2010 Supporting Statement 2133-0540

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) three year
approval for the information collection entitled Procedures for Determining Vessel Services
Categories for Purposes of the Cargo Preference Act (OMB Control No. 2133-0540).
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.
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 (74 FR 47308). This collection supports the DOT strategic goals
of national security and economic growth.

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 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.

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.

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.
There is no duplication.

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.
While the agency does not know which vessel owners will choose to submit applications
for self-designation, 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.

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.

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-in-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 statute 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.

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There are no special circumstances that require this 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 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, 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.
MARAD published a 60-day notice and request for comments on this information
collection in the Federal Register (74 F.R., No. 236), dated December 10, 2009, at 65589,
indicating comments should be submitted on or before February 8, 2010. No comments
were received.

9.

Explain any decision to provide a payment or gift to respondents, other than
remuneration of contractors or grantees.
N/A

10.

Describe any assurance of confidentiality provided to respondents and the basis for
the assurance in statute, regulation, or agency policy.
None

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.
N/A

12.

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

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

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 83I.



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.
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 a 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 self-designation 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 $3,000 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
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Number of
Employees

Hourly
Wage

Project
Time

Cost Per
Application

1

$57.13

.50

$

28.57

1

$22.92

.17

$

3.82

$

32.39

Overhead at 85%
Subtotal
Times 100 responses per year

$ 27.53
$ 59.92
$5,992.00

Maximum Total Annual Costs to the Federal Government: $5,992.00
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 at
http://www.marad.dot.gov/documents/MAR730_MasterVesselListforCargoPreference.pdf
as provided in the MOU.

17.

Approval for not displaying the expiration date of OMB approval
N/A

18.

Exceptions to certification statement
N/A

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