|
|
|
Operating_Differential Subsidies
Published on AidPage by IDILOGIC on Jun 24, 2005
Possible uses and use restrictions...
The Maritime Security Act, which was enacted on October 8, 1996, provides for the wind-up of the program by providing that the Secretary of Transportation shall not enter into any new contract for operating-differential subsidy (ODS). This law also provides that any ODS contract in effect before the date of enactment shall continue in effect and terminate as set forth in the contract. Title VI of the Act provides for the payment of operating-differential subsidy on vessels to be used in a foreign service in the foreign commerce of the United States, which has been declared to be essential by the Secretary of Transportation under Section 211 of the Act. Operating subsidy is based on the difference between the fair and reasonable cost of certain items of operating expense and the estimated cost of the same items of expense if the vessels were operated under foreign registry. See program 20.813, Maritime Security Fleet Program.
|
| |
|