McCaul Passes Amendment: Can't Do Business with Both U.S. and Iran: International Organizations Currently Inspect Both U.S. and Iranian Vessels

WASHINGTON, D.C. – The U.S. House of Representatives passed an amendment by Congressman Michael McCaul (R-TX) that prevents the U.S. Government from doing business withinternational classification societies that also do business withcountries that are State Sponsors of Terrorism. The amendment was attached to the U.S. Coast Guard and Maritime Transportation Act of 2011, which passed the House Tuesday.

The U.S. Coast Guard relies on these recognized organizations, called marine classification societies, to serve as agents of our government in conducting more than 3,500 statutory inspections a year on U.S.-flagged merchant vessels. These inspections verify that a vessel is in compliance with both international maritime conventions and domestic legal requirements for safety and the environment. These organizations operate around the globe and establish standards for the design, construction and maintenance of ships, oil platforms, and other marine structures.

The American Bureau of Shipping, headquartered in Houston, is the only U.S.-based recognized organization. Meanwhile, several foreign-based classification societies have established Memorandums of Understanding with the U.S. Coast Guard to conduct inspections on the Coast Guard’s behalf.

"Unfortunately, U.S. law does not preclude these foreign-based organizations from simultaneously representing the U.S. government and the governments of State Sponsors of Terrorism. Four of them that act as agents of our government enjoy a similar recognition by the Islamic Republic of Iran," Congressman McCaul said.

"An organization representing both the United States and Iran on matters of governmental oversight clearly runs contradictory to U.S. policy. This loophole must be closed."

Rep. McCaul's amendment, which is based on the Ethical Shipping Inspections Act that he introduced in September with bi-partisan support, would prohibit the U.S. Coast Guard from delegating vessel inspections from organizations thatalso provide these services of behalf of any State Sponsor of Terrorism—such as Iran, Sudan and Syria. Companion language has been introduced in the Senate version of this same bill.

"If classification societies do business with oppressive, sanctioned regimes, they should not be allowed to do business on behalf of the U.S. Government," Rep. McCaul said.

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