[Code of Federal Regulations]
[Title 46, Volume 1]
[Revised as of Octobery 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 46CFR2.10-105]

[Page 31]
 
                           TITLE 46--SHIPPING
 
         CHAPTER I--COAST GUARD, DEPARTMENT OF HOMELAND SECURITY
 
PART 2_VESSEL INSPECTIONS--Table of Contents
 
                            Subpart 2.10_Fees
 
Sec. 2.10-105  Prepayment of annual vessel inspection fees.

    (a) Vessel owners may prepay the annual vessel inspection fee for 
any period of not less than three years, and not more than the design 
life or remaining expected service life of the vessel.
    (b) To prepay the annual vessel inspection fee for a period of three 
or more years, the owner must submit a written request to Commandant (G-
MRP) specifying the vessel identification number and the period for 
which prepayment is to be made.
    (c) The total of the annual fees for the requested prepayment period 
will be discounted to its net present value using the following formula:
[GRAPHIC] [TIFF OMITTED] TR13MR95.000

Where:

PV is the Present Value of the series of annual user fees to be prepaid 
(the net amount to be prepaid)
RO is the published user fee of the vessel
i is the interest rate for 10-year Treasury notes at the time of 
prepayment calculation
[pi] is the rate of inflation (based on projected military personnel 
costs at the time of prepayment calculation)
n is the total number of years to be prepaid
t is the number of years after prepayment of the fee, for each annual 
increment (t=0, 1, 2, 3 ... n)

    (d) When the annual vessel inspection fee has been prepaid, the 
entitlement to inspection services for the prepayment period attaches to 
the vessel and remains with the vessel if it is sold. The entitlement to 
inspection services may not be transferred to any other vessel.
    (e) If a vessel is removed from Coast Guard certification and the 
vessel owner surrenders the vessel's Certificate of Inspection, the 
owner may request a refund of the remaining prepayment amount. The 
annual vessel inspection fee will not be refunded for the year in which 
the Certificate of Inspection is surrendered. The request for refund 
must be submitted to the Officer in Charge, Marine Inspection to whom 
the Certificate of Inspection is surrendered.

[CGD 91-030, 60 FR 13563, Mar. 13, 1995, as amended by CGD 95-072, 60 FR 
50459, Sept. 29, 1995; CGD 96-041, 61 FR 50725, Sept. 27, 1996; USCG-
1999-6216, 64 FR 53223, Oct. 1, 1999]

[[Page 32]]