6144 Federal Register / Vol. 72, No. 27 / Friday, February 9, 2007 / Rules and Regulations 

Unfunded Mandates Reform Act of 1995 

The Unfunded Mandates Reform Act 

of 1995 (UMRA) (2 U.S.C. 1531–1538) 

requires Federal agencies to assess the 

effects of their discretionary regulatory 

actions. In particular, UMRA 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. UMRA analysis is not 

required when a rule is exempt from 

notice and comment rulemaking under 

5 U.S.C. 553(b). DHS determined that 

good cause existed under 5 U.S.C. 

553(b)(B) to exempt this rule from the 

notice and comment requirements of 5 

U.S.C. 553(b). See 70 FR 59209, 59210 

(Oct. 12, 2005). Therefore, no UMRA 

analysis is required for this rule. 

Nevertheless, DHS does not expect this 

rule to result in such an expenditure. 

Executive Order 13132, Federalism 

This final rule will not have 

substantial direct effects on the States, 

on the relationship between the 

National Government and the States, or 

on the distribution of power and 

responsibilities among the various 

levels of government. It will not 

preempt any state laws. In accordance 

with section 6 of Executive Order 

13132, we determine that this rule will 

not have federalism implications 

sufficient to warrant the preparation of 

a federalism impact statement. 

Executive Order 12988, Civil Justice 

Reform 

This final rule meets the applicable 

standards in section 3(a) and 3(b)(2) of 

Executive Order 12988. 

Paperwork Reduction Act 

This final rule will not require or 

invite any additional record or 

information maintenance, submission, 

or collection for the DHS programs. 

Therefore, this final rule will not invoke 

the requirements of the Paperwork 

Reduction Act, 44 U.S.C. 3501 et seq. 

List of Subjects in 6 CFR Part 13 

Administrative practice and 

procedure, Claims, Fraud, Penalties. 

Authority and Issuance 

Accordingly, for the reasons stated in 

the preamble, and pursuant to my 

authority as Secretary of Homeland 

Security, the interim rule adding 6 CFR 

part 13 that was published at 70 FR 

59209 on October 12, 2005, is adopted 

as a final rule without change. 

Michael Chertoff, 

Secretary. 

[FR Doc. 07–569 Filed 2–8–07; 8:45 am] 

BILLING CODE 4410–10–P 

DEPARTMENT OF COMMERCE 

National Oceanic and Atmospheric 

Administration 

15 CFR Part 902 

50 CFR Part 300 

[Docket No. 050620161–7016–02; I.D. 

061605A] 

RIN 0648–AP61 

South Pacific Tuna Fisheries 

AGENCY: National Marine Fisheries 

Service (NMFS), National Oceanic and 

Atmospheric Administration (NOAA), 

Commerce. 

ACTION: Final rule. 

SUMMARY: NMFS revises regulations 

implementing the South Pacific Tuna 

Act of 1988, as amended (SPTA), to 

reflect the changes agreed to in the 

Third Extension of the Treaty on 

Fisheries between the Governments of 

Certain Pacific Island States and the 

Government of the United States of 

America and its annexes, schedules, and 

implementing agreements, as amended 

(Treaty). New provisions under the 

Treaty relate to vessel monitoring 

system (VMS) requirements, vessel 

reporting requirements, area restrictions 

for U.S. purse seine vessels fishing 

under the Treaty, and allowing U.S. 

longline vessels to fish on the high seas 

portion of the Treaty Area. These 

actions are intended to bring the United 

States into compliance with its 

obligations under the Treaty. 

DATES: Effective March 12, 2007. 

ADDRESSES: Copies of the final 

regulatory flexibility analysis (FRFA), 

regulatory impact review, 

environmental assessment, and small 

entity compliance guide that were 

prepared for this final rule may be 

obtained from the Regional 

Administrator, NMFS, Pacific Islands 

Regional Office, 1601 Kapiolani Blvd., 

Suite 1110, Honolulu, HI 96814–4700, 

or by contacting Raymond P. Clarke by 

telephone at 808–944–2200 or by 

facsimile (fax) at 808–973–2941. 

Written comments regarding the 

burden-hour estimates or other aspects 

of the collection-of-information 

requirements contained in this final rule 

may be submitted to NMFS, Pacific 

Islands Regional Office, and by e-mail to 

David_Rostker@omb.eop.gov, or fax to 

202–395–7285. 

FOR FURTHER INFORMATION CONTACT: 

Raymond P. Clarke, 808–944–2200. 

SUPPLEMENTARY INFORMATION: 

Background 

On August 10, 2006, NMFS published 

a proposed rule (71 FR 45752) that 

would revise regulations at 50 CFR part 

300, subpart D, in order to implement, 

under the authority of the SPTA (16 

U.S.C. 973 et seq.), certain changes 

recently agreed to in the Treaty. The 

proposed rule was open to public 

comment through October 10, 2006. 

The objective of this final rule is to 

fulfill the commitments of the United 

States to implement the amendments 

made in the Third Extension of the 

Treaty, which was agreed to in 2002 and 

expires June 14, 2013, as well as 

subsequent technical modifications 

made in the seventeenth annual formal 

consultation of the parties to the Treaty 

in March 2005. 

This final rule implements four 

modifications to the Treaty, as 

summarized below. References to the 

term ‘‘FFA’’ mean the Pacific Islands 

Forum Fisheries Agency, in its capacity 

of Treaty Administrator on behalf of the 

Pacific Island parties to the Treaty. In 

addition to revising the regulations to 

implement these Treaty modifications, 

the regulations are revised to explicitly 

include the details of certain 

requirements that were until now 

incorporated only by reference to the 

Treaty and its annexes. 

(1) Modifications to vessel reporting 

requirements: The purse seine vessel 

reporting requirements have been 

modified such that: times must be 

reported in Universal Coordinated Time 

(also known as UTC) rather than 

Greenwich Mean Time (or GMT); 

catches must be reported in metric tons 

(rather than short tons); the weekly 

vessel report to the FFA, known as the 

WEEK report, is eliminated; the weekly 

reports to national authorities continue 

but are amended to indicate whether or 

not an observer is on board the vessel; 

the report for entry into port for 

unloading must be submitted at least 24 

hours prior to (rather than any time 

prior to) the vessel’s arrival into port; 

and the vessel operator is required to 

report the estimated date and time of 

arrival and the estimated date of 

departure from port in the report for 

port departure and the report entry into 

port for unloading, as appropriate. 

(2) Modifications to Closed and 

Limited Areas: Papua New Guinea’s 


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archipelagic waters are now closed to 

U.S. purse seine vessels (prior to the 

Third Extension certain of these waters 

were open to U.S. vessels fishing under 

the Treaty) and the Solomon Islands 

EEZ is now opened to fishing under the 

Treaty, with the exception of the area 

from the archipelagic baseline for the 

main island group (as defined in 

Solomon Islands’ Delimitation of 

Marine Waters Act 1978) out to 60 

nautical miles (111 kilometers) that is 

closed to fishing (prior to the Third 

Extension all but a small portion of the 

Solomon Islands EEZ was a Closed 

Area; the remainder was a Limited Area 

in which effort by U.S. purse seine 

vessels was restricted). 

(3) VMS requirements: U.S. purse 

seine vessels licensed under the Treaty 

are required to have installed and to 

carry, operate, and maintain a VMS unit 

while in the Treaty Area. The VMS unit 

and attendant software have to be of a 

type approved by the FFA as Treaty 

Administrator. A list of VMS units and 

associated software that are approved at 

this time is provided in the following 

table. The approvals are subject to 

change; an up-to-date list can be 

obtained from the FFA, as Treaty 

Administrator. 

Model name Model No. Software version 

Thrane and Thrane Capsat transceiver ....................................................................................... TT–3022D ................... 3.11 

Thrane and Thrane Capsat transceiver ....................................................................................... TT–3022D ................... 3.24 

Thrane and Thrane Capsat transceiver ....................................................................................... TT–3022D ................... 3.28 non-SOLAS Fishery DistFn-1 

Thrane and Thrane Capsat transceiver ....................................................................................... TT–3022D ................... 3.32 

Thrane and Thrane Capsat transceiver ....................................................................................... TT–3026S Mini-C ........ 2.12 

Japan Radio Company Limited Inmarsat-C transceiver .............................................................. JUE–75C ..................... 8.0 

Japan Radio Company Limited Inmarsat-C transceiver .............................................................. JUE–75CV .................. 6.1 

Japan Radio Company Limited Inmarsat-C transceiver .............................................................. JUE–95VM .................. 1.0 

Trimble Galaxy transceiver .......................................................................................................... 8005 (Courier) ............. 5.10 

Trimble Galaxy transceiver .......................................................................................................... TNL 7001 .................... 5.10a 

Trimble Galaxy transceiver .......................................................................................................... TNL 7005 (non solas) 5.10 

Trimble Galaxy transceiver .......................................................................................................... TNL 8001 (Sentinel) ... 5.10 

Furuno Inmarsat-C Mobile Earth Station Transceiver ................................................................. Felcom 15 ................... DCE F15 V02+FFA 

Furuno Inmarsat-C transceiver .................................................................................................... Felcom 12 (IC–212) .... DCE version .07+FFA 

Furuno Inmarsat-C transceiver .................................................................................................... Felcom 12 (IC–212) .... DCE version .08+FFA 

Furuno Mini-C Mobile Earth Station Transceiver ......................................................................... Felcom 16 ................... DCE F16 V02+FFA 

Furuno Mini-C Mobile Earth Station Transceiver ......................................................................... Felcom 16 ................... DCE F16 V03+FFA 

Sailor Inmarsat-C Mobile Earth Station Transceiver (SAT–C) .................................................... H1622D ....................... TT–10202A Version 

3.21 non-SOLAS 

Fishery 

If the VMS unit malfunctions or fails, 

the owner or operator is required to 

provide notice of such failure or 

malfunction, submit substitute reports 

by an alternative means at intervals of 

no greater than 8 hours, and if directed 

by the FFA or NMFS, proceed to a 

designated port to repair or replace the 

VMS unit. Owners and operators of 

vessels licensed under the Treaty are 

also required to register annually on the 

FFA Vessel Register (in the past the FFA 

administered a ‘‘FFA VMS Register of 

Foreign Fishing Vessels’’ and a ‘‘FFA 

Regional Register of Foreign Fishing 

Vessels’’ but the two have been 

consolidated into a single ‘‘FFA Vessel 

Register’’). NMFS will administratively 

facilitate the applications for 

registration on the register, but vessel 

owners and operators are responsible for 

completing the FFA registration forms 

and the payment of associated fees. 

