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Proposed Rule2026-21067

Investigation Into Conditions Affecting Shipping in the Foreign Trade and Denial of Entry of Vessels Into Spanish Ports and Proposed Remedies To Meet or Adjust the Unfavorable Conditions

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Published

October 15, 2026

Issuing agencies

Federal Maritime Commission

Abstract

The Federal Maritime Commission (Commission) proposes to adjust or meet unfavorable shipping conditions created by the Government of Spain. The Commission proposes a per-voyage fee on all Spanish vessels of $200,000 and restrictions on the import of certain Spanish goods into the United States. The Commission also proposes using additional statutory authority to impose these remedies because the Government of Spain has unduly impaired the access of U.S. flag vessels to trade between foreign ports. The Commission herein offers an opportunity for a public hearing. The Commission invites public comment on all aspects of this proposed rule.

Full Text

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<title>Federal Register, Volume 91 Issue 198 (Thursday, October 15, 2026)</title>
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[Federal Register Volume 91, Number 198 (Thursday, October 15, 2026)]
[Proposed Rules]
[Pages 65515-65521]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-21067]

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FEDERAL MARITIME COMMISSION

46 CFR Part 551

[FMC-2026-0463; Docket No. 26-14]

Investigation Into Conditions Affecting Shipping in the Foreign
Trade and Denial of Entry of Vessels Into Spanish Ports and Proposed
Remedies To Meet or Adjust the Unfavorable Conditions

AGENCY: Federal Maritime Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Federal Maritime Commission (Commission) proposes to
adjust or meet unfavorable shipping conditions created by the
Government of Spain. The Commission proposes a per-voyage fee on all
Spanish vessels of $200,000 and restrictions on the import of certain
Spanish goods into the United States. The Commission also proposes
using additional statutory authority to impose these remedies because
the Government of Spain has unduly impaired the access of U.S. flag
vessels to trade between foreign ports. The Commission herein offers an
opportunity for a public hearing. The Commission invites public comment
on all aspects of this proposed rule.

DATES: Comments and related material must be received by the Commission
on or before December 14, 2026.

ADDRESSES: To view background documents or comments received, you may
use the Federal eRulemaking Portal at <a href="http://www.regulations.gov">www.regulations.gov</a> under FMC-
2026-0463. See the ``Public Participation and Request for Comments''
portion of the SUPPLEMENTARY INFORMATION section for further
instructions on submitting comments. This notice of proposed rulemaking
with its plain-language, 100-word-or-less proposed rule summary will be
available in this same docket.

FOR FURTHER INFORMATION CONTACT: David Eng, Secretary; Phone: (202)
523-5725; Email: <a href="/cdn-cgi/l/email-protection#0d7e686e7f68796c7f744d6b606e236a627b">[email&#160;protected]</a>.

SUPPLEMENTARY INFORMATION:

I. Background

A. Legal Authority

The Federal Maritime Commission (Commission) is charged with
investigating and prescribing regulations to adjust or meet conditions
unfavorable to shipping in the foreign trade of the United States which
arise out of or result from the laws or regulations of a foreign
country. 46 U.S.C. 42101(a). The Commission must also investigate when
a foreign government is unduly impairing the access of a vessel
documented under the laws of the United States to ocean trade between
foreign ports and take appropriate action to remedy any such violation.
46 U.S.C. 41108(d). The Commission is empowered to remedy foreign
government actions that impair the access of U.S. flag vessels to ocean
trade between foreign ports by Chapter 423 of Title 46, United States
Code. The remedies provided by Chapter 421 and Chapter 423 of Title 46
authorize the Commission to charge fees to foreign-flagged vessels
entering U.S. ports and limit the import into the United States of
amounts or types of cargo.

B. Investigation

The Commission initiated this investigation in December 2024 under
Title 46, Chapter 421 of the United States Code to determine whether
the Government of Spain (Spain) is creating general or special
conditions unfavorable to shipping in U.S. foreign trade by barring
certain vessels from its ports, including vessels transporting cargo
under the United States Maritime Administration's (MARAD) Maritime
Security Program (MSP). Docket No. 24-30; FMC-2024-0022. Initial
reports that prompted this investigation indicated that Spain had
refused port access in November 2024 to three MSP vessels on the
grounds that they were carrying cargo bound for or coming from Israel.
Spain reportedly cited European Union (EU) regulations as the basis for
these port refusals.\1\
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\1\ The Commission consulted with other appropriate U.S.
governmental agencies and received information that will not be
disclosed to the public. 46 U.S.C. 42105, 42109.
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The Commission published a notice of investigation and request for
comments in the Federal Register on December 6, 2024. Investigation
into Conditions Affecting Shipping in the Foreign Trade and Denial of
Entry of Vessels into Spanish Ports, 89 FR 96973 (Dec. 6, 2024)
(December 2024 notice). That request resulted in over 8,000 comments
from the public and interested parties. Many comments expressed views
about Spain's policy based on views about Israel. That is not part of
this investigation, which is focused only on maintaining the
reliability and efficiency of the U.S. ocean shipping supply chain,
including whether Spain is refusing docking privileges to certain
vessels, and if so, how Spain's refusal of docking privileges is
affecting shipping in U.S. foreign trade.
The Commission reviewed these comments and also ordered information
to be supplied under oath as necessary to further the investigation. 46
U.S.C. 42104(a). Materials the Commission ordered to be supplied under
oath will not be disclosed to the public. 46 U.S.C. 42105.
The Commission published a second notice and request for comments
in the Federal Register on December 22, 2025. Investigation Into
Conditions Affecting Shipping in the Foreign Trade and Denial of Entry
of Vessels Into Spanish Ports; Request for Additional Comments, 90 FR
59826 (Dec. 22, 2025) (December 2025 notice). The evidence the
Commission received up to that point confirmed that the unfavorable
conditions identified in this investigation still existed, and the
Commission provided 60 additional days for commenters to weigh in. The
Commission also described its authority to prescribe remedies and
solicited comment on possible remedies, including remedies focused on
vessels with links to Spain, cargo from Spain that might be
appropriately limited, or other possible remedies. The second notice
resulted in only one comment that was not relevant to the purposes of
the Commission's investigation.

