[Federal Register Volume 65, Number 232 (Friday, December 1, 2000)]
[Proposed Rules]
[Pages 75201-75210]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-30447]


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DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Part 97

[USCG 2000-7080]
RIN 2115-AF97


Cargo Securing on Vessels Operating in U.S. Waters

AGENCY: Coast Guard, DOT.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Coast Guard is proposing regulations to implement cargo 
securing standards for U.S. and foreign vessels,

[[Page 75202]]

carrying general cargoes and hazardous materials on international 
voyages, to parallel the new requirements in Chapter VI and VII of the 
International Convention for the Safety of Life at Sea (SOLAS). The 
Coast Guard is also seeking comments on five options for the future 
development of cargo-securing regulations for U.S.-certificated vessels 
carrying hazardous materials in domestic coastwise trade.

DATES: Comments and related material must reach the Docket Management 
Facility on or before March 1, 2001.

ADDRESSES: To make sure your comments and related material are not 
entered more than once in the docket, please submit them by only one of 
the following means:
    (1) By mail to the Docket Management Facility (USCG 2000-7080), 
U.S. Department of Transportation, room PL-401, 400 Seventh Street SW., 
Washington, DC 20590-0001.
    (2) By hand delivery to room PL-401 on the Plaza level of the 
Nassif Building, 400 Seventh Street SW., Washington, DC, between 9 a.m. 
and 5 p.m., Monday through Friday, except Federal holidays. The 
telephone number is 202-366-9329.
    (3) By fax to the Docket Management Facility at 202-493-2251.
    (4) Electronically through the Web Site for the Docket Management 
System at http://dms.dot.gov.
    The Docket Management Facility maintains the public docket for this 
rulemaking. Comments and material received from the public, as well as 
documents mentioned in this preamble as being available in the docket, 
will become part of this docket and will be available for inspection or 
copying at room PL-401 on the Plaza level of the Nassif Building, 400 
Seventh Street SW., Washington, DC, between 9 a.m. and 5 p.m., Monday 
through Friday, except Federal holidays. You may also find this docket 
on the Internet at 
http://dms.dot.gov.

FOR FURTHER INFORMATION CONTACT: For questions on this proposed rule, 
please contact Mr. Bob Gauvin, Project Manager, Office of Operating and 
Environmental Standards, Commandant (G-MSO-2), U.S. Coast Guard, 
telephone 202-267-1053. For questions on viewing or submitting material 
to the docket, call Dorothy Beard, Chief, Dockets, Department of 
Transportation, telephone 202-366-9329.

SUPPLEMENTARY INFORMATION:

Request for Comments

    We encourage you to participate in this rulemaking by submitting 
comments and related material. If you do so, please include your name 
and address, identify the docket number for this rulemaking (USCG 2000-
7080), indicate the specific section of this document to which each 
comment applies, and give the reason for each comment. You may submit 
your comments and material by mail, hand delivery, fax, or electronic 
means to the Docket Management Facility at the address under ADDRESSES; 
but please submit your comments and material by only one means. If you 
submit them by mail or hand delivery, submit them in an unbound format, 
no larger than 8\1/2\ by 11 inches, suitable for copying and electronic 
filing. If you submit them by mail and would like to know they reached 
the Facility, please enclose a stamped, self-addressed postcard or 
envelope. We will consider all comments and material received during 
the comment period. We may change this proposed rule in view of them.

Public Meeting

    A public meeting was held on this matter in Room 2415 of the Coast 
Guard's Headquarters Building in Washington, DC, on February 3, 1999. A 
notice of that meeting and its agenda was published in the Federal 
Register (64 FR 1648) on January 11, 1999.
    We do not now plan to hold any further public meetings, but you may 
submit a request for one to the Docket Management Facility at the 
address under ADDRESSES explaining why one would be beneficial. If we 
determine that another meeting would aid this rulemaking, we will hold 
one at a time and place announced by a later notice in the Federal 
Register.

Background and Purpose

    Several maritime incidents during the early 1990's underscored the 
risk of serious injury or death, vessel loss, property damage, and 
environmental damage caused by improperly secured cargo aboard vessels. 
The most well-known incident occurred off the New Jersey coast in early 
1992. During a voyage in bad weather, the M/V Santa Clara I lost 21 
containers overboard, including 4 containers of the hazardous material, 
arsenic trioxide.
    The Coast Guard convened a Board of Inquiry to investigate the M/V 
Santa Clara I mishap. The Board found that the container losses were 
caused by cargo securing failures related to bad weather and human 
error. Based on its findings, the Board recommended adopting the 
International Maritime Organization's (IMO) voluntary guidelines on 
cargo securing manuals as regulations in the International Convention 
for the Safety of Life at Sea, 1974 (SOLAS). The Commandant approved 
the Board's recommendation. With the support of other IMO member 
governments, the U.S. led a proposal to include new requirements for 
cargo securing manuals in SOLAS. These requirements were adopted as 
part of the 1994 amendments to SOLAS. These requirements are located in 
SOLAS Chapters VI/5.6 and VII/6.6.
    Under SOLAS, all cargo vessels engaged on international voyages and 
equipped with cargo securing systems or individual securing 
arrangements must have a Flag State approved Cargo Securing Manual 
(CSM) by December 31, 1997. Under SOLAS and Executive Order 12234--
which authorizes the Secretary to issue regulations that implement 
SOLAS--these requirements for a cargo securing manual apply to all 
U.S.-flag cargo vessels of 500 gross tons or more, engaged in 
international trade. Vessel types affected include general-cargo 
vessels, cellular containerships, roll-on/roll-off vessels, passenger/
cargo vessels, supply vessels, bulk vessels capable of carrying non-
bulk cargo, heavy lift ships, freight ships carrying packaged or break-
bulk cargoes, and other similar vessels. Any vessel engaged solely in 
the carriage of bulk solids or liquid cargoes is exempt by SOLAS from 
the requirements for a cargo-securing manual.
    To conform to these SOLAS requirements, CSMs must provide up-to-
date information and guidance to assist a vessel's master and crew 
regarding the proper use of the equipment available to adequately stow 
and secure the vessel's cargo.
    U.S. Coast Guard Navigation and Vessel Inspection Circular 10-97 
(NVIC 10-97), ``Guidelines for Cargo Securing Manual Approval,'' 
provides interim guidance for U.S-flag vessel compliance with the SOLAS 
requirements. The NVIC includes CSM submittal, review, approval, and 
appeal procedures. A copy of the NVIC is available in the public docket 
or on the Internet at 
http://www.uscg.mil/hq/g-m/nvic/.
    Problems with cargo securing are not limited to vessels engaged 
only in international trade. There have been a number of cargo-related 
marine casualties (such as loss overboard of containerized hazardous 
material) involving U.S.-flag vessels engaged in U.S. domestic 
coastwise trade. The majority of domestic marine casualties were caused 
by poor cargo securing methods, inadequate equipment, and poor planning 
and management of personnel securing cargo.
    Changes in the technology of transporting hazardous materials, 
mostly in container feeder service using