The contact information for the FFA, 

as Treaty Administrator, for the purpose 

of the manual position reports and the 

notifications required in certain 

circumstances in the VMS-related 

regulations, as well as for informational 

purposes, is as follows: 

• Telephone: Country code 677, 

number 21124. 

• Facsimile: Country code 677, 

number 23995. 

• E-mail: VMS.Help@ffa.int. 

Updated contact information may be 

obtained from NMFS (see ADDRESSES). 

Additional contact information for the 

FFA, as Treaty Administrator, for 

informational purposes is as follows: 

• Internet: http://www.ffa.int. 

• Mail: Director-General, Pacific 

Islands Forum Fisheries Agency, P.O. 

Box 629, Honiara, Solomon Islands 

Updated contact information may be 

obtained from the NMFS American 

Samoa field station, telephone: 684–

633–5598; facsimile: 684–633–1400, or 

the NMFS Pacific Islands Regional 

Office (see ADDRESSES). 

The VMS data will be treated by 

NMFS as confidential business 

information. However, if VMS data are 

requested under FOIA, the responding 

agency will be required to determine the 

releasability of the information pursuant 

to any applicable exemptions. These 

new VMS requirements appear in the 

revised regulations at 50 CFR 300.45. 

(4) Longline high seas access: This 

final rule exempts U.S. longline vessels 

from the prohibitions currently listed in 

50 CFR 300.38, effectively allowing 

authorized U.S. longline vessels to fish 

in the high seas portions of the Treaty 

Area. The original language of the 

Treaty stated that only purse seine 

vessels could operate under the Treaty, 

with one exception, that being for 

albacore vessels that trolled (fished) 

while transiting through the high seas 

portion of the Treaty Area. The 

unintended consequence of this 

language is that it did not allow for 

other types of U.S. vessels, including 

longline vessels, to fish on the high seas 

portions of the Treaty Area. It was never 

the intent of the parties to the Treaty to 

exclude U.S. longline vessels to areas 

open to all others fleets in the region. In 

1999, after an expressed interest on the 

part of the U.S. longline industry, the 

parties agreed to rectify the situation 

and to allow U.S. longline vessels access 

to the high seas portions of the Treaty 

Area. This exemption for U.S. longline 

vessels to fish in the high seas portion 

of the Treaty Area appears in the revised 

regulations at 50 CFR 300.39(a). 

Additional background information 

may be found in the preamble to the 

proposed rule (71 FR 45752, August 10, 

2006). 

Comments and Responses 

NMFS received two sets of comments 

on the proposed rule; summaries of 

those comments, and NMFS’ responses, 

follow (see the Classification section for 


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comments on the initial regulatory 

flexibility analysis (IRFA) and NMFS’

responses). 

Comment 1: There are many required 

reports involving fish tonnages by 

species and size. The crew makes 

estimates of these weights without the 

benefit of scales, so the estimates vary 

from actual weights. The proposed 

requirements in 50 CFR 300.34(a)-(c), 

which call for reported information to 

be true, complete, correct, accurate and 

timely, are a concern with respect to the 

expected accuracy of the reports. A 

literal interpretation of the language 

could place the vessels in an impossible 

position. 

Response: The reporting requirements 

in 50 CFR 300.34(a) and (b) of the rule, 

which state that reported information 

must be ‘‘true, complete and correct’’, 

are existing regulations; they will not be 

altered by this rulemaking. The contents 

of the required reports will not be 

modified, either (except in relatively 

minor ways that should have no effect 

in terms of the attainable accuracy of 

reported fish weights, such as changing 

the reporting units for fish weights from 

short tons to metric tons). The 

rulemaking will only add, in 50 CFR 

300.34(c), the terms ‘‘accurate’’ and 

‘‘timely’’ with respect to the required 

reports and notifications. NMFS 

believes that it is important, as well as 

reasonable, that reported information, 

including fish weights, be accurate. At 

the same time, NMFS does not interpret 

the term ‘‘accurate’’ to necessarily mean 

that measurements and reports thereof 

must be absolutely precise. 

Comment 2: The preamble to the 

proposed rule neglected to note the 

duration of the Third Extension of the 

Treaty, which is 10 years, until 2013. 

Response: That is correct; the 

duration of the Third Extension of the 

Treaty was not noted in the proposed 

rule. Its duration is 10 years, expiring 

June 14, 2013. 

Comment 3: The preamble to the 

proposed rule indicated that the contact 

numbers for the NMFS American Samoa 

field station include a ‘‘country code 

684’’, but the office is actually dialed 

from within the United States as a 

domestic number. 

Response: That is correct—the 

preamble to the proposed rule included 

incorrect contact numbers for the NMFS 

field station in American Samoa. 

American Samoa uses the telephone 

country code for the United States, 

which is 1. The correct contact numbers 

for the office are: telephone: 684–633–

5598; facsimile: 684–633–1400. 

Comment 4: I do not believe in 

longline fishing; it is dangerous for 

oceans, depletes the supply, makes the 

balance of marine life suffer, and results 

in other fish and birds getting caught 

and suffering and dying; please do away 

with this longline fishing. 

Response: The comment is 

acknowledged, but it addresses an issue 

that is beyond the scope of this rule, the 

purpose of which is to fulfill the 

obligations of the United States under 

an international agreement, the Third 

Extension of the Treaty. 

Changes to the Proposed Rule 

Three changes have been made to the 

proposed rule: (1) The statement ‘‘The 

initial list of approved hardware and 

software will appear in the final rule for 

this action’’ has been removed from 

paragraph (d) of proposed 50 CFR 

300.45. The referenced list is provided 

in this preamble to the final rule. (2) 

Corrections have been made to the 

numbering of the paragraphs referred to 

in 50 CFR 300.38. (3) An entry has been 

added in the table in 15 CFR 902.1(b), 

of control numbers issued by the Office 

of Management and Budget (OMB), 

which identifies the location of NOAA 

regulations for which OMB control 

numbers have been issued under the 

Paperwork Reduction Act (PRA) for 

collections of information. The 

additional entry identifies that the new 

50 CFR 300.45, on VMS requirements, 

contains collection-of-information 

requirements and that the associated 

OMB control number is 0648–0218. 

Delegation of Authority 

Under NOAA Administrative Order 

205–11, dated December 17, 1990, the 

under Secretary for Oceans and 

Atmosphere has delegated authority to 

sign material for publication in the 

Federal Register to the Assistant 

Administrator for Fisheries, NOAA. 

Classification 

This final rule has been determined to 

be not significant for purposes of 

Executive Order 12866. 

A final regulatory flexibility analysis 

(FRFA) was prepared. The FRFA 

incorporates the IRFA (which was 

summarized in the proposed rule), a 

summary of the significant issues raised 

by the public comments in response to 

the IRFA and NMFS’ responses to those 

comments, and a summary of the 

analyses completed to support the 

action. A copy of the FRFA is available 

from NMFS (see ADDRESSES). A 

summary of the FRFA follows. 

Need for, and Objectives of, the Rule 

A description of the need for, and 

objectives of, this final rule is contained 

at the beginning of this section in the 

preamble and in the SUMMARY section of 

the preamble. 

Summary of the Significant Issues 

Raised by the Public Comments in 

Response to the IRFA 

NMFS received one comment on the 

IRFA (as summarized in the proposed 

rule) and one comment not specifically 

on the IRFA but on an issue with 

possible economic implications. Those 

comments, and NMFS’ responses, 

follow. 

Comment 1: The owners of vessels 

licensed under the Treaty now pay 

$2,235 per year for the new combined 

VMS and vessel registration fee. Should 

that be indicated in the rule? 

Response: The FFA has consolidated 

what were previously called the ‘‘FFA 

VMS Register of Foreign Fishing 

Vessels’’ and the ‘‘FFA Regional 

Register of Foreign Fishing Vessels’’ into 

a single ‘‘FFA Vessel Register.’’ There is 

a single annual fee for applying for 

inclusion on the FFA Vessel Register; 

the fee has been formulated as the sum 

of two components (one of which is the 

VMS-related component) that 

correspond to the two former registers. 

The IRFA summary in the preamble to 

the proposed rule included an estimate 

of only the additional cost that would be 

imposed under the rule; that is, the 

VMS-related part of the fee ($1,375 per 

vessel per year). The remainder of the 

payment referred to by the commenter 

(which is actually $2,253, not $2,235) is 

not related to, and will not be affected 

by, this final rule. 

