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Dyer Ellis Joseph News

07 Nov 2001

CIT Takes Issue With Customs' Duty Calculation in Dry-Docking Case

The vessel repair statute (Section 466 of the Tariff Act of 1930, 19 U.S.C. § 1466) requires the payment of a 50 percent ad valorem duty on the cost of foreign equipment purchased for, or expenses of repairs made to, U.S.-flag vessels in a foreign country. The purpose of the vessel repair statute is to protect U.S. shipyards and to discourage vessel operators from taking their vessels abroad for the purpose of obtaining less expensive foreign repairs. The U.S. Court of International Trade determined that "section 1466 expresses the legislative policy designed to provide maximum protection to American shipyards." Mount Washington Tanker Co. v. United States, 505 F. Supp. 209, 214 (1980), aff'd, 665 F.2d340 (C.C.P.A. 1981). The U.S.

05 Dec 2001

Port Security Legislation Reinforces Security

Like so many areas of our economy since the terrorist attacks of September 11, the port and maritime areas of the United States are being scrutinized for vulnerability to terrorism. Catastrophic scenarios are all too easy to imagine, and the threats can come from so many directions. To illustrate the complexity of the maritime law enforcement challenge, the Coast Guard Commandant, Admiral James M. "Imagine for a moment the information requirements associated with a hypothetical 6,000 TEU flag-of-convenience container ship with a multi-national crew cobbled together by a hiring agent who works for an Algerian vessel operator who chartered the vessel from a Greek ship owner whose corporate offices are in the Cayman Islands.

17 Apr 2000

Financing Sources for U.S. Government Programs

Recent growth in ferry construction, particularly in the U.S., has been significant. The U.S. Department of Transportation recently reported that the U.S. marine transportation system annually transports 134 million passengers by ferry. Although the U.S. fleet represents a small percentage of the worldwide fleet, the U.S. fleet has recently experienced one of the largest and most rapid growth rates. This growth represents an increase both in sheer numbers as well as in the size of new vessels. The DOT recently reported that the U.S. currently has more fast-ferry shipbuilding under way than any other country, with an estimated 14 fast ferries under construction. With this increased demand and growth in newbuildings and transaction size, U.S.

08 Jun 2000

Congressional Maritime Legislative Initiatives In 2000

The year 2000 has enjoyed special significance as a transition year bridging two centuries. Similarly it has significance with U.S. lawmakers for the Second Session of the 106th Congress. As the last year of the currently elected Congress, this year anticipates action on a series of pending legislative measures and yet to be introduced proposals affecting the maritime industry. Specifically tax-related legislation and maritime policy-related legislation could be addressed. There are several tax-related provisions that could be considered. One of the main bills emphasizing maritime tax issues has been introduced in the House by Rep. Jim McCrery (R-LA) as H.R. 3225 and in the Senate by Sen. John Breaux (D-La.) as S. 1858. These bills include such measures as:A.

15 Jun 2000

A Practical Discussion Regarding Compliance

Maritime businesses are increasingly becoming the subject and target of federal criminal investigations. This is due, in part, to the increased emphasis on the enforcement of the criminal provisions of labor, customs and environmental regulatory provisions. A federal investigation of a business or corporation typically begins with federal agents serving a grand jury subpoena requiring the business to produce corporate records and documents. The subpoena requires that the business undertake a diligent and thorough search for the documents called for by the subpoena. Typically, the subpoena will also require that the business present a…

14 Jul 2000

Heightened Scrutiny On Ship Scrapping

Ever since two enterprising reporters for the Baltimore Sun decided, in 1997, to take a closer look at ship scrapping, first at a Baltimore shipyard dismantling a Navy ship, and subsequently an in depth review of scrapping conditions in Alang, India, the light of public attention has been shining on this oldest of maritime practices. With this scrutiny, the world of scrapping ships will be forever changed — hopefully for the better. Following the end of the Cold War, the Navy's downsizing its fleet, and the requirement to replace tankers with more modern and environmentally safer ships, the demand to decommission and dispose of obsolete vessels is increasing at a pace more rapid than the capacity exists to handle this demand. Certainly, this is true in the U.

03 Aug 2000

U.S. Vessel Loan Guarantees: Myths And Realities

In September 1993, as the Secretaries of Defense and Transportation announced a new commercial shipbuilding initiative, the President declared that "[s]hipbuilding is one of the keys to America's national defense, and helping our shipbuilders succeed commercially is an important goal of defense conversion." A cornerstone of the 1993 Shipbuilding Initiative was the revival of the Federal Ship Financing Program (commonly known as the "Title XI Program" because its statutory authority is spelled out under Title XI of the Merchant Marine Act, 1936). Administered by the Maritime Administration ("MarAd") of the U.S. Department of Transportation, the program has prospered since 1993 under a rigorous review process mandated by the Federal Credit Reform Act of 1990 ("FCRA").