[[Page 75203]]

deck barges instead of ships within the U.S., have altered the 
management and oversight of cargo securing operations. These types of 
operations have had a significant number of cargo loss incidents over 
the last 5 years. These cargo losses have directly affected the safety 
at the arrival port facilities; introduced hazardous materials into 
U.S. domestic waters, and hazard the safety of the public in ports and 
along adjacent waterways used by commercial traffic. Because of this 
trend and the resulting increased risk of harm to the public and the 
environment, the Coast Guard is considering the need for cargo securing 
requirements for U.S. vessels engaged in U.S. domestic coastwise trade.
    On February 3, 1999, the Coast Guard held a public meeting to 
collect comments on the need for U.S. regulations for national and 
international vessel cargo securing standards. The notice requested 
written and verbal comments that could be provided before, at, and 
after the meeting. Two written comments were received. You may view 
them at the public docket (USCG 1999-4951) on the Internet at http://dms.dot.gov. The meeting featured a presentation, including Coast 
Guard-collected casualty and risk-based information, as well as Coast 
Guard actions to date. The 14 members of the public and maritime 
industry who attended provided no verbal comments.
    We contacted the Towing Safety Advisory Committee (TSAC) on this 
issue during the summer of 1999, and its executive staff decided to 
place this issue on its agenda for the TSAC's September 15, 1999 
working meeting. At that meeting, a separate TSAC Container Barge 
Working Group was established, met, and discussed cargo securing 
operational standards within their industry. Several operational 
managers for container barge companies attended the Working Group 
session and spoke on their industry standards for cargo securing. The 
Working Group discussed whether there was a need for national cargo 
securing standards and options for reducing risk from hazardous 
material cargo transportation entailing cargo securing.
    The Coast Guard has developed its proposal for options to develop 
national regulatory standards in line with the information received 
from the public meeting and TSAC Working Group session.

Discussion of Proposed Rule

International Requirements for Cargo Securing

    The incorporation of the international standards from SOLAS for 
cargo securing in U.S. regulations is being completed under the 
Secretary's authority provided by 46 U.S.C. 3306(a)(1). Section 3306 
contains broad authority to prescribe regulations for the proper 
inspection and certification of vessels and their fittings, equipment 
and appliances. It also provides regulatory flexibility for meeting 
technological changes.
    The Coast Guard has developed proposed regulations that it intends 
to place in a new part 97 in Title 33, Code of Federal Regulations, 
Subchapter F, ``Vessel Operating Regulations.'' This new part 97 will 
be consistent with the rules provided by Chapter VI, Regulation 5(6) 
and Chapter VII, Regulation 6(6) and IMO recommended guidelines on the 
development and approval of CSMs for vessels applicable to SOLAS. This 
new part will describe--
    (a) Applicability of and authorities for the cargo securing rules;
    (b) Required elements for cargo securing systems;
    (c) Enforcement actions for failure to comply with the part while 
operating in U.S. waters; and
    (d) Ability for an organization to become an approval authority of 
CSMs for the U.S.

Domestic Requirements for Cargo Securing

    At this point, the Coast Guard is not proposing regulations for 
U.S. vessels carrying hazardous materials as break-bulk or 
containerized cargoes in U.S. domestic coastwise trade. Rather, the 
Coast Guard is seeking comments on five options for the future 
development of national standards for these operations.
    Option One: The Coast Guard develops regulations for the above 
described U.S. vessels that meet the same standards proposed for 
vessels required to meet the SOLAS requirements listed in this 
rulemaking as part of the new 33 CFR part 97.
    Option Two: The Coast Guard develops regulations that allow 
companies to institute their own operational cargo securing and safety 
management standards for their vessel(s). These written standards would 
be submitted for approval by the Coast Guard, or to a recognized cargo 
standards organization selected by the Coast Guard for review and 
approval. If the vessel's company has already established cargo 
securing standards within a U.S.-certificated safety management system 
that meets 33 CFR part 96, this would be viewed as being equivalent to 
these requirements. The Coast Guard would amend and re-publish NVIC 10-
97 to provide guidance on the minimum performance elements required for 
the company's cargo securing procedures or cargo securing manual. The 
Coast Guard would oversee the use of these procedures during vessel 
inspections and during normal, routine port safety monitoring of the 
vessel.
    Option Three: The Coast Guard develops regulations that require a 
certificate of loading and securing, prior to a vessel's departure for 
sea, only when it will transport hazardous materials which come under 
the requirements of 49 CFR part 176. If the vessel is not carrying 
hazardous materials, it would not be required to be surveyed or have a 
cargo certificate for that voyage. A certificate for the cargo load 
would be received by the vessel's master, who would hire a Coast Guard 
recognized cargo surveying organization to survey the secured cargoes 
aboard the vessel before it departs from port. These regulations would 
establish standards for cargo surveying organizations to be recognized 
by the Coast Guard and enforcement authorities of the Coast Guard for 
violation of these regulations.
    Option Four: The Coast Guard would develop regulations which would 
combine all three of the previously written options, allowing a 
vessel's owner to choose how to meet the regulations when a vessel 
would carry hazardous materials in domestic trade.
    Option Five: The Coast Guard would not develop separate Federal 
cargo stowage and securing regulations but would incorporate by 
reference industry standards (developed in concert with TSAC) into 
regulations for coastwise-operating U.S. vessels. The Coast Guard would 
amend and re-publish NVIC 10-97 to provide guidance on the use of these 
industry standards and provide guidelines on how the industry would 
manage and internally audit the use of the standards by vessel 
personnel. The Coast Guard would externally audit the use of these 
incorporated standards and review records of their use during normal 
U.S-vessel inspections for certification or during routine port safety 
monitoring of the vessels.
    The applicability for these standards would be for any U.S. vessel 
which--
    (a) Is of 300 gross tons or more;
    (b) Carries hazardous materials other than bulk solids or bulk 
liquids;
    (c) Meets the requirements to hold a U.S. Coast Guard Certificate 
of

[[Page 75204]]

Inspection under 46 CFR subchapter I (Parts 90-105); and
    (d) Is certificated for domestic operation on coastwise voyages 
within the United States.
    The Coast Guard proposes to place such regulations in 46 CFR part 
91 and does not expect that these national standards will be applicable 
to U.S. vessels that operate only on inland waterways and rivers; 
lakes, bays, and sounds; or Great Lakes routes.
    The Coast Guard requests that respondents, in their written 
comments about the five proposed options for domestic coastwise vessel 
operations, list which option they support, and explain the reason for 
their support. Respondents should also provide reasoning for not 
supporting the other four options, and they may offer any other 
proposals that they think we should consider to ensure the safety of 
the stowage and securing of hazardous materials in U.S. domestic 
coastwise trade.