Comment 2: There are many required 

reports involving fish tonnages by 

species and size. The crew makes 

estimates of these weights without the 

benefit of scales, so the estimates vary 

from actual weights. The proposed 

requirements in 50 CFR 300.34(a)–(c), 

which call for reported information to 

be true, complete, correct, accurate and 

timely, are a concern with respect to the 

expected accuracy of the reports. A 

literal interpretation of the language 

could place the vessels in an impossible 

position. 

Response: The reporting requirements 

in 50 CFR 300.34(a) and (b) of the rule, 

which state that reported information 

must be ‘‘true, complete and correct’’, 

are existing regulations; they will not be 

altered by this rule. The contents of the 

required reports will not be modified, 

either (except in relatively minor ways 

that should have no effect in terms of 

the attainable accuracy of reported fish 

weights, such as changing the reporting 

units for fish weights from short tons to 

metric tons). The rule will only add, in 

50 CFR 300.34(c), the terms ‘‘accurate’’

and ‘‘timely’’ with respect to the 


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Federal Register / Vol. 72, No. 27 / Friday, February 9, 2007 / Rules and Regulations 6147 

required reports and notifications. 

NMFS believes that it is important, as 

well as reasonable, that reported 

information, including fish weights, be 

accurate. At the same time, NMFS does 

not interpret the term ‘‘accurate’’ to 

necessarily mean that measurements 

and reports thereof must be absolutely 

precise. 

NMFS finds that neither of the issues 

raised in these public comments gives 

reason to make any changes to the rule. 

The first issue, regarding the VMSrelated registration costs, is one merely 

of clarifying the information presented 

in the IRFA. The second issue, regarding 

the potential difficulty in vessel 

operators providing accurate and timely 

information, is not a new issue created 

by this rule, and in any case NMFS has 

not identified any alternative that would 

provide the needed information with a 

lesser burden on small entities. NMFS 

has not made any changes to the rule as 

a result of these public comments. 

Description and an Estimate of the 

Number of Small Entities to Which the 

Rule Will Apply 

Three of the measures in this final 

rule, the modified vessel reporting 

requirements, the VMS requirements, 

and the modified Closed and Limited 

Areas, will apply to owners and 

operators of U.S. purse seine vessels 

that operate in the Treaty Area. The 

measure to allow longline vessels access 

to the high seas portion of the Treaty 

Area will apply to owners and operators 

of U.S. longline vessels operating in the 

Pacific Ocean. Based on the number of 

U.S. purse seine vessels licensed under 

the Treaty and the number of U.S. 

longline vessels permitted to operate in 

the Pacific Ocean under the MagnusonStevens Fishery Conservation and 

Management Act and/or the High Seas 

Fishing Compliance Act as of June 2006, 

NMFS estimates that 12 purse seine 

vessels and approximately 183 longline 

vessels will be subject to the rule. These 

purse seine and longline vessels are 

owned by approximately 9 and 183 

business entities, respectively. Based on 

(limited) financial information about 

these fishing fleets, NMFS believes that 

as many as 7 and 183 of the affected 

purse seine and longline business 

entities, respectively, are small business 

entities (i.e., they have gross annual 

revenues of less than $4.0 million). 

Description of the Projected Reporting, 

Recordkeeping, and Other Compliance 

Requirements of the Rule 

The reporting, recordkeeping, and 

other compliance requirements of this 

final rule are described in the 

SUPPLEMENTARY INFORMATION section of 

this preamble. The classes of small 

entities subject to the requirements and 

the types of professional skills necessary 

to fulfill the requirements are as follows: 

(1) Vessel reporting requirements: 

Approximately seven small business 

entities will be subject to these 

requirements. The cost of compliance 

will be minor: because the changes have 

to do only with units of measure, the 

timing of reports, and the reporting of 

one additional piece of information 

(whether or not an observer is on board), 

they will require only minor 

modifications in habit on the part of the 

vessel operators. Fulfillment of these 

reporting requirements is not expected 

to require any professional skills that 

the vessel owners and operators do not 

already possess. 

(2) Fishing area modifications: 

Approximately seven small business 

entities will be subject to these 

requirements. These modifications will 

not impose any new reporting or 

recordkeeping requirements (within the 

meaning of the PRA) on purse seine 

vessel owners or operators, but they 

could affect the economic performance 

of such vessels. It is not known whether 

the density of exploitable stocks in the 

affected areas is greater or less than in 

the fleet’s fishing grounds generally. 

Because the target stocks are a highly 

fluid resource in this region, with high 

turnover rates and significant 

movements of fish through the region, 

any such differences are likely to be 

small. The measure is therefore not 

expected to have a strong direct effect 

on catch rates or resulting economic 

returns. However, the modifications will 

affect the operational flexibility of U.S. 

purse seine vessels, and such effects 

could in turn bring economic impacts. 

Vessels will have greater operational 

flexibility through enhanced access to 

the Solomon Islands EEZ but less 

flexibility from reduced access to the 

waters around Papua New Guinea. It is 

not possible to predict whether the 

expected positive impacts to small 

entities from the former effect will be 

less than or greater than the expected 

negative impacts from the latter effect. 

This is due to a lack of information 

about the extent and value of the 

operational flexibility afforded by each 

of the two affected areas, as well as the 

general difficulty in predicting the 

behavior of vessels that operate in 

response to many biophysical and 

economic factors and conditions, many 

of which change markedly from year to 

year. The impact, while difficult to 

predict, is not expected to differ by 

entity class (i.e. by small versus large 

entity). Fulfillment of these 

requirements is not expected to require 

any professional skills that the vessel 

owners and operators do not already 

possess. 

(3) VMS requirements: Approximately 

seven small business entities will be 

subject to these requirements. The 

expected annual cost of complying with 

the VMS requirements is no more than 

about $4,000 per vessel (including 

annualized costs of $1,000-$2,000 for 

the purchase of VMS units and 

approximately $200 for the installation 

and activation of VMS units, which 

might have to be replaced as often as 

once every four years; $1,375 for the 

VMS portion of the annual FFA Vessel 

Register registration fee; and 

approximately $500 for maintenance 

and routine operation). This represents 

about one-tenth of one percent of the 

total costs of production for a typical 

purse seine vessel, and perhaps as much 

as two-tenths of one percent of the total 

costs of production for the smallest 

affected small business entity. 

Fulfillment of these VMS requirements 

is not expected to require any 

professional skills that the vessel 

owners and operators do not already 

possess. 

(4) Longline high seas access: 

Approximately 183 small business 

entities will be subject to this measure. 

Opening the high seas areas of the 

Treaty Area to U.S. longline vessels will 

not impose any additional reporting, 

recordkeeping, or other compliance 

requirements. Since the measure will 

expand the fishing area available to U.S. 

longline vessels, increasing their 

operational flexibility, it is expected to 

have positive or neutral impacts on 

affected small entities. 

The measures that will apply to the 

purse seine entities (particularly the 

VMS requirements) will impose the 

same cost burden on small entities as 

they will on large entities, so the cost as 

a proportion of gross revenues will 

generally be greater for small entities 

than for large entities. The same is true 

within the group of affected small 

entities: the smaller the business, the 

greater the burden is likely to be relative 

to gross revenues, assuming that profit 

margins are similar among firms. 

However, there is not a great difference 

in size (e.g. in terms of gross revenues) 

between the affected small and large 

entities or among the small entities, so 

the differences in the relative burdens 

by entity size are expected to be minor. 

No disproportionate burdens among 

affected entities according to other 

characteristics, such as homeport or area 

fished, are expected. 

The measure that will apply to the 

longline entities (all of which are small 

entities) will not impose any costs on 


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any entities, so no disproportionate 

adverse impacts according to entity size 

will occur. The measure will have 

positive, if any, impacts on affected 

entities, but since larger vessels tend to 

have greater operating ranges, they are 

more likely than smaller vessels to be 

able to take advantage of the availability 

of new fishing grounds and enjoy the 

benefits of the measure. A similar 

difference in the likelihood of 

benefitting from the measure might also 

exist according to where a vessel is 

based (e.g. American Samoa versus 

Hawaii), but the difference is not 

possible to predict. 

Steps Taken To Minimize the 

Significant Economic Impact on Small 

Entities 

NMFS considered several alternatives 

to this final rule. As a party to the 

Treaty, the U.S. has committed itself to 

implementation of the Treaty 

amendments. Consequently, NMFS has 

limited discretion with regard to 

implementation of the SPTA. One 

alternative NMFS considered is to take 

no action. However, NMFS rejected this 

alternative because it would not achieve 

the objectives of the SPTA, which are to 

implement the terms of the Treaty. 

NMFS also considered several 

alternatives to the VMS requirements. 

One is to encourage voluntary 

compliance with the VMS measures 

rather than issuing a rule that would 

make them mandatory. To the extent 

that voluntary compliance is achieved, 

the costs to small entities would be the 

same as under the preferred alternative. 

Because relying on voluntary 

compliance would make it difficult to 

ensure that the VMS requirements of the 

Treaty are met, NMFS rejected this 

alternative. Two other non-regulatory 

alternatives, which would require 

agreement by the parties to the Treaty, 

are to obtain the desired compliance 

and monitoring benefits via enhanced 

vessel observer coverage or enhanced 

aerial and surface surveillance activities 

rather than via a VMS. These 

alternatives could achieve the objectives 

of the SPTA at potentially lesser cost to 

small entities. However, the projected 

costs to the public of enhancing vessel 

observer coverage or aerial and surface 

surveillance to the extent needed to 

achieve the compliance and monitoring 

benefits offered by a VMS are 

significantly greater than the expected 

total costs of the VMS alternative. 

