[Code of Federal Regulations]
[Title 46, Volume 8]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 46CFR381.9]

[Page 349]
 
                           TITLE 46--SHIPPING
 
    CHAPTER II--MARITIME ADMINISTRATION, DEPARTMENT OF TRANSPORTATION
 
PART 381_CARGO PREFERENCE_U.S.-FLAG VESSELS--Table of Contents
 
Sec. 381.9  Available U.S.-flag service.

    For purposes of shipping bulk agricultural commodities under 
programs administered by sponsoring Federal agencies from U.S. Great 
Lakes ports during the 1996-2000 Great Lakes shipping seasons, if direct 
all-U.S.-flag service, at fair and reasonable rates, is not available at 
U.S. Great Lakes ports, a joint service involving a foreign-flag 
vessel(s) carrying cargo no farther than a Canadian port(s) or other 
point(s) on the Gulf of St. Lawrence, with transshipment via a U.S.-flag 
privately-owned commercial vessel to the ultimate foreign destination, 
will be deemed to comply with the requirement of ``available'' 
commercial U.S.-flag service under the Cargo Preference Act of 1954. 
Shipper agencies considering bids resulting in the lowest landed cost of 
transportation based on U.S.-flag rates and service shall include within 
the comparison of U.S.-flag rates and service, for shipments originating 
in U.S. Great Lakes ports, through rates (if offered) to a Canadian port 
or other point on the Gulf of St. Lawrence and a U.S.-flag leg for the 
remainder of the voyage. The ``fair and reasonable'' rate for this mixed 
service will be determined by considering the U.S.-flag component under 
the existing regulations at 46 CFR Part 382 or 383, as appropriate, and 
incorporating the cost for the foreign-flag component into the U.S.-flag 
``fair and reasonable'' rate in the same way as the cost of foreign-flag 
vessels used to lighten U.S.-flag vessels in the recipient country's 
territorial waters. Alternatively, the supplier of the commodity may 
offer the Cargo FOB Canadian transshipment point, and MARAD will 
determine fair and reasonable rates accordingly.

[61 FR 24897, May 17, 1996]