2133-0006-2009 Supporting Statement

SUPPORTING STATEMENT FOR PAPERWORK REDUCTION ACT SUBMISSIONS
UNDER 5 CFR PART 1320
Information Collection: 2133-0006

"Request for Transfer of Ownership, Registry, and Flag, or Charter, Lease, or Mortgage of U.S.
Citizen Owned Documented Vessels"
A.

Justification

1.

Explain the circumstances that make the collection of information necessary. Identify any legal or
administrative requirements that necessitate the collection. Attach a copy of the appropriate section
of each statute and regulation mandating or authorizing the collection of information.
Pursuant to 46 U.S.C. 56101 and 56103, the Maritime Administration (MARAD) is required to approve the
sale, transfer, charter, lease, or mortgage of U.S. documented vessels to non-citizens, or the transfer of such
vessels to foreign registry and flag, or the transfer of foreign flag vessels by their owners as required by
various contractual requirements.
This information collection is in support of the Department of Transportation's strategic goal for National
Security by retaining vessels under U.S. documentation, ownership or control for purposes of national
defense, maintenance of an adequate merchant marine, foreign policy considerations or national interests.

2.

Indicate how, by whom, and for what purpose the information is to be used. Except for a new
collection, indicate the actual use the agency has made of the information received from the current
collection.
The information will be used on occasion by MARAD when there is a prospective foreign transfer of a
U.S.-flag vessel. As such, this information will assist in the determination as to whether the vessel proposed
for transfer will initially require retention under the U.S.-flag statutory regulations.
In such instances, the Office of Sealift Support receives the applications, they are then reviewed by various
MARAD specialists to ensure that all information and documentation are adequate and that the applicants
have met all approval criteria. Afterwards, MARAD coordinates with the Department of Defense, U.S.
TRANSCOM, to obtain the required clearances before approval is granted.

3.

Describe whether, and to what extent, the collection of information involves the use of automated,
electronic, mechanical, or other technological collection techniques or other forms of information
technology. Also, describe any consideration of using information technology to reduce burden.
Consideration has been given to using improved information technology to reduce public burden by
allowing the submission of applications electronically, utilizing electronic signatures. Currently, applicants
may submit applications via facsimile to initially begin the process. However, respondents are required to
follow-up with a submission of the original application containing original signatures.

4.

Describe efforts to identify duplication. Show specifically why any similar information already
available cannot be used or modified for use for the purposes described in item 2 above.
We have been unable to identify duplication of this collection. Search of the Catalog of Federal Domestic
Assistance has not shown any similar maritime programs or information needs.

5.

If the collection of information impacts small businesses or other small entities (Item 5 of OMB Form
83-I), describe any methods used to minimize burden.
The application format has been developed in such a manner as to minimize the burden on small businesses
and individuals.

6.

Describe the consequence to Federal program or policy activities if the collection is not
conducted or is conducted less frequently, as well as any technical or legal obstacles to
reducing burden.
MARAD requires the collection only when a vessel owner submits an application for a prospective foreign
transfer of a U.S.-flag vessel. If this data collection were not conducted, MARAD would not have the
information required to make a determination as to whether the vessel is needed for continued operation
under U.S.-flag, and could not monitor the status of the U.S. Merchant Marine nor submit annual reports to
Congress.

7.

Explain any special circumstances that would cause an information collection to be
conducted in a manner:



requiring respondents to report information to the agency more often than quarterly;



requiring respondents to prepare a written response to a collection of information in fewer than 30
days after receipt of it;



requiring respondents to submit more than an original and two copies of any document;



requiring respondents to retain records, other than health, medical, government contract, grant-inaid, or tax records for more than three years;



in connection with a statistical survey, that is not designed to produce valid and reliable results that
can be generalized to the universe of study;



requiring the use of a statistical data classification that has not been reviewed and approved by
OMB;



that includes a pledge of confidentiality that is not supported by authority established in statute or
regulation, that is not supported by disclosure and data security policies that are consistent with the
pledge, or which unnecessarily impedes sharing data with other agencies for compatible confidential
use; or



requiring respondents to submit proprietary trade secret, or other confidential information unless
the agency can demonstrate that it has instituted procedures to protect the information's
confidentiality to the extent permitted by law.
There are no special circumstances that require the collection of information to be conducted in a manner
described above.

8.

If applicable, provide a copy and identify the date and page number of publication in the Federal
Register of the agency's notice required by 5 CFR 1320.8(d), soliciting comments on the information
collection prior to submission to OMB. Summarize public comments received in response to that
notice and describe actions taken by the agency in response to these comments. Specifically address
comments received on cost and hour burden.



