Cargo shipments financed by the U.S. Export-Import Bank must by law be transported in privately owned U.S.-flag commercial vessels if available at reasonable rates. The cost of U.S.-flag transportation is considered U.S. content and therefore financeable by the Bank. The U.S. Maritime Administration is charged by law with determining whether U.S.-flag vessels are available at reasonable rates. On April 11, 2012, MARAD posted guidance on its web site setting forth new procedures for how MARAD will assist shippers, borrowers and exporters to meet U.S.-flag shipping requirements and the factors MARAD will consider in making availability determinations. For the first time, MARAD also included an administrative process for issuance and appeal of determinations. Public comments to the new guidance can be posted at regulations.gov.
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U.S. Maritime Administration issues new Export-Import Bank U.S.-flag shipping guidance
- Winston & Strawn LLP
- Charlie Papavizas
- USA
- April 12 2012
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