Page 9: of Maritime Reporter Magazine (January 2, 2005)

Repair Duty Repealed

President George Bush has signed into law legislation repealing a four year old rule imposing a 50% duty on the cost of routine repairs and maintenance car- ried out by U.S. merchant mariners while their vessel is at sea. The elimina- tion of the duty, which customs authori- ties have levied on U.S.-flag carriers since April 2001, represents a victory for the domestic shipowning community.

Intelligence Reform and

Terrorism Prevention Act

President Bush signed into law the

Intelligence Reform and Terrorism

Prevention Act of 2004 (S. 2845). The major emphasis of the legislation is reform of the U.S. intelligence organiza- tion. Other measures, though, may impact the maritime community. The

Secretary of Homeland Security is directed to prepare a National Strategy for Transportation Security. This docu- ment is to identify and evaluate trans- portation assets (including maritime) in the United States that must be protected from attack or disruption and develop a risk-based priority addressing those security needs. Also, the Secretary is to promulgate a rule requiring operators of cruise ships to provide passenger and crew information so that the Department can develop a "watch list" program sim- ilar to that utilized by airlines. The problem is that the definition of "cruise ship" is so broad as to include any ves- sel on an international voyage that embarks or disembarks passengers in the United States. This provision has the potential to capture recreational vessels and small charter boats. One wonders whether, in the last minute rush to cob- ble this bill together, the members of

Congress actually knew what this provi- sion entailed. (HK Law).

Consolidated

Appropriations Act, 2005

President Bush signed into law the

Consolidated Appropriations Act, 2005 (H.R. 4818). This 658-page bill pro- vides monies for all federal agencies other than Defense and Homeland

Security, which were handled earlier.

The bill also includes a number of mis- cellaneous provisions. Some maritime highlights follow. Ocean freight differ- ential costs for shipment of certain gov- ernment-impelled agricultural ship- ments are funded in the amount of $22.7 million. The National Oceanic and

Atmospheric Administration (NOAA) receives $2.8 billion for operations and $1 billion for procurement, acquisition, and construction. The bill includes the

Oceans and Human Health Act, intend- ed largely to implement portions of the recommendations for the Ocean Policy

Commission. The U.S. Army Corps of

Engineers receives $1.8 billion for con- struction, including river and harbor projects. Foreign military assistance monies for the Indonesian navy are for purposes of enhancing maritime securi- ty.

The St. Lawrence Seaway

Development Corp. receives $15.9 mil- lion, to be derived from the Harbor

Maintenance Trust Fund. The Maritime

Administration (MARAD) receives $98.7 million for the maritime security fleet program; $109.5 million for opera- tions and training; $21.6 million for dis- posal of obsolete vessels; $4.76 million for the Title XI program; and $75 mil- lion for the national defense tank vessel construction program. The Federal

Maritime Commission (FMC) receives $19.5 million. The NTSB receives $76.7 million. The allocation of funding for the Maritime and Land Security

Division of the Transportation Security

Administration (TSA) will be as fol- lows: credentialing, $5 million; TWIC, $15 million; hazardous materials truck tracking, $2 million; hazardous materi- als safety, $17 million; enterprise staffing, $24 million; rail security, $12 million; and offsetting collections, $27 million. (HK Law)

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January 2005 9

Circle 217 on Reader Service Card

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