(a) A foreign component waiver will not delay review and may even be granted post Project approval consistent with the following:

(1) Costs excluded. If an Application proposes using foreign components in the Actual Cost, the cost of the foreign components and services will be excluded from the Actual Cost of the Project, unless MARAD grants a waiver for each such component and service.

(i) MARAD will not grant a waiver for major foreign components in the hull and superstructure for a Vessel Project.

(ii) If an Application does not include foreign components in the Actual Cost, no waiver is required, and the Application will be processed accordingly.

(2) Waiver requests. An Applicant may request a waiver for inclusion of the cost of foreign components and services in the Actual Cost of a Project. The Applicant must submit this request in the format required for the Application. Any waiver request must include a certification for each foreign component or service, stating one or more of the following as a basis:

(i) The item or service is not available in the United States on a timely basis;

(ii) The item or service is not available in the United States on a price-competitive basis; or

(iii) The domestic item or service is not of sufficient quality.

(3) Contingent Approvals. MARAD will process and approve an Application during the pendency of a waiver request pursuant to paragraph (a)(2) of this section.

(i) If the waiver is approved, the cost of the foreign-sourced components will be included in the Actual Cost of the Project.

(ii) If the waiver is not approved, the cost of the foreign-sourced content will not be included in the Actual Cost of the Project, consistent with paragraph (a)(1) of this section.

(4) Costs as owner-furnished equipment. Although excluded from Actual Cost, foreign components of the hull and superstructure can be regarded as owner-furnished equipment that may be used in satisfying an Applicant's minimum equity requirements for a Vessel Project.