Ship Disposal Encounters Enviro, Political Hurdles
By Joan M. Bondareff and Charles T. In 2001, Congress directed the Maritime Administration (MarAd) to dispose of all obsolete vessels in its inventory by September 30, 2006, and to do so "in the manner that provides the best value to the Government." At present, MarAd has 104 non-retention ships not under contract in three locations around the country-James River Reserve Fleet in Virginia, Beaumont Reserve Fleet in Texas, and Suisun Bay Reserve Fleet in California. MarAd is using a variety of ship disposal options, which include domestic and foreign dismantling/recycling to accomplish this directive. Both have been controversial and foreign scrapping has prompted litigation. This article describes what MarAd is doing and what laws are implicated in this mission. The U.S.
Congress Voids Certain Ad Valorem Duties on Ship Repairs
By Jeanne M. Charles T. Trade and Technical Corrections Act of 2004 (the Act), signed into law on December 3, 2004, contains a provision that reverses a final rule, issued by the Bureau of Customs and Border Protection (CBP) in 2001 (Final Rule; 66 Fed. Reg. 16392 (March 26, 2001)), that subjected repairs made to U.S.-flag vessels while on the high seas to declaration, entry, and duty requirements. Simply put, the Act expands the list of items that are exempt from the 50 percent ad valorem duty requirement contained in the Vessel Repair Statute (19 U.S.C. § 1466) and, as a result, could possibly save owners and operators of U.S.-flag vessels large sums of money.
