What is the Maritime Subsidy Board and Its Legal Significance?
Definition & Meaning
The Maritime Subsidy Board is a division of the United States Maritime Administration (MARAD). It is responsible for managing subsidy programs that support U.S. maritime operations, specifically the Operating Differential Subsidy and the Construction Differential Subsidy. These subsidies aim to promote the competitiveness of the U.S. merchant fleet in international shipping. The Board's functions were established following the dissolution of the U.S. Maritime Commission in 1950, with its duties later transferred to MARAD in 1961.
Legal Use & context
The Maritime Subsidy Board plays a crucial role in maritime law and policy. It is involved in the administration of financial assistance programs that help U.S. shipping companies compete globally. Legal practitioners and maritime businesses may engage with the Board when seeking subsidies or navigating regulations related to maritime operations. Users can find relevant forms and templates through US Legal Forms to assist in these processes.
Real-world examples
Here are a couple of examples of abatement:
One example of the Maritime Subsidy Board's function is when a shipping company applies for the Operating Differential Subsidy to offset the higher costs of operating U.S.-flagged vessels compared to foreign-flagged vessels. This support helps maintain a robust U.S. shipping industry.
(Hypothetical example) A company constructing a new vessel may seek the Construction Differential Subsidy to reduce the financial burden of building in the U.S. rather than abroad.