Because the cost of a VMS is 

significantly less than the costs of 

enhanced observer coverage or 

enhanced aerial and surface monitoring, 

NMFS rejected the alternatives of 

enhanced observer coverage and 

enhanced aerial and surface monitoring, 

and selected the VMS alternative for 

adoption in this final rule. 

Small Entity Compliance Guide 

Section 212 of the Small Business 

Regulatory Enforcement Fairness Act of 

1996 states that for each rule or group 

of related rules for which an agency is 

required to prepare a FRFA, the agency 

shall publish one or more guides to 

assist small entities in complying with 

the rule, and shall designate such 

publications as ‘‘small entity 

compliance guides.’’ The agency shall 

explain the actions a small entity is 

required to take to comply with a rule 

or group of rules. Copies of the small 

entity compliance guide for this final 

rule are available from NMFS (see 

ADDRESSES). 

This final rule contains VMS and 

vessel reporting collection-ofinformation requirements subject to the 

Paperwork Reduction Act (PRA) which 

have been approved by OMB under 

control number 0648–0218. The public 

reporting burden for the modified vessel 

reporting requirements is estimated to 

average 1 hour per catch report, with 

about five catch reports per year per 

respondent, and about 30 minutes per 

unloading logsheet, with about six 

unloading logsheets per year per 

respondent. The public reporting 

burden for the VMS requirements is 

estimated to average 30 minutes per 

year per respondent for what was 

formerly called the FFA Regional 

Register of Foreign Fishing Vessels 

application form, 15 minutes per year 

per respondent for what was formerly 

called the FFA VMS Register of Foreign 

Fishing Vessels application form, and 2 

hours per year per respondent for VMS 

unit maintenance. As explained 

previously, the FFA consolidated the 

two previously-used vessel registers into 

a single ‘‘FFA Vessel Register’’ on about 

September 1, 2005, and there is now a 

single application form for the register. 

This consolidation had no effect on the 

information collection requirement or 

the estimated public reporting burden. 

These estimated burdens include the 

time for reviewing instructions, 

searching existing data sources, 

gathering and maintaining the data 

needed, and completing and reviewing 

the collection of information. Send 

comments regarding these burden 

estimates or any other aspect of this data 

collection, including suggestions for 

reducing the burden, to NMFS (see 

ADDRESSES) and by e-mail to 

David_Rostker@omb.eop.gov, or fax to 

202–395–7285. 

Notwithstanding any other provision 

of the law, no person is required to 

respond to, and no person shall be 

subject to penalty for failure to comply 

with, a collection of information subject 

to the requirements of the PRA, unless 

that collection of information displays a 

currently valid OMB control number. 

Prior notice and opportunity for 

public comment are not required with 

respect to the revision to the table of 

OMB control numbers in 15 CFR 

902.1(b) because this action is a rule of 

agency organization, procedure or 

practice under 5 U.S.C. 553(b)(A). 

List of Subjects 

15 CFR Part 902 

Reporting and recordkeeping 

requirements. 

50 CFR Part 300 

Administrative practice and 

procedure, Fish, Fisheries, Fishing, 

Marine resources, Reporting and 

recordkeeping requirements, Treaties. 

Dated: February 5, 2007. 

John Oliver, 

Deputy Assistant Administrator for 

Operations, National Marine Fisheries 

Service. 

■ For the reasons set out in the 

preamble, 15 CFR chapter IX and 50 

CFR chapter III are amended to read as 

follows: 

15 CFR CHAPTER IX—NATIONAL 

OCEANIC AND ATMOSPHERIC 

ADMINISTRATION, DEPARTMENT OF 

COMMERCE 

PART 902—NOAA INFORMATION 

REQUIREMENTS UNDER THE 

PAPERWORK REDUCTION ACT: OMB 

CONTROL NUMBERS 

■ 1. The authority citation for part 902 

continues to read as follows: 

Authority: 44 U.S.C. 3501 et seq. 

■ 2. In § 902.1, the table in paragraph (b) 

is amended by adding a new entry, 

‘‘300.45’’, and its corresponding OMB 

control number, under the entry ‘‘50 

CFR’’, to read as follows: 

§ 902.1 OMB control numbers assigned 

pursuant to the Paperwork Reduction Act. 

* * * * * 

(b) * * * 


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CFR part or section where 

the information collection 

requirement is located 

Current OMB 

control No. (all 

numbers begin 

with 0648–) 

* * * * * 

50 CFR ................................. ........................

* * * * * 

300.45 ................................... ¥0218 

* * * * * 

50 CFR CHAPTER III—INTERNATIONAL 

FISHING AND RELATED ACTIVITIES 

PART 300—INTERNATIONAL 

FISHERIES REGULATIONS 

Subpart D—South Pacific Tuna 

Fisheries 

■ 3. The authority citation for 50 CFR 

part 300, subpart D continues to read as 

follows: 

Authority: 16 U.S.C. 973–973r. 

■ 4. In § 300.31, definitions for ‘‘FFA 

Vessel Register’’, ‘‘Pacific Islands Forum 

Fisheries Agency’’ or ‘‘FFA’’, ‘‘UTC’’, 

and ‘‘Vessel Monitoring System Unit’’ or 

‘‘VMS unit’’ are added, the definition for 

‘‘Limited Area(s)’’ is removed, and 

definitions for ‘‘Regional 

Administrator’’, ‘‘Applicable national 

law’’, ‘‘Closed Area’’, and ‘‘Treaty Area’’

are revised to read as follows: 

§ 300.31 Definitions. 

* * * * * 

Applicable national law means any of 

the laws of Pacific Island Parties in the 

following table and any regulations or 

other instruments having the force of 

law implemented pursuant to these 

laws: 

Pacific Island Party Laws 

AUSTRALIA Antarctic Marine Living Resources Conservation Act, 1981. 

Fisheries Management Act, 1991. 

Fisheries Administration Act, 1991. 

Statutory Fishing Rights Charge Act, 1991. 

Fisheries Legislation (Consequential Provisions) Act, 1991. 

Foreign Fishing Licences Levy Act, 1991. 

Fishing Levy Act, 1991. 

Fisheries Agreements (Payments) Act, 1991. 

Torres Strait Fisheries Act, 1984. 

Whale Protection Act, 1980. 

COOK ISLANDS Exclusive Economic Zone (Foreign Fishing Craft) Regulations, 1979. 

Territorial Sea and Exclusive Economic Zone Act, 1977. 

Marine Resources Act, 1989. 

FEDERATED STATES OF 

MICRONESIA 

Titles 18 and 24 of the Code of the Federated States of Micronesia, as amended by Public Law Nos. 2–28, 2–31, 

3–9, 3–10, 3–34, and 3–80. 

FIJI Fisheries Act (Cap. 158). 

Fisheries Regulations (Cap. 158). 

Marine Spaces Act (Cap. 158A). 

Marine Spaces (Foreign Fishing Vessels) Regulations, 1979. 

KIRIBATI Fisheries Ordinance, 1979. 

Fisheries (Amendment) Act, 1984. 

Marine Zones (Declaration) Act, 1983. 

Fisheries (Pacific Island States’ Treaty with the United States) Act 1988. 

MARSHALL ISLANDS Title 33, Marine Resources Act, as amended by P.L. 1989–56, P.L. 1991–43, and P.L. 1992–25 of the Marshall Islands Revised Code. 

NAURU Interpretation Act, 1971. 

Interpretation Act (Amendment) Act No. 1 1975. 

Interpretation Act (Amendment) Act No. 2 1975. 

Marine Resources Act, 1978. 

NEW ZEALAND Antarctic Marine Living Resources Act, 1981. 

Continental Shelf Act, 1964. 

Conservation Act, 1987. 

Driftnet Prohibition Act, 1991. 

Exclusive Economic Zone (Foreign Fishing Craft) Regulations, 1978. 

Fishing Industry Board Act, 1963. 

Fisheries Act, 1983. 

Marine Mammals Protection Act, 1978. 

Marine Reserves Act, 1971. 

Marine Pollution Act, 1974. 

Meat Act, 1964. 

Territorial Sea and Exclusive Economic Zone Act, 1977. 

Tokelau (Territorial Sea and Exclusive Economic Zone) Act, 1977. 

Submarine Cables and Pipelines Protection Act, 1966. 

Sugar Loaf Islands Marine Protected Area Act, 1991. 

Wildlife Act, 1953. 

NIUE Niue Fish Protection Ordinance 1965. 

Sunday Fishing Prohibition Act 1980. 

Territorial Sea and Exclusive Economic Zone Act 1978. 

PALAU Palau National Code, Title 27. 

PAPUA NEW GUINEA Fisheries Act (Cap 214). 

Fisheries Regulations (Cap 214). 

Fisheries (Torres Strait Protected Zone) Act, 1984. 

National Seas Act (Cap 361). 

Tuna Resources Management Act (Cap 224). 

Whaling Act (Cap 225). 


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Pacific Island Party Laws 

SOLOMON ISLANDS Delimitation of Marine Waters Act, 1978. 

Fisheries Act, 1972. 

Fisheries Limits Act, 1977. 

Fisheries Regulations, 1972. 

Fisheries (Foreign Fishing Vessels) Regulations, 1981. 

Fisheries (United States of America) (Treaty) Act 1988. 

TONGA Fisheries Act, 1989. 

TUVALU Fisheries Act (Cap 45). 

Fisheries (Foreign Fishing Vessel) Regulations, 1982. 

Marine Zones (Declaration) Act, 1983. 

Foreign Fishing Vessels Licensing (US Treaty) Order 1987. 

VANUATU Fisheries Act 1982 (Cap 158). 

Fisheries Regulations, 1983. 

Maritime Zones Act 1981 (Cap 138). 

SAMOA Exclusive Economic Zone Act, 1977. 