Regulatory Evaluation

    This proposed rule is not a ``significant regulatory action'' under 
section 3(f) of Executive Order 12866 and does not require an 
assessment of potential costs and benefits under section 6(a)(3) of 
that Order. The Office of Management and Budget has not reviewed it 
under that Order. It is not ``significant'' under the regulatory 
policies and procedures of the Department of Transportation (DOT) (44 
FR 11040, February 26, 1979).
    Since this action parallels existing international requirements, 
which became effective on December 31, 1997, already enforced on 
vessels in that trade, we expect no economic impact from this proposed 
rule and a full Regulatory Evaluation under paragraph 10e of the 
regulatory policies and procedures of DOT is unnecessary.

Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we 
considered whether this proposed rule would have a significant economic 
impact on a substantial number of small entities. The term ``small 
entities'' comprises small businesses, not-for-profit organizations 
that are independently owned and operated and are not dominant in their 
fields, and governmental jurisdictions with populations of less than 
50,000.
    The Coast Guard reviewed the effects of this enforcement policy 
when publishing its NVIC 10-97 on November 7, 1997. It is expected that 
this policy will not impact small entities, as there are few, if any, 
small entities that own or operate the craft affected by these proposed 
regulations.
    Therefore, the Coast Guard certifies under 5 U.S.C. 605(b) that 
this proposed rule would not have a significant economic impact on a 
substantial number of small entities. If you think that your business, 
organization, or governmental jurisdiction qualifies as a small entity 
and this rule would have a significant economic impact on it, please 
submit a comment to the Docket Management Facility at the address under 
ADDRESSES. In your comment, explain why you think your business, 
organization, or governmental jurisdiction qualifies and how and to 
what degree this rule would economically affect it.

Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement 
Fairness Act of 1996 (Pub. L. 104-121), we want to assist small 
entities in understanding this proposed rule so that they can better 
evaluate its effects on them and participate in the rulemaking. If the 
rule would affect your small business, organization, or governmental 
jurisdiction, and you have questions concerning its provisions or 
options for compliance, please consult with: Mr. Bob Gauvin, Project 
Manager, Office of Operating and Environmental Standards, Commandant 
(G-MSO-2), U.S. Coast Guard, at 202-267-1053, by facsimile 202-267-
4570, or by email at <a href="/cdn-cgi/l/email-protection#0775606672716e694764686a63732972746460296a6e6b"><span class="__cf_email__" data-cfemail="384a5f594d4e5156785b57555c4c164d4b5b5f16555154">[email protected]</span></a>.
    Small businesses may send comments on the actions of Federal 
employees who enforce, or otherwise determine compliance with, Federal 
regulations to the Small Business and Agriculture Regulatory 
Enforcement Ombudsman and the Regional Small Business Regulatory 
Fairness Boards. The Ombudsman evaluates these actions annually and 
rates each agency's responsiveness to small business. If you wish to 
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR 
(1-888-734-3247).

Collection of Information

    For vessels complying with SOLAS, this proposed rule has 
collection-of-information requirements already covered by the SOLAS 
Cargo Ship Safety Equipment Certificate (CG-3347), approved under the 
Office of Management and Budget (OMB) control number 2115-0056. For 
vessels that must comply with U.S-certification requirements, this 
proposed rule has collection-of-information requirements already 
covered under the U.S. Coast Guard's Certificate of Inspection (CG-
841), approved under OMB control number 2115-0517.

Federalism

    We have analyzed this proposed rule under Executive Order 13132, 
Federalism.
    It is well settled that States are precluded from regulating in 
categories that are reserved for regulation by the Coast Guard. It is 
also well settled, now, that all of the categories covered in 46 U.S.C. 
3306 (design, construction, alteration, repair, maintenance, operation, 
and equipping of vessels, and cargo handling) are within the field 
foreclosed from State regulation. See United States v. Locke 120 S. Ct. 
1135 (2000); Ray v. Atlantic Richfield Co., 435 U.S. 151 (1978). The 
exercise of State authority would conflict with the exercise of Federal 
authority under Federal Statute. Also see International Association of 
Independent Tank Vessel Owners (Intertanko) v. Locke, 148 F.3d 1053 
(9th Cir. 1998). Thus, this rule falls into the above-mentioned 
categories, thereby precluding States from regulating. Because States 
may not promulgate rules within these categories, preemption is not an 
issue under Executive Order 13132.

Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) 
requires Federal agencies to assess the effects of their regulatory 
actions not specifically required by law. In particular, the Act 
addresses actions that may result in the expenditure by a State, local, 
or tribal government, in the aggregate, or by the private sector of 
$100,000,000 or more in any one year. Though this proposed rule would 
not result in such an expenditure, we do discuss the effects of this 
rule elsewhere in this preamble.

Taking of Private Property

    This proposed rule would not effect a taking of private property or 
otherwise have taking implications under Executive Order 12630, 
Governmental Actions and Interference with Constitutionally Protected 
Property Rights.

Civil Justice Reform

    This proposed rule meets applicable standards in sections 3(a) and 
3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize 
litigation, eliminate ambiguity, and reduce burden.

Protection of Children

    We have analyzed this proposed rule under Executive Order 13045, 
Protection of Children from

[[Page 75205]]

Environmental Health Risks and Safety Risks. This rule is not an 
economically significant rule and does not concern an environmental 
risk to health or risk to safety that may disproportionately affect 
children.

Environment

    We considered the environmental impact of this proposed rule and 
concluded that, under figure 2-1, paragraph (34)(e), of Commandant 
Instruction M16475.lC, this rule is categorically excluded from further 
environmental documentation. The intent of these proposed rules is to 
ensure proper securing of cargoes to stop losses overboard of materials 
that can cause damage to the environment. We expect these regulations 
to have an indirect, positive effect on the environment, by reducing 
the frequency of accidental discharges of general and hazardous 
material cargoes in the ports and waterways of the U.S. and the world. 
A ``Categorical Exclusion Determination'' is available in the docket 
where indicated under ADDRESSES.

List of Subjects in 33 CFR Part 97

    Cargo stowage and securing, Cargo vessels, Hazardous materials, 
Incorporation by reference, Reporting and recordkeeping requirements.