Describe efforts to consult with persons outside the agency to obtain their views on the availability of
data, frequency of collection, the clarity of instructions and record-keeping, disclosure, or reporting
format (if any), and on the data elements to be recorded, disclosed, or reported.



Consultation with representatives of those from whom information is to be obtained or those who
must compile records should occur at least once every three years - even if the collection of
information activity is the same as in prior periods. There may be circumstances that may preclude
consultation in a specific situation. These circumstances should be explained.
The Maritime Administration published a Federal Register notice and request for comments on this
information collection in the Federal Register on April 6, 2009, (74 FR 15590) indicating comments should
be submitted on or before June 5, 2009. A comment dated June 5, 2009 was received suggesting that the
Maritime Administration amend its forms, MA-29, MA-29-A and MA-29-B to reference the applicability
of the Toxic Substance Control Act, and 40 CFR 761.97, thereby reflecting the statutory and regulatory
constraints regarding the export of United States documented vessels for scrapping or refit outside the
United States. The Maritime Administration responded by stating …given the mandate to (a) approve the
transfer of a United States documented vessel to a person who is not a citizen of the United States, and (b)
approve the placement of a United States documented vessel under the authority of a foreign country by a
person who is not a citizen of the United States. Federal agencies generally may perform only those duties
authorized by statute. We believe that amending the forms would accomplish very little because the
overwhelming majority of requests from ship owners for vessel transfers are for ordinary transfers and not
for scrapping vessels outside the United States. Also we stated that to deal with the issue of vessels being
transferred for scrapping outside the United States, we have instituted a procedure of providing written
notification to the Environmental Protection Agency (EPA) of all foreign vessel transfer approvals at the
time they are issued by MARAD. This will provide information to the EPA on where and when any
demolition will take place. In addition, when an application for transfer includes a vessel leaving the U.S.
registry for subsequent foreign disposal, the owner and/or buyer of the vessel are advised that the vessel
may be subject to the TSCA and EPA implementing regulations.
In addition, there are frequent communications (both written and verbal) with applicants, their attorneys,
representatives or agents. The communications involve status of applications, requests for application
forms, and requests for additional information about the foreign transfer program. To date, no complaints
or problems have been expressed and no suggestions have been received concerning changes to the
collection requirements.

9.

Explain any decision to provide any payment or gift to respondents, other than remuneration of

contractors or grantees.
This item is not applicable since MARAD does not make payments or gifts of any kind to any respondent.
10.

Describe any assurance of confidentiality provided to respondents and the basis for the
assurance in statute, regulation, or agency policy.
The information requested is not of a confidential nature and, consequently, no assurance of confidentiality
need be given unless the applicant has advised MARAD that the information provided is of a confidential
nature.

11.

Provide additional justification for any questions of a sensitive nature, such as sexual
behavior and attitudes, religious beliefs, and other matters that are commonly considered
private. This justification should include the reasons why the agency considers the questions
necessary, the specific uses to be made of the information, the explanation to be given to
persons from whom the information is requested, and any steps to be taken to obtain their
consent.
No information of a sensitive nature is required.

12.

Provide estimates of the hour burden of the collection of information. The statement should:



Indicate the number of respondents, frequency of response, annual hour burden, and an explanation
of how the burden was estimated. Unless directed to do so, agencies should not conduct special
surveys to obtain information on which to base hour burden estimates. Consultation with a sample
(fewer than 10) of potential respondents is desirable. If the hour burden on respondents is expected
to vary widely because of differences in activity, size, or complexity, show the range of estimated
burden and explain the reasons for the variance. Generally, estimates should not include burden
hours for customary and usual business practices.



If this request for approval covers more than one form, provide separate hour burden estimates for
each form and aggregate the hour burdens in item 13 of OMB Form 83-I.



Provide estimates of annualized cost to respondents for the hour burdens for collections of
information, identifying and using appropriate wage rate categories. The cost of contracting out or
paying outside parties for information collection activities should not be included here. Instead, this
cost should be included in item 14.
As required by 46 U.S.C. 56101 and 56103, MARAD has authority to approve the sale, charter, lease, etc.,
of U.S.-flag vessels to non-citizens, and for the transfer of said vessels to foreign registry and flag. The
applications must be filed by the registered owner if the vessel is being transferred to foreign registry or if
being sold for scrapping in a foreign country. Rarely is more than one application received more than once
a year from the same applicant. When this does occur, it is generally in the form of multiple applications,
such as the foreign transfer of four or five barges to the same purchaser. In such instances, the processing
fee is adjusted to more accurately reflect the time it takes to process the applications.
It takes each applicant approximately 2 hours to complete and forward their application to MARAD for
approval. It takes approximately 60 applicants a total of approximately 120 hours response time.
Therefore, it is estimated that the total annual hours of burden are as follows:

Number of
Respondents
60
x

Responses
Total
Per
Responses
Respondent
Annually
1
= 60

X

Hours
Per
Response
2
=

Cost to Respondent = 120 hours (annually) at $24.99 per hour = $2,998.80

Total
Hours
Annually
120

13.