II. Public Comments

The Commission received over 8,000 comments in response to the
December 2024 notice. The Commission received only one comment in
response to the December 2025 notice. The Commission reviewed these
comments and considered the issues they raised.
Many of the responses to the December 2024 notice and the lone
comment on the December 2025 notice did not raise issues relevant to
this investigation. For instance, the one comment responding to the
Commission's December 2025 notice urged the National Oceanic and
Atmospheric Administration to approve an economic fishery disaster

[[Page 65516]]

declaration.\2\ Many of the responses to the December 2024 notice
focused on concerns about possible human rights violations. These
issues are beyond the scope of this investigation. The Commission is
investigating Spain's denial of docking privileges to certain vessels
and whether such denials are creating conditions unfavorable to
shipping in the foreign trade. Because of the volume of comments, the
Commission's analysis focuses on comments raising relevant issues
within the scope of the Commission's investigation.
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\2\ WhooPoo App (FMC-2024-0022-8325).
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A. Government of Spain 3
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\3\ Government of Spain (FMC-2024-0022-8217).
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Spain submitted a comment in response to the Commission's December
2024 notice but not the December 2025 notice. In its comment, Spain
argued that the Commission does not have power to compel Spain's
participation in this proceeding, the Commission does not have
jurisdiction over Spain given sovereign immunity, and the appropriate
remedy is for the Commission to pursue a diplomatic solution through
the U.S. Secretary of State. Moreover, Spain argued that it must follow
Spanish, EU, and international laws that require it to prevent the
transit of defense and dual-use goods through its ports and Spain is
doing so in a non-discriminatory manner. Spain's arguments do not
address the questions posed by the Commission, and Spain's unquestioned
sovereignty to act within its borders does not affect the Commission's
authority to investigate and regulate conditions unfavorable to U.S.
foreign shipping under Chapter 421.
First, the Commission cannot compel Spain to participate in this
proceeding. The Commission's power to remedy unfavorable conditions to
shipping in foreign trade is the power to take action within the
jurisdiction of the United States. The Commission can deny vessels
entry into the United States, impose fees on vessels coming to the
United States, and take other appropriate actions to adjust or meet
unfavorable shipping conditions. 46 U.S.C. 42106. The Commission cannot
force Spain to take any action or repeal any Spanish or EU law or
regulation. Likewise, Spain cannot infringe on U.S. sovereignty by
demanding the Commission take or refrain from any action.
Further, Spain's compliance with Spanish, EU, and international law
is not a defense to a Chapter 421 investigation. Chapter 421
presupposes that Spain's actions are consistent with its laws and
regulations. Section 42101 obligates the Commission to prescribe
regulations meeting unfavorable conditions that ``arise out of or
result from laws or regulations of a foreign country.'' This statutory
language shows Congress assumed that the unfavorable conditions arise
from compliance with foreign laws or regulations, not non-compliance or
illegal behavior. The Commission's investigation is into whether the
conditions created by Spain result in unfavorable conditions affecting
shipping in the foreign trade, not whether Spain was required by its
own legal system to create those conditions.
Spain's claims that it is enforcing its laws in a non-
discriminatory manner without regard to flag is also not a defense
against an investigation of whether Spain has created unfavorable
conditions in the foreign trade. Spain claims that it did not reject
docking authorization to certain vessels on the basis of a vessel's
flag or port of origin, but that it only rejected the transit of the
individual containers. Spain, however, failed to support these claims
in its response, and they are inconsistent with the evidence received
in this investigation. The evidence shows that Spain rejected docking
privileges for U.S. flag vessels and did not merely deny offloading or
transshipment of specific containers. Moreover, the argument that it
did not discriminate based on flag or port of origin does not rebut a
finding that Spain's actions created unfavorable conditions.
Selectively enforcing laws or regulations to deny docking privileges to
specific vessels can create, and has created, unfavorable conditions
even if Spain allows access to other vessels of the same flag or
origin.
Finally, it is true, as Spain contends, that a diplomatic solution
may resolve this investigation. Spain is uniquely positioned to make
that occur. But until that time, Spain continues to create unfavorable
shipping conditions. The Commission is charged with meeting or
adjusting those conditions while they persist. The Commission can
rescind any final remedies once a diplomatic solution has been reached,
but does not intend to delay the proposed remedies based on a
hypothetical solution.\4\
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\4\ The Commission may consult with other agencies, such as the
State Department, prior to taking action. 46 U.S.C. 42109.
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B. Members of Congress 5
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\5\ Members of Congress (FMC-2024-0022-8168). The Members were
Rashida Tlaib, Cori Bush, and Summer L. Lee.
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The Commission received a comment from two then-current members and
one former member of Congress. These members opposed the Commission's
investigation, but their comment did not address the questions posed in
the Commission's December 2024 notice or discuss the Commission's
statutory authority. The members argued that Spain's actions are
legitimate actions of a sovereign state, Spain is right to follow its
affirmative legal obligations to block weapons that may facilitate
violations of the Geneva Convention, Spain's actions do not threaten
the reliable international ocean shipping system, and U.S. agencies
should not punish its allies for enforcing international obligations.
The members' arguments that Spain's actions do not threaten
international ocean shipping were not supported by evidence submitted
to the Commission. Their remaining arguments are beyond the scope of
the Commission's investigation or outside the Commission's authority to
investigate.