    For the reasons discussed in the preamble, the Coast Guard proposes 
to amend 33 CFR Chapter I as follows:

PART 97--[ADDED]

    1. Add part 97 to Subchapter F read as follows:

PART 97--RULES FOR THE SAFE OPERATION OF VESSELS, STOWAGE AND 
SECURING OF CARGOES

Subpart A--General
Sec.
97.100   Purpose.
97.110   To whom does this subpart apply?
97.120   Definitions.
97.130   Incorporation by reference.
Subpart B--Cargo Securing Manual
97.200   To whom does this subpart apply?
97.210   Cargo Securing Manual (CSM)--General.
97.220   Cargo securing devices and arrangements.
97.230   Inspection and maintenance of cargo securing devices.
97.240   Handling and safety instructions for cargo securing 
devices.
97.250   Evaluation of forces acting on cargo units and securing 
devices.
97.260   Use of portable cargo securing devices on various cargoes.
97.270   Special requirements for RO-RO vessels or bulk carriers.
97.280   Stowage and securing of containers and other standardized 
cargoes.
Subpart C--How will Cargo Securing Manual Requirements be Approved and 
Enforced?
97.300   Purpose.
97.310   To Whom does this subpart apply?
97.320   How do I receive approval on a U.S. vessel's Cargo Securing 
Manual?
97.330   When I amend an approved Cargo Securing Manual, will the 
amendments have to be reviewed and approved by a U.S. Cargo Securing 
Manual Approval Authority?
97.340   How do I appeal a decision made by a U.S. Cargo Securing 
Manual Approval Authority?
97.350   How will the Coast Guard handle compliance and enforcement 
of these regulations?
Subpart D--Authorization of an Organization to Act on Behalf of the 
U.S.
97.400   Purpose.
97.410   To whom does this regulation apply?
97.420   How does an organization submit a request to be authorized 
to approve Cargo Securing Manuals for U.S. vessels?
97.430   How will the Coast Guard decide whether to approve an 
organization's request to be authorized?
97.440   What happens if the Coast Guard disapproves an 
organization's request to be authorized?
97.450   How will I know what the Coast Guard requires of my 
organization if my organization receives authorization?
97.460   How does the Coast Guard terminate an organization's 
authorization?
97.470   What is the status of a certificate if the issuing 
organization has its authority terminated?
97.480   What further obligations exist for an organization if the 
Coast Guard terminates its authorization?

    Authority:  46 U.S.C. 2103 and 3306 et. seq.; 49 CFR 1.46.; and 
E.O. 12234.

Subpart A--General


Sec. 97.100  Purpose.

    This subpart implements the requirement that certain vessels 
operating in U.S. waters on international voyages, carrying general and 
hazardous materials as break-bulk or containerized cargoes must comply 
with Chapter VI/5 and VII/6 of the International Convention for the 
Safety of Life at Sea (SOLAS), 1974, stowage and securing requirements 
(adopted in London on May 24, 1994, and effective on December 31, 
1997).

    Note: All chapters of SOLAS are available from the International 
Maritime Organization, Publication Section, 4 Albert Embankment, 
London, SE1 75R, United Kingdom, Telex 23588. Please indicate 
document reference number ``IMO-110E'' in your request.

Sec. 97.110  To whom does this subpart apply?

    This subpart applies to you if--
    (a) You are the master of a U.S. vessel and it must comply to 
Chapter VI/5 or Chapter VII/6 of SOLAS due to the cargo the vessel 
carries on international voyages;
    (b) You are the master of a foreign vessel and it must comply to 
Chapter VI/5 or Chapter VII/6 of SOLAS due to the cargo the vessel 
carries on international voyages;
    (c) You are the owner of a U.S. vessel that is not required to meet 
Chapter VI/5 or Chapter VII/6 of SOLAS but request application of this 
subpart.
    (d) You are an organization applying to be selected as a U.S. CSM 
Approval Authority to review and issue approval certification on CSMs 
for U.S.-flag vessels.


Sec. 97.120  Definitions.

    As used in this part--
    Administration means the Government of the State whose flag the 
ship is entitled to fly.
    Cargo securing devices means all fixed and portable devices used to 
secure and support cargo units to a ship.
    Cargo Securing Manual (CSM) means a manual or documents developed 
to meet the requirements of SOLAS or this part that are used by the 
Master of a cargo vessel to instruct and provide reference on how to 
properly stow and secure cargoes on the vessel for which it is 
developed.
    CSM Approval Authority means an organization recognized by the 
Commandant of the Coast Guard which meets the requirements of subpart 
D, 33 CFR part 97, and has been authorized under this part to conduct 
certain actions and issue approval letters on behalf of the United 
States.
    Captain of the Port (COTP) means the U.S. Coast Guard officer as 
described in 33 CFR 6.01-3, commanding a Captain of the Port zone 
described in 33 CFR part 3, or that person's authorized representative.
    Cargo unit means vehicles (road vehicles, roll trailers, etc.), 
railway wagons, containers, flats, pallets, portable tanks, 
intermediate bulk containers (IBC), packaged units, unit loads, other 
cargo units such as shipping cassettes, cargo entities such as steel 
coils and heavy cargo items such as locomotives and transformers. 
Loading equipment, or any part thereof, transported on the ship, but 
which is not permanently fixed to the ship, is also considered a cargo 
unit.
    Hazardous material means a substance or material, determined by the 
Secretary of Transportation to be

[[Page 75206]]

capable of posing an unreasonable risk to health, safety, and property 
when transported in commerce, and which has been so designated. The 
term includes hazardous substances, hazardous wastes, marine 
pollutants, and elevated temperature materials as defined in 49 CFR 
part 171, materials designated as hazardous under the provisions of 49 
CFR 172.101, and materials that meet the defining criteria for hazard 
classes and divisions in 49 CFR part 173.
    Maximum Securing Load (MSL) means the allowable load capacity for a 
device used to secure cargo to a ship. Safe Working Load (SWL) may be 
substituted for MSL for securing purposes provided this is equal to or 
exceeds the strength defined by MSL.
    Non-standardized cargo means cargo that requires individual stowage 
and securing arrangements.
    Officer In Charge, Marine Inspection (OCMI) means the U.S. Coast 
Guard officer as described in 46 CFR 1.01-15(b), in charge of an 
inspection zone described in 33 CFR part 3, or that person's authorized 
representative.
    Semi-standardized cargo means cargo for which the ship is provided 
a securing system capable of accommodating a limited variety of cargo 
units, such as vehicles, trailers, etc.
    SOLAS means the International Convention for the Safety of Life at 
Sea, 1974, as amended.
    Standardized cargo means cargo for which the ship is provided an 
approved securing system based upon cargo units of a specific type.
    Vessel engaged on an international voyage means a vessel to which 
this part applies that is--
    (1) Arriving at a place under the jurisdiction of the United States 
from a place in a foreign country;
    (2) Making a voyage between places outside of the United States; or
    (3) Departing from a place under the jurisdiction of the United 
States and for a place in a foreign country.


Sec. 97.130  Incorporation by reference.

