CFR > Title 46 - Shipping > CHAPTER II—MARITIME ADMINISTRATION, DEPARTMENT OF TRANSPORTATION > SUBCHAPTER C—REGULATIONS AFFECTING SUBSIDIZED VESSELS AND OPERATORS (parts 249 to 296) > PART 252—OPERATING-DIFFERENTIAL SUBSIDY FOR BULK CARGO VESSELS ENGAGED IN WORLDWIDE SERVICES > SUBPART C—Operation (§252.20 to §252.24) > 252.22—Substantiality and extent of foreign-flag competition.

252.22—Substantiality and extent of foreign-flag competition.

(a) Type and tonnage groupings. Foreign-flag competition shall be determined, as of January 1 of the year preceding January 1 of the subsidized year, by surveying a data file known as “Merchant Fleets of the World” that is maintained by MARAD. All foreign-flag bulk cargo vessels included in this data file are divided by type and category, and further subdivided by class. Classes include, but are not limited to general tanker, chemical tanker, OBO, general dry bulk carrier and wood chip carrier. Each vessel class is further divided into deadweight tonnage ranges as follows:
(1) Range A-vessels of less than 25,000 DWT;
(2) Range B-vessels of 25,000 but less than 50,000 DWT;
(3) Range C-vessels of 50,000 but less than 100,000 DWT; and
(4) Range D-vessels of 100,000 or more DWT.
(b) Competitive classes and range. The following classes of foreign-flag vessels in the same tonnage range as the subsidized vessel shall be deemed to be competitive with the subsidized vessel:
(1) General tanker—general tanker
(2) Chemical tanker—general and chemical tankers
(3) OBO—general dry bulk carriers and tankers, OBO, bulk/oil, ore/oil and ore carriers
(4) General dry bulk carrier—general dry bulk carriers
(c) Grouping and ranking competitive foreign-flags. The foreign-flag vessels deemed to be competitive with the subsidized vessel shall be grouped by nationality and ranked according to the total deadweight tonnage under each foreign-flag.
(d) Competitive foreign flag. The competitive foreign flag shall be the flag with the greatest total tonnage in the range.
(e) Largest foreign flag not competitor. In the event that the Board believes that the competitive foreign-flag so determined pursuant to this § 252.22 is not a substantial competitor of any particular operator, the Board may determine the foreign-flag competition in a manner that more accurately reflects the true competition of the particular operator. In making this determination, the Board shall consider the written views of the operator and any other interested parties.
[40 FR 43490, Sept. 22, 1975, as amended at 45 FR 8024, Feb. 6, 1980; 51 FR 40426, Nov. 7, 1986]