C. Maritime Labor Unions 6
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\6\ Maritime Labor Organizations (FMC-2024-0022-0002).
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The Commission received a comment submitted on behalf of maritime
labor unions.\7\ The unions supported the Commission's investigation
and argued that Spain's port denials undermine fair trade and create
unfavorable conditions for U.S. shipping in the foreign trade. The
comment contended that MSP vessels are essential for maintaining the
security and reliability of U.S. foreign trade and defense readiness,
and that Spain's actions jeopardize the free flow of commerce and
disrupt shipping operations. The unions affirmed their support for
promoting the economic and national security interest of the U.S. by
delivering timely cargo on behalf of the American people, encouraged
the Commission to use every available tool to compel a reversal of
Spain's policy, and argued that Spain's actions set a dangerous
precedent for the treatment of U.S. vessels abroad. The unions urged
the Commission to protect the right of U.S. flag vessels to operate
freely in international trade and offered their support in any way
necessary.
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\7\ The union representatives who commented are: American
Maritime Officers; Maritime Trades Department and Transportation
Trades Department--AFL-CIO; Sailors' Union of the Pacific; Seafarers
International Union; International Organization of Masters, Mates,
and Pilots; Marine Firemen's Union, and the Marine Engineers'
Beneficial Association.

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[[Page 65517]]

D. Former State Department Diplomat 8
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\8\ Richard Solomon (FMC-2024-0022-8315).
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A self-identified former State Department diplomat who worked on
Middle East issues opposed the Commission's investigation. He argued
that any remedies contemplated under Chapter 421 would be unwarranted
given the current circumstances and contended that an investigation is
unwarranted and inappropriate. This commenter argued that Spain's
actions were legally obligated given that cargo carried on U.S.
Government ships contributes to violations of the Geneva Convention and
international law. Spain's compliance with domestic and international
law, however, is not a defense to a Chapter 421 investigation because
the Commission's authority is premised on the conditions arising out of
the ``laws or regulations of a foreign country.'' That these conditions
are arising out Spain's laws or regulations is necessary for a Chapter
421 investigation. This commenter concluded that the United States
should cease arming Israel and should not stand in the way of Spain's
legally and morally necessary arms embargo. These issues are beyond the
scope of this investigation.

E. Mass Comments

The Commission received thousands of mass comments with almost
identical language. The Commission used federal comment deduplication
tools to identify representative comments for consideration. The
Commission included all of these mass comments in the online rulemaking
docket. Most of the mass comments opposed the Commission's
investigation for reasons already discussed and discussed further
below.\9\ The commenters raised Spain's legal obligation to follow
Spanish, EU and international law,\10\ the sovereign right of Spain to
enforce an arms embargo, and the Commission's lack of authority to
exercise jurisdiction over Spain.\11\ The mass comments also argued
that the United States is obligated by law to stop arming Israel, that
this investigation is a waste of government resources and tax dollars,
and that the International Court of Justice's (ICJ) preliminary ruling
against Israel binds the United States and requires it to stop arming
Israel. These issues, and others raised in the mass comments, were not
responsive to the Commission's December 2024 notice and do not address
the focus of the Commission's investigation. Arguments about
obligations to human rights treaties and ICJ rulings do not provide
evidence about the impact of Spain's port denials on the efficiency and
reliability of the ocean shipping supply chain or whether Spain's
actions are creating unfavorable shipping conditions. Although the
volume of the comments opposing Commission action in this regard was
high, the Commission finds the analysis in these comments unpersuasive.
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\9\ See, e.g., Karl Adrianza (FMC-2024-0022-2807).
\10\ See, e.g., Aidan Black (FMC-2024-0022-3177).
\11\ See, e.g., Mary Ames (FMC-2024-0022-8295).
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One set of mass comments supported the Commission's
investigation.\12\ This set of mass comments argued that Spain's
refusal of docking privileges undermines equitable trade and critical
logistics networks, and that Spain has jeopardized bilateral trade and
NATO defense efforts. This set of mass comments urged the Commission to
impose remedies such as fines or vessel bans to reaffirm the importance
of fair and open maritime commerce. This set of mass comments is
relevant to the investigation because it addresses whether Spain's
actions have impacted the efficiency and reliability of the ocean
shipping supply chain. This set of mass comments does not provide new
evidence for the Commission to consider, but it does reinforce the
Commission's concerns about Spanish actions creating unfavorable
shipping conditions.
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\12\ See, e.g., Wendy Ward (FMC-2024-0022-0261).
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F. Palestinian Youth Movement 13
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\13\ See, e.g., Beatrix Kline (FMC-2024-0022-6850).
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The Commission received a set of mass comments created by the
Palestinian Youth Movement (PYM). The PYM did not submit a comment
itself, but many commenters followed a template created by the PYM.
These commenters argued that Spain's blocking of specific ships is not
only within Spain's purview as a sovereign country but is a legal
obligation. Any remedies contemplated in Chapter 421 of United States
Code, Title 46 would be unwarranted under the current circumstance
according to these commenters. They argued the cargo carried on Maersk
ships, provided by the U.S. Government, contributes to war crimes,
crimes against humanity, the crime of genocide, violations of the 4th
Geneva Convention and Additional Protocols, and violations of
international legal norms. These commenters concluded that the United
States should cease arming Israel and should not stand in the way of
Spain's legally and morally necessary arms embargo. The Commission's
investigation focuses on whether Spain's actions result in unfavorable
conditions affecting shipping in the foreign trade, and Spain complying
with its own law in taking those actions is presupposed by the statute.

