(a) When it becomes necessary for a marine inspector to make decisions on matters covered by the regulations in this subchapter or by requirements in referenced specifications, standards or codes, the inspector shall inform the owner or his representative of the requirement, which will be identified by source, section and paragraph number, on which the decisions are based. Whenever it is necessary to make decisions in matters not specifically covered by the regulations in this subchapter or by referenced requirements, the marine inspector shall clearly state the reasons which caused him to arrive at such decisions.

(b) If the owner or his representative disagrees with a decision made by the marine inspector, he shall take up the matter with the local Officer in Charge, Marine Inspection. The owner or his representative may appeal the decision of the Officer in Charge, Marine Inspection, in accordance with §50.20-40.