46 C.F.R. § 272.3
Definitions.
Cite as 46 C.F.R. § 272.3 (2026)
For the purposes of this part:
(a)
Act
means the Merchant Marine Act, 1936, as amended, 46 App. U.S.C. 1101
et seq.
(b)
MARAD
means the Maritime Administration, a unit of the United States Department of Transportation, as distinguished from the Board (which is a unit of MARAD).
(c)
Board
means the Maritime Subsidy Board of the Maritime Administration.
(d)
Domestic Origin:
(1)
Labor.
With respect to labor, Domestic Origin means that the work shall be performed by a U.S. ship repair facility, a U.S. independent contractor, or by the Operator's own shore gang.
(2)
Materials.
With respect to materials, Domestic Origin means that all articles, materials, and supplies shall be of the growth, production or manufacture of the United States.
(e)
Eligible Vessel
means a vessel operated under an ODSA, other than an ODSA subject to part 294 of this chapter, which provides for the payment of M&R subsidy with respect to the operation of that vessel.
(f)
Equipment
means that part of an Eligible Vessel that is not part of the vessel's hull or machinery.
(g)
Expendable equipment
means those articles, outfittings and furnishings that are portable, semi-portable or detachable, that are used in equipping a ship for service and in its normal day-to-day maintenance and operation, and that are subject to casual or gradual deterioration and replacement. It does not include items classified as stores and supplies or Spare Parts.
(h)
Improvement
means work to be performed on an Eligible Vessel which is a modification, alteration, addition or betterment, which may be accomplished separately from M&R, but may be eligible for M&R subsidy pursuant to § 272.22 of this part.
(i)
M&R
and
M&R Subsidy
mean, respectively, maintenance and repairs and maintenance and repair subsidy payable pursuant to section 603 of the Act.
(j)
ODS
and
ODSA
refer, respectively, to operating-differential subsidy provided under an operating-differential subsidy agreement entered into pursuant to title VI of the Act.
(k)
Operator
means any individual, partnership, corporation, or association that enters into an ODSA with the Board pursuant to title VI of the Act.
(l)
Permanent equipment
means Equipment that is, or is intended to become when installed, an integral, permanent, built-in part of the vessel.
(m)
Region Office
means any one of the four Maritime Administration Region Offices in New York, NY; New Orleans, LA; San Francisco, CA; and Chicago, IL; established pursuant to section 809 of the Act.
(n)
Spare parts
means such items as spare propellers and tailshafts and self-contained operable units of machinery or equipment, as well as those items generally recognized within the maritime industry as Spare Parts.
(o)
United States
means the states of the United States, the District of Columbia and Puerto Rico.
- Cross-references to the CFR
- 272.22