III. Investigation Results

The Commission's investigation provided conclusive evidence that
Spain's actions have created unfavorable shipping conditions in the
foreign trade resulting from its laws or regulations. Spain has
publicly denied docking privileges to multiple vessels and publicly
stated it will deny docking privileges to certain vessels in the
future. Those vessels had to reroute to non-Spanish ports and omit
Spanish ports from future voyages. Spain's policy of port denials is
ongoing. Confidentially submitted evidence confirms that Spain's policy
has created unfavorable conditions. The Commission concludes that
Spain's actions create unfavorable shipping conditions in the foreign
trade resulting from its laws or regulations.
The Commission's investigation returned public and non-public
evidence of Spain's actions. In May 2024, Spain publicly announced a
policy of preventing vessels from docking at its ports and Spain's
transport minister identified a vessel that had been refused docking
privileges as the Marianne Danica.\14\ In November 2024, Spain's
foreign ministry said two vessels participating in MSP, the Maersk
Seletar and the Maersk Denver, ``will not stop in Spain.'' Those
vessels did not dock in Spain. Another MSP vessel, the Maersk Hartford,
with a stop planned at a Spanish port later that month also did not
dock in Spain. Spain publicly reinforced and expanded this policy in
September 2025.\15\
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\14\ Spain Denies Port of Call to Ship Carrying Arms to Israel,
The Guardian, May 16, 2024 (available at <a href="https://www.theguardian.com/world/article/2024/may/16/spain-denies-port-of-call-to-ship-carrying-arms-to-israel">https://www.theguardian.com/world/article/2024/may/16/spain-denies-port-of-call-to-ship-carrying-arms-to-israel</a>) (last accessed Sept. 21,
2026).
\15\ Spain Imposes Permanent Weapons Embargo on Israel,
Politico, September 8, 2025 (available at <a href="https://www.politico.eu/article/spain-pm-sanchez-permanent-weapons-embargo-israel/">https://www.politico.eu/article/spain-pm-sanchez-permanent-weapons-embargo-israel/</a>) (last
accessed September 21, 2026).
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Public vessel tracking data confirms Spain has created unfavorable
conditions. The Maersk Seletar and Maersk Denver signaled Algeciras,
Spain as their destination during voyages in early November 2024 and
then changed their destinations while crossing the Atlantic Ocean to
Tangier, Morocco. Both then docked at Tangier, Morocco. Public vessel
tracking data show that both vessels no longer call at

[[Page 65518]]

