MARAD’s Cargo-Preference Billing and Payment
May 05, 2004
Project ID: FI-2004-057
We issued a final report recommending that MARAD immediately pay $164 million of a $379 million invoice from the U.S. Department of Agriculture’s (USDA) Commodity Credit Corporation for FYs 1994-2000. MARAD is required to reimburse USDA for “excess” ocean-freight costs incurred by food-assistance programs administered by USDA and the U.S. Agency for International Development as a cost of complying with cargo-preference statutes. These laws require shipment on privately owned and operated U.S.-flagged Merchant Marine vessels.