792 T J Jackson Drive Homeland Security.~}' National Vessel Documentation Center Falling Waters, WV 25419

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1 U.S. Department o~. Director 792 T J Jackson Drive Homeland Security.~}' National Vessel Documentation Center Falling Waters, WV Staff Symbol: NVDC ;S;,... Phone (304) United States Fax: (304) Coast Guard TimothyVSkuby@uscg.mil 16713/5/2 April 25, 2013 Messrs. John H. Musser and Timothy D DePaula Murphy, Rogers, Sloss & Gambel One Shell Square 701 Poydras Street, Suite 400 New Orleans, Louisiana Dear Messrs. Musser and DePaula: We refer to your letter of March 20, 2013, with its enclosures, wherein you reported that Normrock Industries, Inc. of Quebec, Canada (Normrock') is planning to construct amphibious excavator and dredging vessels at the Marine Inland Fabricators shipyard in Panama City, Florida (Marine Inland') which, upon completion, are intended to be Jones Act-compliant, documented in the United States, and eligible to engage in the coastwise trade of the United States. It is our understanding that you intend to construct a series of such vessels, known as 'J\mphibex', all using the essential design of the Amphibex 400, drawings for which you have submitted to accompany your request for confirmation that the Amphibex vessels, if constructed and designed as described, would be considered to be built in the United States and, as such, qualified to engage in the coastwise trade of the United States. The Amphibex vessels, as you have described them, would be constructed in several sizes but all would have the same functional design, arrangements and method of construction as described in your letter with particular reference to the Amphibex 400. They would have multi-functional capabilities, permitting them to engage in such activities as aquatic weed cutting and harvesting, excavating and dredging, trash and debris collection, and the laying of pipeline and underwater cables. This multi-functionality would be facilitated by a quick connection system which would allow for the rapid exchange of different tools and attachments which, as they are designed to be interchangeable, are not permanently attached to the hull. By your description of the planned construction, the hull and superstructure of the Amphibex vessels, as detailed in the drawings submitted, would be fabricated exclusively by Marine Inland in the United States. However, the lifting arms, front stabilizers, rear stabilizer, attachments and accessories, including extendable outriggers, all as also detailed in those drawings, would be manufactured in Canada but subsequently assembled into the vessels in the United States. All systems would be controlled by a single operator seated in an enclosed cab mounted on the deck.

2 You have sought confirmation that the Amphibex vessels, designed, constructed and assembled as described, would be considered built in the United States and qualified to engage in the coastwise trade of the United States notwithstanding that the various items as described would be foreign-built but assembled into the vessels in the United States. Your letter correctly reflects that, in order to be documented in the United States with a coastwise endorsement entitling them to be operated in the coastwise trades of the United States, the vessels must be determined to have been built in the United States. Moreover, in order for that to be the case, its construction must satisfy both of the requirements of 46 C.F.R ; namely: "To be considered built in the United States a vessel must meet both of the following criteria: (a) All major components of its hull and superstructure are fabricated in the United States; and (b) The vessel is assembled entirely in the United States." For the purposes of our determination in this case the definitions of the terms "hull" and "superstructure" at 46 C.F.R must also be considered, in pertinent part, as follows: "Hull means the shell, or outer casing, and integral structure below the main deck which provide both the flotation envelope and structural integrity of the vessel in its normal operations..." "Superstructure means the main deck and any other structural part above the main deck." Your letter, with its enclosures, was referred to the Coast Guard's Naval Architecture Division ("NAD") which, at our request, has reviewed your plans. A copy of the NAD report, dated April 16,2013, has been attached hereto as Exhibit A in support of this determination. The question addressed to the NAD for technical review by the facts presented in this case is straightforward. Would any of the lifting arms, front stabilizers, rear stabilizer, accessories and attachments, including the outriggers and the operator's cab, as described, form part of the "hull" or "superstructure", as defined above, of the vessels? If so, their estimated steelweight would then have to be taken into account to ascertain whether the component at issue would constitute a "major component" of the hull or superstructure (the standard for which has consistently been set at 1.5% of a vessel's lightship steelweight) and, as such, would need to be fabricated in the United States in order for the vessels to be considered built in the United States. If not, on the other hand, then, notwithstanding their size, the fact that they might be fabricated outside of the United States would not negatively implicate the first criterion of 46 C.F.R , set forth above. However, as your submission does not include steelweight calculations, the sole issue for us to consider is whether the items at issue would constitute part of the hull or superstructure. After review, the NAD offered the following findings at paragraphs 8, 9, 10 and 11 of its report, which we repeat in pertinent part: 2