Spanish ports and last did so in January of 2025. The Maersk Hartford
was destined for a Spanish port in November 2024 but public vessel
tracking data confirms it rerouted to Morocco mid-voyage.\16\ The
Maersk Hartford last visited Spain in January 2025 and has since
visited Morocco regularly. Since November 2024, vessel tracking data
shows that the U.S. flag fleet of Maersk Line Limited (MLL) \17\ has
almost entirely avoided stopping in Spain with only six visits
occurring across 2026 as opposed to the multiple monthly visits prior
to November 2024. Vessel tracking data shows 7.25 \18\ port calls per
month in Spain by MLL vessels on average prior to November 2024. Since
July 2025, MLL vessel calls have almost ceased at Algeciras, and MLL
vessel calls at Tangier in Morocco have replaced much of this traffic.
MLL vessel calls at Tangier now average 4.17 per month, replacing many
of the MLL vessel calls to Algeciras. The larger population of MSP
vessels also now mostly avoid calling at Algeciras.
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\16\ The Commission's December 2025 notice incorrectly
identified the Nysted Maersk as a participant in MSP with a U.S.
flag. That notice also did not include the apparent refusal of Spain
to permit the Maersk Hartford to dock later in November.
\17\ The MLL fleet is entirely enrolled in MSP and flagged in
the United States, though MSP includes additional vessels from other
carriers as well.
\18\ Figures may be rounded to the nearest hundredth.
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Confidentially submitted information confirms that Spain's public
announcements and non-public actions have created unfavorable
conditions. It confirms that Spain's public policy of preventing
certain vessels, including MSP vessels, from docking at Spanish ports
is creating unfavorable shipping conditions. It confirms that almost
all MSP vessels no longer dock at Spanish ports because of Spain's
policy of port denials, and not for other reasons.\19\ It confirms that
this prevents MSP vessels from trading between Spanish ports and other
foreign ports.
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\19\ Around the time of Spain's port denials, the EU's Emissions
Trading System took effect. The Commission considered whether this
policy change explains MLL vessels omitting Spain, rather than
Spain's public policy of port denials, though Spain never argued
this and submitted no evidence in support of this possibility. The
Commission finds this possible explanation unsupported because
Maersk vessels still call at Spanish ports, while MLL vessels omit
them, and Maersk publicly reaffirmed that Algeciras remains, ``a
strategic priority.'' That Maersk continues its commitment to using
Algeciras while MLL no longer uses this strategic port reinforces
the Commission's conclusion that Spain's policy of port denials is
creating unfavorable conditions. See, e.g., Adil Faouzi, Maersk
Shifts Major Shipping Route from Algeciras to Tanger Med, Morocco
World News, Jan. 15, 2025, <a href="https://moroccoworldnews.com/2025/01/165853/maersk-shifts-major-shipping-route-from-algeciras-totanger-med/">https://moroccoworldnews.com/2025/01/165853/maersk-shifts-major-shipping-route-from-algeciras-totanger-med/</a> (last visited September 21, 2026).
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Based on this record, the Commission concludes that Spain has
created conditions unfavorable to shipping in the foreign trade through
its laws or regulations. Spain has publicly announced and enforced a
policy that has prevented MSP vessels from docking at Spanish ports.
MSP vessels were turned away in at least three instances from Spanish
ports. Publicly, Spain has only reinforced and expanded this public
policy since those vessels were turned away in November 2024. Almost
all MSP vessels no longer dock at Spanish ports. This policy prevents
U.S. flag vessels from carrying goods destined for Spanish ports and
prevents them from picking up Spanish goods for carriage to non-Spanish
ports. This policy creates conditions that directly impact the purposes
for which Congress created the Commission. The exclusion of MSP
vessels, vessels necessary for the national defense and the domestic
and foreign commerce of the United States,\20\ prevents these vessels
from providing shipping services essential for maintaining waterborne
domestic and foreign commerce, especially when called upon to serve as
naval and military auxiliary vessels in a time of national
emergency.\21\ 46 U.S.C. 42101, citing 46 U.S.C. 50101. Further, the
Spanish policy impairs the efficient, competitive, and economical
transportation of goods in the ocean commerce of the United States by
preventing U.S. flag vessels from transporting goods destined for, or
coming from, Spain. 46 U.S.C. 40101(2). The policy directly conflicts
with the Commission's purpose of encouraging the development of an
economically sound and efficient liner fleet of U.S.-flagged vessels
capable of meeting national security needs and supporting commerce, as
it prevents exactly those vessels from carrying goods to or from Spain.
46 U.S.C. 40101(3). Finally, the policy undermines the Commission's
ability to promote a competitive and efficient system for the carriage
of goods by water in the foreign commerce of the United States since
MSP vessels can no longer compete for cargos destined for, or coming
from, Spain. 46 U.S.C. 40101(4). This record supports the Commission's
conclusion that Spain's laws or regulations are creating conditions
unfavorable to shipping in the foreign trade.
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\20\ Maritime Labor Organizations (FMC-2024-0022-0002).
\21\ Spain is blocking U.S. flag vessels retained by the U.S.
government for their availability during times of need from
accessing ports in a country where the United States has important
overseas military bases. These port denials directly undercut the
Commission's mandate to support a merchant marine necessary for the
national defense and capable of serving as a naval and military
auxiliary in time of war or national emergency. 46 U.S.C. 42101,
50101.
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IV. Section 41108(d)

The Commission commenced this investigation pursuant to its Chapter
421 authority to remedy unfavorable conditions, but the evidence also
demonstrates that Spain has prevented U.S. flag vessels from docking at
its ports, and by doing so prevented these vessels from delivering
goods to Spanish ports from other foreign ports and from loading
Spanish goods for delivery in foreign ports. This supports the
conclusion that Spain's actions have potentially impaired the access of
U.S. flag vessels to ocean trade between foreign ports. As a result,
the Commission, through this notice, is providing an opportunity for
Spain to request a hearing pursuant to 46 U.S.C. 41108(d).
The record shows that Spain denied access to its ports to three MSP
vessels in November 2024. Spain denied docking privileges to the Maersk
Seletar and the Maersk Denver in November 2024. Later in November 2024,
Spain did not permit another MSP vessel, the Maersk Hartford, to dock
at its ports. Spain's policy of denying docking privileges to these
vessels, which are documented under the laws of the United States,
still prevents them from exporting goods to Spain and from carrying
Spanish goods to foreign ports. This continues to impair the ability of
these vessels to engage in ocean trade between foreign ports. MSP
vessels cannot compete fairly against non-MSP vessels for cargo
destined for Spain or to carry Spanish exports.
Section 41108(d) gives the Commission power to impose remedies
authorized by sections 42304 and 42305 of Title 46 of the United States
Code, but that section requires that the Commission do so only after
notice and opportunity for a hearing. Because the Commission's
investigation has focused on Chapter 421 violations to this point, the
Commission has not yet provided Spain with an opportunity for a hearing
concerning section 41108(d). Through this notice, the Commission
informs Spain that it intends to consider, and potentially impose
remedies for, Spain's actions that impair the ability of U.S. flag
vessels to ocean trade between foreign ports. The Commission also,
through this notice, provides Spain with the opportunity to request a
hearing before the Commission. Should Spain request a hearing, its
representatives should use the Further Contact

