CFR > Title 46 - Shipping > CHAPTER II—MARITIME ADMINISTRATION, DEPARTMENT OF TRANSPORTATION > SUBCHAPTER C—REGULATIONS AFFECTING SUBSIDIZED VESSELS AND OPERATORS (parts 249 to 296) > PART 272—REQUIREMENTS AND PROCEDURES FOR CONDUCTING CONDITION SURVEYS AND ADMINISTERING MAINTENANCE AND REPAIR SUBSIDY > SUBPART D—Penalties (§272.31 to §272.33) > 272.31—Determination of penalty.

272.31—Determination of penalty.

Operators whose Eligible Vessels have undergone foreign repairs, which MARAD determines are non-emergency in nature, may be subject to a penalty in an amount equal to the total cost (exclusive of applicable U.S. Customs duties) of such foreign repairs and purchases, such penalty to be effected by a deduction from the Operator's total ODS otherwise accrued. The Director, Office of Ship Operating Assistance, shall notify the Operator by letter with respect to:
(a) MARAD's determination of a penalty and the reasons therefore; and
(b) Whether the determination is final or subject to the submission of additional information.