46 CFR § 272.31 - Determination of penalty.

---
identifier: "/us/cfr/t46/s272.31"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "46 CFR § 272.31 - Determination of penalty."
title_number: 46
title_name: "Shipping"
section_number: "272.31"
section_name: "Determination of penalty."
chapter_name: "MARITIME ADMINISTRATION, DEPARTMENT OF TRANSPORTATION"
subchapter_number: "C"
subchapter_name: "REGULATIONS AFFECTING SUBSIDIZED VESSELS AND OPERATORS"
part_number: "272"
part_name: "REQUIREMENTS AND PROCEDURES FOR CONDUCTING CONDITION SURVEYS AND ADMINISTERING MAINTENANCE AND REPAIR SUBSIDY"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "46 App. U.S.C. 1114(b), 1173, 1176; 49 CFR 1.66."
regulatory_source: "55 FR 34919, Aug. 27, 1990, unless otherwise noted."
cfr_part: "272"
---


# 272.31 Determination of penalty.

Operators whose Eligible Vessels have undergone foreign repairs, which MARAD determines are non-emergency in nature, may be subject to a penalty in an amount equal to the total cost (exclusive of applicable U.S. Customs duties) of such foreign repairs and purchases, such penalty to be effected by a deduction from the Operator's total ODS otherwise accrued. The Director, Office of Ship Operating Assistance, shall notify the Operator by letter with respect to:

(a) MARAD's determination of a penalty and the reasons therefore; and

(b) Whether the determination is final or subject to the submission of additional information.