Provide an estimate of the total annual cost burden to respondents or record-keepers
resulting from the collection of information. (Do not include the cost of any hour burden
shown in items 12 and 14).



The cost estimate should be split into two components: (a) a total capital and start-up cost component
(annualized over its expected useful life); and (b) a total operation and maintenance and purchase of
services component. The estimates should take into account costs associated with generating,
maintaining and disclosing or providing the information. Include descriptions of methods used to
estimate major cost factors including system and technology acquisition, expected useful life of
capital equipment, the discount rate(s), and the time period over which costs will be incurred.
Capital and start-up costs include, among other items, preparations for collecting information such
as purchasing computers and software; monitoring, sampling, drilling and testing equipment; and
record storage facilities.



If cost estimates are expected to vary widely, agencies should present ranges of cost burdens and
explain the reasons for the variance. The cost of purchasing or contracting out information
collection services should be a part of this cost burden estimate. In developing cost burden estimates,
agencies may consult with a sample of respondents (fewer than 10), utilize the 60-day pre-OMB
submission public comment process and use existing economic or regulatory impact analysis
associated with the rule-making containing the information collection, as appropriate.



Generally, estimates should not include purchases of equipment or services, or portions thereof,
made: (1) prior to October 1, 1995, (2) to achieve regulatory compliance with requirements not
associated with the information collection, (3) for reasons other than to provide information or keep
records for the government, or (4) as part of customary and usual business or private practices.
The estimated annual cost burden to the 60 respondents who submit one response each requiring two hours
per response is as follows:
(a) Total Capital and Start-Up Costs Estimate: There are no capital or start-up costs associated with this
information collection.
(b) Total Operation and Maintenance and Purchase of Services Estimate:
None.

14.

Provide estimates of annualized cost to the Federal Government. Also, provide a description
of the method used to estimate cost, which should include quantification of hours, operational
expenses (such as equipment, overhead, printing, and support staff), and any other expense
that would not have been incurred without this collection of information. Agencies also may
aggregate cost estimates from items 12, 13, and 14 in a single table.
The total annual cost to the Federal Government for processing the collection is estimated as follows:
One-time Costs: $ None
Annual Costs: $60,639.00

It is estimated that specialists within the Office of Sealift Support spends a total of seven hours performing the
following tasks:
 Reviewing applications and notifying program offices
 Recording, preparing clearance forms and internal action memoranda
 Updating records, notifying applicant
 Transmitting Contracts/Orders
It is estimated that two MARAD program specialists from the Office of Sealift Support, and one attorney
from the Office of Chief Counsel will review the applications for clearance and authorization of transfer.
It is estimated that one program official from the Department of Defense, U.S. TRANSCOM, spends a total
of two hours conducting a final review and clearance of applications at an hourly rate of $33.84.
Number of
Employees

Hourly
Wage

Project
Time
x

Cost Per
Application

1 MA

$40.86

1 MA

$57.42

1 MA

$47.64

x

3 hours

=

$142.92

1 DOD

$33.84

x

2 hour

=

$ 67.68

=
=
=
=

536.30
$ 464.35
$1010.65
$ 60,639.00

x

Overhead at 85%
Sub-total
Times 60 responses per year

3 hours
4 hours

=
=

$163.44
$172.26

Maximum Total Annual Cost to Federal Government: $60,639.00
15.

Explain the reasons for any program changes or adjustments reported in items 13 or 14 of OMB
Form 83-I.
The number of applications requesting the Maritime Administration’s approval for the transfer to foreign
ownership, registry and flag has decreased. The owners of these vessels are maintaining them longer in the
U.S. fleet before disposing or selling them.

16.

For collections of information whose results will be published, outline plans for tabulation and
publication. Address any complex analytical techniques that will be used. Provide the time schedule
for the entire project, including beginning and ending dates of the collection of information,
completion of report, publication dates, and other actions.
There are no plans to publish the results of the information collection for statistical purposes.

17.

If seeking approval to not display the expiration date for OMB approval of the information
collection, explain the reasons that display would be inappropriate.
MARAD is not seeking such an approval.

18.

Explain each exception to the certification statement identified in Item 19, "Certification for
Paperwork Reduction Act Submissions," of OMB Form 83-I.
There are no exceptions to the certification statement.