[[Page 65519]]

Information provided at the beginning of this notice to file such a
request with the Commission.

V. Proposed Remedies

The Commission proposes two sets of remedies to meet or adjust the
unfavorable shipping conditions created by Spain in the foreign trade
of the United States. First, the Commission proposes to levy fees on
Spanish-flagged vessels entering U.S. ports. 46 U.S.C. 42106(4),
42304(a)(4). Second, the Commission proposes to limit imports into the
United States of some or all categories of Spanish goods. The
Commission intends to exercise its authority to restrict the type of
cargo carried to U.S. ports and work with relevant U.S. government
agencies to enforce these restrictions. 46 U.S.C. 42106(4), 42109.

A. Per Voyage Fees

First, the Commission proposes imposing fees on a per-voyage basis
on Spanish-flagged vessels calling at U.S. ports. One of the
Commission's prior uses of this authority came during an investigation
into Japanese harbor services monopolies and Japan's licensing of
terminal operators and stevedores.\22\ In that investigation, the
Commission imposed a $100,000 fee per-voyage on vessels operated by
Japanese carriers in a 1997 final rule. That investigation differed
because there were many Japanese carriers and many Japanese-flagged
vessels entering U.S. ports, whereas there are relatively few Spanish-
flagged vessels that call at U.S. ports. Still, the Commission now
proposes similar remedies to those that led to a bilateral resolution
in that investigation. The Commission proposes a per-voyage fee on
Spanish-flagged vessels of $200,000, which is the approximate
adjustment for inflation between 1997 and 2026. 46 U.S.C. 42106(4),
42304(a)(4). This remedy alone will not fully meet or adjust the
unfavorable conditions created by Spain, but it has been effective
before and the Commission proposes to use it again.
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\22\ Port Restrictions and Requirements in the United States/
Japan Trade, 62 FR 9696 (Mar. 4, 1997).
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B. Trade Category Import Restrictions

Second, the Commission reviewed the Harmonized Tariff Schedule
(HTS) to choose Spanish goods that could be limited from import to
appropriately meet or adjust the unfavorable shipping conditions
created by Spain. The HTS of the United States is a U.S. nomenclature
system used to classify traded goods based on their material
composition, product name, and/or intended function. The HTS is based
on the international harmonized system, which is the global system of
nomenclature applied to most world trade in goods. The international
harmonized system maps exactly with the U.S. version to the 6-digit
level while the HTS (U.S.) further stratifies traded goods into even
more specific categories. The HTS is designed so that each article
falls into only one category. It is divided into chapters, each of
which has a 2-digit number. Each product category within the various
chapters is designated by 4, 6, 8, or 10 digits. The 4-digit categories
are called ``headings.'' The 6-, 8- and 10-digit classifications are
called ``subheadings.''
The Commission proposes limiting the import of trade categories
from Spain to appropriately meet or adjust the unfavorable shipping
conditions created by Spain's actions.\23\ The Commission emphasizes
that this is a proposed list of trade categories that the Commission
may limit, and that the Commission may choose a lesser remedy from
these options. The Commission may choose to broadly limit imports,
impose more targeted limitations, limit only certain of the trade
categories described below, or some combination of these options. The
Commission is soliciting public comment to help it decide the
appropriate remedy to meet or adjust the unfavorable shipping
conditions created by Spain. These unfavorable conditions have grave
consequences for the efficiency and reliability of the international
ocean shipping supply chain, as well as the ability of the Commission
to promote the growth and development of U.S. exports, encourage the
development of a liner fleet of U.S. vessels capable of meeting
national security needs and supporting commerce, and supporting the
U.S. merchant marine. These purposes are frustrated by Spain preventing
U.S. vessels from importing U.S. goods into Spain and exporting Spanish
goods to foreign ports. The unfavorable conditions created by Spain
that deny U.S. vessels access to Spanish ports and Spanish goods
require a significant mix of remedies to meet or adjust them.
Therefore, the Commission has proposed to limit meaningful volumes of
Spanish imports to approximate the damage done to U.S. carriers and the
liner fleet of U.S. vessels capable of meeting national security needs.
---------------------------------------------------------------------------

\23\ Only two trade categories exceeded $1 billion in imports
into the United States from Spain during the years between 2023 and
2025 at the HTS six-digit level. These trade categories are retail
medicines (HTS 30.0490, Medicaments packages not elsewhere specified
or included [Nesoi], Measured Doses, Retail pack Nesoi), and static
converters and transformers (HTS 85.0440, Static Converters; Adp
Power Supplies). Because these goods are related to the health of
U.S. citizens and an ongoing transformer shortage in the United
States, the Commission is not proposing to limit their import into
the United States.
---------------------------------------------------------------------------

