FAS Notice to Ocean Carriers
Participating
In the Food for Progress and McGovern-Dole International Food
for Education and Child Nutrition Programs
On July 6th, 2012, through section 100124 of H.R.
4348, enacted as P.L. 112-141, and effective that date, Congress made
significant changes to the legislation addressing the transportation of food
aid. The entire text of the
legislation is included for your convenience.
We highlight two changes that affect shipments on or after the
legislation’s effective date:
·
FAS will now be required to
ship, on a gross tonnage basis, 50% of food aid on privately owned
commercial vessels of the United States.
·
FAS will no longer be reimbursed for ocean transportation except for what has
come to be referred to as the “20% excess freight reimbursement.”
FAS will immediately implement Congressional intent as it
applies to the provisions discussed above.
Dated: July 25,
2012
SEC. 100124. REPEALS.
(a) Transportation
Requirements for Certain Exports Sponsored by the Secretary of Agriculture.—
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(1) REPEAL.—Subsections (a) and (c) of section 55314 of
title 46, United States Code, are repealed.
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(2) ACTIVITIES DESCRIBED.—Subsection (b) of
section 55314 of
title 46, United States Code, is amended by
striking “This section applies to export
activity” and inserting “The activities
specified in this subsection are export
activities”.
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(b) Financing the Transportation of Agricultural Commodities.—Subsection (a) of
section 55316
of title 46, United States Code, is repealed.
(c) Conforming Amendments.—
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(1) MINIMUM TONNAGE.—Section 55315(b) of
title 46, United States Code, is amended by
striking “subject to section 55314” and
inserting “specified in section 55314(b)”.
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(2) ISSUANCE AND PURCHASE OF OBLIGATIONS AND
NOTIFICATION TO CONGRESS OF
INSUFFICIENCY.—Section 55316 of
title 46, United States Code, is amended—
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(A) in subsection (c)(1) by
striking “under subsections (a) and (b)” and
inserting “under subsection (b)”; and
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(B) in subsection (f) by
striking “subsections (a) and (b) and section
55314(a) of this title” and inserting
“subsection (b)”.
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(3) TERMINATION OF SUBCHAPTER.—Section 55317 of
title 46, United States Code, is amended by
striking “sections 55314(a) and 55316(a) and
(b)” and inserting “section 55316(b)” |