    (a) The Director of the Federal Register approves certain material 
that is incorporated by reference into this subpart under 5 U.S.C. 
552(a) and 1 CFR part 51. To enforce the edition other than specified 
in paragraph (b) of this section, the Coast Guard must publish notice 
of the change in the Federal Register and the material must be 
available to the public. You may inspect all material at the Office of 
the Federal Register, 800 North Capitol St., NW., Suite 700, 
Washington, DC, and at the U.S. Coast Guard Office of Design and 
Engineering Standards (G-MSE), 2100 Second St., SW., Washington, DC 
20593-0001, and receive it from the source listed in paragraph (b) of 
this section.
    (b) The material approved for incorporation by reference in this 
subpart and the sections affected are as follows:

International Maritime Organization (IMO)

    4 Albert Embankment, London, SE1 7SR, United Kingdom:

Assembly Resolution 533(13) (Res.A.533(13)), Elements to be taken into 
account when considering the Safe Stowage and Securing of Cargo Units 
and Vehicles in Ships, November 17, 1983-97--subpart B.
Assembly Resolution 581(14) (Res.A.581(14)), Guidelines for Securing 
Arrangements for the transport of Road Vehicles on RO-RO Ships, 
November 20, 1985-97--subpart B.
Maritime Safety Committee Circular 745 (MSC/Circ. 745), Guidelines for 
the Preparation of the Cargo Securing Manual, June 13, 1996-97--subpart 
B and C.

Subpart B--Cargo Securing Manual


Sec. 97.200  To whom does this subpart apply?

    This subpart applies to--
    (a) A U.S. cargo vessel of 500 gross tons or more that must comply 
to Chapter VI/5 or Chapter VII/6 of SOLAS and that does not solely 
carry liquid or solid cargoes in bulk on international voyages;
    (b) A foreign cargo vessel of 500 gross tons or more that must 
comply to Chapter VI/5 or Chapter VII/6 of SOLAS and that does not 
solely carry liquid or solid cargoes in bulk on international voyages;
    (c) Any U.S. cargo vessel that is not required to meet Chapter VI/5 
or Chapter VII/6 of SOLAS but requests application of this subpart.


Sec. 97.210  Cargo Securing Manuals (CSM)--General.

    (a) Each vessel that must meet this part must have a manual on 
board that has been approved by its Flag Administration that, at a 
minimum, is developed with chapters or sections that cover the 
following subjects:
    (1) Securing devices and arrangements.
    (2) Inspection and maintenance of cargo securing systems.
    (3) Stowage and securing of non-standardized and semi-standardized 
cargo.
    (4) Stowage and securing of containers and other standardized 
cargo.
    (b) The information and requirements that are developed in the CSM 
must be consistent with--
    (1) The vessel's trim and stability booklet;
    (2) The vessel's International Load Line Certificate;
    (3) The vessel's hull strength loading manual (if provided); and
    (4) The requirements of 49 CFR part 176 if applicable to the 
cargoes being carried.


    Note to paragraph (b): The guidance provided by the CSM should 
by no means rule out the principles of good seamanship, nor can it 
replace experience in stowage and securing practices.


    (c) The CSM must describe the specific arrangements and cargo 
securing devices provided on board the vessel for use with and securing 
of cargo units, containers, vehicles, and other entities.
    (d) Cargo securing instructions must be developed within the CSM 
based on the transverse, longitudinal and vertical forces that may 
arise during a vessel voyage due to adverse sea and weather conditions.
    (e) The CSM must contain guidance that--
    (1) Directs when cargo securing should be completed; and
    (2) Explains how the cargo securing should be accomplished, by 
whom, with what securing devices, and to which specific securing points 
or fittings on the vessel. This guidance should recommend how often the 
securing needs to be examined during a vessel's voyage at sea to ensure 
that the securing system has not failed or loosened due to vessel 
movement through a heavy seaway or adverse weather conditions.
    (f) The cargo securing devices described in a vessel's CSM should 
be suitable and adaptable to the quantity, type of packaging, and 
physical properties of the cargo being carried.
    (g) The description of the cargo securing devices should show the 
number of securing devices needed to properly secure cargo in line with 
the guidelines of the CSM, and list where and how many reserve cargo 
securing devices are to be kept in the vessel's inventory.
    (h) The CSM should include information on the strength of MSL, and 
instructions for use and maintenance of, specific cargo securing 
devices carried aboard the vessel.


Sec. 97.220  Cargo securing devices and arrangements.

    (a) The CSM must provide descriptions of the fixed cargo securing

[[Page 75207]]

devices provided aboard the vessel, which must include the following:
    (1) A list, a plan, or both of the fixed cargo securing devices 
aboard the vessel with a description and specification for the devices, 
which includes the--
    (i) Name of the device's manufacturer;
    (ii) Type designation of the device with a simple sketch for ease 
of identification;
    (iii) Materials the devices are made of;
    (iv) Identification markings;
    (v) Strength test results or ultimate tensile strength test 
results;
    (vi) Results of non-destructive testing; and
    (vii) Securing device's maximum securing load (MSL).
    (2) Fixed securing devices attached to a vessel's bulkheads, web 
frames, stanchions, decks or other vessel structures must be listed in 
the CSM by type, where provided, and include each device's MSL.
    (3) For vessels that were existing when these regulations became 
effective under SOLAS (after December 31, 1997) with standardized fixed 
securing devices, the information on the device's MSL and location of 
securing points is acceptable.
    (b) The CSM must provide descriptions of portable cargo securing 
devices provided to the vessel, which must include the following:
    (1) A list of the portable cargo securing devices provided aboard 
the vessel and specification for the device, which includes the--
    (i) Name of the device's manufacturer;
    (ii) Type designation of the device with a simple sketch for ease 
of identification;
    (iii) Materials the device is made of, including its safe 
operational temperatures;
    (iv) Identification markings;
    (v) Strength test results or ultimate tensile strength test 
results;
    (vi) Results of non-destructive testing; and
    (vii) Portable securing device's maximum securing load (MSL).
    (2) These lists should include the use and MSL for each portable 
securing device carried aboard the vessel, including but not limited to 
container stacking fittings, container deck securing fittings, fittings 
for interlocking of containers, bridge fittings, chains, wire lashings, 
rods, tensioners, securing gear for automobiles and other vehicles, and 
trestles and jacks used for vehicle trailers.
    (3) Other materials that support securing, such as anti-skid 
boards, should also be listed in the portable securing device section 
of the CSM.


Sec. 97.230  Inspection and maintenance of cargo securing devices.

    The CSM must have a chapter or section on the inspection of all the 
vessel's cargo securing devices. These securing device inspections must 
be carried out under the responsibility of the vessel's master. This 
chapter or section should include--
    (a) A listing of requirements or a timeline for the inspection or 
re-testing of fixed and portable cargo securing devices aboard the 
vessel as required by regulatory equipment standards;
    (b) A listing of requirements for when and how to complete visual 
examinations of all the vessel's onboard fixed and portable cargo 
securing system devices;
    (c) Procedures for accepting, maintaining, repairing or rejecting 
fixed or portable cargo securing devices during examination, re-
testing, or use; and
    (d) A record book section to keep the vessel's records of the 
inspections, re-testing and maintenance completed on the vessel's fixed 
or portable cargo securing devices.

