5 percent but not more than 10 percent 
    of the vessel's steelweight. In this case, the vessel owner bears the 
    burden to demonstrate that the nature of the work performed, its scope 
    in relation to the vessel as a whole, its cost as compared to the cost 
    of the vessel, or other such factors, justify a conclusion that the 
    vessel has not been rebuilt.
        A vessel would not be considered rebuilt if the relevant work 
    performed constitutes 5 percent or less of the vessel's steelweight. 
    Thus, 5 percent of the vessel's steelweight would be set as the lower 
    parameter, at or below which a rebuilding would be deemed to not have 
    occurred in any case.
        Paragraph (c) of proposed Sec. 67.177 would establish numerical 
    parameters for rebuilt determinations for vessels of which the hull and 
    superstructure are constructed of a material other than steel or 
    aluminum. The numerical parameters would be the same as those used in 
    paragraph (b). However, for the parameters to work for vessels of which 
    the hull and superstructure are constructed of a material other than 
    steel or aluminum, the concept of comparability is introduced.
        The comparability concept requires that the applicant for a rebuilt 
    determination evaluate the vessel and, based on its overall size, 
    class, configuration, or other such factors, calculate to the maximum 
    extent practicable what the steelweight of the vessel as a whole would 
    be if it were constructed of steel or aluminum. The applicant would 
    also be required to evaluate the quantum of work performed on the 
    vessel and, based on its scope, area or square footage of sideshell, 
    decks, or bulkheads involved compared to the area or square footage of 
    similar surfaces on the entire vessel, or other such factors, calculate 
    to the maximum extent practicable what the steelweight of the work 
    performed would be if the material used was steel or aluminum. The 
    Coast Guard particularly solicits comment from vessel owners, 
    shipyards, repair facilities, and other interested parties concerning 
    the feasibility and practicality of the comparability concept.
        Vessels of mixed construction, for example, a vessel the hull of 
    which is constructed of steel or aluminum and the superstructure of 
    which is constructed of fiberglass, would be addressed by paragraph (d) 
    of proposed Sec. 67.177. The applicant for a rebuilt determination 
    would, using the comparability concept, calculate to the maximum extent 
    practicable the total steelweight of the vessel and the steelweight of 
    the work performed on the non-steel/aluminum portion of the vessel. The 
    comparable steelweight of the work performed on the non-steel/aluminum 
    portion of the vessel would then be aggregated with the work performed 
    on the portion of the vessel constructed of steel or aluminum. The same 
    numerical parameters used in paragraph (b) would then be applied to the 
    aggregate of the work performed on the vessel to determine whether the 
    vessel had been rebuilt.
        Pursuant to paragraph (e) of proposed Sec. 67.177, an application 
    for a rebuilt determination, where required, would have to be filed 
    within 30 days following completion of the work or redelivery of the 
    vessel, whichever occurs first. An application for a rebuilt 
    determination would be required if the work was performed outside of 
    the United States and it is determined to constitute or be comparable 
    to more than 5 percent of the vessel's steelweight, or if a major 
    component of the hull or superstructure which was not built in the 
    United States was added to the vessel. In addition, paragraph (e) would 
    state the items required to be submitted with an application for a 
    rebuilt determination. Generally, these materials consist of a 
    statement applying for the determination, a detailed statement of the 
    work performed and naming the place or places where the work was 
    performed, applicable steelweight calculations, sketches or blueprints 
    of the work performed, and any other material the Coast Guard may 
    request in support of the determination.
        Paragraph (f) of proposed Sec. 67.177 would provide an alternative 
    under which a vessel owner may submit a written statement to the 
    Commandant declaring a vessel rebuilt outside the United States. By 
    using this alternative, the owner who intends to forgo the restricted 
    trading privileges may avoid submitting the detailed materials required 
    for a rebuilt determination. A note would be added at the end of the 
    proposed section explaining that a statement submitted in accordance 
    with paragraph (f) does not constitute an application for a rebuilt 
    determination and, therefore, does not require payment of a fee.
        Lastly, the materials required to be submitted for a preliminary 
    rebuilt determination would be specified in paragraph (g) of proposed 
    Sec. 67.177. Generally, these materials consist of a statement applying 
    for the preliminary determination, a detailed statement of the work to 
    be performed and naming the place or places where the work is to be 
    performed, projected applicable steelweight calculations, sketches or 
    [[Page 17293]] blueprints of the planned work, and any other material 
    the Coast Guard may request in support of the preliminary 
    determination.
    