02 Oct 2000

The Abandoned Shipwreck Act: Useful Tool for Preservation or Paper Tiger?

In 1988, Congress enacted the Abandoned Shipwreck Act (Pub. L. 100-298, 43 U.S.C. §§ 2101-2106), in an effort to give states more authority to protect the historical provenance of abandoned shipwrecks in state waters. It was one of the more controversial laws Congress passed that year because it pitted treasure salvors and divers, on the one hand, against states and historic preservationists on the other. In the end, the states won passage of the legislation, but some twelve years later, the question remains whether the Act has had the intended effect. Two significant decisions since 1988 have called into question the law's stated Congressional policy. First, a description of the Act itself.

08 Nov 2000

The Future of E-Commerce: Will The Maritime Industry Be Left Behind?

Maritime business commerce has changed rapidly over the last decade. In order to stay competitive, companies are increasingly inventing more efficient ways to conduct business. The advent of the Internet has created new tools to negotiate and complete business transactions for all major industries. Electronic commerce ("e-commerce") in particular, is revolutionizing the way industries transact all business. The buzzwords of today's marketplace are speed, accuracy and efficiency. Businesses are turning to the Internet as an outlet to increase sales and market share. A successful transition from paper to electronic business, however, requires a well-established electronic and legal infrastructure in order to succeed.

20 Feb 2001

Dear President Bush...Reasons for More Title XI Funding

One of the first important official acts of new U.S. President George W. Bush will be to submit to Congress a budget request for the entire U.S. Government for fiscal year 2002. For Americans with a stake in shipbuilding, a key budgetary concern is the amount of funding that will be requested for the Federal Ship Financing Program administered by the Maritime Administration ("MarAd"). The Program is commonly known as the "Title XI Program" because its statutory authority is spelled out under Title XI of the Merchant Marine Act, 1936. Well over $5 billion in these loan guarantees have been provided since 1993 by MarAd for a wide range of construction projects, ranging from large cruise ships and double-hulled tankers to fast ferries and a variety of cargo vessels. Further, the six U.S.

29 Nov 2000

Graykowski Joins Dyer Ellis & Joseph

Former Deputy Administrator of the U.S. Maritime Administration (MarAd) John E. Graykowski has joined the law firm of Dyer Ellis & Joseph as a shareholder. Since assuming his position with MarAd in 1994, Mr. Graykowski has been principally responsible for the implementation of the National Shipbuilding Initiative, with particular emphasis on the revitalization of the Title XI loan guarantee program, as well as programs related to the inland waterways and the Great Lakes. "We are excited about having John Graykowski join our firm; his addition to Dyer Ellis will further enhance our leading position as advisors to the marine transportation industry," said Patrick Cavanaugh, Managing Shareholder. During his tenure at MarAd, Mr.

05 Jan 2001

Coast Guard Announces Marine Casualty Reporting Requirements

On Thursday, November 2, 2000, the U.S. Coast Guard published a notice of proposed rulemaking (NPRM) regarding marine casualty reporting requirements. The proposed rule would amend the marine casualty reporting requirements by adding "significant harm to the environment" to the list of reportable marine casualties. This proposed change would implement a change in law enacted as part of the Oil Pollution Act of 1990 (OPA 90), it would apply to domestic vessels worldwide, to foreign vessels operating in the navigable waters of the United States, and to foreign tank vessels operating in the U.S. Exclusive Economic Zone (EEZ) and other waters subject to the jurisdiction of the United States.

22 Dec 2000

USCG Announces Casualty Reporting Requirements

By Duncan C. Smith III, James S.W. Drewry, and Jennifer M. On Thursday, November 2, 2000, the U.S. Coast Guard published a notice of proposed rulemaking (NPRM) regarding marine casualty reporting requirements. The proposed rule would amend the marine casualty reporting requirements by adding "significant harm to the environment" to the list of reportable marine casualties. This proposed change would implement a change in law enacted as part of the Oil Pollution Act of 1990 (OPA 90), it would apply to domestic vessels worldwide, to foreign vessels operating in the navigable waters of the United States, and to foreign tank vessels operating in the U.S. Exclusive Economic Zone (EEZ) and other waters subject to the jurisdiction of the United States.

