Dear Vessel Operator

Dear Vessel Operator:

Thank you for your interest in participating in the carriage of bulk preference cargoes. To those who previously participated, thank you for your cooperation.

The bulk preference rule ("Rule") (46 CFR Part 382) requires an annual reporting of vessel operating, financial and cost information. Generally, the information is due not later than

April 30^th of each year. In instance where a vessel has not previously participated in the carriage of bulk preference cargoes, the information must be submitted prior to bidding on the carriage of preference cargo.

All information reported to the Maritime Administration ("MARAD") should be in accordance with 46 CFR Part 232. In general, Part 232 requires conformance with generally accepted accounting principles ("GAAP"). A responsible officer of the company must certify all data submissions as to their accuracy and completeness. In addition, the regulations encourage a CPA attestation engagement to reduce the need for audit verification by MARAD. However, this additional certification is at the operator’s discretion and MARAD does reserve the right to periodically audit.

Please note that, according to the Rule, MARAD will not calculate a guideline rate for your vessel if you have failed to report the required operating, financial, or vessel data.

Attached you will find two sample formats, together with brief instructions for their preparation, to help you fulfill the data reporting requirements. Attachment 1 is used for reporting vessel information and capital costs. Attachment 2, is used for reporting the vessel or vessels operating expenses for the prior calendar year. For complete instructions, refer to section 382.2 of the Rule.

The completed forms can be mailed to:

Department of Transportation
Maritime Administration
400 7^th Street, SW Room 8117
Washington, DC 20590

Or faxed to 202-366-7901

Should you have any questions concerning the data reporting requirements or any aspect of the Rule, please feel free to call us at (202) 366-2324. We look forward to working with you during the coming year.