1. Perfumery and Cosmetics
The Commission proposes limiting imports of HTS chapter 33,
Perfumery and Cosmetics. Perfumes and Toilet Waters (HTS 33.0300)
imports were valued at nearly $700 million in 2025. At the Chapter
level (2-digit HTS 33) Essential Oils Etc.; Perfumery, Cosmetic Etc.
Preps, represents nearly $940 million in imports to the United States
from Spain in 2025. The Commission proposes limiting imports of all
goods falling under the HTS 33 chapter.
2. Oils and Fats
The Commission proposes limiting imports of HTS chapter 15, Oils
and Fats. United States imports from Spain under this category at the
two-digit level in 2025 were $1.15 billion (Animal, Vegetable or
Microbial Fats and Oils Etc.). At the four-digit level, the United
States imports $836.9 million from Spain under HTS 15.09 (Olive Oil &
Its Fractions, Not Chemically Modified). The Commission proposes
limiting imports of all goods falling under the HTS 15 chapter.
3. Ceramics
The Commission proposes limiting imports of HTS chapter 69,
Ceramics. United States imports from Spain under this category in 2025
at the two-digit level were $634.7 million (Ceramic Products). At the
four-digit level, the United States imports $523.7 million under HTS
69.07 (Ceramic Tiles and Mosaic Cubes) from Spain. The Commission
proposes limiting imports of all goods falling under the HTS 69
chapter.
4. Articles of Stone
The Commission proposes limiting imports of HTS chapter 68,
Articles of Stone. United States imports from Spain under this category
in 2025 totaled $270.6 million (Articles of Stone, Plaster, Cement,
Asbestos, Mica Etc.). At the 4-digit level, the United States imports
$176.9 million under HTS 68.10 (Articles of stone, plaster, cement, and
related products) from Spain. The Commission proposes limiting imports
of all goods falling under the HTS 68 chapter.

[[Page 65520]]

5. Sugar and Confectionaries
The Commission proposes limiting imports of HTS chapter 17, Sugar
and Confectionaries. U.S. imports from Spain under this category in
2025 sum to $138.8 million (sugar and confectionary products). The
majority of this trade takes place under the category specific to a
single 6-digit code, 17.0490 (sugar confection including white
chocolate, no cocoa). The Commission proposes limiting imports of all
goods falling under the HTS 17 chapter.

VI. Public Participation and Request for Comments

The Commission invites public comment on all aspects of this
proposed rule, including the regulatory text and the preliminary
regulatory analyses. The most helpful comments would reference a
specific portion of the proposal, explain the reason for any
recommended change, and include supporting data.
Please note that all comments received are considered part of the
public record and will be made available for public inspection at
<a href="https://www.regulations.gov">https://www.regulations.gov</a>. Such information includes personally
identifiable information (``PII'') (such as your name and address). Any
PII that is submitted is subject to being posted to the publicly
accessible <a href="https://www.regulations.gov">https://www.regulations.gov</a> site without redaction. The
Commission will not accept anonymous comments.
The Commission may withhold from public viewing information
provided in comments that it determines may impact the privacy of an
individual, is offensive, or raises copyright or other legal concerns.
For additional information, please read the Privacy Act notice that is
available via the link in the footer of <a href="https://www.regulations.gov">https://www.regulations.gov</a>.

How do I submit confidential business information?

The Commission may provide confidential treatment for identified
confidential information to the extent allowed by law. If you would
like to request confidential treatment, pursuant to 46 CFR 502.5, you
must submit the following, by email, to <a href="/cdn-cgi/l/email-protection#4b382e28392e3f2a39320b2d2628652c243d">[email&#160;protected]</a>:
<bullet> A transmittal letter that identifies the specific
information in the comments for which protection is sought and
demonstrates that the information is a trade secret or other
confidential research, development, or commercial information.
<bullet> A confidential copy of your comments, consisting of the
complete filing with a cover page marked ``Confidential-Restricted,''
and the confidential material clearly marked on each page.
<bullet> A public version of your comments with the confidential
information excluded. The public version must state ``Public Version--
confidential materials excluded'' on the cover page and on each
affected page and must clearly indicate any information withheld.

VII. Rulemaking Analysis

Administrative Law Matters

Notice and comment procedures are not required because this final
rule falls within the Administrative Procedure Act's (APA) exception
for ``foreign affairs'' functions under 5 U.S.C. 553(a)(1).\24\ The
Commission, however, is voluntarily electing to issue a notice of
proposed rulemaking and solicit public comment.
---------------------------------------------------------------------------

\24\ See e.g., Department of State, Determination: Foreign
Affairs Functions of the United States, 90 FR 12200 (March 12,
2025).
---------------------------------------------------------------------------

Because this rule falls within the APA's foreign affairs function
exemption, it is exempt from Executive Order 14192 \25\ and from
interagency review under Executive Order 12866.\26\
---------------------------------------------------------------------------

\25\ Executive Order 14192, section 5(a).
\26\ Executive Order 12866, section 3(d).
---------------------------------------------------------------------------

Paperwork Reduction Act

This amendment does not contain any collection of information
requirements as defined by the Paperwork Reduction Act of 1995 (44
U.S.C. 3501-3520). See 5 CFR 1320.3(c).

