Supporting Statement Cargo Preference MOU_Renewal FINAL

Department of Transportation
SUPPORTING STATEMENT
Procedures for Determining Vessel Services Categories
For Purposes of the Cargo Preference Act
INTRODUCTION
This is to request the Office of Management and Budget’s (OMB) provide an emergency
information collection clearance for the information collection entitled, Procedures for
Determining Vessel Services Categories for Purposes of the Cargo Preference Act (OMB
Control No. 2133-NEW).
Part A. Justification.
1. Circumstances that make collection of information necessary. 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.
This information is required to administer the interagency Memorandum of Understanding
(MOU) Regarding Procedures for Determining Service Categories for the Purpose of the Cargo
Preference Act (CPA). The text and an explanation of the MOU are set forth in the Federal
Register notice. This collection supports the DOT strategic goals of national security and
economic growth.
2. How, by whom, and for what purpose is the information used. 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 Maritime Administration will use the data submitted by vessel operators to create a list of
Vessel Self-Designations and determine whether the Agency agrees or disagrees with a vessel
owner’s designation of a vessel. It will use data submitted with re-designation requests to
determine whether or not a vessel should be re-designated into a different service category.
3. Extent of automated information collection. 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, e.g. permitting electronic submission of responses,
and the basis for the decision for adopting this means of collection. Also describe any consideration of
using information technology to reduce burden.

Electronic submission of application and supporting data will be encouraged by the Maritime
Administration’s notice.
4. Efforts to identify duplication. There is no duplication. This is a one-time information
collection relating to data that the agency does not now have.

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5. Efforts to minimize the burden on small businesses. 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.
While the agency does not know which vessel owners will choose to submit applications for selfdesignation, the agency anticipates that most of them will be small business (e.g., having fewer
than 500 employees, per Small Business Administration size standards found in 13 CFR Part
121). However, the voluntary nature of the application and the small scale of the hour and
financial burdens mean that small businesses impacts should be very modest.
6. Impact of less frequent collection of information. 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 would be unable to make legally essential determinations of vessel service types for
purposes of implementing the CPA under the terms of the MOU.
7. Special circumstances. 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, grantin-aid, 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 statue
or regulation, that is not supported by disclosure and data security policies that are consistent
with the pledge, or which unnecessarily impedes sharing of 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.
N/A
8. Compliance with 5 CFR 1320.8. 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 those 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,

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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 3 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 MOU requirements are the result of consultation among the affected Federal agencies. The
public will have the opportunity to comment on the Federal Register notice.
9. Payments or gifts to respondents. Explain any decision to provide a payment or gift to
respondents, other than enumeration of contractors or grantees.
N/A.
10. Assurance of confidentiality: Describe any assurance of confidentiality provided to
respondents and the basis for the assurance in statute, regulation, or agency policy.
None.
11. Justification for collection of sensitive information: 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.
N/A
12. Estimate of burden hours for information requested: 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 hour burden, and explain the reasons for the variance.
Generally, estimates should not include burden hour 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 items 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.

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Frequency: For current vessel owners who choose to submit a self-designation, the information
collection would occur only once. Under the MOU, if a new vessel comes on line or vessel
owner subsequently seeks to change its designation, a new application would have to be
submitted. Optional vessel re-designation requests can be submitted quarterly.
Respondents: It is estimated the owners or operators of up to 120 U.S.-registered vessels, and an
unknown but larger number of foreign-registered vessels, could possibly apply for selfdesignation and/or re-designation. It is important to note that, under the MOU, vessel owners are
not required to do so. Vessel owners who are satisfied with MARAD’s existing designation
presumably would not submit an application. Consequently, MARAD believes that a
significantly smaller number than the maximum potential number of respondents will actually
submit applications.
Burden Estimate: This estimate assumes a range of between 10 and 100 actual applications, in
which case the number of burden hours involved would vary from 60 – 600 hours assuming six
hours per application or 80-800 hours assuming eight hours per application. Assuming an
approximate cost of $50 per hour to perform the information collection tasks, this would result in
a range of costs from $3000 to $40,000 for the self-designation application process. These are
essentially one-time costs, aside from potential applications for voluntary re-designation in the
future. While MARAD believes that the actual number of applications received will be nearer
the lower end of this range, the range is provided to account for the uncertainty surrounding the
decisions of vessel owners.
13. Estimate of total annual costs to respondents
Nothing beyond what is stated in Item 12 above.
14. Estimate of cost to the Federal government.
None.
15. Explanation of program changes or adjustments.
N/A
16. Publication of results of data collection.
MARAD will publish a list of the self-designations submitted by vessel owners, as provided in
the MOU.
17. Approval for not displaying the expiration date of OMB approval.
N/A
18. Exceptions to certification statement.

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N/A

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