    Regulatory Evaluation
    
        This proposal is not a significant regulatory action under section 
    3(f) of Executive Order 12866 and does not require an assessment of 
    potential costs and benefits under section 6(a)(3) of that order. It 
    has not been reviewed by the Office of Management and Budget under that 
    order. However, it is considered significant under the regulatory 
    policies and procedures of the Department of Transportation (DOT) (44 
    FR 11040; February 26, 1979) due to the interests expressed by a 
    segment of the maritime industry and the Canadian Government. The Coast 
    Guard expects the economic impact of this proposal to be so minimal 
    that a full Regulatory Evaluation under paragraph 10e of the regulatory 
    policies and procedures of DOT is unnecessary. This proposal would, if 
    adopted, merely clarify existing policies and practices followed in 
    evaluating rebuilt determinations. As such, the proposed changes would 
    be administrative in nature and provide better guidance to vessel 
    owners planning for work to be performed on their vessels. In fact, by 
    providing clearer guidance, the proposal, if adopted, would help vessel 
    owners to avoid costs associated with an unexpected, and unintended, 
    determination that their vessel has been rebuilt.
    
    Small Entities
    
        Under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), the 
    Coast Guard must consider whether this proposal, if adopted, will have 
    a significant economic impact on a substantial number of small 
    entities. ``Small entities'' may include (1) small businesses and not-
    for-profit organizations that are independently owned and operated and 
    are not dominant in their fields and (2) governmental jurisdictions 
    with populations of less than 50,000.
        The Coast Guard expects the economic impact of this proposal to be 
    minimal because this proposal would, if adopted, merely clarify 
    existing policies and practices followed in evaluating rebuilt 
    determinations. As such, the proposed changes would be administrative 
    in nature and would provide better guidance to vessel owners planning 
    for work to be performed on their vessel. Because it expects the impact 
    of this proposal to be minimal, the Coast Guard certifies under 5 
    U.S.C. 605(b) that this proposal, if adopted, will not have a 
    significant economic impact on a substantial number of small entities.
    
    Collection of Information
    
        Under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.), the 
    Office of Management and Budget (OMB) reviews each proposed rule that 
    contains a collection-of-information requirement to determine whether 
    the practical value of the information is worth the burden imposed by 
    its collection. Collection-of-information requirements include 
    reporting, recordkeeping, notification, and other similar requirements.
        This proposal contains collection-of-information requirements in 46 
    CFR Sec. 67.177. However, these collection-of-information requirements 
    are the same as those contained in the existing regulations which have 
    been previously approved by OMB and assigned Control No. 2115-0110. 
    This proposal would add no new or additional collection-of-information 
    requirements. The proposed changes, if adopted, may even reduce 
    paperwork submissions by providing sufficiently clear guidance that 
    many of the applications for preliminary rebuilt determinations may 
    become unnecessary.
    
    Federalism
    
        The Coast Guard has analyzed this proposal under the principles and 
    criteria contained in Executive Order 12612 and has determined that 
    this proposal does not have sufficient federalism implications to 
    warrant the preparation of a Federalism Assessment.
    
    Environment
    
        The Coast Guard considered the environmental impact of this 
    proposal and concluded that, under paragraph 2.B.2 of Commandant 
    Instruction M16475.lB, this proposal is categorically excluded from 
    further environmental documentation. This proposal has been determined 
    to be categorically excluded because the changes proposed are 
    administrative in nature and clearly have no environmental impact. A 
    ``Categorical Exclusion Determination'' is available in the docket for 
    inspection or copying where indicated under ADDRESSES.
    
    List of Subjects in 46 CFR Part 67
    
        Fees, Incorporation by reference, Vessels.
    
        For the reasons set out in the preamble, the Coast Guard proposes 
    to amend 46 CFR part 67 as follows:
    
    PART 67--[AMENDED]
    
        1. The authority citation for part 67 continues to read as follows:
    
        Authority: 14 U.S.C. 664; 31 U.S.C. 9701; 42 U.S.C. 9118; 46 
    U.S.C. 2103, 2107, 2110; 46 U.S.C. app. 841a, 876; 49 CFR 1.46.
    
        2. Section 67.177 is revised to read as follows:
    
    
    Sec. 67.177  Application for rebuilt determination.
    