Executive Order 12988 (Civil Justice Reform)

This rule meets the applicable standards in Executive Order 12988
(Civil Justice Reform) to minimize litigation, eliminate ambiguity, and
reduce burden.

National Environmental Policy Act

The Commission has determined that the National Environmental
Policy Act (NEPA) does not apply to this action. NEPA only applies to
``major federal actions.'' The terms ``major'' and ``Federal action''
each have independent force. NEPA applies only when both of these two
criteria are met. The proposed rulemaking, if finalized, would be a
``Federal action'' but not ``major'' and therefore not subject to NEPA.
The Commission anticipates little to no environmental impact if the
proposed changes are adopted. Proposed import restrictions merely
restrict Spanish goods from import, but limited Spanish imports are
expected to mostly be replaced by similar goods from other nations.
Further, the fungibility of cargo containers means that carriers can
easily replace lost Spanish cargo volume with volume of other cargo.
Given this, the Commission has determined that there will be little to
no impact if the proposed rule is adopted, and therefore NEPA does not
apply to this action.

List of Subjects in 46 CFR Part 551

Maritime carriers, Spain.

For the reasons set out above, the Federal Maritime Commission
proposes to amend 46 CFR part 551 as follows:

PART 551--REGULATIONS TO ADJUST OR MEET CONDITIONS UNFAVORABLE TO
SHIPPING IN THE FOREIGN TRADE OF THE UNITED STATES

0
1. The authority citation for part 551 continues to read as follows:

Authority: 46 U.S.C. 301-307; 46 U.S.C. 42101-42109; 46 CFR part
550.

0
2. Add Sec. 551.2 to read as follows:

Sec. 551.2 Remedies to Meet or Adjust Conditions Unfavorable to
Shipping in the Foreign Trade Created by the Government of Spain.

(a) Conditions unfavorable to shipping in the foreign trade. The
Federal Maritime Commission (Commission) after investigation has
identified the following conditions unfavorable to shipping in the
foreign trade of the United States created by the laws or regulations
of the Government of Spain (Spain):
(1) Spain announced a policy of preventing certain vessels from
docking at Spanish ports.
(2) Spain prevented U.S. flag vessels from docking at Spanish ports
on at least three occasions.
(3) Spain expanded and formalized its policy of preventing certain
vessels from docking at Spanish ports.
(b) Definitions--(1) Spanish vessel means a vessel registered under
the Spanish flag, documented or registered under the laws of Spain.
(2) Covered goods means goods falling within the trade categories
listed below that are exported from Spain and intended for import into
the United States.

(i) HTS 33--Perfumery and Cosmetics
(ii) HTS 15--Oils and Fats
(iii) HTS 69--Ceramics
(iv) HTS 68--Articles of Stone
(v) HTS 17--Sugar and Confectionaries

(c) Assessment of fees. A fee of two hundred thousand dollars is
assessed each time a Spanish vessel enters any port of the United
States from any foreign port or place.

[[Page 65521]]

(d) Refusal of clearance by the Secretary of the Department of
Homeland Security. If any Spanish vessel subject to this section fails
to pay any fee within the prescribed period, the Commission may request
the Secretary of the Department of Homeland Security to refuse
clearance required by 46 U.S.C. 60105 to that vessel or any other
Spanish vessel. If any vessel, regardless of country of registration,
transports any covered goods to a United States port and offloads those
covered goods, the Commission may request the Secretary of Homeland
Security to refuse clearance required by 46 U.S.C. 60105 to that vessel
until the covered goods are reloaded onto that vessel.
(e) Denial of entry to or detention at United States ports by the
Secretary of the Department of Homeland Security. If any Spanish vessel
fails to pay any fee required by this section within the prescribed
period or if any vessel transports any covered goods destined for the
United States, the Commission may request that the Secretary of the
Department of Homeland Security:
(1) Deny entry for purpose of oceanborne trade, of any designated
Spanish vessel or any vessel carrying covered goods to any port or
place in the United States or the navigable waters of the United
States; or
(2) Detain any designated Spanish vessel or any vessel carrying
covered goods to any port or place in the United States or the
navigable waters of the United States.
(f) Adjustment in fees and goods to meet retaliatory measures. Upon
a finding by the Commission that U.S. carriers or shippers have been
subjected to discriminatory fees, restrictions, services disruptions,
denial of access to ports, or other retaliatory measures by Spain, or
any agency, organization, or person under the authority or control
thereof, the level of fee set forth in paragraph (c) of this section
shall be increased and additional chapters of HTS goods shall be added
to the definition of covered goods. The increase and additions shall be
based on the economic harm to U.S. carriers or shippers as a result of
such retaliatory actions, provided that the total fee under this
section shall not exceed the limits for Commission fees set by statute
and regulation.

By the Commission.
David Eng,
Secretary.
[FR Doc. 2026-21067 Filed 10-14-26; 8:45 am]
BILLING CODE 6730-02-P

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