09 Jan 2003

Blank Rome and Dyer Ellis & Joseph to Join Forces

Effective January 1, 2003, Blank Rome LLP, a law firm with more than 400 attorneys, combined with Washington, D.C.-based Dyer Ellis & Joseph P.C. Dyer Ellis’ 42 attorneys serve clients in a variety of business sectors, including marine transportation, defense, energy, financial services, health care, manufacturing and information technology. As a result of the combination, Blank Rome’s Washington office will be comprised of approximately 70 attorneys, many of whom have substantial federal legislative and regulatory experience. “As part of our strategic growth initiative, we are pleased to announce the addition of a firm with the strong presence and reputation which Dyer Ellis enjoys both nationally and internationally,” said Blank Rome Chairman David F. Girard-diCarlo.

23 Jan 2003

Graykowski Appointed VP at Kvaerner Shipyard

John Graykowski has joined Kvaerner Philadelphia Shipyard, Inc., as Senior Vice President & General Counsel. John will take up his duties on February 1, 2003. Graykowski will report to Gunnar Skjelbred, President & CEO, Kvaerner Philadelphia Shipyard, and will be responsible for all aspects of marketing, external relations and Legal Affairs. Since 2000, John was a Partner with Blank Rome LLP (formerly Dyer Ellis & Joseph). Prior to joining the firm, Graykowski was Acting Administrator and Deputy Administrator of the Maritime Administration, U.S. Department of Transportation from 1994 to 2000. While at MarAd, Graykowski was responsible for implementing the National Shipbuilding Initiative (NSI)…

18 Jun 2001

No Leg Left to Stand On -- An Obituary for MarAd?

Unless things change dramatically, I am writing as the last Deputy Administrator of the Maritime Administration (MarAd). At least the MarAd we have known, sometimes loved, but always needed for the last 50 years. As I look at the Administration's budget proposals to transfer management of the Maritime Security Program (MSP) to the Department of Defense (DOD) and eliminate funding for the Title XI shipbuilding loan guarantee program, I cannot help but conclude that MarAd's days are numbered as a freestanding federal agency. This is not simply melodramatic doom saying from a former bureaucrat whose first credo in life is perpetuation of the species (or in this case the agency).

27 Aug 1999

U.S. Jobs Retained On Reflagged Tankers

U.S officer and seamen jobs on six liquefied natural gas (LNG) tankers will be retained after the tankers are reflagged from the U.S. The merchant marine jobs will be guaranteed to American officers and seamen through 2004, according to two agreements announced last week. The agreements were signed by the American Maritime Officers (AMO) union, the Seafarers International Union (SIU) and PRONAV Ship Management, which manages the ships for BLNG Inc. Under the agreements, AMO will fill eight officer berths on the six vessels, and SIU will retain all of the existing billets for the unlicensed crewmen. "Today's unprecedented agreements represent a commitment to American labor," said Michael Dyer, senior partner at Dyer Ellis & Joseph, the law firm representing PRONAV and BLNG.

09 Mar 2000

An Effective Shield from Criminal Prosecution

The maritime community has increasingly become the target of Department of Justice (DOJ) and state prosecution efforts to pursue criminal sanctions against corporations and senior management involved in maritime transportation incidents. Though many of the prosecutorial efforts involve egregious cases, some involve incidents that were previously treated as accidents. DOJ recently announced that federal enforcement actions involving environmental issues rose by almost 50 percent from 1996 to 1997. Criminal enforcement efforts often focus on highly visible companies for the maximum deterrent effect and greatest public impact. Because of aggressive federal and state efforts targeting environmental crimes…

17 Mar 2000

Financing Sources For U.S. Ferries: U.S. Government Programs

By Todd D. Dyer Ellis & Joseph, P.C. Recent growth in ferry construction, particularly in the U.S., has been significant. The U.S. Department of Transportation recently reported that the U.S. marine transportation system annually transports 134 million passengers by ferry. Although the U.S. fleet represents a small percentage of the worldwide fleet, the U.S. fleet has recently experienced one of the largest and most rapid growth rates. This growth represents an increase both in sheer numbers as well as in the size of new vessels. The DOT recently reported that the United States currently has more fast-ferry shipbuilding under way than any other country, with an estimated 14 fast ferries under construction. With this increased demand and growth in newbuildings and transaction size, U.S.

17 Apr 2000

Editor's Note

Despite seemingly best efforts by world leaders, it appears that the wild gyrations ,which are the hallmark of the oil industry, will never truly be tamed. For proof, simply check out the Offshore Market report on page 32, which touts the “lingering $30+” barrel of oil. Between the writing of that piece and this one (about a week), OPEC leaders had met, decided to boost production seven percent and sent oil prices screaming down below the $25 level. While an immediate $5 per barrel price would normally spread doom throughout the GOM region and all of the various maritime industries which support it — it seems that confidence regarding a second-half 2000 bounceback is still intact. OPEC’s recent actions were driven more by politics than anything else, as U.S.