        A vessel is rebuilt when any considerable part of its hull or 
    superstructure is built upon or substantially altered. In determining 
    whether a vessel is rebuilt, the following parameters apply.
        (a) Regardless of its material of construction, a vessel is deemed 
    rebuilt when a major component of the hull or superstructure not built 
    in the United States is added to the vessel.
        (b) For a vessel of which the hull and superstructure is 
    constructed of steel or aluminum--
        (1) A vessel is deemed rebuilt when work performed on its hull or 
    superstructure constitutes more than 10 percent of the vessel's 
    steelweight.
        (2) A vessel may be considered rebuilt when work performed on its 
    hull or superstructure constitutes more than 5 percent but not more 
    than 10 percent of the vessel's steelweight.
        (3) A vessel is not considered rebuilt when work performed on its 
    hull or superstructure constitutes 5 percent or less of the vessel's 
    steelweight.
        (c) For a vessel of which the hull and superstructure is 
    constructed of material other than steel or aluminum--
        (1) A vessel is deemed rebuilt when work performed on its hull or 
    superstructure constitutes a quantum of work determined, to the maximum 
    extent practicable, to be comparable to more than 10 percent of the 
    vessel's steelweight, calculated as if the vessel was wholly 
    constructed of steel or aluminum.
        (2) A vessel may be considered rebuilt when work performed on its 
    hull or superstructure constitutes a quantum of work determined, to the 
    maximum extent practicable, to be comparable to more than 5 percent but 
    not more than 10 percent of the vessel's steelweight, calculated as if 
    the vessel was wholly constructed of steel or aluminum.
        (3) A vessel is not considered rebuilt when work performed on its 
    hull or superstructure constitutes a quantum of work determined, to the 
    maximum extent practicable, to be comparable to 5 percent or less of 
    the vessel's steelweight, calculated as if the vessel was wholly 
    constructed of steel or aluminum.
        (d) For a vessel of mixed construction, such as a vessel the hull 
    of which is constructed of steel or aluminum and the superstructure of 
    which is [[Page 17294]] constructed of fibrous reinforced plastic, the 
    steelweight of the work performed on the portion of the vessel 
    constructed of a material other than steel or aluminum will be 
    determined, to the maximum extent practicable, and aggregated with the 
    work performed on the portion of the vessel constructed of steel or 
    aluminum. The numerical parameters described in paragraph (b) of this 
    section will then be applied to the aggregate of the work performed on 
    the vessel compared to the vessel's steelweight, calculated as if the 
    vessel was wholly constructed of steel or aluminum, to determine 
    whether the vessel has been rebuilt.
        (e) The owner of a vessel currently entitled to coastwise, Great 
    Lakes, or fisheries endorsements which is altered outside the United 
    States and the work performed is determined to constitute or be 
    comparable to more than 5 percent of the vessel's steelweight, or which 
    has a major component of the hull or superstructure not built in the 
    United States added, must file the following information with the 
    Commandant within 30 days following the earlier of completion of the 
    work or redelivery of the vessel to the owner or owner's 
    representative:
        (1) A written statement applying for a rebuilt determination, 
    outlining in detail the work performed and naming the place(s) where 
    the work was performed;
        (2) Calculations showing the actual or comparable steelweight of 
    the work performed on the vessel, the actual or comparable steelweight 
    of the vessel, and comparing the actual or comparable steelweight of 
    the work performed to the actual or comparable steelweight of the 
    vessel;
        (3) Accurate sketches or blueprints describing the work performed; 
    and
        (4) Any further submissions requested by the Commandant.
        (f) Regardless of the extent of actual work performed, the owner of 
    a vessel currently entitled to coastwise, Great Lakes, or fisheries 
    endorsements may, as an alternative to filing the items listed in 
    paragraph (e) of this section, submit a written statement to the 
    Commandant declaring the vessel rebuilt outside the United States. The 
    vessel will then be deemed to have been rebuilt outside the United 
    States with loss of trading privileges.
        (g) A vessel owner may apply for a preliminary rebuilt 
    determination by submitting:
        (1) A written statement applying for a preliminary rebuilt 
    determination, outlining in detail the work planned and naming the 
    place(s) where the work is to be performed;
        (2) Calculations showing the actual or comparable steelweight of 
    work to be performed on the vessel, the actual or comparable 
    steelweight of the vessel, and comparing the actual or comparable 
    steelweight of the planned work to the actual or comparable steelweight 
    of the vessel;
        (3) Accurate sketches or blueprints describing the planned work; 
    and
        (4) Any further submissions requested by the Commandant.
    
        Note: A statement submitted in accordance with paragraph (f) of 
    this section does not constitute an application for a rebuilt 
    determination and does not require payment of a fee.
    
        Dated: October 21, 1994.
    J. C. Card,
    Rear Admiral, U.S. Coast Guard, Chief, Office of Marine Safety, 
    Security and Environmental Protection.
    [FR Doc. 95-8386 Filed 4-4-95; 8:45 am]
    BILLING CODE 4910-14-P
    
    

Document Information

Published:
04/05/1995
Department:
Coast Guard
Entry Type:
Proposed Rule
Action:
Notice of proposed rulemaking.
Document Number:
95-8386
Dates:
Comments must be received on or before July 5, 1995.
Pages:
17289-17294 (6 pages)
Docket Numbers:
CGD 94-040
RINs:
2115-AE85: Vessel Rebuild Determinations (CGD 94-040)
RIN Links:
https://www.federalregister.gov/regulations/2115-AE85/vessel-rebuild-determinations-cgd-94-040-
PDF File:
95-8386.pdf
CFR: (1)
46 CFR 67.177