Territorial Sea Act, 1971. 

Fisheries Act, 1988. 

* * * * * 

Closed area means any of the areas in 

the following table, as depicted on 

charts provided by the Regional 

Administrator and as further described 

in additional information that may be 

provided by the Regional Administrator: 

Pacific Island Party Area 

AUSTRALIA All waters within the seaward boundary of the Australian Fishing Zone (AFZ) west of a line connecting the point of 

intersection of the outer limit of the AFZ by the parallel of latitude 25° 30′ South with the point of intersection of 

the meridian of longitude 151° East by the outer limit of the AFZ and all waters south of the parallel of latitude 

25° 30′ South. 

COOK ISLANDS Territorial Sea. 

FEDERATED STATES OF 

MICRONESIA 

Three nautical mile territorial sea and nine nautical mile exclusive fishery zone and on all named banks and reefs 

as depicted on the following charts: 

DMAHTC NO 81019 (2nd. ed., Mar. 1945; revised 7/17/72; corrected through NM 3/78 of 21 June 1978). 

DMAHTC NO 81023 (3rd. ed., 7 Aug. 1976). 

DMAHTC NO 81002 (4th. ed., 26 Jan. 1980; corrected through NM 4/80). 

FIJI Internal waters, archipelagic waters and territorial seas of Fiji and Rotuma and its Dependencies. 

KIRIBATI Within archipelagic waters as established in accordance with Marine Zones (Declaration) Act 1983; within 12 nautical miles drawn from the baselines from which the territorial seas is measured; and within 2 nautical miles of 

any anchored fish aggregating device within the Kiribati exclusive economic zone for which notification of its location shall be given by geographical coordinates. 

MARSHALL ISLANDS 12 nautical mile territorial sea and area within two nautical miles of any anchored fish aggregating device within 

the Marshall Islands exclusive economic zone for which notification of its location shall be given by geographical 

coordinates. 

NAURU The territorial waters as defined by Nauru Interpretation Act, 1971, Section 2. 

NEW ZEALAND Territorial waters; waters within 6 nautical miles of outer boundary of territorial waters; all waters to west of New 

Zealand main islands and south of 39° South latitude; all waters to east of New Zealand main islands south of 

40° South latitude; and in respect of Tokelau: areas within 12 nautical miles of all island and reef baselines; 

twelve and one half nautical miles either side of a line joining Atafu and Nukunonu and Faka’ofo; and coordinates as follows: 

Atafu: 8°35′10′′ S, 172°29′30′′ W 

Nukunonu: 9°06′25′′ S, 171°52′10′′ W 9°11′30′′ S, 171°47′00′′ W 

Faka’ofo: 9°22′30′′ S, 171°16′30′′ W 

NIUE Territorial sea and within 3 nautical miles of Beveridge Reef, Antiope Reef and Haran Reef as depicted by appropriate symbols on NZ 225F (chart showing the territorial sea and exclusive economic zone of Niue pursuant to 

the Niue Territorial Sea and Exclusive Economic Zone Act of 1978). 

PALAU Within 12 nautical miles of all island baselines in the Palau Islands; and the area: 

commencing at the north-easternmost intersection of the outer limit of the 12 nautical mile territorial sea of Palau 

by the arc of a circle having a radius of 50 nautical miles and its center at Latitude 07°16′34′′ North, longitude 

134°28′25′′ East, being at about the center of the reef entrance to Malakal Pass; running thence generally 

south-easterly, southerly, south-westerly, westerly, north-westerly, northerly and north-easterly along that arc to 

its intersection by the outer limit of the 12 nautical mile territorial sea; and thence generally northerly, north-easterly, easterly, south-easterly and southerly along that outer limit to the point of commencement. 

Where for the purpose of these specifications it is necessary to determine the position on the surface of the Earth 

of a point, line or area, it shall be determined by reference to the World Geodetic System 1984; that is to say, 

by reference to a spheroid having its center at the center of the Earth and a major (equatorial) radius of 

6,378,137 meters and a flattening of 1/298.2572. 

PAPUA NEW GUINEA All territorial seas, archipelagic and internal waters. 

SOLOMON ISLANDS All internal waters, territorial seas and archipelagic waters; and such additional waters around the main group archipelago, as defined under the Delimitation of Marine Waters Act 1978, not exceeding sixty nautical miles. 

TONGA All waters with depths of not more than 1,000 meters, within the area bounded by the fifteenth and twenty third 

and one half degrees of south latitudes and the one hundred and seventy third and the one hundred and seventy seventh degrees of west longitudes; also within a radius of twelve nautical miles from the islands of Teleki 

Tonga and Teleki Tokelau. 


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Pacific Island Party Area 

TUVALU Territorial sea and waters within two nautical miles of all named banks, that is Macaw, Kosciusko, Rose, 

Bayonnaise and Hera, in Tuvalu exclusive economic zone, as depicted on the chart entitled ‘‘Tuvalu Fishery 

Limits’’ prepared by the United Kingdom Hydrographic Department, Taunton, January 11, 1981. 

VANUATU Archipelagic waters and the territorial sea, and internal waters. 

SAMOA Territorial sea; reefs, banks and sea-mounts and within 2 nautical miles of any anchored fish aggregating device 

within the Samoa exclusive economic zone for which notification of its location shall be given by geographical 

coordinates. 

* * * * * 

FFA Vessel Register means the 

registry of fishing vessels maintained by 

the FFA, comprising those vessels 

which are in good standing and licensed 

to fish in the waters of FFA member 

countries, including those vessels 

licensed under § 300.32. 

* * * * * 

Pacific Islands Forum Fisheries 

Agency or FFA means the organization 

established by the 1979 South Pacific 

Forum Fisheries Agency Convention. 

Regional Administrator means the 

Regional Administrator, Pacific Islands 

Region, NMFS, 1601 Kapiolani Blvd., 

Suite 1110, Honolulu, HI 96814, or a 

designee. 

* * * * * 

Treaty Area means all waters north of 

60° S. lat. and east of 90° E. long., 

subject to the fisheries jurisdiction of 

Pacific Island Parties, and all other 

waters within rhumb lines connecting 

the following points, except for waters 

subject to the jurisdiction in accordance 

with international law of a State which 

is not a party to the Treaty: 

Point Latitude Longitude 

A 2°35′39′′ S 141°00′00′′ E 

B 1°01′35′′ N 140°48′35′′ E 

C 1°01′35′′ N 129°30′00′′ E 

D 10°00′00′′ N 129°30′00′′ E 

E 14°00′00′′ N 140°00′00′′ E 

F 14°00′00′′ N 142°00′00′′ E 

G 12°30′00′′ N 142°00′00′′ E 

H 12°30′00′′ N 158°00′00′′ E 

I 15°00′00′′ N 158°00′00′′ E 

J 15°00′00′′ N 165°00′00′′ E 

K 18°00′00′′ N 165°00′00′′ E 

L 18°00′00′′ N 174°00′00′′ E 

M 12°00′00′′ N 174°00′00′′ E 

N 12°00′00′′ N 176°00′00′′ E 

O 5°00′00′′ N 176°00′00′′ E 

P 1°00′00′′ N 180°00′00′′ 

Q 1°00′00′′ N 164°00′00′′ W 

R 8°00′00′′ N 164°00′00′′ W 

S 8°00′00′′ N 158°00′00′′ W 

T 0°00′00′′ 150°00′00′′ W 

U 6°00′00′′ S 150°00′00′′ W 

V 6°00′00′′ S 146°00′00′′ W 

W 12°00′00′′ S 146°00′00′′ W 

X 26°00′00′′ S 157°00′00′′ W 

Y 26°00′00′′S 174°00′00′′ W 

Z 40°00′00′′S 174°00′00′′ W 

AA 40°00′00′′ S 171°00′00′′ W 

AB 46°00′00′′ S 171°00′00′′ W 

AC 55°00′00′′ S 180°00′00′′ 

AD 59°00′00′′ S 160°00′00′′ E 

Point Latitude Longitude 

AE 59°00′00′′ S 152°00′00′′ E and 

north along the 

152 degrees of 

East longitude 

until intersecting the 

Australian 200- 

nautical-mile 

limit. 

UTC means Universal Coordinated 

Time. 

Vessel Monitoring System Unit or 

VMS unit means Administratorapproved VMS unit hardware and 

software installed on a vessel and 

required under § 300.45 as a component 

of the regional VMS administered by the 

FFA to transmit information between 

the vessel and the Administrator and/or 

other reporting points designated by 

NMFS. 

■ 5. In § 300.32, paragraph (d) is revised 

to read as follows: 

§ 300.32 Vessel licenses. 

* * * * * 

(d) The number of available licenses 

is 45, five of which shall only be 

available to fishing vessels of the United 

States engaged in joint venture 

arrangements, specifically: Vessels 

engaged in fishing activity designed to 

promote maximization of the benefits 

generated for the Pacific Island Parties 

from the operations of fishing vessels 

licensed pursuant to the Treaty, as 

determined by the Administrator. Such 

activity can include the use of canning, 

transshipment, vessel slipping and 

repair facilities located in the Pacific 

Island Parties; the purchase of 

equipment and supplies, including fuel 

supplies, from suppliers located in the 

Pacific Island Parties; and the 

employment of nationals of the Pacific 

Island Parties on board such vessels. 

* * * * * 

■ 6. Section 300.34 is revised to read as 

follows: 

§ 300.34 Reporting requirements. 

(a) Holders of licenses issued under 

§ 300.32 shall comply with the reporting 

requirements of this section with 

respect to the licensed vessels. 

