============================================================================= ANNEX 307.3

Repair and Rebuilding of Vessels

United States

For the purpose of increasing transparency regarding the types of repairs that may be performed in shipyards outside the territory of the United States that do not result in any loss of privileges for such vessel to:

(a) remain eligible to engage in coastwise trade or to access U.S. fisheries,

(b) transport U.S. government cargo, or

(c) participate in U.S. assistance programs, including the "operating difference subsidy",

the United States shall, no later than the date of entry into force of this Agreement:

(d) provide written clarification to the other Parties of
current U.S. Customs and Coast Guard practices that
constitute, and differentiate between, the repair and
the rebuilding of vessels, including, where possible,
clarifications on "jumboizing", vessel conversions, and
emergency repairs, and

(e) commence a process to define the terms "repairs",
"emergency repairs", and "rebuilding" under U.S.
maritime legislation, including the Merchant Marine Act
of 1920 (codified at 46 U.S.C. App. 883) and the
Merchant Marine Act of 1936 (codified at 46 U.S.C. App.
1171, 1176, 1241 and 1241(o)).