    Note to paragraph (d): Electronic means of keeping records 
required by this section are considered acceptable for meeting this 
requirement.

Sec. 97.240  Handling and safety instructions for cargo securing 
devices.

    A chapter or section of the CSM must discuss the proper ways to 
handle securing devices, and provide safety instructions relating to 
the handling of securing devices by ship or shore personnel when 
securing and unsecuring units of cargo aboard the vessel. This written 
information should include specific safety instructions related to the 
securing and unsecuring of containers and other standardized cargoes as 
described by Sec. 97.280.


Sec. 97.250  Evaluation of forces acting on cargo units and securing 
devices.

    A chapter or section of the CSM must have lists, tables, graphs, or 
diagrams that provide the following:
    (a) An outline of the vessel's accelerations that can be expected 
in various positions onboard the vessel for adverse sea conditions with 
a range of applicable metacentric height (GM) values.
    (b) Calculated examples of the forces acting on typical cargo units 
when subjected to the accelerations provided in paragraph (a) of this 
section, and the angles of roll and metacentric height (GM) values 
above which the forces acting on the cargo units exceed the permissible 
limits for the specified securing arrangements as far as practicable;
    (c) Written examples of how to calculate the number and strength of 
portable securing devices required to counteract the forces referred to 
in paragraph (b) of this section, as well as the safety factors to be 
used for the different types of vessel portable cargo securing devices;
    (d) The person who develops a CSM must convert the calculation 
methods used into a form suited for a particular vessel, its securing 
devices and the cargo carried. This form may consist of applicable 
diagrams, tables, calculated examples; and
    (e) Other operational arrangements such as electronic data 
processing (EDP) or use of a loading computer may be accepted as 
alternatives to the requirements in paragraphs (a) and (d) of this 
section, providing that the system contains the same information.

    Note to Sec. 97.250: Examples of how to complete the strength 
calculations of portable cargo securing devices required by 
paragraph (d) are provided in Annex 13 of the Code of Safe Practice 
for Cargo Stowage and Securing (Res.A.714 (17)), IMO Publication: 
IMO--292E.

Sec. 97.260  Use of portable cargo securing devices on various cargoes.

    A chapter or section of the CSM must provide--
    (a) Direction to the vessel's master for the correct application of 
portable securing devices, taking into account the following:
    (1) Duration of a voyage.
    (2) Geographical area of the voyage with regard to the minimum safe 
operational temperature of portable securing devices.
    (3) Sea conditions which may be expected.
    (4) Dimensions, designs, and characteristics of the ship.
    (5) Estimated static and dynamic forces during the voyage.
    (6) Type and packaging of cargo units, including vehicles.
    (7) Intended stowage pattern of the cargo units, including 
vehicles.
    (8) Mass and dimensions of the cargo units and vehicles.
    (b) A part of this chapter or section of the CSM must describe the 
application of portable cargo securing devices as to the number of 
lashings and allowable lashing angles. Where necessary, the text should 
be supplemented by suitable drawings or sketches to facilitate the 
correct understanding and proper application of the securing devices to 
various types of cargo and cargo units. The text should include 
warnings that certain cargoes have low friction

[[Page 75208]]

resistance, and it is advisable to place soft boards or other anti-skid 
materials under such cargoes to increase friction when secured.
    (c) A part of this chapter or section of the CSM must contain 
recommendations for vessel locations and the methods of stowing and 
securing--
    (1) Containers;
    (2) Trailers and other cargo carrying vehicles;
    (3) Palletized cargoes;
    (4) Unit loads and single load items (e.g. wood pulp, paper rolls, 
etc.);
    (5) Heavy weight cargoes; and
    (6) Cars or other vehicles.


Sec. 97.270  Special requirements for RO-RO vessels or bulk carriers.

    (a) RO-RO vessels must have a section in their CSM that provide 
sketches showing the layout of fixed securing devices with MSL 
identification as well as the distances between securing points in all 
directions.
    (b) Designs or sketches of cargo securing arrangements for cargo 
units, including vehicles and containers on RO-RO passenger vessels, 
must show--
    (1) The minimum strength requirements for securing devices used;
    (2) Forces due to ship motion;
    (3) Angle of heel after damage or flooding; and
    (4) Other considerations relevant to the effectiveness of the cargo 
securing arrangements that must be taken into account.
    (c) When bulk carriers carry cargo units falling under the 
applicability of Sec. 97.110, this cargo must be stowed and secured per 
a CSM approved under this part.

    Note to Sec. 97.270: IMO Assembly Resolutions A.533(13) and 
A.581(14) should be utilized in the development of this section of 
the CSM involving special requirements.

Sec. 97.280  Stowage and securing of containers and other standardized 
cargoes.

    A section or chapter must be provided in the CSM on the following:
    (a) The stowage and securing of containers, within or without cell 
guides, and other standardized cargoes for vessels carrying such cargo 
units.
    (b) A comprehensive and understandable loading plan or sets of 
plans must be provided with the overview of--
    (1) Longitudinal and athwartship views of the underdeck and deck 
stowage locations of containers as appropriate;
    (2) Alternative stowage patterns for containers of different 
dimensions;
    (3) Maximum stack masses;
    (4) Permissible vertical sequences of masses of stacks;
    (5) Maximum stack heights with respect to approved sight lines; and
    (6) Application of securing devices using suitable symbols to 
display stowage positions, stack mass, sequence of masses in stack, and 
stack height.
    (c) This section or chapter of the CSM must support the 
interpretation of the stowage and securing plan for container stowage, 
explaining--
    (1) The use of specified securing devices;
    (2) Any guiding or limiting parameters, such as dimensions of 
containers, maximum stack masses, sequence of masses in stacks, stacks 
affected by wind load, height of stacks; and
    (3) Any specific warnings of possible consequences from misuse of 
securing devices or misinterpretations of instructions given.
    (d) Necessary cargo stowage and securing information must be 
provided in the CSM with deviations from the general instructions 
provided in paragraph (b) of this section, including appropriate 
warnings of possible misuse of securing devices or misinterpretation of 
instructions provided. Information should be provided with regard to--
    (1) Alternative vertical sequences of masses in stacks;
    (2) Stacks affected by wind load in the absence of outer stacks;
    (3) Alternative stowage of containers with various dimensions; and
    (4) Permissible reduction of securing effort with regard to lower 
stack masses, lesser stack heights or other reasons.
    (e) This section or chapter of the CSM must present the 
distribution of accelerations on which the stowage and securing system 
is based. Information on forces induced by wind and sea on deck, as 
well as, information of the nominal increase of forces or accelerations 
due to changes from initial stability on the stow, must be provided.
    (f) Recommendations must be included in this section or chapter of 
the CSM which provide guidelines for reducing the risk of cargo losses 
from deck stowage by restrictions to stack masses or stack heights, 
when loading scenarios could lead to stability conditions which may 
generate longer than normal accelerations or motions.
    (g) Any symbols used in the sketches required by this section must 
be used consistently throughout the CSM.