(b) Any information required to be 

recorded, or to be notified, 

communicated or reported pursuant to a 

requirement of these regulations, the 

Act, or the Treaty shall be true, 

complete and correct. Any change in 

circumstances that has the effect of 

rendering any of the information 

provided false, incomplete or 

misleading shall be communicated 

immediately to the Regional 

Administrator. 

(c) The operator of any vessel licensed 

under § 300.32 must prepare and submit 

accurate, complete, and timely 

notifications, requests, and reports with 

respect to the licensed vessel, as 

described in paragraphs (c)(1) through 

(10) of this section. 

(1) Catch report forms. A record of 

catch, effort and other information must 

be maintained on board the vessel, on 

catch report forms (also known as 

‘‘Regional Purse Seine Logsheets’’, or 

RPLs) provided by the Regional 

Administrator. At the end of each day 

that the vessel is in the Licensing Area, 

all information specified on the form 

must, for that day, be recorded on the 

form. The completed catch report form 

must be mailed by registered airmail to 

the Administrator within 14 days of the 

vessel’s next entry into port for the 

purpose of unloading its fish catch. A 

copy of the completed catch report form 

must also be submitted to, and received 

by, the Regional Administrator within 2 

days of the vessel reaching port. 

(2) Unloading and transshipment 

logsheet forms. At the completion of any 

unloading or transshipment of fish from 

the vessel, all the information specified 

on unloading and transshipment 

logsheet forms provided by the Regional 

Administrator must, for that unloading 

or transshipment, be recorded on such 

forms. A separate form must be 

completed for each fish processing 

destination to which the unloaded or 

transshipped fish are bound. The 

completed unloading and transshipment 

logsheet form or forms must be mailed 

by registered airmail to the 

Administrator within 14 days of the 

completion of the unloading or 

transshipment. The submitted form 

must be accompanied by a report or 

reports of the size breakdown of the 


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catch as determined by the receiver or 

receivers of the fish, and such report 

must be signed by the receiver or 

receivers. A copy of the completed 

unloading and transshipment logsheet, 

including a copy of the accompanying 

report or reports of the size breakdown 

of the catch as determined by the 

receiver or receivers of the fish, must 

also be submitted to, and received by, 

the Regional Administrator within 2 

days of the completion of the unloading 

or transshipment. 

(3) Port departure reports. Before the 

vessel’s departure from port for the 

purpose of beginning a fishing trip in 

the Licensing Area, a report must be 

submitted to the Administrator by telex, 

transmission via VMS unit, facsimile, or 

e-mail that includes the following 

information: Report type (‘‘LBEG’’); 

Regional Register number; trip begin 

date; date and time (in UTC) of report; 

IRCS; port name; weight of catch on 

board (in metric tons) for each of 

skipjack tuna, yellowfin tuna, and all 

other species combined; intended 

action; and estimated date of departure. 

This information must be reported in 

the format provided by the Regional 

Administrator. 

(4) Entry into port for unloading 

reports. At least 24 hours before the 

vessel’s entry into port for the purpose 

of unloading fish from any trip 

involving fishing within the Licensing 

Area, a report must be submitted to the 

Administrator by telex, transmission via 

VMS unit, facsimile, or e-mail that 

includes the following information: 

Report type (‘‘LFIN’’); FFA Regional 

Register number; trip begin date; date 

and time (in UTC) of report; IRCS; port 

name; weight of catch on board (in 

metric tons) for each of skipjack tuna, 

yellowfin tuna, and all other species 

combined; intended action; and 

estimated date and time (in UTC) of 

entry into port. This information must 

be reported in the format provided by 

the Regional Administrator. 

(5) Intent to transship notification and 

request. At least 48 hours before 

transshipping any or all of the fish on 

board the vessel, a notification must be 

submitted to the Administrator and a 

request must be submitted to the Pacific 

Island Party in whose jurisdiction the 

transshipment is requested to occur. 

The notification to the Administrator 

and the request to the Pacific Island 

Party may be identical. The notification 

and request must include the following 

information: Name of vessel; IRCS; 

vessel position (latitude and longitude 

to nearest minute of arc); weight of 

catch on board the vessel (in metric 

tons) for each of skipjack tuna, 

yellowfin tuna, and all other species 

combined; and the date, time (in UTC), 

and location where such transshipment 

is requested to occur. The notification to 

the Administrator must be reported in 

the format provided by the Regional 

Administrator and submitted by telex, 

transmission by VMS unit, facsimile, or 

e-mail. The request to the Pacific Island 

Party must be reported in the format 

provided by the Regional Administrator 

and sent via the means and to the 

address provided by the Regional 

Administrator. 

(6) Zone entry and exit reports. Each 

time the vessel enters or exits the waters 

under the jurisdiction of a Pacific Island 

Party, a report must be submitted to that 

Pacific Island Party that includes the 

following information: Report type 

(‘‘ZENT’’ for entry or ‘‘ZEXT’’ for exit); 

FFA Regional Register number; trip 

begin date; date and time (in UTC) of 

the entry or exit; IRCS; vessel position 

(latitude and longitude to nearest 

minute of arc); weight of catch on board 

(in metric tons) for each of skipjack 

tuna, yellowfin tuna, and all other 

species combined; and intended action. 

This information must be reported in 

the format provided by the Regional 

Administrator and sent via the means 

and to the address provided by the 

Regional Administrator. 

(7) Weekly reports. Each Wednesday 

while the vessel is within the waters 

under the jurisdiction of a Pacific Island 

Party, a report must be submitted to that 

Pacific Island Party that includes the 

following information: Report type 

(‘‘WEEK’’); FFA Regional Register 

number; trip begin date; date and time 

(in UTC) of report; IRCS; vessel position 

(latitude and longitude to nearest 

minute of arc); weight of catch on board 

(in metric tons) for each of skipjack 

tuna, yellowfin tuna, and all other 

species combined; intended action; and 

whether or not there is a vessel observer 

on board (‘‘Y’’ or ‘‘N’’). This information 

must be reported in the format provided 

by the Regional Administrator and sent 

via the means and to the address 

provided by the Regional Administrator. 

(8) Port entry reports. At least 24 

hours before the vessel’s entry into port 

of any Pacific Island Party, a report must 

be submitted to that Pacific Island Party 

that includes the following information: 

Report type (‘‘PENT’’); FFA Regional 

Register number; trip begin date; date 

and time (in UTC) of report; IRCS; 

vessel position (latitude and longitude 

to nearest minute of arc); weight of 

catch on board (in metric tons) for each 

of skipjack tuna, yellowfin tuna, and all 

other species combined; estimated time 

(in UTC) of entry into port; port name; 

and intended action. This information 

must be reported in the format provided 

by the Regional Administrator and sent 

via the means and to the address 

provided by the Regional Administrator. 

(9) Transshipment reports. Upon 

completion of transshipment of any or 

all of the fish on board the vessel, a 

report must be submitted to the 

Administrator and to the Pacific Island 

Party in whose jurisdiction the 

transshipment occurred. The report 

must include the following information: 

Report type (‘‘TRANS’’); FFA Regional 

Register number; trip begin date; date 

and time (in UTC) of the transshipment; 

IRCS; vessel position at time of 

transshipment (latitude and longitude to 

nearest minute of arc); amount of fish 

transshipped (in metric tons) for each of 

skipjack tuna, yellowfin tuna, and all 

other species combined; name of vessel 

to which the fish were transshipped; 

and the destination of the transshipped 

fish. The report to the Administrator 

must be reported in the format provided 

by the Regional Administrator and 

submitted by telex, transmission by 

VMS unit, facsimile, or e-mail. The 

report to the Pacific Island Party must 

be reported in the format provided by 

the Regional Administrator and sent via 

the means and to the address provided 

by the Regional Administrator. 

(10) Other reports and notifications to 

Pacific Island Parties. Reports and 

notifications must be submitted to the 

relevant Pacific Island Parties in each of 

the circumstances and in the manner 

described in the subparagraphs of this 

paragraph. Unless otherwise indicated 

in this paragraph, the reports must be 

prepared in the format provided by the 

Regional Administrator and sent via the 

means and to the address provided by 

the Regional Administrator. 

(i) Australia. 

(A) Each day while the vessel is 

within the Australian Fishing Zone, a 

report must be submitted that includes 

the following information: Vessel 

position (latitude and longitude to 

nearest minute of arc); and the amount 

of catch made during the previous day, 

by species. 

(B) At least 24 hours before entering 

the Australian Fishing Zone, a 

notification must be submitted that 

indicates an intent to enter the 

Australian Fishing Zone. 

(ii) Fiji. 

(A) Each day while the vessel is in Fiji 

fisheries waters, a report must be 

submitted that includes the following 

information: vessel name; IRCS; country 

of registration of the vessel; and vessel 

position at the time of the report 

(latitude and longitude to nearest 

minute of arc). 

(B) Each week while the vessel is in 

Fiji fisheries waters, a report must be 


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Federal Register / Vol. 72, No. 27 / Friday, February 9, 2007 / Rules and Regulations 6153 

submitted that includes the amount of 

the catch made during the preceding 

week, by species. 

(iii) Kiribati. 

(A) At least 24 hours before entering 

a Closed Area under the jurisdiction of 

Kiribati, a notification must be 

submitted that includes the following 

information: vessel name; IRCS; vessel 

position at the time of the report 

(latitude and longitude to nearest 

minute of arc); the reason for entering 

the Closed Area; and the estimated time 

(in UTC) of entry into the Closed Area 

(latitude and longitude to nearest 

minute of arc). 

