Does the Cargo Preference Act of 1954, as amended, apply to imports by a project supported by a DOE loan guarantee?
The Cargo Preference Act establishes certain requirements for the use of U.S. flagged vessels in the movement of cargo in international waters. The Department of Transportation (DOT) has indicated to the Department of Energy (DOE) its view that the Cargo Preference Act applies to all ocean transport of cargos for projects supported by a DOE Loan Guarantee. DOE does not agree with this point of view, but acknowledges that the issue is not free from doubt. After detailed consultations, the two Departments have agreed, as a matter of policy, that DOE will apply the U.S.-flag requirements of the Cargo Preference Act in administering DOE’s loan guarantee program. In general, the application of the cargo preference requirements will be prospective and will not be applied to ocean transport that has been completed or contracted for under a binding arrangement prior to March 1, 2011. DOE recognizes the potential impact on its projects, and is working cooperatively with DOT’s Maritime Administr