Subpart C--How Will Cargo Securing Manuals Requirements Be Approved 
and Enforced?


Sec. 97.300  Purpose.

    The purpose of this subpart is to provide you, the person who 
develops a vessel's CSM, all the information required to submit the CSM 
for approval and compliance.


Sec. 97.310  To whom does this subpart apply?

    This subpart applies to--
    (a) A developer of a CSM, or the owner or operator of a U.S. cargo 
vessel of 500 gross tons or more that must comply to Chapter VI/5 or 
Chapter VII/6 of SOLAS, and that does not solely carry liquid or solid 
cargoes in bulk on international voyages;
    (b) Owner, operator, or Master of a vessel of 500 gross tons or 
more that must comply to Chapter VI/5 or Chapter VII/6 of SOLAS and 
does not solely carry liquid or solid cargoes in bulk on international 
voyages; and
    (c) A developer of a CSM, or the owner or operator of any U.S. 
cargo vessel that is not required to meet Chapter VI/5 or Chapter VII/6 
of SOLAS but requests approval of a developed CSM for the vessel.


Sec. 97.320  How do I receive approval on a U.S. vessel's Cargo 
Securing Manual?

    (a) The CSM developer, or the owner or operator of a vessel, may 
submit a CSM meeting this part to a U.S. CSM Approval Authority for 
review and approval. Commandant (G-MOC) is the responsible office in 
the Coast Guard for overseeing and managing the review and approval of 
U.S. vessel CSM applications. A list of U.S. CSM Approval Authorities 
can be received by contacting Commandant (G-MOC), 2100 Second Street 
SW., Washington, DC 20593-0001.
    (b) For a CSM to be approved, one copy of the original CSM for the 
vessel must be provided to a U.S. CSM Approval Authority for review. 
This copy will not be returned after the review process but will be 
kept for records of the actions taken on the review and approval, or 
disapproval of the CSM. The CSM and any amendments must be dated, with 
a ``change of page'' document included within the CSM, to ensure 
continuous documentation of amendments made to the manual and the dates 
they are completed.
    (c) When the review process is complete, the U.S. CSM Approval 
Authority will provide a written statement to the provider of the CSM, 
which will indicate if the CSM is

[[Page 75209]]

approved, requires amendment to complete the approval process, or is 
disapproved. The submitter of a disapproved CSM may resubmit amendments 
(with the CSM to be reviewed further) if discrepancies noted in the 
disapproval can be rectified by new information that was excluded or 
that further expands the CSM to fully meet the requirements of this 
part.
    (d) The original of the CSM approval letter provided by the U.S. 
CSM Approval Authority must be kept with the CSM onboard the vessel. 
The CSM and its approval letter must be made available for Coast Guard 
personnel examination whenever requested.


Sec. 97.330  When I amend an approved Cargo Securing Manual, will the 
amendments have to be reviewed and approved by a U.S. Cargo Securing 
Manual Approval Authority?

    Only certain amendments to an approved CSM require that you 
resubmit the amended CSM for review and re-approval by a U.S. CSM 
Approval Authority--
    (a) Reconfiguration of a vessel from one type of cargo carriage to 
another (e.g., a general break-bulk cargo vessel to a container or a 
RO-RO vessel);
    (b) Reconfiguration or replacement of 15 percent or more of the 
vessel's fixed cargo securing or tie down systems with different types 
of devices or systems; and
    (c) Replacement of 15 percent or more of the vessel's portable 
cargo securing devices, with different types of devices for securing 
the cargo not already used aboard the vessel (e.g., wire lashings 
replaced with turnbuckles or chains).


Sec. 97.340  How do I appeal a decision made by a U.S. Cargo Securing 
Manual Approval Authority?

    (a) You may submit a written appeal to the U.S. CSM Approval 
Authority requesting reconsideration of information in dispute. Within 
30 days of receiving the appeal, the CSM Approval Authority must 
provide the vessel owner with a written ruling on the request with a 
copy to Commandant (G-MOC).
    (b) If you are dissatisfied with the CSM Approval Authority's 
ruling, you may submit a request of appeal on the matter to Commandant 
(G-MOC). You must make this appeal in writing, including documentation 
and evidence which needs to be considered. You may ask the Commandant 
(G-MOC) to stay the effect of the appealed decision by the CSM Approval 
Authority while the request is under review by the Coast Guard.
    (c) The Commandant (G-MOC) will make a decision on your appeal and 
send you a written response of the decision. That decision will be the 
final Coast Guard action on your appeal.


Sec. 97.350  How will the Coast Guard handle compliance and enforcement 
of these regulations?

    (a) While operating in waters under the jurisdiction of the United 
States, the Coast Guard may board any vessel required to meet this part 
or SOLAS to determine that the vessel has a CSM onboard. The Coast 
Guard will also verify that the vessel's Flag Administration or an 
authorized organization acting on behalf of the Flag Administration has 
approved the CSM.
    (b) A foreign vessel that does not comply with these regulations or 
SOLAS may be detained by order of the COTP or OCMI. Detainment may 
occur at the port or terminal where the violation is found until in the 
opinion of the detaining authority the vessel can go to sea without 
presenting an unreasonable threat of harm to the port, the marine 
environment, the vessel, or its crew. The detention order may allow the 
vessel to go to another area of the port, if needed, rather than stay 
at the place where the violation was found.
    (c) If any vessel that must comply with this part, or with the 
requirements of SOLAS for approved CSMs, is found in violation of this 
part, a vessel owner or Master, or any person in charge of the vessel, 
may be liable for a civil penalty under 46 U.S.C. 3318.

Subpart D--Authorization of an Organization to Act on Behalf of the 
U.S.


Sec. 97.400  Purpose.

    (a) This subpart establishes criteria and procedures for 
organizations to be authorized by the Coast Guard to act on behalf of 
the U.S. The authorization is necessary in order for an organization to 
perform reviews of CSMs for U.S. vessels and approve them as delegated 
by the Coast Guard as required by this part.
    (b) To receive an up-to-date list of organizations authorized to 
act under this subpart, send a self-addressed, stamped envelope, and 
written request to the Commandant (G-MOC), 2100 Second Street SW., 
Washington, DC 20593-0001.


Sec. 97.410  To whom does this regulation apply?

    This subpart applies to all U.S. organizations that seek 
authorization to complete reviews of U.S. vessel CSMs and issue U.S. 
approval letters of their compliance with international requirements 
and this part, on behalf of the U.S.


Sec. 97.420  How does an organization submit a request to be authorized 
to approve cargo securing manuals for U.S. vessels?

