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may be easier to defend if it is challenged in court. An agency action mandated by the regulation or based on a permissible interpretation of the regulation should receive Auer deference. That is something for agency policy makers to keep in mind when writing regulations to govern future agency actions. However, as the Shipbuilders case shows, if the administrative record for an agency action is sufÀcient to persuade a court that the agency action is reasonable and furthers the purpose of the governing statute, the agency action should be able to withstand any Administrative Procedure Act challenge. About the authors: Mr. Robert Bruce retired from Coast Guard active duty following a 30-year career spent mostly in legal billets. In 2004, he began work in a civilian position in the Coast Guard OfÀce of Claims and Litigation, where he served as a litigation attorney for six years. In 2010, he became the chief of the Coast Guard Hearing OfÀce, where he continues to supervise Coast Guard civil penalty hearing ofÀcers and their support staff. 34 Proceedings Winter 2012 | Spring 2013 CDR John Luce is the ofÀce chief of the Coast Guard OfÀce of Claims and Litigation. He received his law degree in 2000 and has spent most of his career since then in legal billets including deputy ofÀce chief in the U.S. Coast Guard OfÀce of Claims and Litigation as well as a detail to the Department of Justice as a trial attorney in the Torts Branch, Aviation and Admiralty Litigation. Endnotes: 1. 578 F.3d 234 (4th Cir. 2009). 2. See Shipbuilders Council of America, Inc. v. U.S. Department of Homeland Security. 3. 46 U.S.C. § 12112; 46 U.S.C. § 50501. 4. 46 C.F.R. § 67.177 5. The practice involved constructing the midbody section of a vessel in a foreign shipyard and attaching a false bow to the midbody to tow it to the U.S. Once at its U.S. destination, the false bow was removed and the midbody was added to the vessel, greatly increasing its cargo capacity in a process known as jumboizing the vessel. See Deng, "Built" or "rebuilt"? That is the question: Risk of losing the coastwise privilege after vessel modiÀcation projects outside the United States, 35 Tulane Maritime Law Journal (TMLJ) 241, 246. 6. 5 U.S.C. § 706. 7. 467 U.S. 837 (1984). 8. 519 U.S. 452 (1997). 9. 323 U.S. 134 (1944). 10. 551 F.Supp.2d at 454. 11. 578 F.3d. 234, 244. 12. 578 F.3d 234, 245. www.uscg.mil/proceedings