(B) Immediately upon entry into or 

exit from a Closed Area under the 

jurisdiction of Kiribati, a report must be 

submitted that includes the following 

information: report type (‘‘CAENT’’ for 

entry or ‘‘CAEXT’’ for exit); the number 

of the vessel’s license issued under 

§ 300.32; IRCS; date and time (in UTC) 

of the report; vessel position (latitude 

and longitude to nearest minute of arc); 

amount of the catch on board the vessel, 

by species; and status of the boom (‘‘up’’

or ‘‘down’’), net (‘‘deployed’’ or 

‘‘stowed’’), and skiff (‘‘deployed’’ or 

‘‘stowed’’). 

(C) At least 24 hours prior to fueling 

the vessel from a tanker in the area of 

jurisdiction of Kiribati, a report must be 

submitted that includes the following 

information: report type (‘‘SBUNK’’); the 

number of the vessel’s license issued 

under § 300.32; IRCS; trip start date; 

name of port from which trip started; 

amount of the catch on board the vessel, 

by species; estimated time of bunkering; 

estimated position of bunkering 

(latitude and longitude to nearest 

minute of arc); and name of tanker. 

(D) After fueling the vessel from a 

tanker in the area of jurisdiction of 

Kiribati, but no later than 12 noon local 

time on the following day, a report must 

be submitted that includes the following 

information: report type (‘‘FBUNK’’); the 

number of the vessel’s license issued 

under § 300.32; IRCS; start time of 

bunkering; end time of bunkering; 

amount of fuel received, in kiloliters; 

and name of tanker. 

(iv) New Zealand. 

(A) At least 24 hours before entering 

the exclusive economic zone of New 

Zealand, a notification must be 

submitted that includes the following 

information: name of vessel; IRCS; 

position of point of entry into the 

exclusive economic zone of New 

Zealand (latitude and longitude to 

nearest minute of arc); amount of catch 

on board the vessel, by species; and 

condition of the catch on board the 

vessel (‘‘fresh’’ or ‘‘frozen’’). 

(B) For each day that the vessel is in 

the exclusive economic zone of New 

Zealand, a notification must be 

submitted no later than noon of the 

following day of the vessel’s position 

(latitude and longitude to nearest 

minute of arc) at noon. 

(C) For each week or portion thereof 

that the vessel is in the exclusive 

economic zone of New Zealand, a report 

that covers the period from 12:01 a.m. 

on Monday to 12 midnight on the 

following Sunday must be submitted 

and received by noon of the following 

Wednesday (local time). The report 

must include the amount of the catch 

taken in the exclusive economic zone of 

New Zealand during the reporting 

period. 

(D) At least 10 days prior to an 

intended transshipment in an area 

under the jurisdiction of New Zealand, 

a notification must be submitted that 

includes the intended port, date, and 

time of transshipment. 

(E) At least 24 hours prior to exiting 

the exclusive economic zone of New 

Zealand, a notification must be 

submitted that includes the following 

information: position of the intended 

point of exit (latitude and longitude to 

nearest minute of arc); the amount of 

catch on board the vessel, by species; 

and condition of the catch on board the 

vessel (‘‘fresh’’ or ‘‘frozen’’). 

(v) Solomon Islands. 

(A) At least 24 hours prior to entry 

into Solomon Islands Fisheries Limits, a 

report must be submitted that includes 

the following information: expected 

vessel position (latitude and longitude 

to nearest minute of arc) and expected 

date and time of entry. 

(B) For each week or portion thereof 

that the vessel is in the exclusive 

economic zone of Solomon Islands, a 

report that covers the period from 12:01 

a.m. on Monday to 12 midnight on the 

following Sunday must be submitted 

and received by noon of the following 

Tuesday (local time). The report must 

include the amount of the catch taken 

and the number of fishing days spent in 

the exclusive economic zone of 

Solomon Islands during the reporting 

period. 

(vi) Tonga. 

(A) Each day while the vessel is in the 

exclusive economic zone of Tonga, a 

report must be submitted that includes 

the vessel’s position (latitude and 

longitude to nearest minute of arc). 

(B) [Reserved] 

(vii) Tuvalu. 

(A) At least 24 hours prior to entering 

Tuvalu fishery limits, a report must be 

submitted that includes the following 

information: vessel name; IRCS; country 

of registration of the vessel; the number 

of the vessel’s license issued under 

§ 300.32; intended vessel position 

(latitude and longitude to nearest 

minute of arc) at entry; and amount of 

catch on board the vessel, by species. 

(B) Every seventh day that the vessel 

is in Tuvalu fishery limits, a report must 

be submitted that includes vessel 

position (latitude and longitude to 

nearest minute of arc) and the total 

amount of catch on board the vessel. 

(C) Immediately upon exit from 

Tuvalu fishery limits, a notification 

must be submitted that includes vessel 

position (latitude and longitude to 

nearest minute of arc) and the total 

amount of catch on board the vessel. 

■ 7. In § 300.38, paragraph (a)(4) is 

removed, paragraphs (a)(5) through 

(a)(11) are redesignated as paragraphs 

(a)(4) through (a)(10), redesignated 

paragraph (a)(10) is revised, and 

paragraphs (a)(11) through (a)(15) are 

added to read as follows: 

§ 300.38 Prohibitions. 

(a) * * * 

(10) To transship fish on board a 

vessel that fished in the Licensing Area, 

except in accordance with the 

requirements of § 300.46. 

(11) To fail to have installed, allow to 

be programmed, carry, or have 

operational a VMS unit while in the 

Treaty Area as specified in § 300.45(a). 

(12) To fail to activate a VMS unit, to 

interrupt, interfere with, or impede the 

operation of a VMS unit, to tamper with, 

alter, damage, or disable a VMS unit, or 

to move or remove a VMS unit without 

prior notification as specified in 

§ 300.45(e). 

(13) In the event of a VMS unit failure 

or breakdown or interruption of 

automatic position reporting in the 

Treaty Area, to fail to submit manual 

position reports as specified in 

§ 300.45(f). 

(14) In the event of a VMS unit failure 

or breakdown or interruption of 

automatic position reporting in the 

Treaty Area and if directed by the 

Administrator or an authorized officer, 

to fail to stow fishing gear or take the 

vessel to a designated port as specified 

in § 300.45(f). 

(15) To fail to repair or replace a VMS 

unit as specified in § 300.45(h). 

* * * * * 

■ 8. In § 300.39, paragraph (a) is revised 

to read as follows: 

§ 300.39 Exceptions. 

(a) The prohibitions of § 300.38 and 

the licensing requirements of § 300.32 

do not apply to fishing for albacore tuna 

by vessels using the trolling method or 

to fishing by vessels using the longline 


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6154 Federal Register / Vol. 72, No. 27 / Friday, February 9, 2007 / Rules and Regulations 

method in the high seas areas of the 

Treaty Area. 

* * * * * 

■ 9. In § 300.42, paragraphs (a)(1)(i) and 

(b) are revised to read as follows: 

§ 300.42 Findings leading to removal from 

fishing area. 

(a) * * * 

(1) * * * 

(i) While fishing in the Licensing Area 

did not have a license issued under 

§ 300.32 to fish in the Licensing Area, 

and that under the terms of the Treaty 

the fishing is not authorized to be 

conducted in the Licensing Area 

without such a license. 

* * * * * 

(b) Upon being advised by the 

Secretary of State that proper 

notification to Parties has been made by 

a Pacific Island Party that such Pacific 

Island Party is investigating an alleged 

infringement of the Treaty by a vessel in 

waters under the jurisdiction of that 

Pacific Island Party, the Secretary shall 

order the vessel to leave those waters 

until the Secretary of State notifies the 

Secretary that the order is no longer 

necessary. 

* * * * * 

■ 10. A new § 300.45 is added to read 

as follows: 

§ 300.45 Vessel Monitoring System. 

(a) Applicability. Holders of vessel 

licenses issued under § 300.32 are 

required, in order to have the licensed 

vessel in the Treaty Area, to: 

(1) Have installed a VMS unit on 

board the licensed vessel; 

(2) Allow the Administrator, its agent, 

or a person authorized by the 

Administrator to program the VMS unit 

to transmit position and related 

information to the Administrator; 

(3) If directed by the Regional 

Administrator, allow NMFS, its agent, 

or a person authorized by NMFS to 

program the VMS unit to transmit 

position and related information to 

NMFS; and 

(4) Carry and have operational the 

VMS unit at all times while in the 

Treaty Area, except as provided in 

paragraphs (f) and (g) of this section. 

(b) FFA Vessel Register. Purse seine 

vessels must be in good standing on the 

FFA Vessel Register maintained by the 

Administrator in order to be licensed 

under the Treaty. FFA Vessel Register 

application forms may be obtained from 

the Regional Administrator or the 

Administrator or from the FFA Web site: 

http://www.ffa.int. Purse seine vessel 

owners or operators must submit 

completed FFA Vessel Register 

applications to the Regional 

Administrator for transmittal to the 

Administrator and pay fees for 

registration of their vessel(s) on the FFA 

Vessel Register annually. The vessel 

owner or operator may submit a 

completed FFA Vessel Register 

application form at any time, but the 

application must be received by the 

Regional Administrator at least seven 

days before the first day of the next 

licensing period to avoid the potential 

lapse of the registration and license 

between licensing periods. 

(c) VMS unit installation. A VMS unit 

required under this section must be 

installed by a person authorized by the 

Administrator. A list of Administratorauthorized VMS unit installers may be 

obtained from the Regional 

Administrator or the Administrator. 

(d) Hardware and software 

specifications. The VMS unit installed 

and carried on board a vessel to comply 

with the requirements of this section 

must consist of hardware and software 

that is approved by the Administrator 

and able to perform all functions 

required by the Administrator. A 

current list of approved hardware and 

software may be obtained from the 

Administrator. 

