(a) The Chief, Office of Operating and Environmental Standards (CG-OES), U.S. Coast Guard selects persons or organizations in accordance with the following criteria:

(1) The person or organization is independent of manufacturers and owners in that:

(i) It has sufficient breadth of interest or activity, so that the loss or award of a specific contract to approve containers would not be a substantial factor in the financial well-being of the organization.

(ii) The employment status of the personnel of the organization is free from influence or control of manufacturers, owners, operators or lessors of containers.

(2) The person or organization has demonstrated the ability to competently carry out the procedures required for approval.

(3) The person or organization has an acceptable degree of financial security.

[45 FR 37213, June 2, 1980, as amended at 47 FR 50496, Nov. 8, 1982; 69 FR 58352, Sept. 30, 2004]