    (a) An organization must send a written request for authorization 
to the Commandant (G-MOC), Office of Compliance, 2100 Second Street 
SW., Washington, DC 20593-0001. The request must include the following:
    (1) A certified copy of the organization's certificate of 
incorporation on file with a U.S. state, including the name and address 
of the organization, with written statements or documents which--
    (i) Show that the organization's owners, managers, and employees 
are free from influence or control by vessel shipbuilders, owners, 
operators, lessors, or other related commercial interest as evidenced 
by past and present business practices;
    (ii) Show that the organization has a demonstrated capability to 
competently evaluate CSMs for completeness and sufficiency per the 
requirements of SOLAS and this part;
    (iii) Demonstrate an acceptable degree of financial security, based 
on recent audits by certified public accountants over the last 5 years; 
and
    (iv) Show that the organization maintains a corporate office in the 
United States that has adequate resources and staff to support all 
aspects of CSM review, approval, and recordkeeping.
    (2) A listing of the organization's principal executives, with 
telephone and telefax numbers;
    (3) A written description of the organization, covering the 
ownership, managerial structure, and organization components, including 
directly affiliated agencies and their functions, utilized for 
supporting technical services;
    (4) A written list of technical services the organization offers;
    (5) A written general description of the geographical area the 
organization serves;
    (6) A written general description of the clients the organization 
is serving, or intends to serve;
    (7) A written description of the type of similar work performed by 
the organization in the past, noting the amount and extent of such work 
performed within the previous 3 years;
    (8) A written listing of the full-time professional staff employed 
by the organization and available for technical review and approval of 
CSMs, including any--
    (i) Naval architects, naval engineers, or both, with copies of 
their professional credentials such as college degrees,

[[Page 75210]]

specialized training certificates, or the like; and
    (ii) Coast Guard issued Merchant Marine licenses for operation of 
vessels with unlimited tonnage certification for cargo vessel operation 
with a summary of underway experience.
    (9) Written proof of staff competency to perform tasks, evidenced 
by detailed summaries of each individual's experience (measured in 
months or years), during the past 5 years of evaluating maritime cargo 
securing systems. Experience summaries must be documented on company 
letterhead and endorsed by a company executive who has had direct 
observation of the individual and quality of his or her work product;
    (10) Written standards used by the organization for internal 
quality control to ensure consistency in CSM review and approval 
procedures by qualified professionals;
    (11) A description of the organization's training program for 
assuring continued competency of professional employees identified in 
the application involved in CSM review and approval; and
    (12) A list of five or more business references, including names, 
addresses, and telephone numbers of principal managers, who can provide 
evidence of the organization's competence within the past 2 years.
    (b) The written request from the organization must also include a 
statement to the Coast Guard that Coast Guard officials may inspect the 
organization's facilities and records of CSM review and approval on 
behalf of the U.S. at any time.
    (c) Commandant (G-MOC) may request additional information other 
than that required by this section in order to complete its evaluation 
of an organization. If this should occur, Commandant (G-MOC) will 
provide a written request for the information directly to the 
organization applying for authorization of CSM Approval Authority.


Sec. 97.430  How will the Coast Guard decide whether to approve an 
organization's request to be authorized?

    (a) First, the Commandant (G-MOC) will evaluate the organization's 
request for authorization and supporting written materials, looking for 
evidence of the following:
    (1) The organization's clear assignment of management duties;
    (2) Ethical standards for managers and CSM reviewers;
    (3) Procedures for personnel training, qualification, 
certification, and re-qualification that are consistent with recognized 
industry standards;
    (4) Acceptable standards available for the organization's internal 
auditing and management review;
    (5) Recordkeeping standards for CSM review and approval;
    (6) Methods used to review and certify CSMs;
    (7) Methods for handling appeals; and
    (8) Overall procedures consistent with IMO Resolution A.739(18), 
``Guidelines for the Authorization of Organizations Acting on Behalf of 
the Administration.''
    (b) After a favorable evaluation of the organization's written 
request, the Coast Guard will arrange to visit the organization's 
corporate and port offices for an on-site evaluation of operations.
    (c) When a request is approved, the recognized organization and the 
Coast Guard will enter into a written agreement. This agreement will 
define the scope, terms, conditions, and requirements of the 
authorization. Conditions of this agreement are found in Sec. 97.450 of 
this part.


Sec. 97.440  What happens if the Coast Guard disapproves an 
organization's request to be authorized?

    (a) The Coast Guard will write to the organization explaining why 
it did not meet the criteria for authorization.
    (b) The organization may then correct the deficiencies and reapply.


Sec. 97.450  How will I know what the Coast Guard requires of my 
organization if my organization receives authorization?

    Your organization will enter into a written agreement with the 
Coast Guard. This written agreement will specify--
    (a) How long the authorization is valid;
    (b) Which duties and responsibilities the organization may perform 
and what approval letters it may issue on behalf of the U.S.;
    (c) Reports and information the organization must send to the 
Commandant (G-MOC);
    (d) Actions the organization must take to renew the agreement when 
it expires; and
    (e) Actions the organization must take if the Coast Guard should 
revoke its authorization under this subpart.


Sec. 97.460  How does the Coast Guard terminate an organization's 
authorization?

    At least every 12 months, the Coast Guard evaluates organizations 
authorized under this subpart. If an organization fails to maintain 
acceptable standards, the Coast Guard may terminate that organization's 
authorization and remove the organization from the Commandant's list of 
authorized organizations.


Sec. 97.470  What is the status of a certificate if the issuing 
organization has its authority terminated?

    Any CSM approval certificate issued by a U.S. CSM Approval 
Authority whose authorization is later terminated remains valid as long 
as amendments have not been completed which require it to be re-
approved, as required by Sec. 97.330. In such a situation, the owner of 
the vessel should contact the Commandant (G-MOC) directly to request 
information on which authorized organizations are available to act on 
behalf of the U.S. to complete a new review and approval of the 
vessel's amended CSM.


Sec. 97.480  What further obligations exist for an organization if the 
Coast Guard terminates its authorization?

    The written agreement by which an organization receives 
authorization from the Coast Guard places it under certain obligations 
if the Coast Guard revokes that authorization. The organization agrees 
to send written notice of its termination to act on behalf of the U.S. 
to all vessel owners that have received CSM approvals for their vessel 
manuals. In that notice, the organization must include--
    (a) A written statement explaining why the organization's 
authorization was terminated by the Coast Guard;
    (b) An explanation of the status of issued approvals; and
    (c) A current list of organizations authorized by the Coast Guard 
to conduct CSM reviews and approvals.

    Dated: November 21, 2000.
Joseph J. Angelo,
Director of Standards, Acting Assistant Commandant for Marine Safety 
and Environmental Protection.
[FR Doc. 00-30447 Filed 11-30-00; 8:45 am]
BILLING CODE 4910-15-U


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