(e) Service activation. Other than 

when in port or in a shipyard and 

having given proper notification to the 

Administrator as specified in paragraph 

(g) of this section, the owner or operator 

of a vessel licensed under § 300.32 

must, when the vessel is in the Treaty 

Area: 

(1) Activate the VMS unit on board 

the licensed vessel to transmit 

automatic position reports; 

(2) Ensure that no person interrupts, 

interferes with, or impedes the 

operation of the VMS unit or tampers 

with, alters, damages, or disables the 

VMS unit, or attempts any of the same; 

and 

(3) Ensure that no person moves or 

removes the VMS unit from the 

installed position without first notifying 

the Administrator by telephone, 

facsimile, or e-mail of such movement 

or removal. 

(f) Interruption of VMS unit signal. 

When a vessel owner or operator is 

notified by the Administrator or an 

authorized officer that automatic 

position reports are not being received, 

or the vessel owner or operator is 

otherwise alerted or aware that 

transmission of automatic position 

reports has been interrupted, the vessel 

owner and operator must comply with 

the following: 

(1) The vessel owner or operator must 

submit manual position reports that 

include vessel name, call sign, current 

position (latitude and longitude to the 

nearest minute), date, and time to the 

Administrator by telephone, facsimile, 

or e-mail at intervals of no greater than 

eight hours or a shorter interval if and 

as specified by the Administrator or an 

authorized officer. The reports must 

continue to be submitted until the 

Administrator has confirmed to the 

vessel owner or operator that the VMS 

unit is properly transmitting position 

reports. If the manual position reports 

cannot be made, the vessel operator or 

owner must notify the Administrator of 

such as soon as possible, by any means 

possible. 

(2) If directed by the Administrator or 

an authorized officer, the vessel 

operator must immediately stow the 

fishing gear in the manner described in 

§ 300.36, take the vessel directly to a 

port designated by the Administrator or 

authorized officer, and notify the 

Administrator by telephone, facsimile, 

or e-mail as soon as possible that the 

vessel is being taken to port with fishing 

gear stowed. 

(g) Shutdown of VMS unit while in 

port or in shipyard. When a vessel is in 

port and not moving, the VMS unit may 

be shut down, provided that the 

Administrator has been notified by 

telephone, facsimile, or e-mail that the 

vessel is in port and of the intended 

shutdown, and only as long as manual 

position reports as described in 

paragraph (f)(1) of this section are 

submitted to the Administrator at 

intervals of no greater than 24 hours or 

a shorter interval if and as specified by 

the Administrator or an authorized 

officer. If the VMS unit is shut down 

while the vessel is in port, the vessel 

owner or operator must notify the 

Administrator by telephone, facsimile, 

or e-mail as soon as possible after the 

vessel’s departure from port. When the 

vessel is in a shipyard, the VMS unit 

may be shut down and the submission 

of manual position reports is not 

required, provided that the 

Administrator has been notified by 

telephone, facsimile, or e-mail that the 

vessel is in the shipyard and of the 

intended VMS unit shutdown. If the 

VMS unit is shut down while the vessel 

is in a shipyard, the vessel owner or 

operator must notify the Administrator 

by telephone, facsimile, or e-mail as 

soon as possible after the vessel’s 

departure from the shipyard. 

(h) VMS unit repair and replacement. 

After a fishing trip during which 

interruption of automatic position 

reports has occurred, the vessel’s owner 

or operator must have the VMS unit 

repaired or replaced prior to the vessel’s 

next trip. If the VMS unit is replaced, 

the new VMS unit must be installed by 

an Administrator-authorized VMS unit 


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Federal Register / Vol. 72, No. 27 / Friday, February 9, 2007 / Rules and Regulations 6155 

installer, as specified in paragraph (c) of 

this section. In making such repairs or 

replacements, conformity with the 

current requirements must be met before 

the vessel may lawfully operate under 

the Treaty. 

(i) Access to data. As a condition to 

obtaining a license, holders of vessel 

licenses issued under § 300.32 must 

allow the Regional Administrator, an 

authorized officer, the Administrator or 

an authorized party officer or designees 

access to the vessel’s position data 

obtained from the VMS unit at the time 

of, or after, its transmission to the 

vendor or receiver. 

■ 11. A new § 300.46 is added to read 

as follows: 

§ 300.46 Transshipping requirements. 

(a) Applicability. This section applies 

to vessels licensed under § 300.32. 

(b) Transshipping may only be done 

at the time and place authorized for 

transshipment by the Pacific Island 

Parties, following the notification and 

request requirements of § 300.34(c)(5). 

(c) The operator and each member of 

the crew of a vessel from which any fish 

taken in the Licensing Area is 

transshipped must: 

(1) Allow and assist any person 

identified as an officer of the Pacific 

Island Party to: 

(i) Have full access to the vessel and 

any place where such fish is being 

transshipped and the use of facilities 

and equipment that the officer may 

determine is necessary to carry out his 

or her duties; 

(ii) Have full access to the bridge, fish 

on board and areas which may be used 

to hold, process, weigh and store fish; 

(iii) Remove samples; 

(iv) Have full access to the vessel’s 

records, including its log and 

documentation, for the purpose of 

inspection and copying; and 

(v) Gather any other information 

required to fully monitor the activity 

without interfering unduly with the 

lawful operation of the vessel; and 

(2) Not assault, obstruct, resist, delay, 

refuse boarding to, intimidate, or 

interfere with any person identified as 

an officer of the Pacific Island Party in 

the performance of his or her duties. 

(d) Transshipping at sea may only be 

done: 

(1) In a designated area in accordance 

with such terms and conditions as may 

be agreed between the operator of the 

vessel and the Pacific Island Party in 

whose jurisdiction the transshipment is 

to take place; 

(2) In accordance with the 

requirements of § 300.34; and 

(3) If the catch is transshipped to a 

carrier vessel duly authorized in 

accordance with national laws. 

[FR Doc. 07–593 Filed 2–8–07; 8:45 am] 

BILLING CODE 3510–22–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Parts 1 and 602 

[TD 9312] 

RIN 1545–BF95 

Section 181—Deduction for Film and 

Television Production Costs 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Temporary regulation. 

SUMMARY: This document contains 

temporary regulations relating to 

deductions for the cost of producing 

film and television productions under 

section 181. These temporary 

regulations reflect changes to the law 

made by the American Jobs Creation Act 

of 2004 and the Gulf Opportunity Zone 

Act of 2005, and affect taxpayers that 

produce films and television 

productions within the United States. 

The text of these temporary regulations 

also serves as the text of the proposed 

regulations set forth in the notice of 

proposed rulemaking on this subject in 

the Proposed Rules section in this issue 

of the Federal Register. 

DATES: Effective Date: These regulations 

are effective February 9, 2007. 

Applicability Dates: For dates of 

applicability, see § 1.181–6T. 

FOR FURTHER INFORMATION CONTACT: 

Bernard P. Harvey, (202) 622–3110 (not 

a toll-free number). 

SUPPLEMENTARY INFORMATION: 

Paperwork Reduction Act 

These temporary regulations are being 

issued without prior notice and public 

procedure pursuant to the 

Administrative Procedure Act (5 U.S.C. 

553). For this reason, the collections of 

information contained in these 

regulations have been reviewed and, 

pending receipt and evaluation of 

public comments, approved by the 

Office of Management and Budget under 

control number 1545–2059. Responses 

to these collections of information are 

required to obtain a tax benefit. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless the collection of information 

displays a valid OMB control number. 

For further information concerning 

this collection of information, and 

where to submit comments on the 

collection of information and the 

accuracy of the estimated burden, and 

suggestions for reducing this burden, 

please refer to the preamble of the crossreferencing notice of proposed 

rulemaking published in the Proposed 

Rules section in this issue of the Federal 

Register. 

Books or records relating to a 

collection of information must be 

retained as long as their contents may 

become material in the administration 

of any internal revenue law. Generally, 

tax returns and tax return information 

are confidential, as required by 26 

U.S.C. 6103. 

Background 

This document contains amendments 

to 26 CFR part 1 to provide regulations 

under section 181 of the Internal 

Revenue Code of 1986 (Code). Section 

181 was added to the Code by section 

244 of the American Jobs Creation Act 

of 2004, Public Law 108–357 (118 Stat. 

1418) (Oct. 22, 2004), and was modified 

by section 403(e) of the Gulf 

Opportunity Zone Act of 2005, Public 

Law 109–135 (119 Stat. 2577) (Dec. 21, 

2005). 

Explanation of Provisions 

For several years, independent 

filmmakers and television producers 

have moved production activities from 

the United States to other countries. 

Frequently, this has been motivated by 

credits and other incentives offered by 

foreign governments to attract the 

economic benefits gained by hosting 

these productions. Congress enacted 

section 181 to make domestic 

production more attractive to these 

taxpayers. 

Section 181 permits the owner of a 

qualified film or television production 

to elect to deduct production costs in 

the year the costs are paid or incurred 

in lieu of capitalizing the costs and 

recovering them through depreciation 

allowances if the aggregate costs do not 

exceed $15 million for each qualifying 

production ($20 million if a significant 

amount of the production costs are 

incurred in certain designated areas) 

(the ‘‘production cost limit’’). A film or 

television production is a qualified film 

or television production if 75 percent of 

the total compensation of the 

production is compensation for services 

performed in the United States by 

actors, directors, producers, and other 

relevant production personnel (the ‘‘75 

percent test’’). 


hsrobinson on PROD1PC76 with RULES