Coast Guard: Anti-Reflagging Act Has Mixed Impact on U.S. Fishing and Ship Rebuilding
RCED-91-27
Published: Oct 25, 1990. Publicly Released: Nov 26, 1990.
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Highlights
Pursuant to a congressional request, GAO evaluated provisions of the Commercial Fishing Industry Vessel Anti-Reflagging Act, focusing on the: (1) act's impact on the groundfish industry; and (2) Coast Guard's procedures for enforcing certain act prohibitions.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| The Anti-Reflagging Act's American control provisions have had little impact on ensuring that U.S. fishery operations are controlled by U.S. citizens. This is a result of the Coast Guard's interpretation allowing the grandfather exemption to remain with a vessel even if the vessel is subsequently sold to a foreign-owned company. Consequently, should Congress desire another result, it may wish to consider changes to the existing legislation. |
Closed – Not Implemented
|
A court ruled that the Coast Guard's interpretation was incorrect and ordered it to require industry to comply with the act's American control provisions. The Coast Guard appealed the decision and, in November 1992, its appeal was upheld. Further court action or legislation is unlikely. |
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