3 "8. Consistent with our previous reviews of this nature, we consider' superstructure' to include deckhouses and pilothouses, but not breakwaters, crane or mast houses, or ventilation or exhaust trunks...in this regard, the operator's cab is only large enough for a single, seated person. It is essentially a weather-sheltered operating station, functionally equivalent to the enclosed cab of a large crane. Therefore, we do not consider it to be a superstructure. 9. The purpose of the outriggers is to provide lateral stability during crane operations when a loaded bucket swings around over the side. In shallow water, the outriggers can reach down and brace against the bottom; in deeper water, detachable floats can be attached to accomplish the same function. Because they are detachable and only used in conjunction with crane operations (and not to provide general buoyancy for the vessel), we do not consider them to be part of the flotation envelope of the hull. 10. We consider the cranes, outriggers, spuds and other mechanical systems to be deck equipment, and therefore their foundations and attachment points are not hull components. 11. In conclusion, none of the attachments to the basic pontoon hull are components of the hull or superstructure. Under these circumstances, there is no need to determine a discounted steel weight." The second criterion of 46 C.F.R , set forth above, requires that the vessel be assembled entirely in the United States. In this case you have indicated that all of the various components and attachments discussed above will, in fact, be assembled into the vessels in the United States at Marine Inland, and will be detachable in any event in the course of normal operation. The Coast Guard has long held that items not integral to the hull or superstructure of a vessel may be foreign built without compromising its coastwise eligibility. However, if attached or joined to the vessel in a foreign shipyard, the second criterion ofthe test, the "assembled entirely in the United States" criterion, would be impacted. Because all of the various components and attachments at issue in this case will be assembled into the vessels in the United States, as your submission has represented, and will be detachable in any event in the course of normal operations, that is not a concern here. Moreover, the Coast Guard's interpretation that the second criterion of the test refers to the assembly of the vessel itself, and does not require assembly in the United States of every component part of the vessel, has also been upheld. Philadelphia Metal Trades Council, MTD, AFL-CIO v. Allen, 2008 WL , E.D. Pa., For all of the above reasons, we confirm that foreign manufacture of the lifting arms, front stabilizers, rear stabilizer, accessories and attachments, as described, of the Amphibex vessels will not jeopardize the coastwise eligibility of the vessels provided that those components and attachments are assembled into the vessels in the United States, as has been represented. 3

4 Consequently, subject to the same caveat raised by the NAD in paragraph 12 of its report, we confirm that the Amphibex vessels, if designed, constructed and assembled as described, would be qualified to engage in the coastwise trades of the United States. Sincerely, Enclosure 4

5 EXHIBIT A MEMORANDUM t::: Commandant (CG ENG 2) 2100 Second Street, SW. United States Coast Guard Washington, DC "126 Staff Symbol: CG ENG 2 Phone: (202) Fax: (202) April 16, 2013 ~b ~-(. From: Jaideep SIRKAR - ~-,. Reply to CG-ENG-2* Chief, Naval Archl ecture Division (CG-ENG-2*) Attn of: (202) To: National Vessel Documentation Center Subj: Normrock AMPHIBEX multi-purpose vessels - Preliminary U.S. build determination Refs: (a) D. Cameron (NVDC) of 20 Mar 2013, to J. Sirkar (CG-ENG-2) (b) J. Musser (Murphy, Rogers, Sloss & Gambel) letter of 20 Mar 2013, to NVDC; w/attachments I. Reference (a) requests our review and comments regarding a class of multi-purpose work vessels per reference (b). The vessels will be built in a U.S. shipyard for Normrock Industnes of Quebec, Canada, for service in U.S. coastwise trade. 2. The vessels will be equipped with a crane and other mechanical attachments that will be fabricated in Canada. Normrock is requesting confirmation that foreign fabrication of these components will not invalidate the coastwise eligibility of the vessels. Description of vessel and foreign-source components 3. As described in reference (b), these vessels are small, self-propelled work platforms. They come in several sizes, but all have the same basic functional design and arrangements. The drawings submitted with reference (b) pertain to the Amphibex 400 as a representative design: 3S ft long x II liz ft wide x 3 ft deep. The hull is essentially a watertight pontoon; there are no below-deck spaces and, apart from the operator's cab, there are no other enclosed spaces on deck. The weight of the vessel is reported as 22 tons, but no detailed weight estimate is provided. 4. The vessels are designed as multi-purpose work platforms to perform various shallow water tasks, such as waterway dredging and excavation, pipe and cable laying, trash and debris removal, etc. For these operations, they are outfitted with a swiveling crane arm and interchangeable booms that are equipped with crane buckets, dredge heads, rakes, cutters, etc. Two extendable outriggers (port/starboard) provide lateral stability during crane operations. The vessel will be maneuvered by steerable propeller and held in position by spud pilings driven into the bottom. S. A diesel engine (for powering the hydraulic systems) is mounted on the open deck. All systems will be controlled by a single operator seated in an enclosed cab, which is also mounted on the deck. 6. The hull will be constructed in a U.S. shipyard. The crane, interchangeable boom~, and other mechanical equipment will be fabricated in Canada and shipped to the shipyard for assembly onto the hull. Basis of our review per 46 CFR The principle issue submitted for our consideration here is whether or not the various booms and mechanical attachments are components of the hull or superstructure, as defined in 46 CFR Review comments 8. Consistent with our previous reviews of this nature, we consider "superstructure" to include deckhouses and pilothouses, but not breakwaters, crane or mast houses, or ventilation or exhaust trunks (these being "outfitting" components). In this regard, the operator's cab is only large enough for a single. *jormer/y CG-5212

6 Subj: Preliminary U.S. build determination for the Normrock AMPHInEX multi-purpose vessels April) 6,2013 seated person. It is essentially a weather-sheltered operating station, functionally equivalent to the enclosed cab of a cargo crane. Therefore, we do not consider it to be a superstructure. 9. The purpose of the outriggers is to provide lateral stability during crane operations when a loaded bucket swings around over the side. In shallow water, the outriggers can reach down and brace against the bottom; in deeper water, detachable floats can be attached to accomplish the same function. Because they are detachable, and only used in conjunction with crane operations (and not to provide general buoyancy for the vessel), we do not consider them to be part of the floatation envelope of the hull. 10. We consider the cranes, outriggers, spuds, and other mechanical systems to be deck equipment, and therefore their foundations and attachment points are not hull components. II. In conclusion, none of the attachments to the basic pontoon hull are components of the hull or superstructure. Under these circumstances, there is no need to determine a discounted steel weight. 12. We note that we have reviewed only a representative design for a class of vessels that can be constructed in several sizes. However, to the extent that the other designs are constructed, assembled, and equipped in the same manner, our comments and conclusion apply to them as well. 13. If you have any questions, please contact me or Mr. Thomas JORDAN at the above. # 2