Change in Tare Weight for Vegetable Oil

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.    

(1) REPEAL.—Subsections (a) and (c) of section 55314 of title 46, United States Code, are repealed.    

(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”.

(b) Financing the Transportation of Agricultural Commodities.—Subsection (a) of section 55316 of title 46,  United States Code, is repealed.

(c) Conforming Amendments.

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)”.

(2) ISSUANCE AND PURCHASE OF OBLIGATIONS AND NOTIFICATION TO CONGRESS OF INSUFFICIENCY.—Section 55316 of title 46, United States Code, is amended—

(A) in subsection (c)(1) by striking “under subsections (a) and (b)” and inserting “under subsection (b)”; and

(B) in subsection (f) by striking “subsections (a) and (b) and section 55314(a) of this title” and inserting “subsection (b)”.

(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)”